is. >> we'll see we'll see, my friend mike, thank you. final check on the markets it looks like in the green across the board with the dow opening at 234 points higher joseph, what a ball it has been. [ laughter ] >> it's been real and fun. so it's been real fun. >> it's been real fun. >> see you tomorrow, my friend. >> becky is back tomorrow. >> yep literally. >> join us tomorrow. "squawk on the street" begins now. good wednesday morning i'm carl quintanilla with david faber and jim cramer the s&p with the lowest close since october. now 10% off the highs. ukraine's focus as diplomacy takes a backseat to sanctions and the vix near 28. road map begins with stocks bouncing back. s&p closed in correction territory and the escalading

tensions mean oil touching the highest level since 2014 we'll hear from goldman sachs ceo david solomon. talking everything market volatility and russia sanctions. and elon musk telling cnbc he would do the right thing if invited to speak at the white house. start with the market bounce back after the white house announced the new sanctions on russia today it's b of a who suggests could it turn into a regional story over the immediate term? >> that's what i've been looking for. i was with david solomon this morning, the ceo of goldman sachs. i don't get the sense that the tone of sanctions is anything to deter putin. it seems more of a sense of, look, this could be more to come right now it sounds like 1997.

remember 1997 when they shut down two banks the market would crash and the russians would be at their knees. we're not at that market anymore. >> no. 1997, right, russia did crash. >> right that's the difference. now you have a well-off russia geared by a tremendous oil well. >> yes. >> and it's better and financially you can even target individuals and banks. it won't matter that much. >> that is what experts do say i'm not an expert on this. >> that's my point. >> they might bite as hard it doesn't mean they won't have an impact. >> no. i think when you start you go back to what carl said the idea it could be a regional conflict that's been missing the whole time i mean, the idea, you know, look, we had absolutely tremendous interview by brian solomon with governor perry.

secretary perry. perry. >>p-e-r-r-y. >> yep. >> and he was talking about russia hees economy is smaller than texas obviously, this is an important issue. k35i -- compared to china and way to w taiwan, that's not national. that's international. >> export controls would deny them revenue from crude. jpm their base case is more escalation but a deal with iran. brent averages $1.10 in q2. >> oil stocks declined some people think it's off the 120 price target i have to tell you when you look at the oil companies, they are new oil companies. there was a terrific note by piper upgrading marathon they tell you how good it is i would urge people to note there's a meeting coming up he

receive r-- revchevron in march awe brees used to say here is the marketing company. pump as much as you can. now it's like, david, the marketing company is, you know, hold back a little bit. >> yeah. >> give the shareholders something. >> yeah. it's funny in conversations with market participants, it seems as though they're more concerned by the fed's plans for quantitative tightening than they are -- no no i'm talking about asset manager. >> yeah. >> more concerned for the impact of qt on the market and, obviously, what we expect will be a rise in interest rates starting in march. then they from the overall impact from potential hostilities. >> i agree. >> energy markets will suffer. when you talk about the broader market right now, there's a lot of concern about what it's going to mean when they start taking $100 billion out, whatever it is a month. or whatever number

when you do that and start selling bonds, what you get is what has been happening since november the market, if you look at the period of 2015-2016 when yellen said, okay, here it goes she was fed chief. the market cut mt. big stocks that were of the high multiple range but to earnings cut them 30%. we have a lot selling sales. >> yeah. a lot of guys are growth investors going oh, my i didn't know it could happen. >> right the spaks. >> it has happened. >> i want to come back to the spaks. what about adobe what about cisco >> salesforce. how about salesforce those are not spaks.

