>> we're just doing the pool at our house. >> thanks for having me, by the way. >> great to see you. thanks for being with me have a great weekend we're looking at the markets turning into the green dow futures up by about 43 points. they were down by over 100 when we started the show a few hours ago. s&p futures up 6 the nasdaq up by 25. by, everybody. right now it's time for "squawk on the street. good friday morning. welcome to "squawk on the street." i'm carl quintanilla outside sofi stadium premarket trying to go green here as markets reel not just from cpi but that increasing volatility and fed speak as goldman sees seven hikes for the

year the fed poised to act as inflation continues to spike why investors are already pricing in a half point march rate hike. >> watching tech movers. zillow and expedia moving while shares of affirm tumble. and watching space elon musk says the first orbital star ship flight could be as early as march while astrospace failed to reach the first mission. we'll talk about inflation after yesterday's selloff. mike, what appears to be an extension of the selloff, really it's about the asymmetric fed speak whether it's bullard or barken or daily as the markets already pricing in 11 basis points before the next meeting >> yeah. market is moved so fast in repricing for what the fed is going to do. the movement in the two-year

treasury note yield yesterday up something like a quarter of a percent. just a historic level of radical rethinking on the fly of how much the fed might have to do. now, that being said, i don't think -- i certainly, actually, based on most other indications that bullard is speaking somehow in authoritative wayfor the committee. there's another inflation report, another jobs report before there's a march meeting so at some point along the way, there's probably going to be a little more kind of steering of the market expectations in a different direction. and i think it's also important to remember that it does fully depend on the trajectory of inflation. it's not as if there's a plan in the drawer they're going to open the drawer and that's what it's going to be it's dynamic i think that's the market -- what's interesting about stocks is essentially we just lost the prior couple of days' rally closed just below friday's closing level. it wasn't a complete washout but it's absolutely unsettled. one of the issues is if you're

an investor that's diversified or even not, just an aggregate, the world is diversified the values of the bonds getting hit hard on one end. it leaves you less able or willing to take on more equity risk or keep the level you have. it's one of the postfolio things introduces that much more unsettled action into the markets. >> it's such a good point. and it speaks to what the comments did in the market yesterday which was throw some cold water perhaps on some of the buy the dip action that we have been seeing as of late. i mean, that being said, we know we're entering this tightening cycle even as the fed does continue to buy bonds right now. as it's easing down on that program ahead of march and when that first liftoff is expected to happen. in terms of rate increases,but a lot of back and forth. steve liesman, so connected to all things fed continuing to stress that to

your point, bullard is not necessarily the majority when it comes to the thought process about how this tightening cycle is going to manifest and come out of the dpgate, but it does remind investors that already a multitude of ways this could play out based on the inflation data >> it's true and we've paid so much attention to cpi this week it's been pointed out this morning the fed prefers a different metric in pce. we are going to get another cpi number before the next meeting there's also -- you talk about the dynamic nature of all this bullard yesterday, his comment about i'd like to see 100 basis points in the bag by july. it was 11 days prior that he said i don't see how 50 helps us so it's that change within a matter of days from a voting member, and at least in '22 that has i think the market caught off guard. >> without a doubt, and i mean, just think about all the moving parts. one member of a committee that's

going to be making a decision based on data we don't yet have, you know, relative to how the markets might behave until that point is trying to say how many rate hikes by the first of july. what's also fascinating to me is how much the markets seem to make of those comments, at least as an element of kind of just wild card force to keep things off balance. because one percentage point by july 1st means 50 in march and then two more 25 basis point hikes by july 1st. there's a meeting at the end of july you could go one percentage point by the end of the july and have no -- i mean, this is kind of absurd when we're getting down to it is it a matter of four weeks and that's going to define how much inflation is restrained or how the markets take it or what the cost of money is going to be i think we can get a little bit too caught up in it. it shows the fact that the markets are going to remain a

little bit unsettled on their heels until there's a little clarity behind that >> yeah. that's right and it is worth noting that that cpi number did show the braddening, broadening y housing making itself known. it makes about face comments by bullard yesterday. earnings in focus. it's been a mixed tag. affirm holdings taking a hit the fin tech by now pay later accidentally tweeted hearts of the quarterly results. and then took those down on the flip side, zillow was up on better than expected quarterly resulted despite a loss on the shuttering home flipping business. the ceos of affirm and zillow will both be on tech check at 11:00 a.m. eastern and as you can see, affirm is down about 9%. zillow is up meaningly shares of expedia jumping,

though, after earnings beat forecasts despite omicron's impact on bookings we have that interview in the next hour with the expedia ceo peter kern you don't want to miss that. and of course, carl, it does speak to in the case of expedia, something we've been talking about really all week as we've seen some of the travel and airline and cruise stocks rebound very meaningfully and lead the charge this week. the fact that yes, omicron had an impact, but in the case of expedia, for example, the impact was shorter, shallower the recovery is faster than some of the variants impacts we've seen prior, and it does speak to the fact that more and more people are looking to go out and travel, go out and book, and bounce back from these waves of coronavirus as we're now entering what, the third year? >> something like that, yes. you're right the surprise profit out of expedia. mike, we mentioned earlier in the week that leisure and

entertainment stocks are near a three-month high on all the dynamics that morgan mentioned getting to l.a. last night, tsa numbers have been suppressed somewhat over the last couple months but it's starting to get to be a challenge to get around major cities, ridership in new york city subways best numbers we've seen since omicron. i think it was the jpm desk this morning that said look, there's going to be a lot of volatility around the fed stay with the reopening names. until you get either clarity on the fed or as they say, the fix below 20 >> right, and the fed also whatever it does, it's going to be acting into a reopening dynamic or at least into a little bit more of an energized consumer economy, most likely in the next few months. i think that's a buffer. it is an offset. travel related, i think it makes sense to say that those should be an emphasis in terms of investing. it's not clear to me that they really got down to keep

discounts again this time. some of the airlines have a rough run during the winter. so maybe that's where there's a little more of a gap in terms of perceived reality versus the valuations it's amazing expedia has been a great stock it's at new highs. booking as well. it's not as if the market has forgotten about this area. it's nice to see it's going to be perhaps taking up some of the slack. with zillow and affirm, they're fascinating. both down 70% from their highs it still matters if there's relief in the numbers as it was with zillow or seems like they're getting out of the tougher i-buying business and other media trends in their networks seem okay, affirm, a downgrade from jeffries this morning. not clear that the model is really shining through lower kind of fees earned on all the merchandise volumes that they're doing. and maybe a more crowded space right there. so even in stocks down a ton, they can go either way based on

the next move. >> and to your point, mike, affirm is almost like -- it's a double-edged sword i remember how much it rallied it moved double digit percentages when it announced that deal with amazon, and now amazon which was a key part of the conference call yesterday is very much in focus, because to your point, they did see those higher volumes, but less actual revenue coming off of those volumes. and it speaks to something we've seen play out with amazon, which is just the -- the fact it's not always a profitable business for the companies that team up also the fact that peloton, we've seen all the issues with peloton, but that's playing out for affirm it's had a long-standing buy now pay later agreement. >> we're paying attention to the mix whether it's a revenue timing issue or a revenue sharing issue with the firm. that was interesting yesterday

we're excited to be here in california a beautiful shot behind us as we await the sunrise in los angeles. super bowl 56. the bengals taking on the rams it's obviously a ten-pole event for all of media, but this year the conversation's really going to be around betting this is set to be the super bowl on sunday, the biggest legal gambling event in football history. 31.4 million americans are set to bet on sunday's game. that's up 34% from last year's game $7 billion wagered that's a 78% increase. 33 states in this country plus the district of columbia have some form of legalized gambling. it's not just feeding viewership it's not just feeding the value of sports franchises it's a huge fly wheel effect for media companies. it's feeding gambling companies and a series of executives talked about that dynamic in the last couple months

