to be. it's there's a lot of other types of companies that, again, are trading at big multiple of sales where there's very little chance of you getting your money back in the short term. >> jason, thank you very much. we'll see you soon. >> thank you we thank you for being with us today. we'll see you tomorrow time for "squawk on the street." good thursday morning. welcome to squa"squawk on the street." i'm carl quintanilla with jim cramer david faber is on assignment we have decent results from walmart and sisco and door dash. road map begins with walmart shaking off the inflationary head winds and posting stronger sales on the holiday quarter

launching sisco and nvidia delivering good guidance but seeing opposite investor reaction door dash shares are surgerying -- surging. we'll start with the markets and the ukraine headlines, jim we'll go back to yesterday's lows. >> yeah. it's important people keep track of the winners today they'll be overlooked because of ukraine. now i've been suggesting that if has to be the deal between ukraine and russia it has to happen now and it's two phased. one is ukraine has to say, listen, we won't join nato you have to get the malicious out of our country you have to take the military off the corners. i think people are misinterpreting some things here kyiv is 236 miles from the border of russia only nine miles from belarus if you use 40 miles a day, which is what the russians are capable

of is two days if they launch today, they'll be sunday i don't think people understand ukraine surrenders or ukraine is taken over it's going to happen. >> that's why the nato secretary general said they have the tools in place to launch a full-fledged invasion with little no warning. the reports of shelling the kindergarten are concerning. the defense secretary here says that not only are they inching closer to the border they're stocking up on the blood. we're hearing the 20th of february, the end of the olympics. >> the olympics they invaded crimea it's the completion of this. now you have to understand that they're there. russians are there and so it's really important for ukraine to admit it's not going to nato. that's what the russians care about. but i don't know what you do i think people are misinterpreting the idea there's going to be a full-fledged war

because ukraine doesn't have the ability to wage war even for a day. so this is all got to be diplomatic and then i guess, obviously, we'll see what the germans do in terms of energy. that could be an issue but this is going to be over very fast. if there is no deal. i'm not going for apiecement by any means. i'm saying that ukraine has to say the malicious -- in many ways it's more important they're there. i don't understand why people don't get that belarus is two days from kyiv so this is going to be over by sunday, if we let them get away with it. >> yeah. blinken will speak at a u.n. security city council at 10:00 a.m. this morning. we'll be looking at headlines on that why does the market care so much about this particular? is it about energy >> i think it's about -- >> currencies? >> go back to the biden speech this week, which will frost and i really -- were talking about

it should have been done a month ago. what are severe consequences the military or economic could there be a boycott of china? and the unbelievable interview with secretary perry by brian sullivan that russia's economy is the size of texas you theoretically could shut down the russian economy if you're willing to have a kind of, let's say an unbelievable winter or final winter you get to the spring and it's not much of an issue. >> he's losing leverage every day it gets warmer. >> yes people don't understand that the rupee is stronger than i thought. we have to understand we in america are watching this and this could be, as joe kernen said, right before 1990 when we invade we fight back against -- we fight back against iraq and it ends quickly. unfortunately it could be the same for ukraine. >> right

so we have given all of that how do we process good numbers out of walmart, inventory up, comes pretty good, margins okay. >> if you're looking for negative, they go back and forth with doug mcmillen there's a chance you could say wait a second first quarter down that's what they told you beforehand i like the walmart call very much because of where the stock is at it goes to 139. it goes to 135 again, doug mcmillen is no nonpromotional you get the great headlines. buy back they bought back this much last year you have a sense they have everything under control supply chain. but then doug is basically doesn't ever support the theory of you have to buy walmart you're not going get a big move. six out of the last seven quarters -- >> yeah. it's not a good earnings print

stock. fuel pretty good on a two-year stack. e commerce is up 70. >> i thought that was good we all were waiting for walmart plus to have a break out move. i thought the breakout was walmart advertising. you make $2 billion. that's $2 billion! that's found money this is a huge company and you come back and say, i mean, i heard someone say, listen, all you have to do and say it's the worst one there's a lot of chart following now. people are so lost because of ukraine. they default to charting and walmart looks terrible i go back and forth with walmart. i think it gets better and better but the stock doesn't. >> a big part of the debate with walmart is worries about the low end consumer are they going relay more on credit cards b of a has data even with gasoline they're spending on apparel and restaurants.

>> brian moynihan disagrees on restaurants. my theory that spending isn't down there's fewer restaurants and there's fewer to spend we'll be talking to tony later today. brian moynihan is right, the consumer is doing better than we think. it should cut well for walmart but cuts well for macy's a little more discretion there. >> yeah. these gucci numbers are pretty strong. >> yeah. up 47. >> yeah. lvmh was up in the high 30s. we talk about the richest men, i mean, it's people he's up there. by the way, elon musk tweeting at charlie munger wanting to bet against it elon musk is up there as wealthy. >> yeah. he has news of his own this morning. the court filing scc is trying to squelch his right to free speech.

>> i don't like that. >> yeah. >> i didn't like the hitler meme leave hitler out of the equation when you talk about history in 1938 and,' 39 you talk about germany. tech earnings are a big piece of the puzzle. stronger than expected results for nvidia and sisco we'll talk with chuck robins of sisco in the next hour 84 cents beats by three. revenue ahead up by six. the guide, jim, to the upside. >> we'll speak to him later. the best visibility comes around when chuck got there, they didn't have any of the megs. they didn't have alphabet or google they didn't have facebook. now they have them all the other thing, despite supply

chain pressures, they crushed it there were some people who got downgraded i won't pick on them they got it so wrong and had a lot of people betting against sisco. sisco is a good quarter. it's multiple quarters they had about $44 billion in revenue. you have to do it radical. you have to rate the quarter you can't say do it on the old sisco. nvidia is down they started goingdown the moment they said business is break. give me a break. it's one of the stocks you must remember trades incredibly well and right into the speech that jenson wang who, by the way, is the goat he's the both. goat. there's no doubt about it he laid out a vision yesterday that is so 22nd sechblg i are. >> yeah.

people are zeroing in on auto and robotic revenue down a touch. >> yeah. this is the year of auto everyone will go on their platform except gm the auto business will ramp up this quarter how do i bet against these guys? there's no doubt in my mind that auto will be a big driver of the second half. i know people are like, wow, it was down they were very unapologetic about it it's down. but wait until you see next quarter. >> yeah. take a listen to what jesen huang said about being supply constrained. >> we are supply constrained our demand is greater than our supply we expect to be demand

constrained but our supply base will be increased this quarter. >> who is using their platform the platform is based on gaming. remember it's real life gaming and you don't need goggles who is using it? disney and facebook. they were pitched as big customers. we'll go back to facebook. the metaverse that mark zuckerberg outlined looks like a cartoon. it isn't a cartoon it's you in real life 3d on a flat screen. they push back on restaurants. they're saying we don't want to use that as the bordering. you go to the drive through and they spot the license. it looks up what you ordered

last time and said would you like the same mc-whatever. they're ready. if you speak a different -- it speaks 28 languages. we're ending that. you can save so much labor when the digital twin comes in. the digital twin is smarter than you. >> it reminds me of the scene in "minority report." >> yeah. this time they know it looks like you gained a little weight during the pandemic. can you go 34 instead of 32? it's beyond me sometimes it's hard. you're listening to someone who is smarter than everybody. listen, elon musk. jenson is calm he explains it you don't believe it until you see it until i saw me as digital twin, i thought i would need goggles. >> are you frustrated by the characterization it's been several reports of earnings out of nvidia that, oh, underwhelming relative to history. a victim of their own success. they didn't blow it away this

time >>well, there was a headline the moment that the story broke. underwhelming numbers. i'm thinking what do you have to do to please the market? every single line item, whether it be metaverse, gaming, whether it be high performance computing, they can't beat the demand of any of those they're doing everything they can to meet the demand there's no way edge computing may dominate the only other real competitor is amd i find that people misjudge jensen you literally have to hear the customers say my business is transformed by nvidia. that's what you'll hear in the march speech. >> right. >> you mentioned disney. we never mentioned yesterday disney creating the new executive role svp of next generation story telling. >> what i think you're going to

see think shock second half. disney will be second best in metaverse to mark zuckerberg that's how big they'll be. he loves the oniverse. jensen is omniverse. they're agnostic it's going to blow people's minds. the idea that you're going to be looking at yourself and yourself is playing with another person we'll be playing without knowing it our digital twins will have better lifeline. >> yeah. we have a big morning on tap interviews with the ceos of cisco and door dash. plus former defense secretary we'll talk russia ukraine tensions as futures remain challenged claims were up a tick. up 23,000 after three weeks of declines 'lbeacin men

