good wednesday morning welcome to "squawk on the street." i'm carl quintanilla with david faber. carl cramer is on assignment retail sales crush estimates after last month's drop. best core number in almost a year meantime earnings for shopify are not well received. road map begins with the

reopening trade and the stay at home trade mo dern that's ceo said covid may be entering the final stages quarterly bookings disappoint. we'll talk to the ceo this hour. in a few minutes, b of a's brian moynihan will join us. moderna's ceo joined "squawk asia"over night. >> i think the way i think about it, there's an 80% chance that omicron evolves, we are going to see less and less. >> 80/20 you take the odds? >> yeah. i have to tell you, he's been good the whole way he's been good when you needed his -- look, people don't

remember the absolute bottom that happened in 2020, the call bottom when he had one patient that he vaccinated and the person had the break of not getting the early strain of covid. and if he says, look, my vaccines aren't going make a lot of money going forward he's a preplanned seller those thinking he's selling because he thinks it's over. that's wrong it's important to point it out it's an epidemic it's not a pandemic. it's an epidemic unless you have been vaccinated. my wife was literally saving som someone's life last week who was put out of a hospital in mexico and hadn't been vaccinated kidneys failing. we got him to the hospital in

mexico city regeneron and rem does v-- remdesivir. we're not in a world of a pandemic anymore. >> and we're a couple of months away from wider availability of anti-virals of all kinds. >> yeah. >> so the fallout for this morning is what does it mean for retail sales and roadblocks and airbnb. >> and shopofy i have to tell you the only one last night that demonstrated a lack of pandemic scyclicality wa airbnb are we a prepandemic story he said maybe we're a story. [ laughter ] you know, and i love it. we'll hear roadblocks and roadblocks will be a little tougher than i like. the reason is because i thought that they were not a pandemic.

i didn't put them with peloton i didn't put them with docusign. obviously those are the kiss of death. zoom a kiss of death zoom has a lot of money. peloton has a green beret now in mccarthy i want roadblocks to be better it's slowing. >> it is slowing bookings were a miss dau up 33. just a slight miss it's deserving of the punishing it's getting today. >> cash flow half of what i thought. free cash flow what dave has to explain is company in business since 2006 do you need to be public he didn't want to ask about the nfl deal the jpm deal i didn't know january would be down when you're on the calls, they're basically like january

will be down. huh? i have not seen a lot of companies prepared for post pandemic i've seen a lot of companies that are kind of back in a little more pandemic, perhaps. by the way you want a company that didn't bank on anything toast. and finally felt you could say officially that toast is toast now they will tell you, listen, have -- this is the restaurant software it's the most crowded space in the world. i know from being in the restaurant business. you can rip this guy, put in another guy. the only winner is american express. american express has been the best stock they are a great at opening. that's great. >> why is fintec not performing in an air when we'll go to more restaurants. >> i don't believe there's going to be more i think it's a counter i think you'll see we don't need

more restaurants we had a good restaurant feature early this morning i felt like i was an aberration. the whole rap is the industry has so much room no it doesn't. square will tell you we'll lock up everybody so let's be very careful saying the things are good in the restaurant business. it's competitive and i don't like it one bit. >> this morning's better than expected sales data putting consumer inflation the fed in focus. i don't know if anyone knows this more than the man we're about to speak to. it's wang of america chairman and ceo brian moynihan brian, i love your take. you've got more sense of the consumer and the country than anybody. your stock has held up far better than any of the other major banks. tell us what you're seeing and tell us what would happen if you got seven rate hikes some people are talking about >>well, jim, good to see you i think when you look at the core spending levels as consumers, they continue to be

strong we said january is up. restaurant spending is up. as it starts to normalize. we'll see consumer spend across the board. number one consumers are spending a lot of money are moving out of their bank accounts the good news the transaction volumes are up it's not all inflation driven which might be the question. the second thing is consumers have more money in the accounts. the month of january their accounts grew again. especially those who carry lower balances if the stimulus runs out, people will drain their accounts. they haven't yet so that means that the economy is strong. so the fed will have slow it down and bring the rate structure back up top where it was in '19 when the economy was about the same sides it is now. >> but let's go to what you have

done, which you have done remarkable job hiring people had to pay more. if we slow the economy down, it's terrific for maybe employers not wanting to pay as much so you a situation in your bank now that, frankly, if it weren't -- i'm going it say it it's the greatest time ever for your bank. i hate to see that be taken away b by the fed. >> i don't think the fed will take it away we make a little more min in rising rates because the core deposit franchise has so much embedded value and rate structure comes down and hits the zero floor we pay zero but can't pay less than zero. that's good news when you think about what we have done to be a great place to work, jim, in terms of the teammates. we have continued to work this company. when i became ceo 12 plus years ago, you know, we had 280,000 people going up to 305,000. we run about 208,000 people. it's applying technology over and over and getting more and

more effective and efficient across the time frames and as you said earlier, and brian said it, you had to be doing it the whole time. the pandemic we had a lot of work to do to help our clients through. you had to invest in technology. before i turn it over to carl, i'm going to talk on the technology spin. you have said over and over we have to spend the technology we have to spend $10 million here in technology what i've seen is everybody fell behind it's the break down quarter for all the money you spent. you know what i'm talking about. there are other banks that realized we're way behind. how did you see it how did you know it? >> we had great leadership cathy lead it for years.

that was in paris. and it was just driven by our businesses saying, hey, we have to transform this business and the starkest thing to think about the consumer business. 6,000 branchs at the high point and 4,000. and the business is probably three times bigger and hedge count down about 60,000. think about that term. it was a one suler have bullet it was a constant implementation of the digital banking and pushing mobile banking and getting mobile banking implemented by the customers showing how easy it was. then things like zell and life plans. you keep building it people were critically important to our execution at the branchs for a high touch high-tech they can be working on the most important things the clients while the technology can take care of things that can be done, you know, sim poliplistically. checks depositied at the branch

has gone down by half 15 years ago. >> you point out, there's a lot of wood chopped. i wonder if you feel the same way about balance sheet runoff and estimates about the monthly runoff are all over the place. feds on the heels with messaging after transitory what do you think it looks like when it happens and how do they -- do you think we'll start to get a picture of the mechanics saying, for example, in the fed maintenance today >> they'll be clear about the strategies they have been abundantly clear and between the dialogue after the conferences and, frankly, about i don't know eight years ago, they said we have to be clear for guidance it's one of the ways we prepare the market for changes and constantly do that

