prices without a drop-off in demand that stock is surging. it's wednesday, february 9th, 2022 "squawk box" begins right now. ♪ good morning, everybody. welcome to "squawk box" here on cnbc i'm becky quick along with andrew ross sorkin joe is off today he shared with us where he's going, and we're very glad we don't have cameras there good morning, andrew. >> good morning to you nice to see you. >> let's talk about what's going on with the equity futures dow futures are indicated up by about 210 points s&p futures indicated they're up by about 32. nasdaq indicated they're up by about 135. i'm not entirely sure what let's moving markets at this point, but you had anthony fauci

weighing in thinking we're reaching the end of the pandemic too. let's take a look at what's happening with the treasury market yesterday they hit another high in terms of the yield for the ten-year that rolled back another year for how long the records we're looking at this was the highest level we're looking at since all the way back to november of 2019 it had been hitting the 2020 levels now it's back to 2019. it's sitting at 1.931%, again, just within spitting distance of 2% this morning at 1.326% we'll tell you about some of the big stories that are out there peloton, andrew, we watched that go from down pretty significantly on our watch to up. >> yep. >> it ended up more than 25% for its best day ever, that stock trading at $38.89. >> if you had bought that stock, by the way, even three days ago last friday, you'd be up over 50%. >> right. >> it's one of those stocks -- >> pretty significant swings they had a lot of news

yesterday. there's been all this speculation whether the company will be sold, whether it will continue to be run by the new ceo who's just been brought in but in any event, investors seem to like what they've seen. the stock up another four and a third percent. get this you look at meta, formerly known as facebook, had been one of the top five market caps of all u.s. companies until recently they slid again yesterday. they're now the eighth largest behind berkshire hathaway, tesla, and nvidia. nvidia is bigger in terms of market cap than facebook if you're looking for a silver lining, peoplepeople are stating to speculate does this mean the company is no longer going to have as much of a target on its back from regulators i don't know anybody who's looking to put a silver lining on it, that's what they're saying chipotle, we'll talk about this

later. that stock was up by about 8% yesterday. it's up 6.6% this morning after it came in with very strong earnings numbers this is one of those companies not getting hit by the inflation. it's been able to raise prices to make up for the higher cost it's dealing with with input and wages than what we've heard with starbucks. it wasn't the case with what we heard with mcdonald's. wti this morning is still below $90. in fact, it's down to 88.89. that's down half a percentage point. yesterday was a pretty rough day not only for wti but also the huge gains and finally bitcoin is trading at 43,596, down ever so slightly but down after the recent wobbles it's seen. >> i wanted to mention because you mentioned meta and this antitrust regulatory issue the reason that it may not have the target on its back in the same way is because the bills that are in congress that have focused on these companies have

actually had cut-offs in terms of market caps the $600 billion was the cut-off in the congressional bill that was proposed. >> 599 as of yesterday. >> klobuchar's bill was up we were talking with alina kahn a couple of weeks ago and how to think about antitrust. some of these things do sort themselves in terms of the market you think, okay, if we regulate these companies, you can make them smaller or control them or this or that the truth is it's very hard to look at a crystal ball and know what's going to happen next. they may have done it to themselves. >> the threat itself may be enough facebook has been put in a corner they have not been allowed to make any acquisitions. they know that you don't think they would have been interested in activision or

something along those lines? they know they can't go after some of these companies. i will say the dumb arbitrary market cap things they're looking at with some of these bills, okay, so base facebook fell to $599 billion, would the rules not apply to it today? and if the stock goes up today it applies again that shows you how stupid some of these arbitrary levels are. >> no question, no question. let's talk about what's happening with the governor of new york she's about to announce an end of indoor mask mandates. it will end the requirement for companies to ask for proof of vaccination or wearing masks other states are making similar moves. it's not clear if the governor will drop a separate mask mandate forecast new york schools set to expire in two weeks. meantime dr. anthony fauci making headlines becky mentioned it earlier

in an interview with the "financial times," he said the u.s. is heading out of the full blown pandemic phase of covid-19 he said the virus would soon become, quote, more manageable that's due to a combination of vaccinations and treatments. he hoped there would be an end to all restrictions including mandatory wearing of masks he said those decisions would increasingly be made on a local level than centrally decided we've seen that in some states as the governor of new york just dropped those without guidance from the federal government. we're going to talk a lot more about this at 6:30 with dr. kavita patel who has thoughts on what's happening in the immediate term and perhaps over the next month or two. becks? >> this is great news. it's what we've all been waiting for. there's a part of me that worries, you know, the rest of the world has not gotten the same level of vaccination,

although, maybe they've gottet a lot of natural immunity by getting this you hope you don't seea new strain that develops somewhere else and gets brought into this country. let's hope we're on an upward cycle and it continues it feels really good if you think about it. >> fingers crossed there's a new development that we're watching. senate democrats are getting serious about banning lawmakers from trading stocks. elon moye joins us with more on this what's getting them to take this more seriously at this point >> becky,ite growing on both sides of the aisle today gop senator steve daines and democratic senator elizabeth warren are set to unveil a new b bill it would ban owning any individual stocks or commodities including through a blind trust. now, this is the first

bipartisan bill in the senate. a previous bill from senator sherrod brown would allow lawmakers to keep holding onto their shares without trading them that has support from the house but not republicans in the senate meanwhile senator john ossoff has called for senators to put their shares in a blind trust. yesterday senate majority leader chuck schumer told reporters that democrats are try domg up with a unified approach. >> we have different bills from a variety of different members, and i've asked our members to get together and come up with one bill, but i would like to try to see it done. >> several gop senators are working on their own bill. mcconnell said this is an idea worth considering. back over to you. >> so ylan, when they start talking about a united front, that gets down to details. we had a guest on who says he's

fine with not trading but he'll let his wife do it that goes for nancy pelosi she'll not trade but let her husband do it. what about shared assets at least a blooinld trust, you say we're going to put everything into it that makes more sense than the idea of i won't trade, but my spouse will. >> yeah. so there's a couple of different dials to turn here one of them is what exactly do those rules look like and who do they cover do they just cover the lawmakers? the lawmakers as spouses when you have an issue of joint accounts does it also cover dependent children because the current existing disclosures do cover dependent kids, so does that continue in any type of beefed up or ramped up legislative rules. the other thing is what is the penalty for non-compliance one of the reasons they're criticizing the existing rules

is it's only a couple of bucks if you get charged for not following them one is about forfeiting any profit from the investments you've made if you don't follow the new rules. a million dollars penalty, your entire salary. and senator ben sasse is talking about potential jail time for any lawmakers who don't comply with the laws. so there's a lot of discussions both about what the rules look like and what the penalties should be. >> i will go out on a limb and say i bet there's no chance they pass something that says anybody does jail time for this. every time we bring this up with any sitting official, their answer is, well, there's disclosure, it's fine, it's disclosed. but it's not disclosed fully or in a timely manner, and it's hard to come up with that stuff. if they want to stick with disclosure, they should have it available in an easy-to-read public form so we can look at it quickly. is this getting more steam at this point because -- i mean i know several candidates who are

running against sitting congressional leaders -- not leaders, but congressional members who are using this as a campaign issue is that why they're suddenly taking this more seriously >> well, i think the momentum really started around the beginning of the pandemic when you saw several lawmakers even come under scrutiny from federal regulators for potentially trading off of the decisions they were making around the massive amounts of stimulus they were putting into the economy. so that was really the impetus for this sort of latest round of bills, but this has certainly gained momentum as i think there's a lot of deep distrust in government right now and this perhaps could be one way to rebuild that relationship with their constituents. >> ylan, thank you great to see you >> thank you. by the way, we're going to be hearing from senator steve daines about the new bill. that's coming up at 8:30 a.m. eastern time. >> a lot more coming up on "squawk" this morning. two big movers we're going to tell you what

chipotle and lyft said after the impact of the covid surge. that's next. you're watin"sawbo ochg quk x"n cnbc

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welcome back to "squawk box. lyft shares up but look at this it fell short of expectations from the prior quarter and remains below prepandemic level.

its first quarter numbers came in well below because of the covid surge. the company's ceo saying on the call that supply of drivers recovered during the quarter and improved ride etas by 30% and that's the good news we're going to talk to co-founder john zimmer first on cnbc that's coming up at 8:45 eastern time this morning. >> there's so many interesting pieces in this because it's clearly a company who was so -- that was so affected by the pandemic because riders and drivers both had this mentality of what happens on any of these things it's still got to be a moving target in terms of how many drivers they'll venltsually have for this, whether riders are eventually more willing to share a ride or take it shorter distances. they'll take it to the airport, but will they take it 30 blocks down to jump in to go to a restaurant or something.

>> the problem is -- and, look, you know, i'm a city boy, so i take a lot of -- i take a lot of oobers, lyfts. the truth is the prices -- they've come down a little bit, but they're still pretty high. the truth is -- i used to talk about arbitraging the taxis and the ubers. >> it's good news for the drivers who do show up but you're going to have drivers not making money much. it's a weird, weird mentality to try to play through. we'll talk about that a little more later this morning. >> also chipotle shares are up high this morning. the shares beat the estimate of $5.25. the company paid more for beef, avocados, and freight during the quarter. also its workers earned high irwages. the good news is menu prices,

the hikes there offset inflation without hurting customer demand. here's the ceo brian niccol yesterday on cl""closing bell." >> we would have a little more than a 6% price increase, and we know if we need to take more pricing increases, we have the room to do it. we heard no resistance from our customers. i think i heard someone mention our brand and the customers really do believe we're a tremendous value. >> a little bit of victory lap there. maybe comparing ilgts to some of the brands that have suffered recently, including mcdonald's and starbucks, which weren't able to get the same sort of pricing power. for the current quarter, chipotle expects its sales growth to grow because of the omicron variant, but the stock is up by 6%. stocks rallied tuesday the reschry note yielding 1.96,

something we've not seen since november of 2019 joining us is greg branch. managing partner and cnbc contributor along with kevin nicholson. it's been kind of a whipsaw situation going on here. greg, what you do about it >> so i'm a little bit cautious in the near term of course, we have these spectacular earnings results coming out, which is going to list things. but we will start to scrutinize and focus back in. all of this that caused the volatility a few weeks ago, mainly liquidities taken out of the system we know the fed's tapering we know they want to reduce their balance sheet, but the yield curve is also flattening as that happens, banks will be

disincentivized too low. we want to start to focus in on the companies that are more insulated from those factors attached to secular tail winds and can grow regardless of the challenge. >> hey, greg i'm going to get to kevin in a second dividend stocks back in fashion amid turbulence. companies have been hot during the stockmarket's winter swoon do you think that lasts? >> i think it depends. if the dividend company can sustain growth in a challenging macro environment, then, yes companies can return cash to shareholders like most returning. we've shown we have the pricing power, sustainable demand to last you through any environment. it really depends on the company, but i think it is a signal of strength. >> kevin, do you want to take both of those issues on?

