good morning tension continue to rise in the ukraine situation. president biden is set to meet with nato leaders today. we will tell you what an invasion would look like if russia moves in. moevers this morning. double digit for roku and shake shack. and shutdown averted congress passing another short-term bill for three weeks. it's friday. that's more important than the actual date. "squawk box" begins right now.

good morning welcome to "squawk box" here ono kernen and andrew ross sorkin. we will start with the markets you saw interesting action yesterday. the dow down which is a decline of 1.75% this came amid the heightened tensions with russia and ukraine and figuring out what happened s&p down 2%. nasdaq down by 3% on all of this we are continuing to watch it this morning you will see there is optimism in the markets s&p futures up 20 and nasdaq up by 97 this is on the idea that russia and the u.s. is speaking next week and that stalls anything for the immediate future this is one where every headline

swings the markets we kept track of treasury yields which is under pressure with flight to safety. that continues to be the safe. ten-year is trading at 1.96% the 30-year at 2.29% andrew becky, let's talk about congress it averted a government shutdown for three weeks. last night, senate passed a short-term funding bill sending to president biden's desk a day before the dead licensline the government will run through march 11th the senate takes a week long recess and then negotiate and approve a new spending bill before the next deadline joe. thanks, andrew i was looking at the individual's name. her name is tamara t-a-m-a-r-a. thank you for the update an update on the covid

restrictions in downtown ottawa. police making arrests and hoping to end the gridlock in the capital. police have been warning protesters that the blockade was illegal and threatened arrests and seizure of vehicles and other penalties. protesters say one of the main organizers tuh-mare-h how would you say that wouldn't you rather have t-a-m-a-r-a in there, mac? >> tamara. >> right she emerged as the public face and visible leader of the trucker convoy against pandemic restrictions thank you for that for that helper. andrew. >> we all need a little help sometimes the hepatpatlp helps.

beating estimates of 9 cents for roku growth has been tdeclining. 81% in q2. expects revenue growth which is below the consensus. the stock is off 25% stock down 75% over the last year after what was, as you know, a very big run-up in late 2020 shake shack shares will take a revenue hit in the first quarter as the omicron variant kept diners away and restaurant closures the impact was more acute for shake shack because it is less diversified. it would raise prices in march to offset higher costs for food

and paper products and labor it raised prices in october by 3% i know we were having that debate about french fries, joe, do you remember that weighing in on that debate >> thin is better. >> i would not say the worst french fry is great like i would say about tacos. i had a bad one at chipotle. i like french fries. i'm open to variety as far as to fries. the scallop ones vinegar and onion. loaded chili cheese fries. i sound like forrest gump. soggy can happen to good one withes ordi you know the secret? order without salt you have to make them new. >> fascinating

from the scientific perspective, why is that the case >> they have to make them fresh for you. everything is pre-salted >> oh. i'm slow it's 6:05 in the morning i get it if you add salt after -- okay. >> i have a son who needs french fries with things. i don't like the kind that are compost. have you seen that i don't know if compost is the right word they are not whole potatoes cut into fries and fried they are some type -- you can tell they have been reassembled from other stuff. >> like chicken nuggets? >> they get greasy and not as good we can detect those immediately at this point. we're getting out early today. you want to talk about anything

else it's friday. talk about the russian invasion. >> i'm confused about russia sdplrussia >> i told you it would happen after the olympics it happened with crimea in 2014. >> the biden strategy, if they overhype it, fine. they are trying to use this to sort of force putin's hand and either go or get off the co commode, i guess they are willing to take the flack for saying they oversold it i see a logic to that. >> i don't know if they are overselling it or not. yesterday, you said we shouldn't believe the russians we shouldn't >> we can't. >> nobody knows what putin is thinking here. >> don't you like the new word disinformation.

>> instead of misinformation >> it's lying. one of the papers today. "the washington post" used the word lying maybe it was "usa today. >> in regards to what the russians are saying? >> yeah. it is strange what you see in the separatist areas shelling increasing. they are going like this you shelled us we shelled you it is impossible to tell >> that's why it is so dangerous to have troops on either side. you don't know what will happen in a situation like that an accident could lead to a major world war. >> if you are ukrainian, would you agree to not enter nato? >> they will not give their sovereignty to that. you want the idea of being able to be in nato to have it to protect you to some extent >> that's the bargaining chip,

supposedly, that putin needs to completely pull back >> i don't know if it was us or one of our allies who said we can't tell them they can never petition to come into nato we can't go and tell them to do that it clearly isn't. >> i'm confused. it is an enigma wrapped in a riddle i heard someone say putin never lived in the west. we have no idea how he thinks. he has no idea how we think. we will have colonel jackson on. i hope it doesn't happen i heard they are moving blood units in did you read that? >> i did >> the whole thing coming up, we'll tell you more about this and how russian invasion of ukraine could go if putin decides to proceed i mentioned colonel jack jacobs will join us.

and then steve ballmer will join us at 8:30. we have him, michael rubin and the all-star game. i guarantee michael will be in a good mood after last night you are watching "squawk box" on cnbc and interactive charts to give you an edge, 24/7 support when you need it the most. plus, zero-dollar commissions for online u.s. listed stocks. [ding] get e*trade and start trading today. 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 contracts prices around. [ding] get e*trade and start trading today.

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we have earnings out from deere. the heavy equipment maker

earning $2.92 per share. revenue came in at $8.53 billion. the consensus estimate was $8.19 billion. the results came despite what was a supply chain and pandemic related challenge over a contract we reported on with the united auto workers union. joe. thanks, andrew on the shelling we talked about in the last segment in ukraine on thursday is sptoking fears o an attack. the threat was very high let's bring in jack jacobs medal of honor winner and nbc news military analyst. thanks for joining us. let's start by asking, colonel, doesputin know what he's going to do? has he made up his mind regardless of what happens between now and if he pulls back or invades >> for a long time everybody

thought he didn't know and hadn't made a decision i think it is quite clear what he is manage to do he already started to do it. full ascension among ethnic russians inside ukraine so eventually they asked for assistance from russia russia conducts a limited objective attack which from nato standpoint is the least desirable outcome. a desirable outcome is he leaves after field training exercises to start another one that is not desirable, but easier to deal with, conduct a full-scale invasion with 150,000 troops nato is fully back of imposing draconian economic results on him and take him off the swift system i don't think he will do that at

an all neither does anybodies ey else h top of the food chain. he will use a pre-text to use a limited attack because he knows our allies, particularly germany, has said if he does something other than conduct a large-scale attack, we are not certain that we're on your side and imposing these draconian measures at least partially because the largest proportion of energy coming from russia into europe generally in germany in particular comes from russia and goes to germany. they are not particularly interested in supporting us with those circumstances and putin, i'm afraid, understands that, joe. >> germany and italy likely would -- if it was l limited, we might not we would .

how many scenarios he could pull back and not do anything he could continue and stabilize and cyber attacks. he could go into the separatist areas in a limited fashion saying i need to secure those to protect the russians from genocide that they are subject to or he could go in and call it kyiv now we're calling it kyiv. it he takes the entire capital that would be seen as complete invasion and takeover of ukraine. >> to use the terrible cliche, it's a marathon and not a sprint your two limited objectives are he follows and instability inside ukraine and particularly

among separatists inside ukraine and continue what military people call non connectic measures and cyber attacks and attacking the grid they tried it a couple of times as a test. i think it is those things over a long period of time to make life difficult for ukraine and the allies our allies will get tired of all this after a while they will not be on our side after a year or 18 months of this stuff not to be snarky, but as an aside, maybe believe you are putin and his henchmen living in a country with no control and no oversight. you decide to do the following you go long energy and short the dow and put 150,000 troops on the border with ukraine. then every once and a while, you

say we pull them back after you squared up and you keep doing it lather, rinse, repeat. keep doing it and make yourself $1 trillion. it's good insurance against any problems that the united states might impose with sanctions, joe. >> jack, to that point, the dow has been under pressure. we have come under a little bit of pressure, but nothing like the russia economy russian stock market has been the biggest decliner of the averages around the globe. what he is doing to his economy is questioning the oil money up on the issues, but the idea of sanctions put on russia would in turn hurt the people unless they were targeting putin and the oligarchs in the situation there is a chance they will do that it takes the broader picture does he not care about the russian people >> i think he does care. he does have a constituency.

and he can't have the circumstance that you are articulating that is the biggest or one of the big arguments why he is unlikely to conduct a la large-scale attack he is more likely to do what joe is talking about nip away the cyber attacks and distrust inside ukraine and make them tired and make our allies tired. he has a constituency. he doesn't want to mess that up. >> in summary and we don't have a lot of time. i heard people say he is not big on bluffing. if you are moving hospital tents and blood and 150,000 troops, it sounds like he has something in mind when russia insists we're not now invading ukraine and we have

no plans to invade ukraine are they waiting for the false flag they set up to do it and say, hey, we weren't is that how they do it. >> that is part of the exercise. if you are doing a field training exercise, you move all of your forces, including the support forces into place to conduct and test out operations plans. he has operations plans. i think it is exactly as you say. they are in place so in the event he decides to make a limited attack, he is fully geared up to do it, joe. >> okay. colonel, thank you jack jacobs. andrew, the olympics end on the 20th right? sunday. >> they do they do. watch that date. watch that date. you go back and look at the crimea story that's three days after. coming up, a new report

saying joe rogan's deal with spotify could be worth more than double $100 million it had reported details are next. and later, the pull back in crude prices and what could happen with the energy markets if russia invades ukraine. we're coming back after this (rhythmic electro rock music) (crowd cheering) - bito, bito, bito, bito! - [announcer] bito, the first u.s. bitcoin-linked etf. pnc bank believes that if a pair of goggles can help your backhand get better then your bank should help you budget even better. virtual wallet® with low cash mode℠ from pnc bank. one way we're making a difference.

