talks will continue over ukraine. that seemed to balance things. then the comments here live on "squawkbox" with jim bullard perhaps i don't know if they were more hawkish than people expected, but none the less, things reversed now off the 60 points nasdaq off about 50 points and we're looking at the s&p, as well i'll be back in new york tomorrow mike, thank you. becky, see you in the morning! "squawk on the street" begins now. good monday morning! welcome to squawk on the street. i'm david faber along with jim cramer carl has the morning off you can see, i mean, we've been kind of a little bit of a map of it already but we'll have a lower open a lower open this after last week's not great market let's get to the road map.

it starts with geopolitical head winds for stocks we saw futures are looking investors are trying to figure out what is going on with russia and ukraine and the risk there, as of course, as russia's top diplomat perhaps sees a way forward that doesn't include war. plus, jim bullard was just on he's telling cnbc unflags is broadening it was a super bowl nail biter a game-winning drive by the way, crypto dominating the big game ad strategy. >> yeah. >> let's start with the new week for the markets. of course, you were off last week it doesn't mean you're not aware. >> you're doing your broadcast. >> i was able to take a few days off, as well they were rough days, to a certain extent. >> very. >> continued concern about the possibility of hostilities between russia and ukraine and what it would mean for worldwide energy prices. you have the continued concern about inflation. we had bullard on.

we'll get to that. what do you think? >> i think we're trying to digest a lot of bad news there's bullard saying excellent interview saying basically the same thing he said. >> all right to me it's kind of like trying to get the people who are unaware aware and let them get out this morning it looked like ukraine imminent but germans coming to ukraine. it's not imminent. this whole -- >> we have lavrov saying some things you can believe are positive for the possibility of diplomatic settlement. i don't know what words you want to use but avoid hostilities. >> i was trying to come up with a scenario how many people would be hurt. united health was the only one and it shows you, once again, the worry is that you can't earn

anything international because there will be problems i listened to the ceo david calhoun this morning we heard that boeing needs to -- they've been working since 2014 to build inventory they're in good shape. i like this as a metaphor. we're shadow boxing. what are we afraid of in the united states other than looking bad? isn't oil about as high as it'll get? i'm saying we're working russia in the situation we're working inflation in the situation. and either turns out to be okay, we'll report them out. >> right will tell you, you're asking the hedge fund managers and other asset managers to focus on things that many are not familiar with. not that broad asset managers aren't familiar with the fed

you know, the balance sheet of the fed. they don't usually care about this but the difficulty that many asset managers had so far this year six weeks into the year or so because of the volatility and figuring these things out it's beyond their typical ability bs, in some way. when you're down 10 or 15% for the year, you still have to figure it out. even if you can't. >> i'm looking at a list of pretty much all the great hedge funds i managed to get the only one of these major ones that is up is the energy fund. >> right. >> i mean, david, this is you

hire these people. they huge amount of money to go the opposite saying we're betting the market will be weak. these people are long things. >> yes. >> last year was not particularly a great year for those who run hedge funds. down and/or flat for the year. it's hard to hedge now because volatility is coming at you different ways for different reasons? right. >> can't some of the people -- >> and, you know, you have a bunch of funds that are all on, you know, on four week return windows. by the way, you know that world. it's a long time since you ran a hedge fund. >> i would never be in a situation -- >> yeah. you have money from the swiss, for example, and it's like here is the fun what are your returns? we'll pull it's a great way to make a living it's not a great way. >> they go long short s&p.

they're like true i don't want to call them chairman tans but i'm saying for you give them money and generating the same return but add a big thing, that's bad business. why does it continue to attract? >> part of the so-called mosaic. i remember going to some colleges for speaking to the trustees about why they should give money to me i had a theory about stock picking. all they wanted to see was what quadrant it was. whether they could use me as the negative part of the quadrant. i said i can't i don't play it like that. a lot of these companies -- they're like short and you know mccarthy how scary. >> saying i'm not the ft

i'm not moving across the country. i said let's have a beer no i love this stock. he's the master. by the way, foley, david, not a nice guy a super nice guy >> right all right. we'll get back to the broader market and bullard for a second. >> okay. >> again, there was a great deal of focus on steve liesman's interview. you have so many people who typically are trying to pick stocks focussed on fed policy. take a listen. >> we've got the hot cpi report last thursday, i guess, and i think my interpretation was not so much that report alone but

the last four reports taken in tandem have indicated that inflation is broadening and possibly accelerating in the u.s. economy so i shaded my position. i'm one person on the committee but i shaded my position to say i would like to see 100 basis points worth of movement on the policy rate by july 1. >> i mean, the cpi was out of control! it was there's no longer any safe haven within any part of this country. whether it's poultry, corn, cars how about the car companies telling dealers not to charge so much there's anything i happen to like bullard i like him very much. >> there was a period of time where you were at odds with him. >> yeah. >> that's behind you >> yeah. i will tell you, i think he

represents as close to pal as you're going to get. so look out. 100 basis points is that so bad i don't know i had gary on recently and we're going to cover crypto. i love block because i'm getting 8% on the cash balance he laughed crypto line or block feed. well, i mean, this just happened. >> uh-huh. >> i don't know if i'm going to get my 8.5 or 9. >> you've been getting it for awhile. >> no. it's been on the label it's better than the stock market historically. gary gensler was telling me to be skeptical of course they're lending. >> there are questions about that

>> yeah. you can get 2% that's the money that is going to away, i think it can raise they can raise the short rates it goes to 3 or 4. the next thing you know, the whole deal for rich people is gone. >> okay. the market has priced in an expectations of significant move up in rates over relatively short period of time is that reflected now in the decrease in the multiple for many of these tech names we talk about so often is there an opportunity here, if you are brave? >> fortune favors the brave. >> i thought it was the bold [ laughter ] >> behavior. it's either one. thank god it was not a super bowl question. >> yeah. i would say there's a group of people who seem to be oblivious. when a bullard comes on and bullard talking about this, they're shocked.

i think that short term there will be a dip david, you're look to buy today selling and selling and selling. >> you are. >> even sold broad com remember when he came here >> i do. he sat here. >> he's generated a great return we had a double in that. time to take things off the table. that's what i'm seeing i'm seeing a collapse of confidence in so many different people, ceos and drones. i've got people who have been with me the whole way.

you need to have rates not go up. >> bullard isn't alone last week i had a conversation with somebody who runs a broad portfolio of businesses. a lot of them, i mean, forget temporary. forget any idea it's transitory or any nature. a year ago we had the debate it's not. >> no. >> we must listen to the coca-cola quarterly conference they call it tempo it involves cans, bottles, at-home, on premises.