>> well, i mean, i think that, you know, as far as, you know, dividend companies are concerned, i think people are looking for income, and that's why you've seen people gravitate to the dividend companies in this swoon i think, you know, you're going to continue to see rates climb and so, you know, this is going to be something that is going to be on the forefront for the foreseeable future i think that, you know, yields are going to continue to rise. you know, we're going to get close to our 2% target real quick here on the ten-year, and so i believe you're going to continue to have folks searching for income in other places >> you're talking about income i'm wondering whether there's money to be made here, whether prices on some of the growth stocks are now -- are we at a point where they're too low? does anybody look at a facebook

now and say, you know what actually, this thing is actually on sale. is it, greg. >> well, you know, there have been some growth stocks out there that have fallen, and, you know, we continue to look at the mega caps because we believe that they have the ability to grow their earnings over time. they may have swooned here, but we look at this as an opportunity. we have been actually going in and buying some of the larger tech names in software and services because we think that this is an opportunity and we look -- we like those pullbacks in the market to be able to put them in our portfolios. >> final word to greg. >> yeah. i agree largely with kevin when you look at the context, a lot of the large tech growth gains have lost their multiple expansion they experienced during the pandemic. microsoft and google traded 30

times like we saw in 2020. i think this will be an opportunity when it turns, it will sink all boats. i don't know if we're right there right now, andrew, but i'm keeping an eye out around will opportunistically do so as well. >> if you're a market timer, you have to wait, i think, is what he's saying. >> nonetheless, greg and kevin, great to see you both. thank you. >> thank you. when we come back, we're going to take a closer look at two more of this morning's big movers xpheng and enphase. and coming up the ceo of glaxosmithkline will june us on a cnbc first interview "squawk box" will be right back. >> announcer: this cnbc program

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car panger xpeng are jumping after the company's hong kong shares were added to a trading link it's known as the xpeng hong kong connect they like it right now shares are up 5.8% they closed 8% higher in hong kong trading overnight andrew. >> meantime take a look at enphase energy they posted earnings that beat estimates of 58 cents. enphase makes micro inverters

and backup solar sources stock up close to 20%. becky, i saw you do a little bit of this. was that -- >> whatever the heck that was. you're saying what they did. they make stuff for solar systems. >> right. >> i don't understand any of the rest of the stuff you said. >> i'm a city boy, so i don't have solar on my roof. >> it pays off in some places, not in others. we've got too many trees around us. >> got it. coming up, a high-profill matter this is a fantastic story. this woman calls herself the crocodile of wall street i don't know if you saw the video. she was apprehended with her husband yesterday, accusing of laundering stolen crypto eamon javers will be with us, i hope with the video. back in a moment. >> announcer: executive edge is

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welcome back to "squawk box. dow futures indicated up by 180 points s&p futures up by 30 and the nasdaq up 131. this comes after gains yesterday, 1% for the dow, 0.8% for the s&p and 1.25% for the nasdaq, andrew. >> okay, becky a very high-profile crypto case. the justice department arresting two suspects allegedly for trying to launder proceeds the one and only eamon javers brings us -- we should have a graphic of the story of the day. this is it if you have the rap song and if you do a little rap yourself, eamon. >> i will not be rapping, andrew, but we do have some video of this rap effort that was posted online yesterday. look, she called herself the crocodile of wall street officials said 31-year-old heather morgan and her

34-year-old husband ilya lichtenstein were arrested without incident yesterday on money laundering and conspiracy charges. online morgan identified herself as a serious artist. she posted herself rapping on wall street and calling herself a real risk taker and badass money maker. she contributed to forbes.com in 2020 they took stolen bitcoin the couple allegedly used the money laundering the bitcoin to buy gold, nfts and others. it's a whopping $3.6 billion. >> this is the largest seizure of cryptocurrency ever by u.s. law enforcement. it's also the department's

largest single financial seizure in its history. >> but the government stopped short of alleging that the pair actually hacked the virtual currency exchange in the first place back in 2016 there's a possibility there's more to this story now in court late yesterday, a defense attorney called the charges thin and overblown and suggested that billions of dollars had not been laundered in this kasem prosecutors argue the couple should be denied bail as flight risks who might be able to access enormous wealth but meanwhile magistrate judge allowed lichtenstein to be released on bond morgan's bond set at $3 million. the government is trying to stop them from being able to get out because they say they're a flight risk. investigators have now recovered 94,000 bitcoins controlled by the couple there's going to be a court process for anyone who believes their funds were stolen to apply to the government and try to get them back. guys, back over to you.

>> so, eamon, i love this story on so many levels, but there's a larger story here, which is the irv i'm going to raise because we have a lot of viewers who are invested in crypto, specifically bitcoin. people often talk about the safetory lack of safety of bitcoin, and people have made the argument in this case that this is an example that crypto is easier to track than currency or cash if you will. what do you think of that? >> it's easier to track than small amounts of cash, which are by definition anonymous and which criminals have been laundering for years crypto is a public ledger. the blockchain is public it's out there everybody knows which wallets hold which cryptocurrency. the trick is matching up the real world owners of those wallets with real world people, and if you can do that as law enforcement, then you can track this in this case, u.s. law enforcement is sending a message here and they said this very

deliberately yesterday we can track crypto fraud just as well as we can track fraud in the real world as well the trick is a lot of times this involves many, many overseas jurisdictions, not all of which are cooperate rahtive with u.s. law enforcement. this couple managed to be living in manhattan and they were arrested at their residence yesterday. so they were easy to reach by u.s. law enforcement perhaps they thought that they had done so much sophisticated movement of these funds that they weren't able to be traced, but the government proving they can do that. >> eamon javers, thank you for those viewers who have a second stream -- we're going to commercial break -- watch the video. it may hurt your head and eyesight, but it's worth a laugh. >> i got a good glimpse of it there. i love the defense attorney's response they didn't launder billions of dollars in crypto -- yet yeah when we come back, several states are moving to end mask mandates, and new overnight, dr.

anthony fauci saying the full-blown pandemic phase of covid is nearly over in the united states. we'll get the latest from dr. kavita patel right after this. remember you can watch or listen to usive lany time on the cnbc app we're hoping things will pick up by q3. yeah...uhhh... [children laughing] doug? [ding] never settle with power e*trade. it has easy-to-use tools and some of the lowest prices. get e*trade and start trading today.

from cvs health. they beat estimates by $1.98 a share. and the boost got a strong demand for covid tests and vaccinations as well as upbeat results of the company's health insurance unit the forecast falls largely below consensus. they say they're confirming their 2022 adjustment guidance range.

the street had it up higher and the stock is off by 2.6%. new york's governor is set to end the indoor stringent mask mandates this follows other states. joining us right now to talk more about it is dr. kavita patel. she's a former white house policy director and nbc and cnbc medical contributor. there are a lot of people trying to figure out what this means. is this being done because omicron is really receding and we should feel better about how things stand from here on out. >> yeah, becky, there's no doubt you can't dispute the facts not only is omicron receding, but the states you just cited, the positivity rates are in the single digits, and that's in the good news. what's hard to reconcile is if you sit back -- if you were to drop to this moment in time, we had 15,000 deaths last week with an airborne virus that's still

infectious and we're still seeing a large number of unvaccinated people still in the hospital that's the tension we're trying to balance add to that the therapeutics you and i have spoken about earlier, more and more available, but still not very easy to get to and still very hard to navigate in the early days of infections. >> so is this coming too soon as far as you're concerned. >> so i don't think the conversation about when to lift them because, for example, new jersey didn't take effect. they cite a date in the future i think it's responsible for every government official to talk about when these restrictions need to come off. what's happening is chaos and confusion where you've got it let it all off immediately kind of attitude. i think that is a mistake, especially when every single state is still showing -- you look at the cdc map, becky, every state is still showing red. now, that is separate from what i think is very valid where we're seeing people who -- they're not wearing the masks

properly social decline, especially in older kids, and you hear this more in adolescents than older children they have vaccines available to them that's the balance you have to think about your local community and level of vague nation, case rates, and, frankly, what you're trading risks and benefits for. >> that inform something's not easily available just in terms of trying to see the case count in your local community to see what's going on. there were easy ways to see it being tracked early on in the pandemic, but not with home testing. what would you tell your patients to do if the mask mandates come down, still wear it? there's going to be the point when you're the weird kid wearing the mask how do you determine it? socially this is not what i want my kids to be doing. >> yeah. there's no doubt about it. if you told me there's ooh a

future where we're wearing masks in perpetuity, i would call that ridiculous the science doesn't support that to your point -- and by the way, i think it's irresponsible, i going to try to reflect what working pediatricians and child psychologists, number one, you do need to get an accurate assessment of your community if your schools or community does not have a dashboard, look at other things. we have a number of ways, even though the data collection as you point out in some places does not exist we have a way to look at vaccinate rates. i would add that data. for my own family, my kids are still wearing masks, but that's because i still have unvaccinated children and people around them who are unvaccinated number two, you have to weigh your family's risks or dealing with what might happen if i tell you there's maybe a 5% to 10% chance of longer-term

symptoms -- i won't even label it covid because we don't know what that looks like in pediatrics if they tell you, mom, this mask is something that's not really helping me to plark then you take that into consideration but, becky, i think my point, today not that day the planning for that needs to happen, and i've been asking schools. we've got the 2-year-old -- 6-month-old, sorry vaccine hitting shelves on march 1st we're not talking months we're talking weeks and that buys time. >> in new jersey they set march 8th as the date. you could be fully vaccinate order be two weeks out from your first shot before that's going to happen in any of those school environments, but i guess what's a little weird about it is it's not tied to any community

numbers or any spread that's there, so if there's another variant that comes back -- and i ooher got to tell you, what's going to happen is the pressure on the local communities is going to weigh very heavily for them to take it down i don't see too many school superintendents who will say number it was the cover interest the state who had a lot of them doing it to bring masks back during delta. >> yeah, i agree you're bringing up the point i brought up with schools. just like you're thinking about taking things down and it's nice to have dates. it might be spring break we like having that psychology of here's a time, a date certain. it's why people don't file tacks until april 14th, right? i understand that need, but what you're bringing up is what i've been touching on with schools. let's talk about what we need to see in the community if we need to bring back measures, and what do we bring back first i've said, look, masks are an easy thing to take off and they're a harder thing to bring

back so we need to be clear about when we're asking people to do that and that also goes hand in hand with your point about data collection so i know a lot of employers are saying, let's stop doing surveillance testing i'm not so sure that's the right thing to do when we're making so much progress. wait till we have a coy issent period for weeks and make a message about being clear so we're not caught off guard remember may of 2021, cdc said if you're vaccinated, masks off. how hard -- i don't think our country ever recovered from understanding when we needed to put that back in i think we always felt like we were duped from that point forward. >> yeah. i think that's a big part of the problem. maybe because, again, it wasn't set up about community spread or any of these numbers there should be a scientific reason for putting these masks on there should be a design tsk reason for taking them off otherwise it just feels like

everything we've done was stupid the whole way along. >> yeah. >> all right dr. patel. thank you. we'll talk to you soon. okay coming up on the other side of this break facebook's market kap dropping yesterday from scrutiny. n aitstilousentru bls isow the time to buy stock we're going to talk about what it all means after the break 24/7 support when you need it the most. plus, zero-dollar commissions for online listed u.s. stocks. [ding] get e*trade and start trading today.