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update to the controversy over joe rogan the podcaster at an ththe fire m of the vaccine spotify has been sticking by the star now joe rogan's deal with the platform is worth double what was thought which was $100

million. two sources telling the times the deal is worth at least $200 million over three and a half years. trying to think about incentives and motives why people are supporting folks i think $100 million would have been incentive enough. 200 makes it doubly so becks. >> they picked the right photo with him yeah thumb's up $200 million berkshire's warren buffet. it is trying to set the record straight on the microsoft activision deal. berkshire took a stake in the fourth quarter last year microsoft bought the company for $68 billion. the timing raised eyebrows because of buffett's relationship with bill gates bill gates resigned from the board back in 2020

yesterday, buffett took the step of writing a letter to reporters to clear up the miss ck miscon se se semgs. he said 85% of the position was acquired in october and the purchase finished in november with the cost average of $77 when microsoft files proxy materials on the purchase of activision, i would be surprised if they discussed a proposal in early october. i do not know. buffett says the $77a share purchase price could be been $78 a share after the proposal announced. it was no bonanza of any sort for berkshire. andrew, in this situation, he spoke to the reporter off the record before the article was

published. the journal published insinuating the price was lower. $66 or something that article was up for so long during the day, that other places picked it up, too cnn, fortune, new york post. look at the timing interesting time going look at the price. although the information was wrong with that. i think that gets to the idea of it has been out there. if you don't correct the story quickly, it can get out there. with the internet, it is like a hydra. the journal changed the story 12 hours later, but it was too late it is everywhere you can cut off one helicopter h head, but not all of them. that is why he reached out to reporters to say let's make sure this story is correct. he will be posting that letter on the berkshire web site so nobody can come back and clear it

>> i have done a lot of reporting around the transaction. i don't believe the negotiations -- he is probably right. i know he is right i don't believe there was an offer in october >> the offer did not come until after activision shares dropped precipitously. >> it was late november in terms of the actual timing i think that should clear the air. we talked about it on the air the day the disclosure was made about the berkshire buy. it wasn't warren i remember we were speculating it was todd or ted acquisition i suspect it was todd. that's my own guess. nonetheless, people speculate about all sorts of craziness i'm glad they cleared it up. >> you think someone thinks

warren buffett trades on inside information? he is inside information if he wants goldman sachs to pay him 12% during the financial crisis, they will pay him 12%. he does not need to use inside information. he is inside that's just absurd the idea he is how old? he will start that now when he is worth -- 90 he is worth -- that's ridiculous. >> it is i think what is more concerning in the era of fake news accusations thrown out >> misinformation. >> things happening like that. we need to make sure that we correct things quickly when we screw up people screw up. people make mistakes it is on us to correct those things and loudly. the crazy thing is he sent the letter to cnn and fortune and

the new york post. the post has a bad wrap for building a tabloid newspaper without checking anything. >> i take the new york post over cnn. >> cnn had a stoiry suggesting look at the times. it is interesting. the new york post wrote a tiktok saying here's what we learned. i don't know >> people have different views of different newspapers. new york post is not the one i wo would point a finger at. >> did you see a report about this i don't think so >> no. where do you want me to start with other stuff >> i think we're getting off point. anyway, trying to clear up the story and make sure that people know what happened. when we come back, potential responses if russia invades ukraine.

including sanctions on the oligarchs. cnbc's robert frank looks at the billionaires who could bare the brunt of this. as we go to break, let's look at the s&p 500 winners and losers >> announcer: executive edge is sponsored by at&t business keeping your business connected. ! 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. ♪ ♪

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good morning welcome back to "squawk box" here on cnbc let's show you the futures dow looking up 118 points. nasdaq up to 98. s&p up 22. becky. russian oligarchs could face sanctions from the west with an invasion of ukraine. robert frank has a closer look robert, what have you learned? >> reporter: becky, russia's 117 billionaires control wealth in

the u.s. and uk. cutting off to help putin back down on invasion no names have been released. oligarchs in the kremlin inner circle implicit are vulnerable because of the deep financial ties to the west those who are sanctioned would lose access to the u.s. financial system as well as to any assets under u.s. jurisdiction a bigger threat could come from the uk which has been a haven for billionaires looking to protect wealth the u.s. has sanctions against 180 russians which came from the crimea invasion in 2014. oleg deripaska has seen his wealth cut in half since being on the list. the attention turning to the three wealthy russians with ties to the west. roman abromovich

he is worth $14 billion. he is owned real estate in new york and aspen you have alisher usmanov he still owns stakes in a number of tech and media. and leonid mikhelson he is worth $28 billion. he owns art museums in london and new york becky, when you talk to the folks or representatives, they reject the term oligarch they say fortunes have come from running businesses well and no ties or influence to the kremlin. >> so, what is this specific threat, robert if there were sanctions to come, what would it mean take away the soccer team? take back the stocks they own? how would this actually work >> reporter: it's twofold. as you say, take away assets or any assets under uk or u.s. jurisdiction more in issue with the uk with over $2 billion of real estate

and a lot of assets from newspapers to soccer teams, et cetera the bigger issue, though, is cutting off any access to the u.s. financial system or the western financial system for many of the guys because they have large companies and they need access to capital and u.s. dollars. it is the banking system threat that hurt the existing oligarchs and those on the next list. >> we were talking with concern jack jacobs. he says putin has two contingencies. what would happen if -- i'm trying to play out the pressure points if they did this and actually took away the assets. then what happens to putin >> reporter: the pressure points is exactlythe debate about sanctions and oligarchs. there's one theory that basically if you put pressure on the oligarchs, they will put

pressure on putin to back down many russian watchers say it is reverse. the fortunes and power of the oligarchs comes from putin the idea is putin's wealth is distribute ed through these people many say putin cares about wealth more than power or as much as he cares about power if these guys, the 10 or 12, are truly his money men and they hold a lot of his wealth, the idea is by putting pressure on them, they directly get at putin's wealth and that will force him to back down i think the idea that these guys could put pressure on putin to change his mind is a little bit -- it will not happen sdphappen >> robert, thank you we have more coming up on "squawk box. futures are looking up we will talk strategy after th

break. don't miss our interview with michael rubin with the deal with the super bowl ratings and more you can watch or listen to us live anytime on the cnbc app >> announcer: this cnbc program is sponsored by baird. visit bairddifference.com. 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 sales are down from last quarter, but we're hoping things will pick up by q3. yeah...uhhh... doug? [children laughing] sorry about that. umm...what...it's uhh... you alright?

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investors are under siege with the aggressive fed on one and the markets falling sharply with the dow falling sharply. so far, the s&p and nasdaq have dropped about 8% this year and 12% this year. i want to bring in lisa eckerson and megan who is portfolio strategy good morning to both of you. lisa, we are all trying to figure out what is supposed to happen i will tell you it feels like every day you hear of the high growth company, not even high growth, but company coming in with earnings. sometimes missing and sometimes reaching expectations and you are watching the stocks drop the question is what are you supposed to do is this a moment you are supposed to wait for this to

play out >> a inndrew, to your point, its been a rocky start to the year there is a question of what the positioning should be. we are advocating to our clients and our advice at this time is that they would keep their position whether in stock or bonds really close to what their strategic al allocations would . the reason is what is going macroeconomicsly and we had sentiment shifts, you have a solid economy. that is supporting what we see overseas as well you have a solid fundamental basis and standing on that position that you typically hold, we believe, makes the most sense. >> lisa, if we talk at christmas time this year, where do you think the markets will end >> so, our forecast, andrew, is for moderate rise in u.s. stocks by year end.

again, it may not be at the same double digit levels the last few years. we do see risk points on the horizon. the reason we're allocating more of a balanced outlook and staying at the strategic position you normally have in equity is on the one hand that we see the macro picture and earnings doing overall well. we have the ones you mentioned with mondetary policy the fed is determining when to move from an accommodation to normal normalization. that presents risk to the market >> meghan? >> we had an overweight cash position coming into the year. that has been beneficial i agree with the comments that the economy is strong f funda fundamentally. i think the first half of the year will be rocky for all of the points mentioned we had fed tightening.

we don't know how much that is concerning investors you have inflation you still have ongoing supply chain disruption and the economy is slowing having cash and that dry powder this year has been beneficial for us to take advantage of the volatility we have done that. >> that is what i was going to ask. it's great to have cash, but you have to be right twice you have to get into cash at the right time and you have to deploy at the right time >> right you can never time the market -- we did deploy it recently in the last pullback. when you look at the market, there were pockets of the u.s. market that had fallen 10% to 15%. with the long-term investment, we deployed cash in the areas beaten down into the growth areas. one area within growth we like is in the small and midcap space more than the large cap space. small and midcap growth has been beaten up over the past year and it hasn't participated in the

upside long term, that looks like a good opportunity for us as well. >> you aring doe doing that on n index bases? >> from the mutual fund and separately managed account as well >> lisa, you know, one of the things you said is the second half could be better than the first half one of the things i can't figure out about this is the fed is probably going to be moving in this first half, but also likely through the second half. don't you think most of the cuts will have to come in the second half and -- although we know they're coming, i think there is some view that they won't? don't you think there is something there to that psychol psychologically? >> andrew, as we look forward for the path of the year, we still see solid corporate fundamentals we will get moderate increases in the u.s. equity markets this year the path how that takes place is

uncertain. it could incur in certain months and not others on the back of that, it really is our advice that clients stay position close to what they normally hold in equities. to your point, we see it difficult to dive in and out of the markets at certain points. we see if volatility continues that there may be opportunities to reposition. we think that more balanced perspective right now makes the most sense for clients >> okay. lisa and megan, thank you. i appreciate it. nice to see you. news coming out. breaking stepping down as chairman of virgin galactic and will leave the board. he helped take the company public via of spac in 2019 the company appointed evan lavell as interim chairman i don't know what the story behind the story is.