>> right the multiples have been cut by a third. >> yeah. down 33%. >> advanced micro was down 30% by the way past intel. >> right. >> wait, what? >> amd is bigger than intel. >> yeah. it's like better than u.s. steel. >> yeah. that's a big deal. >> yeah. what matters is merrill lynch. >> i told you in 2015 -- yellen said in late summer and early fall, we'll raise rates. you saw salesforce plummet not unlike what is happening now. it's a little more severe. but i just think when you look at the ipos. remember the ipo market? ( i would point out this severe

multiple contraption has front run the rate hikes now there's going to be people who live under rocks who didn't know there was going to be rate hikes. they'll sell again except for this time, because of the tremendous decline people will buy. >> yeah. it sounds like you've talked about jenson wang's march speech once we get a fed meeting, you think there might be more clarity. >> yeah. clarity is good. that's as simple as buy when it's going this way and sell when it's going that way. >> yeah. i would tell you that, yes, stocks can take more of a beating. but when you look at most of these -- let's take snow flake. >> very nice tie. >> thank you snow flake okay still a high multiple stock. but when you ask people what is the most exciting tech stock in the market, it's snow flake. it hasn't come down that much at all. that one could get hit but when you look at it.

teledock needs a stock doctor today. who loves it >> cathie wood. >> who >> cathie wood. >> did you say it? >> yeah. >> she did yesterday buy coin, tesla, zoom, shop, roblox, and more. >> and draft kings caesars. did you see what they're doing >> they're cutting back. >> yeah. caesars. this is caesars. >> yeah. it's the end. >> yeah. the giveaways. everyone has $500 at caesars that game is over. i think you buy draft kings. that's a cathie wood stock i have something positive say. i'm not negative i'm not a negativist but palantir. >> she did sell more palantir. >> yeah. >> all right all of which leaves me wondering what i do do do i start nibbling at some of this it looks cheaper now because of the significant fall >> yes you've been with the prospect of racing rates 25 basis points. a shrinking balance sheet at the

fed. i want to nibble here because what because of normalized for these companies. >> yeah. and by the way the comparisons on some of the stuff may not be that great pull forward demand. >> yeah. david solomon did say to me, look, the capital markets aren't nearly as good as they were. they won't have an upquarter they'll be done. why is goldman selling at five times earnings, i ask you the answer because the fed hey, i'll give you one. >> black stone inside it >> no. you are just you may be sly but so am i look at lows okay so lows shows you if you deliver and marvin ellis delivered, you can do okay. i mean, let's go over it so how do they do? u.s. comps for lows. after the gross margins declining home depot but up 115 basis points.

pro is really gaining against home depot really gaining and, david, we're talking about two year numbers that are just incredibly exciting. martin told me this is just really, you know, look, the trends are so promising. raising our guidance in sales. raising guidance. >> much better than yesterday. >> yeah. pushed shares. >> yeah. >> right. >> yes. >> yeah. and marvin delivered now, of course you might say, jim, because he inherited a company not doing as well. i say nonsense he's doing well. let's forget about it. the margins matter so much in this business, especially with supply chain problems show me los is a superior company now. >> superior company? >> superior company. with comps at 5 other than 8. >> versus what they would have done in the old days yes. marvin ellis where is the puck going?

like wayne gretzky. >> that would be an amd intel like shift. >> i'm going there i think ellisson has turned the shift. he's up 54%. i mean, i remember the pros go to home depot. home depot is not in trouble they are a great american company that raises dividend i'm just saying it's a two-horse race you go right now with lous. i used to say that for years and then lows kind of, i don't know, they went low. now los iswes is high. did you see william sonoma yes >> yes and ralph lauren. >> yeah. and macy's. >> yeah.

>> it's an exciting day. we have winners and losers you can go by the rth, whatever you want that's one of the efts why do you have to accept mediocrity the etf creators said, listen, we want mediocrity it's like remember that in the supreme court? there's room mediocrity. eft people said there's room. >> yeah. >> yeah. exactly. exactly. you know, people say you couldn't hear it nonsense. >> i had a similar disease. >> you did >> you know this. >> yeah. of course. beethoven couldn't hear. >> okay. >> goldman sachs with david solomon discussing the sanctions on russia. we'll hear it on squawk in the street take a look at the futures here as we try to make it a wednesday bounce we're back in a moment ♪♪

energy is everywhere... even in a little seedling. which, when turned into fuel, can help power a plane. at chevron's el segundo refinery, we're looking to turn plant-based oil into renewable gasoline, jet and diesel fuels. our planet offers countless sources of energy. but it's only human to find the ones that could power a better future.