point this quarter)%qjq! you've liked that stock for aqa■ long time. stephanie, so what do you think? >> i think it's overdone, i think there's piling on

happeninglp and i also thinkç■ there's a lott(■o■gz emotion ar the stock and position and i think you have to step back andf■ say the stock is now trading at 16 timesxd■estimates7 times for a companyñi■going to e total returns inr uz■, there's no question the fourthj■ quarter was disappointing ■■still put up 20%q■ñ■w■x■ revenue growth, 21% total advertising revenue growth their daus and maus grew yearñr■ over year, and they are ati■q■x■ billiont(■for daus and 3 billion for maus that being said i understand lower guidance is not a goodcon

they're not new users joining the crowd, there's a problem and then the question isq■q■ iì% just a bet on the q■metaverse, which you might as wellok be a venture capitalist at thatw■ point. >> i think the company does remain important to userse1 and advertisers. what i'm fokh■q" on is really theirxd■1 ability to innovate a transition it toñ■ a place where usersçó■are going to value thin differently. for example, the video experience is becomingx■ more a moreq■ important augmented and you touched on the metaverse isx■:uájj■ to become a bigger factor i think more towards the middle and latter part of the decade because the technology itself is still in the very early stages. for facebook they (?■ madeko?h c transitions before i think what's a little bit more

difficult this time you have competitors such asq(■4dx■ tiktc sc■ user experience. specifically, andrew, it's around=b■d■younger cohort, the teens, the 20s, and those arexd■ the instances often leaders in terms ofk■■■where these marketsñ going toc■ go. so facebookc'■t■ has a lot of wt do over the next few years 5ñ broken, though, andccertainly it'll gett(■7■w■ easier in 2023 it'll take some time >> stephanie, i don't know ifxd■ you heard the conversation becky and i were having at the top of the hour about this issue with washington, the regulatoryç■ pressure on l■facebook, thexd■ft so manyw3■of theseo■ bills thos congress and the one senator klobuchar proposed effectively have these arbitrary cutç■ offs: terms of market cap, and it seems at least in the would no longer be under their quote-unquote jurisdiction in terms of what they're going to do do you think the bills ■ç■hange,

or do you think this has any impact on the future of facebook >> i think it's a bunch of noise, andrew. i really do. and ie1 also thinkf■ thef■t■ re tiktok sixr conference call is because of this very issue. he was trying to say, hey, ■■ competition out there,l■ and they're actually getting hurt by the competition right now. i don't think that's going to be the case goingq■e■ forward êq■ f noise, but ic■ also thinkd6&m■■s why the stock is trading where and i liked it when it traded ì% 20 times, growing 20%. that's reallyi] good to me risk reward they are getting hite■c■ by competition. times. and i like it at 20 times andçó don't think the long-term story changes that'sñ■ where you seey■

opportunity. there's been a lot of acquisitions made to make the metaverse for them work. if you can't keep buying other companies, how much does that hinder your ability to quote-unquote innovate >> i think instagram in particular, andrew, they were able to take it, and it was a strong platform, but it was very small. so facebook was able to successfully scale it, so i think that's important with a lot of these companies and certainly facebook they're not going to be able to develop everything internally. the question is can you attract men and women around the world

to develop, build, grow your ecosystem. it's going to come down to whether the teams there are able to pull together and redefine what the user experience is about. i don't think acquisitions are necessary. >> okay. stephanie, daniel, thank you both great to see you appreciate it. >> thank you >> thank you still to come this morning, quarterly results from pharma giant glasgow smith coastline due in a few minutes the ceo will join us first on cnbc and later we've got blackbox crar reider, transportation seety pete buttigieg and lyft john zimmer don't go anywhere. you are watching "squawk box" right here on cnbc got a big show for you

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futures are pointing to a strong open this morning as wall street's february outlook brightens. we'll get an outlook for the markets and talk about the fed's plan with blackbox rick reider plus a top senator backing the idea of banning congress from trading stocks we'll have a live report from washington and the reddit rebellion and the pandemic fueling growth on robinhood's platform now the comany's chief

brokerage officer is looking to scaleup the trading business joining us in the first television interview since taking that job. the second hour of "squawk box" begins right now good morning and welcome back to "squawk box" right here on cnbc. joe is off today take a look at u.s. equity futures at this hour let's show you where things stand right now. the dow up about 202 points, the nasdaq looking higher as well. looking about 178 points higher and s&p looking to open about 35 points higher right now. i want to get straight over to dom chu who's been looking at this morning's premarket movers. >> there's earning stuff, corporate headlines. you've got shares of cvs health

lowering off the premarket lows, roughly 15,000 shares of volume so far the chain reported profits and revenues both were ahead of estimates■ç■helped along by increased store sales and more volume for things like covid vaccines and covid testing its full year earnings forecast did fall shy of some expectations maybe leading to some of that weakness down 3.1%. then lyft lower by roughly 20,000 shares of volume after the ride hailing company did post better than expected profit revenues but there was disappointment in the number of active riders it had which fell quarter over quarter, but the revenues generated per rider was better than expected, so a bit of a mixed story for lyft. then you've got chipotle mexican grill in focus today it's a very big stock in terms of dollar amount but still up

about 6.5% the chain reported beats on profits and revenues consumer demand was apparently not affected by the price hike imposed to help offset input cost inflation chipotle you can see over the last year only up about 1.5% and then meta platforms, that stock continues to trend lower it's up about 1.25%. at the highs in terms of market cap meta platforms was worth roughly $1.08 trillion it is now worth less than $600 million. so that massive $400 plus billion drop, again, is like losing an entire visa from the market cap of meta slash facebook to the highs. there's a lot of conversation whether there's a buyable dip in

those meta shares. >> i don't know. i can't figure out if meta is cheap or not it's a real vexing question. >> i think it's vexing a lot of folks on wall street right now >> thanks, andrew. the markets are bracing for another worrisome 7% plus inflation number tomorrow. most forecasters, though, are expecting inflation to cool later this year. senior economics reporter steve liesman looks at the chances inflation could cool and the risks that it doesn't. uh-oh, steve good morning >> yeah, becky, bringing down high inflation is going to be about as complicated as one of those combination quadaxle triple toes the olympic skaters have been doing. that is it could happen, but it has to be perfectly executed and there's a chance it could flop take a look. here's the scorecard of what several say has to happen. first, the virus has to end bringing back workers and easing

wage pressures then you've fagot to do supply bottlenecks. they need to clear, restocking shelves of inventory ad fiscal revenues have to runoff and those savings have to wind down as well. the biggest part, the hardes thing to execute goods purchases have to return to normal levels. take a look at this chart. amid the pandemic purchases rocketed to nearly 41% of gdp as consumers shifted away from services good inflation rose by an equivalent 5 percentage points right along with it. joseph tells me the good share of gdp is going to collapse as consumer spending normalizes and good inflation with it they were highly uncertain about their forecasts and noted risks ahead. these are folks, by the way, who did not see it coming mostly anyway oil prices remain high, continue high wages pushing up prices and

consumer inflation expectations continue to rise that could also boost inflation. so the risk is that the fed likely next year will have to work harder to bring down inflation possibly slowing the economy deliberately but for now when you look at market pricing the street is optimistic the fed and economy is going to stick the landing. we'll get a first-hand view when we sit down exclusively with the atlanta fed president. becky? >> okay, a lot of questions coming out of that report. what's the separation between goods and services and the idea that inflation was running high in goods i know there was a situation where people weren't doing services as much you weren't going out to eat you weren't going to the spa you weren't getting your hair done and different things and so you were spending money on goods. i realize that drove up inflation there, but i will tell you there's a lot of services. you can't find people to help you with things, you can't get a

contractor to come in. you can't get therapists, physical therapy there's all kind of other areas where i see real pressure on the services side of things, too, and largely because they can't get people to do the job >> so, becky, that's a really interesting question, and you really put the pieces together there. if they could call up that wall we used earlier, those things are not separate, becky. they're related, right so you end the virus, you bring back people, right and that will allow for some of the service inflation to roll-off as well >> but do we really think people aren't working now because of the virus? how many people are not working because of the virus how many people have retired and are planning ongoing back? >> well, those are two separate questions, if you will we had a lot of people absent from the workforce because of sickness in the data for january. the idea is hopefully they come back you still have issues with some schools out.