>> that's all we know. >> what about $9 a share came out of the gate at 48 was as high, it looks like -- as high as -- close to 60 at one point. 54 55 bucks it's at 9 now. >> i'm sure there will be more to come with the story we'll continue to watch it. when we return -- >> i want to say for all those giving us a hard time about asking challenging questions of spacs early on here we are. when we come back, oil headed for a weekly loss after starting the week at an eight-year high. we'll have the latest on the russian impact wti down 2% this morning to $89.84 we'll be right back.

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tension between russia and ukraine is continuing to affect oil markets in the united states and internationally. joining us right now to take a closer look at energy markets this morning is jeff curry and jeff, you've been saying for quite a while that commodities is the place to be, especially oil. we've actually seen oil prices pull back this week despite the headlines that we've seen. are we reaching a top, or would you say this is a place you would continue to be for the foreseeable future >> well, i mean, we have near term down side risk right now coming from iran and the way you can tell the down side risk from iran or what's going on in russia is watch european gas

european gas is going up and the oil market in the past 24 hours usually an indication the market is concerned about an iranian deal if the deal does get announced between now and the state of the union, which is where the likelihood of it is, you know, we're not going to see oil for another two to three months because there's going to be wavers at the beginning. you do have oil in storage that can come out when we think about the longer-term impact, inventory is low, supply is constrained the market is still to the up side we think net, you take our 105 barrel target for the end of the year, it might move it down to 98 -- i'm not going to say that's going to be the full hit.

let's also remember a lot of this is being priced in right now. if we do see a deal it doesn't derail the longer-term story >> people are worried about a deal being struck, and we should be probably clear those are investors worried about it because it means oil prices will come down. a lot of consumers eagerly hoping prices will come down, too. if there were a deal to be cut with the iranians, what wuould i look like and why do you think it's only a speed bump in terms of going higher? >> i'd like to point out iran is exporting two times the amount that it was during the jcpoa, so it is exporting, you know, at least 700,000 plus barrels a day of crude right now in terms of thinking the barrels that can come on, obviously they have to get the inspectors in, get approved just like we did

when we went through this in 2015 and once you get the inspectors approved, everything meet the conditions then the oil starts being exported in terms of looking at that production oil, that's looking down the road. they can go 500,000 barrels per day at first all the way up to somewhere in that 1.3 range further out in 2023. so it's meaningful, but it's not absolutely massive and game changing in any shape or form. but i think the key issue is we don't have a deal yet. it's still speculation and, two, once it's approved you've got to get the inspectors in and there's a lot of different hoops before you actually see the oil it would be a welcome reprieve to a very tight market but there's still an uncertainty around it. >> what happens to the oil market if the invasion does happen what happens if it doesn't

happen what's your longer-term prognosis for 2022 >> you know, we've taken the view and i think a lot of people in the market agree the odds of a disruption around the russia-ukraine standoff is very low. and i like to point out, you know, the only time you've ever seen energy supplies between russia in western europe ever disrupted was in 1941 when germany invaded russia in other words, it just doesn't happen it's usually assured mutual destruction between both parties. they don't want it to happen i don't know how many people are out buying oil based upon that disruption what people are buying oil at on the back end of the curve is really a hedge against the inflation story. and that's where we're seeing the buying on the back end of the curve more on that inflation story. >> jeff, is this a perfect storm for inflation?

and what i mean by that what do you adescribe ascribe it to? is it the reopening and supply chain, so much money put in during the pandemic there's too much money chasing too few goods? or what about the fed? people say absolutely the fed's balance sheet and the amount of bond buying and keeping rates this low, they want to really blame the fed for almost 60%, 70% of that? how would you divide up the call >> i would say a lot of this is the supply driven story. we call this the revenge of the oldchy what did people want to buy over the last decade. they wanted to own netflix and not own exxon. bottom line you see capital being directed into the new capital starving the capital needed to grow the supply base

remember it's not just in oil. we see metals and mining and gas. that's the supply story. now let's overlay the stimulus on there what that did was created the surge in demand that exposed the severity of these problems and also now you've exhausted your spare capacity, now you've drawn down your inventoriys this market are prone to disruption >> if you think markets overall are really the place to be, what's your favorite within that space? what would you tell investors if they're looking to double down >> copper is always our long-term favorite here. the reason why it's the new oil. you cannot decarbonize the world and move to electricity without

copper given the restrictions around the periodic table and chemistry it's the only one that can conduct lelectricity enough to boost it we expect to see peak capacity in production in 2023 which creates a really tight market. inventories are very low we like to say copper is the new oil and strategically the most important commodity as we look out into the future. >> jeff, thank you it is 7:00 on the east coast, and you are watching "squawk box" on cnbc and we've got a big line up for you coming in the next two hours as well including dr. scott gottlieb let's also take a look at the futures ahead of the friday trading session on wall street

things up at least at the moment the s&p 500 up about 18 points congress has approved a new spending bill we want to tell you about that will fund the government through but only march 11thch the senate passing that bill last night following house approval earlier this month. now it's going to go to president biden's desk for his signature. meantime the fed president mester saying that removing accommodation needs to happen even faster than it did following the 2008 financial crisis and facebook parent meta platforms no longer among the top ten most valuable companies. it's now fallen into 11th place after its value was cut nearly in half. now it's worth about $565 million. let's get over to dom chu who's

looking at this market's premarket movers >> good friday morning so what we have first of all is check out what's happening with shares of deere on the earnings front. we are seeing fractional gains here, off its premarket highs, just up about nearly 1.5%. and a lot of demand from farmers because of rising crop prices helping to drive demand. deere comes out with better than expected profits and issues a forecast that is above analyst consensus estimates as well. so deere shares getting a bit of a bid. that stock is up about 27% over the course of the last year. also watching what's happening with roku. it was a mixed story, but the tail of the take doesn't really show you that. we've lost nearly a quarter of its value in the premarket trade because the streaming devices maker and content maker comes out with a mixed report. the revenue fell shy as did its forecast for profits and revenue

growth as well roku shares right now down about 25%. you can see over the last year losing about three quarters of its value. of course tough comparisons for roku going forward they expect full year 2022 revenue to grow in the mid-30s on a percentage basis, but, again, that's a slow down from what we saw during the pandemic when everyone was locked down at home and everyone was streaming video. after sell-offs yesterday that erased about 2.5% of some of the biggest companies in america, apple shares are up. alphabet about 0.3 and you mention meta platforms is one of the names your watching closely. check out nvidia because some of the biggest decliners in yesterday's session the most in the s&p 500 and nasdaq 100 were chip stocks like nvidia and meta

platforms as well. back over to you guys. >> thank you i'm laughing at nis. coming up, crypto prices remain in a narrow trading range. it's only, like, 40% either up or down that we're seeing, which is narrow for crypto but i think we're talking about actually today since the sell-off we're seeing. i know it's 44,000 two days ago and now it's 40,000. we have details on the fourth largest crypto hack ever that took place earlier in february and that's coming up next. i think maybe narrow range is an o oxy moron for crypto you're watching "squawk box" on cnbc with joe kernen, becky quick and andrew rosorkin.

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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. 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. . welcome back to squawk earlier this month wormhole one of the popular bridges was hacked $321 million worth of either was stolen making it the fourth

largest crypto hack ever the crypto arm failed by replacing the funds, but this is how it's supposed to go. dave, it's good to see you help the audience understand what happened in this instance and then maybe we can walk through the implications of it >> sure. good morning thanks for having me so work hole is a cross chain bridge that allows layer one block chains to communicate with one another. and very sophisticated, well resourced attacker found a vulnerability in this bridge, was able to exploit and effectively forge the check that vouches for the fact that either is backing new contracts on other chains they were able to do so on about 120,000 eth and then drain those from the system. >> dave, just for our audience,

and there are some who are super sophisticated experts in this, some who are not going to understand it. right now things run on chains for lack of a better phrase, and you could argue that ethereium is its own chain what you're doing is creating a bridge between those one of the thoughts about block chain is that it's a trusted environment, and it's trusted because everything exists on one chain. you've tried to develop -- or work hole has effectively developed a product to connect these chains, and it's raised questions about whether that could actually work in practice because clearly you're taking something off the chain. >> that's right, yeah. the chains are a ledger that have an immutable record of all the transactions that have happened on that chain from the beginning. the work hole extension from

that is a additional bit of code that creates the ability to pass from one chain to another. that has been developed by some of the best block chain engineers in the world and audited by several of the biggest block chain engineering auditing companies in this case there was a bug and it did allow the exploit to occur. i think this is a growing pain on the path to a very hardened code base, which takes time. i think the decade we've seen some of the home layer one block chains out there have hardened over time, and we expect that to be the case here, too. >> when you say harden, that's the stock gets better, but my understanding is that the underlying code for athereium, for example, and the underlying code for bitcoin have not changed since the beginning. >> there have been minor updates, but i think that's right. i think the process of being open sourced and having an

entire global community looking at vulnerabilities, proposing changes to the code base >> so 320 million basically disappears, goes to money heaven or goes to some robbers or now ro robber barons depending on what you think of these folks and you guys are stepping up and effectively replacing that money for customers, but in most environments that doesn't have to happen. it's not like a bank it's not like an insured system, typically, right >> yeah, that's true and the money has not totally vanished the either is still visible in a lot of the wallets they've moved it into. we're working very aggressively with the fbi and private investigative teams, and we may not recover the funds tomorrow

or next month. but the pursuit is going to be a very long one. and government and private agencies are going after these we're very hardened by the fact the attackers are being brought to justice and those funds are being recovered. so we hope we follow the same path here. >> how should we think about this idea these really are quote-unquote trusted networks the whole idea is to take people out of it, to make this all machine code, effectively, and for everybody to trust it and not need to have insurance on what -- and not need to go to somebody as a backup or be able to call somebody that's the whole concept here, and here we have a moment where that's not the case. >> yeah, that's definitely the vision, andrew and i think that's our expectation for where this all goes it's worth pointing out just how early we are in the process of creating new infrastructure.