>> it's like anything. >> anything. i love you pulled it from your pocket anything else? >> pepsi felt pretty good. >> yeah. okay pepsi was surprised. one of the things i thought was interesting is james quincy is so smart he was saying this system. half of your syrup goes to restaurants and half goes to bottlers 3/4 goes home and 25 and do you know what it's like to try to get suddenly you have to get as many cans as possible? many bottles as possible and you're not getting the revenue from the restaurants and there's only a couple. he said suddenly the supply chain is wrecked by you. you're saying, guys, i need you

to do 50% more than you had. by the way the drivers what they said about drivers is interesting. one the retirement drivers is high but new drivers don't want to get the license >>well, listen -- >> that's temporary. >> but i want to go to this. it's not a joke company. >> it'll help the supply chain problems. >> yeah. >> very happy. >> i'm not talking about coke. i'm talking about -- >> yeah. there were a lot of that last night. i told mary barra her ad was the best i don't know if you caught it. mary barra a selfless individual comes back and says, thank you, so proud of the marketing team she, by the way, i'm tired of that stock going down. are you aware of the things? >> we'll talk about it

coming up on peloton's ceo and what he told the ft in terms of the company going up for sale. we'll probably talk about a few other things, too. another look at futures here look at that, jim. >> we started talking. >> yeah. >> we got people to understand >> 15 minutes ago. >> yeah. weavmo cinup he reomg

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welcome back we're keeping an eye on the market that appeared at least even 15 minutes ago to be heading for a significantly lower open it has come back a lot you know, jim, we didn't talk as much in the opening segment about lavrov from russia he said he proposes to continue their diplomatic work. the foreign minister said indefinite nate talks not possible but there's a chance for an agreement we'll try to get responses from the u.s. to unanswered questions. we see a way of moving forward with talks that's certainly one, would argue, for a pose -- positive tone it doesn't necessarily mean that war will be avoided. >> no. so it's been basically telling

the germans that competed a good deal together who work together and they got a deal. to work together before germany turned on russia this is the equivalent of lavrov had he no authority to say what he saw stall inundercut him and subsequently fired him so putin stalin? >> yes. >> i don't know the answer to that. >> stall lynn would not -- that's the only difference. >> yeah. >> okay. that sort of frames how difficult it is to try to understand these issues but it is something that market participants right now aren't focussed on. not necessarily because of the hostilities themselves but because of the potential sanctions that would be put in place and what it would do to energy markets around the world, for example. don't forget russia is the largest exporter of natural gas in the world not here because we got plenty of it! we send a lot away. >> yeah. >> but, you know, one of the things that the president got

wrong, our president, was that we can give this natural gas to germany. these deals were put together years ago. >> you're talking about the deals for free port? >> yes so the president says this stuff. i'm going to say something the president seems very lacking in knowledge of what ceos might be thinking. because the ceos that i deal with, and i've had them on. >> yeah. >> on "mad money." they're visionary countries that truly believe they'd get a

bargain. it's first come first serve. >> yeah. they won't turn it off they won't turn the music off. it means so you to stop talking. >> me? >> yeah. i turn the sound off that's why i continue to talk. >> you can't hear? >> i turned it on. i thought it was first time back. >> the points you make and there are no -- there's not a lot -- >> the president -- i don't want to say he's clueless because he's the president of the united states we have to go because they turned on -- >> we have your mad dash comping up so stop talking.

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we have an opening bell a few minutes away as you can see there, that's a look at what we expect to see when we get started with trading. we'll be right back!

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all right. we'll get to a mad dash about three minutes or so before trading. 3m holding investor day. organic sales growth of 2 to 5%. is that getting people excited >> they should be. it's high end. earnings per share 10 or 15 it's good operating cash flow. 7.3 billion. these are all good now it gets what the bears are talking about which is the ground water litigation. ground water being one of the biggest hot buttons. >> yeah. and then the other litigation. >> yeah. >> yes the soldiers and the ear plugs there. mike -- protect us around the world. we believe the cae is and has

been safe. they vigorously defend so if you do see, like, the giant, they will have adverse earnings by the way, david. let's do something but you've noit the j & j we don't talk about it enough the partial bankruptcy si for talc that works that can spell the end of the voracious plaintiff's bar. but there's -- >> how much of a discount do you think is involved? >> well, put out some numbers. >> you do? >> yeah. now i'm involved, as you know, with it. >> yes >> i have a horrible case of tinnitus you can't hear it. the head of a major steak chain

committed suicide after getting tinnitusafter having delta it's a hideous disease i'm helping to save it myself. i have a patent on a drug to try to stop it. >> right. >> it's serious. >> it's hundreds not millions. there's 238,000 soldiers you can get these run away juries i happen to think it will appeal everything if you're thinking about my 3m -- >> it's a significant risk, in your opinion. >> as well they cite the guidance they've been giving is anticipate a decline in covid-19 disposab disposable respirator demand. >> yeah. looking around the floor here, masks are no longer required we're thankful for that.

it's over. >> no i'm saying here. >> oh. i hope it's over overall. >> the numbers are not horrendous and here is the big board celebrating the listing via spak. >> yeah. >> you know i talked to a lot of people you go to the next one and you look, i can't buy it

but you told me not to buy any spaks. david, spaks are in portfolios kind of like a unique like a vaccine. you need pfizer to come up with a spak vaccine for your portfolio. >> i don't think that'll happen. >> or rem doesveer. >> yeah. we keep it in the index for two years. 61 cents on the dollar that's just hard they're going to storm. >> yeah. it's the best deal here. >> yeah. i'm getting and going that

you need a vaccine against spaks. see what he says [ laughter ] all right. >> there we go they like that they like that you mentioned gm has to stop going down i see it's up slightly mary barra has an incredible suite of products. you have the other companies i don't know how you fund the companies. this is guy run autonomous the guy is from twitch he started twitch. david, they have a young group

of people working at these that have very different mind set from the traditional and internal combustion engine barra has a great team i don't think anybody gives her credit tesla or bust for these people, david. >> you disagree? >> i do i know that gm did not have a dividend. a lot of people wanted a dividend i know that farley did not deliver on a lot of what i was hoping for i did get my maverick. you know what happened my wife took it. she just loves it. i got my 16-year-old lexus that's why i bought the maverick it's the minitruck are you getting the f-150 lightning? >> no. i got the maverick it's 44 miles to the gallon. why do i need that

my wife is testing the ev hummer. >> uh-huh. >> which, to me, it would seem like an abomination in the old days and now it's like the green engine. >> all right let's talk about the markets again here nasdaq looking down a bit. s&p down about .3% nasdaq .3. >> that's frightening. you see some semis up. david, people must hate the steel. i think it's nuts. it's the way they get into industrial right now it's a battle. every time pat comes on. pat basically talked about, you know, the car that runs on water. i don't know he has all the bases covered.