(rhythmic electro rock music) (crowd cheering) - bito, bito, bito, bito! - [announcer] bito, the first u.s. bitcoin-linked etf. i think you're going to like it here. umm, why is everyone... throwing things at me? look, as cfo it's my job to be ready for whatever's next. that's why i have my finance team, randomly hurl things at me. it's also why we use workday. it gives us insights, so we quickly pivot our strategy, people, planning, you name it. sorry, sir. i will aim straight at your next step. see that you do. would you like some coffee? workday. the finance, hr, and planning system for a changing world. ♪

there are some days that nothing can prepare you for. f but being ready—ld. 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.

. got nice gains premarket nor door dash. reporting record high user numbers. revenue up 69 from the previous years even as the restaurants reopened for dine in service don't miss the interview witwith tony xu in the next hour. >> we're now being able to find out who, during the pandemic, actually advanced and then we

really only have two we have every -- this interview will be amazing. people love the product. he's a dominant player it's a remarkable story. it's a great american story. and i don't know how to play it other than the fact they have developed a third way. remember when howard schultz talked about the third home of starbucks? this is the third way to eat one of the things i love when i speak to him he goes, you know, jim, one of the biggest market is eating. because you have to eat! >> that's an infinite demand. >> don't you love that >> he starts by saying you never forget there's tremendous demand people have to eat it's incredible. i mean, it could be one of the yellow jacket situations [ laughter ] i haven't finished it yet.

>> yeah. tony did talk about the strength of demand right now. take a listen to this. >> i think the question of, you know, what happens to demand is, you know, diners go back and eat inside restaurants i think clearly take-out and delivery has shown by performance not just in the fourth quarter but also in 2021. an aggregate they're complimentary. we eat, you know, we're more than three times per day that's over 100 shopping moments per month. >> i want to ask you, you have unique insight because of your restaurant work. >> yes. >> how do restaurants pay the fees when their margins are under so much pressure from labor and food >> okay. obviously i have no specialty. they, arguably, take a huge part of our margin. we can't live without them

because our restaurants close the only business we have is door dash. >> they're not closed as much anymore. >> okay. here's what happens and it hurts our profitability twice. one is the fees. but the third way there's a bottle of wine for $25 or there's a glass of wine for $25. so what people are doing it's about the liquor. people don't realize it's about the liquor when you go to restaurant, the mark up is all liquor. so what is really hurting restaurants is you've lost the single biggest margin. the beer costs 6 cents to you and you charge $7. the choice is use door dash or go under but, man, the margins in the restaurant business are sucking rate because of door dash. >> now we know why uber went after drizzly. >> yeah. every state and every county is different. it's a difficult product my wife is involved in that business it's hard. tony figured it out, which is

that people want to stay home, have that bottle of liquor, and not be broke as opposed to go out and go to some of the finest restaurants and buy a bottle of liquor for $400 or buy a glass for $50 and the bottle doesn't even cost $50. >> that's fascinating. we can't wait to talk to tony. we'll get cramer's mad dash and countdown to the opening bell. futures swung around by various n'gonyers regarding ukrain e. dot awhe!

need to get your prescriptions refilled? capsule pharmacy can hand deliver your medications - today - for free. go to capsule.com. we handle your insurance. all you have to do is schedule delivery. go to capsule.com to get started in 15 seconds 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 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.

time for the mad dash. we'll get the opening bell this morning. i think you're watching energy names. >> yes what is the highest yielding

stock? >> devon you said it a couple of times now. >> yeah. it'll be even larger when you hear him at 10:20 today. rick monfrief is a visionary we have to start returning capital shareholders if they're going to like us and it turns out he can do better he has the best properties. looks at this. this is about the new oil companies. he hedged, he hedged out so much on the upside. it could have been even greater. what people have to know, it's the key number you need to know. that's how much it costs them for a barrel of oil! you can imagine what he's doing. what he can do the dollar

dividend coming up, you know, i'm worshipful of rick monfrief. one day there's going to be so much oil in this country you won't believe it he told me we'll be energy independent one day. that's in 2011. >> wow i talk about it every day on my morning meeting at 10:20 which is the same time at rick monfrief you have lot less money and more oil. visionary. >> that's coming up, as well a busy morning here along with the opening bell coming up in a few moments. and cisco's chuck robins don't go anywhere.

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.

getting comments from the president. speaking to reporters on the south lawn this morning on his way to an event in cleveland

telling reporters that he does believe that the likelihood of an invasion by the russians into ukraine, every indication they're prepared to go said he has no plans to call putin, at this time. information about false flag operation and part of russia basically believes this will happen in a matter of days. >> right and, again, i want to emphasize as pooerlous as it would be for the ukrainian people, there is no battle. ukraine has soldiers but the russians are already in. in the militia is already in. if you can get kyiv in 48 hours it's not a big country and the borders are very close. >> yeah. we'll be talking about the

impact of economic sanctions and raising money now with various countries. >> yes [ opening bell ] >> you can see what is happening as a result of these things. it's back to 44.43 for brent meantime the big board this morning it's celebrating the recent listing of the digital india etf. the nasdaq a provider of technology celebrating a recent listing via spak.

>> speaking of positive. i want to be sure people understand i said earlier doug mcmillen has a history of being conservative he's not being conservative. he's making a strong case that this is maybe the most forward opportunity for walmart in a long time. now you can say well, jim, you're talking because you owned it for your travel trust i will talk about it at 10:20. you get the sense they won't sit there and take the low stock anymore. that's a new posture the numbers are great from walmart. no oneseems to care. i think they don't care because the stock is low it has a 20 multiple. >> we did get a 2% dip hike out of them. at least $10 billion added to the buy back. >> yeah. they bought back last year i think they're talking about multiple revenue streams we can't under estimate the advertising stream by the way, speaking of multiple streams, goldman sachs making a

concerted case they are not just capital markets. they have the steady seculars growth stream that just like morgan stanley and yet they sell at six times earnings. morgan stanley sells at double that brian moynihan sells at 14 times. bank of america. i think david drew a line in the sand saying, listen, the bank is two banks. one is the capital markets it's actually hurting the overall story. and remember the credit cards over the weekend from general motors they only have 10 million from apple. you have to understand the business is a juggernaut i understand why david solomon feels it they're using the money they could do to buy back the book value here is no longer in excess. we'll talk more about goldman. we'll listen to the president