i would liken it to when universities were doing research on sending the first electronic messages back and forth. that was a pretty technical process. that evolved over time we're seeing a lot of good work being done in this case, although this is a bump in the road we think these problems are solvable and we'll achieve that outcome you've identified. >> but tell me if i'm wrong, the conundrum is in the money world you can't get into a situation where you send an e-mail to somebody and the e-mail bounces back effectively, right? in the money world the e-mail has to go through. and if there's nobody to call when the e-mail doesn't go through or the money doesn't go through, you have a problem. >> no doubt about it and the fact there was one of those problems that was -- that manifested itself a couple weeks ago, and our conviction that we are going to continue to have

development and additional security and even a stronger code base coming out the other end led us to put our own money into the project and make sure that it continued to grow in that direction >> and that was my final question you put up the money how much money do you guys have? i'm assuming some of that has to be from crypto from other things and some of the money you've raised before. >> so we're a quantitative trading firm that only trades our own capital. so that money was entirely our firm's capital there was no money raised from the outside to fund this we have been in this business for an extraordinarily long time we started trading crypto in 2015, 2016 and have been a company involved in trading all asset class across markets this is our third decade doing that, and to do it effectively you have really got to have a balance sheet that's got dry

powder and available resources both for opportunities or threats like this tithat might come up. so that came from our own balance sheet. >> it's a much longer discussion i would love to talk to you about crypto and crypto prices and everything else. i hope you come on back. >> look forward to it. when we come back, president biden set to convene with allies after warning of a potential russian invasion of ukraine within days. we have the details straight ahead. before we head to a break, though, let's get a check on the markets this morning things looking a bit better for the bulls this morning than yesterday. dow futures right now indicated up about 125 points, the s&p futures up by 21 and the nasdaq up by 92 stp ssprty after a day of et eeloes yesterday with the nasdaq down by almost 3% yesterday. "squawk box" will be right back. 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

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news breaking in the last half hour. stepping down as chairman of virgin galactic and going to be leaving the board. the company has appointed its

interim chairman but you're look at that stock now down about $9.12 stock was as you can see there started i think about 48 bucks when it was out of the gate. got closer to $55, and just another example of one of those companies going to take more capital in an environment where capital is going to cost more money, investors are struggling to see where the value ultimately is going to be. i said it before, you know, at least i felt like i got, you know, so much criticism because -- >> because we used to give them a half hour every time they came out with a spack >> no, no, no and i would challenge him and raise questions about the spack, and you would have folks go on twitter and by the way, smart

guy but people seem to get very upset if you would ask any kind of tough questions about how this was all supposed to work, and i think that when you really understand the incentives and the fee structures and everything else around spacks and the challenges ahead for countries that don't have profits, those questions need to be asked >> yeah, and because of disclosure rules around spacks are different than other investments. and that was part of the problem, too, was making these things kind of available to anybody and everybody at all times. and don't forget chamath it was about a month ago he raised questions about him saying nobody cares about the uyghurs plight in china. >> and there was a health care company, too >> he made a lot of money. >> all the metrics were challenged about >> clover. that's right

>> clover. i like when lebeau talks about spacks, but the entire spack world in fact has been one of the problems and i think a manifestation of all the fluff in the markets >> joe, but what was so interesting about the spack phenomenon was i think there were a lot of us who sort of saw this as a -- as one of those sort of money grabs by a lot of famous, rich people. and at the time there was so much push back because all these retail investors said, no, no, no, we want the opportunity to invest in this stuff early we don't care about disclosure, we don't care about any of it. >> we had the argument about bitcoin inherently immoral or used for immoral purposes. >> these were supposed to be for high end investors but they weren't getting the

same -- i don't know if it's gone for good, but the people who are at the beginning of the spack had different terms than investors getting in afterwards anyway so they could make money while the retail investors did not still. >> the ipo, it's not like you can't do that with the ipos, too. >> the incentive structure for all of this, it's a shotgun marriage i don't know if you guys were focused on because yesterday -- and bob diamond has a spack involved with circle this is the stable coin company. they had to renegotiate the deal because they're running out of time the deal was not going to close on time, and because it wasn't going to close on time they'd have to give the money back to the vestors. instead of getting the deal valueiation at $4.5 billion they renegotiated and now the company is being worth $9 billion, which means all the investors are

being diluted. >> by the way, we should have that shot clock saying you've got to do a deal in two years. you're going to spend the money whether you find a good deal or not because otherwise you have to give it back. >> i think the index at the moment at least is demonstrating these are complicated and challenging investments. >> unfortunately, the squawk spack is never going to happen, though we missed it let's look at the stocks to watch. shares of draftkings getting hard hit analysts focusing on the full year guidance, and that's the issue. we'll have more on that in just a couple moments up 15% shares of shake shack are falling. the company said it's going to take a revenue hit in the first quarter as omicron variant kept diners away and led to temporary restaurant closures. analysts saying the omicron

impact was more acute for shake shack because it's less geographically diversified than some of its competitors. shake shack said it would raise prices in march to help offset higher cost for food, paper products and labor and higher prices in october by around 3% dr. scott is coming up should i ask him, becky? my free covid testing kits finally came yesterday how many did the biden administration -- >> 500 million they were promised i will tell you i was able to find testing kits -- they're plentally available again. >> what should i do with these >> save them you might need them next fall. >> we can only hope, andrew. on the company's acquisition of a new business "squawk box" will be right back.

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good morning >> reporter: good morning, becky. the 11th hour diplomacy continues as the biden administration continues to warn an invasion of ukraine could come soon. president biden today will hold a call with transatlantic leaders to discuss the developing situation in ukraine. that is going to happen a little bit later today. meanwhile in poland the defense secretary, general lloyd austin, held a press conference this morning. in poland 4,700 u.s. troops are stationed. he would not comment an any future deployments but did say that poland would be acquiring two new tanks from the u.s., and he pledged further to support ukraine's neighbors saying that what mr. putin wanted was a weakernateo, but that is not what he is going to get. russian minister sergey lavrov has accepted an invitation to talks next week conditioned by no further military action by moskow the celllen has said president putin will be overseeing nuclear

drills in the near future. in ukraine consumers are stocking up on gas and guns. even the threat of an invasion is impacting currencies. here's a former ukrainian energy official >> as far as the tensions remain the same or increase, the prices on gas will increase as a result, and the exchange rate of the local currency will drop >> reporter: ukraine's president will be meeting with vice president kamala harris today in munich at the munich security conference becky, it's an understatement to say the world is on high alert at this moment >> kayla, just the idea lavrov has agreed to these talks next week on theassumption or on th condition there will not be further incursions or conditions for anything to happen here. should we feel good about that or is this a situation where if they're planning to invade anyway, they don't care if the

dots are off >> i think it's probably the latter the administration has continually said it's impossible for them to get inside the minds of president putin or sergey lavrov and i think there's rightful skepticism especially after what we've seen this week where russia public displays to deescalation and diplomacy even though the action on the ground and behind the scenes did not reflect that so i think the administration is skeptical, although they are cautiously optimistic that perhaps if the talks happen, then it will mean that at least the situation has not intensified further in the next week >> thank you we'll be watching closely and i know you will, too still to come dr. scott gottlieb on the future of the pandemic plus fanatics announcing a major acquisition.

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the world health organization saying global cases of covid dropped 19% last week the agency also saying a subvariant of omicron is steadily increasing and dominant in several asian countries joining us right now is dr. scott gottlieb, former fda commissioner and cnbc contributor. he also serves on the boards of both pfizer and alumina. and he's got an essay out in times magazine americans are still living with a 2020 covid risk. it's time for that to change it's good to see you this morning. >> thanks a lot. >> let's start quickly with this idea covid cases dropping 19% around the world to what do you attribute that? >> look, i attribute just to the omicron wave passing through if you look at what happened in south africa, it moves up very sharply, moved down very sharply. you didn't really see an overall change in the trajectory of the pandemic cases probably had a longer

plateau, but it's hard to discern. cases have come down b2 represents the cases. probably the immunity people have acquired from omicron, from b1 is cross protected from the b2 variant there doesn't appear to be anything on the horizon where we see omicron infections spike up sharply in renalens of the world and come down just as quickly. and now you're seeing most on the back end of that curve >> if we had the expectation of these waves continuing to hit us from time to time, you still say this is a point where we should be really looking at the risks very differently than we were two years ago when this all started. lay out what you think the risk factor is right now and how we should address this. >> yeah, look, i think the expectation is we're not going to get hit with these successive

waves. and we've had these successive ways of infection. this is respiratory pathogen that really shouldn't be circulating in the spring and summertime it should be a winter pathogen so it's going to settle into that seasonal pattern. many people expect this will be the year that happens. i expected last year would be when that happens. i think the conventional wisdom it's more and more likely this is going to slow its mutation and omicron will be the dominant mutation now, and that means we should have a relatively quiet spring and summer. hopefully there's no new variant that sweeps through the south like delta did last year i think that's the base case right now. now, again, there's a lot of uncertainty. we don't fully understand, and this virus has shown the capacity to surprise us before i think that means we need to rethink the notions of risk. we have well more than 90% of