>> yeah. not a real believer. >> no. he's have joe burrow but only in the last pass >>well, it wasn't a pass it was sort of a shove. >> i rest my case. >> yeah. >> nvidia is up. >> it has been hideous. >> yeah. hideous. but you can't predict an end to it, jim. >> oils are down doesn't it tell you what could be happening and i believe this. let's seau crane after the meeting. ukraine. and then there's no nato threat. and then it's in the warf putin without having a war. >>right.

it is. >> right. >> i mean, ze less than sky wants our president to go over there. talk about ill advised. >> yeah. >> if there was an invasion, energy would go up. >> it's down because of lavrov's comments. >> right i believe we should be talking about energy and whether it's an opportunity. lockheed martin's aero jet was terminated that's not a surprise there. we saw the moves in the stocks

as a result of that when we first saw the ftc and kind of got a sense it was not going to happen but you know what is interesting there was no reverse break fee one would have anticipated they would have made sure to have a reverse break fee. namely getting paid if the deal broke and they were forced to walk away. no failure there, i would argue. >> yeah. there was support from the department of defense for this deal that certainly seemed to potentially on both sides perhaps there was why they didn't see the need for a reverse break fee. >> it could be important it's very good company i don't know why they shut them out. >> itext him. >> anything you want to share? or super bowl related? >> no. >> no.

>> he can't tell me anything the best piece of research today, and we have to talk you know what they did >> yeah. it was valentine's day wells fargo, mike mayo sent a hate letter to jamiediamond an doesn't even mention his name. this is the jamie, i know you're watching i want to apologize for them this is vicious. it's a virs piece of research. >> why are you apologizing mike mayo is a fairly respected analyst. [ cheers and applause >> i want jamie dimon to be the best banker of the best bank.

>> yeah. >> this is about not spending the money, i think he'll disagree with that. >> all right jim, take the viewers back a second. >> the stock was down three on this. >> and jp moremorgan set the to anticipating higher prices even than the competitors saw. >> yeah. we spoke to the ceos of every major. they were very calm and expected they had felt that jpmorgan had under invested for years i'm talking about companies all of which you recognize and i thought this piece was long headed. they have to do it now, david, the stock wasn't 150 this morning i want to wash people, when you're trading at 4.45 like robinhood. you get horrible prices. the people -- they're not idiots on the other side.

so stop doing these things and buy. you're wrong all the time. >> what is the point you're trying to make on jpmorgan >> oh, no. you agree with the idea they under invested for those investors that transcends the love and wanted targeted metrics, we say love is blind! there we go. a little wall street research humor. >> yeah. the ads, did you have a favorite >> yeah. >> i like it it's hilarious. >> let's talk about others. >> yeah. >> yeah. row lowe never ages. >> what are the companies you

heard? they do bad ads. >> yeah. that's good. i thought everything pepsi was good. >> austin powers. >> halftime was amazing. >> larry david crypto ad >> it was funny. bud is back. >> yeah. it looks like they blocked everything else. the other companies are referring to the big game. i don't know if people know, but you're -- you can't use the term super bowl unless you pay for it. >> the wheel, i don't think so bad idea let's talk about -- >> crypto -- >> speaking of -- >> everything is great our added crash. fabulous >> yeah. everything coin base is fantastic. >> they're putting the qr quote on the screen they thought they would be able to handle the demand. >> everybody wanted it. >> yeah. so much so itcrashed. >> yeah. let's move on now and talk about splunk a name you talked about in the past

i have, atz well there has been a belief among some it would potentially find itself at the other end of an acquisition bid. the journal tells us one was made by sisco. it's around the current market cap. i would make a couple of quick points silver link did a deal last summer jim, they invested let's call it a billion aggregate principle. i noted the conversion price $160 that's way above here. it seems to be above where sisco is willing to come in. >> yes. >> again, this is not our reporting. this is that of -- i think it's a german story yeah and the other thing, they have a staggered board. they have a staggered board. well staggered three different terms. if you're planning in any way and try to get nasty and

initiate a proxy fight to replace the board, they have defenses that can make it more difficult. what is your take? by the way, as for that, other than that not much to share at this point. >> okay. >> here is what i think i think the company has hideous disclosure problem and i know chuck robins is a smart guy. but doug, the former ceo was on "mad money." >> right you're talk about the departure of the former ceo without any real explanation. >> if i were gary gensler, i would call them. doug was doing an invitamin -- incredible transformation. >> right. >> and he was in charge of the transition he had done several reorganizations. then he disappears

well, david, this is not -- this is not putin, russia you can't disappear a guy who is the company. i have mad money splunk shirts this man was the company i can understand how anyone would say, well, listen, this is our chance sisco needs very much a subscription to take their subscription model to be more than 33% this would do it even at $20 billion. the idea that he's gone creates a major opportunity for anyone the idea you can disappear a guy. even foley is still around >> foley >> yeah. >> at peloton? >> yeah. he's still around. >> absolute lip. he's joined by mccarthy. >> yeah. t peloton shares not doing much of anything mccarthy dismissed the sale of a company. there have been the reports.

>> yeah. >> what is interesting is they when they announced hiss abstention from ceo, the stock soared. >> i would like to -- >> yeah. i'm afraid of him. >> really? >> yeah. you have to be weary. >> his quote was a good one. >> it was active across the company if the company was being acquired in the foreseeable future. >> you have to love that. >> yeah. >> right david, sisco piece morgan stanley they wished they basically would do it. the stock is going down. >> we're back to splunk? >> yeah. people want it to occur. it makes sisco on the software

company. looks at sisco break down. that's a substantial break down from a company that said that orders were going to be as great as they could get! >> we have gotten no comment. >> no comment. but the stock is down. oh, music in my ear again. i just got back. i think that all commercials should disappear we haven't talked about mark zuckerberg. >> we haven't? what is there to say >> nothing. >> okay, good. get in on the cnbc investing club with that man to my left. >> there's the qr code 14 million people crashed it skb >> sign up and find out more

we head to break, by the way, we'll give you a quick bond report you heard bullard saying 100 basis points by july what does that do for the treasury complex you can see the 10-year note hanging around the 2% number

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visit indeed.com/hire let's give you a lock at today's laggards on the nasdaq 100 led by moderna the biggest decliner by a wide march. by the way, moderna shares just since the beginning aof the yea are down over 40%. meerhe mkeremb tart value was challenging those of big parm that no longer. that about $60 billion we will be back with "stop trading" from jim.