how not to be a hero: because that's the last thing they need you to be. you don't have to save the day. you just have to navigate the world so that a foster child isn't doing it solo. you just have to stand up for a kid who isn't fluent in bureaucracy, or maybe not in their own emotions. so show up, however you can, for the foster kids who need it most— at helpfosterchildren.com

this morning i had a chance to sit down with david solomon i began why asking him why the bank's strong performance on every single line that that is among the lowest when it comes to r-key ratios. the price to earnings multiple ratio in the s&p here is what he told me. >> i think people are concerned

that the capital markets environment will be less robust going forward in 2022 and 2023 as we state the last week, when i was in miami at the investor update are extremely confident we can deliver over the next three years returns for the shareholders and we're executing on our strategy our strategy is working, jim we're focussed on clients. we're focussed on operating with real excellence and the strategy is working. >> is it possible last year was as good as it gets in the strategy working you cannot replicate what you did in 2021? >> well, i don't think we'll replicate what we did in 2021 and 2022 there are a number of people that said the firm could never erin over 20% r.o.e. and we did. i'm not saying we'll do it next year i don't believe we will. it's a long road what we're focussed on for our shareholders is the consistency of returns over time and durability of returns over time, and come pounding our book value. i think book value growth

underpins the value of a financial institution like ours. we've shown over a long period of time we can grow our book value on a comparative basis it's attractive. >> the value -- >> yeah. underperformed three of the major banks. if your thesis is true. >> we're diversifying our mix. it's the form of predictable fees, adding more rwealth management, digital consumer business that takes lendingbook, which adds a predictability level to the overall mix of earnings capital markets revenues are hard to predict in every given market ayear so. >> let's talk about the capital margins many people are concerned about. ipo markets there's one small deal this week spaks are really, really lucrative for goldman sachs seem to be dying off. russia, ukraine, and fed

tightening isn't it a mixture too hard for the first quarter safe that the consistency will be it >> well, there's no question that equity activity has come down meaningfully. if you look at the volumes off the top of my head -- equity volumes are down approximately 60%. m & a volumes are pretty active. the backlog is strong. debt volumes are relatively active so i think you have to -- when you look at the activity levels are better than 2019. >> okay. not as good as 2021. and so when you look at our banking business, our banking business does not have to look like it looked last year to be a good return contributing good earnings contributing business and clients are active because of what you said there's a lot going on in the world. people are transitioning to a world where inflation is above trend. with that activity comes opportunities for us. >> okay. is it an opportunity, for instance, that the president announced sanctions on two

russian banks in the 1997 russian financial crisis goldman involved knew everything. it seems like nothing is happening and it's an opportunity for your clients. >> the market the last couple of days appears to be relatively resilient in the context of the news i would highlight it's early sanctions, i think, can be an effective tool to contributing to influence or behavior change over time. and so we're watching this very closely. and our clients are watching it very closely and, you know, we'll have to see it unfolds. >> when i worked at goldman sachs, russia was wealthy. the president targeting them you are client focussed. what are you saying to them? >> well, the goldman sachs with, to my knowledge, but we'll watch with everybody else. i think it's early, jim. i think it's the first step in a process. i think the market expected

something. >> right. >> i think they got something on the lighter side of what the market expected. we'll see how it unfolds it's early and we're watching it closely. here we go this is when the new model has to shine you heard the capital markets are weaker the capital market business is their primary. all the other sticky streams like consumer wealth business be able to shine in a time when russia and fed tightening? i didn't feel that will happen but daviddoes. >> he did say last week we're entering a period of above-trend inflation. it's becoming a meaningful head wind to growth. >> right. >> you have guys like jpmorgan being aggressive on spend. how much of the conversation is about expenses >> well, one of the things david talked about and part is going to be on tonight on "mad money." there's a bit of just endless nitpicking that's my word aboutefficiency