>> you know, you've got the sports betting option which really adds something material we believe to that proposition as the new younger audience wants to be a little bit more engaged in the outcome of the game >> sports wagering revenue is our leading category of growth we've already written over 50% more local sports betting revenue at this point of the fiscal year than we did across all of fiscal '21. >> we're not creating the market the market has existed far long time it's just been pushed into the illegal market there are a lot of people hungry to do it in a safe and regulated space. >> it is amazing, morgan, when you think about the generational change we're not just talking about going to a sports book in vegas or betting on the horses it's a new generation of sports fans who are looking to draw more out of the sports

experience through gambling. that's going to have an effect on, for example, just the ratings alone. the game that maybe you don't care about the outcome, but there may be metrics within the game you care about because you have money on the line >> it's true although, playing the ponies will always have a special place in my heart, and perhaps it speaks to the point that penn, win and khizrs are tracking for their best week ahead of the super bowl sunday. it's going to be fascinating to see how it plays out it does speak to the significant rebound we've seen in temples of engagement and viewership for these types of games and the fact that this media flywheel extebds out this came out on the disney call around espn and the opportunities there. >> yeah. and we're going to talk to fanduel later in the morning one element of the conversation is going to be okay, you've got a growth market, but what are the marketing costs and customer acquisition costs and how much of that is going to be painful to the extent that you need to

take share in this growing market >> right they're worrying about the profitability piece later. it's very difficult. $7.6 billion number is huge. that's obviously a gross number. a lot of people win. not everybody loses. right? so there's just a skim on top of that that everybody is fighting for that the fanduels and the draft kings are fighting for big question as to whether you can kind of wean players off of the big incentives and the promotions and new entrants in there. just willing to try to do -- and is there loyalty, really, in any of those specific acts and does anything distinguish one from the other. all those things obviously crucial. but right now -- and look, those stocks had good weeks. draft kings and penn are down huge off their highs because there was a realization of that. >> that's a good point coming up, cruiseline shares are up double digits this week amid the scaling back of pandemic related restrictions.

despite the rally, one analyst has a sell rating on a particular name. he's going to tell us all about it and carl with more on the countdown to super bowl 56 all of that is coming up when "squawk on the street" returns your record label is taking off. but so is your sound engineer. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

cruiselines may be poised for a big comeback

covid cases continue to climb with norwegian announcing guests won't have to wear masks indoors starting march 1st joining us, patrick skoals good to speak with you this week serve focussed in on the travel sector you're not necessarily thinking it's great times ahead for the cruiselines specifically relative to the stocks and where they are right? >> that's right. we certainly have seen the reopening trade kind of bounce back here, but i continue to see some structural issues remaining, especially for a company like carnival. >> and what is -- what are those particular issues that you're seeing develop in terms of bookings and things like that? >> i would say there's two things number one, i heard a couple minutes ago morgan talk about omicron not being as bad as delta.

well, it's actually been the opposite for the cruiselines where omicron as far as its impact on bookings has been far worse. so that's really dampened the booking pace of late and number two, a real challenge, especially for a mass market cruiseline like carnival is the double vaccination requirement. where what is it 60% of the population isn't fully vaccinated well, that's going to negate a lot of family cruising, especially on a mass market ship like carnival's brands >>. >> patrick, when i said that, i was referencing expedia specifically good for you to put that context with the cruising specifically the fact you have a sell rating on carnival and hold on others, what is it going to take for you to get bullish again on this industry

>> right now after we've sort of seen this reopening bounce, there's two bull cases right now for the cruiselines. one that the back half of the year will be back to normal. i definitely looking on my proprietary research, i have my doubts that third quarter will be back to normal. it's possible, but i would say it's not looking very favorable. and then also there was some positive commentaryover the past week from a number of the cruiselines reporting earnings talking about strong books for next year. that also helped lift the stocks that is absolutely true. i don't think it's really apples to apples comparison when we talk about next year because next year, if you're booking at this point, it's the high end, and exotic cruises, which, which are, in fact, doing very well. but that's only a small portion

of the business. what we're still seeing struggling is the caribbean. so i worry that the pricing cuts this year for the caribbean will bleed over into next year and continue to make it difficult for pricing power. i mean, time will tell, but i definitely don't think it's a clear sailing here, sorry about that pun there >> yeah. all right. we'll see how the summer plays through. pat patrick thank you for your time this morning >> thank you all right. well, we're going to head to break right now. and just getting a check on the futures. hovering near the plat line ahead of the open which is in about nine minutes in what has been another turbulent week, but a week in which the major averages are poised to end higher stay witush at morgan stanley, a global collective of thought leaders offers investors a broader view.

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take a look at s&p gainers this far expedia is on the list as they swing to the surprise profit s&p trying to hold gains for the weekly close last friday right around 4500. not far from current levels. the opening bell just a few moments away

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now, i think that as a world opens up, there's going to be another kind of demand shock, so to speak, so we're going to have to work really hard to keep supply there i think surge levels over long term are going to net out over a

10% to 20 % range. that's healthy for the marketplace. >> talking about driver supply interesting week on the stock. obviously after the investor day. he reiterates a buy at 25. top pick for the year. they cut their estimates on mobility they like that they're taking share on delivery. that feeds advertising >> yes, and advertising is an emerging fairly important piece of this story. kind of smallish at this point but obviously that's where you can get out of this. a little bit of a margin trap when it comes to trying to balance pricing to customers and then payouts to drivers. the stock reacted pretty well to the actual numbers that they reported and then during the guidance from the investor day, the stock backed off along with a week market people thinking the cash flow in the outyears going out a couple years is not as aggressive as they wanted to see suggesting continued kind of margin pressure and they've been in this trap for a while.

$75 a share. that's an aggressive call. this has been a stock that spent most of its history in the -- or recently anyway, in the 40s or there abouts >> yeah. the labor piece of the puzzle is fascinating. we saw the pop in the labor force participation rate in the january jobs report and you hear comments like this from the ceo of uber where driver supply that be tight it gives you some hope, i suppose, that more people are coming off the sidelines and that maybe the labor market tightness that we've seen potentially could start to ease this year. i also just think it's noteworthy, carl, the fact that uber and lyft consistently get compared to each other because of the ride sharing but in many ways they're very different companies. because uber is multinational in terms of its footprint and that it does have the delivery business we're talking about things like advertising. lyft is more carefully a ride share in north america >> yeah.