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we have been surprised to the upside on inflation. this is a lot of inflation the u.s. economy 7.5% on the headline cpi these are numbers that alan greenspan never saw that haven't occurred in 40 years our credibility is on the line here, and we to have to react to

data however, i think we can do it in a way that's organized and not disruptive to market >> st. louis fed president jim bullard earlier on "squawk on the street" with his take on inflation. organized and not disruptive to markets. >> look, satisfies me. he is a very pragmatic man has no desire to ris indisrupt markets. he is saying do this in an organized way. i think jay powell agrees. let's say russia lee moves all troops from eastern ukraine. ukraine declares itself independent. they must disarm the militias they they have in ukraine that's the tender for the rally that no one is expecting but the russians have to pull their troops away from the border. >> which is unclear that any of that is going to happen. >> no, but i'm saying -- look, i'm trying to paint a scenario why you might not want to sell everything because it's been right to sell for some time. >> yeah.

>> and didn't seem to matter whether an earnings number is good or bad, david they are all going downwards. >> and -- right. but it's much more about rates of the. >> well, rates and international companies. i mean - >> energy is definitely part of it by the way, again, exxon, chevron both down. the energy complex, which has been the best performer this year, is down. >> right my portfolio has a big position in chevron we talked it in the morning meeting. 120 toim i think that this group is undervalued. i don't think oil is going back to 79, 80 because of demand. not because of russia. because of demand. of course, russia is not going to -- they are not going to stop producing oil. it's about natural gas not oil. >> right. >> but natural gas but chevron is a tremendous buy.

but one to watch, the one that could be the most credibly undervalued, oil, or maybe not, is exxon if they get -- the old exxon used to increase their production every single year. >> not any more. a lot of money is going into other efforts to try to mitigate their carbon footprint, move towards that very ambitious goal of 2050. so you have got things like carbon capture and sequestration, biofuels. >> i was with a ceo last night who said that, you know, jim -- temper your enthusiasm for what larry finkis saying about esg. larry fink wants to make money. >> yeah. >> by the way -- >> blackrock is still not the big money behind pipelines in saudi arabia. >> right i have said many times i love what larry fink is doing i'm projecting what i think larry fink is doing. larry fink is trying to make money for his people, and that's terrific but let not go crazy if exxon does some and urns u

returns to the exxon of old, that will be the cheapest old. you know which one is the best performer? occidental. >> yeah, i know. i know. >> the worst balance sheet in the world of the major - >> the carbon capture and sequestration. it's a fascinating topic and one that we will be discussing a lot more as well. >> nasdaq reacting -- >> the risk to the transition. get back to europe and their energy >> but nasdaq reacting, i think, to the possibility of the solution. >> right. >> russian troops go away. ukraine independence independent means ukraine is not going to join nato that's what the russians are worried about. >> jim, we are done. >> that's nonsense. >> you move only i'll stay rehe a lot more - >> what am i going to do for the rest of the day? >> keep it here. >> what am i doing policy - fore cash payment. call coventryre direct to learn more. we thought we had planned carefully for our retirement. but we quickly realized we needed a way to supplement our income. our friend sold their policy to help

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like i was saying, it's ftx. it's a safe and easy way to get into crypto. ehhh, i don't think so. and i'm never wrong about this stuff. never. ♪ good morning monday morning, welcome to another hour of "squawk on the street. i'm david faber with morgan brennan, carl has the morning off. a look at markets 30 minutes into trading you can see down on the dow and the s&p, but the nasdaq is inching higher

morgan. >> over 30 minutes into th trading session. here are three big movers this monday morning we start with lockheed martin. abandoning it's $4.4 billion deal to buy rocket motor builder amid antitrust concerns. a lot more on this later in the morning. those shares down 1.5% now plus, tyson foods a down grade at barclays from overweight to equal weight they see limited upside potential at current levels. shares down about 1.5% finally, rivian getting a boost on news that soros fund management bought 20 million shares of the electric truck maker during the fourth quarter of 2021 worth $2 billion at the time of purchase that stock is down almost 40% already just sips the start of this year, but as you can see, popping 7% on these headlines this morning >> yep lucid shares also up similar amount percentage-wise let's get over to our senior

economics reporter steve liesman. he caught up with st. louis fed president jim bullard this morning. steve. >> yeah, david, good morning st. louis fed president sticking to his guns for an aggressive series of the rate hikes in the cnbc exclusive interview this morning, arguing that tfed has lot of work to do and ought to get going >> we need to front load of our planned removal of accommodation than we would have previously. we have been surprised to the upside on inflation. this is a lot of inflation in the u.s. economy, 7.5% on the headline cpi these are numbers that alan greenspan never saw, haven't occurred in 40 years so our credibility is on the line here. >> among other comments he said an invasion of ukraine is not a big concern for the u.s.

economy. he supports using the balance sheet to tsypin the curve and wants to get going with that runoff in the second quarter earlier some colleagues says wage inflation could boost consumer inflation in the coming months but the unemployment rate could be below 3%. that up beat economic outlook, another side to his view on rate hikes that markets may not appreciate he believes that aggressive rate moves by the fed won't be particularly painful to the economy. >> sheep actually given that unemployment is down at 4% and the economy is expected to grow, let's say, 3.5 to 4% this year my position is a good one and i'll try to convince my colleagues that it's a good one. >> now, to put this in context, as cnbc reported, other fed officials have pushed back against his preferred path, look for a steadier series of moves and bullard is speaking for himself. the question is whether he will

be successful at the upcoming meeting in march convincing his colleagues to his way of thinking. >> that is the question. it's been 40 years since inflation has been this hot. when is the last time we saw a more aggressive front loaded tightening process happen? and what happened to the markets when we did? >> i think you have to go back to volker or maybe 94 with some very aggressive rate hikes then. and the market didn't like it at first, but remember that gave way to a huge run up and massive bull market that happened in the latter half of the '90s. so the market can get by i think it's -- the thing that i talked to several investors about is that they don't like this change, the rapid changes what i think the other folks on the fed are trying to avoid here, this idea that there was one day last week after bullard's comments, the two-year yield went up 25 basis points in a single day