the population has some form of immunity most people who chose to go unvaccinated don't want to be subjected to the measures. with that much immunity in the population, not just broad immunity but deep immunity, this shouldn't spread with the same velocity and same pathogenicity than it had in the past. we shouldn't be closing schools anymore. people can return to work. you can see mask ordinances lifted in local townships. we need to lean forward and start relaxing some of the measures as vigorously as we put them in place. >> the cdc says that it is considering these rule changes, but it's kind of behind with what every local official, every state official is doing at this point. >> yeah, look, i think the cdc has a view that it's appropriate for them to be lagging a little bit, that they represent sort of a base case and states can lean forward more aggressively based

on local cusms, local risks, local demands of citizens. i don't know if i necessarily agree with that because i think states still look to the cdc as being an authoritative body. until we get out of that culture if cdc does lag it's going to put pressure if cdc wants to maintain its position i think they need to be thoughtful and lean forward as well they will announce new guidance next week on mask recommendations in particular tying risk to local measures of prevalence and hospitalizations and not just cases i think that's an appropriate adjustment that we start looking at the impact of covid and not just daily cases, but it's late in the game to be doing that this is something we probably should have been doing a year ago. >> the idea the cdc hasn't gotten there, and, you know, what you've said in terms of them still wanting to be a leader when it comes to this, is it too late for that, because it feels there's so much broken in terms of trust, what people believe and don't believe

anymore. >> look, i think the institution has been degraded and people's general view of public health more broadly has been diminished it can be re-claimed i don't think it's too late, but i do think the public health community needs to recognize i think there's a lot of sentiment in the public health community that the criticism of the public health crowd comes mostly from the political right. and there is some truth to that. there's a lot of criticism on the political right but not all the political right. there's a lot of people across the political spectrum that have lost across public instulaitutis i think there's going to bow a large section of the population and people in congress both republicans and democrats who are very skeptical about shoveling more money to the cdc. the public health crowd needs to do more introspection and look for ways itself as well. >> i was noting the irony the

tests are coming now, the half a billion or whatever it is, it's like great sort of pointing out we weren't prepared for omicron, and agencies and the administration i guess probably could have prepared better for a variant and had more tests available, but the fact remains what should we be doing in terms of stockpiling stuff right now in anticipation of whatever comes in the future? and i know someone on "the view" who says she's just going to wear a mask -- she's going to wear a mask permanently. if you don't want to get the flu, that might be a good idea if you don't mind wearing one, might as well wear one permanently i guess. >> yeah, look, with the testing we had a testing shortage at a very tragic moment right when the biggest wave of infection probably in modern history occurred just at christmastime

so when peak demand occurred we had the biggest wave of infection really in modern history. so we did have a shortage. i don't know that anyone really could have prepared for that no one anticipated it, but going forward if we want to try to anticipate having a reserve supply for those kind of contingencies we're going to need to go in and subsidize this market, because what's going to happen is demand for tests is going to fall off. you're going to see the tests being given away in bargain bins and cvs. right now they're probably manufacturing about half a billion tests a month. they're going to pull back and start manufacturing less tests and if we have a surge in the fall ramp up again if the government wants to be ready they're going to interest step in and subsidize and recognize some of them are going to be thrown out and you can't have a lot of public hammering when it happens or criticism of the government because they're quote-unquote wasting tests. so you're going to have to

subsidize excess in the system my local school is lifting the mask ordinance my kids won't be wearing a mask when it becomes optional, some will i think generally you're going to start to see people peel back i'll probably continue to wear it a bit longer than perhaps i need to based on the overall risk just because i think it's a matter of etiquette. i think when i go into a store or pharmacy if they see people around them wearing masks it makes them feel more comfortable. i think it's a community standard and community norm now, but i think a lot of people are going to take the option not to wear them. >> very quickly in terms of the test, if you think this is seasonal thing and coming back next year, we can hold onto the these tests but they expire. you had talked about the fda getting to the point they extend the life of them are we going to be able to keep a test we haven't used this go

around >> the new ones coming into the market have a different paper and i think it's extended to two years. there's another one on the market also extended to two years. they were still under emergency use authorization, so they should be pulled back and given approval i expect when that happens they'll get shelf life extensions most of them are probably good for two years. >> but don't keep the ones you have that have an expiration date already you have to wait for the ones that have a different paper? >> look, i think they have longer than the expiration date. i don't think you need to rush to throw them out either i think it's going to be prudent to having a stockpile on hand heading into next fall people should have five, six tests on hand to the extent it's possible and that's what the government is trying to do with these free tests. >> scott, we often talk to you about health but you're also an investor and a business person how do you think about investing in testing companies and i'm thinking of abbott but

also "q" which recently went public, and we talked a lot about that test on our air and that company >> yeah, look, i think it was a difficult space to invest in at the outset there were a lot of different companies with a lot of different solutions. and the presumption was among the investors are talked to that the people going to come to dominate this space were going to be the big test manufacturers like an abbott that said, you've seen some disruptive technologies. you've seen the "q" test, for example, which is very disruptive technology. those were hard to find. >> dr. gottlieb, thank you have a great weekend and coming up after the super bowl draft kings is getting ready for march madness. if rutgers isn't there there's just no -- >> we're playing perdue on sunday four straight in the top 25.

matt's going to get mad i'm talking about this because he thinks i'm going to jinx it. >> i can't bet on rutgers which is -- >> no, don't bet on it >> i can't bet on it because it's in new jersey weren't you getting four or five points we'll be rightac bk. 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.

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coming up, what's draft king's path to profits the company reporting just a short time ago we're going to break down what to watch after the break plus fanatics ceo on the company's latest acquisition and so much more and later the former microsoft ceo going to join us for a ws minneakg interview. we're going to be right back after this alright, so...cordless headphones, you can watch movies through your phone?

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after a record setting weekend of sports betting on the super bowl, draft kings designed march madness as another huge sports betting event the sports book platform reporting earlier this morning and contessa brewer joins us now with more on the numbers and the company's future i took the money on so i didn't get to take the points, contessa let's not talk about that. >> sorry, joe. >> that's okay >> that's not the only bummer to report look at draft king's stock this morning, way down in the premarket because it reported top and bottom line beats. the consensus was 445 million. that's good, right earnings loss of 35 cents per share versus the street's expectation of a loss. and for the first time the company reported a key earnings

metric of loss of $128 million for the quarter and provided full year guidance a loss between $825 million and $925 million. now, draft king raised its 2022 revenue guidance from 1 $1.85 billion to $2 billion. had revenue here is besides the point because of the revenue they've been burning to earn investors. new york and louisiana just launched mobile betting last month. the sports betting operator says five states where it up operates already are contributing positively to the bottom line and says without the new state launches it would have seen positive ebeda because it's expensive to launch in states

like new york and louisiana. last quarter it spent $263 million on sales and marketing but spent $184 million in stock compensation for the quarter the earnings call starts in less than an hour, and the ceo jason robins will join me this morning on squawk on the street 10:30 a.m. eastern time. a lot of the focus is just how does this company become profitable they said in the release they anticipate it'll be in the fourth quarter of 2023 >> i wonder if you can bet on that on the website? i don't know or when. thanks, contessa sports merchandising fanatics announcing another acquisition this morning buying a company we want to talk about it with michael ruben. first, though, whoa, joel. and playing the champions from last year i should point out

it was in milwaukee, too, wasn't it were you there we got mic problems. hold on, michael do we have audio with him? let's try again. all right, we're working on it i can tell you that -- michael, i was going to ad-lib and say i saw that celtics game a couple of days ago. i think that was not the finest moment, but to go into the all-star break last night you must and hardin's not even playing yet with you guys, you must feel pretty good about this important stuff. we still don't hear you, michael. i'm going to do my best -- who was that, becky, that did -- that was bill o'reilly we have got to get this -- and frank reynolds i'm going to like explode. he's got some great stuff to say

about the sixers but we're going to go to break and really honestly get his mic working, which was a good idea, good thought before we interview him. we'll be right back.

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we are continuing to work on those issues with michael ruben's microphone what can i say, audio issues, technology is hard we'll get back to it stock futures are higher this morning after the dow suffered yesterday. let's get over to mike santoli mike, how should we feel about this on a friday after the losses we saw yesterday? >> becky, a little apprehensive still ahead of a three-day weekend. we do have an expiration today that is factor in yesterday's low volume decline this is where it leaves us, though, with the s&p 500 we did not revisit with the january 24th intraday low. this low right here so really not a lot of a cushion right here i will say it's a lower intensity sell-off here. whether that's good or bad, that's what's going on

it does seem yesterday was a bit of a switch in the pattern where you did have crude oil prices lower, and maybe we'll get a clearer view take a look at small caps. they are struggling below a level sort of last year's range. all last year every pull back a lot of stocks around here, unprofitable they're not really the kinds of pricing names the market seems to want at the moment. home builders against semiconductors, now semis are now close to 15% below their highs. see how there's a lot of similarity here between the end point of these two charts, and obviously neither one is really broken down fully, but right now it does seem as if we'replying defense not offense because

either the supply possibilities and the hangover of all that boom time, and semiconductors and higher rates these could be little bits of bellwether groups to keep an eye on if we figure out we're going to holdthe bottom end of this range. >> watching that there's been so much pressure. down 17% earlier this week, now down maybe 15% from its highs. what is that, the inflation picture? just the idea small business might not be able to control that or have as much influence over it as big business? >> that's definitely part of it. and when we talk about the russell 2000 these are still small companies. they use companies that obviously are not profitable to start with either they're younger or have some kind of distress. also credit markets are very reliept and, and that's kind of tightened up and just risk appetites are not there for aggressive small caps. >> mike, thank you