the economy is bigger than different things that two through it bigger. there's a sort of a fundamental stopping point they'll run it down. in the context of the trillions of dollars on mortgage backed securities outstanding and trillions of dollars of treasury bonds. and, you know, it's big news for the market in terms of increment but in terms of long-term and bringing it down, you know, will have an impact the bigger impact will be can they get inflation under control and consumers feel good about, you know, having the money to spend on the future. that will keep driving the u.s. great economy. i want to talk about the idea adults are back in the room. we heard buy now and pay later it's the secret. they have us in their chains do you see postnovember a beginning where things like buy

now and pay later a little glib and maybe buy now pay never? >> well, you know, we're not in that business. we look as to what the consumer wanted what the consumer wanted, if you said you could buy, you know, $1,000 peloton bike and pay for it over four installments, who wouldn't take that things like that have been around for hundreds of years there's a wonderful article written about it the idea what do consumers want? we try to think about that and, remember, with our consumers, we try to make sure they manage their debt well. i think the tension is causing people to overspend is one of the tensions you have and how we run the business so we look at the products and have credit cards which are great consumers from secure

credit cards up. we didn't think it was a product in demand by the consumers because our consumers basically have the money to pay or put up in the credit card and pay it off over time. >> all right so, brian, the foremost in tech spending so brilliant a lot of these i've been praising them forever. how about bloc chain is bloc chain really new you must be laughing at this stuff. >> we're not laughings as technology thought process i think we have 60 patents already issued we continue to look at that. and the idea of information and money and distributed verified ownership and those things.

those are distributed ledgers. everybody knows who owns what. the idea of cross border requires more capabilities we've studied that you know, there are things that are interesting to us. we're still trying to figure out how scale an application we have some work going on we work with various other named parties you've talked about in terms of implementations you need to divorce that from the technology and the principles from some of the other things that go on. there's something there about how you can move complex amounts of information it shows the diamonds and where they came from you can be assured it's real diamond. those are interesting applications we focus on a technology and what it does as opposed to, you know, the market evaluations around that. >> you've been doing this for a long time. there are a lot that have come

pub publics spaks and ipos buy now and pay later rates go up you would be on the book i think you have analyzed these things at this point, i would own a bank selling at 134 times earnings than buy now and pay later. and what you've done is create the technology machine that all the other guys are claiming they have i mean, you spent a fortune. these guys come on, brian. they don't know anything about what happens if there's a downturn i think you're ready for it. >> we're ready for it because we test ourselves but last year we were $32 billion and there's few companies that earn that amount of money the team did a great job producing the earnings and on course to earn a lot of money this year. so, you know, the challenge will be a big company to have that nimbleness and look at, you know, our digital banking capabilities we grew 2 million customers last year it's a record raw number of

customer growth. by the way those net new accounts are 60 or $70,000 accounts if you look at merrill and the private bank had 1$170 million you have to be mindful we have teammates they look at everything and ensure we know what the customer sees and adopt, you know, ourselves to that. >> it sounds like you're painting a pretty positive picture about the household on the consumer side. some have argued, i think it's the b of a research desk argued that corporate's have a bigger mix of long-term fixed debt going into this cycle than they did, say, going into the financial crisis are you as optimistic about corporate's? because we have begun to hear about warnings on the leverage loan market and smaller players

who would be vulnerable to a rising rate environment. >> you'll have that discussion, by the way we had it in 16, 17, 18, 19. if you remember the sameissue. the sfri helped a lot of people through the crisis we did some work with clients that, you know, fwaif the liquidity they needed to stretch out some of the people to the airline industry and cruise industry and things like that. dependent upon customers being able to move around. and those companies are recovering and i think the balance sheet is a corporate america in good shape.

those things tend to be net asset value. when does it get big enough to have impact. if it's a economy getting restructured, that stuff unfortunately happens. if it's a bunch of companies you have to be careful that's what we watch will the cheaps have problems? right now we toy think so. we have to watch it. >> excellent brian moynihan i wasworried about january, november, december kwuns again your bank. the technology the best. that's why you have the highest multiple congratulations thank you very much. >> thank you, jim. meantime stepping into the metaverse. roadblocks tumbling after the quarterly miss we'll talk with the ceo.

take a look at the premarket the ukraine headlines, again, the market hunting out for signs of deescalation. a lot of nato officials this morning a bit skeptical. futures t r aadinheedhe of the wednesday's session. don't go away. ♪ ♪ nice suits, you guys blend right in. the world needs you back. i'm retired greg, you know this. people are taking financial advice from memes. [baby spits out milk] i'll get my onesies®. ♪ “baby one more time” by britney spears ♪ e*trade now from morgan stanley. every big idea every game changer every "how'd they do that?" starts here the blank page artists and writers know the tyranny of it well but so do developers, data scientists, ctos the new creators to them, we say let's create something that changes everything

♪ ♪ ♪ ibm let's create ♪ ♪ nice suits, you guys blend right in. the world needs you back. i'm retired greg, you know this. people are taking financial advice from memes. [baby spits out milk] i'll get my onesies®. ♪ “baby one more time” by britney spears ♪ e*trade now from morgan stanley.

keep your eye on meta this morning. the meeting with mark zuckerberg and employees yesterday are now employees known as meta mates. stocks will lead the nasdaq lower in the open. down almost 4% along with moderna. the opening be iju aut veanlln stbosen d a half minutes

yep, it's go time on the most reliable network. you get unlimited for just $30 bucks. nice! but mine has 5g included. yep, even these guys get it. and the icing on the cake? saving up to $400 bucks? exactly! xfinity mobile. it's wireless that does it all and saves a lot. get the new samsung galaxy s22 series on xfinity mobile. and right now, save big with up to $750 off a new samsung device. switch today.