we haven't had something like that since the financial crisis in 2009. i think everybody wants to get to a point of reducing inflation. it's an argument about the paid with which you get there and how sure you are providing guidance to the market of where they are going. david. >> steve, thank you. steve liesman. let's turn back to the broader markets now. for that we are joined by founder and ceo adam parker. we will get to some of your themes on the long side, but let's talk macro for a second. you heard bullard. he is talking 100 basis points by july. is the market overreacting in your opinion to sort of what we're hearing from the fed >> look, i mean, there was a pretty big shift in the perception about interest rates and we follow more the fed fund futures than the two and ten-year yields because they move more dramatically i think that got a little bit extreme. when you see the big banks saying seven hikes this year, i think that's too hawkish

i think that it will be less than that. we'll see what is baked in the market my guess is that we will have a choppy month or two and then as steve just said, history shows that usually when you raise rates it's because the economy is good. when the economy is good, corporate earnings are good. i am bull ish on u.s. equities because i think corporate earnings will grow. >> what equities in particular online anybody who followed the market the last month knows that high multiple technology names with perhaps high revenue growth but not a lot of profits have gotten crushed do you like them or do you go to a different spot >> we had a good call underweight that stuff in the fall and two weeks ago, friday the 28th we upgraded from under weight to equal weight saying it's time to add or cover some of the shorts in growth. when i think about the growth year side of the market, the thing that looks most oversold is biotech the multiples are down 50% the sales outlook is the same. i think this interest rate call

on biotech is probably overblown. i don't know if you know this, but 15% of biotech companies ever generate positive cumulative free cash flow. this notion that all of their cash flow is impaired really doesn't apply very much. so i think biotech is a good risk/reward on the speculative side and if we get dovish commentary, you know, rel toif what is baked in, maybe that can catch a bid. i like old tech, some of the stuff like dell, seems cheap and expectations are low i think there are things you can buy on the tech and growth side for sure in a balanced portfolio. >> how focused are you on the geopolitical situation right now with russia and ukraine? i mean, does seem like at least until friday this was something investors in the market was shrugging off. from a military standpoint, from a defense expert standpoint, i mean, folks are pretty worried because putin has been moving the military units and troops from the west side to the east side which is seen as a major strategic shift. you have significant firepower, more than exercises would

suggest. of course, you have diplomats and crepeions leaving the country. if we saw an invasion, does that ripple through the markets in a meaningful way you. >> you know, look, i mean, as a human being, obviously, i am worried about it i spend a lot of time reading and thinking about it. it's been going on for several months in terms market reaction, it's hard to gauge. when you look at a basket of these events historically, it tends to cause short-term behavior followed by resuming sort prior trends obviously, from the human perspective it's quite worrisome. from the market perspective i am not sure how much it really impacts corporate earnings for microsoft or apple or you the larger companies when you take a step back and say what happened the last few months, in my mind what happened is perception of rates changed and morphed into a growth scare. now you throw a little bit of fuel with geopolitical tension when i take a step back, do i

think 2022 earnings will be above '21 earnings yes. and do i think '23 are above '22? i think so that's my base case unless we get a tremendous amount of fed action and they purposely cause the recession to cool inflation. i think the bias is towards being, you know, buying on dips, morgan, when you see this risk take hold >> you mentioned mid cap biotech. what do you steer clear of in this market? >> profitless software is tricky we have been sort of cautious on that i think a lot of these staples are really overearning and are expensive. we are trying to avoid the staples that trade at 20, 25, 30 to 2020 cash flow, maybe benefitted from covid. a lot of quote work from home names. we chatted before peloton's earnings i was cautious on that type of stock. zoom, docusign, things that everyearned in covid and i think

that's worth avoiding. a number of things to be cautious on. industrials. unless they have a pricing power algorithm which some of the quality ones do, other ones have high estimates and if industrial activity is plateauing that could be worrisome backing up our top picks is energy and materials all last year, all this year, that remains the case as i continue to think that demand supply dynamics are such that oil prices can go higher than those companies make more money. there is lot of things to buy and sell our top choices forecasting and materials and some of the growthier stuff, biotech, health care services, old tech, et cetera. >> it all makes sense. it's done pretty well for you. adam, finally, just to come back to some of the names that you have sort of been short so to speak, you made a call even mid-january was to short some of the names. the moves have been substantial.

don't you want to dough claire r delayer victory and move on? >> we have a basket of work from home and reopening stocks, we look at the correlation of every name to those. we still think that the quality reopening basket since the beginning of covid has lagged this sort of junk work from home that doesn't really make sense to me in aggregate so i'm still trying to push, you know, my clients towards thinking about increasing their exposure to quality reopening names and de-emphasizing some exposure to junk work from home. some of these things like a peloton i wouldn't mess with something once it's in play or once a big company, you know, there is rumors out there that it could get bought. i'd step aside but i think generally i think the world is going to continue to reopen. i have think that means services businesses could have some abatement and marnl pressure over time. so i want to own reopening over work from home. >> got it. thanks for the time. >> great to see you, david

bye, morgan. >> as we head to a quick break, here is a look at the roadmap, including a closer look at that billion dollars defense deal, multibillion-dollar defense deal that fell apart with lockheed martin pursuing aerojet rocketdyne. >> and the head of the national association of manufacturers, jay timmons. we will talk inflation, the supply chain backlog and that fro dom convoy. >> and ubs director floor operations art cashin bisack talking how best to navigate this market volatility we have a big show straight ahead. stick with us. "squawk on the street" will be right back i'm retired greg, you know this. people have their money just sitting around doing nothing... that's bad, they shouldn't do that. they're getting crushed by inflation. well, i feel for them. they're taking financial advice from memes. [baby spits out milk] i'll get my onesies®. ♪ “baby one more time” by britney spears ♪ good to have you back, old friend. yeah, eyes on the road, benny. welcome to a new chapter in investing. [ding] e*trade now from morgan stanley.

