cannibalization, and on the other side, announced that they're applying to the occ for a full banking license >> right hey, bob, it's a longer conversation i want to thank you. i want you to come back, we can talk circle more i know that's something you're behind as well it's nice to see you, though we'll talk soon make sure you join us tomorrow, "squawk on the street" begins right now. good tuesday morning, welcome to "squawk on the street." i'm carl quintanilla with jim cramer, david faber is on assignment futures get a bounce here on some vague headlines about potential deescalation in ukraine. the macro data not good, ppi runs hot even as empire misses our road map begins with ukraine, russia pulling back some troops from the border as oil declines this morning. those wholesale prices up 9.7 over the last year above expectations, and intel buying tower semi as global chip sales

top half a trillion dollars for the first time we're going to begin, though, with the premarket rally got quite a bounce on some of those headlines about ukraine. >> yeah, when you go from having -- it's going to be imminent on wednesday to being that it turns out that it might have been -- the russians may have just been doing maneuvers, which i don't believe. then people just say, holy cow, i could have really caught here. i may be short this and nothing happens or maybe in the new course that i keep hearing is that the finlandization, that's what people are most fearful of in the cold war in 1948, finland just said, all right, we'll pick on a leader who stalin controls, and so the idea is maybe that's what could be negotiated i mean, don't forget, it was a little weird that o.f. schultz is there with putin, and we're saying they're going to invade i would point out that

chamberlain met with hitler in may, begin to recognize a pattern of dictators doing things, and we recognize that it's entirely possible that putin could strike after, simply because of the olympics, but this does put the worry into the shorts that they haven't had in a long time. there could be a leader put in in ukraine who is. >> puppet government essentially, yep. >> and then that's the end. >> yeah. meanwhile, the wire is saying that japan, speaking of the olympics, is asking for a more robust response because they know that china is watching this pattern vis-a-vis taiwan. >> well, it is clear that i think that xi is giving putin the go ahead and saying listen, you know, whatever you want we'll back you, and it seems the same about taiwan as a quid pro quo. i know that when trump came in, he said basically, listen, i'm going to bombay beijing if youo

this it's actually apparently what he said, and everyone's testing biden. it just seems to be what these dictators are adoing. we have a strong commitment to taiwan that's going to be hard to undo. >> we've already extended long guarantees to ukraine to keep them from getting economically hammered in all of this. why is the market in a sense all of a sudden centered around this one issue? >> it is incredible. a lot of it is inflation because russia can cut us off. we exported more liquefied natural gas to europe than russia. >> great piece in the journal this morning, daniel euyurgen. >> we're in a market where everything is fed and putin fed and powell, putin, powell putin, and everyone's taking action on everything and it may be much ado about nothing in a sense that we know that russia wants ukraine, but we doubt that

there's going to be tanks rolling into kyiv even though our government is saying get out of kyiv. and i'm going to propose something, my friend larry williams a great technician hist historian. he actually says when you see a number this high, inflation, you have to be thinking p. this is not a sustainable rate of inflation it's just too high so if you saw peak inflation, russia's pullback, suddenly you have a lot of bad news baked in, and no good news baked in, and maybe that was part of the r reversal yesterday. >> there was some shatter going into this morning's cpi. but 97 and a 1% month on month we were looking for half prior 2/10, i mean, that's not good. >> i know, and people are going to start saying that jay powell, you really got to -- even his supporters are going to say you have to question his stance.

why is he -- why is there a bond buying program why aren't they acting right now? why aren't they calling an emergency meeting? and i think jay powell has always said, look, we can do it when we have to do it. i think he looks at this number and has to be thinking i don't think this number's sustainable, 9% year-over-year, that we know that when omicron, anywhere omicron subsides there are more jobs, and there are more people taking the jobs. okay he may be making an omicron bet. at alltimes what jay powell is saying is i'm not listening to you. i'm not listening to people who say you're behind the curve because those are people who would have taken rates up to 4 or 5%. i love stan miller, he's a great guy, but i was at one of these kn k conferences where we were delivering alpha and he delivered 4% short-term rates and that was wrong, and stan's brilliant, so i think jay powell is saying, you know what i'm going to just let things play out a little more, and for that he loses credibility every

day. but if we see a peak, let's say the next number is 8.5, which would still be horrendous. >> right >> people are going to say, i guess that was it for inflation. >> a lot of it's going to depend on wallet shift, which kind of reminds us this morning of marriott, great quarter, decent guide, even as we got downgrades of goods weber and gap this morning. >> gap was really interesting. a lot of that is old navy, and old navy is for people who aren't that wealthy and worried about a discontinuance of subsistence. they're starting to have more group travel i mean, this marriott report, which is substantially better than expected, 1.30 versus $0.99. the bears are going to say uh-oh, even travel's coming back guys like me are saying hey, maybe there's a return to normalcy return to normalcy means a lot of different things including people coming back to work. >> yes. >> it's entirely possible you can say no, they're taking

vacations, they're just not working. suddenly the country did not -- everybody did not become -- stan, i'm sorry. not everybody's temper not everyone's saying i want to buy the nets, they are awful >> the journal piece to your point is all about people getting back to travel, maybe not necessarily to the office as much castle, which monitors those card swipes when you go into work, ten major cities, you got about 33% of people now going back on average. of course in january it was 23. >> right. >> so that's some directional improvement. >> some of the companies that are reporting are describingto you how that sudden move has so distorted everything, kdistorte where you buy soda, distorted where you buy fast food, distorted where you buy a cup of coffee to the point where everyone was caught. if you're kevin johnson, starbucks, all these suburban starbucks people aren't showing, and yet, that's where people

live and then the next thing you know people are unionizing. he's got a lot of unionized stores already that are franchised but people are caught unaware about this thing they kept thinking that people would come back. think about it, every day people were saying they're going to come back. but these people who are 40 to 20 who had relatives that didn't want to get covid themselves, they just said, you know, make me make me. and what's incredible because it's such a hard thing to get people to work, it shifted i mean, i know a lot of guys in the make me camp, and i'm like, look, i'd kill you if you -- like find a way, i'd come to your house, you're coming to work everything's up in the air now it's like i got a guy literally i was with because i was on vacation. i said what are you doing down there? he goes they tried to make me come back to work. >> not in this labor cycle

maybe the next one. >> and he said to me, why do you have to be there because i have a job no, come on, you just tell them. you tell them you have it. >> some of us like coming in i do. >> i like teamwork i like it. i'm not like in the nba where people say, you know what? i'm not playing. i'm going to mail it in. you can't just do that there's a whole country mailing it in. i got to tell you when they're going out to eat, going to the movies and not going to work because of covid, if you're jamie dimon who was cursed out yesterday by mayo for saying you're not spending any money, you got to wonder, i mean, what's the end game here i mean, did we just change to where suddenly our word means nothing to our employees i mean i worked at goldman sachs, and they said, listen, you're working six days a week. >> and we should point out restaurant workers, hospital workers, they've been going in every day since this whole thing began. it's really about office work, which is highly specific in this

economy. >> the hospital workers, i mean, their lives are -- you know, who wants to be a doctor who wants to be a nurse. there's such a nurse shortage. go down to johns hopkins, their nursing school is terrific, and get a sense of who's still willing to go. it's combat. >> we owe them. >> by the way, the mobility part of that might have an impact on oil, crude oil is pulling back this morning from that seven-year high, in reaction to the ukraine headlines. goldman's jeff currie has a note out on commodities and geopolitics, he said quote, we think that the ongoing energy crisis and above target u.s. inflation means that any disruption from commodity flows from russia could lead to greater concern of an overshoot and a subsequent hard landing. he's been looking for the price that truly destroys demand. >> yes, i mean, yesterday the morning show and i was trying to work out i had to stop because he basically was calling for there's only one asset that works to commodities if that's the case, you know how

bad that would be for stocks i mean, other than alcoa, which is -- but i come back and i say, well, wait a second, what happened to the oil stocks yesterday? we were at the height of when we had tension, putin on the border you know, we got battalions everywhere and then the oil stocks just cratered yesterday, and the top five decliners in the s&p were oil companies. what do you think about that now the biggest one was the old simerex, that's the most natural gassy of the big independent oils, and that was down the most i thought they needed our natural gas. again, i'm looking for signs of peak i'm not looking for signs of this is a staging ground i'm looking for peak, and yesterday you could argue, wow, the oils reversed it horrible. that's typically not a good