♪♪ ♪♪ ♪♪

time for cramer's mad dash. >> yesterday we talked about money for the investing club that win don't buy into the idea that

wynn a jumps from 80 to 95 could surprise -- they didn't. they didn't. now they did sell the real estate under encore. they got a break up price for $1.7 billion we're in a wait mode they don't know either i love the fact that las vegas is doing well. dubai 2026 everything to me determines about the lockdown and what it will look like in china post olympics if you can tell me, i'll tell you whether to buy. >> mccow down 2528 we're talking about the endemic. some of the numbers out of hong kong are not encouraging. >> no. they have a second-rate vaccine in china china won't like -- they'll probably black that out. they're trying to contract to get the right vaccines thing is a delayed story because they sold the

$1.7 billion in real estate, they have the money go through it it means they're fine. unless you think that covid is going to be cured in china, you're not going to get back to the growth rate. i have to figure out what to do for the investing club. >> speaking of china cpi ran cool with all the caveats about chinese data but we're looking for 1 prior to 1.5 i don't know you want to believe maybe it's a canary rolling over. >> i agree china like europe switch to at lo 230r78s of energy they're getting serious. they are opening a coal plant. so many. everybody seems to want to use less energy. they forgot that economies run on energy. except for the united states >> oh, my gosh the ukraine situation has brought into sharp relief between the energy costs and the electricity and the eu and the

reliance. >> yeah. europe is lucky in january they did take 3/4 of the lng that's unable. it's heavily skewed toward asia. we're in a natural resource boom in this country. i know the fed has to tighten. he recognized that i think we forget how blessed our country is we're not sitting and fretting about the warm versus cold winter there's good interview with rick perry this morning by brian sullivan talking about the russian economy is the size of the texas economy. you have texas economy holding complete sway over europe. we have inexpensive energy it makes us top of the world when it comes to, like, what things run on.

>> all though we saw crude prices there higher on the session. >> i mean, look, we're getting -- is it going to be some sort of -- okay, they get ukraine. 0 the president laid out things yesterday. you know, it's on the table for nato nato -- countries. the market went up it seemed to be odd to me. we're back on earnings world in which there was one blowout earnings last night which was air b and n. i want to go back to the theme can you imagine europe is hostage to louisiana and texas as well as russia? we kaebts ship enough. >> right the journal yesterday said we could do some. take the edge off. there's no way we can completely replace it. >> no. we can't build the plants fast

enough he said we don't have enough people believe me they're aiming people to build the facilities. north dakota when they had the boom. >> there's the opening bell. >> good luck they're up by the man -- >> i was going it say gross nightings booked up 59 at airbnb and long-term stays 25% of gross bookings it was 16% two years ago. >> i mean, he's got the thing launched the product that is they called i'm flexible

they can steer people. it used to be i want to go here and google now i have so time why should i go? you have the product that makes it so there's a nice merger. when is the stock down can i i are say let the stock come in if you want. it was the only quarter where it did notmatter post pandemic or not. the business is growing so rapidly. >> it's going to be interesting, too, once web for example, kids are out of school for the the summer you have remote options then it's a no brainer. >> yeah. it's the story to be somewhere et. cetera and the idea if you are going to have to work at central office, you'regoing on-air b andb.

listen to this. we saw length of stay segments grow for two, night, five night, all those are growing. they are cases that are growing. we believe they're here tostay

i know there's the spak. i don't like spaks but what i understand this is a man out of nowhere developed a new way for people to go places. one of the things we have talked about is that if you're -- my daughter is a schoolteacher. and she was looking for somebody to do each week. everybody every lockdown in the world people are going from one part to two. your daughter is not the first person. >> right thank you. >> so that brings us to names like you mentioned marriott. hilton today close to an all-time high. they miss by three cents good qualitative stuff optimistic can legacy hotels coexist with this giant >> absolutely.

they can marriott is putting up in a lot of places. what i think is that they're just the thing is one day business travel will come back business travel variants making the case it will come back energy will lead us at the open. >> it's never as big as you

wanted and others viral pioneers. conoco but this was a monster good quarter with one hand tied behind his back. >> yeah. and, obviously, we know what prices are doing it was the opec prices this morning who said supply is not enough companies have under invested and demands on the rise. we have to adjust. >> yeah. look last month it was the highest it's been. there was a theory that if the pump like this prices would go down and self-defeating. completely wrong it turns out -- mary barra and

jim farley did have a great chris farley tweet yesterday i love chris farley. they are both telling you, look, i know you think that i.c.e. is dead, well, no 0 kwe able to manage the transition and they have. >> >>shop fie, jim. >> it's tough. it's one of the stories there's still growth but the growth is slowing. but this is one of those calls, again, last night it was, of course -- i don't like it. >> really? >> of course i'm not going to pay 150 times

earnings where of course it's slowing. i didn't like that. >> you didn't expect revenue to grow more than 51 like last year. >> no. i wanted to hear them say you have the explosion and long line people are saying is over. well, that's wrong one of the things i thought was interesting airbnb is doing well they don't have to pay alphabet much people put in the destination it's here. it's just not -- the new

quarter. still business better offers. six times earnings i'll take it talk about things up the alley here we'll take a look at shares ro blocks bookings rose 20%. it's just shy of expectations. i'll say use the piece so it's not -- so we have a kind of not me versus you. >> thank you for reaching out to the community we're coming off

an amazing january north of 30% and 17 through 24 segment in january grew over 50%. as we're lapping covid from a year ago january where we were locked out we thought it was an amazing january. >> all right it is an amazing january when it comes to growth. but when it comes to free cash flow it was a step back. that last quarter. i was looking for more than 150 million. you came in at 77. why can't you make more money? >> yeah. we have so many opportunities to increase montization on the plalt form we're not touching advertising or 3d immerszive shopping on the platform we're being gentle on

montization relative to quality user growth. creating a safe and civil platform, and driving our dau numbers. we're focussed on user and engagement growth. that said, our economy is scaling very nicely with our user growth. >> let's talk about hours. now it comes to 10.8 i'm worried about hours. you know, i'm also worried about -- that when kids were home they were playing with each other. now they're at -- now they're at school i got enamored i should stay enamored but don't get so enamored because the company will spend a lot of money kind of like netflix did and amazon did for a pot of gold hopefully at the end of the rainbow isn't that an accurate depiction? >> yeah.

the money we spend, jim, is primarily on product and engineering. all the people on our platform that we've got cheering the last year has been very, very sticky. we're actually glad that we're getting back to normal that affects our hours relative to d.a.u the people we brought from covid are still with us. that number is growing very rapidly. >> all right. >> david, we mentioned the deal with the nfl on friday when we were out in l.a. for the game. can you talk more about it maybe i don't know is this a situation where it creates a deeper experience during the season or a way to elongate the season when there aren't games to play? >> yeah. this is a new category 3d immersive experience where people do things together. we're very early on the brands can reach people we had 12 deals this year. six music concerts we have brands like gucci gardens you go to the virtual

stainlation. brands like nike where you get to wear the products and experience them. the nfl is just another early sign of some of the things we would like to do in the real world. do a lot of work to make them scale and self-service and the opportunities are large for this. >> but, david, let's say you're a share hold are and listening to you my instinct would be sell. you don't care what is working now. it's a profit well ahead of when people thought so what do you say had hey, listen, don't worry