so there's definitely some people not back in the workforce as a result. you do have people who are retired. look, becky, part of this is a hope and prayer, right, that we're not at some sort of steady state of lower labor force, that people do come back in the workforce. i'm not saying it's going to happen i'm just saying that's the way that all of this happens is just kind of amazing dance that has to happen to get inflation down. and there's people who are legitimately concerned that it doesn't. >> yeah, i would just go back to the point i understand there were a lot of people out in december and january with some of the things happening with omicron, but the waiting list i'm talking about go back months and i i had conversations yesterday trying to get services and the waiting list is -- one guy wasn't even going to put me on a waiting list, the waiting list is so long. i mean, that a not a function of omicron. that is a function of there's a lot of people in demand for services and have money to spend on those things and there's not enough labor to go around. >> i think that's the case

and we're going to have to get used to probably a lower labor force. i think when you think about the pivot of fed chair powell back in november, there are a couple of things that happened. there were two reports in particular first that november jobs report came out, you remember, and it did not show people coming back to the workforce, that was one and second the inflation report came out that showed faster and widespread inflation in january they did revision to the data as well it looked like some people did come back, so there was some hope i believe the number was something like 1.3 million people did come back to the workforce. so the whole dance, becky, is based on this idea that people do come back to the workforce. that should alleviate some of those waiting lists and pricing pressure in the service industry while there's this shift away from good spending into services >> thank you and we're looking forward to that conversation this morning

meantime reporting results we're going to hear from the company ceo right after the break and check out shares of energy surging this morning, the company posting earnings of $7.03 per share and record revenues for the quarter also beating estimates. sales jumped 17% from the prior quarter despite the supply constraints and logistics challenges take a look at the futures because we are in the green this morning. looks like the dow will enop up about 215 points right now, higher s&p 500 looking to open about 38 points we're right back with a lot more coming up on "squawk." [children laughing] doug? [ding] never settle with power e*trade. it has easy-to-use tools and some of the lowest prices. get e*trade and start trading today. at fidelity, your dedicated advisor will work with you

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the drug giant out with quarterly results. meg terrell is here and she's got a special guest. good morning, meg. >> good morning, becky that special guest is the ceo. thanks for being with us this morning. i know you talked about this year being a landmark year for gsk, and we know part of that involves separating out your massive consumer health care business with big brands like advil and chapstick. how tell us about your recent decision to reject three bids for that consumer health care unit for unilever, up to 15

billion pounds are you expecting to get a potential higher bid or expecting to go with the spin-off >> thanks for having me, and obviously delighted to be reporting such strong performance for 2021, and good momentum into 2022 which is as you said going to be a landmark year both because it's going to be about a step change in performance for gsk the biopharma business with new reported growth. we're very happy to give our guidance for that today, but also because it is the year and a matter of months where we plan to demerge our consumer business and create this new company. obviously, we have said when i announced the pfizer deal which was followed on for a series of strategic moves for many years to create this consumer business, and we announce the intent to separate we had our priority for that was always shareholder value

creation and that's exactly the lens, along with the opportunity to strengthen the gsk biopharma balance sheet. that's exactly the lens that the board looked at these unsolicited offers through and with that due responsibility taken, there was a unanimous rejection alongside our joint venture partners, i shouldsay because it fundamentally undervalued the intrinsic value of consumer and exciting its prospects for future growth. we've had very broad-based some of it public support for our shareholders for this position, and it's staying absolutely focused on the successful execution of demerger, looking forward to capital markets on the 28th of this month when we'll share in a lot more detail why we're so confident in the growth of this consumer business, 4% to 6 percentage growth outlook but also sustainable margin and it's an incredible business, pure play

on the sector, amazing brands. i hope many of them are in your bathrooms and desk drawers and great prospects and excited to bring more visibility to it. >> let's talk about what remains, of course, in your pharmaceuticals business, and there's been a lot of focus lately and in the quarter on your covid antibody drug which you partnered on, and it's the last antibody drug standing that works against omicron, and it's in short supply even though you are making more and you just signed a new supply deal in the u.s. is there a way of ramping that up >> we have been mobilizing enormously around the supply as you know delighted to have partnered on this. this was an antibody that was designed particularly with a mutating virus in mind and has shown very strong efficacy in preventing hospitalization and

death. there's still a lot of people who demand and require treatment, really pleased to be able to deliver $1.4 billion in pounds of take home contributions to covid solutions last year, expecting to do the same again this year we've mobilized supply for up to 2 million units to be supplied in the first half of this year and we'll continue to update as that progresses. of course, we're also watching to see how the virs progresses the contribution that's going to come from oral treatments across the industry and potentially how these things may combine together so all of our covid solutions are excluded from our guidance outlook. they come on top of that both on our 5-year horizon and for this year but delighted to be helping patients now and working hard to keep the supply coming >> and sticking with ovid, you of course are partnered on a covid vaccine with sanofy.

it's come along more slowly than the other vaccines but recently they reported some booster data suggesting if everything pans out this could compete in the booster market and some of the biggest vaccine makers in the world. this is a more traditional technology what is your expectation how that will compete? >> we're all looking forward without being able to guarantee how this market will continue to evolve but i would say there's a continued expectations to be a sustained endemic booster market of some sort we were pleased to see the sanofi data at the end of last year and we stand ready to support supply depending on the final data that coes through snd antigen. and we're looking at our partnership with perhaps mono

vaccines perhaps in covid, perhaps in flu and as indeed as the market looks at the opportunity for this technology to create in the medium and long-term combination vaccines so we dempt see the vaccine space as part of our contribution to growth we're also very excited about the rsv vaccine coming through both for adults and the maternal vaccines later this year, and very speaking very confident we've given an outlook for vaccines this year that will be in low teens growth and that's excluding any contribution and we do expect vaccines to be a key contributor to gsk for many years to come and this step to growth outlook we've given for the company. >> as you look to what will remain of gsk, how do you look at potentially building that out? is mma something on the table for you? >> we've always saidour priority as a company is to invest innovation.

that's our number one priority for allocation we're delighted with the progress we've made. over the last four years we now have 64 assets in the pipeline, 22 pivotal stage seven of those have key milestone read outs now. we've also had i think 20 deals of different shapes and sizes even in the last year, and we'll continue to do that. indeed, it's one of the reasons for the demerger is to continue to strengthen gsk's balance sheet, this new gsk, the biopharma business, and that will continue to support capacity but i think we would describe it absolutely in linewith the rnd strategy we've laid out, and we're very confident with the portfolio we have today in our more than 5% top line growth, more than 10% operating profit growth but we obviously will continue to source innovation wherever in the world it looks most appealing with the highest prospects. >> all right, ema, thanks so

much for being with us >> great see you. coming up we're going to talk markets and a quick stock to watch, the container store shares, down 27%, this even as third quarter earnings and revenue beat forecast. the problem, online sales were down more than 30% and the retail expecting overall sales to drop 11% this quarter maybe folks aren't trying to redo their hom teshe way they were before. "squawk box" returning right after this 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. ♪ ♪

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still to come this morning, black box rick reider will join us to talk about rising rates as use' b-year sits just below 2% pl wlle hearing from the transportation secretary pete buttigieg coming up in the next hour "squawk box" will be right back.

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one week from today charlie monger is set to hold court at the daily shareholder meeting. he's going to be answering shareholder questions virtually starting at 1:00 p.m. eastern time february 16th we would love to hear your questions. you can go ahead and submit your questions today by sending an e-mail to daily journal questions at cnbc.com. it's the first time we'll be hearing from him since we got the news he had doubled down on

alibaba, doubling his stake for the daily journal. we'll have a lot of things to talk about >> it'll be fascinating. >> charlie, always someone who never holds back we look forward to that. >> meantime, senate democrats getting serious about banning lawmakers from trading stocks with majority leader chuck schumer throwing his support good morning >> well, andrew, both chambers are now dave diving into this issue because house speaker nancy pelosi is reportedly getting behind the move to ban lawmakers from trading stocks while in office as well. this comes from punch bowl news and amount to an about face from the speaker who had defended member training as part of a free market economy. i can tell you pelosi has asked a house administration committee to take a look at ways to beef up the existing rules as pressure for a prohibition builds on capitol hill today gop senator steve deign and democratic senator elizabeth

warn has a bill that would ban lawmakers not from trading stocks but also owning them in a blind trust. this is the first bipartisan bill in the senate and takes a harder line that the other proposals that have been in the works. yesterday as you mentioned senate majority leader chuck schumer said he believes in a ban and i'm told he's tasked more than half a dozen democrats to have a unified approach to this problem but pelosi's support here is going to be crucial, guys. and the shift in her position is a reflection of how vocal her members have been. she is scheduled to hold a press conference later this morning. of course we'll be watching. back over to you >> of course, we'll see what happens. we should say senator steve daines is going to be joining us in the 8:00 a.m. hour. so many questions for him about this bill and what it means. becky? >> thanks, andrew.

tesla's y model is taking over the state. >> this is important because california is the largest auto market in the u.s. and this shows just how quickly the tesla model "y" hasgained ground on its competitors in a highly competitive state. take a look at the final sales figures, and this comes from the california new car dealers association. they put this out every quarter. these are the year end numbers, best selling vehicles in california, look at the model "y," just barely behind the toyota camry people out there aremore prone to buying electric vehicles. it has been less than 2 years, less than 2 years since tesla began delivering model "y"s in the state of california. now in less than two years, it become the second vehicle and tesla, by the way, is now th fifth most popular auto brand in california no doubt, california where they had the free modfactory has been

key to tesla's sale growth over the last several years if you look at their sales for last year that 936,000 12.6% o it were deliveries to state of california and what that market represents that has actually come down, and yet they continue to gain ground on their comepetteres keep in mind teslas bought in california or anywhere else in the united states, they no longer qualify for a federal ev tax credit so you can't sit there and say, well, yeah, people are getting the tax credit there's a state tax credit and may be local municipalities that have tax credit for ev purchases, but the federal tax credit is not there, and yet the model "y" has blown by the competition. guys, this is a bit of a warning to the rest of the auto industry that if you come in with a vehicle like the model "y" that hits with consumers in a certain

way, you can blow, they can be quite popular. and that's what we've seen with the model "y" in california. >> we had a story about bacon yesterday and jane welds made the point california makes up about 15% of all bacon consumption. i was trying to figure out an a population basis it's like 40 million people so it's a little more than 10% of the population, yeah, maybe 11% or 12% of the population it's not totally out of whack. it's a market that can't be ignored, that's for sure >> no. and within the auto industry, becky, it is the leader. you will always hear auto leaders talk about executives, talk about we need to win in california why? it's the most competitive. it leads in a number of areas whether you're talking about style, whether you're talking about technology it is the most competitive and if you canwin in california, theoretically you should be able to win almost anywhere else. and tesla, i understand the freemont factory is there, and i

understand californians adopt and have adopted evs much faster than the rest of the country that said i remember when the model "y" came out, and there were a number of people who said that's a nice vehicle. it's number two now. it's blown by the civic, blown by the rad 4 it has become really the vehicle to a certain extent in california especially if you're looking to buy an electric one >> i was out there last week i saw a ton of them. phil, thank you. great to see you >> you bet >> at the top of the hour we should tell you transportation secretary pete buttigieg will join us to talk about the ev push in washingtonch and by the way, president biden actually gave a shout out yesterday to elon musk. ers there have been people wondering why he doesn't bring elon musk up yesterday in a speech he was giving he did give a shout out to elon musk and tesla being america's number one car company. so progress. >> absolutely. it was a debate we talked to pete buttigieg about this

before coming up when we return blackrock's global cio rick reider is going to be with us. and later when robin hood investors are buying and selling on that platform joining us with an update on the trading business squawk coming back in just a moment