and what he said a few moments ago. >> they have not -- they have not moved. number two, we have reason to believe they're in a false flag operation using every excuse to go in. every indication we have is to prepare to go into ukraine and attackukraine. [ inaudible question ] >> yes i will not -- the next several days. >> any diplomatic available? >> yes, there is

the fact is i have laid down a path so there is a path there's a way through this i have no plans to call putin. >> the president talking briefly about ukraine on his way to ohio some headlines that russia proposes to work out a new security scheme. i assume you think there's a deal you said there's a deal. >> yeah. there's two kinds of deals there's the deal which is, all right, we're not going to fight unless they're on the border it's the idea of a war with ukraine is not substantial you have to start talking about the strategy the tactics. and the tactics are to be in

kyiv two days. so, i mean, we have to stop thinking, well, there's going to be a war what it is going to be there's a surrender. and the surrender is logical now make a guess they may have blood. there may be a limited skirmish. but they're not going to be able to fight russia. this is about nato and someone has to stand up and say, you know, we're not going to join nato in return, please don't take us over now in finland in 1948, it was bloodless. they installed a government in finland that said we'll do what stalin wants it could be -- no one wants to do it but finland is logical versus invasion. >> right by the way, the finish government was often subversion versus stalin. it's either finland or direct take over. there's nothing else left in the playbook. >> we'll wait for comments this

morning about half an hour from the u.n. security council meeting. by the way, vice president for what it's worth, is going to a security conference in munich. she'll speak with zee less than sky this weekend the russians did with crimea and we had to accept it. they don't need kyiv but it doesn't matter stalin murdered millions when he starved them obviously the memories of that are still with us. want to bring in cisco >> why not it's something you can control [ laughter ] cisco the csco those that like restaurants. reporting strong quarter it was big on the top on bottom line i are to tell you, carl, i

thought it was the strongest quarter i've heard i'm so old i remember back when. chuck, welcome back. congratulations on the good quarter. >> thank you, jim. i'm incredibly proud of what our teams have accomplished in a very challenging environment inflationary environment with the component challenges that we face but, you know, the teams delivered a third consecutive quarter over 30% product order growth rpo at 30.5. you pointed it out earlier all time backlog and high backlog at $14 billion and crew our web scale crowd business by 70%. so it was an enterprise which was the fastest growing in 12 years. it was a pretty good performance by our teams. >> yeah. i love when you talk about it. i remember when visibility was 30 days at cisco now i think it's fair to say yo may have it for 30 months. do you think it's too

aggressive >> well, jim, i think if you go back to our business model from years back, a huge percentage of our revenue we took the quarter we recognized the ref new. the transformation has been complex for the last seven years, believe it or not, has resulted in, you know, software and services revenue on the balance sheet of $30.5 billion which is represented by the rpo. there's $2 billion of software over 2 billion sitting in the backlog associated with hardware that hasn't shipped yet. this is why we it it to give ourselves more visibility and predictability. it's been complicated and hard for a lot of folks to understand exactly where we are i think we begin to see the benefits >> that's why the it is so low one of the things i appreciated was your buy back. you announced a big buy back interesting enough, i thought it took off the absurd i did of

plying splung. got it off the table i think a lot of us are glad it would be a major diversion for you, chuck. >> yeah, jim we talked about, obviously, we don't comment on speculation but we're assessing opportunities in the marketplace and i settled a call, you know, for every one deal we do, we probably look at 15 different companies we're assessing and look at strategic fit and culture fit and financial and evaluation fit. and we always have been disciplined and we'll continue to be disciplined. >> i remember having dinner with you your first week. i said, chuck, why is this cisco have any business with the big megateches with alphabet why are you doing anything with the companies with giant data centers. you don't have that. if i read you correctly, i guess you have all of it >> well, when you ask me that question, i didn't have a great answer at the time either. our team did a great job they have built -- we worked on multiyear innovation to deliver

these high performance, low power consumption, which is so important now. platforms and so now we are doing very well. the cloud players represent 29% of our service provider business i can't tell you how proud i am of the teams they have stayed heads down for years building technology that was deriving no revenue for us and now seeing the bet of that. >> one of the line items is hybrid work product. it has implications for all of us going to the office can you characterize what the orders are looking like in terms of how aggressive the customers want to be is there any sense they're waiting to find out more or piling in now? >> one of the things we said hybrid work we'll change the name to collaboration.

in reality the technology required for hybrid is next generation networking, architect chu, new security architectures, treating the home like a small branch office, hybrid cloud and all of these technologies. and so we felt like the category wasn't representative of what hybrid work is and i think when you look at the strength of our borders, i think that speaks to every customer investing in modern infrastructure to support safety for their employees when they come back. we're seeing wireless densification creating more capacity for wireless networks which requires more switching infrastructure everybody is adding video units to conference rooms, which requires more high performance networking they are adding security cameras. iot is beginning to explode. we see the overall modernization of the technology infrastructure as companies prepare for their employees to return to the office. >> you know it's funny, i thought the most surprising thing versus the street was despite the supply chain

problems, your operating margin was 34.3%. i was looking for 33 how are you able to expand the operating margins in the environment? >> well, jim you know, we remain very disciplined from a spin perspective. at a time where our product orders are growing the way they are. our teams really want more investment dollars and we've been trying to stay disciplined because of the supply chain components issue that we face right now. as scott said on the call, we had a positive product mix with that backlog what we were able to ship when we try to square the sense to get the products built last quarter, we actually squared the sense of higher margin stuff we'll said probably slightly unfavorable mix. but it's in the range behalf we continue to try to drive even the teams have done a good job. >> i know it's hard for people to understand accounting of software in subscription it's always the devil whether it be salesforce.

that's a difficult question to answer but we have 30.5 billion in rpo which represents primarily services and software revenue that customers have committed to but recognizing radically over the next, you know, few years. of that 16.3 billion, we will recognize in the next 12 months. so go to the backlog, which is primarily hardware there's $14 billion of backlog most of our lead times are a year or less so you can argue that we have visibility to over $30 billion of revenue that we don't rerecognize over the next four quarters that's the way that think about the level of visibility we have versus seven years ago. >> you know i also want to talk about when you actually get a goes draft from the comps call it's the best demand environment

against enterprise carrier and web scale. i want to talk about carrier you know carrier has been a real problem. we don't discuss it as a problem anymore, chuck it's the opportunity. >> yeah. it's been incredible for several quarters in a ree. it's not just the web scale cloud performance. it's the telco performance our classic carrier communication service providers, as we call them. they're building out the ag neshs and modernizing the networks and flatten the networks and trying to become more efficient and in the first phases of this we talked about for years, you know, i kept getting asked when will you see the benefit of 5g much like the cloud providers, i would say it's coming. it's coming. and we're beginning to see the early aspects of that. and i think the benefits of those providers building out high-end enterprise services on 5g when we're going to see the network infrastructure upgrade begin. >> there was some discussion on the street yesterday, you know, talking about the explosion of technology and it all aspects of

our life and the strain that is going to put long-term on the labor force. will where will we find some estimates $150 million tech workers in the next 15 years how is that playing out for you guys in terms of competitiveness for workers. people hopping to the same job somewhere else for 10 to 15% pay hike. >> yeah, carl. it's a fantastic question. a long discussion as a nation we have to do several things. we have to encourage s.t.e.m. education at earlier ages. we have a protocol network academys of high schools and community colleges we're trying to get kids started in the technology areas but we also need to fundamentally revamp our immigration programs it'll make us not competitive as a country if we continue down the path we're going those are two things to answer your specific question, you know, we see higher attrition than we've seen