about? president is cash flow speed of growth is declining. >> yeah. i would say over time the cash flow will continue to grow and, you know, think about it. we are making a wonderful balance here. we're bullish on the company and the stock. i feel what happened is we discovered that you've got an absolutely great business. it's great even after the pandemic. but it's not worth what it is selling for. because, frankly, you're trying to grow. i'm trying to get to this point. you're growing the company like mad. it's terrific. but in this particular market, it is not looking for one. can we say that, you know, who cares about the market one day it'll get back to being

rational or the market rational and when your stock is selling at 141 was irrational. >> yeah. i can't comment on the rationality of this stock. i can tell you the consistency of our vision. we're building a platform that will someday have a billion monthly actives on we'll have people in a safe and civil way playing, learning, going to work, experiencing concerts we're consistent with the vision. >> we both know. this is the way it should be the other guys, twitter, metaverse facebook they believe in engagement engagement, in many ways, is a curse word we know what it is it's battle. it's foul. we have no room for. but might someone say, you know, you want to make a lot of money? being an engagement. not be civil. >> yeah. i think it's primarily an

innovation company and civility company. we're not driving this to by some opt myzation metric we're at the core for the last 16 years focussed on safety and civility. >> all right everybody i know is playing nfl tycoons. 0 how many are in the pipe job own enterprise and individual and something disney has to have. a para mount plus has to have. nobody else has it other than you. >> yeah. what our vision is always been is self-service and you dc and what we've done for games and for play where there are millions and millions of

creators on our platform making everything on our platform that is the vision for the brand experiences. a lot of functionality we have in the pipeline whether it's our talent hub that brings creators together with brands, whether it's the ability for brands to feature and boost themselves will more and more make this self-service so we adopt see it as an enterprise sales thing as much as let's make it self-service. >> one word noticeably absent from the materials is metaverse. i wonder i see it here once or twice but it's not all over the place how do you think about that word do you think it's an attempt by others to sort of take over with what you've created for years? >> yeah. we don't think we created this necessarily. we can go back 40 years to snow crash and wonderful authors and futures. so this is a vision that we're sheparding in with safety and

civility it's a vision that we've been building for 16 years. we've been building on a focus of civility and building on focus of innovation and building on a focus of everything on the platform is ugc. we'll continue to drive in that direction. >> you know another thing i want to get at. there's a point on the call recently it picked up around december for the holiday. what i don't want to see you guys is be some sort of dmaen is gift giving. i know the gift cards have worked should we start thinking about roblox as a great retail play for the fourth quarter >> more and more the fabric of what we do is going to integrate not just with play but with learning our educational fund we've got a wonderful project with stem robotics, for example, to teach millions of kids s.t.e.m more and more concerts will be using roblox as a place, you know, year around to reach fans and ultimately we may, you know, as we experiment at roblox run parts of our office on roblox.

so i think the future is this is a utility. it's used every day for a wide range of uses. >> i want to thank you he laid out a long-term vision short term a little pain for shareholders not little pain. real pain. you're a visionary we hope the visionaries will one day will get paid again like jeff bezos did thank you. >> thank you before we go to break this morning. time for the bond report we did get to industrial production ahead. >> thank you very much. >> and cap utilization was ahead. with that markets down a touch the curve is a little bit lower here we'll be right back.

nurse mariyam sabo knows a moment this pure... ...demands a lotion this pure. new gold bond pure moisture lotion. 24-hour hydration. no parabens, dyes, or fragrances. gold bond. champion your skin. (rhythmic electro rock music) (crowd cheering) - bito, bito, bito, bito! - [announcer] bito, the first u.s. bitcoin-linked etf.

i'm mark and i live in vero beach, florida. (crowd cheering) - bito, bito, bito, bito! my wife and i have three children. ruthann and i like to hike. we eat healthy. we exercise. i noticed i wasn't as sharp as i used to be. my wife introduced me to prevagen and so i said "yeah, i'll try it out." i noticed that i felt sharper, i felt like i was able to respond to things quicker. and i thought, yeah, it works for me.

prevagen. healthier brain. better life. 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. (doorbell rings) - [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. a quick reminder here. you can always get in on the

cnbc investing club with crame cnbc.com/john theclub orrous the q.r. code. the s&p down 140 we're hoping things will pick up by q3.

yeah...uhhh... [children laughing] doug? [ding] never settle with power e*trade. it has easy-to-use tools and some of the lowest prices. get e*trade and start trading today. 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

time to check on trading nvidia, they put out a release you can dismiss these things people do dismiss parts of this all the type they're talking about a multi-year development for the next generation auto driving systems plus a.i.-enabled services well, elon musk, that's what you're supposed to have, and i think jenson is going to offer a level of cars that ford has go thinking about, gm, and, yes, mostly elon musk i love musk, but i'm sure he's probably thinking, well, that's a real interesting platform. >> rimando is on the tape saying chips have got to be made in this country, and it's dangerous that they're not. >> sure is taiwan, taiwan

if you're not worried about taiwan, then you have your head in the sand. i'm much more worried about taiwan than ukraine. ukraine is not strategic it's obviously geopolitical, but taiwan, we won't even have a good military if they take taiwan. >> and then a lot of headlines lately about both russia and china trying to build interests in latin america, right? >> you know, it's incredible when you go overseas, you're always amazed. you look at the caribbean islands. it looks like it's built like china. and then you go elsewhere. people who don't understand, these countries are like what we were china's like what we were in the '50s and '60s. they're everywhere. >> jim, we'll see you soon. >> look, they've done a lot, but i do feel taiwan is a strategic asset. >> geo politics definitely having some influence today.

dow's down 200 when we return, the ceo of invitation homes gives a perspective on homes followed by the ceo of wynn since taking the the ceo of wynn since taking the top job.w chapter. wellness well done. never settle with power e*trade. it has powerful, easy-to-use tools to help you find opportunities,

24/7 support when you need answers, plus some of the lowest options in futures contract prices around. [ding] get e*trade and start trading today. (doorbell ringing) - [woman] then lift those legs, ladies. back and rest and- - [announcer] chewphoria: the exact moment the only thing you're craving meets your mouth. ♪ oh yeah - [announcer] on time, lowest price, or we'll make it right. grubhub. 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. we thought we had planned carefully for our retirement. but we quickly realized we needed a way to supplement our income. 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. you are an electric vehicle. electricity powers your heart. want to feel your heart beat faster? ♪ (heart beat music) ♪ drive an electric car. made by a company whose evs have gone five billion miles... for every highway... every driveway... ...and every speedway. and where the loudest sound... ...is the beat of your electric heart. this is the new nissan. ♪ ♪

good wednesday morning welcome to another hour of "squawk on the street. david faye bore is on assignment dow's down about 200 here. earnings, a little bit rough roblox, shopify, macro data, not too bad. business inventory's out a few minutes ago. rick santelli's got that hey, rick. >> hi, carl. oh, my gosh. up, 2.1% for december, business inventories. have to go back well over 40 years to find a higher inventory-building level this is incredible think about it we were up 1.3%. that was the highest last month since '82. the reason it's so important is because year-end inventory building really boosted gdp. this is a december number. this is going to add into gdp.