pattern, and they're down badly today. down badly now, my charitable trust owns devin. we're up huge. devin is the highest yielding stock on the s&p 500, because they pay a special dividend. we're all going to be attuned to the special dividend if devin does not go up tomorrow, as much as i love jeff currie, you got to be a little more -- >> really? >> a tad too bullish on his price target >> i think so. carl these numbers are like we're going to be zimbabwe we're not zimbabwe we're not. we didn't even talk bitcoin, we'll save that. >> we're going to get to bitcoin. "washington post" has a ppiece to the that the why is house is exploring a gas tax holiday. >> that's just desperate just desperate i mean, i look at that, and i say come on. look, we discourage drilling in a lot of areas of the country. that's biden versus -- look, we know that i think president trump would want to drill in

cemeteries at fort worth and then we come out and say gas tax holiday? come on. the only thing that happened yesterday that was really significant was it was the 31st anniversary of "silence of the lambs" and your series on twitter, i called lisa over and i said this is the most riveting series, and gene hackman was going to direct? >> he was going to direct, yeah. >> carl, that was chilling. >> thanks for that shoutout. happy anniversary to "silence of the lambs" we've got a deal and a milestone giving a boost to the chip sector today. take a look at the premarket, we got a nice bounce off of those highs as we got some of that ecodata. a lot resqwkn e mo "ua oth street" continues in a minute.

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

got some m&a news in the chip sector, intel agreeing to acquire israel's tower semi, 53 a share global chip industry sales got past the half trillion dollars mark for the first time. that's according to the semiconductor industry association. 2021 sales jumped more than 26% to about 556 billion is the tower news about any potential regulatory pushback or intel's m&a history? >> they all do have -- every single one of these things now has some regulatory issues because of -- and remember, if activision blizzard is being -- let's just say there's a

critical output on it. i got a nice email from pat gelsinger just talking about how we discussed -- i discussed back and forth in plans we need more foundries. this is a very specially technology foundry i think it's a great asset i think this is something that he should be doing because what you need, obviously we're short foundries. this is one that's available that i've always felt they are brilliant, brilliant people. foundry experience will help us capture even more of the $100 billion and growing, foundry total adjustable market. sometimes i'm critical of pat. i really like this because he needs to accelerate his foundry exposure everyone's short foundry this is terrific it also puts him in a lot more than just pc's he's in high performance computing. i know he's got the conference call going on literally right now, and he'll be on -- i just think bravo, p pat >> there's an analyst meeting on thursday others say they've got so many

engineering challenges, mobile eye on the one hand, now this, more portfolio management. >> one of the things intel people forget is this gigantic cash cow it just spews cash, and finally somebody's doing something, look, they made the bad acquisition about tara, one of the people why people don't like amd is they still think that xi xilinx, there's much more to xilinx i'm very happy he's done this. the mobile i was against because that's the gimmick ri. that'd be like if mary barra said i am going to spin off cruise, and i am going to spin off my autonomous. no, we want -- this adam jonas piece, we want the internal combustion engine to support, be the cash cow pat gelsinger is using his cash cow of regular chips to really try and finally go in the direction of saying we are not just going to compete against amd, and nvidia, two notes

saying nvidia's quarter is going to be great tomorrow i typically don't like that, but i do think that nvidia could beat and raise judging by the reports i saw today. it is -- it's a very exciting time in the semis because they are doing a lot more things in se semis. you know, you can -- i don't know i mean, i go back and forth all the time the semis, i mean, it's one semi, it's this for $0.39 it is blocking all the mavericks i got a maverick, just the cheapest truck in history. it has like a two feet bed, actually four feet, but it took eight months, and it's filled with electricity >> you finally took delivery >> i took delivery. >> and i'll tell you what happened my wife tried it yesterday, and she's going to del ray and she took it. leaving me with nothing. loves it loves it you know, what can i say it's a truck that you can park in regular spots >> yes >> but i do point out that getting it eight months later is

the equivalent of, wow, you really got to think ahead. >> right >> i think anyone who's thinking about buying a car, like it's a little different than you thought. >> if you can afford to wait six months, try maybe. >> then you can get it >> my wife has 125,000 miles on her infinity and a part broke. well, see you in september and it's always just one semi. that'sone of the reasons why i think that intel, if they can -- intel texas instruments is trying to put much more foundry together everybody wants -- everyone's starting to realize this is not a short-term shortage. >> not going away. >> no. >> yeah. >> and i think jay powell should be heartened that we're going to have more chips but then disheartened that it takes two years. >> we're going to talk m&a more broadly as we get reports about monster and conconstellation we'll get cramer's mad dash, countdown to the opening bell in just under ten minutes will look back on our lives and think,

"i wish i'd bought an even thinner tv, found a lighter light beer, or had an even smarter smartphone." do you think any of us will look back on our lives and regret the things we didn't buy? or the places we didn't go? ♪ i'd go the whole wide world ♪ ♪ i'd go the whole wide world ♪ ♪ ♪ i call it.... the wheel. ok, this is a miss. it's a fork. i got ten forks right here, baby. a toilet? we're not animals. we go outside like humans. nobody's going to the moon, ever! why not? it's too far! it's far. like i was saying, it's ftx, it's a safe and easy way to get into crypto. ehh, i don't think so. ♪ ♪ and i am never wrong about this stuff. never. you're a one-man stitchwork master. but your staffing plan needs to go up a size. you need to hire. i need indeed. indeed you do.

indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire (rhythmic electro rock music) (crowd cheering) - bito, bito, bito, bito! - [announcer] bito, the first u.s. bitcoin-linked etf.

time for cramer's mad dash as we count down to the opening bell. >> there's an odd story going around that con citystellation s to buy monster they bought $2.15 million stake back in 2014, but what's really curious about this and why it may actually make sense, this is conste constellation, love to see monster too, what makes sense is that on the conference call, coca-cola, coca-cola is talking a lot about energy drinks, and they're not talking about monster. so i mean, it's entirely possible now constellation has made a couple of acquisitions, which is dallas point, which didn't work as a craft beer, and now of course they've had a lot for canopy

canopy's not doing that well they plead up the balance sheet. they have a very well-run company, but they'd have to pay extra for this a lot of different companies like coors is doing huge stuff for coca-cola. there are a lot of companies in the beer business that are trying to extend their franchises because the franchise other than constellation doesn't have a lot of growth this would really change the face of constellation, if they were energy drink and modell low and corona, it would increase their growth profile they have the money to do it, but i think that once again, you'd be saying, oh, why didn't they return that money to shareholders >> right >> so let's watch this, coca-cola, i think would be okay with it. i'd love to see -- but james had such a good conference call. he doesn't seem to be interested in monster at all. >> yeah, i wonder, i mean, do investors -- look, if i want to buy energy, let me buy energy, if i want to buy spirits, let me buy spirits, don't make me buy all beverages to everybody.

>> coors is doing some stuff with coca-cola that's very interesting in terms of trying to do spirits. now, obviously the category that peaked in this hard seltzer peaked chipotle, they sell so much topo chico, in texas it's almost always sold out. they're adding an alcohol component and doing a lot of stuff with coors you're right, everybody's frantically trying to grab new territory. >> sure. >> i want soda and i want salty snacks i want pepsi co. >> those organic numbers were huge. >> that was the best quarter when i was away and i didn't want to bother, trying to speak to him before, oh, man, i'm on a vac vacation, but he's a delight i am a one man supporter of that guy. this one's very interesting. they got paid through the nose for it but people might like the fact that it's not just beer because beer, even their beer we don't

know, beer is just a flat category ha ha >> coming out of covid it's going to be tough comps. >> yes, it is. we'll get the opening bell here in a couple of minutes don't go anywhere.