the street." prices climbing at the past exist pace in 40 years forcing manufacturers to grapple with hyers costs alongside a tight labor market let's check on the manufacturing sector with jay timmons, president and ceo of the national association of manufacturers. jay, great to have you back on the show i do want to get your take on what you're hearing from your constituents around higher cost pressures and how lasting they could be >> well, inflation clearly is here to -- throughout this year. i think we are going to see higher prices. a lot of that comes from the fact, morgan, that we simply can't find the people that we need to make the goods that are very much in demand in this country. then you add on top of that the

blockade of the ambassador bridge, which slowed down our supply chain all of these things are kind of mount to create rising cost inflationary pressures >> the black aid which has been cleared is that something that could have effects that last perhaps a little bit longer than what we have seen in the near term or speak in general to some of the supply chain bottlenecks cropping up all over the globe >> i think it actually speaks to a sense of absolute selfishness, to be very frank we have spent the last two years in the manufacturing sector literally trying to save the world as we produced ppe to keep people safe from the pandemic, produced vaccines, we tried to keep people fed and clothed. and to see this kind of activity are that would, frankly, disrupt the lives of those very people, manufacturing workers and their families and cause them economic harm, it's one of the most selfish things i have seen

so, yes, it will create lasting damage it created damage over the course of the last few days or weeks touring this blockade because we couldn't get the component parts we needed for so many of our products if you don't have those products, if you are not able to produce those products, that's a factor in terms of inflation and rising costs because demand has not eased, morgan, as we all know demand is very strong right now. people have a lot of money in savings accounts but we don't have the goods to be able to provide to them so that's economics 1-0 wunl we all learned that in it school if you have high demand but low supply, prices are going to rise the fact that these folks that participate inside the blockade added to that is, frankly, really disgusting. >> talk about supply chain, too, because inflation is something we talked a great deal about over the last year and a half. seems as though things were

getting a bit better towards the end of last year then omicron came and it got worse again. where to things stand from your perspective and what are you hearing in terms of the supply chain bottlenecks we have all been dealing with or at least your constituents have been dealing with >> the supply chain is very much still under stress right now it is getting slightly better and we will see improvements throughout the year. again, when we see those improvements price pressuring will start to ease but if you think about what causes these pressures, right, what causes the fact that we can't get the supply chain moving as efficiently as it once was, the number one concern is we can't find the workers that we need. and we have the highest wage growth in our sector in 40 years. so, obviously, a job in manufacturing is a well paid job. it's a very stable career. we are just doing everything we can to attract as many folks into our sector. >> what are you doing? obviously, foremost for you as a

concern in terms of the shortage of labor so what are you doing? what can be done perhaps that's not being done currently to encourage people to enter the work force and get into manufacturing? >> we got 850,000 open jobs in manufacturing. david, just to put that in perspective, pre-pandemic we have 500,000 open jobs the problem was that we simply weren't -- we weren't really able to -- we had to redefine -- not redefine, had to explain what manufacturing was to folks. today people know what it is, but there is so much competition in every sector of the economy every sector of the economy is under stress and needs workers. so we are competing against he every other sector as i said we raised wages. we are in recruiting business. it's going to take a while to get it back. i am proud of a lot of our manufacturers for recognizing some of the things that are keeping folks from coming back into the work force in any sector one of those big issues is

childcare. we have several manufacturers like vermeer in iowa that are actually having an on-site childcare facility to help working parents with that stress factor, especially during this pandemic so those are the types of things you are seeing in manufacturing and you are starting to see manufacturers do to attract more workers and, frankly, i am excited about the future because i do think there are so many things that we can do that will help improve our country and keep us healthy and safe so getting this worker shortage under control is number one at the top of the list. >> i am going to ask you a question that i have a feeling i will be asking everybody today this conflict in eastern europe now. how closely are you and the companies you represent watching this i ask that because you see russia invade ukraine, it could have impacts on trade flows, commodities prices, energy other types of materials that mean so much to the manufacturers that you represent.

>> you just said it all right there, morgan. we are watching very closely because any type of uncertainty on the -- in a global -- on the global scale, on the global front is problematic for manufacturers. we want certainty, when it comes to foreign activities. we want certainty on the energy front because energy is a huge cost driver for manufacturers. in washington we want serntty when it comes to tax policy. the tax reforms we achieved four years ago that led to record investment and job growth and wage growth. we need to make sure that we keep those types of things in place. so the russia situation with ukraine is certainly very concerning we are waiting and seeing like everybody else, and we hope that the situation does resolve itself diplomatically. >> jay timmons, thanks for joining us today as we head to a break, take a look at shares of splunk

they are up on a story in "the wall street journal" last week cisco made a $20 billion offer to acquire the company no word from cisco we haven't heard anything from jim robbins in terms of trying to get him to say something. can tell you ssilver lake invesa billion last summer, a conversion price of 160. and er athes staggered board there. should things -- or anybody consider getting nasty, makes it more difficult to replace that board. we are back after this at vanguard, you're more than just an investor, you're an owner with access to financial advice, tools and a personalized plan that helps you build a future for those you love. vanguard. become an owner.

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. welcome back time for "etf spotlight. another growingposity of a russian invasion of ukraine, aerospace and defense stocks, the ishares etf ticker ita defense stocks are slower this morning and as you can see there the ishares eta -- the ita etf is lower as well after a friday pop thanks to comments frn russia's top diplomat analysts telling me, invasion or not, this changes the geopolitical dynamic and will boost defense spending not only

state side as lawmakers are looking to fund the 2022 budget finally, but also internationally among nato and other allies near term this could be a positive for munitions and missile makers, raytheon, longer term general dynamics could benefit as poland looks to buy 250 abrams tanks, a process that speeds through the biden administration now jeffrey is noting this could support u.s. army priorities around modernization programs with gd and ld harris most exposed. that's not the only thing moving defense stocks another headline for the sector. lockheed martin is scrapping its deal for rocket and missile engine maker aerojet rocketdyne after the ftc sued to block that acquisition last month as you can see, shares of aerojet rocketdyne are underperforming what is broadly a lower market right now down about 5%, david the question now for these names is what does lockheed martin do with that cash, that capital

that would have deployed on the acquisition. the expectation broadly more buybacks, the possibility of bolt on acquisitions that wouldn't necessarily raise regulatory ire it's going to be business as usual between lockheed and aerojet, that's the expectation. lockheed accounts for 30ers of aerojet's sales. you have aerojet move forward as a stand alone company or be acquired by another suitor that is not as large as lockheed. we will see how it plays out. >> yeah, i noted earlier from an m&a perspective, you know, a aerojet rocketdyne's advisors may haveered in not having a reverse brake fee there given one would have taepd tanticipatr was a threat of regulatory turndown, so to speak, or at least they would not take it well but, no. lockheed is getting away without having to pay any additional money, which is interesting. but this was a deal initially that the dod supported, was my understanding. you obviously know more than i do it was the ftc that opposed it

i guess there had been a believe the department of defense would be able to kind of override any concerns at the ftc, which did not happen. >> i think it speaks to why aerojet rocketdyne's portfolio is positioned and how the future of warfare and national security efforts are expected to play out around things like hypersonic missiles and space travel and flight and all of these sort of next-generation capabilities that we're seeing begin to manifest in a more meaningful way. it's worth noting there is a proxy fight, a nasty one, that's brewing at aerojet rocketdyne right now between executive ranks and board members. so that's going to be something else to watch for this company now as it goes it alone without being acquired by lockheed, but also in general, david, and we saw this, you could say, with the arm deal going away, too, the bar very high for deals, especially where something like national security is concerned to get through right now really throwing a lot of cold water on

possible m&a across the sector >> other sectors as well it's a big concern given a, yeah, a more muscular approach from the doj and the ftc. after the break, art cashin, his break on this market volatility we're back in two minutes. wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq alright, so...cordless headphones, you can watch movies through your phone? and y'all got electric cars? yeah. the future is crunk! (laughs) anything else you wanna know? is the hype too much?