we do have the opening bell right here we have realtime exchange at the big board it's evans bank. and up at the nasdaq rain therapeutics a company focussed on oncology therapeutics we're going to tick higher as we open the big story yesterday was mostly in the bond market when yields really just took flight and that has calmed down just a bit today. not major moves but you do have the ten-year hovering right around that 2% mark. it exceeded it for a while yesterday. the two-year note i mentioned yesterday getting up toward 1 .6 it's backed off just slightly here and morgan, obviously we were not talking about the absolute levels that necessarily are that challenging over a long-term basis, but they move pretty fast in that direction. it has people on edge. >> yeah. that's right it's been a swiftness to your point, the swiftness of the move i would note gold as well is on

pace for the best week since last november. so we have been seeing all of this gyration playing out amid these rate shifts this week. just in terms of the marriage arngs right now, we're starting in the green this morning with the s&p up fractionally, 4511 is the level there. the dow is up 25 points. basically flat and the nasdaq is up about one quarter of one percent with most of the sectors in the s&p, carl, in the green this morning. led higher by, again, energy >> yeah. energy is going to be your top leading sector at the open as morgan points out. interesting week for energy. there have been a couple more estimates on how much supply might come back online if we get an iran deal i think it was the jpm desk this morning said a lot has been written about oil or at least gasoline going back to 2014 highs. but in that time median income is up 25%. kind of points to our conversation earlier in the week

about the economy waning slow, dependence on low energy costs >> absolutely. i mean, we spent most of 2011 through 2014 around the $100 a barrel mark for oil. yeah the economy much bigger. intensity, energy intensity of the economy is much lower. so those are offsets and probably one reason why i don't think it's been kind of this zero sum game where oil rallies and, therefore, the rest of the market can't do that that hasn't really been the case, but energy has just been able to outperform very comfortable in these price levels right here. there has been a line of thought, though, that if yields are surging as energy is going up, and it seems like those two pressure points are on equities, that becomes a little bit tough. nasdaq 100, i was going to point out a lot of folks talking about being a little bit of a crucial point right here you know, all the indexes have did a pretty good gain off the

january 24th lows. they've now descended back in that direction and we're sort of back at these levels where if you go much further, then it starts to bring up the retest idea if nothing else, and the nasdaq 100 is kind of worse positioned than the rest of the market. just in terms of how much damage has been done under the surface. the leadership has been kind of thinned out there a little bit so you see today, a little bit of a rescue effort as it goes up about one-third of one percent >> and if we just start to dive under or dig under the hood, i guess, within the s&p, it looks like the worst performer is under armour as we see earnings fuelled move for stocks this week under armor reporting quarterly profit of 14 cents a share that was double consensus estimates. better than expected revenue the company did say gross margins would fall by 200 basis points because of supply chain challenges and, again, when it comes to

apparel and retail, carl, those margins continue to be in focus. no argument that so many companies across so many industries are dealing with these higher costs and inflationary pressures it's how they're executing on them and that's where investors are honing in. >> yeah. i'll tell you, guys, i've lost track this week of the number of companies, mike, that have guided higher on revenue like under armor looking for five instead of three, but guiding lower on eps for the march quarter. $0.02 to 3 cents street is at 14. there's that wrinkle, and north america up 15. international up only 3. something is going on around the world. we talked about this with canada goose earlier in the week where either it's asia pack or europe just not keeping up with what appears to be a torrid american consumer >> yes without a doubt. i mean, omicron seems to have dampened things overseas a little more than it did right here consumer-wise

there was still the tail wind from some of the fiscal help that u.s. consumers got. so it has been a theme in terms of downward guides on earnings, i think the ratio of earnings warnings versus raised guidance during this earnings season, it's a bit -- it's running a bit above normal it's a little more negative than normal not profoundly so. overall estimates are kind of holding up decently well there's been a lot of play in the stocks in reaction to it it's been like a 4% point average when it misses and only a modest gain so far this earnings season. iron oar, steel producer steel prices were one of the areas in the commodity industrial complex that did not have a good fourth quarter that's been a little bit of a hiccup that stock as you can see, sort of struggling a little bit at the outset

>> so many of these industrial commodities hinge on china, and we know the situation in china kind of going back to the point that carol made, has been different than the u.s and even while we see fed officials and monetary policy tightening or poised to tighten in the u.s., it's actually different scenario in china and of course, the housing issues which tie back to infrastructure which tie to commodities like steel. nonetheless, you have seen aluminum at multi-year highs and topper with a bounce this week as well. another name i'm watching just to go back to earnings is newel brands that's one of the best performers in the s&p this morning as well. that topped estimates. you had inflation pressuring gross margins, but they were able to offset the costs which helped operating margins come in ahead of street expectations it wasn't the strongest report just in terms of again some of the inflationary pressures, but that stock is popping about 7% right now. >> yeah. and so many of the stocks are getting the benefit of the

doubt. at times when it seems like they have a little bit of the margin story under control. and the stocks have been hit pretty hard. again, a stock that was trading at about 20-something percent discount to the all-time high. a tremendous number of names in the market that are like that. affirm we did talk about earlier. it did open up down about 11%. so it's going to be a lot of questions. we're talking to the ceo later this morning but a lot of questions there just about -- the longer-term opportunity as the buy now pay later market gets more crowded and they have to struggle with how much they're earning also, i think one thing that's happened in this whole kind of reckoning for high growth stocks is fin tech. there's a realization that just -- it's not clear how much room there is with all the capital having been invested it's like a thin layer of a toll keeper in the mix. and i do know there was an

upgrade of square today that people were saying that's been punished a little bit too much on the idea that apple might come in and take some of that small business transaction-based activity away saying that's been overdone some of the parts argument for square, it is up 5% this morning to about 114 still, 60% off the highs >> it's interesting. you know, on both of the names, it's really been a story to have gmv guidance that's one of the reason affirm had notes. but credit dlin quincys. are the credit -- i want to get you quickly on financials. because they're lagging today. i wonder if that's a function of i don't know the 210 spread down to 39 basis points you have to go back to august of 2020 to see it that thin >> yeah. that's absolutely pressure -- i mean, the absolute yield level as well has -- it has an effect

there. that's getting a little bit dampened financials were an outperformer yesterday. so it's not as if they really got taken down quite as much as the rest of the market yesterday. but yeah, it's -- that spread getting almost alarmingly low i think at this point. maybe arguably an overshoot as well because the short rates are really building in an aggressive fed scenario that the majority of fed officials have not endorsed and are not on board with, but we have to see how the discourse goes i want to mention, morgan, the upgrade of square was from bank of america this morning. >> i want to shift attention to a name that is not publicly traded but is watched closely. it's one of the most valuable companies within the private market that's elon musk's other company, spacex. elon musk from texas in an event last night giving his first update on spacex's multibillion dollar mega rocket system star ship this is how musk plans to

collinize mars, and it is an ambitious system for which he laid out the economic argument around how he's going to be able to colonize mars >> how do we do this how do we make life multiplanetary what's the first step? the holy grail breakthrough that's needed is a rapid and completely reusable rocket system this has never been accomplished before and there's a lot of people for the longest time thought this was not possible now, with falcon 9, we've been able to show that you can have reuse of a boost and the ferry >> this system is under development in texas, south texas as i mentioned musk gave this presentation standing in front of one of these fully stacked starship

rocket systems which are just enormous they stand almost 40 stories tall very ambitious production cadence expected for this rocket and a very ambitious, which it's going to take time and tests, very ambitious plan to be able to reuse these rocket systems, too. he wants to see us get to the point where a starship can b relaunched three times a day and that the boosters that come back and reland at the star base base can basically fly once every hour if necessary. it says if we can get to that type of cadence in the next two or three years, he's targeting as little as $10 million per launch for star ship, and carl, just to put that in perspective, the fall ton 9 workhorse which is not as powerful as this currently launches for about upwards of $30 million this is a very major shift, if he can pull it off in terms of space flight >> incredible.