we'll see you soon it is just after 8:00 a.m. on the east coast, and you are watching "squawk box." i'm andrew ross sorkin along with joe kernen and becky quick. let's show you the futures after what's been a wild ride this week it looks like this morning things are going to open up. dow jones about 135 points higher, the s&p at this moment looking to open about 23 points higher steve ballmer is going to be our special guest. lots to talk with him about, but now we're going to try to talk to mr. ruben, right, joe >> nba friday. clippers coming up try it again michael ruben, ceo fanatics. i was reading your lips. i can summarize what you said. you weren't in milwaukee for that incredible win last night and you don't remember the celtics game whatsoever. you don't even know what i'm talking about from a few days ago. have i got all those things,

michael? >> joe, if it doesn't work out for you on cnbc i think you'd be a great spokesperson for fanatics i don't remember anything about the celtics victory a few nights earlier. >> fanatics valuation, $1.5 billion in 2012 and then three in 2013, up to $18 billion in august in 2021. you bought these stubs and turned them back into i don't know really precious assets. so what's this latest thing you're buying? and then i want to try and get what you think the valuation is now and where you think you can take it. mitchell and ness, and talk about how you're buying it, who's coming along with you and everything else, what they do. let's hear it. >> sure, yes it's really a very relevant cool brand that makes high end merchandise. it's really a new category for fanatics to come into from owning the brand and building such a great, culturally

relevant high end brand. we're doing this together with so many great partners, jay-z, little baby, the ceo kevin walt, aims wats, so great group of partners that can take this 100-year-old plus brand that's been growing incredibly quickly and ready and help to take it to the next level we're going to expand the market and use it to really capture a higher end customer end at fanatics >> you probably won't confirm the current valuation. so the valuation let's say it's 250. somebody had that as a number, $250 million can you do to this what you've done to those other assets you picked up over the past decade >> look, this business has grown quickly. we looked at five or fiks years ago and they did a great job

building the business. and exciting thing for us we feel they're just getting started. ret row products, this type of just really cool culture ware is very in trend right now. we think it's just beginning. the ability for fanatics to put it through its platform we think the company is just getting started, so we very bullish for the future having guys like jay-z and meek mill and little baby and mack carter they've been wearing the product since they've been kids. to have them help take the company to the next level is something we're excited about. >> everything's reopening, gambling, draft kings and fandual and all these areas, i wonder how athletic wear and branded jerseys how this is doing with the super bowl. did you know -- did you predict this or just have a horseshoe up

your pocket? how did that -- it could not be better the environment right now for this business. >> yeah, first of all, anyone in the business should tell you they don't need luck and time is not being honest certainly, we've been very bullish on growth and sports people made a big mistake at looking at the linear tv rate and what's happening from a streaming perspective, what's happening from a social perspective. we're all in a different place it's like looking at brick and mortar retail sales is like looking at ratings without, you know, just one aspect of it. so we think when you look at everything happening together there's so much momentum in sports, it's the most valuable content, the nfl's content, this is content people really want to consume. i think we saw the nfl 48 of the top 50 broadcasts on television last year. and i think this is going to

continue to break momentum we're bullish on our merchandise business, our trading card business, i-gaming, into the nft business i think the great thing for us all these businesses are working together because we have one brand fanatics and a great structure to introduce all these great products today close to 100 billion sports fans. >> you've got a lot of stuff and you just went over a lot i'm sure you'd like to get a lot more how many deals do you entertain on a weekly basis would you say strategically and are you thinking about and why wouldn't you like the currency from an ipo to use and effect a lot more growth >> yes, two different questions. first and foremost, we do look at thousands of companies a year, and we do less than 1% of the deals we look at we have a great mma team, we have a great strat aemg team

we like to look at everything because that's how we learn. i make the joke all the time i barely made it out of high school, i didn't go to college so the only way i'm learning is meeting so many different great companies. at the end of the day the only thing we do are consumer company that really benefit from being part of the fanatics network and part of really the entire digital platform i've been consistent on this, we will go public in the future i think it's kind of a mid-term thing for us when you look at where we are today some of the growth we've had, we feel like we're just getting started. i feel like this is the beginning of the first quarter of the game where we've had some good growth within our original business and the sports merchandise business we're just starting in trading cards, just starting in nfts, online sports betting. i think we want to get a little bit more history in some of these new businesses before we actually go public it's something we're definitely going to do and more kind of a

mid-term than a long-term thing for us and we're excited to do it but there's no rush for us at the same time, either. >> michael, you're so deeply embedded in everything happening in sports. we've talked about a couple of buzzy stories in the last few weeks here, one being the sales. the denver wrongoes was potentially going to happen with that and the other being the nfl ticket first of all, i wonder if you have any insight into what you think is going to happen and what does it mean in your business when there's additional money floating around there, for all these rights, and amazon and apple and people with really deep pockets starting to bid on this stuff what does it mean to the overall business >> yeah, so first i think certainly the denver broncos is storied franchise, one of the best franchises in the nfl there's a lot of momentum. i think people are going to be stunned by kind of the price it gets i know so many people have talked about their interests in the franchise. and look, the nfl i'd say if you want to bet on draft kings, i'd

bet on what the nfl does from a media perspective. our job is to continue to create great products for sports fans globally, continue to innovate, always figure out how we can do something better i think there is as the values of the franchises go up, the lou of the businesses continue to increase and they're becoming better businesses. if you look to the sports franchise ten years ago versus sports franchise today they really look nothing like they did ten years ago. they're a much better business as you talk about the denver broncos these are teams ten years ago maybe made 25, $50 million. but they're much better businesses and next because of all the momentum from media, from some of the businesses we're building and we think it's still very early days one of the things that's interesting is that when you think about the sports landscape, there's so much entrepreneurism still to happen. think what we're doing in the trading card industry and the

nft industry, and online sports betting just started three years ago, so there's going to start to be best growth business and also new businesses. what we're so excited is our new digital sports platform. >> can we go back to draft kings for a second or online betting generally, how concerned are you there's too much capital effectively chasing either too few customers -- you look at draft kings and their guidance, by the way, just as a note here, they gave guidance they're going to lose $875 million, the midpoint that's a million dollars worse than the consensus estimate on a bloomberg terminal you have so many of these guys chase after the same customers with so many promotions, and so how that all shakes out and what it means longer-term >> jason robins is a great entrepreneur, a good buddy of

mine when i think about the online sports betting space in the u.s., i think it's very different than it is internationally today. you look outside the u.s., most of these companies traded eight to times times ebeda ultimately i'm a huge believer in the long-term size of the online sports betting market in the u.s. at the same time the amount of money invested isn't something that makes a lot of sense to me. we look at our business the reason we chose to get into online sports betting is we have two giant structural advantages. we have a brand that's one of most digitally oriented platform and close to a million customers that already buy fanatic, and that gives us a huge structural advantage. i think what investors are looking for are companies to improve and make a much better business in the u.s. at the same time do i think people are saying, hey, there's only so much money you can invest before you can make your

business work, your business work, and think we went through that phase where my old company said enough is enough, show us the money. show us you can make money not just invest money. and i think it's a reasonable. >> adam silver wasn't happy with how publicly the hardin-simmons trade was. i don't know, was it any different than what you would say is typical that's question number one number two, hardin is probably excited. could ben simmons be great with another team, you think a great defense? has he beenworking on the foul shots? >> look, i think everyone got what they wanted in this trade i'm excited for him and he's a great player and wuish him all the best as far as james goes he's a great addition to our team i think it's very exciting you know, sometimes there can

just be noise and it's purely just noise i can tell you we're excited and nets are excited and each of of us have a responsibility to go out. we have one thing we're thing about which is how you win a championship the only goal you have is to win championships for your city, and that's what josh harris, david blitzer, doc want to do for the sixers we've got to win the championships. >> i don't know if last night was an indication but it's going to be great. michael reuben, thanks, appreciate it for the interview. >> thanks for having me as always okay, coming up former microsoft ceo steve ballmer is going to join us to talk about suing flrgination and so much more stay tuned you're watching "squawk box" on cnbc plan across your full financial picture. a plan with tax-smart investing strategies designed to help you keep more of what you earn. this is the planning effect. ♪ ♪

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tensions between russia and ukraine keeping financial markets on edge. today ukrainian government forces and pro-russian rebels reported an uptick in shelling in eastern ukraine in the meantime u.s. secretary of state antony blinken told the u.n. security council a russian invasion of ukraine could begin with a manufactured pretext. but blinken is now planning to

meet russia's foreign minister next week. president biden will be speaking with the leaders of britain, canada, france, germany and other countries today. joining us now to talk about this conflict and how it's affecting the entire globe is michael hanlen we have been turning to him in recent weeks to kind of see our way through this and, michael, with all these latest developments what's your latest thought is there room for diplomacy here still? >> hi, becky i think there is, but it's going to have to be a fairly creative and different kind of proposal than we've had so far. i think if we stay completely adamant that ukraine can and will someday be in nato, it's unlikely to see a deal now, i don't know what president putin would do at that point i really don't think he wants a full-fledged war over ukraine and all the economic punishment we'd deliver after and the question therefore becomes is there any kind of viable trade space that's good enough for putin that he can say he's achieved some of his goal,

at least indefinitely postponing ukrainian membership in nato, which i think is the central issue, or if not that then at least changing the conversation and making enough current nato members nervous about what would happen if we ever invited ukraine formally to join, but they won't do it they would block it even if a future u.s. president tried to make it happen so i don't know how you do the deal i think you have to start the process. i think you have to start saying privately to russia we want a new arrangement on ukraine and if a new arrangement can work in the next few years maybe there'll never have to be a ukrainian invitation for joining nato it's not going to make ukrainians happy, but the security structure we can help build, the ross we can work onto reduce the stability then arguably ukraine will be better off not worse off. you can't just give him what he wants explicitly, but i think you can start a process that envisions a different kind of outcome for ukraine. >> i understand that thought