>> there's a frustration in terms of the evaluation. there's no doubt about that. they won't see returns like they saw last year. he made that point. >> yeah. they'll be able to expense that plus 20% those are not something we thought we would see. >> right. >> it'll l it'll be interesting to see if they can get that higher multiple they claim they deserve as a result of the occurring fees they'll mention time and again, as they should and, you know, you don't hear as much about markets and net growth. >> i pressed him. >> he mentioned it briefly. >> i said when is it going to matter to the evaluation what year? >> it's awhile

he didn't give you an answer. >> no. [ laughter ] still to come, look at cramer's mad dash and count down to the opening bell. a lot of names to get to including space and twitter and palo alto and tjx. ckn montba ia me rbo. oh man. ♪♪ come on. ♪♪ ♪♪ ♪♪ ♪♪ ♪♪ ♪♪ (vo) for me, one of the best things about life is that we keep moving forward. ♪♪ we discover exciting new technologies. redefine who we are and how we want to lead our lives.

basically, choose what we want our future to look like. so what's yours going to be? alright, so...cordless headphones, you can watch movies through your phone? and y'all got electric cars? yeah. the future is crunk! (laughs) anything else you wanna know? is the hype too much? am i ready? i can't tell you everything. but if you want to make history, you gotta call your own shots. we going to the league!

opening bell five minutes away or so catch us any time anywhere listen to and follow the "squawk on the street" opening bell podcast. we're back in a moment

♪ “all i do is win” by dj khaled ♪ ♪ all i do is win, win, win no matter what! ♪ woman singing/cat meowing: got money on my mind, i can never get enough. ♪ and every time i step up in the building, ♪ ♪ everybody's hands go up! ♪ karaoke singer: and they stay there. and they say yeah. and they stay there, up, down, up, down, up, down. never lose confidence in how you run your business. intuit is bringing quickbooks and mailchimp together to help you set up and grow. candlemaker: that's not happening. [kazoo playing] new business? no problem. dj khaled: man, i love this scent. yeah!

we're seeing nation state threats. we're seeing threats toward companies. we're seeing large supply chain attacks. that's the environment we're living in. the more and more we rely on digital transformations and

technology and e commerce, everything we do, it's now fundamentally dependent on technology in that environment, you have to keep your stuff safe that requires cybersecurity. you're seeing effects of that. >> another guest on "mad money" and another guest for jim. very strong today palo alto. >> the strongest stock on the market people thought they were going to be short because of supply chain. that was just -- that was not an issue. it's interesting how wrong the analysts can be. we'll say russia attacks have picked up dramatically what palo alto is doing making it so if the bad guys are looking to go after palo alto is tougher to go after. if you hire palo alto. they'll go after another company. figure they can get in. >> right. >> so this is a one soup-to-nuts

situation. it was done by many acquisitions finished in terms of integration and stocks should never go down 100 points >> it's good. >> it's good. >> yeah. you say it's good. it's good. >> okay. >> well it's up 33% over the last year. it's not bad >>well, because the cash took a company that is a fire wall company and made it into a company that is whether you're on prem or in the cloud protected. he had a vision. that vision is paying off. >> yeah. >> work at home. >> yeah. it's a great thing. >> work at home an important component now. it will continue to be. >> david solomon referenced again the situation. saying that everyone is coming they're making them cook b-- com back >> yeah. >> there's a big piece in the times how big tech. >> yeah. >> i spoke to a ceo yesterday -- [ cheers and applause >> a thousand employees

voluntary comeback 40 of a thousand people come back. >> voluntary voluntary. >> mandatory he'll lose 25 to 30% of the staff they'll leave. that's the key question >>well, this is a big issue. [ opening bell ] it's clear the pressure is on. i think it's better than where you are. >> i do, too we've been sitting here for two years almost talking about the fact we don't quite get it because we're dinosaurs. we don't understand why 20 somethings are happier in their one bedroom or studio apartment than going to the office that's the way it seems to be. in a market where talent is a premium, they can leave. >> how do you make yourself