i mean, the economics change completely if you don't throw away tens of millions of dollars every time that's amazing guys, relatively -- s&p is up a point let's get to bob >> good morning, carl. great seeing you out there two to one advancing to the declining stocks it all seems tentative the inflation outlook still a real problem look at the sectors. tech is flattish right now energy is the market leader but has been for a while industrials a little bit on the flatter side banks are down that's two days in a row the banks are down it's following a three-week up trend. there's nothing really that's getting broken right now at this point. i think the key question is where are we on the inflation story? we have inflation at 7%. the fed funds rate is at 0% to a quarter percent. there's a lot of crazy scenarios out there. what the bulls want is some indication that inflation is peaking in the first half of the

year they're not getting a lot of help from corporate america because they don't know yet. so you heard morgan talking about under armor. they had revenues raised but the margins for the current quarter are lower because of higher shipping costs they didn't give any clear indication when they thought it was going to go away good year tire was similar they talked about inflationary pressures persisting over the next several quarters. they kind of left it there again, you see the bulls want to believe first half is the peak, but we don't have any hard evidence of that we're just data dependent. that's frustrating and why you get a lot of this volatility in the market we just don't have enough data to make a clear determination. meantime, what we do know about corporate america, they've got cash more cash than they've ever seen before last week i told you that dividends were at a record now buybacks are at a new record corporate america is flush with cash here's the problem with buybacks oftentimes these buybacks don't reduce share count which is what

you care about they don't reduce it because they give new options on the front end. it's a hamster wheel also the buying is indifferent to the prices. warren buffett has been mad about this for years corporations keep mechanically buying and there's often a lot of better ways to spend that cash if you look at what's happening, most of the corporate america's cash is going to buybacks. about 40% of the cash flow goes to buybacks. about 30% goes to capital expenditures that's investing in the company. and about 22% goes to dividends. so you can see a wide range here, but a lot of people are debating whether buybacks are really worth it. look what happened to meta, facebook, they bought back $20 billion in stock in the fourth quarter. most of it was in december that was when the price was 306 to 346, and look, it's around 228 today. billions of dollars got eviscerated that they bought back in december over one night in january after their earnings. a lot of people said maybe they

should have been more opportunistic. some big companies are reducing their shares outstanding buyback monsters like oracle, sea gate and qualcomm. all other things going, they made the earnings look better 35% without doing much of anything some people call it financial engineering. carl, back to you. >> bob, thank you so much. when we come back, of course, it is super bowl weekend. you're going to hear what some of the sports names you know are saying about crypto. don't go anywhere.

athletes, actors have jumped into crypto in terms of

sponsorships and deals and even taking salary in bitcoin our recent moves in the space leaving some second guessing jane wells caught up with some nfl players here at the super bowl >> i think salona is going to be huge in the years to come. >> i've been looking into the nft space. >> we're getting more and more into the crypto. >> i have probably over 32 or 33 different cryptos. >> i like to think i'm doing it the right way. >> odell beckham has taken his salary in kcrypto. >> what did you pay him in >> i think bitcoin >> the richest people in the world are talking about it and talking about having a certain portion of their portfolio to reflect that >> reporter: are you >> yes >> reporter: can i ask which currency

>> no. >> pretty remarkable, morgan, whether it's athletes, mayors of major american cities, actors and celebrities. that compensation structure is changing across the board. >> it's fascinating and reminds me of what's playing out in europe with the soccer players and teams issuing their fascina. it reminds me of what is playing out in europe with all of the soccer players and soccer teams that are issuing their own coins so you are seeing these similar scenarios play out in the crypto space in job in sports across the board and of course, we know, carl, how big nfts have gotten in terms of sports, too, so you have to think that this is just an area where it continues to see early adoption and growth for better or worse. >> yes, mike, i mean - >> i was going to say -- >> one way to read sentiment about the space. >> that's the issue, right it's hard to separate from, nfts, linkages with the

collectibles and monetizing your brand and image and i think anybody with a huge social media presence, it is almost irresistible to become a promoter of crypto because those things accelerate, one against the other and i don't know if it is a key to mass adoption or a little bit trendy at this point. so we'll have to see, and getting paid in crypto, whether that's real or not, hasn't always worked out for all of those players, unfortunately meantime, coming up, we head north to the border, where a truck blockade has all but haltedraicn tff itwo of the busiest routes linking the u.s. and canada and already starting to hurt auto plants nationwide we'll be right back.

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welcome back to "squawk on the street," truckers protesting vaccine mandates, automakers are forced to cut production on both sides of the boarder >> entering day five now of trucking protesters blocking ambassador bridge, and we have exits like this one right behind me here in detroit completely blocked off. it is pretty much a ghost town one truck that is driving by, it

is incredibly quiet around here, and this bridge is massive, it accounts for over 25% of all trade between the united states and canada and i caught up with one trucker, curt fairfield, who picks up auto parts from the big three, here in detroit, and he said he's definitely noticing the impact of the blockade listen in. >> my truck is not as full today, actually for the last three days, as it is, but before all this took place, i was full coming back every day. >> well, the he makes thousands of trips, the trucks make thousands of trips every day, and according to the anderson economic group in michigan, they're anticipating or estimates $51 million in lost wages just this week alone so of course, this is putting a strain on the economy. and let's start with the auto manufacturers, just moments ago, we found that toyota just

announced that toyota engine plant in west virginia, as well as alabama, is now affected by the blockade gm had three ships that were canceled in lansing, michigan, up and running today but had to chart area cargo plane to bring in parts that were stuck at the border we're seeing issues with the plants in ontario for honda that makes civics, so you could see some delays there. ford is in the same boat, so you have all of these large automakers that are definitely feeling the financial impact listen in. >> the longer it persists, the more difficult it's going to be, to make up for any lost production >> and pretty much across the board, we have automakers that rely on just in time supplies. so they don't want to hold inventory. but with this massive bridge blocked, that means they're not getting their goods in time. you have the canadian government here, also in ontario, that has filed an injunction, they're going to have a hearing at noon today, and they have said on the canadian side, they are prepared

to physically remove all the protesters if needed, but of course, they definitely need to get that injunction in order protesters will continue and it is spreading across the world. back over to you guys. >> we are definitely watching that blockade as a tool of protest. especially here in los angeles on this super bowl weekend thanks, christina. when we come back, expedia's chief on earnings and bookings in t wheeak of omicron and fanduel as we countdown to super bowl sunday.

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good friday morning. welcome to another hour of "squawk on the street," i'm carl quintanilla outside so-fi stadium in california, morgan brennan, mike santoli on the east coast, david faber has the morning off. markets have been thrown around a bit like a rag doll this week but for the moment, trying to put a little polish on the week. consumer sentiment comes out let's get to rick santelli >> we are looking for a february preliminary read on the university of michigan sentiment expecting the number around 72 not to happen.