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welcome back to "squawk box," everybody. the futures this morning are looking pretty bright. dow futures indicated up by about 212 points right now the s&p indicated up by 36 the nasdaq indicated up. if you've been watching what's been happening in the bond market right now the 10-year is yielding 1.93% yesterday the ten year hit the highest level it's seen since november 2019, so yields continuing to climb. inflation and the fed obviously in focus tomorrow we'll be getting the latest cpi number. that number will be released at 8:30 a.m. eastern time the expected increase is 7.2%. from more on the market rates and the fed, let's bring in rick reider he oversees $2.8 trillion as

blackrock's chief investment officer of fixed income. rick, good to see you. >> thanks, becky thanks for having me >> let's talk about the inflation picture. we're looking for a hot number, we know that 7.2% year over year. inflation is kind of baked into this at this point what are you expecting for tomorrow, and how long do you think this inflation picture will last? >> becky, i mean that is going to be the key question, and part of why, you know, markets are so jittery is the focus around what is extraordinary we haven't seen these inflation numbers in decades, so the markets are jittery. listen, it's going to be a strong number tomorrow i wouldn't argue the fb youput on the screen. listen, i think we're going to see a strong number here i think you're going to see a strong number here i think you're going to see a strong number next month listen, then i think as you get into the spring and summer you're going to start to see some things kick in. some of the supply chain

dynamics will improve. an interesting set of conditions earlier today about supply chains you'll get some of the base effects kicking in. i think it's coming down the projections i think you showed earlier we come up with the same thing quantitatively you get core cpi back down to around 3% by the end of the year by the way, the thing that's still going to be sticky is high wages. the one tomorrow is rents, that's the other sticky thing we're going to focus on quite a bit. >> those are key issues. rent is very important wages is the key component to an inflationary spiral you can't get out out of if wages are going to be sticky why does everyone think inflation is going to come down later this year? i still don't get that >> we've had decent wages over the last couple of decades

what's really spurring the inflation is this explosive demand for goods you've got you emerge from a pandemic actually twice. you get this explosive demand for goods and you can't supply enough of those goods. when you think where is that going to be a year hence or nine months hence a lot of that is going to come off. wages, i still think we're in a hot employment market. friday's numbers was impressive. i didn't think you could actually hire that many people into the labor force during this omicron period, so wage is going to be sticky i do think, though, you get a dynamic people start to -- some of this explosive consumption taken place is on the backside of savings and fiscal stimulus that have really grown you're going to start to exhaust some of that over the coming months listen, i think it's going to be sticky hot for a while driven largely by the wage component

but won'tbe atthese levels we're seeing today it's hard for the fed to impact rent when you don't have enough inventory, so the question is how much does the fed have to go after this when it's really hard for the fed to modulate some of this inflation >> but that's an excuse for them to throw their hands up and say this is beyond our control that's not going to sit well when you still have cpi continuing to climb. >> so, i don't think they should throw their hands up what i do think they should do, they should move off easing. they should come out today and just stop the qe i think the qe doesn't make any sense. and listen, they need to get to neutral. and it's going to take some time to get to neutral. you don't want to shock the system by the way, part of the wage increase is really powerful. you're starting to create some real benefits around the wage gap, et cetera i actually think there's a lot of -- >> wages have moved up and that's a great thing, but prices have moved up by even more, and

that's problematic, yeah, you're finally making more money, but guess what you've got less buying power >> so reacting to that in february of 2022 is you've got to be careful about how you react to that because i do think you're going to see some evolution of that over the coming months. listen, i think thefed should get to neutral i think they should get to neutral quickly and let the balance sheet run-down a bit once you get to neutral, watch how the data transpires. if you need to tweak it a bit more you should do it. you want to preserve recovery. you want to preserve employment continuing by the way, more people can enter the work force and to have, you know, what are good wages particularly for lower and middle income is a great thing for the country. so i think you've got to be careful. you've got to be delicate. it's different you're not tapering now. now you're talking about draining liquidity i think we have to be careful about that >> rick, i hear what you're saying and it is basically the view we've gotten, the

conventional view for most people david rubenstein he says the same thing he does see the same things you're seeing. steve points out the two-year 10-year spread is just 62 basis points that's telling you the bond market agrees with you, and all these things are happening when you see numbers like we saw yesterday from the nfib, though, the largest number of small businesses are planning on -- already have raised their prices in this new year that we've seen in almost 50 years i mean, things like■ç■that start to get concerning because once the price increases go in, we heard this from all the big companies who have been reporting earnings too price increases are on the way price increases are been here and they plan to see more of those this year. i don't understand why and how inflation goes away. >> so first of all i know last

time we were on two weeks ago, a couple weeks ago we talked about i think the equity market is going to end the year in a pretty decent spot i think the next few weeks are challenging because you've got a lot of data going to come out the fed. if you think about companies now areane an incredibly luxurious position their ability to pass through is maybe like nothing i've ever seen before from industrials to retailers to semiproducers your ability to pass through is extraordinary. so that is in front of us today. and by the way, i think there is some stickiness to this. part of why companies have tremendous operating leverage in an environment like this wave got to see as time goes on technology is a pretty powerful thing. you're seeing this in a bunch of places look at the cloud data, the ai data that's coming technology will start to see some replacement dynamic and competition will start to erode some of these luxurious margins. again, do i think we're in this

sticky inflation -- if we run a little bit hot inflation for a long period of time, is that a bad thing as long as wages are still up listen, we operate for how many decades where goods were disinflating or deflating? and if we get a bit of pricing that creates some incentive to invest i'm not sure that's a bad thing. >> just to put a finer point on your views on the stock market, you do think the markets will be up at the end of the year, but you also think we'll see the rerating in terms of multiples being taken down you're worried about margins kind of compressing a little, so what keeps the stock market afloat is it good earnings because of a good economy that just keeps trickling through, can't ignore it >> by the way, the earnings numbers are impressive 76% of the companies have been able to beat if you take these numbers and we're going to have nominal gdp this year. corporate revenues should be about that sort of number an

then you put the operating leverage stock buy back you can get to a 15% accretion in terms of earnings. so the discount rate goes up a bit. maybe you compress multiple a little bit, does that get you an 8% to 10% return on equities, yeah i think so. you've talked about a bit of margin compression will come but these are impressive numbers you look at big tech and the ability in huge scale to grow some of your business 30%, 40%, that is an impressive environment for companies to operate in >> no kidding, absolutely. rick, really quickly we've got raphael on a little later this morning. is there anything you'd like to hear from him? >> i think there are a couple of comments is the fed going to go 50 and i think he brought up at one point you could use 50s. listen, that creates some ambiguities in thought process from the markets do you use 50s or can you work your way through 25s purse sittantly to get to neutral?

how you communicate that is really important we've got to get to neutral but does it mean longer-term going much further but that's a big deal and i think he's made some comments about that i think how he thinks about will the fed use 50s to get to neutral and potentially beyond and how would you communicate that to the markets and the economy i think is really important. >> rick, thank you really appreciate having these chats with you you make things a lot clearer. >> i don't know about thank you very much. appreciate it. >> we'll see you ater. coming up when we return, robinhood's chief brokerage officer on the platform's trading performance. what investors are buying and what he sees for the future of the company. and then at the top of thehour transportation secretary pete buttigieg is going to join us to discuss the administration's made in america agenda and so much more. "squawk" coming right back , her. ...in the desert. really guys? t-mobile has more 5g bars in more places. and now, when you switch, you can get iphone 13 on us at t-mobile.

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welcome back to "squawk box. shares of robinhood closing on tuesday and well below the ipo price of $38 in july now the company has tapped an industry veteran to take the helm of its trading business we're joined this morning by robinhood's chief brokerage officer. it's great to see you. i want to talk about what you're seeing on the platform and really what you hope to do, what you make of the fact that the investor class that had invested in this company is not giving this company it same kind of valuation it had just months

ago. >> good morning, andrew. yeah, it's been interesting getting to know the clients here at robinhood they're navigating this recent bout of volatility they've pulled back a little bit in terms of buying if i look over the last couple of months their buying has not been as aggressive there's always going to be a positive skew in other words on the retail side you're always going to see more buys than sells. but some of the names they're still buying microsoft, amazon, apple,rivian.■ at their core younger investors who may not have as much volatility as what we're seeing

today. >> how do you think about that volatility in the core base of users, and is the plan to try to transfer people over who may have more experience into robinhood or is it to educate those who are on the platform? what's the strateg >> a little bit of all of the above, andrew. so really i think there are three parts to this strategy one i would say all of us would agree that robinhood really cracked the code on getting new investors into the marketplace they made it very frictionless, intuitive. so continue that but also at the same time -- and to your point on education we have 40 million people subdescribed to robinhood snacks where we do some education, but then deeper education for clients that are already here and letting them sort of mature and grow with us so some of the things we're working on and probably delivering over the course of

this year would be retirement accounts we've already launched some first trade recommendations, a lot more education, some fully paid so they could share in some revenues and the concept of having to wait for a bell is a little foreign to this younger generation and then finally, for clients that want to come here with more experience to your point we just opened up the ability and we're seeing accounts that are multiple of the size of our current account. so for those clients we're building out those advance tools, education and strategies that they can enlist those >> when you look at the growth of robinhood one of the things that really powered it was crypto and meme stocks let's break those apart for a second what are you seeing in terms of

of the meme stock phenomenon right now and whether you think that is a feature of the markets in the future or that was a fad. >> you know, it was such a surprise to see what happened. the only thing i would say is i would look at customer behaviors and tell you that those aren't even on the top handful of names that are being traded anymore. so, you know, to your point it's probably a fad to say it won't happen again i don't know i could predict that. on the crypto currency side, as you know i think we have 7 points listed, we're doing a lot of exploration about finding compliant ways to expand that and also, you know, rollout some other features people have been looking for like wallets and we also have aspirations to take this brand global, and we would do so crypto first >> crypto first, explain that. because obviously right now coin base and others are already in