historically two out of the last three years we were rated the number one place to work. that has a lot to do our attrition rate remains lower than the i.t. industry it's certainly experiencing wage inflation and seeing the opportunity for employees to move it's leading us to invest in other markets but i'm still not happy with security i mean, i think security should be a big growth. and i know it's billed in. but when can security be a breakout we're talking about a number that is not impressive, frankly. it's not impressive. >> yeah. we're not incredibly pleased with security. there's a little bit behind the number and i'll talk about the future so inside that number, the

modern cloud security grew well. we have supply chain constraints on the fire wall business but the team has been working on an evolving strategy and i will tell you that over the next 12 to 18 momts, you'll see that number improve and the teams committed to it. a lot of people heard of rpo it's not run pass option [ laughter ] it's performance -- anyway it's important to point out. you're not the falcons or the niners we have to point it out. chuck, congratulations it was the quarter that we've been waitingfor! that you promised and delivered. chuck robbins crow of cisco. thank you so much. >> thank you meantime the stocks moving further in red here. dow down 300 s&p right here is not quite to yesterday's low, which was 44.29. it's well above the break even for the week at 44.01. before we go to break, take a

look at the bond report. we'll get bullard at 11:00 a.m in the meantime, more "squawk on the street" is back in a minute.

cody! hi!! hi! how are you? i'm good! i'm crocheting. i see that. started off as a hobby. kind of snowballed from there. and alex, i don't want to stop. well, i don't see why you should have to. let's set you up with a side gig savings goal on the u.s. bank mobile app. this way, you can turn it into your main hustle before you know it. you're my hero, alex! what are you working on now? pool cover. that's fun. oh! i made my wife a bathing suit. oh, did linda like it? she did not. oh. you should see what i made for max. max! look at him. he loves it. the confidence to make your dream a reality. u.s. bank. we'll get there together. 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. 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 snoop the s&p heat map a sea of red as we are sitting a point below yesterday's intraday low. we will watch the short-term levels closely today get in on the investing club with cramer. sign up at cnbc.com/join the club or use the qr code on the screen lot iera ofntesting things coming up. back in a moment

- hiring is step one when it comes to our growth. we can't open a new shop or a new location without the right people in place. i couldn't keep up until i found ziprecruiter. ziprecruiter helps us get out there quickly and get us qualified candidates quickly. they sent us applicants that matched what i was looking for. i've hired for every role, entry-level technicians, service advisors, store managers. ziprecruiter helps me find all the right people, even the most difficult jobs to fill. - [announcer] ziprecruiter, rated the number one hiring site. try it for free at ziprecruiter.com

switching wireless carriers is easy with xfinity. just lean on our helpful switch squad to help you save with xfinity mobile. they can help break up with your current carrier for you

and transfer your info to your new phone. giving you a fast and easy experience that can save you hundreds a year on your wireless bill. visit your nearest xfinity store and see how the switch squad can help you switch and save. switch to xfinity mobile and get connected to the most reliable 5g network. talk with our helpful switch squad at your local xfinity store today. it's time for jim and "stop trading." >> so much we weren't able to get to fastly, this should be renamed slowly i am going to talk about alta vista. of course, one of the earlier

search engines there is a nomination of directors hasbro by alta fox now, ryan was on, they have money for years and years, built this amazing company based on the cash cows of monopoly and plato and created this wizards of the of the coast and then the ceo, new ceo, mr. cox, came from that division. i think it's tragic that within such a short period of time this -- geez, gone, came in and said, look, it's really time to replace -- the directors are really excellent at hasbro i have studied the directors some -- and be aware that the stock is up because of this. it could be short lived because i don't think that alta fox has a chance in the world. >> right it's getting an interesting -- to be an interesting period for activism hasbro, icon mcdonald's maybe. ine hern said to our -- dan lobe

said about amazon last night. >> let's go after nvidia and and? nvidia down -- obviously, there is big sellers in nvidia this is an opportunity i am not calling it bottom there is people who don't know what they are to go. when this launch thing comes around, when we see what pfizer and disney is doing, facebook, they probably won't be there, is doing, wow, why didn't i sell that stock >> we see the dow down 425 it's been pointed out this morning, jim, not too many days you get a solid bond rally they got ten-year 197. >> long weekend. people trying to position right now. pe people listening to the president. i urge people to recognize there is a story after this which has to do with germany being short on energy. we can't supply it we talk four years from now. our country will face the sanctions against russia russia not a big economy it's not like china. i wish that china would put the

brakes on this if china is in cahoots a putin, their whole foreign relations policy the last ten years will be called into question. >> macron suggested xi may come in to stabilize. >> counting on xi to say, hey, listen, it doesn't work. >> jim is going to stick around a bit. we have a big hour ahead with the ceos of doordash, devin, compass, the defense secretary mark eersp some session lows. dow's down 440

♪ ♪ wealth is your first big investment. worth is a partner to help share the load. wealth is saving a little extra. worth is knowing it's never too late to start - or too early. wealth helps you retire. worth is knowing why. ♪ ♪

♪ good thursday morning. welcome to another hour of "squawk on the street." >> i'm carl quintanilla with morgan brennan, jim cramer is sticking around because we have got some interviews this other of ceos of doordash, devin and compass and former secretary of defense mark esper talking about ukraine tensions a slew of headlines regarding ukraine that are feeding some of the tension. vix back to 27 and all sectors red, even energy today. >> even energy and also defense

stocks are lower today, too, which is curious 30 minutes into the trading session. three big movers we are watching starting with the aforementioned doordash soaring after issuing an upbeat outlook. a 69% surge in revenue for 2021. as you heard carl say, we will talk to ceo tony xu in a few moments. those shares up 15%. plus, palantir plunging, issuing upbeat guidance as well, but q4 earnings shy of estimates. that stock is down about 12% right now. it's down more than 50% over the last year of trading and we'll end with walmart the retail giant reporting an earnings beat saying shoppers turned to the retailer for gifts over the holidays. shares up 3% right now carl >> yeah. jim, it seems like it's three buckets. there is ukraine, eco data and there is earnings. i am not sure that earnings lead the charm here. >> no. if people want to do know what

to do, say, listen, stocks are too cheap. they need to listen to rick muncrief as morgan mentioned, excellent summary, the oil stocks are way too cheap if you think they are going to invade. if you look, three days oil has been up for a week we are talking about 1990. oil has been up for weeks on end before the invasion. they had this move, this pop of three days that was extraordinary. and if you want that, we have got domestic oil up the wauz u that will make you money. >> one thing that has gotten buried is this idea an iranian deal is closer than ever, which a lot of banks said would take off ten bucks from brent in the near term. >> and i think that brent should be at, say, 85/90 because our economy is very strong and we are a huge economy we don't know what's going to happen with china. maybe they turn on the jets and you are going to see they will make up for iran, believe me i want to warn people that if they just abandon ship right

now, that has been a mistake every single time we've had war thoughts every single time. now, this is -- crimea happened quickly. that was a shocker this is not a shocker. >> meantime, listen to see what bullard says next hour and mester tonight the discussion continues as to whether or not it's 25, whether or not it's 50 those fed minutes didn't do a lot who give us insight how a balance sheet runoff might work. >> and let's remember we have had hotter than expected inflation readings since that last fed meeting by the cpi and ppi. you mentioned three buckets. it almost seems it's three buckets of earnings, the fed and geopoliticals. and what is interconnecting those is the inflation debate, uncertainty around high inflation, how that plays out the rest year that makes this russian ukraine situation such a key focal point from a market standpoint whether you think that russia is going to invade ukraine or not, and i think the risks are higher