keep your eye on the crypto space today, a lot of green arrows as bitcoin trying to take outthe february 9 high >> well, look, i have -- i have cash with block -- that's the one that just got sanctioned gary againsgensler really again. why is it? they were taking too much risk according to the s.e.c. in order to be able to get the rates. i just got my new rates. i was getting 8.6 in cash. now i'm kind of getting what you get when you're in a bank. i was getting a huge amount of my ethereum, 4.5%, now i'm getting, again, like next to --

i mean, this thing is -- i might as well go to chase manhattan bank it's really interesting. they put out a ton of releases saying, yeah, we're great. it's fantastic yeah, it's great and fantastic this was like one of the greatest deals of all time i'm not getting it anymore >> maybe that's a good thing for the rest of us >> i remember asking gary gensler when he was on "mad money," and he said, jim, basically it's kind of high meaning i mean, are you kidding me >> yeah. >> so they're very happy at block fee. i just wish that i was as happy given the fact that i was making so much money on my cash in ethereum that it was just good i thought it was a store of value, but everyone must read michael semiblah's piece called the maltese falcon, which basically says there isn't anything about this stuff, whether it be ease of use, no, whether it be hackable, easily

hackable. >> right. >> whether it should be anything in your portfolio, other than tu tulips, they didn't use the term tulips, but fabulous movie everyone's chasing this one -- what do you want to call it? c c chotsky, and it's worthless. it's an amazing piece. i'm sure that michael took a lot of heat for it i finished it, and i said oh, my god, i have to dump my ethereum. >> we always pay attention to what semblis says. chipotle sell brakcelebrating ih restaurant chipotle wants 7,000 in north ame america, and we're almost halfway there. >> there's plenty of room now. chipotle, of course they own their restaurants. one of the things that i love about chipotle is that they make as much money on the drive through as they do in the in store. so you can imagine what's going -- now this stock fell to 1,500. it was making right, it went to

1958 i think that brian niccol is extraordinary, and i think they're getting it at a great level. i think people are too worried about inflation at this point. someone can say, listen, united states shut down the avocados from mexico, so there's going to be some story which says they have to use california avocado you know who's hurt by that kind of thing little guys. these little taverns, these bars, like little bars in brooklyn >> you sound like -- >> losing money on my cash cow >> your avenueocadoavocados. >> wow, this is killing me that's it. please don't order my guac because i can't afford it. >> i know exactly what you mean. by the way, qsr, $0.74 is ahead by $0.04, revenue ahead. the comps and quick service continue to astound. >> yeah, young didn't do as well i happened to have liked the mcdonald's quarter i don't know why people didn't like it more he's doing a good job. we know him, carl, he is another

guy. we've got these guys, compensky, these are new ceos they're like listen i'm a team please don't bother to point me out. the previous guy at mcdonald's was all about me me me i think this new ceo is something we're going to have to talk more about, don't want to be known as the face of the company. the workers are the face of the company, typically since omicron where you've got people coming to work. like kevin john,son, i tried to point out that what he's doing is remarkable. he comes back and says it's the people in the green aprons i thought it was just kind of a gimmick. no, a lot of people feel like my employees come to work every day, not my employees, the company's, they're my associates and they are like putting their lives on the line to be baristas i tend to think there is something to be said these are not health care workers, but they come to work for not great wages, and they

should be celebrated as much as the ceo. >> yeah, i think every little bit you can do to retain or attract, and whether that's how you carry yourself is going to matter. >> and what you give, we're going to talk to bank of america soon, what they're doing is extraordinary for employees. real differentiation between companies in the same industry about what they pay. it is remarkable that starbucks the union drives, but you know, we're in a different moment, and it's hard to get people. >> it's a reopening trade day. even though breadth is broadly positive, it's all airlines and cruise lines at the top. >> american air upgraded, marriott's up -- it's going to be up more than that it's taking out its high i think that's amazing but i also think the marriott people did an incredible job, just a great quarter they're making much more money with far fewer rooms that's also another theme. disney we didn't get to talk about. how much money they're making at

theme parks, totally with far few people >> it's volume and price is almost one of the big dynamics of earnings season overall yes, things cost more. our consumer doesn't care. at least not yet >> no, they don't, and christine mccarthy, one of my favorite -- not my favorite cfo, they keep heckling them, are you going to make your numbers from disney plus, and she just said basically shut up. shut up you children you little children. who are you? we're going to make it, and i do think they will. i think disney's a really -- my travel trust owns it, talk about it at 10:20. i really feel what people are missing can you imagine if everybody came back to the park how much they'd make and now by the way, there's big disney plus pushes everywhere. you get out of jfk and you're bombarded by things that say i want to take this product. >> near or all time highs for cedar fair, seaworld, you mentioned disney we're goingto keep our -- just

basically anyplace >> people going out. >> people go on vacation. >> people are going out. i think there are a lot lot of people in our business who just say that, and they say, uh-oh, people are going out that's pressure on jay powell. it's actually the opposite we have a very good economy, and it's entirely possible that if we get the supply chains under control and both pepsi and coca-cola will tell you it is mana manageable they were the first companies that said, you know what we can do this we need to have more truckers, a but people aren't taking the trucking license now when i spoke to mary barra, who's doing such a good job with autonomous, it's very clear, and i think they're ahead in a lot of ways on autonomous, that you might say to yourself i don't want to be a driver. i don't want to be an uber driver because that job's going to go away but no one's saying i don't want to be a truck driver because the big trucks are going away. that's not going to happen people will come back and start get get licenses again this is what coca-cola is saying

and pepsi is saying. i feel like if you extrapolate this number, you're going to be wrong. i'm speaking about the hot inflation we got this morning. really hot. >> gm, why is that there is it because mary barra's not working faster >> they had a couple of headlines on resumption of man manufacturing of the bolt, that crossed about 20 minutes ago. >> i think that stock is too cheap. i think that mary barra is doing a remarkable job, is not getting the respect she deserves, and this is not just because my wife is actually trialing a hummer. >> yeah. >> in florida. >> ev hummer, how can you beat that good, i can get my maverick back i got to tell you, i think mary barra unsung, chose not to put a dividend through okay because she wants to spend on autonomous don't we want the company to spend on autonomous? don't we want them to throw everything at it >> look at tesla this morning, up almost 4%. >> tesla can do no wrong. >> numbers on elon musk's

passive stake. and the numbers she's given to charity. >> should be recognized. "time" person of the year. people are putting out numbers like 1.5 million that it's going to produce i think that people are underestimating how brilliant he is in a conversation he had on this conference call, he said, listen, i can't do the truck because that makes it so i can't do maximum output, and my job is to maximize output i'm going to be with dave cody this weekend, the former ceo of honeywell. he says you can do both, long-term and short-term i thought that musk was saying listen,ky make a lot of money now and a lot of money later don't make me make it so i don't make money now and just make it later. musk is a great business person. he is not just a great thinker, and that decision to hold back on the pickup i think was brilliant because if you can do 1.5 million, we're going to say that thing deserves to sell where it does. will you look at that green? where are all those people who told me that right now putin

would be in a tank, not unlike, well, i don't want to make fun of the democrat who ran for president. >> speaking of cars, though, advanced auto parts is down on, i guess the take is that it's a bit of a conservative outlook. >> yes i actually like that stock very much i like that group very much. and the leader has been auto zone, which has been -- if you take a look at the float, they bought back half of the float, and it's up 11 today look at that stock wha, what a monster. do you think he's mad at me? >> who >> stan, i just want to apologize to stan because the panthers are just terrible. >> i'm glad you brought it up, dra ka miller. >> that's what made me think of that. >> chevron. >> chevron's a used position. >> you have ion horn renewing his tesla short. >> i know, that's shortsighted. >> and buying some intel and diska which was interesting.

>> i like what gelsinger did today. it's not big enough to make a difference i think it's interesting the way the oils are coming down they are saying, look, someone's giving peace a chance. >> maybe the gm move is related to appaloosa taking a new stake in gm. >> he's such a genius, when you're speaking to ten speakings mccalf fi playing this week? what's the symbol, no, he's a running back it's okay. at one point he asked me for advice that's frightening do you think with the wide receivers? come on, dave. now dave is going to be mad at me everybody's mad at me. billionaires should be laughing all the time why should a billionaire ever be upset with anybody >> i know you're watching for retail sales tomorrow and the fed minutes. we've got a lot of wood to chop before we get to the end of the week. >> these fed people talking this

week, and they don't seem to understand that every single word they say is being parsed. >> do you think bullard is a cautionary tale? >> he made it so we had the bar change, but bullard is not a hot dog. i mean, bullard is a very serious guy who laid out a very good case and made me feel, okay, good, so now we have the downside and we maybe have the downside in ukraine. starting to build some downside in. >> bullard's case was i hope to convince my colleagues that we need 100 basis points by july. has he convinced you >> i like what he said ever since that tiff i had with him where he did that friday disaster on disaster sirius xm, i am with bullard. and i think bullard -- i'm with him because, look, even if inflation's peaking, i mean, we got to get on the case we got to stop buying the -- jay's got to recognize that he's got to at least be prepared that