process, and i agree with you. i understand everything you're saying my problem with it is that it tends to reward bad behavior if you are enough of a sabeal rattler and if you come in and behave very badly, then you are going to force us to go ahead and give you some sort of deal that gives you something rather than nothing and with china watching so closely doesn't that raise the stake on what we do? isn't it dangerous to kind of go down that road >> i share your concern, becky which is why i would have liked to see this kind of negotiation happen before a crisis i've been proposing this sort of idea and people like bill burns said he didn't think ukraine belonged to nato. people around russia feel the same sort of resignation, but unfortunately we didn't take advantage of the opportunity in calmer times to try to negotiate a new understanding on ukraine

except for this process which never really had america involved at the necessary level. in terms of what russia would actually get out of this, it's not as if they're going to get some big christmas present what they're going to get is an understanding they're going to have to help respect ukraine's sovereignty and territory and pull their own forces out of the east if they want this kind of new arrangement to take hold so i don't see it as a big concession as i wrote in today's "the washington post," because it's not like ukraine is going to join nato anytime soon, anyhow if we can find a way where russia takes responsibility for helping protect ukraine and acknowledging ukraine's right to join other organizations like the eu someday, then i think it becomes still unsavory at some level. i grant you that point but compared to war, and i don't see it being something that encourages this behavior by others because, again, putin's net benefit is only to get a process that hopefully, you know, replaces the idea of nato membership it's not any kind of a reward in

financial terms, territorial terms, so i think we can live with that in the interest of avoiding war in europe >> and the end result being we don't promise ukraine will never be admitted to nato. we say that we don't see a reason for its admission to nato as long as these other conditions are being met, and it is a respected and sovereign nation >> right and if there were 30 countries saying that and all of them would need to agree on a future invitation to have ukraine join nato, then russia can start to feel reassured of a very low likelihood that this would actually happen especially if russia does its part, because it's not just consegcessions to moskow i don't think it's just crimea but certainly the eastern parts of ukraine, certainly the whole country needs to be allowed to have its own sovereign course going forward, and russia is going to have to do its part to preserve or protect that idea or

membership may be back on the table. that's why i think it's a conversation you can have. >> michael, thank you. really good thoughts, really good insight, and we will continue to see over this weekend what happens we'll talk to you soon, thank you. >> thanks, becky >> okay, when we come back in just a moment an interview you don't want to miss with the former microsoft ceo, lots to talk with him about especially his take on surging inflation and microsoft deal but first we head to a break with a few of this morning's headlines. left his post now as chairman of the space company virgin galactic focused on commitments to other public companies who came on that board back in 2019. shares of virgin galactic about $9.08 this morning we want to show you the cnbc spack index down about 13% over the past year. facebook parent meta platform

now only good for 11th place on the worldwide list ayst tuned you're watching "squawk box" on cnbc

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how fast should the fed raise interest rates that debate is going to play out in manhattan just a few blocks from here. cnbc economics reporter steve liesman joins us now for what at least the day -- you're over

there, huh the center of the monetary policy university. don't let that get out or a mob might show up if they realize that, steve. >> yeah, and which side would they be on for a market that's been fluctuating between trading on d it's going to get a pretty healthy dose this is the first in person u.s. monetary conference since the pandemic began at issue 25 or 50 basis points out of the gate for the first rate hike in march just how aggressive the fed will be in battling inflation here's the fed weekly out today. commenting on the university of chicago main paper titled on the benefits of running the economy hot. and i will be reporting on that later today. new york fed president john williams, top official we haven't heard from him all that recently and the fed governor she'll sit on a panel

talking about another critical issue of central bank digital currency yesterday the st. louis fed president jim bullard continued his hawkish comments and raised them up saying we're at more risk than we've been at a generation that this inflation could get out of control but now the cleveland fed president last night was agreeing rates need to rise more aggressively than they have in past, but she used the fed's new code word for suggesting she wanted to hold back on the 50 basis points at first. she had, quote, if i assess that inflation is not going to moderate as expected then i'd support moving the combination at a faster pace over the second half of the year >> so the scorecard this week a slightict victory for those advocating the more moderate approach and of course geopolitical concerns over ukraine. the probability decline a bit though many fed observers still see it, joe, as a live possibility. >> and the possibility to

handicap 50 basis points some point. what do you think? >> i think at some point is possible there's still an argument there's a bunch of different things in the economy that are going to kind of work themselves out to help bring down inflation. whether it brings down inflation towards the fed target close enough or fast enough is a different story, but what i do hear the argument being is guys like bullard they want to do 50 out of the gate, a bit of a shock in our campaign, but then there's those that say let's do 25s, do them in a series, hold back 50 so we have someplace to go >> is there like a book about jay powell coming out that's very complementary, do you know the is that-on your radar screen >> i have not heard about that, joe. have you heard about it? >> yeah, i have. >> what kind of book would you write about it, joe? >> i don't know if that book has been written yet i think we're going to need some time i'm hopeful. >> could you write the book

because you don't know the end of the story yet, right? >> i don't know the end. i might get steven king to ghost write it for me like the shining. anyway, thanks, steve. >> thanks, joe >> all right, andrew >> okay, coming up next we are going to be live with former microsoft ceo and l.a. clippers chairman steve ballmer and talk about tech, the economy, sports, all on the agenda. and speaking of sports draft kings projecting a larger than expected adjusted loss for the full year, rising costs pressuring the sports betting giant. we've got that stock off about n', 16% this week. dot miss later this morning to talk about it. squawk coming up right after this to support underserved communities... ...helping us all move forward financially. pnc bank: see how we can make a difference for you.

welcome back to squawk we are getting a brand new viewpoint this morning on a vast drove of government data usa facts, the nonpartisan data gathering site is out with its third annual state of the union in numbers report. among the data points it is highlighting the economy adding 6.7 million jobs last year that's a rebound from

9.3 million lost in 2020 and government public health spending dropping by a fifth from 2020. but nearly one out of every 715 people in the u.s. died from covid. joining us right now first here on "squawk box," usa facts founder and former microsoft ceo steve ballmer. also the chairman of the los angeles clippers good morning to you, sir nice to see you. >> good morning. how you doing? >> i'm great let's talk about these numbers and ffr before you talk about these numbers let's talk about the importance of these numbers. i don't know if many of our viewers have noticed but you go on places like facebook and others and even topics now around inflation and things that seem to be very fact-specific are getting labeled as misinformation and the like in the same way they were labeling things in the world of politics and in the world of covid. what do you make of that

>> we have people in our government, state, frad and local who work on assembling and collecting data. they're statistical experts. sometimes the data is a little slow coming out. sometimes it's a little bit hard for government to appropriately integrate because we have such a fractured government but i believe strongly in the professionalism of those folks and if you want to go to a deginative source of data, we're better deterred. so it really drives me a little nuts what you're saying. >> in terms of the numbers this year, in terms of the annual report, what was the thing that stuck out to you, that surprised you sph. >> well, i would say a couple of things surprised me. the public health spending went up, and it went down it surprised me to see that while medicaid spending was up versus -- and i'm going to do everything versus 2019, andrew

it's the only sane year to take a look at. unless i tell you specifically like public health medicaid spending was up in 2019, but thought gnat dramatically in the grand scheme of things. that surprised me. the employment numbers, everyone's really trying to understand where are we? how many people are unemployed what is it about all these job openings where have we seen job losses? the biggest job losses are in education and local government you stop and think about that, particularly since local and state tax revenues were down 1.1% the year before 2019 to 2020 they're up 19% this year, plus, you know, all of the transfers they get from the federal government it is super surprising to me >> when you think about inflation that you're actually seeing in your role as the owner

of the clippers and in your role as an investor, what are you seeing do you think there's a way to get a handle on it >> yeah, i mean obviously we're seeing inflation we are building a stadium for the clippers as we speak, if you will we're early in the project, and yet we see as everybody else does an increase in commodity prices do i expect that to abate? well, we don't forecast and prognosticate at usa facts but in my role as an executive i think we have to plan for further inflation. now, the good news, the good news which is surprising, real wages have actually gone up from 2019 to today. they've only gone up about 1.6%. but you add in inflation and total wages are up 10%, which

thank goodness wages are up over inflation. >> when you look at demand, by the way demand for tickets to sit court side, people are paying up in crazy ways. what do you think that's a function of? >> yeah, that's true for court side seats we still have what i call a little bit of a covid hangover, at least with the clippers where people are not coming to the games the way they did two years ago. as people get more comfortable with where we are covid-wise, i would expect to see a reversal there relatively quickly we still have indoor mask mandates in los angeles county that makes things a little more difficult for our fans >> i want to pivot for a second back to your old employer, microsoft. the big deal that everyone's talking about, microsoft acti vision you've had a hand in microsoft gaming in the past what do you think of the deal? >> i think it is fantastic

i think it really besides all the financial goodies from the beginning, from the get go i mean activision has three phenomenal franchises, and i think that is great for microsoft as a gaming company. it'll continue to make microsoft more competitive with some of the bigger companies that are out there like sony, still a little bit bigger. but that investment we made in xbox 20 years ago and what that meant for gaming at microsoft has been really good for the bottom line, and this activision deal i think is fantastic. >> how much do you think is driven by gaming versus the metaverse? are you living in the metaverse yet? >> i'm not totally in the metaverse, i have to say although it was pretty cool. we went to our construction site for the stadium. i put on goggles in the middle of the construction site, and i

literally could see where various suites were, the floor was. it's pretty cool when you can get there. now, will the metaverse take over my life i bet not. will it take over my kid's lives, even there i bet you not and yet there'll be a lot of good applications i think that come out of metaverse-style thinking >> on the microsoft activision deal you were at microsoft when the guy were giving you a lot of grief with these things. big tech in general has been in the crosshairs with washington do you think this deal will have trouble getting approved on an anti-trust basis, and the company's plan for addressing that, what do you think of that? by the way, you're still the largest shareholder with microsoft, aren't you? >> yes, i am so i care a lot about these things even though i'm not at microsoft, and i'm not an