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♪ here is your cnbc news update at this hour. russia's top diplomat is advising president vladimir putin to keep on talking with the west amid tensions over ukraine. the move is seen as a signal that the kremlin intends to continue diplomat ic arrests allowing russian skater kamila valiyeva to compete. the world's ain't doping agency

says russian authorities should ban adult who give performance enhancing drugs to children. scott hamilton said officials risk setting a dangerous precedent. >> it is an absolute mess. i feel badly for, you know, everyone involved. i feel bad for team usa and the team event because, obviously, it affects them. and then you look into the individual event, and its this a asterisk games they need to make a decision and they need to make it now, and they just seem to be running intoeach other it's a clown show. >> and trade is flowing again over the busiest border crossing between the united states and canada demonstrations against covid rules blocked the ambassador bridge fnearly a week. a larger protest in ottawa continues. over to you, david. >> thank you. we are an hour into trading. let's get a check on the markets as we can see that we are down across the board with the s&p down over 0.5%.

the nasdaq slightly negative join us on the cnbc news line is art cashin, ubs's director of floor operations art, always good to talk to you. i love to start off on geopolitical risk because you have seen a bunch of it during your long career how do go about playing these kinds of things if you are an investor and being concerned about, obviously, russian aggression in ukraine and/or what seems to be some positive signs today on the diplomatic front. >> it's a mixed blessing yes, the comments, eased back some of the tension, but it's taken away the flight to safety that the market had and that's allowed the yoeld on the ten-year to move back to 2%. so that's a bit of a concern to the market also, as far as putin, i think the possible military move

didn't look like it was going to come too early because when he rushed some troops down to kazakhstan to protect that government, he sent some of his top troops leaving him with a chunk of that group in ukraine as draftees. so he may be waiting to bring back the guy from kazakhstan and get himself in shape so i think that may have delayed things but i think what putin wants to do is embarrass nato he wants to get it in a position where it would look like not the actual conflict, but to see that maybe nato is not really as unified as it's supposed to be at a time of crisis like this and that coined of embarrassment, i think, would be a european benefit to putin. but for now, as i say, it's a mixed blessing it could be a fight to safety.

when it's not, we're losing out with the bonds all right. well, art, let's assume the worst here let's assume that, in fact, putin chooses to invade. what's the market reaction in your opinion . >> well, i think the market would, if he actually invaded, if there was military conflict, i think it would -- the market would move sharply lower i think in the meantime, it's -- the market is testing its own internals to find out what shape it would be in, in case there is a bit of a surprise. i'm hard pressed to think that we necessarily get into a shooting conflict. i don't think putin is ready for that i think he wants to kind of, through some diplomatic circling i i will be watching to see if he gets the troops back from kazakhstan then i would worry a little bit

more about some actual military overture. >> art, it's morgan. the comments we got from bullard on air this morning, this idea that inflation is everywhere, that perhaps it makes sense to front load tightening because inflation is accelerating. it seems to me that geopolitical -- the geopolitical situation and the inflationary headwinds could add to a conversation that's already being and a half fated bit the fed and, thus, market participants is what is front and center so how does that play out, and is bullard somebody who is going to get more fed officials onboard with his thesis? >> well, i think he is going to get help from the markets because we are seeing oil moving up and, more importantly, things like aluminum, construction metals they're all there. and the threat of conflict

raises those prices. you goet the equivalent of hoarding from people like china and others so the market is very jumpy here and i think, morgan, with good cause because we've got inflationary pressure absolutely sitting on the doorstep. i don't know that bullard would be the leader of any kind of insurrection my great concern is the fed rarely gets this right you know, they always talk about tapping on the brakes and slowing things down, and invariably, as they continue to tap, they wind up slamming on the brakes, and that is disruptive to the stock market again and again over the 60 years i have been watching it. and i am afraid we will get there, because i think what will happen is when we start to raise rates and we stop adding, i mean

we're still adding wit, the cra part of it i would have preferred if they stopped qe first and then looked at the rates but it looks like they are going to put both feet on the brake. they are going to wind up basically eliminating the qe at about the same time they are raising rates, and that, i think, could be an abrupt surprise to the markets. >> we shall see as we always say, art always appreciate your taking time with us thank you. >> thank you staying with the markets and fed policy, dennis lack short, former atlanta fed president great to have you on that's where i'm starting with you. the comments art cashin made about the fed rarely getting this right and tapping on the brakes leads to slamming on the brakes and the impact that has on the markets and the probroad economy. tightrope to navigate here how does this play out is there a template going back

to tightenings of the past that might work best given the current situation? >> i think the current situation is novel and the emphasis that chairman powell put on the word nimble tells you that they are trying to navigate this period with essentially a new headset on they are not probably going to rely top on playbooks from the past, but they will figure this one out based on what the data tell them. >> so what does the data telling you? i mean, is inflation accelerating is it broadening out right now and if the fed begins to hike in march, how long typically does it take for a move like that to begin to actually impact and tamp down prices >> well, the inflation numbers show broadening. there is no question about that. i think there is a little controversy over whether inflation is accelerating. it depends a little bit on what

data you actually look at. there was a, i thought, a good article over the weekend by jeff summer in "the new york times" and he pointed out that the month over month numbers have been stable and probably peaked in october so that's an argument, if you look at the run rate on the month -- on a monthly basis, the numbers are not accelerating they are basically flat. >> okay. so if we were to start to see hikes in march and then potentially a drawdown on the balance sheet this summer, which for now is what the market is pricing in, how quickly does that begin to change the inflation data outlook >> well, of course, the long standing axiom is that monetary policy has its effect with long invariable lags. and that, as a theory, is

probably a very sound way of looking at it. haven't sayid that, i think the are trying to -- they will be trying to have affect on inflation expectations and consumer sentiment in th relative short term, and there could very well be an effect as the tightening proceeds. and i do want to point out, we've already seen a substantial amount of tightening by the market so a move that will come in march is, as jim bullard said this morning, in a way a ratification of what the market has already done so i think you'll see some effect, some taking the edge off of demand. monetary policy deals with demand it does not easily deal with supply. >> a conversation we will continue to have on a daily basis, i suspect dennis lockhart, thanks for joining us today. >> thank you, morgan

as we head to break, check out the -- sorry, morgan go ahead. >> the gainers on the s&p. so far this year, look at that it's almost all energy names led by occidental, up almost 43%, halburton, schlumberger. more on the sector after the break. and jared isaac man, led spacex's all-civilian orbital mission this year, he is going back to space. the polaris program which with spacex will cost of three human spaceflight missions culminating with the first flight with humans onboard and isaacman will command a mission later in the year, including attempting the first commercial spacewalk he will join us here live tomorrow as well as on my podcast "manifest space. don't go anywhere. get your tv together with the best of live and on demand. introducing directv stream.