it may not get better, even though though i think it is going to be better i think he's going to be right but it's not temporal. he's going to be right over time he wants to get it done now, he's got the cash. you cannot get the equipment from lam research, you can't get it from asml, i mean, just like my wife can't get the part for the infinity, you can't get the part for the capital equipment. >> right. >> so let's just understand that you need the chips it's always the chips, and it's always the workers not coming to work. >> so what i'm hearing from you is we've got a lot of corporates getting more vertical in the chain like apple done and now intel apparently, or looking at m&a to grow through scale and get synergy, and lower overall costs. >> provided that the government -- >> so everyone's adapting to the environment. everybody knows what we're in, and they're working on fitting in. >> exactly right now you take texas instruments, why was the stock downgraded yesterday? they said look, it's not like we thought. it's going to be a longer term

cycle. we have to spend big they weren't going to spend at all. this is the recognition at last, wait a second, the economy's changed and we are not going to think that it's peaked we're going to think that it's secular growth in a lot of different industries i agree with that, and i think that that's what jay's got going for him is that there's a mind change among the ceos this quarter, which says, you know what it's here to stay, and there's a lot cynics who say -- they know their business better than we do. >> right the equity bulls would argue that there will be a net positive surprise down the road. as you said, inflation will moderate you won't need seven hikes, maybe four, maybe five. >> they're going to be right, and the bears are going to be i believe wrong, only because, man, when you talk to real people about their portfolios, i was talking to a nurse yesterday, and i said when do i come in next she goes i don't know, when snowflake goes higher. i mean, like typically

snowflake. snow snowflake. i'm waiting for them to talk to me about dutch bros. >> echos of prior eras >> it used to stand for -- >> tomorrow on "squawk on the street," don't miss a first on cnbc interview with b of a's brian moynihan before we go to break, let's take a look at the bond report as well. ppi up 9.7 year on year, we were only looking for 9.1 at the same time, empire was 3.1, we were looking for 12. not the combination you want to see the ten-year, still above 2, though e w we'll be right back.

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.

your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire jim, i know you covered this name pretty closely. the guide not too bad.

eps, it said all dynamic of revenue looks good for the year. we might be a bit short on eps. >> yeah, in the end i think that you don't want to go against their long-term thesis they keep inventing medicines for dogs and cats and it's cash pay. their stuff is terrific. i have kristin peck on regularly, and i think she's doing a fabulous job if you sell that stock, i think it's a big mistake the secular theme of pets is just too great to be coming out of covid. >> it is the number of households that took on ownership. >> and the number of households that doubled the pets is incredible so i don't fight that stock. just don't fight it. it's an expensive stock, i know, but i really like it >> as for otis, analyst meeting, they do reiterate their '22 guide, see revenue up 1 to 5, earnings kager up 10 we've been paying attention -- marriott's got a headline right now about the number of rooms, the growth in new construction has been impacted by covid, so.

>> it's going to be more and more -- now, otis, that's judy marks, philadelphia's own. they have a guy names james cramer who's an executive, he's not me i've got a lot to do she's buying back stock, cleaned up the balance sheet they're taking share in china, the service revenue is amazing mid single-digit growth in a lot of things. 2% take, share take, remarkable job. down 7% for the year, no she's done -- she's way too good for that that's the spinoff raytheon united technologies, but i think people have to watch judy marks. what you want is you want nice organic growth, you want to buy back, and you've got a balance sheet that's better, and she's not getting the credit for what i regard as being a tremendous business in china that has not been dinged at all by all the problems in china. and by the way, i was -- i did pushback with her. i said, well, how about all these construction companies that seem bogus, and she said, jim, safety does not take a

vacation basically is what she's saying in china. i really love what she's doing i think that stock -- i know it's got a 24 multiple people think the multiple's too high, but it's got to be considered as one of your classic industrials right now, and i think that she's a go-getter in the way of getting -- she goes on the road making on the road making sales all the time again, really does hail her tremendous associated. that's a good company. >> hanging on to some of the opening gains. there does remain this ongoing discussion until the vix again falls below 20, nothing is all clear. you go along with that >> a lot of my friends say jim, you need a big washout you'll have one more big surprise before things go up i come back and say okay, that may be, but is the surprise not a marriott i mean, you want to downsize, what you would do is say, america is not coming back after covid, the fed is going to raise rates. let's short marriott that was wrong

>> marriott now even talking about potential capital returns. that may be part of the conversation later in the year >> you know, look, i think marriott is a tremendous company, but i do want to mention sorenson, the ceo, he's great. arne sorenson gave them a good hand one of the great american executives not talked about. ridiculous we're in a weird society, carl you have real heroes like sorenson, and instead we talk about the bumps. >> arne, we miss him >> a great man i remember him coming to the super bowl a couple years ago. he to have a device to make it because he had terrible cancer he was undeterred, smiled, c cheerful, just an all around great guy. instead, we talk about the bums in washington. how about the heroes in companies? >> his legacy at marriott is not forgotten. a reminder, you can always get in on the cnbc investing club

with cramer. sign up, find out more, cnbc.com/jointheclub or use the qr code on the screen. the dow up, and the s&p holding 4452 iness, but all my employees need something different. oh, we can help with that. okay, imagine this. your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown, your sales rep lisa has to send some files, like asap! so basically i can pick the right plan for each employee. yeah i should've just led with that. with at&t business. you can pick the best plan for each employee and get the best deals on every smart phone.

(doorbell ringing) - it's the truth though-... ...-and then what happened? - [announcer] pizzahhh: when the pie, you know and love is still the pie, you know, and love. - oh my god! oh my god! - [announcer] on time, lowest price or we'll make it right. grubhub.

one of my best picks for the club, and this is obviously all covered in the 10:20 meeting for the investing club, is wells fargo. we have been in it for long. been four years since the asset cap was put on, since the fed came down on them. suspected perhaps that's going to be moved and therefore they can do more lending. now, you don't own wells fargo for this you own wells fargo because charlie has reinvented the bank. we may have to check in with brian moynihan tomorrow about whether brian moynihan is one step ahead of everybody at bank of america the technology, something i monitor close with him, and he's enjoyed because he's paying people more. he's done so much for charity. and the same way, elong musk, that's a huge amaupt >> 5 million shares is a lot on wells, though, the one reason

that a lot of the sell side likes it is the expense levers, that thing still - >> they still have it, look, i don't want to say it was poorly run. it was inefficient i was with charlie before the pandemic two years ago, and i said something that was moderately not smart, and i found out he schooled me in a way that i mean, my wife said, geez, how much does he hate you? i said, oh, no, that's charlie he doesn't -- >> suffer fools. >> now at peloton, and charlie, are the two, i don't want to call them mean, horrible tough, i want to say that they're difficult. >> we haven't really talked a lot of peloton in the last couple days. >> how come? >> it's settled down a bit he did talk to the ft and tried to cool down the case for an imminent sale. >> look, we can't buy things on

earnings buy things orn earnings. by the way, i feel the same way about monster. don't buy monster if you think the earnings will be bad, because everybody is in the business but mccarthy wants to run peloton. come on. john foley is a real nice guy. told that to dave yesterday. a nice guy >> foley >> do you think anyone can get mad when you say they're nice? >> when you say it, they know what you mean. >> pat gelsinger is nice, and he took action. >> we'll talk a lot more about intel and this deal for tower. we'll sooyou later, jim. the dow hanging on to a gain of 340. don't go away. this idea of making a movie about caring, it resonated with me. and not only caring, but how does that apply to someone from our community? it's about taking care of each other. she is an example of strength. ♪ ♪

check out this vrbo. come on. ♪♪ ♪♪ ♪♪ our mission is to help our members achieve financial independence to realize their ambitions. getting your money right requires more than a financial service provider. it requires a partner that is there for every major financial decision in our member's life and all the days in between. today we take our greatest step yet forward fulfilling our mission and helping more people achieve financial independence. do you have a life insurance policy you no longer need? now you can sell your policy - even a term policy - for an immediate cash payment. call coventry

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 pay their medical bills, and that got me thinking. maybe selling our policy could help with our retirement. i'm skeptical, so i did some research and called coventry direct. they explained life insurance is a valuable asset that can be sold. we learned we could sell all of our policy, or keep part of it with no future payments. who knew? we sold our policy. now we can relax and enjoy our retirement as we had planned. if you have $100,000 or more of life insurance, you may qualify to sell your policy. don't cancel or let your policy lapse without finding out what it's worth. visit coventrydirect.com to find out if your policy qualifies. or call the number on your screen. coventry direct, redefining insurance.