that space >> well, i think the path for us to go global and have the most traction is probably through crypto and then maybe follow with other components of the offering because from a -- just from a regulatory standpoint and all the other facets that comeinto it, it's probably the easiest way to go global in terms of options and activity and the like, and also the tools you have to build, when you talk about bringing over, for example, the professional-type investors or others that are more experienced, there's lot of tools that some of your competitors have that you don't have yet how critical is that to the future of this company >> well, andrew, you know, i -- one thing robinhood has been very successful at doing is basically building in a way that

isn't always the way that it's been done in the past. so when we think about it, we don't think about it in the context of we need to have what everybody else has we kind of look at it through the clients eyes and say what are they really trying to do so from an options standpoint they might be trading options in a slightly different manner than people would be doing at other traditional brokerage firms, so how are we going to accommodate them >> how does a robinhood customer trades options differently than a vanguard customer would, a fidelity customer would? >> they're not as far along in the journey so in other words they're younger, they're probably newer trading options, so there needs to be more education married to it and that deeper understanding of exactly what they're doing there i'll give you a perfect example. it way i got over to robinhood

is being someone who's been in this profession my whole career, i had three daughters and they're all in their 20s getting jobs, and i said the importance of starting to invest now is critical >> steve, we've got to jumpjus because we're up against a hard break. it is great to see you i hope you come on back. >> i will definitely come back >> thanks for joining us in your first interview in this role >> thank you for having me big hour ahead we're going to be talking to pete buttigieg, raphael bostic and ron zimmer we'll be right back. you're a one-man stitchwork master. but your staffing plan needs to go up a size. 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

good morning futures pointing to a strong open we've got green across the boards this morning. meantime president biden finally gives tesla some props analging the company's ev leadership we're going to be speaking to pete butteginal about the u.s. electric charging build out. and ahead some highly anticipated inflation data tomorrow we've got an inexclusive interview with atlanta fed president raphael bostic you don't want to miss it. the final hour of "squawk box" begins right now

good morning again, everybody. welcome back to "squawk box. this is cnbc i'm becky quick along with andrew rosorkin. joe is off today the futures have been on fire. you can see right nowthedow futures are up right now about 229 points the nasdaq up about close to 185. and we have seen yields just about the levels we've seen yesterday at this time 1.13%. >> thanks, becky we're just a little under 90 minutes away now to the opening bell on wall street. i want to get straight over to dom chu. >> some big ones fo sure here. first of all take a look what's happening over the course of the past year with oil prices. usually in a time of rising gasoline and energy prices solar energy becomes a huge focus for

investors. end phase energy, though, over the last year has lost about 11% of its value but it's up 22% in the premarket trade because solar energy and battery technology comes up with better than expected results and also gives a forecast for the current quarter. that's above analyst expectations as well, so a little bit of dip buying, maybe short covering end phase energy a 22% gain in that stock also watching what's happening in the ride handling space because we had after the bell earnings yesterday from lyft lyft shares are down about 4%. by the way, that down 4% is a lot less volatile than the options market was pricing in. lyft comes in with better than expected result. but some disappointment leading to some weakness there although per rider did come in above expectations uber reports after the bell today. then watch what's happening with our popular tickers.

a search on our most popular website and maybe no surprise peloton was the single ticker search chipotle mexican grill on earnings, earnings, pfizer as well the rest of the top 10 and top 50 are on my twitter feed at the domino >> thank you, at the domino, dom mentioned meta, facebook's parent closing with a market cap below $600 billion yesterday that's for the first time since may 2020 that stock closed lower by 2.1%. bringing its one-week losses to 32%. also happens to be the number house ledge silaters had picked for this package of competition bill designed to target big tech if meta remains below that threshold it could avoid the additional regulations the bills would addfor ways it

conducts business and makes deals while larger peers of amazon and alphabet and microsoft and amazon would be subject to the rules and still time before these bills become laws if they become laws at all. so an interesting development of sorts. >> it's weird because it also kind of shows the ridiculous of picking a random number like that today there were $599 billion. if stock price goes up it might be a little more than that it just brings up the arbitrary nature of some of those numbers they've thrown into it >> those rules were clearly built for facebook and built for these companies. to me the larger question goes to how you approach -- and i trust how you approach regulation to begin with because here you have a company that may not have had the same success it was having before, and so is it not having that success --

>> i think the regulatory oversight has cast a shadow over meta for a while and over facebook for a while they haven't been able to do things because they knew washington was watching so closely. >> they actually made -- if you go and look they obviously haven't bought a tiktok or snap, but they have made some, you know, hundreds of investments over the past several years, mostly smaller, but it raises all sorts of interesting questions. >> it does >> meantime when we come back three interviews you don't want to miss this hour, atlanta fed president raphael bostic weighing in on inflation and why he's backing a congressional stock trading ban, and we have lyft president john zimmer all of it coming up in a big hour ahead and mr. buttigieg in just a

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welcome back to "squawk box" this morning take a look at futures right now because we're in the green across the board the dow up about 224 points. the nasdaq open about 190 points

higher andthe s&p 500 up about 39 points. stocks leading the s&p higher this morning let's show you what has been moving this morning because we have a big list. enphase energy up over 22% this actually moved even higher than before. you've got chipotle moving even higher as well, and then you can look at pay com up over 6% as well becky? >> thanks, andrew. in just over 24 hours we're set to get january's consumer price index reading. theflation is expected 7.2% ye over year. that would be the fastest pace since 1982 that obviously will givethe fe a lot more to think about as it considers when and how to hike rates. steve liesman joins us right now. steve? >> becky, thanks very hutch. we're joined by atlanta fed president raphael bostic thank you for joining us, president bostic and i want to throw to you the ball becky just handed me, which

is inflation coming in -- expected to come in tomorrow at plus 7%. at the same time we just did a survey of forecasters and we found they expect to come down this year. what's your outlook for inflation and the dynamic that will act on prices in the year ahead? >> first of all, good morning, steve. it's good to see you when i think about inflation what i see right now is an elevated level, and i'm very hopeful that we're going to start to see that decline. you know, when i think about the numbers most important to me and what i'm looking at where is not so much the year over year because we know there's a lot that's happened and last fall very strong for inflation. but if we're going to see it return to numbers that are more comfortable and closer to our target, you need to start seeing those month over month changes to start the decline there is some evidence that suggests we're at the cusp of that the last cup of months. what we've seen is inflation not get worse on a month to month level.

and i'm hopeful with that it will translate into a slow decline as we move through the spring and into the summer, which will give me some comfort we're really headed in the right direction. >> there median forecast on the fed is 2.6 is the pce indicator which you guys say is your preferred indicator. do you think we get there this year >> well, i'm hopeful i'm looking at it at 3% this year because i think you'd have to see dramatic moves in terms of inflation declines. pretty early in the year if you're going to get to a 2.5 type number. for me the actual number is not as important at this point than the trajectory and making sure we're not moving further away from our target but rather moving closer to it. >> i'm curious your outlook for monetary policy and how that interacts with inflation that's why i started there

how much hiking does the federal reserve have to do, and how much balance sheet reduction in your opinion? >>. >> well, in terms of hikes for the interest rate right now i have three forecasts for this year i'm leaning a little towards four, but we're going to have to see how the economy responds as we take our first steps through the first part of this year. in terms of the balance sheet i've been saying for a long time we increase our balance sheet dramatically in response to the pandemic and now we're further away from thedes of that i'd like to see the balance sheet reduced pretty significantly. and i want that to start as soon as possible, and hopefully we'll be well into that before this year is out. >> i've got to come back to the balance sheet in a bit, but i want to do this -- ask you a question about interest rates, which is if you get three or four or even five interest rate hikes this year you'd be i don't

know 1%, 1.03% wouldn't you do that anyway even if you didn't have an inflation problem? so is anything the fed is going to do in terms of some of the most extreme forecasts for fed tightening, does it really address the inflation problem sufficiently >> well, i actually think it will go a long way toward addressing inflation we'll have to move off zero at some point anyway, so to that excitant you're right. but i do think our actual movements and the signal we are really moving back to a more normal stance will have implications and impacts for the decisions people make and how they engage with the economic markets. so i actually think the signaling and action are going to be material to really help get people into the mind-set that we want them to, which is that inflation is going to get to where we need it to get to. employment is going to continue to grow, and we're going to get to a very strong economy, and

we're going to maintain a strong economy even as we return to a more historically normal stance for our policy >> raphael, something i get a little confused about is when people start talking about rate hikes. you say you're anticipating three to four rate hikes this year does that mean you're looking for 3 to 4 basis point hikes or could some of those be 50 basis points are you looking at 75 basis points to 100 basis points, or could it be more than that if you're considering some of them could be 50 basis point hikes? >> that's an interesting question, becky. when i say rate hikes it really is at a 20 basis point increment element. when we do our estimates we don't put in numbers of hikes. we put what level of interest rates we think we'll get to at the end of this year so for me i am thinking very

much of the 25 basis point perspective, but i want everyone to understand that every option is on the table. and i don't want people to have a view that we're locked into a particular trajectory in terms of how our rates have to move over time are really going to get the data show us to what extent a 50-basis point or a 25-basis point move might be appropriate. when i say three i'm saying it in the context of a dot plot discussion where that usually is 25 basis points, but i'm open to anything and i'll let the data really lead my adaptation in terms of thinking what's appropriate. >> one more thing -- why do hav quantitative easing at all