last month they went up from 1.3 to 1.5 here's fly in the ointment are we going to be taking away with respect to q1 big question and an even bigger question, how long are prices affected what's going on in housing for that, we're going head to diana olick of the housing builders association >> it fell one point in february to 82. right in line with expectations. that is the second straight month of declines. anything above 50 is considered positive builders are blaming big supply chain issues production disruptions are so severe that many builders are waiting months to receive cabinets, garage doors, countertops, and appliances. these delivery delays are raising construct costs and

pricing prospective buyers out of the market. now, the index's three components, current sales incr increases rose 1 point sales fell 2 points. buyer traffic fell 4 points. morgan >> i'm waiting for front doors myself, diana. thank you. here are three big movers that we're watching this morning. airbnb on the rise after a strong earnings report forecasting a strong start to this year that could exceed 2019 levels those shares are up more than 2% right now. kraft heinz on the move after beating estimates, higher pricing, sustained demand for its packaged meals and condiments, a key driver there you she the shares at 4.5%, almost 5%. finally, wynn resorts not winning this morning after a

wider than expected loss macau drops 4.2. do not miss those numbers with ceo craig billings this is his first broadcast interview since taking the helm, and it will happen a little bit later. mike. >> thank you, morgan in the meantime the u.s. and nato are reporting they've seen no sign of pullbacks from russia at the board of ukraine even though moscow said they're considering a partial military with draw. kayla tausche joins us with more >> reporter: they said there is no de-escalation >> we have heard the signs from moscow about readiness to continue diplomatic efforts, but so far we have not seen any de-escalation on the ground.

on the contrary, it appears that russia continues their military buildup. >> now, ukrainian officials are suggestioning russia is behind cyber attacks that began yesterday on banks and the military they're marking a national day of unity as reports of an invasion are taking place. president biden said an invasion could still happen in the days and weeks ahead, one that would impose a deadly human toll on ukrainians and russians alike and an increase on gas prices for americans. >> i'll not pretend this will be painle it could impact our energy prices we're coordinating with major energy consumers and producers we're prepared to employ all the tools and authority at our disposal. >> among those tools is a

temporary suspension on the federal gas tax and an 18.5 cent levy to go toward highway repairs. they would pause that until next year other groups remain opposed to such a move. carl >> that's a big piece of the puzzle stocks continue to fall this morning continuing what's been a volatile ride after the s&p saw an increase yesterday. good to see you, delano. >> thank you. >> i wonder how much of the suppress end on animal spirits you think geo politics are right now. >> i thinkit's a pretty big suppressant, and i think one of the big reasons why there's geo politics risk it's hard to trade and something we don't like to overplay it's something you have to wait it out

that's why our cash positions have been historically higher. if you want to keep watching the news flow, we're definitely moderating that. it's definitely played a big part, carl. >> what's a decent cash balance or position right now. and i wonder, b.o.a. had their fundmanager meeting. i wonder if that's where the true tolerance of pain lies. >> that could be around there. really for us we like to keep clients between that 1% and 10%, but that would obviously shift toward the higher range when we want to be a little more risk-averse. risk-off has been the trade-off. you see it in all different areas of the market, currencies, obviously to the equity markets. if you look at multiples, those guys coming down, you mention trading lower after the most recent earnings. there are tracts of

opportunities that have pulled off considerably, and we're looking to add those that we had high conviction on that's going to be the focus over the next months it's 100 points is what's projected into the increase. so that's something we're getting close to the funds market the next will be very, very interesting. >> does that mean you're wading into growth right now and you see specific buying opportunities? where are they >> yes, definitely if you look at, you know, the numbers that kim out, underneath that, you know, e mer-merchants that was the highest 14% increase on that type of thing, showing me underneath everything, e-commerce is still strong amazon has pulled back a little bit this year to date. but not much there are some areas in growth and obviously investors should be looking in those areas.

we like some of your mega cap earnings or stocks we've always been in and we add to the positions we've pulled babb on a little bit. >> delano, i'm wondering how your clients are navigating things right here. i'm looking at some conflicting signals in terms of what individual investors are doing and feeling. the survey work looks like people are pretty cautious to bearish. lots of inflows to equity funds. it seems that the habit people got into starting in may of 2020, plowing ahead and throwing cash into equities, what's the posture in general among your clients? >> i think there's been an interesting, you know, kind of exuberance we've seen before that saw it over the last couple offeers in the market. it's still bear, but a different light. they now understand the market does have some fluctuations it to, especially when you're looking at rising rates. we haven't done that in a while. i think younger investors are

starting to see how the market works. specifically what i've seen in network and social media, people are realizing that, but they're not deterred from investing. a lot of investors see this as an opportunity as they saw march 2020 as an tune to get invested. that exuberance as far as everything rising may have left, but it's now an understanding of the opportunities, e valuations, and other things, maybe we want to add to that. >> you've got expedia, hilton, marriott, disney dropping the mask requirement at the parks, moderna talking about maybe this is truly the last wave of the pandemic so to speak i wonder do you think the recovery play is getting too hot, or does it make sense given what some of the metries are showing? >> it does make sense given some of the metrics even in new york i know california pulled back

some mandates and disney showed great strengths in the parks and recreations. the numbers were strong there. you don't want to get too far ahead of ourselves i think we're in a situation where the pandemic controls a lot of different situation as, even for these travel names. you don't want to get too ahead of yourself in those stocks. a lot of them have been battered disney has been down for the past couple of years we're in some things where we're fighting and it remains to be seen if we're in clear waters yet. >> we're definitely pray nothing more curveballs. thank you so much. good to see you. as we head to a quick break, here's a look at the roadmap for the rest of the hour interest rates, housing, and inflation. invitation homes ceo is joining

us plus, roblox coming back to reality this morning we'll break down why that stock is falling more than 20% in the first hour. and finally, you heard it at the top of the hour. wynn ceo craig billings. a big hour aad n'go anywhere.