. good tuesday morning welcome to another hour of "squawk on the street. i'm carl with morgan and mike. david faber is on assignment market is wrestling with headlines that indicates some deesclaze in ukraine the dow is up 300, morgan. >> we're 30 minutes into the trading session. here are three big movers that we are watching. we're going to start with marriott booking gains beating on the top and bottom

lines. seeing occupancy rates rise. plus, virgin galactic lifting off, announcing a limited opportunity for the general public to buy future space flight reservations for its suborbital service that's expected to launch later this year total ticket price of $450,000 that's where it starts down payment of $150,000, and you could see shares of the company up about 15%, almost 16% on this news however, still down more than 80% over the last year of trading. finally, we will end with advanced auto parts. under pressure despite beating analyst earnings, expectations company sales coming in higher than a year before, but inflationary headwinds putting a dent in profit those shares are down about 3% right now. we're going to discuss with ceo tom greco coming up this hour. carl >> meantime, markets get a boost after russia announced it's pulling back some of its troops near ukraine amid these invasion fears. kayla tausche is live with the

latest >> good morning, carl. the move is seen directionally as a positive, but it is still too early for the u.s. to make an assessment about what it means for president vladimir putin's intentions earlier today, defense secretary lloyd austin left for europe he'll visit poland and lithuania, stopping first at nato headquarters where this morning secretary-general yen stoltenberg said so far, we have not seen any desevilation on the ground, not any sign of reduced russian military presence on the borders of ukraine we will continue to monitor and follow closely what russia is doing. russia's defense ministry earlier today said some troops in the south and west had been ordered to return to their permanent bases after completing their drills but the drawdown, if it happens, represents just a fraction of the 130,000 troops putin has amassed at the border, and yesterday, the pentagon warned that despite expressing public interest in diplomacy, putin could still attack with little to no warning. here in the u.s., the national

security team has for months been giving out possible responses to russia on the economic, military, diplomatic, cyber, and humanitarian fronts the playbook assembled by the so-called tiger team, according to officials, would cover the first two weeks of a potential invasion guys >> kayla, thank you very much. we will check back in with you soon, i'm sure >> turning to this morning's economic data. ppi coming in higher than expected, and rising almost 10% year over year let's bring in our senior economic reporter, steve liesman, for more on these numbers, steve >> yeah, mike, the trouble with the number, as much as it was double expectations it's wider and more persistent inflationary pressures in the economy if you're looking for any sign of peak inflation, which is what the market is doing right now, not going to find them in this morning's producer price index report headline up 1%, looking for .5%. goods up 1.3%, services up 0.7%,

so the u.s. economy is now getting hit by inflation from both the service and the goods side both could be showing some effect from the pandemic, and could ease with more americans going back to work and easing of supply chain issues. but the concern is that the inflation is now more endemic to the u.s. economy it would be hard to draw up a worst set of numbers for the outlook, says steven stanley, because the increases in the report were not at all driven by the flighty up and down categories the fomc needs to have its hair on fire because it's becoming increasingly evident that the central bank made an egregious error for staying so easy for so long the year over year rate, 9.7%, and near the second highest rate since the series began in 2010 only two places for this inflation to go, in consumer prices or reduced profits to companies who can't pass it along, but there is some ability for companies to ease pricing

pressure with higher productivity we have seen some of that, but two things stand in the way of that first,io vusupply bottlenecks and high prices for capital goods equipment that would give you the productivity, and second, the ease with which companies have been passing along the higher prices. expect a chunk of gains to wind up in consumer prices, mike. >> i'll take it, steve not the greatest of news for consumers. steve liesman, breaking it down for us thank you. >> staying with the markets, we're joined by allspring global investment portfolio manager margaret patel, and cnbc contributor megan shu. the comments that steve just made about there really being two places to go given the hotter than expected ppi number we got this morning, and those wholesale prices, either consumers or to companies' balance sheets how does this play out if inflation hasn't in fact peaked? how does this play out for the markets at a time where you do have all of these different

cross currents macro cross currents that investors are having to navigate >> never been exactly in this situation before in previous cycles but the way i look at it, even though there's supply bo bottlenecks and pricing pressure for this latest quarter and looking out for company's expectations, they were still very optimistic. they had wide profit margins they have been able to either increase their prices, improve their productivity, or handle their supply bottlenecks that says to me corporations are in pretty good shape to handle this i think we're really in the benign part of the inflation curve where most of the effects at this point are good, meaning corporations have maintained their high profits consumers have gotten increases in their wages but they haven't felt the full impact of the price increases affecting their real income. i think actually the economy will continue to chug along, especially with the fed continuing their policy of being too little too late. they're still buying government

securities incredibly at this point with almost 10% inflation. really amazing what they're doing. >> it is really amazing. megan, i want to get your thoughts on this and how you're balancing it against some of the geopolitical risks, given the fact if russia were to invade ukraine, that's going to add to. >> that's right. particularly as you think about the regions that are most exposed to the russian/ukraine tensions which would be europe, germany in particular, inflation over there has been driven by a bit of a different mix than inflation here in the u.s. where we had so much more positive monetary stimulus, fiscal stimulus that really contributed to goods inflation over in europe, it's been much more centered around higher energy prices. so i think for that reason in particular, it's really important to see how the russian/ukraine tensions transpire, but assuming, you know, that we don't kind of move to a worst case scenario, i

think the outlook for international equities as well as here in the u.s., is fairly solid. we're not expecting equity gains like we saw over the past three years. but we think companies still have pricing power to pass through to consumers consumer sentiment is something to watch, so it's really going to be, i think, a stock specific story type of market a stock pickers' market if you will, where those companies that have the brand loyalty and the pricing power are where you're going to wand to be. >> i'm wondering about what message you think we should take from the credit markets right now given your focus for so long and the high yield area. lots of outflows from corporate debt, seeing spreads widen out a little bit is that just the market getting stress tested for what the fed is going to do, or are we gearing up for something a little more negative in the economy that could undercut equity valuations as well? >> no, i think the high yield market actually looks quite good and it's the yields have gone up

a touch because treasuries have gone up, but you're looking at an economy where defaults in the high yield market is only about 1% that's very low. you'll get to keep the extra interest income, and also with higher inflation, that's really a friend to the companies because they'll be able to pass on some of the price increase with the high fixed costs. i think that's why high yield looks like it's a pretty good market here. it's off maybe 3 to 5 points here today a little less than equities, but a yield of 4% to 6% looks pretty attractive for income oriented investors because i don't think defaults are going to be an issue for quite a long time in the high yield market. >> megan, in terms of investing across the world, i mean, you have talked about some of the global issues running through. you have seen some outperformance in nonu.s. markets, maybe because they don't have the exposure to the faang stocks we do in the s&p 500, but how do you see that playing out from here? >> great question. we're pretty constructive on

international equities and actually if you think about the balance, we're overweight to exwitties but the balance between u.s. and international favors international both developed and emerging markets if you think about the economic story, both in areas like europe, japan as well as emerging markets, there's a lot more ground to cover in terms of getting back to pre-covid levels you also have a more positive fiscal impulse, particularly in areaoffs europe where we're looking at a net fiscal contraction this year in the u.s. over there, they're getting more stimulus right now and then you couple that with more attractive valuations, so we're pleased to see the outperformance of international equities so far this year. and we do expect that to continue, particularly if the fed can move to a slightly more dovish position than what is baked into the market right now. that should help weaken the dollar a bit and help foreign currency returns for u.s. dollar based investors.