than perhaps some investors that have suggested, just based on, for example, satellite imagery from some of the publicry traded companies i follow like planet labs or max ar, despite that, jim, i think the fact that ukraine is such a key area of the world for commodities, plus you have the russia dynamics you mentioned. there is interconnectedness with iran you get an iran deal, that's why crude is under pressure a little bit right now. you see an iran deal, what does that mean for the dynamics between the u.s. and russia because the missile defense systems that are a key part of the negotiations and ire raised by putin in the midst of those tensions as well you have to think that plays within each other. and then saudi arabia in in the midst of opec discussions and pressure from the u.s. to keep pumping more oil in a midterm election year. basically saying, no, we're sticking with russia here. there is a lot of cross currents. >> you raise a great point,

morgan obviously, remember ukraine as the bread basket of all of europe so, yes, prices will rise, not just for oil, but they'll rise for foodstuff. and that has been a problem. great summary of things. >> so now we go to something that's actually up despite the market's decline and it's doordash the stock is soaring this morning. the company reported an unbelievable quarter, 5 billion in sales the main thing is -- this is a company that actually got stronger coming out of the pandemic, which is a amazing since so many haven't. ceo tony xu joins us now tony, amazing quarter. you did didn't talk about the numbers. doordash's mission is to grow and empower local economies. tell us about that because people feel doordash's mission is to bring food to the door >> welcome, jim. certainly we're recognized for lunch and dinner, as evidenced

by our 25 million, you know, record high monthly active consumers shopping at the highest frequencies we have seen, you know, preor, you know, post or during pandemic. but really our goal, you know, from day one is really just to do two things, transform local commerce, build the largest local commerce, bringing the greatest amount of incremental demand to everybody inside the neighborhood and teach the merchants, small, medium and large businesses how to become digital powerhouses in their own right. i think we can achieve those goals, we will achieve the goal of transforming local commerce and making sure that every business in the neighborhood can continue to be successful in any economy, certainly the digital economy. >> let's talk about the economy that was shut down it is true that doordash takes its pound of flesh, so to speak. they have to make money. but i think what's important is can you tell us how many restaurants you think you kept alive during the period when you weren't allowed to have people in your restaurant

>> we had a great privilege really i mean, a front row seat into seeing our mission realized every hour during the pandemic you're right from march 2020 to even to this day, i mean, restaurants have really struggled to make sure that they can continue to compete. that's why we are so proud of the fact that we not only serve 550,000 merchants now, same-store sales growth has grown 23% year on year our goal is to continuously bring them more and more sales at higher and higher profits >> one of the things i think people don't realize, particularly in new york, because we are so new york centric, the coverage you now have in the country. it's everywhere. can i get from you an analogy that would talk about the coverage in the united states and what you offer >> yeah. doordash has come a long way in the, you know, 8 1/2 years since

we started today we certainly cover places like manhattan or chicago, san francisco, these great big cities that sustain us here in the united states. but we also cover a lot of towns like where i grew up in the middle of the country. and i think if you were to think of an analogy, we're as ubiquitous as the postal service. in fact, we cover more zip codes than even the postal service does so that's something that we continue to aspire to want to create as much as doordash has grown, we still recognize that our business is a hyper local business, which means that every neighborhood can and should be successful after all, it's the physical businesses that produce the vast majority of gdp in those cities. that's why we work hard every day to make sure all of these businesses can be successful and all of these communities will flourish >> tony, i wonder if you can characterize the white space

between restaurant and grocery because there remains this lingering worry on the street that given the historical margins in the grocery business there are questions as to how long those customers can afford to pay fees that maybe restaurants can. >> yeah. during the pandemic we launched several new businesses, one of which was grocery. another was convenience items delivery as well as our increased expansion into other categories, whether it be pet food or alcohol as well as other categories of local retail what we've seen in each category is just tremendous demand. now 14% of our monthly consumers, millions of customers every month are trying these categories so what we're seeing right now is that there is actual demand just like, as peopleare going back inside stores, there is still the complementary activity of shopping online and getting things delivered, especially when they can get that convenience during the middle of the week and in terms of the business

model, we're actually seeing great results in terms of where we are right now the focus is certainly on building the best product, making sure that we get the right selection, the right inventory, the highest quality delivery experience and the best customer support, and we believe that the business model will come just like we've demonstrated that in our core restaurants category. >> tony, it's morgan i get that demand is strong and we have seen a secular shift because of the pandemic in terms of how people are going out and ordering their food or their groceries and getting them delivered to the house but as we see this post-pandemic normal begin to materialize and people do start to go out more increasingly, how are you balancing this against what is, especially in some suburbs, pretty high fees >> well, certainly demand we expect to normalize. i think we've seen that in the past couple of years and that certainly makes sense i think that's healthy for any

ecosystem. i think we're all ready and excited if we are not already, you know, mingling in the real world. at the same time, i think what the resiliency of the numbers that we just announced in the fourth quarter show is that just how complementary the activities are. after all, we eat three times a day. that's over 100 shopping occasions a month. so when i think about how many shots on goal there are, they are just a lot of moments to capture. that's why we think that the businesses continue to flourish. at the same time, we're always working on improving the product. so we always want to improve the selection, the quality, the affordability of our product i mean, that's why we are super excited about programs like dashpass where we have over 10 million, you know, subscribers who pay $10 a month for unlimited free deliveries. >> you know, tony, you'r terrifc

memo gave us a lot of information about your dashers and how the dignity of it, what they do, why they do it. when i first met you i said, all right, berkeley, stanford, hotshot, let me hear one more story about a rich guy who made good you tell people right now what your real story is >> yeah. well, as you know, jim, i mean, my family came into this country with a couple hundred dollars it in the bank. so while i am certainly, you know, very privileged to have gone to some of the schools and establishments you described, it certainly wasn't always the case that it would go that way. i grew up really as a midwest kid working, washing dishes alongside my mom for the better part of my childhood that's kind of, you know, how i think about life in a sense that i think a lot about people like my mom after all, it's why we started doordash, for people like her. people who really want to control their own destiny and

make the best of their circumstances and opportunities. and i think that it's so true also for the dashers in our platform if you look at them, they are basically voting with their feet and saying, you know, we're very, very happy with doing multiple things. that's why 90% of dashers, over 3 million of them, only work fewer than ten hours a week. the average does four hours a week the vast, vast, vast majority of them do so many other things they belong to so many industries, whether it's, you know, being a full-time student or working in real estate or construction or the health care industry or i.t. really, these people have their own dreams and that's never lost upon me not just because of how i grew up, but also because what what i do every day. we are proud atdoordash of programs like we dash so we can get to hear some of these stories.

>> all right tony xu, congratulate you. your story is what people need to hear right now. i find way too much negativity what you have accomplished is extraordinary. tony xu, ceo, co-founder of doordash great to see you, sir. really great to see you. >> thanks, jim. >> absolutely. >> thanks to you for sticking around we will listen to the morning meeting in a few minutes. still to come on "squawk on the street," don't miss our earnings interviews with the ceos of devon energy and compass and mark esper talking about russia and ukraine the dow has gone red for the week s&p hanging on to weekly gains of about 20 points oh man, my laces are ruined. 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. [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.

as a business owner, your bottom line is always top of mind. so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable nationwide network. with no line activation fees or term contracts... saving you up to $500 a year. and it's only available to comcast business internet customers. so boost your bottom line by switching today. comcast business. powering possibilities.™

it's time for "etf spotlight." a look at the spdr consumer discre discretionary ticker 2.5% more than the s&p amazon makes up 23% of that fund activist investor dan lobe believes amazon is being undervalued by nearly $1 trillion, adding the market is failing to see the full value of amazon web services in addition to its e-commerce unit. a spin offof aws has long been discussed. amazon continues to underperform peers like apple and alphabet.

stocks up 0.5% today worth nearly $800 at the end of last year, according to the most recent filings carl. morgan, coming up after the break, the best performer on the s&p last year, and jim's already talked about its yield so far this morning we will talk to the ceo of devon energy with results this week. don't go anyerwhe. ♪ ♪ 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 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 (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 matching your job description. times the speed at no extra cost, the downloads are flying fast! verizon is going ultra, so your business can too.