68.5 and this obviously is a bit of a disappointment, and if we look at the expectations, well, expectations 57.4, also a big miss, following 64.1, and if we look at the, i'm sorry, i'm sorry, that was current conditions at 68.5, my apology and on the one-year inflation rate, this is where it really gets interesting, it's 5%. we had a couple of 4.9s, and the 4.9s were 14-year highs and the 5% level, well, we have to continue to comp 2008 and that comp is 5.1. 5 to 10-year inflation, carl, 3.1%, we've had several of those, 3.1 is a high going back to 2011, we'll call it 11 years. so as we look at university of michigan, of course, we want to continue to monitor all that as interest rates after yesterday's

energized traders, and some of the comments made by fed officials, here we are, hovering at a very not surprising 2%, my guess is, we're probably destined to spend some consolidation time at this level. morgan, back to you. >> rick santelli, thank you. we are 30 minutes into the trading session. three big movers we're watching. starting with zillow, shares surging, the stock isdown more than 70% over the last year of trading, currently up right now about 7.5% don't miss the exclusive with rich bart on coming up on tech check. and astra, after the rocket builder latest mission failed to reach orbit, we will have a lot more on space, later this hour, but the shares are down another 13, almost 14% this morning. and we will end with expedia, topping earnings expectations as travel stocks continue to rally amid easing mask mandates. we will discuss with the ceo

peter kern coming up in just a few short minutes. mike reporting by cnbc, raising questions about whether markets may have gone too far in interpreting hawkish comments yesterday from st. louis fed president, the senior economics reporter steve liesman has all of that for us steve? >> mike, hats off to you, you were on this idea yesterday, in the afternoon, but reporting by cnbc, finding several federal reserve officials privately and publicly pushing back to jim with super-sized rate hikes and instead suggesting the fed is going to embark on a more measured rate hike path and markets may have wrongly interpreted the remarks by bullard as maintained by other fed officials. they don't support outright or skeptical for the need of a a basis points rate hike in march which the market priced in after bullard's comments

atlanta fed president telling cnbc yesterday, we reached out to him, after the inflation report, he said quote my views have not changed for three or four rate hikes this year, likely beginning with a 25 basis points hike. he didn't rule out 50 ever but that was the same view he gave cnbc on wednesday, before the hot inflation report richmond fed president tom barkan says i would have to be convinced of the need for a 50 basis points rate hike saying there may be a time for now but it does not appear to be now judging by his remarks, and cnbc officials, they are looking for a bad inflation numbers and the january report was not substantially worse than already expected and improvement is not expected in mid year and the san francisco fed president mary daly joined in saying 50 biasis points, quote, not my preference. five weeks before the meeting. of course, the situation could change fed officials could change their minds, too but key officials right now even after the inflation report

continue to hold the outlook for measured fed tightening. >> measured. we will continue to hold on to that word as well. steve liesman, thank you for more on the markets and inflation let's bring in rockefeller global family office cio, jimmy, thanks for joining us this morning. i want to get your thoughts on that and some of the messaging out of the fed right now and that maybe there is a little bit of disconnect between the commentary, and what the market is pricing in, and how investors should navigate. >> thanks for having me on the show i think the federal officials are also grappling with the issue, we still have one more inflation reading, before the march meeting, and i think they've realized they're behind the curve, but you know, at the same time, they don't want to acknowledge that they've made a policy mistake and a 50 basis points hike would send a signal that they're perhaps panicking a bit, acknowledging there's a problem in the space, and it is a close

call and i think with the market now pricing in a potential for a 50 basis points hike, they do have to a free pass to do so at the march meeting, without seriously rattling the marks >> so from the investor standpoint, when we talk about don't fight the fed, how does that play out, and how are you putting money to work, i guess based on your interpretation of that >> yes, so if you look at the last three years, we've had three consecutive years of double digit gains, for major indices. the s&p 500, we turned 100% cumulatively, in total returns over the last three years. and the earnings, only grew 28% cumulatively, during those three years. so you came from mostly p expansion and that's where we see an extremely accommodative fed policy and now that the fed is reversing this trend, i think potentially it is going to be a choppy yer environment, so i think investors will begin to be more defensive and think more about risk management, rather than swinging for the fence. >> jimmy, how does defense look in this context?

i mean obviously, past fed tightening cycles when they started, yes there has been more choppiness typically but usually the market does work its way through them and meanwhile, we have right here a time where investors seem to be very hesitant to buy bonds, to own bonds, as rates are going up, so if you're running a full portfolio, how would you turn it more defensive and does that include perhaps packing in to bonds as yields go higher >> you raised a really good point. this is a really unusual environment, because in the past, usually when equities come under some pressure, the treasury tends to rally. and so you have a hedge portfolio. but this year may wind up something closer to 1994, with bond yields rising along with equities under pressure. so that makes it very difficult to play defense. i would say if appropriate, and if investors can get exposure to

well-managed long/short equity strategy, that will be a way to allow you to go on the offense when the markets are going through a difficult period, by being net short. on the other hand, you know, we think equities, we want to stick with the longer, well the shorter duration equities rather than longer duration equities, meaning a shift from wealthier part of the market, into more valuable, more cyclical stocks which will give you a fighting chance >> and what about global markets, because you know, they actually have outperformed modestly the u.s., so far this year, they do have more of a value, perhaps less weighting in those secular growth type companies, that you would call long duration. >> on a relative basis, international stocks look more attractive this year, on two trends one is the dollar it is likely to peak around the typing of the

first rate hike, so a weakening dollar later in the year will favor international investment the second thing is many of the international markets that have already started the tightening cycle, so this time around, the fed is actually behind many other central banks. and at some point, the ecb will need to play catch-up and that potentially opens up the opportunity with, you know, for example, european banks as well. >> so what would give you the sense that this bull market thesis is not still intact what would change the way you're approaching the market right now as we do enter this fed tightening cycle, amid a global tightening cycle for the most part >> yeah, i think the economy is still doing well, so this is the rate between earnings growth and p/e contraction and we will see to what degree will the p/e contract, but overall my guidepost remains a 2 and 10-year yield curve. if that curve inverts at some

point, that will be the signal to get very defensive. as long as we have a positive yield curve, i would think that this bull market remains intact. >> jimmy, thanks for joining us today. meantime ahead of super bowl lvi, the nfl is dealing with big issues centered around the league's diversity efforts joining us in front of this beautiful backdrop, jane wells with more of the state of the league >> it's so good to see somebody from cnbc in person. hi, carl hanging over the game is issues with the league, with the owners, and the business as usual, has to change, and especially after ex-miami dolphins coach brian flores filed a lawsuit which says among other things paying lip service to diversity and something that players and even executives are talking about. >> i think that they're making progress and strides, and

obviously the brian flores thing is something that you hate to see. >> i know there are plenty of credible african american men that are incredible leaders, and they're not getting the right opportunity. >> we have an unbelievable defensive coordinator, rahim morris and when you look at him only getting one head coaching interview this year when other defensive coordinators with far worse resumes this year got multiple interviews, you can tell the process isn't working the way it should. >> and moving from black coaches to black owners, byron allen is interested in buying the denver broncos and the league is reportedly begging robert f. smith to give it a shot. under the nfl rule, the primary owner would need to put in 30% of the money and $3.57 billion, so we're talking over a billion, carl and commissioner goodell says he is working with these guys trying to explain to them the financing and rules of ownership which i don't know if the rooney rule is part of the rules of ownership anymore we'll see. >> interesting

i wonder if you think, how this conversation about diversity at the higher levels of the coaching staff ends, would a couple of high profile hires end that conversation? or is it part of this lurching back and forth of doing enough, doing not enough >> i think we find that a lot, not only in the nfl, two steps forward and one step back and during the news conference this week, he said he took personal responsibility for the fact over the 15, 16-year tenure, we're still here, and we're still having these conversations >> yes meantime, is there a sense that flores timed the suit to embarrass the league on its biggest weekend? or is it more a function of seasonality? >> i think, you know, i don't know, you have to ask him that, i do think though, he took a huge risk filing this lawsuit. and it's something the players union talked about, that there are people in the history of sports who have taken huge risks willing to maybe never work

again, to make a statement, and that may be what happens with him. >> meantime, as far as los angeles goes, last time we hosted here, rose bowl, right? it's been a long time. it's been decades. >> i remember that i have to say, the problem with the rams is that over the last quarter century, a generation has grown up, becoming fans of other teams in other cities and you'll see that when you come to the games here, the jerseys will sometimes be from the other teams and so what they have to do is coming to the super bowl twice, in four years, certainly helps, and winning the vince lombardi trophy will definitely help this $5 billion stadium most certainly helps, although the rams tell me, when i asked kevin, he said not in my lifetime >> i'm not sure camera does it justice by the way it reminds me of an olympic park. >> not only is it so beautiful, you have to go inside. it is the most, there is not a bad seat in the house.

it's a perfect combination of being covered from the side with airflow going through. i think the food could be better well, i sit in the cheap seats >> i'll be sure to get right to work on that. >> so good to see you again in person let's do this more often. >> jane wells. as we go to break, take a look at the road map for the rest of the hour here in los angeles, including a lot more on super bowl lvi we'll talk to the ceo of fanduel, more than 31 million americans expected to bet on the game this weekend. plus travel stocks leading the s&p this week, as expedia tops street expectations, the ceo peter kern will join us first on cnbc. and elon musk giving us an update on space-x's highly anticipated starship, the first update in two years, the details, a lot more "squawk on the street" straight ahead, don't go anywhe,iter wh a mixed picture, for the major averages.