>> okay. we talk so much about diversification on this network. what does diversification look like given all of these macro stories that we're talking about right now and some of the uncertainties? does cash make sense to a certain extent, does gold, do other things >> well, i think when you look at the economy, the u.s. economy to me looks like the best economy in the world so i would personally want to concentrate my assets more in the u.s. we have the growth, we have the highly efficient working population we have a reasonable government. we have high levels of corporations really liquid i can't think of a better place to invest than the u.s personally, with the growth in the equity market that i expect, which is mid to high single digits, i think equities look more attractive than the fixed income market. i would lean in an asset allocation to overweighting equities despite the short term volatility long term, what you need to look at is the earnings power and relative strength of companies and their industries, and that's

really u.s.-based companies so that's why we like u.s. and equities rather than fixed income >> all right ladies, thanks for kicking off the hour with us with the s&p up more than 1% >> as we head to a quick break, here's a look at our road map for the rest of the hour, including the billionaire astronautjared isaacman making his return to space. >> plus, burger king and tim horton's restaurant brands posting results. we'll be joined to break down the latest quarter, inflation, and a lot more >> and intel scooping up tower semi in this multi-billion dollar deal. we'll get more on the ipam "uawk on the street" continues. 7 million kids develop their passion for learning through our grow up great initiative. and now, we're providing billions of dollars for affordable home lending programs... as part of 88 billion to support underserved communities...

including loans for small businesses in low and moderate income areas. so everyone has a chance to move forward financially. pnc bank: see how we can make a difference for you.

welcome back to "squawk on the street." fast food prices are up 8%, the biggest jump in more than 20 years. joining us to discuss inflation is restaurant brands international ceo jose seal. good to see you. >> good to see you thanks for having me >> so much to discuss on pricing. i have to say, one of the things that stands out is some of the growth metrics on firehouse subs we can see why you were so interested >> yeah, it was a great quarter. and a good close to 2021 we're really excited about the performance, sequential acceleration of comparable sales for all brands a lot of work on the development

front, so unit groewth accelerated in 2021. we have new partnerships with popeye's and tim horton's. digital sales grew 67% from $6 billion in 2020 to over $10 billion, which is nearly 30% of our business so we're really excited, and we have a strong performance in terms of free cash flow generation, which allowed us to return over $610 million of capital back to shareholders in the quarter, and $1.5 billion for the full year. as it relates to firehouse, we love the brand we love the team they have done an apazing job. we closed the transaction december 15th, and they closed out the year in line with our expectations, that we had shared back in q4, and we're looking forward to finding ways to work together to drive the digital business, to drive growth in the u.s. and canada, and to start growing that brand internationally. we're really excited about how we came out of q4 and looking forward to a big 2022. >> yeah. and as far as food pricing goes,

we keep hearing a lot of discussion about how hard it's going to be for it to turn around because of how deep the pricing pressures go into the food supply chain. what's your view on that, and i mean, are you getting any indications that the consumer is balking on whatever menu price increases you might have in mind >> yeah, it certainly is a big issue and top of mind for all of us in the industry and for many folks in the supply side as well and distribution side we have an incredible supply chain team, so we have done a really good job of building relationships with suppliers and distributors, so we are able to use our scale here in the u.s. and in canada and also internationally to be able to kind of mitigate some of those impacts, but there's certainly tremendous pressures we're seeing what's important for us is making sure we maintain a long term view, maintain a focus on quality, maintain a focus on being able to deliver consistently to our restaurants, the best product, the best quality product at the best

cost we work closely also with our franchisees and third parties to make the best decisions as it relates to pricing we don't want to get too far ahead of our skis because we want to make sure we focus on creating consumer demand we have been very careful and cautious on that here in the u.s. and also in canada and internationally where there's a little less commodity pressure but it's certainly something that we're all looking at, staying close to, and working closely with our franchise owners all around the country and all around the world >> jose, you have touched on restaurant growth. 1200 net new locations over the course of the year and you know, last week, yum brands similarly accelerated new growth in franchises i'm wondering what you can say about just what's happening in the franchise economy. are you finding you can have greater density in certain areas of locations is it something about people, you know, wanting to start a business instead of getting another job? or, you know, availability of

financing for these locations? what's really happening and can it continue? >> yeah, what's great about our business is that we have now four brands, they're iconic, well known, and we have penetration and opportunities for growth all around the world. so we're in over 100 countries and territories. we have seen growth consistently throughout all of our regions, here in north america, and the u.s. and canada, latin america, europe, east africa, and also asia pacific consistently what we're seeing is franchisees, whether they're small owners with one or two stores or the larger ones that have hundreds of locations, they're seeing a tremendous resilience in this business, even in the most difficult of circumstances throughout the pandemic they have seen consumer demand come back to the restaurant space with delivery off premise businesses growing our digital capabilities being so strong that they view this as a great investment, a great opportunity for growth and a great secure investment

long term for themselves and for their families in many cases we see that as a key part of it. we have got great master franchisees internationally which have a tremendous appetite for growth the great economics, the resilient business modsxl great brands we have with growing digital presence, we're well poised for strong growth in 2022 and beyond >> and a lot of that is going to come from unit growth, which is something we have heard not just from you but some of your competitors the last couple weeks. i wonder, at what point do we get to where we're bumping our heads on the ceiling regarding development of new stores, unit growth, and is any of that coming back to urban markets as we try to get office workers back to the office >> i think we're a long ways away from being overly penetrated anywhere. i have been in this business over 20 years and i have traveled the globe i have had responsibility in different parts of the world for many years there's a lot of open space for

development and opportunities for growth in europe and asia, in latin america and africa, as well as here in north america and the u.s. and canada. we feel there's a long road ahead of us in terms of unit growth, and we have seen with the advent of ghost kitchens and dark kitchens, we have seen the opportunity to expand in urban locations and be able to be where the customer is and be able to set up smaller footprint locations with either in these ghost kitchen layouts, some we have done ourselves, to be able to be there for delivery purposes and make sure we're as close to the customer as we can be we're seeing broad-based opportunities from a growth standpoint and are looking forward to continuing on that journey with all four of our brands >> finally, you know, when i think of burger king sometimes i think about really creative menu you know, in years past, you put mashed potato on a burger, not a problem. is the food supply chain dynamic affecting how creative you would like the kitchen to be over the long term?

>> i think it's part of our dna, the culinary kind of innovation and creativity for bk as well as popeyes and tim horton's and firehouse. we haven't seen any issues orpressures from the supply chain standpoint that would limit our ability to innovate. the key is making sure innovation is enhancing the overall experience and we provide our team members in the restaurants a really simple, straightforward operating process so they can deliver the products consistently. so we're working on balancing innovation with operational efficiencies and simplicity to make sure we're able to deliver the products to our guests as effectively as we can. so there's a fine balance there that we continue to focus on >> no, kitchen complexity can be dangerous. shares up 4%, more than a one-month high this morning. always good to talk to you appreciate it very much. >> thank you have a great day it's now time for etf spotlight. we're looking at the first trust

cloud computing ticker skyy. it's up about 1% right now it's down more than 20% over the last three months, though, as high growth names have come under pressure a core holding that is bucking the trend and sending the etf higher this morning, arista networks popping after results that beat estimates by a wide margin, issuing upbeat guidance as well. rivals cisco and sienna rising in sympathy. don't miss a breakdown of the numbers with the ceo joining the gang on "tech check" next hour we'll be right back. stay with us ♪ ♪ 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 oh man, my laces are ruined. yeah... oh. the gender reveal was more fun than i thought. get in the back. look, your cousin dared me. i had no choice. my cousin is twelve. this is your captain speaking... 'cause they're like... captain's chairs? to be fair, i did say heads up. to be fair, you're sleeping on the couch. hey mercedes, change lighting to baby blue. i think you're actually more annoying back there. get up here. the mercedes-benz gls. perfect bliss wherever you sit. i'm gonna grab the handle now.

never be afraid of your strength. because your body is capable of amazing things the one they said you shouldn't have. the one driven by a power they can't see

own your strength and see how far it takes you. tonal. be your strongest. pretty good tape this morning. crypto is a big part of the equation as we get some prices above 44k in the case of bitcoin, which once again, we mentioned earlier, would try to get past the high on february 9th. >> yes >> any idea what the dynamic is here today >> it's trading along with the nasdaq again it's one of those modes where

we're back to essentially trading it more as a risk asset. so we'll see if that rebound rally which i think this is what this qualifies as, will continue kate rooney has more on this move in crypto hey, kate. >> hey, mike yeah, that's exactly right cryptocurrencies following u.s. stocks higher this morning bitcoin's up about 4%. that rally comes as tensions between russia and ukraine look to be cooling off. bitcoin and tech stocks had traded lower when things looked to be escalating in eastern europe bitcoin is now rallying as a risk-on proxy, as jeff dormen of arka put it. he also pointed to canada, evoking emergency measures including a potential freeze of bank accounts. the narrative of bitcoin really being free from government overreach, really picking up again, especially on twitter in the past couple days despite bitcoin's move higher today. investors have been taking some risk off the table they're selling crypto or the

selling in crypto spot market, that used to be the only way to do this and take risk off the table, but in recent weeks, investors are buying more downside protections in futures markets. analysts pointing that out this week, and investors lately are moving from more speculative call options into more protective put options analysts call it a new regime of investor sentiment rate hikes expected in march are the key reason they point to they also talk about an overall deleveraging in the futures markets. bitcoin related stocks also getting a boost. you have marathon digital, riot blockchain, the mining stocks, up big this morning, and microstrategy block as well, robinhood higher too finally coinbase, one of the big winners after the viral super bowl ad. it was up as much as 5% this morning, and according to data from analytics firm sensor tower, the super bowl ad seems to have worked coinbase climbed as high as the number two most downloaded app

in the apple app store prior to the game, it was around 186. so this happened in a matter of just an hour it's currently number three in coinbase installs meanwhile up 123% from february 12th to february 13th. the super bowl day all in, u.s. installs for the top ten crypto apps jumped 11% back to you. >> all right, kate, yeah, getting some viewer metrics now from the super bowl. topping 100 million, rebounding from the multiyear lows, and that ad was a big part of it thank you, kate. >> after the break, don't miss an exclusive with the ceo of advanced auto parts talking supply chain backlog to the latest earnings shares below the 200-day for the first time in almost a year. we're back in two.