(doorbell rings) (family chattering) - [announcer] meat-itation, a sense of calm that comes from being transported to your umami place. on time, lowest price, or we'll make it right. grubhub. ♪ chicka-chicka thinkorswim® by td ameritrade is more than a trading platform. it's an entire trading experience. with innovation that lets you customize interfaces, charts and orders to your style of trading. personalized education to expand your perspective. and a dedicated trade desk of expert-level support. that will push you to be even better. and just might change how you trade—forever. because once you experience thinkorswim® by td ameritrade ♪♪♪ there's no going back.

welcome back devon energy was the top performer on the s&p last year, rising 178%. earlier this week announcing better than expected q4 results. gains have continued this year, outperforming the s&p by nearly 30% so far in '22. joining us exclusively is devon energy's ceos rick muncrief. great to yhave you back. we have been talking about your cash return model and the time we're in we just talked about the equity return, the margins, the cash flow, the dividend payout. how do you think about the time

we are in right now, both for devin and the industry at large? >> you know, that's a good time right now. a lot of volatility in the markets. we continue to return from the pandemic certainly you have geopolitical tensions that we see you are borden on ukraine and russia potential impact there. so there is a lot going on in the world. but, you know, for producers such as devon, we have tried to be very focused and disciplined and stick to it. it's working out very well really pleased with the performance last year. winning the national championship one year, you can celebrate for a weekend and it's time to get back in the weight room that's how we are looking at this year. >> yeah. people are still amazed at the discipline regarding the model you mentioned the ukraine tensions we will talk about the increase in consumption and demand all

the time are there limits to that discipline is there a point at which you say, maybe cash return does take a back seat to production? >> well, i don't see that taking place in the near term for sure. we talk to investors yesterday got that question several times in several different forms the reality is that you look at the forward strip of what commodity prices or crude oil prices are, near-term pricing is higher than 12, 34 months out. that shape of that curve is very, very impactful and so what the curve is telling you is they don't -- it does not -- crude oil prices will stay at wthis level forever in other words, off 10, 15, $20 a barrel lower than today. this is something you simply have to dial into your long-term planning we are very active we are one of the most active drillers and developers in the u.s. right now, and it's not

like we are sitting around not reinvesting in our business. but the cash flows are stronger than they have ever been we mentioned on the call yesterday we finished up the best quarter devon has had in the 50-year history of the company. but we are reinvesting about 30% of our cash flows back into the core business, if you will and so what we're doing with the excess cash is returning it to shareholders in the form of the vix plus variable dividend, currently about 8% and then we've also, you know, announced share repurchase program originally, authorization was $1 billion. we actually purchased $600 million just in the fourth quarter. very attractive prices and we've upped that authorization. so we have a billion dollar. we continue to pay down debt when we can, too >> rick, it's morgan you talked about that backward dated crude chart. if we were to see an invasion by

russia, does that change the scenario if so, how are you gaming that out from a hedging standpoint? >> well, i think that once again hedging, we're currently 25% hedged into the future on oil prices i think once again you would have to see that curve really come up in the back end. curve for it to be attractive to us i think most of our investors want exposure to a stronger commodity price. and so i think that we will stay kind of in that range, probably the prudent thing to do. if you did see the reality is, even if you do see an invasion, you know, we are fighting supply chain issues in the energy sector just like every other sector is. and so getting truck drivers, getting supplies, getting people in the field, there was a report

that i read the other day that in at the permian basin, an active producer, over 60% of the people working in the field actually are coming in from outside of the basin and so that's just something that you really have to think about as you think about forward plans. so you could spend a lot more money. i just don't know how much more efficient you would be that caused us it pause in putting a lot of additional capital to work. >> in terms of that free cash flow, i realize you said 30% is going pack into the business and the rest you are sending back to shareholders in the form of buybacks and of course this fixed plus variable dividend payout that's become so popular. based in large part on your implementation of it across the country. we are seeing some of the oil majors start to make investments around green tech, clean tech, focus a little more on esg, investors have been noisy within their basis. how are you approaching it

>> what we're doing, morgan, is, once again, very disciplined, keeping our production flat. very -- we have a deep inventory, so we see that playing out for quite some time. as far as green tech, you know, something that we do, we do explore quite a bit in and make sure that we understand the realities of the energy transition that you hear so many people talking about we want to make sure we understand the realities of that and quite honestly, the realities are that we will continue to see energy transition just as we've seen energy transition over the last -- i would argue the last 150 or 200 years so you will continue to see that the realities are that supply chains, that the infrastructure necessary to do that real quickly, as quickly as a lot of people would like, the reality

is it's going to take time and so we'll let some of the larger companies -- you see a lot of the european majors, people like shell and bp, really leading the charge, and but you are basically going from a high return business to a low return business when you do that. and so for us i think we are going to stick to our core we have strong demand. we are going to need oil and gas for decades. and so we are going to stick to our netting and that's going to be our core business but we will explore. we will understand we want to understand -- we want to understand the realities of lithium. we want to understand the realities of wind and solar and hydrogen and all these potential opportunities. and i think that will help us fortify our long-term plan >> yeah. maybe next time we can talk a bit about the economics of various basins and how that is changing over time given what's

happened to the model in pricing. for the time being, rick, appreciate it as always. thanks. >> thank you guys. have a great day take care. after the break, we will talk russian/ukraine tensions in further detail with former defense secretary mark esper we're back in two.

here is your cnbc news update. president biden says the threat of a russian invasion of ukraine is high. he made that comment in the last hour while leaving the white house heading to cleveland. >> they have not moved any of the troops out they have moved more troops in number one number two, we have reason to believe it that they are engaged in a false flag operation to have an excuse to go in. every indication we have is they

are prepared to go into ukraine, attack ukraine >> secretary of state antony blinken making a last-minute decision to speak to the u.n. security council during the meeting on ukraine this after russia has responded to u.s. and nato proposals on ukraine. russia says it's red lines are being ignored and it may be forced to respond, including using, quote, military technical measures. and russia has expelled america's second highest ranking official at the embassy in moscow the u.s. official says russia's action was unprovoked and the u.s. is considering its response it's not clear what prompted the expulsion. morgan, back to you. >> thank you. staying with ukraine and russia, the ongoing tensions rattling storks. the major coverage lower and treasury yields coming off as well as investors move into safe havens joining us, mark esper, former u.s. sick tear of defense. he has an upcoming memoir on may 10 great to have you back on the

show, although perhaps not under these circumstances. i mean, someone who sat in the situation room, had access to the most classified intel about the goings on in the world over the years, someone who has been involved in the green lighting of arms sales to ukraine and other key nato allies in the region, the information that's coming out now and the rhetoric back and forth, how great do you see the risk of an actual invasion here in coming days >> yes, first of all, morgan, good to be with you this morning. i think we are at an inflection point. it seems at this point in time that the russians have assembled the forces on the ground that they need. it appears that all the diplomatic initiatives have been put on the table now it's a matter of timing with regard to whether the ability to traffic troops into ukraine and, of course, you have the olympics ending here fairly soon. so i think something is going to happen it is going to happen soon i think the next few days are tenuous. there are a few things i'd like to see the administration and