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expedia shares are up, after topping expectations, up 2% near the open joining us first on cnbc is the expedia ceo peter kern. >> peter, welcome back >> thanks, good to be here >> you had an interesting earnings call, where you made a distinction that i wanted to point out, you talk about how the effect of omicron on your results was less been consumers

fearing covid and more around the lockdowns and flight cancellation that we saw in december does that tell you that consumers' perception around covid is changing? what does that tell us about the broader recovery in travel >> yeah, i think what we observed is that most of the disruption was a function of people not being able to get where they were as opposed to people being afraid to travel. there were obviously border issues, with traveling internationally, and therewere lots of planes out because of crews being sick, and so i think we observed something quite different than some of the last waves which is where people were actually nervous about traveling. i think what we've seen is as omicron passed so quickly, and trends have come up again, it's pretty clear that people are not afraid to travel, they're not concerned about their health, obviously omicron has been more mild, thankfully so i think, you know, people respond accordingly, and we're seeing a lot of demand, and i think as the disruptions go forward, assuming covid doesn't

get worse, i think people have basically become accustomed to the danger and the risk and they are comfortable with it and we're reaching a new stage of covid and travel and covid. >> you said that trends are improving in recent weeks, you can expand on that is that search activity, actual bookings pricings and in the face of surging inflation and higher interest rates, coot recovery in travel be short-lived >> i doubt it. i mean there's a huge pent-up demand for travel, and what we've observed over the last few years is people spent a lot of money on things, and underspent travel,of course, because they couldn't travel, and i expect that there will be a reversal in that, that people will have plenty of capital and saved a lot of money over covid and they haven't been able to travel as much so we think travel will be fine. in terms of booking trends, we commented yesterday that february, we're in positive territory, in bookings for lodging, obviously, it's a geographical story, it's a line

of business story, air is still tougher, corporate travel is still tougher, apac and emea, excuse me, emea is fine, latin am is still trailing, a little bit of a story but in western europe and the u.s. and north america, we are seeing a strong, strong recovery post-omicron wave, and i expect that will hold, we'll probably see more waves but i think the world will deal with them much more modestly than before. >> just to touch on that geographically speaking, where you are seeing the demand, it is still mostly leisure, right? a leisure-led recovery, beaches, mountains, what about big cities, yes, have been impacted by the lack of business travel, but now, a resurgence in crime i'm here in l.a., something that has certainly captivated the business, and elevated security at hotels. how has that affected demand for travel >> yeah, i think what we've seen so far is that when borders open up, you know, we saw it in the u.k., which was an early omicron

but then we came out of it earlier, we see searches for international cities out of the u.k. rise dramatically and the same thing for the u.s. when international is open so i think we'll see that come back, and you know, we're starting now to finally see businesses opening up, the banks in new york have gone back to work and other companies will go back to work, we will go back to work, so i think cities will, you know, reignite, i think travel to cities will reignite and the more theaters are open and travel and museums and new york and europe et cetera and restaurants are open, i think the summer will boom. >> and it is morgan. in terms of lodging, with short term rentals, we'll continue to see strength as we see this recovery continue. >> yes, we expect to continue to see strength for us. it has been obviously a great product during covid, people like it, people have felt safe, have vrbo, but i think it has

introduced people to a new experience and for that, ithin it has helped accelerate short-term rentals for when you travel, particularly for leisure, with a group of people. that said, i think the next move of recovery will be largely in hotels which has lagged and in big cities, it suggests so i think what we will see is the next move of recover goes to big city, goes to strninternationall and goes toward owe hotels and presumably we'll see international air travel and those are the laggards and corporate, as everybody mentioned, as we come back to the office, as we start traveling, i'm traveling around, i plan to see our offices all over the globe in the next several months, so i think we'll see more of that, and i think that's coming, and it will lag, but i think corporate will come, too. >> what inspired you to run a super bowl ad for the first time in a decade this weekend, it is a 30 second hit, and what do you see as the return on investment, peter? >> as you know, we're

reorganizing how we think about our brands and we moved in a sort of house of brands strategy and part of that is relaunching the proposition. we don't think that we've done the greatest job of conveying the consumer proposition of our best brands, and so we have a plan, it's not just the super bowl plan, it's a plan that will take this year, and many years forward, and we have a strategy around what is, delivering what the proposition is to travelers, so they understand it, and that goes across brands, and social, in the performance marketing and everything else, so the super bowl is obviously a great place to get a lot of eyeball, we think we have a great message to deliver, and so we're going to deliver it there and keep delivering it throughout the year. >> another potential existential risk, the metaverse is certainly a big topic of discussion on the west coast more people dialing into the virtual world. do you see that as a competitive threat, peter? and you have two innovation labs, seattle, lab, is this an area that you may invest in? >> i don't see it as a competitive threat we're certainly, like everybody else in the world sort of

intrigued by it, trying to figure out what it means and i've heard lots of different opinions about the value of real estate, nfts, things in the metaverse, et cetera, but we're pretty much about the real-verse, and people moving around and experiencing the same thing and i don't think the meta-verse in my lifetime will make up for being in paris, being in rome, being in a national park. there's just no replacement for that those experiences are what change our lives, and i don't think that's the same with a headset on, on your couch. so maybe i'll be wrong, maybe in 100 years, we'll all be, you know, batteries and sitting around with headsets on but i think for the foreseeable future we feel pretty good about people wanting to be out in the world. >> and taking a trip to london or bali. thanks for joining us today, peter kern, ceo of expedia. >> i like that real-verse. as we head to break, among the earnings numbers to watch today, a number of them, under

armour is lowered by a beat on the top and bottom lines, as the company sees gross margins coming under pressure due to the flag ship issue. shares down 10%. goodyear is on pace for the worst day since october 2020, that company also beat on earnings but says it expects fliory pssinatnareures to persist over the next several quarters down 20% so much more stay with us competition beat us again. how? they have a better finance system than we do. i feel like they might have a better finance system than we do. workday. how do they make better decisions faster? workday. it's got to be something

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looking at the pot stocks, nj on the marijuana, mj on the marijuana etf, down 50% from a year away level, tilray, canopy growth and aurora, aurora with better than expected cannabis sales during the latest quarter, the first time it beat analyst estimates in more than a year, the stock erasing earlier losses, but still down more anth

13% year to date and we're going to take a quick break. s&p 500 just a few points above the flat line. don't go away.