time for etf spotlight

arkw include growing base, tesla, and roblox. wa watch this this is what the ceo told us last month about growth strategy >> we're not touching platform and shopping we're being very gentle on optimization really active to user growth, creating a safe and civil plat fom, and driving our numbers. so we're focused on user and engagement growth. that said, our economy is scaling very nicely with our user growth. >> i talked a louc about scale and user growth. cash flow is the issue in this environment, are they bl behind the times >> it's interesting. we're viewing it in light of where the stock got at the highest. 140.

all the excitement about the power of the platform, extrapolate from there the valuation, but when they did a direct listing less than a year ago, the initial reference price was 45 the first trade was 64.5 so the fact that it got to 140 makes it seem like, i think, the bigger kind of disappointment perhaps than it is in terms of what their long-term path might have been. that being said, obviously this is a market that's going to want cash flow and resolve and prove that you can get people to pay a opposed to just log on, morgan. >> it's also notable the days of social media platforms and tech platforms that are based on daily active users, the whole idea of move fast, break things has sort of passed because at a time where content moderation and things like paying close attention to the platform and the engagement that's happening on the platform seems to be very much in focus and an investment

being made out of the gate where roblox is concerned. since it's children normally on this site, it's pretty northable. kids ages 9 to 12 are playing on row block. this idea of quality users, quality engagement is something to watch keep this in mind as people go out of their houses and do more things that are not on screens it speaks to the rally we're seeing in travel stock this week. >> we mentioned the all-time highs for some of the hotel names, that's for sure meantime the journal is reporting short sellers are the new target of a wide-ranging doj investigation. our leslie picker has more. >> it includes money waters carson block who was served with a search warrant last year to

review his phones and other sources this is according to a source i spoke with a short while ago block is one of 25 short sellers targetted in this wide-ranging probe that's seeking evidence really that could prove out this theory that other activists and investors were working on together to drive down stock prices "the wall street journal" reported spoofing and scalping are part of the investigation. scalping is when they close out their positions without disclosing that they've done so. it's my understanding that no charges have been made at this time and the investigation is ongoing and quick moving it's something we've seen time and time again, however, if there's more going on behind the scenes, that's the subject of what doj wants to figure out. >> leslie, presumably and

hopefully, the department of justice isn't looking to sort of say simply putting out a negative report on the stock is itself an issue. i would imagine it's about prior knowledge of certain investors or other arrangements to coordinate market activity that seems to be the line that they want to see whether it was crossed. >> that's right. the bread and butter of what short sellers do isn't illegal this idea if you're short of stock and put out a report on that stock, that in and of itself is not illegal. what they're concerned about is whether that report has been kind of bandied about amid other investors ahead of time in a way they would have prior knowledge that this short selling is taking place and that before the public is informed that they are short and here's why, which tends to drive down the stock price, whether there's some sort of conjunction taking place behind the scenes is the subject of this probe. >> how much o this stems from everything we saw with game stop

early last year. i know it's really illegal it's very much in focus with everything we saw in game stop and the run-up on the meme stocks last january. i wonder if we would be having this conversation and you'd be seeing this type of investigation taking place if it wasn't for the meme media. >> that's a great question if you actually look at the level of short interest that's out there, it's at or near record lows. so it doesn't have to do with there's this overwhelming of short interest in the market right now. and, of course, short sellers did attract a lot of attention last year and have continued do so given kind of all of the events surrounding game stop and short squeeze and things of that nature that said i don't have direct knowledge that that was actually the catalyst that got the justice department's attention and created this probe, however, the timing is interesting given the overall level of short selling, the short selling that was sold they left after game stop and said he wasn't going to do any

activists. he wasn't going to public it and was going to focus on long reports because he was worried about being squeezed so it is interesting i'm very curious to see what the motivation was here. >> leslie picker, thank you. invitation homes, one of the neigh's biggest owners is under pressure following results don't miss a check on housing rates and more with ceo tanner that's coming up next. stay with us >> announcer: etf spot lite is >> announcer: etf spot lite is sponsored by 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

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.

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? am i ready? i can't tell you everything. but if you want to make history, you gotta call your own shots. we going to the league!

it's big news for the market interns of the increment, but in terms of bringing that down, it will have an impact, but the bigger impact is can i get inflation under control and can consumers feel good about having money to spend on the future that would keep driving the great u.s. economy and has to be successful for the world to be

successful. >> that's interesting commentary from bank of america's moynihan. our next guest joins us to discuss how all this directly impacts his industry invitation holmes ceo dallas tanner great to have you back on the show given the fact we've seen interest rates start to move high eric we have a fed beginning to tightighten. nonetheless it's starting to tighten. >> you would think rising rates would put on some of the pressure you said it best, morgan we're still at incredibly low rates on a historical basis. the act to purchase a home is very doable but it's more a

housing shortage. >> the last quarter it looks like there were 1,500 homes for $650 million are you still able to keep acquiring homes at the price you would like. >> we wish we could buy more demand is so large for the product in terms of people wanting leasing lifestyle. we announced a partnership with pulte homes last year. we're starting to see some of that come into our business. but supplies are definitely tight. we're risk adjusted return investors. we want to make sure we find properties that will stay in our partn portfolio for a long period of time and create an experience for our residents that are second to none we'll continue to find it. most portly, the customers staying with us longer, they really like the product, and they're trying to drive ancillary services that will make that experience much better >> dallas, looking at the

acceleration of rents on the leases, on the fourth quarter on renewables, 9% rent growth, a new lease is 17.3%. now, how sustainable is that is that just a catch-up move, or can that contain you >> well, trees don't grow to the sky, let's be clear. we're dealing with a very unique situation. you're seeing that, carl, in our new lease numbers. on the renewal side, you want to make sure you're working with residents and customers. we have quite a bit of em beed loss to our lease. we do that with potential use over time. we would expect things to normalize. we talk about rates creeping up, things slowing down. but it's a long-term healthy growth and it will create a longer term healthy environmental. you can't have this stimulus in the economy forever without having a consequence, and we're seeing that whether it's costs are outsold when you're trying to buy a new car or across all

markets in terms of where rental prices are going. >> i wonder, when you think about it, there have been pieces written lately about consumers who are equity-rich in houses they home and o the potential to unlock spending power. i wonder how easy that is or if it's touching too many hot stoves >> it's a great point. economists would tell you right now people have a lot more equity in their homes now than they did in 2005 and 2006. that's a fact. you know, it would be interesting as rates creep to see how people think about the use of a he lock if your single-home family is your main form of investment time will tell the fed's doing the right thing. it will help to slow things down you've got to remember, we had trillions of dollars of stimulus come into people's balance

sheets residents are only spending 25% of their monthly income on rent. >> finally, dallas, i want to get to a response where there's a new allegation that a whistle blow hearse alleged a company has underpaid by millions of dollars, much of this taking place in cities across the california how does this play out >>. >> from time to time we get questions from municipalities. they'll make sure they can address the mat were the specific city you're referencing, but these things can come up from time to time, and we'll do our best to remediate. >> dallas taner, thanks for joining us. >> thanks for having me. >> wynn shares down 20%. in his first broadcast interview since taking the home. ceo craig billings joins us

next next don't go away. the future is crunk! (laughs) anything else you wanna know? is the hype too much? am i ready? i can't tell you everything. but if you want to make history, you gotta call your own shots. we going to the league!