our allies do right now to put all the chips on the table i think with the news that the russians are putting more troops into belarus and russia, contrary to what they are saying, i think we should put more troops ourselves. not just the united states, by the way, but nato allies into the front line states. not just poland and romania, but the balance particulars as well. and i think increase the arms sales, the intelligence and equipment we provide, things that send the proper masst messages and last at the political level, it's good to see tony blinken going to the u.n lloyd austin is at nato. i would like to see the eu leadership come together right now and send a message of unity and resolve to moscow because at the end of the day it will be the financial and economic sanctions that will have the most devastating impact on russia if they conduct an invasion sorjts if they were to conduct an invasion, how would this play out? i mean, i get this question from americans and also investors about why they should care about

what's going on reen russia and the ukraine. would this pull the u.s. back into a war >> i hope not. much of it depends on what putin's strategic games are. it's unclear whether he is trying to seize kyiv, or firm up his positions in crimea or somehow force the government, the zelensky government, to grant greater autonomy we don't know. i will tell you this if something happens, we will have to respond with economic and financial sanctions. i think this the fact that russian is a major energy supplier, not least of which to europe, which is well over 30%, you could well see inflation in the united states increase and energy prices as well consistent with that, which will make for expensive summer for american travelers. but at this point my assessment is putin is already in the losing column. he has managed to do three things he didn't want to do. he emboldened the ukrainian

people they are leaning towards a nato membership number two, he's unified nato much better, and third, he's managed to actually drive nato to put more forces into front line states. right now he is in the losing column i don't see why he would want to drive further. at the end of the day, he may get into ukraine but getting out and getting out unscathed is going to be a tough task there are going to be a lot of russian body bags heading home. >> yeah. don't want to see any body bags, hopefully. that being said, from an investor standpoint, some of the defense names are actually trading higher given some of the headlines, comments from president biden this morning, as well when we talk about increased arms sales to ukraine and to the regional, what types of systems will we be potentially talking about to counter russia, and what does this do, invasion or not, it defense spending levels by the u.s. and its allies in general? >> two things. first of all, i am a proponent of arms sales to ukraine

defensive lethal arms, which would be javelin anti-tank missiles, air defense systems, stunger air defense systems and other things they need, not least of which is ammunition to defend themselves. it's also training i think it was a mistake to withdraw our forces from lviv in western ukraine. i was there in 2018. we do a great job with our allies training ukrainians that is important. something else that is disappointing, morgan. we are nearly six months into the fiscal year and we don't have the appropriations for the government we still may face a shutdown next month it's just congress is not doing its job by passing an annual defense appropriations bill u that's hurting the united states military tear, not just with regard to russia and europe but china and asia. >> i was going to is ask you about china, mr. secretary, and how this ties into the possibility of xi playing some kind of role to stabilize or

destabilize, i suppose, and the ongoing and longer term concern about their interests in taiwan. how is china watching all off this play out? >> i am sure they are watching it closely i was in south korea this weekend talking about many of our friends and allies and there are two common themes between both xi jinping and vladimir putin. they are breaking international rules and norms and law and they are actively undermining it. they are challenging the notion of western democracy we saw them two weeks ago have a joint meeting where they put out a 5,300 word joint communique calling for these things this has gone from what was cooperation and collaboration to something that appears more like an alliance. we should be very concerned because in my mind we are now in a power competition. china is the greatest strategic challenge we face in the 21st century. everything we do in russia and with regard to europe with regard to russia is being interpreted by beijing, how -- in terms ever how we deal with

them and other areas such as taiwan, as you mentioned. >> the reports of both russia's and china's interests in latin america, is that also at an inflection point is that more of the same >> well, they have been there for a while. they had an active presence. something we need to watch closely. we don't want those types of actors playing a nefarious role in latin america we work closely -- i did during my time with our allies in colombia and elsewhere to make sure we offered a check on russian and chinese activities in latin america that's something we need to keep a close eye on look, we have to engage better around the world we have to compete with russia and china. that means not just at the dod, but empower the state department and usaid and these other factors that come to the fore when we are trying to compete with russia and china on the world stage. >> the worole that he technolog is playing, the capabilities on

the world stage where geopoliticals is concerned, satellite imagery out of planet labs in the last couple of days or the data aggregation from palantir to the fact that you have easily accessible very inexpensive drones sold by turkey to ukraine and are potentially on the forefront of any escalating crisis that takes place and, thus, the need for counter drone technology as well, how is that all of that changing the way war fighting and some of these conflicts are going to play out? >> morgan, you are connecting great points let me connect a couple other dots here. it was russia that introduced the use of drones on the battlefield in 2014 against ukraine with devastating success. i think if there is a fight again in ukraine in the next coming days or weeks, you will see ukraine respond as they already have, by the way, with drones as you know, i sit on the board -- we had a great announcement of an evaluation of

$1.53 billion. that same technology going used with regard to power management. the challenging thing here, which is why i'm focusing on the leading end of entrepreneurialism and innovation, we have to bind closely together the relationship between small entrepreneurs and innovators and dod because that is where technology and innovation is happening. i hope we can do that because these technologies will be critical to retaining overmatch in the years ahead, particularly directed energy and a.i., which we use a great deal as well. a.i., quantum mechanics, you name it. this is the future so we have to tap into that rich innovation base that we have here in the united states. >> secretary esper, thanks for joining us today. >> thank you, morgan as we go to break, a check on some of the big earnings movers doordash, walmart, nvidia. the s&p is on the cusp of

joining the dow in going red for the week 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.

the secretary of state with some comments at the u.n. security council meeting for that, kayla. >> we are still in the early stages of that u.n. security council meeting happening in new york we have not yet received the comments from the deputy russian foreign minister for the secretary of state who are coming up later in this program. but based on what the administration has laid out so far, we do know a little bit of what to expect earlier today a senior biden administration official suggested that russia could use the forum of this meeting to lay out a path to an invasion, and raise new concerns about its own security in eastern europe and how it feels threatened by the potential that ukraine could join nato. we expect secretary blinken, who will follow the russian deputy foreign minister, to lay out a path to diplomacy. p president biden and the u.n.

ambassador to the u.n. specifically asked secretary blinken to take that stage and lay out that path in no uncertain terms, essentially suggesting that that is what is on the table and russia should take it or leave it. overnight we did see news out of the russian -- the u.s. embassy, rather, in moscow. russia expelling the number two u.s. diplomat from the embassy even as it delivered its written response to the u.s. on exactly how or whether it plans to address the proposals that the u.s. had laid out on arms control. this as both the u.s. ambassador to the u.n. and president biden earlier this morning say that they believe the likelihood of invasion is high, and it could happen in the coming days. carl >> kayla, obviously, all the market can think about this morning. thank you slech for that. checking in on the markets, we are slide hearing s&p's trying to hold on to a weekly gain on some of these russian/ukraine tensions morning us is northern trust manager. i wonder what you are making of

how quickly the geopolitical conversation has supplanted what was a pretty active fed discussion and whether or not that complicates the fed's mission of trying to engineer some kind of soft landing. >> well, i think we said all along, when you think about the situation that the fed is in, they already have to thread a pretty challenging needle, so to speak. it's the dealing with what we know is inflation right now, and it's a question of how persistent it is, because we know it's rather substantial near term, but also now these not only rising geopolitical issues, but also, carl, introduced a third element to that they talked about certain systemic challenges they are trying to manage, and that has faded to the background. certainly complicated. the thing we know for sure, we will see increased volatility i the markets. >> right in terms of what is actionable at the moment, what is smart i mean, historically we have