welcome back here's your cnbc news update at this hour. president biden signs an executive order this morning that could free up $3.5 billion for humanitarian relief in afghanistan. another 3.5 billion would be available for 9/11 victims who have been suing the taliban. the money is coming from a pool of $7 billion that had been deposited in the u.s., by afghanistan central bank, the biden administration froze those assets when the taliban took over last year. as u.s. troops arrive in romania, president biden will be discussing the crisis with america's allies about, 30 minutes from now, he is scheduled to hold, with all of the leaders of canada, the european union, france, germany, italy, nato, poland, romania and the u.k. and the mayor of windsor,

ontario, going to court later today, he wants an injunction against the truckers who are blocking the bridge that connects his city to detroit the protest against covid rules is forcing some automakers to cut back on production, due to a shortage of parts. probably the last thing that automakers need is to have another issue in the supply chain. >> for sure, as they're trying to catch up on production. thank you very much. turning back to the broader market, we are about an hour into trading, the dow up 170, the s&p 500 up about 11 points right now. and slightly higher for the week joining us now is jpmorgan asset management phil, and barclay's chief economist, michael, good morning, i would love for you first to kind of weigh in on what your outlook is for the fed, just how much you feel as if what we've seen from inflation, what we've heard from st. louis fed president jim bullard has altered your view how aggressive the tightening

might be this year. >> sure. first of all, thank you for having me on we certainly think the fed is not in a mood to skip a meeting so we think they will have a succession of policy actions and we think they raise the funds 25 basis points, in each of the march, may, and june meetings, we think they announce balance sheet runoff at the june meeting, so it does seem like they neat need to get going and i think front loading a policy response makes a lot of sense to me and from my perspective i don't think a 50 basis points hike is needed certainly the markets have opened a door for that and the committee will debate whether or not they should walk through it. but i think that is probably too aggressive and may be a little viewed, views as a little panicky at this point, so i think they need to get moving and they need to be regular, and i don't think they need to come out of the gate with a large 50 basis points increase. >> and obviously, we're going to get more numbers before there is a meeting, a policy meeting, but do you think that the way that the market is positioned right now, michael, it makes it tough for them to just kind of leave

the uncertainty out there, in terms of just how many hikes they might be looking at >> absolutely. i think the fed historically will surprise on cuts. but they don't like to surprise on hikes so if the market is pricing in 50 and the fed does not want to do that, then i do think they need to come out and message a bit here, and kind of guide market expectations. so yes, if i were the fed, and i thought i'm going to be moving 25 basis points, in march, i would not be happy with where pricing is, and i try and walk that back a bit. >> now, i want to get your thoughts on this what do you think the fed does, over the coming months, how aggressive are they, what does this mean for markets? >> good morning and thanks for having me. so speaking of panicking, the traditional balance fund is broken right now you have the s&p down about 3, and the core bond index, the bloomberg aggregate down 4, right, so this is a time where that creates chaos and kind of deer in the headlights for folks. a couple of things, this is not a growth scare, okay

i think if you see things like banks, and airlines, and cruise lines, and energy, and materials doing well, that's a pretty good sign also, i agree with ichael's point. there is a reason why the fed hasn't done a a basis points hike in over -- 50 basis points hike in over 20 years, it's because they tend to move very, very slowly on the way up, so up an escalator and down in an elevator and i remember october 2018 when the same chair powell said we're far away from the neutral rate and he sounded very, very hawkish, they did one hike after that, and paused in january, and we're easing by july that being said, we don't expect that, with the data the fed has right now, we think that they'll take the option of having six rate hikes priced in, but it's about being active here, so i think the answer is, reduce your stock overweight, but stay overweight is a fundamental story, that is still strong, and really look for the earnings, i think that's really what we're trying to do with active stock picking, but because the range of outcomes have increased by so much on the monetary policy

side, just take a little risk. >> u.s. still the place to be though in terms of how investors are positioned or you are looking elsewhere? >> it's 14 years in a row, i have been on your show talking about global diversification for a long time, and at this point, we are very, very close to a neutral on the u.s. and i think that in a way, an ode to two things, one, the fact that non-u.s. investing makes sense from a fundamental standpoint right now, it is awesome that the ecb is talking about raising rates, there are a lot of people that thought negative interest rate policy is a bad idea and now they have a chance with the 4% inflation rate to try to get out of that. and one central bank that is not worried about inflation which is china, they're easing and equities are up a percent and we're emerging markets so we have taken down u.s. in favor of non-u.s. which is certainly worth looking into. >> mike, granted this is not really a critical situation in terms of near term growth

outlook given where consumers are positioned and all the rest, but the consumer sentiment number this morning, that included high expectations for inflation, and weak expectations, for, you know, consumer, kind of condition, and is that a concern in any respect? or is that just kind of a mood indicator, and not a leading one, about economic activity >> i think it's a little more about mood, but what i will say is we do expect the growth outlook to be pretty good this year we're at 2.9, q4, and in the compensation of that, it is in inventory build and a little bit of rebalancing and trade and what we're expecting out of consumers and businesses is quite softer than a year ago so i think there is part truth in that number i think some of it is inflation kind of crimping real purchasing power at the moment, but we expect things will work out, the labor market is pretty strong, the labor market income is pretty solid, and we think that will hold the day in the long run. >> all right

and yes, we get down towards 2.9% growth, let's hope that inflation is tracking lower as well michael, phil, good to talk to you this morning. >> thank you >> thank you. coming up, after the break, we're going to talk to the ceo of fanduel, americans expected to bet a record $7.6 billion on the super bowl this weekend. but first, during february, we are celebrating black history month, featuring some of our cnbc contributors. here is a cnbc contributor with what is believed to be done to empower the black community financially. >> how can our country help empower the black community financially? that literally is the trillion dollar question. i think the same legislative and institutional powers that were put in place to create barriers to entry will be need to be used to trade on those same barriers and there needs to be specific attention on things like access to capital, funding of black vcs, lending practices and gerrymandering in terms of

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welcome back we're live outside so-fi stadium ahead of super bowl lvi, sports betting a big thing this year now legal in 30 states and we're joined by fanduel ceo amy howe and great to have you with us. good morning >> great to be here. thank you. >> people are talking about this weekend as sort of a generational moment, in the evan lusion of the industry >> yes >> it really is. i mean, you know, if you think about this, the super bowl, this is the largest sports betting event in history this year, we expect 7 million bets on the platform, 50% of those are likely to be player cross, and not just the outcome of the game, but everyone has skin in the game and who sur favorite mvp and who will win the coin toss, so it is a monumental moment in time for the industry. >> we were talking a bit during

the break, in the early days of i guess then we called it daily fantasy largely but the thinking you wanted lots of games an lots of repetitions and it would lead to baseball and basketball where you have more chances to play but what do you think about football, the one thing that remains all powerful, what do you think remains all powerful, do you think >> the think the great thing about sports betting, i think the viewers view it as a form of entertainment. if you look at the nfl specifically, it is the biggest acquisition driver and why such an important moment for our company. and 40% of my new actives come from the nfl, and you know, you see why, we have, with sportsbook, we have over 550 different betting markets for the super bowl this year and there is something for everyone. >> let's talk about new customer acquisitions and the incentives and the marketing spend, and when you're offered, what seems like a great oftentimes is a great offer, to start playing, is that a blanket incentive, that goes out to many people, or is it all tailored to what you