i'm frank holland. here's your czech renbc update s hour the documents will go to the congressional panel. investigating the capitol hill insurrection on january 6th. the russian government has released video of tanks heading home after taking part in military drills. it says it's pulling troops back from locationings near ukraine, however, nato leaders and u.s. secretary blinken say they have seen no indication of drawdown of russian troops that they say are threatening ukraine. off the coast of canada, rescuers have found another three bodies from a fishing trawler that sank in the seas. there are 11 crew members still missing. only three survives have been pulled from those blue waters.

and a rare 15 carat blue diamond is being auctioned at sotheby's. they're holding a single item in april. >> it is a very pretty looking diamond, i'll say. it almost looks like a sapphire. frank holland, thank you. meantime, is the pandemic in its final stages that's the key question investors are grappling with moderna seems to think so. take a listen. >> i think it's possible i think as it's involves, we're going the see less and less virulent viruss. >> another bullish sign, the

recovery of travel and dom chu has names for us. >> many have been outperforming over the course of the past couple of weeks, maybe longer. take for example hotel operators, hilton, hyatt, and marriott all trading at higher levels over the course of just the past 12 months travel booking names like expedia, tripadvisor, booking holdings are in further positive territory. expedia is trading at a new record-high today since december also airbnb trading on a fresh 52-week high airbnb says its current bookings is expected to see more. you've got united, american, delta. on the cruise side it's karen nall, royal caribbean, both up

double digits so far in february as we get further and further from the peak of the omicron variant, we'll continue to monitor how these different baskets of travel stocks perform overall. travel and leisure they want to get back to going on vacation. we'll see if they can react positively going forward. >> thank you very much. in the meantime wynn resorts. craig billings and our very own contessa brewer. >> think you for that. craig, it's great to see you this morning congratulations on your first earnings call as ceo of wynn resorts. >> thank you. >> you really grabbed a lot of attention with this new strategy that they're going to engage in. leasing it back and continuing to operate it. if that's a strategy that works in boston, is it a strategy you would consider elsewhere

>> thanks, contessa. aisle i'll circle back in a minute way tonight give kudos to wynn they had a great season in light of the travel restrictions the macau organization delivering us a significant project in the uae back to your question, we look at on core boston harbor and the revenue and gaming markets and the fact we were able to structure a lease that allows us to flex the property we view both of those things as good for the company and that gave us comfort to execute a sale lease back in austin. we have a slightly different approach in las vegas. they peaked to trough.

they have different revenue than the gaming market. we like to maintain levels so we really don't see the sale leaseback structure as conducive to our operations here in vegas. >> let's talk a little bit about vegas. you blew away results there. we saw customers coming in, spending more on rooms, spending more on food and beverage. it was a record-setting year for you. how do you see 2022? you see a slowdown in occupancy rates you said in january. you haven't seen a return of international travel or group business where will the growth come from in 2022 that. >> you're exactly right. 2021 was a record year there were a number of things

that you referenced that weren't back in full force in 2021 the group business was condensed in certain weeks and certain months as you mentioned, international play really wasn't there to the extent they come back in 2022 coupled with the very healthy spending levels that we're seeing in the business currently, we think 2022 will be a great year you're correct it was impacted by omicron that was a city-wide phenomenon. we had a 61% occupancy in january. we expect to exit in march back to the mid-80s. >> speaking of that, it seems to me when we've seen this from other luxury brands, waldorf, ritz-carlton, they seem to have no impact from inflation, no impact from consumer sentiment are you somewhat insulated from some of these more macroconcerns? >> we believe so we're in a luxurious position

like other hotel operators, able to repraise every day. we had a stunning time and so we believe that we can continue to drive where necessary. >> there was a publish report that you were looking to sell the interactive business you would not confirm this on the call last night. what is it we've seen you go ahead with the launch in new york and louisiana. you pulled back on your marketing spend, promotional spend. where do you stand with this business >> we don't comment on press speculation. as we've been saying since q3, a lot of the activity in the market today is irrational and unsustainable, so we have taking a stand over the course of really the past three months to be very focused on performance marketing channels we have launched in new york as

you mentioned, louisiana as well, and we're focused driving long-term shareholder value. what we're not interesting in doing is spending several billion dollar just to scale >> i wanted to ask you about earnings over property in the united emirates. it seemed to me you felt the need to tackle some outside concerns about whether gaming is going to be legal in the uae. >> yeah. gaming is legal that's where we'll construct our integrated resort. i wassing are responding to a lot of press speculation on what form gaming might take, and so i really wanted to clear the air on the earnings call. >> tell me what you see as

potential going in and establishing a presence in the middle east. >> sure. the uae is a pretty amazing place. 10 million people. 9 million of them are ex-pats. they have made a significant push to become a tourism hub when we opened this resort, 95% of the world's population will be within eight hours of a win re wynn resort. >> when i started covering gaming, i never thought i'd see a situation like that. what's your sense that macaw is ready for a turn around that we will see in 2022 some sort penalty up demand and rebound the way we've seen in las vegas. >> i'm quite pullbullish on macu

here we are with a potential reopening of the market with an incredible amount of pent-up demand really it's a government policy approach designed to diversify macau. i'm excited about it. >> craig, thank you very much for this first interview with us at cnbc. we hope it will be the first of many. >> thank you. >> morgan? >> all right, contessa brewer, thank you. as we head to break, upstart holdings reporting the company reporting strong qs. flat 35% right now flat 35% right now stay with us i'm retired greg, you know this. people are taking financial advice from memes. [baby spits out milk] i'll get my onesies®. ♪ “baby one more time” by britney spears ♪ e*trade now from nley.

(vo) verizon is going ultra! and so is manny! event planning with our best business unlimited plan ever! with 5g ultra wideband now in many more cities and up to 10 times the speed at no extra cost, the downloads are flying fast! verizon is going ultra, so your business can too.