>> we have signaled the reduction in the pace of purchases to get to a stable place and then we're going to pivot as much as possible to removing the liquidity in the marketplace. i think we can do that without leading to considerable tightening at least in the early phases of the balance sheet. so if we can get to that i think we'll be in a much stronger place to continue our policies and make sure our economy continues to grow as we move to a less accommodative stance. >> president ■ç■ostic, that sets me up perfectly for the next question i have which is about the balance sheet. i think people need to the understand there's two tools out there. there's the interest rates and the balance sheets now you're going to stop buying them and reduce the balance sheet. governor waller and others have suggested there's a trillion and a trillion and a half dollars of your balance sheet that could

roll-off without really providing any lusquidty strain in the market. in other words, i don't know if it would be painless but wouldn't be a big deal to roll-off that much are you thinking about that amount as coming offthe top of your $9 trillion balance sheet relatively easily before you're providing any strength at all to the economy? >> it's very funny to say this i've been having conversations with my team on exactly this point, and i think our consensus is that a lot of that excess liquidity can come off and won't actually represent meaningful tightening because that money is not actually being deployed to continue market functioning and to the hans economic activity. i think as we think about the pattern of reduction the first part of reduction i think we can do pretty significantly. i agree with governor waller i think we should be really looking into ways to remove that excess liquidity that the

markets have shown us exists so that we can then get into decisions about what the use of the balance sheet should look like in terms of a menu of tightening our policy. >> last question, president bostic, very quickly are you concerned at some point because of the inflatin proble the fed may have to sort of step up its program and act to deliberately slow the economy? >> well, there's always a risk of that. what i would say right now is i don't see that in the cards. you know, one of the things that's been very true and we even saw this last friday is this economy has rebounded far stronger and far more robustly than most people have forecast throughout this experience and my forecast i still have us growing pretty significantly and comfortably through the rest of this year and well into 2023 and so a lot would have to happen i think for our policies to have to be positionedto actually constrain growth in a

significant way. but i do worry about it. i'm a central banker that's what we're supposed to do, but i don't actually think that's a modal forecast for me right now. >> president bostic, thank you very much for joining us this morning. and we'll be talking to you again soon becky, back to you >> steve, thank you. and thank you for bringing us that interview after more than a year in office president biden finally acknowledging tesla's ev strength if you blinked you'd probably miss it, but here it is. >> since 2021 companies have announced investments totaling more than $200 billion in domestic manufacturing here in america. from iconic companies like gm and ford building out new electric vehicle production to tesla, our nation's largest electric vehicle manufacturer to innovative younger companies like rivian building electric trucks or potera building

electric buses these companies joining intel, bringing microchip manufacturing back to america after decades of decay, from texas instruments to samsung and texas to tsmc in arizona, we're seeing the beginnings of american manufacturing comeback >> you may have also caught a reference there to tritium, that's an ev charging company that could eventually produce 30,000 chargers a year joining us right now to talk about the ev build out and the biden administration's new infrastructure law is transportation secretary pete buttigieg. and mr. secretary, thanks for being here this is pretty big news. a lot of companies that are investing in the united states and building things right here that plays on the administration's focus of made in america >> that's right. we see the automotive industry heading electric over the long run no matter what, but we have to take steps to make sure that electric vehicle revolution is made in america. we want american workers on american soil getting the

benefit of that economic activity yesterday's announcement was about chargers, which is a very important part of the infrastructure, of course. the president's vision is to have a network of half a million ev chargers across the country, and that's very important especially in areas where people who live in multifamily dwellings, so it's not as simple as just a single family home where you can plug it into your garage overnight and it's important in rural areas where people take long drives over long distances and need to know there's going to be a charge available between where they start and where they finish even with the vehicles that have 2, 300 mile plus range, range is something that might cause someone to hesitate to adopt an ev we need to speed up that adoption >> we played that clip of president biden giving a shout out to tesla, but that has been

something missing for quite a while. tesla hasn't been invited to these white house meetings and elon musk hasn't been someone that's heralded and the reporting has said this is happening because the administration doesn't like tesla because they're seen as anti-union made in america, does that mean union-only or made in america is it good as long as it's providing good jobs for people here in this country? >> look, as you know the president strongly believes in every worker having the free choice to join a union we believe in free paying jobs and believe unions built the middle class we also admire the range of american companies thathave innovated including tesla that did so much to make evs possible in america now it's mainstream. earlier on at a time, by the way, when of course u.s. policy with tax credits was supporting companies like tesla, you know, that wasn't views adsuch a sure bet. now we see some of the most iconic some would have said old-school names in auto manufacturing out of detroit right there alongside companies out of silicon valley, all of

them in very different ways, helping move america toward this goal we need to make sure we have all the different parts of american industry and the american burke force in tune to this because this is the future again, there's no question whether autos or electric, the question is will it be made in time and done in a way all americans can benefit and afford those vehicles and capther those savings when you're filling up >> if you want this to be affordable to everybody, why is it setup in this way to qualify you need to have at least $10,000 in taxes that you owe. if you look at the demographic for who buys these things in 2019 the top category was white men who earn at least $100,000, have a college degree. i mean, this -- it's not mass market at this point and the way the credits have been setup aren't necessarily designed to make it so >> and that's exactly why we've

proposed a new model going forward. this is in the president's build back better proposal to congress the idea is to make sure we buy down that sticker cost so everyone can capture the savings. there's interesting coverage this month about when we see parity, when we a moment when an ev is cheaper to buy and own by some oekts that's already true, but not in terms of the sticker price. so we can redesign the tax credits in a smarter way, and that's part of what we put forward. >> senator manchin is not going to support it. is it going to survive in some way? is this going to be carved out >> look, there's so many policies in the president's build back better vision i saent say they're good policies■■ that deserve to and move forward whatever happens withbuild bac better we're already working

with a historic bipartisan infrastructure law that did pass and did get signed we're calling on the department of energy to team up as we're doing and they're going to come in with their plans on building out those ev charging networks such an important part of this and look, ev chargers are going to be different than what we're used to with gas stations. in some ways it's easier because you can have them at red dnss and workplaces in some ways it's harder this is going to be a huge part of the story for transportation even in the next five years. i'm not sure folks realize what a big revolution this is it's one of the reasons. >> we have rivian on that list and lucid on that list one of the things fascinating if

you read the reviews of these vehicles tesla, lucid and ribbian get much higher marks generally for their ev vehicles. those companies, of course, nonunionized and i'm curious what you make of that >> look, i'm not going to come on here and endorse an individual product or pit one american company against each other. they're out there competing. i will say it's important for us to move toward widespread adoption of electric vehicles. so if it's one thing if they're viewed as luxury cars and definitely how the early generations of evs tend to be viewed it's another to make sure these are the standard for the category of vehicles what i'm seeing both from the traditional detroit oems and newer younger companies is what they are generating in terms of these electric vehicles are extraordinary. they can outcompete their combustion engine counter parts, and i can tell you from having

been able to experience them personally they're a pleasure to drive and ride >> and separately i wanted to ask about the electric grid because as we build out these charging stations and the number of electric vehicles becomes larger in terms of volume, there's a question about whether we actually have a grid that can support all of of this how concerned are you about that >> well, it's one of the reasons why the infrastructure law includes a lot of support for modernizing our grid remember a year ago when we were first launching this vision we're having all these arguments with some folks saying, hey, if it's not a road or bridge it doesn't count as infrastucture we're saying wait a minute pipes are infrastructure, grid is infrastructure, and that's all the more true when you see how the grid is connected to transportation we've been meeting for a long time the same way we need to do our roads and bridges. it's more or less one year i think right now since we saw these horrifying scenes of

american citizens in texas melting snowballs in their bathtub to be able to flush their toilets. what was going on there partly because they hadn't prepared their grid to be resilient in the face of the future i was with secretary granholm yesterday. i think her department is leading a generational effort no less important than i think what's going with the roads and bridges. >> secretary buttigieg, we've talked a lot about the 5g rollout and the problems that have existed between the differences between the faa and fcc. and for people on the know on this you were pretty essential behind the scenes in getting all sides to come kind of come to table and how do you think this resolves itself? >> well, i really appreciate the collaboration that has gone on between people who weren't normally asked to be in the same room look, the telecom world and aviation sector are very different but have this area where there's such an importat need for collaboration, the same is true on the public sector

side with everybody in the federal government who deals with spectrum, who deals with telecommunications and deals to be engaging. really encouraged by the way that collaboration has happened especially in the weeks since we were seeing those very real concerns about flight disruptions. we've got a long way to go we've got to continue to refine not just the technical side, but the way we approach these things not just so 5g cell service for our cellphones and achbiation can coexist comfortably, but as we see more and more different uses of the spectrum, making sure that unfolds in a way that makes sense for all americans, for industry, for the economy and for safety, of course. >> secretary buttigieg, thank you for joining us today >> thank you >> take care coming up, we're going to speak with lyft's president about the company's loss of riders last quarter and the outlook as omicron begins to fade hopefullynto ithe

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one week from today charlie munger is set to hold court at the daily shareholder meeting. he's going to be answering shareholder questions virtually starting at 1:00 p.m. eastern time on february 16th. if you'd like to submit a question, go ahead you can submit yours today by

submitting an e-mail to daily journal questions at cnbc.com. i'll be going through all of those questions coming in and asking charlie as many as possible, so go ahead, send ]u) questions in today when we come back republican senator steve daines will join us with his plans on a new stock trading ban. and by the way this ban happens to be bipartisan stay tuned you're watching "squawk box" and this is cnbc 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

welcome back to "squawk. we've got a new proposal out of congress to ban stock trading by congress it comes with a flurry of similar ideas on both sides of the capitol. joining us right now is one senator behind the senate plan senator steve daines of montana. it's fascinating to see this taking place and you joining with bipartisan hands on this. what do you think the chances are this actually passes >> well, you look at what we proposed here, we're off to a good start here you've got a republican from montana working with a

democrat from massachusetts, elizabeth warren when you've got them working on something in a bipartisan fashion, that greatly increases. the odds, look, congress has one of the lowest approval ratings of the institutions in america the american people have lost their faith and trust in congress when you're elected to congress you're here to serve, not to be served when you're elected you're here to serve the people, not the elite. and this i think is a step forward, an important step forward to restore the faith and trust of the american people in this institution >> senator, one of the questions and sis the is a very limiting program you setup here including restricting blind trust. why do you restrict blind trust? because i think there are some people on the hill and i've talked to in the past 24 hours that look at that and think that's actually one step too far. >> yeah, well, we're going to have a good spirited debate about this but the intent here is to ensure

members or their spouses are not trading and holding individual stocks and bonds and so forth. they can have those in widely -- listen,out put your assets in a blind trust you're still aware of what assets were put in that blind trust. that's just the reality of it, and we're trying to reduce the conflicts of interest here there's no perfect solution, but there are much better solutions. i think what elizabeh warren and i have proposed here has been bipartisan. i think the right balance here of preventing these conflicts of interest >> congress person had raised a question about whether you could sell your assets or stocks on your way into congress andthen take that money and put it into a blind trust where somebody else could invest it at their discretion >> we've looked at a lot of different options. we've gone back and forth. we're trying to strike again a bipartisan bill. there's a peck strm of congress,

frankly. and so we've worked back and forth. we've spent a lot of time going back and forth building support and going back and forth, so i think we've got something that actually could pass so you have a lot of members out proposing individual bills we want to actually make a difference and get something passed i was in the private sector for 28 years i was measured on results and outcomes that's the focus here. >> look, we've talked on this program about how all of us journalists and others and those in corporate america can't own stocks especially when they're privy to inside information and the like so this to me makes a ton. sense. the question i was going to ask you, though, is what kind of conversations have you had with the likes of a mitch mcconnell or nancy pelosi, and are they onboard with this? >> yeah. well, i have yet to directly speak with leader mcconnell or

speaker pelosi on this particular bill, but i'm having several conversations with my colleagues in the united states senate look, there's an appetite for this you're going to see growing support for this bipartisan -- it's theonly bipartisan bill that will be introduced. again, a lot of individual members are out there introducing their bills. it'll take us a little longer to put together this bipartisan compromise this actually could pass i think this has the right balance to help restore faith and trust in congress. the american people have lost it and rightfully so. >> senator daines, we've been bringing this question up to the people we've had on, and the answer we get back is i'm in favor of not allowing members like myself to trade, but yo can't tell me my spouse can't trade, and that gets a little complicated. well, your bill prevents spouses from trading as el