seen a lot of geopolitical episodes get inflamed and resolve quickly and the market drawdown isn't terribly dramatic when you look at history is cash a more reasonable position here? what changes >> well, i think the practical reality is you have seen time and time again when we have significant unprecedented issues, geopolitical issues, the thought that we can predict them in any way or fashion, the market trying to time that, that's something that we have seen done at our own peril so i think the reality is you should always be thinking about how are you balancing the risk in the portfolio one of the things that i think about in this environment, while we still have, i would say, our disposition to be on relative basis risk on, there it is way to manage that risk. for example, we actually like high quality, high dividend stocks in this environment we also like lower volatility stocks to be quite frank, given so other turmoil we saw in the

markets, we believe those areas where you could see relative outperforms and better risk management in the portfolio. i think that's greater the case when you think about what we are seeing in terms of the volatility we see now and with the high tensions that we see around that. >> we've got fed nominees in limbo right now after a gop boycott on a senate committee that really hinges on whether implied or explicit monetary activism and what the fed's role is given the fact that it has a dual mandate and doesn't include that yet it's a conversation we are seeing play out in central banks across the world how does it evolve >> yeah, and so sometimes what we have to do is sort of zoom out from the near term sort of politics in the political rancor and we have to say, what are the key secular trends for our standpoint, whether you talk about investors or business leaders, there is a recognition what i would describe as maybe a

winner take all or most form of capitalism has to increasingly move towards something that's more equitable for all stakeholders we definitely see central banks really leaning more into that activist role, dare i say that, and in some respects the european central bank has, arguably, been at the fed. you know, broadly speaking, we actually think this shift, because we're seeing in the private and public sectors, actually leads to a more sustainable form of capitalism for all participants so, again, we think that's a trend that you're going to see not with and thing, again, with near term political ranker that you see. >> how does that play out where something like inflation is concerned? exacerbate income inequality which we know is a tight rope the fed is now walking >> right and so, i would say a couple of things on one level we can think about, you know, some of the challenges that the markets are concerned about with inflation but to be clear, all forms of

inflation that we think about are not bad. so if you think about some of the things that we see in certain segments of the economy that struggled far long time, to have wage gains, we have seen some improvement there now, there's a managing of that. and we don't want to get ahead of ourselves in terms of the level of inflation and that gets back to this, quote unquote, activist disposition because i think what happens over time is while a lot of people are concerned about many interest rate hikes we're towards the lower end of that. we're looking at maybe three interest rate hikes this year as opposed to where the extreme or some of the predictions of the market are and part of that is we look over a longer arc and say, the fed is thinking about how do you also balance some of these systemic risks when you think about not only employment generically but certain areas of the economy, diverse areas of economy. >> that is fascinating even as jp morgan just yesterday went to 7 hikes for the year you can almost feel the street

just trying to grope around in the dark here. so much we don't know. thank you so much. good to see you. >> thank you coming up on "techcheck" today, don't miss earnings interview with the ceo of applovin stock is down more than 30% for the year that begins at the top of the hour as the dow still down almost 500

♪ ♪ 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. hey businesses! you all deserve something epic! so we're giving every business, our best deals on every iphone - including the iphone 13 pro with 5g. that's the one with the amazing camera? yep! every business deserves it... like one's that re-opened! hi, we have an appointment. and every new business that just opened! like aromatherapy rugs! i'll take one in blue please! it's not complicated. at&t is giving new and existing business customers our best deals on every iphone. ♪ ♪

switching wireless carriers is easy with xfinity. just lean on our helpful switch squad to help you save with xfinity mobile. they can help break up with your current carrier for you and transfer your info to your new phone. giving you a fast and easy experience that can save you hundreds a year on your wireless bill. visit your nearest xfinity store and see how the switch squad can help you switch and save. switch to xfinity mobile and get connected to the most reliable 5g network. talk with our helpful switch squad at your local xfinity store today.

welcome back to "squawk on the street". com compass, up about 3% the stock has struggled down 56% since its debut last year co-founder robert revkin great to have you on the show. >> thank you for having us >> housing has been hot. that played out with compass as well 73% in 2021, transaction volumes up 56% as well can you continue to grow at that pace as we see interest rates rise and inventory shortages continue to persist? >> yeah. like you mentioned, our transactions were up it was actually -- we grew our

transactions seven times faster than the market and our market share grew 40% last year so we're really a share gainer in the industry. we expect we'll continue to be so particularly because we drive agent success. the focus of compass is to help acts be more successful. and our agents are growing three times faster than the market which means they come here faster rate to grow and stay here we have agent retention above 90%. >> so how quickly can you expand where are you expanding to strategically in 2022? >> so last year we expanded to 25 markets and this year boing going to moderate the expansion we focussed on the markets where we saw people moving from and to to cover the full base of where our agents/clients were moving to think about the airplane traffic of people moving the key areas we expanded to were in hawaii, more of the middle market in the country and all throughout florida florida is the hottest market in the country right now.

>> so, we've got higher rates on the horizon this year with the fed tightening we also know that inventory is also very scarce there's an expectation it could potentially get more scarce as you do get those higher rates from an affordability standpoint how are you assessing that what do you expect to see in terms of that playing out in the housing market this year >> yeah. look, inflation is significant as jim cramer said yesterday, it's almost so hot you can't see it going higher, but remember, real estate is a good hedge to inflation. and we focus more on the high end of the market. so, our average price point is above $1 million, which is less sensitive to rates because in the higher ends, they don't use mortages as much we do see the market growing 11% this year. that's not in our guidance but, even in february, prices are up 3% month over month and so we see the momentum of last year where prices were up 90% over the course of the year continuing into 2020

there's just so much demand, multiple offers in all of our markets. such low inventory we see this price momentum continuing. >> do you expect to see international buyers come back in a more meaningful way this year >> yeah. until last fall, there were 33 major countries that were not allowed to come to the united states they were invited back in in november and we see particularly in places like new york, miami, all throughout florida, los angeles, the bay area, seattle, we see that demand picking up and actual buyer activity. >> suburbs or cities do we still see people moving to the burbs? >> there's not -- we need more inventory to meet that demand. this is a great time if you are a seller, and you look through left and right and see your neighbors selling homes an unprecedented prices, this is a great time to consider selling your home.

>> do you scratch your head, housing has been hot, you're growing, stock is up today but the fact that since you've gone public you are down more than 50% from those highs early last year what do you make of that >> look, last year, as you know well, the ipo market really struggled. majority of ipos from last year are down below their offering price this year. on top of that, real estate has been hit really hard investors are scared about the rates increasing and my personal view is that they are over reacting i think we'll see that play out over the course of this spring because our belief again is that the market will grow in 2022 i think there's more fear in the market about the impact of rates relative to the reality. the demand is so hot with multiple offers again in all of our markets, that it's not a rate story, it's inventory

story. will the inventory come on line. we have a lot of leading indicators on the market and we're seeing that owners are looking into their neighbors and saying, they got an incredible price and stock market is not doing as well and this is a great time to sell. >> all right robert reffkin, thank you for being with us. major averages are lower that will do it for us on "squawk on the street. "techcheck" starts now ♪ ♪ good thursday morning. welcome to "techcheck" i'm carl quintanilla with deirdre bosa and jon fortt. tough geopolitical take this morning but in the midst of all that, doordash shares are surging after delivering some strong results we'll get a deep dive on those numbers and why some pandemic trends might be here to stay