think you might know about that one individual user? >> well, if you take the super bowl, so for me, if you're lucky enough to be in one of the sports team legalized states that weparticipate in, it's a great 56 to 1 odds to betting $5 you get $281 in cash back if your team wins so that is for users, any user on the platform, we have a risk-free same day parlay, which is los angeles, the home of the parlay for many years and one of the most popular products we have in the nfl. >> so amy, looking back at the east coast, if you're talking about promotional spend, can you lower what you spend on the super bowl though, compared to other sporting events, because let's face it, it is a big draw, if you're ever going to bet on a sporting event, this is likely the one you're going to bet on >> we're always fluctuating our promotions, and you know, there is a lot of science and data

that goes into how we set those, obviously for the super bowl, it's the biggest sporting event for the year and so we're going to be a bit more generous during that, and you know, we're always looking at one of the things that we're very mindful of is how much is it costing us to acquire those customers, relative to the value, and we feel like we've done a very good job of getting that equation right over time, but super excited, it is a great promotion for the super bowl >> it is exciting for all of the operator, the number of americans who are expected to wager, the amount that is expected to come in, but we call big problems, not just for fanduel but across operators last year because of volume in part how do you manage the tech this year so that it works? >> well, it's something that we've been focused on since super bowl last year, and over the summer, we very successfully completed the migration to our own tech stock, it is a locing betting platform, and that is where the controls are, to

control our destiny but the other thing we've done, we have done a phenomenal amount of testing and if you look at the nfl this year, we had volumes almost every single week that exceeded the super bowl last year and the stability of our product was fantastic. so as we head into the weekend, we're feeling very good about the stability of our products. >> and you and carl are sitting in california, where sports betting is not legal, though the tribes have a ballot initiative for retail sports book, they have announced they are spending a boat load of money, $100 million, to counter an effort by you and some of your top competitors to try and get on the ballots as well for mobile sports betting where does that effort stand did you learn anything from the failure in florida >> california, i mean listen, if you look at the data, the american gaming association has put out a terrific report, and nearly 80% of americans want sports betting to be legalized and they want it to be regulated and that's different in the state of california, and we are

well on our way to collecting the appropriate number of signatures that we need to get on the ballot and we're working very closely, you know, through the california solutions fund, a lot of money is going to homelessness and mental health, and so we're very optimistic that hopefully we'll see that on the ballot, and the next time the super bowl is here, in california, residents will be able to hopefully bet online >> finally, one macro question, you know, last year, the last couple of years, households couldn't go out, right had a lot of stimulus checks, you know, excess cash, and it fed the stock market in a lot of meme stocks and trading activity, does the industry sort of feed on that? and what happens if household balance sheets for example come under pressure is that less excess money to gamble with or do you think it speeds gambling, perhaps >> i don't know that there is a direct correlation what we've seen is consumer does view this as a form of entertainment. and it's really become mainstream, and i think the most

important thing is that we're educators consumers to spend responsibly within their limits, there's a lot we're doing on that topic to educate consumers to help them spend within appropriate means and it should stay as a form of entertainment, that's a big part of what we're focused on. >> you have good seats this weekend? >> good seats. >> enjoy it's going to be a lot of fun. great to see you thank you. >> thank you so much. >> amy howe of fanduel tech check this morning, two earnings interviews including the ceos of zillow up double digits on strong q3 numbers, still down 70% over the last year trade can as you know and don't miss the exclusive with the firm's max, another big mover on t hlsheee of last night, all starts at the top of the hour don't go anywhere.

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your goal is one of a month and potentially one every three days, there will be more ships, because the booster actually, even though it is gigantic, will come back in about six minutes excitement guaranteed. >> that was elon musk from

space-x star base facility in south texas last night, giving his first update on the highly anticipated star ship in over two years. musk spoke for over an hour about the massive rocket system that is twice as powerful as the saturn 5 that killed astronauts to the moon and capable of reaching orbit at significantly lower cost >> fast forward two or three years from now, i think it is highly likely to be everything including, less than $10 million a flight, for 100 tons, and that's low orbit. >> that is an eye-poppingly low number, and the way musk hopes to get there is through the fully reusable rapidly able to be deployed rocket system, which is something that we have yet to see be achieved, when it comes to face flight, so we see it as the holy grail keep in mind there are regulatory head winds, the first orbital test flight is hinging on aprofrlg from the faa and

musk saying last night that he hopes to get the green light in march but it is still not actually clear whether that will happen, and meantime, let me take a look at some of the publicly traded space names. those stocks are on the move this morning, a mixed picture, as you can see, rocket lab, well, just turned negative, it had been positive a bit earlier in the session, but it is seen by some analysts as a publicly traded emerging space company, and virgin galactic trader, very depressed off of the highs of last year. asterisk space though, is very much in focus, that stock is down another 11%, this morning, and it's down something like 35%, just for the week, this is after astra attempted its own launch, the first from florida yesterday, but failed to deliver four mini satellites for nasa to orbit after what's believed to be a mistimed stage separation after liftoff. astra disclosing that there's an investor lawsuit against the

company right now, as well but those shares taking a tumble, b of a downgrading to underperform that said, keep an eye out for the next episode of my podcast, by following "squawk on the street"'s podcast, the latest episode with rocket lab ceo and founder peter beck, it's already out there, and he talks about a lot of interesting things, mike, including this >> and take a look at the biggest gainers on the nasdaq 100 for the week, peloton, huge comeback, up 45% on the week micron outperforming the semi group, up 15%, some of the chinese and non-u.s. internet companies coming back as well. we'll be back in two minutes we're hoping things will pick up by q3.

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the public outcry over lawmakers is spilling over into every branch of government we have the latest on the situation. >> congress facing scrutiny for the stock trades and now the rest of government is getting swept up in this movement, too a new proposal by democratic representative katie porter and

senator kristen gillibrand would ban trading by the president and the vice president, and supreme court justices and federal reserve officials. gillibrand is one of the original authors of the stock act, the law that currently governs trading in congress and told me the scandals during the pandemic made her realize there needs to be a broader approach >> the truth is, the american people don't have faith in government right now and we want to show that across branches of, that we are creating transparency and accountability >> now rules for judges are a priority for house speaker nancy pelosi, according to a watch dog group, three supreme court justices own individual stocks and has to recuse himself in cases because of it. according to the latest, chief justice john roberts, charter communications and thermo fisher and samuel alito has the biggest portfolio, 28 companies incl including p & g and boeing and more and it is unclear if they're held by the justices

themselves or spouses or independents and they're trying to update the system to identify potential conflicts of interest and congress does into the feel like they're moving fast enough. back to you. >> not moving fast enough. it is years in the making though, right? as we've been talking about this, and i'm just curious, all of these across the board changes that are now being proposed, how quickly could they actually be implemented? and we talk about something like transparency, just how deep could that go? >> yes, so currently, the scotus filings in particular are not very detailed, they only file them once a year and they don't have to file when they actually do the trade, they only file the annual disclosure so there has been a push already in the house that would require additional details around those disclosures that pass the house, it did not pass the senate, but clearly, there is movement in both chambers now to try to get something off the ground, and maybe congress will address this before the mid term, but there are a lot of hurdles before we reach that point. >> thank you. a quick check on the markets right now, for which it is a bit of a mixed picture this friday

morning. the s&p 500 basically hugging the flat line, 4499 is the level there. and the dow is slightly higher, up 90 points right now, as is the small caps, the russ schedule 2000 but the nasdaq is under pressure around poised to end the week lower that's going to do it for us on "squawk on the street. "tech check" starts now. good friday morning. welcome to "tech check." i'm carl quintanilla today, another volatile week for tech the latest on big tech's shifting landscape a day, another day in the red and now it is time to get de-faanged and zillow shares headin