>> it does i just think when you're a married couple it's hard to separate that. we allow children, you allow staff to continue to trade, but i think we keep focused on the■■ member and the spouse. and again, i think we've struck the right bipartisan balance here to get something passed and signed by the president. >> children -- you allow children who are still dependents to trade? >> yes >> why i mean, if they're dependent it'd be your money they'd be trading, right >> yeah. but at the end of the day that'd be a very small exception. but i think the focus here will be on the member and the spouse. and again, they can hold widely diversified mutual funds, etfs that's all allow

it's just trading individual stocks it's getting the concentration of wealth into individual companies and individual stocks. that's going to keep the focus here in terms of avoiding that conflict of interest >> senator, why not limit it on the staff? clearly the staff of the fcc, for example, is blocked from buying and selling individual stocks given that you have to imagine a senator or congress person is going to have access to information. that's the reason you're doing this and you're trying to create credibility among elected officials, but i think you're trying to create credibility among government, if you will. why limit it >> yeah, it's a fair question. remember key staff members still have to submit complete public financial disclosures of assets they hold. so that's a trance parent process. as somebody, again, who spent 28 years in the private sector i do want to make sure we don't prohibit the best, the brightest, the most talented individuals to come and serve

here on capitol hill you're only as good as the quality of the people you hire your organization is as good as the employees. so i don't want to put that birdp on staff ych i want to be able to attract the very best staff in this country to work here and tackle these complex problems >> senator, i don't disagree with you, but that argument has been made about senators and congress people, meaning there are those who may not want to seek elected office. that has been the argument as far as i've heard it for decades now, and so why you'd apply that to yourselves but not the staff, to me i do't -- i guess i just don't understand why make the distinction? >> well, again, this is where i look at i want to be able to hire staff that will not be in any way disincentivized. we're facing -- >> are you concerned it will

disincentivize people to seek elected office >> i'll tell you why i don't think it will it's because i want to make sure you can still hold diversified mutual funds, you can still have investments what we're targeting here is the trading of individual stocks that's the focus here, but you can still have diversified etfs and so forth i think that's the right balance. >> one final question. why now? this has been on the table as an issue that's been discussed for years, and every time it's come up it's sort of bubbled up and then maybe been watered down what do you think is going to happen this time >> yeah, well it's never too late to do the right thing, and again, i think putting more accountability on members is the right answer the same thing is true of balancing budgets. i've always said if you want to balance the budget, if congress doesn't balance a budget, you should stop paying members of

congress there's a moment here i think you're starting to see a growing distrust in congress we look at what can we do to try to restore some of that faith and trust in congress. this is a step forward, and that's why i'm glad to be partnered with elizabeth warren, democrat from massachusetts, host from montana we've got better odds this thing might get passed >> we will see senator, thank you for joining us this morning. appreciate it. >> thank you up next, a first on cnbc interview with lyft president john zimmer. where does he see ridership heed post-omicron we'lgea l t chance to ask mim don't go away. "squawk box" will be right back.

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welcome back to "squawk box. shares of lyft lower in the premarket. they've come off their lows in the session. current quarter revenue guidance came in a bit light. it also saw saw record per rider revenue in the first quarter joining us right now is lyft co-founder john zimmer lyft has become a bellwether what's going on in the country in terms of transportation and omicron and everything else, and i think you're seeing it in some of these results what's fascinating to me is that your riders are actually spending more per ride than before, and that's actually driven up in the revenue, but

what do you think that looks like over the next 12 months does that continue to pace >> i'd say on the rider side we'll see more riders come back. if you look at, you know, weather conditions that affects our bike business, you know, which ticks down in the winter months,but we actually added 6 million riders in q4 year over year and so, yeah, people are getting back out there you're seeing mask mandates and in certain states, so feeling quite good about the year ahead. >> in terms, though, of spending in terms of price do you imagine price per ride come down does it going up this is■ç■part of ininflation story we've been seeing across the country. >> it's not just part of ininflation story. it's also pat of the ride mix. so when you have less of the shorter rides or even bike rides and you have more of the airport trips which you do so in q4 when people do see their loved ones and fly more we saw a 50% year

over year growth on airport trips, actually doubling, so ride mix plays a big factor in there. base pricing doesn't necessarily change going forward it could, but primarily i think it's about the ride mix. >> let me ask you you have price of gasoline obviously has gone up materially during thi how do you weigh that with also just the driver mix in term ms of how many drivers you have available at any one time? >> you know, we're also seeing much healthier driver conditions new driver activations up 50% year over year more and more people coming back into the work force. with dynamic pricing, it can solve some of the issues around increased costs and willingness for people to drive. earnings are still at a good average point looking back and we're confident we have much better balance from q 2 to q4, etas move improved by 30%, which is a measure of that balance between

drivers and riders. >> all right john, you're going to hate me for asking me. i'm your worst customer and i use lyft all the time and uber i will say at least in new york city, against taxi cabs because the price of the taxi cab, i think, on average seems to be materially lower if i can hop in a cab and can get one, i'm running to that and i think i'm -- i've been trained to do a little bit more during the pandemic because the price had gone up. maybe it's coming down how do you think customers are thinking about that issue? >> i mean, the convenience that we offer we've been competing with taxis in new york since the beginning. really confident in the convenience we offer and the different features and service levels we offer. and, yeah, there was dynamic pricing when supply or the driver's side was more difficult. but the service levels, as i mentioned, the etas, as a measure of that, are improving

rapidly. >> what do you think about competition with specifically with uber? are you in less competition with others than there used to be since some of them folded and others moved out, if you will. but with uber specifically >> yeah. i feel great i was going to say super pumped because of you with our position with the competition we're 100% focussed on transportation you're going see that start to pay off. we've made large investments in lyft maps, made large investments in other areas of transportation we have first party rend renditions -- rentals todoing well we have city bike in new york city, when you look as a transit system, it's the 25th largest transit system in the united states in terms of rides so the fact that we're seeing compounding benefits and loyalty as we start to tie those different transportation services together under one transportation network so we have our lane.

100% focussed on transportation. our competition is also doing consumer food delivery in big battles there with many new entrants we think it sets upstreamly well -- extremely well. >> there's a real tension between what is good for your drivers is not necessarily good for consumers. andrew was kind of pointing this out. it's gotten more expensive to ride because you haven't had as many drivers and there's less competition for uber and lyft. the drivers are probably liking it there's more per ride they don't have to run around as frequently and there's no short trips. how do you find the happy balance between the two things what your consumers want and what your drivers want >> yeah. that's our business. exactly. finding that happy balance building all the marketplace technology it's not a zerosome game we have built a lot of new features such that we can have higher utilization for drivers than we've in the past

to create those conditions you talk about where a driver gifts a ride instantly it's not a long pick up. so i'm confident in the tech we've built during these difficult spikes driven by covid whether it was higher demand than normal, higher supply than normal the tools we have built through the two-year period set us up to create a happy medium for drivers and riders. >> john, i have to ask you about a concerning and actually wildly scary story, if true the new york post reported -- and i've seen it online a bunch of times a looift passenger in brooklyn saying they escaped from what they called an alleged kidnapping plot against them can you speak to this? are you aware of this? what have you done to address it >> i can't speak to that specific incident.

i'm not aware of the details, but i can say we continue to make massive investments in safety we have silent escalation feature that actually looks at the behavior of the ride meaning if the route goes off course or driver is waiting longer in a place that doesn't make sense, we automatically notify driver/rider asking "is everything okay" we have an integration with adt to send emergency services should they not be okay or if we don't hear a response we'll continue to invest in features like that. >> in terms of -- this is a privacy issue for drivers. i've noticed a couple of people online saying, actually, when you get into the car, if you're really interested in protecting yourself, you should leave a message effectively to a friend but very loudly in front of the driver, you know, saying what the license plate of the car is and everything else. that information doesn't seem to

come up on the app itself. should it? >> the license plate is in the app. so that is part of it. it has been from the beginning an identifier. a unique identifier of driver. it's something, if you report an issue with the ride, that we, obviously, have. and i would compare this back to the taxis you were talking about in new york city there's no identity. so one of the bases of what we're doing is to create a much safer form of transportation or we would want to see every single incident put away and not happening. we're making more and more improvements and versus the alternative of taxi doing better. >> thank you for joining us, john thank you for clarifying it. >> thank you. >> i'll be in the back of a lyft, i'm sure, very soon. what to watch ahd teaofhe opening bell on wall street. squauk coming back

wrapping things up on this wednesday morning, you'll see now the dow futures are up by close to 250 points. we continue to climb throughout the session this morning at least while we were on the

air for the last three hours s&p futures up byabout 40. the nasdaq indicated up by 185 checking out the 10-year, you'll see the 10-year note is yielding 1.934% remember, the 10-year yield hit the highest since november of 2019 yesterday we'll see you back here tomorrow, andrew joe will be back, as well. right now time for "squawk on the street. good wednesday morning welcome to "squawk on the street." i'm carl quintanilla futures close to a one-week high here as the reopening trade finds some fresh legs. more states loosening restrictions we have signs of congestion, and at least one fed official said we're on the cusp of inflation moderating 10-year below 1.94. the speaker of the house said she's moving to ban stock