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welcome back to "squawk on the street." i'm dominic chu. markets are hitting session lows for the s&p 500 kbhawhile the nq slight gains as investors continue sorting through different themes and headlines from potential rate hikes from the fed to growing geopolitical tensions in ukraine and russia one sector that is particularly reactive to the situation between russia and ukraine is the energy sector overall. you can see there the worst performing sector. the biggest laggard with names like marathon oil, diamondback energy, devon energy some of the ores performers. oil prices shot in response to the u.s. government's comments on a potential russian invasion of ukraine oil prices have steadied a bit today, but still trading above 90 bucks a barrel after hitting the highest level since september of 2014 earlier in the session today. also keeping a close eye on natural gas prices, higher today, roughly down 10% the last

week still about $93 and change for w wti prices david, back to you. >> okay. thank you, dom. during february we are celebrating black history and featuring some of our cnbc financial advisors councilmembers advice for future leaders. ♪ >> my advice to future leaders it is to co-create a collaborative environment with your team. be a leader, not just by title, but also by example. and specifically to the black leaders, continue to be yourself, unapologetically no one is you, and that is your power. ♪

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. after the break we'll catch up with nfl superagent drew rosenhaus on the super bowl. because of the crypto super bowl ads, check out the currencies this morning, all higher in the green. bitcoin up about 1%. what's really interesting is year-to-date chart of bitcoin because it's down about 7% over

the past month and a half, but look at the chop there a lot of volatility, that continues as we watch this asset class. we'll be right back with the major averages also lower this morning, stay with us. 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 at vanguard, you're more than just an investor, you're an owner with access to financial advice, tools and a personalized plan that helps you build a future for those you love. vanguard. become an owner.

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los angeles is celebrating after the rams won last night's super bowl against the cincinnati bengals, earning their first nfl title since 1999 and their first representing los angeles since 1951 let's bring in nfl agent drew rosenhaus. always good to have you. give me your thoughts about the game itself. >> it was one of the best super bowls i think ever it had everything. it was appropriate the game was in los angeles, because it was like a movie script with matthew stafford going from the lowly detroit lions to winning a world championship in one year awesome game out of joe burrow and jamar chase. and how about appropriate cooper

kupp, offensive player of the year comes through with an mvp performance p. and aaron donald maybe the best defensive performer of all time seals it to get the super bowl ring i think everything was great except if you bet on the rams. they missed the extra points and instead of covering the spread of four points they won by three. >> yeah. i know there were a lot of people who had the bengals happy about that even if they obviously lost the game it was amazing to see the stars come through on the final drives on both sides of the ball for the rams aaron donald, what a star that guy has been in the league since 2014 >> yeah. i mean, aaron donald has easily been the best defensive player probably since lawrence taylor, some argue the best ever certainly dominated the football game that was really the difference in the game. the bengals' offensive line just

couldn't keep up with the front of the rams. their defensive line was just dominant they tied the record for sacks in a super bowl. actually set the record, in fact, and aaron donald was just unstoppable, particularly in the second half. von miller played really well. it was -- defense was definitely key but cooper kupp had a great year, maybe the best year ever for a wide receiver when you combine a super bowl mvp, he was unstoppable, came through in the clutch as well the bengals finished last in their division in 2021 and for the 2022 super bowl, they were all the way. they went down to the wire and could have easily have won the football game. they played the rams really tough. >> it was an exciting game and season, drew the role that sports betting played in this season and then, of course, in the super bowl last night it was such an about face from

the nfl a couple of years ago and speaks to what a potential benefit it is for the league and anything that's connected to the league how does that play out now for the players? >> well, it's awesome for the players, because, you know, the nfl took a big hit last year with covid the nfl salary cap went from around 190 million per team to 182 million per team and this year it's back to 208 and gambling is a huge part. gambling is offset a lot of deficits that the nfl has gone through related to covid gambling is something that the nfl is embracing big time, doing deals with casinos and sports betting. it's about time. it's a multibillion dollar industry and why shouldn't the players capitalize on it since they're out there playing. i'm elated i think it's going to be great for the players. it's going to mean higher salaries, a record setting

amount of billions of dollars placed on the super bowl why shouldn't the players enjoy the benefits of their labor. >> another emerging industry, crypto we saw the impact the commercials had last night and a number of athletes, including nfl players talking about crypto and the investments they're making as well is that something that's entering contract negotiations for people you handle? >> yeah. we had clients ask me to negotiate into cryptocurrency. we have rob gronkowski and aaron jones with lucrative deals with crypto companies it's huge. crypto is big in our economy and it's huge in the nfl and now professional sports, athletes have made a lot of money on it, cashing in on it, it's not going anywhere, that's for sure. >> finally you were on with us a

few weeks ago, i asked you about the lack of black head coaches in the league. that was before the flores lawsuit and i'd love to get your take on how you think that's going to play out for the league overall? >> i think brian noflores is a courageous man his suit as it relates to coaches, black coaches not getting a fair shake and being under underrepresented is absolutely on the money no question the nfl is not doing a good enough job. only two black coaches, mike tomlin and lovie smith, in the nfl. that's ridiculous. there were nine head coaching opportunities that opened up this year, only one went to a black coach. that is really disappointing everybody associated with the nfl, the league, the ownership, management, has to do a better job of getting the representation of black coaches in play.

and it's just not happening. and it has to change if the lawsuit leads to that, then so be it. it'll be a good thing. >> right drew, always a pleasure. thank you. >> thank you, guys take care. the dow is down 1%, s&p lower too, the nasdaq turning positive again that's going to do it for "squawk on the street. "tech check" starts now. ♪ good monday morning welcome to tech check. today geopolitical tensions and possibility of war in ukraine leads to volatility. russian officials say compromise is still possible. but looking at the impact on chips as we get an joup grade of