if you wake up thinking about the market and want to make the right moves fast... get decision tech from fidelity. [ cellphone vibrates ] you'll get proactive alerts for market events before they happen... and insights on every buy and sell decision. with zero-commission online u.s. stock and etf trades. for smarter trading decisions, get decision tech from fidelity. check out this vrbo. come on. ♪♪ ♪♪ ♪♪

welcome back i'm rahel solomon. here is your cnbc news update at this hour. what appears to be a move to reduce tensions over ukraine, vladimir putin says he is ready for talks with the u.s. and nato over some of his security concerns, including missile deployment he spoke after a meeting with german chancellor olaf scholz. russia also says it's pulling back some of the troops it has on ukraine's border. nato, however, remains skeptical and says putin's primary demand, keeping ukraine out of the a align, is off the table. >> camillakamila valiyeva was ip spot and reuters reporting republicans plan to boycott tomorrow's vote on president biden's nominees for the federal reserve and that could delay their nomination by the full senate you're up to date. back to you. >> thank you, rahel. >> advanced auto parts reporting

results that saw higher sales but lower profits as inflation weighed on prices. here to break down the quarter, tom greco, advanced auto parts president and ceo. good morning good to see you. >> good morning, mike. thanks for having me >> absolutely. so it's been -- i imagine it's been a pretty good backdrop on the demand side. shortage of new and used cars. pricing is much higher for cars themselves obviously, should increase demand for auto parts and service. do you not see that continuing if production comes back and used car markets loosen up a little bit this year >> well, for sure. i mean, the industry fundamentals are strong. you know, we delivered a very good fourth quarter and a record year in 2021 our sales were up 10.7%. our comp seam sales basis, 48% earnings per share groith. the highest margin expansion we have had in the history of our company since we were public in 2002 we're pleased with our results

as we enter this year, we're excited about the industry fundamentals the absolute price of a new vehicle is up about 30%. used cars up significantly, which means people keep their cars longer, that bodes well for repair and maintenance for us. >> yeah, and obviously, the average age of a car on the road is actually pretty stretched at the moment about a dozen year, i guess. you mentioned in the conference call that you expected wage and product costs be up for this coming year in the mid-single digit percentages. is that something that you can kind of recoup on your own pricing and preserve margins i know you did also lift guidance a bit >> yeah, exactly this has been a very rational industry for a long time and yes, we have been able to price to cover inflation we're really pleased with that, and we expect to be able to do that once again this year. we guided margin expansion once again in 2022, so there is an assumption we'll be able to pass that on.

>> where investors are trying to parse through some of the broader inflation data we have been getting and whether we're reaching a peak or not just in terms of that pricing power, is there a point at which you would expect to see a turnover in terms of consumer demand, and in general, given the fact prices have been climbing, has that changed the mix? >> well, it's obviously an important time to make sure that you have pricing power, morgan so you know, in our case, we're investing behind our brands. we're really excited by the fact that die hard is now a billion dollar brand wecrossed the billion dollar mark we acquired this brand less than two years ago and already we're over a billion dollars it helps when you're able to offer your customers a differentiated offering, and we just announced yesterday that the die hard is officially the first automotive battery to obtain a validation from ul circularity or the closed loop space. in terms of environmental sustainability, that's a big

step for us and for our industry so we do believe we have pricing power, and we're going to continue to invest in our brands to enable that >> tom, thinking about the future, we're coming off a weekend where got a lot of commercials for evs. and i know it's going to take years, but as we enter a period where a hefty part of the population owns an ev, over an internal combustion, how does the business change? >> well, certainly, there's been a lot of things happen, carl, over the years in terms of technology in automotive and for our entire time, we have been adapting to those changes we absolutely intend to adapt. obviously, every electric vehicle still has wipers, they still have to be cleaned and they all have a 12-volt battery. that's why we're excited about this recent move with die hard because our team, our entire team and customer base is playing a role in environmental sustainability because we're bringing back all of the die hard batteries that have been brought back into our store by our die hard customers,

our team members are putting them on a truck and sending them back to our supplier such that all of the die hard batteries are being used to make new die hard batteries we are repositioning our business for the future. and we will adapt to those changes as they come along >> tom, there's some talk in the analyst response to the quarter that the guidance while higher than you were, you know, putting out there before, seems a little conservative stock backing off a little bit today. 3% is it conservative i know you had only put out there what you think you can achieve, but i know you also did raise guidance several times last year. >> yeah,obviously, it's very early in the year, and as you guys have been talkingabout fo the last couple months, you know, there is uncertainty inflation hitting a 40-year high recently, so we're mindful of that at this early stage of the year with 10 1/2 months to go. again, the industry fundamentals are strong all of the things you referenced, we're confident in

our plan we're going to continue to drive top line growth and be great stewards of the cash our shareholders give us and we're excited about our prospect for 2022 >> tom, thanks very much great to get the update. >> thank you very much for having me. >> after the break, the billionaire astronaut making history turned to space. don't miss our interview with jared isaacman and let's get another check on the markets. as we do see a rebound among the major averages right now with the s&p up 1.3%, 4460. every sector in the green except for energy and despite that hotter than expected ppi inflation reading we got this morning as well, the better than anticipated headlines out of the ukraine/russia tensions helping to fuel all of the green on the screen we're ckn reba ithe. - [narrator] texmexcitement: when you realize the spice of life is actually the spice you just tasted.

on time, lowest price, or we'll make it right. grubhub.

♪ ♪ ♪ hey google. ♪ ♪ ♪ ♪ ♪ ♪ competition beat us again. how? they have a better finance system than we do. i feel like they might have a better finance system than we do. workday. how do they make better decisions faster?

workday. it's got to be something workday. i think i got something. work... hey, rob, you're on mute. hello! hey, rob, there he is. workday. the finance, hr and planning system for a changing world. welcome back to "squawk on the street." spacex made history last september with the first all

civilian orbit now, he's partnering with elon musk's company for three new human space flights comprising the polaris program. culminating in the first star ship flight with humans onboard. the first mission, polaris dawn, will happen as soon as november. it is expected to take the crew the farthest into space humans have been since traveling to the moon and include the first ever private space walk joining us now, founder and ceo, jared isaacman great to have you back on the show you're going back to space how did this manifest? who is paying for it >> yeah, morgan, thanks for having me back the collaboration with spacex on the polaris program really began just prior to the launch of inspiration 4. and then after we came back, we were able to sit down and talk about what are the important building blocks in order to get to starship, which will be the vehicle that will take humans back to moon and ultimately to mars once we had all this worked out

and i felt really comfortable it could make a positive impact on the world as well as what we're looking to accomplish in space, i signed up for it and i'm really thrilled to be partnering again with spacex and st. jude children's research hospital as we move boldly forward. >> i know you're contributing money to this process, so is spacex what do you plan to accomplish in space >> yeah, i think we have a number of really ambitious objectives so the idea with the polaris program is to undertake a series of missions that again will ultimately culminate in the first flight of starship there's a lot to learn before we get to that point. the first mission, polaris dawn, is going to fly higher and deeper into space than we have gone since the last lunar mission. the highest earth orbit we have flown, which is getting a lot of important information on radiation exposure for long duration space flight and things that are useful to take back to earth as well. we're going to do a space walk you will want to get outside and get work done, and we're going to communicate over star link