anti-trust expert although i know just a little bit about it. and i would say in this case without being an expert there are two key things number one, microsoft is far from the largest player in this business and won't be post-acquisition that would seem to me a basis for clearance. and i think microsoft has been appropriately proactive about talking about the activision games remaining cross platform, making surethere's no favoritism in their actions there. so i'll be more than cautiously optimistic they should get this thing approved >> hey, steve, i have a sports social justice question, and i ask it to you because obviously you took over the clippers after the fall out and comments don sterling had made. what do you make of the allegations by brian flores in the context of the nfl, and how do you think the nfl should

react? >> that's a little bit tough for me to comment on since i'm not an nfl owner i can talk about that from an nba perspective. and if you take a look at our head coaches, the expansion, a number of african american coaches, which was not small, but i would say 6 out of the last 7 or something of that nature of coaches hired have been african american. how the nfl got itself in this problem hard to say, hard for me to say i'd be quite sure there's a number of great african american coaches out there. and yet there's no one nfl to speak for that it's the actions of a set of owners in our league that's how it worked out super well. we have a phenomenal coach, a phenomenal coach, and african american coach actually, we would have won a

lot less games this year, so i know there's a lot of talent out there. >> hey, steve, can we go back to the beginning of this conversation just taking a look at data because i've always been a big fan of government data, too, but i've been really surprised and disappointed by some of the quality of this coming through with covid. the cdc was collecting the numbers on covid, when and how, how many deaths with these things it was really unclear the quality of that data because it was coming from different states, different counties, different time frames for collecting, and then you got into the point with omicron where people were doing home testing, too i just feel like we don't have any sort of a handle at least accurately on what was happening, and i'm surprised how antiquated the cdc system is for collecting this stuff. >> yeah, i'll tell you a little bit. early on in covid in early 2020 at usa facts we put together a collection system for covid data at the county level.

we had software that would go through data to county level heck, there was one county where our people were literally calling the county sheriff every day because that was the only person who had the covid data. cdc was relying on us for some of their data. now, was that data perfect was everything being captured, i don't know i agree with you today that there's so many more positive tests that we don't know about, but you can ask how would the cdc collect that data? good question. you can also say that maybe nowadays the more important data is the hospitalization data and the death data given the vaccines that are out there, which i think are important and cdc publishes it at the end of the day, though, you have to remember, becky, that this is a -- we are a federation of governments, and the cdc, the federal government

doesn't have control over all data collection. i happen to think having more influence would be a good thing not only health data but a lot of data sets the government collects they're so inconsistent sometimes across our jurisdiction >> what do you think the cost would be to solve the data problem? meaning as someone who's a data scientist and cares about this stuff, if we were to redo all the systems, look, we've had debates about redoing the irs' computer system. but if you could do it to the max, what would it actually cost and how much do you actually think it would save by having the right numbers? would the math ever -- would the math ever make up for itself >> well, i think the math would make up for itself very nicely i can't give you an exact estimate, but my guess would be tens of millions, maybe 100 million at the federal level the big problem, andrew, the biggest problem is how does the

federal government get timely data that's reported with some consistency from california, from florida, from washington state? that is the problem, and there aren't as many levers for the federal government to use for those purposes jobs data, easy because there's a connection through the irs to everybody who has a job. criminal justice data, harder to get. state finances, they're all out there. the collection process is well over a year. now, would we get an ori, heck in business you just never could fly as blind you just could not fly as blind and get good outcomes. so i can't imagine that there's not plenty of upside in terms of outcomes and finances in terms of better data collection. >> hey, steve, finally you mention the state of washington and i want to ask you about the new capital games tax, 7% for

higher earners that game this year and last year and sold half of his stock actually before november, jeff bezos sold about $10 billion what do you make of what is happening in the state of washington and i should probably ask you did you sell any ahead of that >> other than what i do every year for our philanthropic activities, no, turns out i not only give some away i buy it back, andrew, because i don't want to get out of microsoft, not a lick probably important to emphasize it's not a tax on wage earners it's only a tax on capital gains. i know -- i suspect there'll be a constitutional challenge on it in the state of washington the way our constitution is written. we'll see. i guess i understand for folks who think they need a lot of

additional money for their spending power to take sales now. i'm expecting to ride the microsoft train myself and be a good steward of that money whether it's for government, for philanthropy, and of course to some degree for my kids. >> steve ballmer, always great to talk to you we really appreciate it. and folks should check out usa facts this morning it's a really fascinating report thanks >> thanks, andrew. you guys be well >> thank you coming up, jim cramer's first take on the markets this friday morning futures right now putin comments from germany, i don't know how it all plays out we'll see. putin says, hey -- stay tuned you're watching "squawk box" on cnbc

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let's get down to the new york stock exchange and check in with jim cramer. jim, a lot of things happening this morning these headlines continue to come in on russia, ukraine. you have a lot of fed speak out today, expiration of some contracts. which of these is going to be the most important thing >> well, i still think ukraine is incredibly important. your guest earlier laying it out. i think that was terrific. yes, this could be really bad. but at the same time i can tell you my friend john ellis has

this great note that comes out every morning. look, there's going to be sanctions. it's not going to be good for russia the sanctions are going to hurt initially. i think there's more risk than we think for russia and if that's the case then maybe this thing is going to be stopped totally tough to buy ahead of this and you have to have a longer term view. you have to accept the fact that you might lose some money in -- it's almost 50/50 if you lose money if you buy that's not a great ratio. >> no. comments out from the german foreign minister have been tough in the last few minutes or so saying, look, all options are on the table. germany is ready to pay a high economic price for this unprecedented sanctions on russia everything is on the table, includes nord stream 2 regarding those potential sanctions. i think maybe that's more

important than headlines coming out of the united states there have been questions about the resolve of the europeans, particularly the germans who would suffer the most or that. >> i've been waiting for that, becky. we keep yapping. but what matters, are the germans are on board with us if they're willing to pay the economic price, the russians have to rethink their game plan there was a sense that the germans couldn't take it angela merkel, good relationship with russia, so she retires. new guy comes in and we have no idea what they're doing. maybe there's hope that if he really joins what biden is doing, that the russians recognize there's risk right now it doesn't seem like the russians think there's any risk to what they're doing and that's crazy plus ukraine's broke it's not like they're getting a real prize

it's 50/50 to buy today. who is the last person from the fed who speaks let's say they decide to speak at 3:00 and they say, you know what, i really see these numbers and i don't believe how behind the curve we are you'll feel like a total dope if you bought. >> it's the same thing he's been saying for a week now. every time he says it, it does spook the market. >> you can't get masking tape and tape it. you can't just tape his mouth, you know -- >> as much as you may like to -- >> yeah, he's a really good guy. you can't say, listen, i'm sticking a handkerchief in your mouth and i'm taping it. that does not happen he has freedom of speech. >> and he's speaking the truth as he sees it on these issues. >> he's a great guy. he's very -- if he were here right now, we would drop a percent. i admire his conviction. he's got a good outlook, but every time he says it, becky, we

end up getting clubbed >> well, we will see what happens on this friday jim, we'll be watching you starting in just a few minutes have a great weekend "squawk box" will be right back. [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.

just over a half an hour

until the opening bell on wall street let's bring in kari firestone. thanks your message to investors, don't panic. we've seen geopolitical events before typically it's been a buying opportunity. we don't know what's going to happen this weekend or after the olympics but you would use it to selectively put money to work? >> yeah. hi, joe. i'm honored today to follow two of my college classmates hello to those guys too. yes, i think if you look at what's happened with the market, we have been in a bear market for some of the market there are 125 stocks, over 5 billion in market cap that are down more than 40% from their 12-month high. many of them are the high fliers, draftkings, peloton,

robinhood. but there are some good names in there, paypal, netflix, these are companies that have big businesses and they're back to where they were before covid the stock prices and they have achieved a great deal of accelerated adoption of their platform that's not going away so we would be buying some of those and also names like american express, o'reilly auto parts. we believe that these stocks selling for market or below market multiples offer great opportunities. as jim said, you can't pick the bottom and you might see that the stocks come in a bit before they go up but starting to nibble, we think is the right decision right now. considering that we see a lot of demand from coordination, industrial demand, special demand a lot of liquidity in the system right now we see no sign of a recession. this is an opportunity like in 2018 when the market went down 20%, 20% in the fourth quarter pre-covid, we forget about all

that but this creates opportunities if you're selective. >> i haven't checked your math, but you point out a stock with a 40 pe that falls 40%, that's growing earnings at 20% a year, now has a 20 pe, you look at a coke or a pepsi sells at 26 times earnings and they're not growing 20% a year you might be able to find value there. we have 30 seconds, kari >> yeah. facebook is selling at a 14 pe facebook has problems, yes, but, you know, it's selling for half the pe of, you know, sort of stable consumer stocks that are going to be growing earnings, you know, 7%, 9% facebook will go 20% even if it's at a reduced level because of some of their challenges. so, yeah, we think there are opportunities in the market and you should take advantage of them panicking is not the right move. selling everything, i would caution people not to be as

scared as, you know, their heart rate is telling them >> well, i don't know what -- i might panic about ukraine, about the fed, i got a lot to panic about. kari, thanks we got to go. >> thank you, joe. let's -- can i just say, let's all enjoy friday and enjoy the weekend because i guarantee you, monday is going to be here so fast. >> we're off work on monday. it's closed. >> let's do a three day. let's make it three. join us on tuesday squawk on the street is next ♪ good morning welcome to "squawk on the street." coming off the worst day of the year for the dow futures, a little shaky ahead of the long holiday weekend. a lot of uncertainty regarding ukraine and more names to add to the list of tech and media tech debacles inflation risks for investors, it could