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? am i ready? i can't tell you everything. but if you want to make history, you gotta call your own shots. we going to the league!

reducing our carbon emissions to net zero may be our biggest challenge yet. there's no single action that will lead us to carbon neutrality. but there is a single source of essential sustainability intelligence. s&p global sustainable1.

retail strong this morning steve liesman is here with the breakdown. >> amid stronger consumer sentiment numbers, another wave of covid and soaring inflation, consumers soothe themselves by shopping with some abandon both online and at the mall january retail sales surging by 3.8% and more than making up for that christmastime decline we had, revised to lower than 2.5%. take away autos, and we had the best month since january 20221, and the sales grew that feeds into gdp. the january figures point to a swift rebound in consumer spending momentum at the start of the year and puts upside risk to our forecast for flat real gdp growth in q1 consumers hit the malls as much as they clicked on "buy" on

their computers. autos were up 5.7% internet retails was up 14.5%. even department stories, furniture doing well essentially it's been flat for the past three months. if january numbers shows any indication that it's enough to overcome inflation, the loss of fi fiscal stimulus or if consumers start to balk at these higher prices and pull back i haven't heard much of that yet, mining. >> no. no real indications of that, steve. they recapture some of the inflation as well. for more on the recent sector let's brick in the boss matthew let's talk about the content of the companies that youcover, not really seeing that

much of a bounce in a lot of the store chains macy's is up 4%. what's your straight read on what we're seeing, and does it make you revise your expectations for overall consumer activity this quarter >> thanks for having me on the way i would size this up, we saw a very strong holiday by our chase credit card data consumer spending was up 80% that's the best in january i think what's more important, we're seeing a further acceleration in february omicron continues to pass. what we're actually focused on is the forward look. you look at the stimulus a year ago in march on the other side of that, our view is the underlying consumer picture, which is wedded to employment and wages are obviously in possible tissue

territory steals the show. inflation is the other dynamic we're watching through the front half of february, we think it remains robust. >> if the overall comp line looks like it's going to continue, it looks like it would have to be an opportunity within brick and mortar because they have looked at it. know rate hikes are going up where would you look in terms of ben if irys? >> three things we're looking at athletic, nike, under armour, your lulu lemmon come out of this stronger than what they were before. we're looking at margin, structural advantages coming up. you have handbags, capri,

tapestry then we're looking at overall better models coming out of. this i would put levi's in that category, bath & bodyworks in that category and some of the specialty players, which would be american eagle. another name we're watching is macy's i think 2022 relative to last year, i think it's much more stock selection focused versus 22 you had some of these underlying tailwinds for the consumer that points to the models in my opinion that are less value oriented that could see market deterioration on the other side of this. >> yeah. we've seen a couple of downgrades in the last couple of weeks along the street some of it was related to supply chain worries, although, i keep saying vietnam is dropping some

covid retriczs where are we on apparel right now? >> great question, carl. i think on the supply chain what you're seeing, that picture is actually improving what's not at a fast enough pac. what's not, at a fast enough pace, congestion getting from point a. to point b. the factories, output coming out from overseas, i think that, that part is in the rearview mirror the congestion, look, hour view back half of the year. come summer. now, that's also not welcome news to the retailers, as that's likely posing some negotiations on the transportation side that i think some retailers may have to lock in higher rates for the next 12 months i think in the back half of the year you're going to see some port congestion and transportation headwinds begin to ease and, remember, most companies i cover, facing 300 to

400 basis points of mix on the transaction. using airfreight materially more costly i think that's your margin opportunity in the back half of the year, and last piece to keep in mind. remember, we still have not seen global mobility or tourism revert back. anywhere close to 2019 levels. none of my companies are planning for that are in the back half of the year. if we don't see another variant pop up, all close to the severio omicron or worse, opportunity on the up side for the margin particularly across the global brands i cover. >> yeah. some relief perhaps coming in months to come matthew, thanks. appreciate your take today. >> thanks for having me. coming up this morning on "techcheck," shopify's ceo breaking down results that has shares falling tayod one of the worst days for that stock in its history top of the hour. dow steady here down about

200. more "squawk on the street" more "squawk on the street" continues in a moment. out of convenience, or necessity. we can explo with better outcomes. with app, cloud and anywhere workspace solutions, vmware helps companies navigate change-- meeting them where they are, and getting them where they want to be. faster. vmware. welcome change. [sound of helicopter blades] ugh... they found me. ♪ ♪ nice suits, you guys blend right in. the world needs you 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.

during freb, featuring black history and ways to make an impact in our communities.

>> i think other people can impact our communities through two ways one, to promote personal finance in every school system the second thing, if you own a business, or if you are executive at a business hire a college intern to give exposure to the industry. two things everyone living it have an impact on.

stuff. we love stuff. and there's some really great stuff out there. but i doubt that any of us 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 ♪ 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

tonight, latest on the tense standoff between russia and strt a lack of spring training. >> the facts, truth, the news with shepard smith, 7:00 eastern. cnbc. welcome back doj seizing $3.6 billion worth of stolen bitcoin last week in the largest crypto bust today. just how much stolen crypto is out there and who holds it eamon javers has the story for us hi, eamon. >> good morning, morgan. mysterious movement's that bitcoin late in the day january 31st first caught everyone's attention. when the department of justice announced arrest of ilia liechtenstein and self-proclaimed crocodile of wall street explaining they were be ones that took the crypto intending to give it back to the victim

the question, how much crypto is controlled by scammers and how much more could law enforcement try to claw back beginning to answer that question in a new report out today. the firm says it's identified thousands of what they call criminal whales. private wallets with more than $1 million in crypto receiving more than 10% of funds from illicit addresses. saying 4,068 criminally whales, total holdings $25 billion worth of crypto. the criminal accounts make up 3.7% of all crypto whales, meaning the vast majority of crypto millionaires got their funds from legit sources the firm also says the ill-gotten game come from dark net markets mostly and time zone analysis of criminal whales doesn't conclusively prove they are controlled from russia that means it will be difficult for law enforcement to get at

much of that money back to you. >> $25 billion still a lot. russia, of course, there we go a part of the conversation eamon javers, thank you. before we go, another busy afternoon coming doordash, more, also fed minutes at 2:00 p.m. eastern and monitor the latest with ukraine. meantime, major averages all lower this morning s&p is down about three quarters of 1 percent that does it for us on "squawk on the street. "techcheck" starts now. ♪ good wednesday morning welcome to "techcheck. i'm carl quintanilla with deirdre bosa and jon fortt today, bookings up 59 year on year hearing