laser based communication. which is very important. and it has obviously real practical use here on earth to connect disconnected communities all over the world >> you're going to be doing this first mission with three crew mates, including two spacex employees. can we say that this really marks the beginning of a spacex astronaut corps and a tipping point in general in terms of private space flight >> oh, absolutely. first, you're basically talking about, you know, the first privately funded space program which i think is pretty cool and on top of that, you have the first two spacex astronauts in sarah gillis and anna menning, who are unbelievable engineers, very talented and incredibly important to everything we look to accomplish with the missions and they're the first two of what i'm sure will be many over the years ahead. >> it's pretty incredible. we had this conversation last year ahead of inspiration 4 as well, but how do you balance this with all of the training, with all of the preparation,

versus your day job at shift 4 >> yeah, well, i balance it really well last year with inspiration 4. you know, i love shift 4 this is what i have been doing since i started the company at 16 so we have big ambitions this year we're going global really excited about the opportunities ahead. i'm not taking my eye off the ball on that, but i'm also passionate about two other organizations i have grown close to one is st. jude's research hospital, and the other is spacex thrilled to play a part but still a lot of important things to focus on. >> as you're speaking, we're seeing shares of shift 4 continuing to move forward, up now 4.5% i know one of the other things you told me in the past is that your space flight work has actually increased awareness, even potentially business for shift 4, too is that an expectation here? >> i mean, we're an integrated payments company we power over $200 billion a year in payment volume a good portion of transactions here in the united states, and we're bringing our capabilities

all over the world we're obviously growing because we're solving problems for our customers. i certainly didn't expect when we went into inspiration 4 that sp spacex or st. jude's would become customers, but they have. that's an init tended consequence of the good work we're doing. >> we're having this conversation on the same day a suborbital space flight player, space tourism player, virgin galactic, also announcannouncin ticket sales to the general public in general, as we do start to see more entrepreneurs, more businessmen and women, more chief executives begin to start to do things like fly to space, a lot of questions about how you navigate that with a board how have you navigated that with your board >> my board has been, you know, incredibly supportive. i think they also know from my track record over the last 22 years where my attention and focus really is. i have run a defense aerospace

company through my time as ceo ee have grown revenue year over year for 22 years. i think some of the performance speaks for itself and that's earned their confidence. i agree in general it's a good question, but what's awesome is there's good private funding going into space exploration i think private industry is far more efficient with capital allocation i think we'll be able to make an awful lot more progress out there, and it's important because this is part of who we are. i want to explore and try to maybe find some of those answers to questions we have been thinking about for some time it's going to take more than just the world's superpowers in order to accomplish that >> you wr on site last week at star base for elon musk's update on starship, given the fact the third mission in the program will culminate in the first crude flight will you be onboard? inthat's certainly the plan. we have our book ends. we have to start with polaris dawn and learn an awful lot and spacex has to do a lot of

testing to get to our end goal, flying starship. if we're successful when the chapter closes, the means we're going to the moon and mars that's an incredible time. >> look forward to getting all of the updates from you throughout this process. jared isaacman, thanks for joining us >> for more on the polaris program, starship, and all things commercial space, you can listen to the latest episode of manifest space, which is out now. remember to follow "squawk on the street" wherever you get your podcasts. it is an even longer, more in depth conversation with jared isaacman meanwhile, a big show coming up on techczech including another big earnings interview shares up better than 6% that's at the top of the hour, as we're approaching sessions highs in the s&p, backbo t20da e 0-y.

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

there are some days that nothing can prepare you for. matching your job description. but being ready— it's about how you react. so when new challenges come up, you find a new way forward. when you meet other people facing what you faced, you start a business dedicated to helping them. and after you've achieved all that, you take on what's next.

first hour sand a half or so nasdaq ahead by 2% just for benchmarking sake, the s&p 500 below where it was friday morning, which was above 4500 that's when we first had the initial sort of sell-off on some

of those russia-ukraine headlines. getting back the majority but not all of it so far let's get to dom chu with sector sort. >> tech sector stocks among the top performers so far today. it is broad based. energy is the lone sector on the downside among the technology group, the chip stocks, as you point out, are showing strength today nvidia is up 6%. you have kla corporation, applied materials, and micron, as well. we'll end on intel, which is in focus after announcing a roughly $5.4 billion deal to acquire tower semiconductor, making chips for medical, auto, consumer products. that stock, they're soaring 42% so far in today's trade. keep an eye on the chip stocks very much in the green has been a little shaky over the last few months. much more "squawk on the street" coming up. stay with us

(doorbell ringing) - it's the truth though-... ...-and then what happened? - [announcer] pizzahhh: when the pie, you know and love is still the pie, you know, and love. - oh my god! oh my god! - [announcer] on time, lowest price or we'll make it right. grubhub. ♪ “all i do is win” by dj khaled ♪ ♪ everybody's hands go up! ♪ karaoke singer: and they stay there. and they say yeah. and they stay there, up, down, up, down. never lose confidence in how you run your business. intuit is bringing quickbooks and mailchimp together to help you set up and grow. dj khaled: man, i love this scent.

competition beat us again. how? they have a better finance system than we do. i feel like they might have a better finance system than we do. workday. how do they make better decisions faster? workday. it's got to be something workday. i think i got something. work... hey, rob, you're on mute. hello! hey, rob, there he is. workday. the finance, hr and planning system for a changing world. this round of 13 f filings showing how hedge funds were

positioned going into lie pickee details. >> the stock names made for interesting revelations in recent 13-f filings. rivian got a boost and is up 4% after several funds today revealed stakes. soros and s1 held several billion of rivian the end of the fourth quarter it is likely many of the shares are illiquid since they bought stakes pre-ipo that was in the fourth quarter, as well. they probably had some exposure to rivian's 40% decline over the last six weeks or so peloton has had its own share of up and downs in recent weeks, but tiger global was among those undeterred the firm acquired an additional 3 million shares during the fourth quarter d1 cut stakes in peloton. facebook parent company meta

plunged 35% since the end of the last quarter hedge funds were net sellers melvin capital and val post trimmed leading up to the declines though not a hedge fund, one of the more auspicious trades was berkshire hathaway's investment in activision blizzard $1 billion position in activision at the end of december se several weeks before microsoft announced its intention to buy the video game maker these positions are as of the end of the fourth quarter. they may have changed in the six weeks since, but it gives us a picture of how they were positioned leading into the volatility, guys. >> it is fascinating especially that berkshire investment it is so large, you have to wonder whether warren buffett was directly involved or not the fact so many of these filings and the themes emerging from the filings is around growth in tech stocks, how disease idoes

it speak to, i guess, the dominant market themes in 2021 and the unwind since then? >> it's pretty remarkable, especially if you look tat the returns. a lot of the fund managers that specialize in the growth and tech oriented pockets of the market, those got hit the hardest in january in terms of returns. we saw returns, the bottom was more than negative 15% for january. that's a remarkable, remarkable performance figure when you think about just the amount of losses they could get. but that's largely concentrated in the tech and growth areas value investors, on the other hand, sticking to more of the types of holdings that have been been as profitable over the last few years. perhaps 2022 is their time to shine. >> all right leslie picker, thank you for combing through all the filings. we have big earnings reports to watch after the bell, as well, today, including airbnb, viacom cbs, roblox don't miss the ceo joining us tomorrow in the 9:00 a.m. tour

of "squawk on the street." mike, you're going to be combing through these numbers in real time, as well. what are you watching for? >> well, the roblox number will be really fascinating. mostly because of how the stock has behaved. it was a huge favorite after coming public last year. really built up this huge premium. the rebound attempt but not really because of a lot that's going on, specifically within the company. so i think a lot of focus on, you know, the sort of product development flow and research development within roblox is fascinating. wynn is in a similar situation, different company, also with a tentative rebuound after the hug selloff going through omicron. >> definitely some very key consumer names to be focusing in on then, of course, we get fed minutes tomorrow, as well. that's going to be something to watch, given the fact that's been a big macro topic for the markets, mike. just getting a quick check on the markets. major averages all firmly in the green right now.

climbing back toward session highs. the dow is up 456 points 1.3% s&p up about 1.5%. the nasdaq outperforming, up 1.9% that's going to do it for "squawk on the street. "tech check "s" starts now ♪ good tuesday morning. "tech check. i'm carl quintanilla with jon fortt and dierdre bosa the nasdaq is more than 13% off the all-time high. this hour, we're going to look at one sector badly beaten down. talk about what buying opportunities may lie ahead. we'll talk to the ceo of arista network plus, the ceo of f5 joins us, focusing on cloud security inte