known in an environment where all you are doing is assuming? cathie wood, of course zoom i feel like when i worked at goldman, i did everything i could to have the ceos know me but you can't distinguish yourself you can't -- >> that was the 1870s. it's different now. >> 1870s [ laughter ] >> it's only going to work as long as there aren't others with your skill set having to do the same thing. >> if i were at goldman now, i would be there at 6:00 a.m. and be there until 7:00 p.m. >> i know. >> i would crush my class and make them look like -- >> understood. take a ceos are afraid to say

everybody come back because they'll lose so many people. >> there are there are a lot of people that moved. >> yeah. it's like, hey, i'm in a better place. >> yeah. do you want to work with me? >> but versus new york city, i mean, obviously new york city has got expenses it's not necessarily -- >> or san francisco. >> yeah. san francisco i found dangerous. >> yeah. >> there's parts of downtown. >> yeah. >> it's very difficult. >> yeah. that was a guy hitting a man with a hammer. another man. a hammer in the market bureau and everyone was watching him. my wife said you stop that now i said my wife is going to get killed she didn't she got it stopped i thought it was great she lectured him i mean, it was interesting to lecture a guy with a claw hammer hitting another guy about how it's bad.

>> okay. did you hear amd is bigger than intel? >> pretty good open here, jim. >> yeah. >> every sector green. >> about time. the gloom -- when you talk about stocks now with people, it's just like every other kind of you're inching bottom. i lost everything. i'm done cathie wood. that's what people are like. they want to get off on another topic immediately. >> yeah. >> even the olympics >> you mentioned caesars earlier. >> yes penn is not that far behind. are we getting into an environment we'll start talking about how you make money in the expense? >> yeah. i read the caesars as meaning, look, i had a lot of friends who game you can get the 500, take it out, some places -- >> or get the thousand or what you can do is do one and you can have your wife or spouse do one. >> i wasn't going to reveal how

they did it. >> we didn't do that we should have. >> yeah. and took caesars to the cleaners as a matter of fact, they got one hour it's really incredible so they are going -- they're pulling back i would rather own draft kings why? because it's really come down. and they're last man standing. caesars moved a lot. obviously that's the connection. are you taking call? >> no. i'm looking at something how about the mortgage originations >> very disappointing. >> yeah. yeah it was good but not enough. >> you don't want talk about -- i threw you off? >> did you see they delayed call of duty until 2023

>> yeah. >> what would -- would the stock be down now? >> $56 instead of $80. >> that's is where it was when i thought it was going to be made. >> yeah. and it is. and they have a $95 deal acquired all cash microsoft. if it was not in place, to your point, the stock, we would be talking about it a lot today. >> yeah. and you're going to draw the conclusion that, obviously, they have lost engineers. because of the corporate culture. >> yep. >> corporate culture there when you talk to board members and you talk to other people in the companies, they question whether bobby should be there. obviously, when you make the transition, he won't be. >> no. he will leave once the deal closes that could be many months. well more than a year before it occurs it's worth noting. the stock is not going to be down because, of course, you have the deal. we talked about it and the anti-trusk risk of it and the

spread to the $$95 even with the expectations of the long time between now and close. nonetheless, it was worth mentioning guys, in m & a land, there's one thing that caught my attention which is another private equity deal it used to be a large company. you remember 20 years ago. >> yeah. >> yeah. >> it was the name it was a big deal when you get them on. >> yeah. >> that's 100% premium this is $18 billion in revenues. $800 billion market cap until today >>well, yesterday. >> yeah. they're all being snapped up all the little guys. >> yeah. most of it is debt. >> yeah. >> everything is hated. >> yeah. it's larger. it's $7 billion including debt most is debt apollo, obviously. >> yeah. no one will block the private

equity. >> '03 you can see where the stock was five years ago. >> i know. >> coming back to levels. >> yeah. i think, david, when you think about measure & a you should be thinking about not just about it you have to be thinking about january on -- jonathan cantor. >> yes. >> a partner is head of anti-trust a smart guy. not in favor of taking the backseat might have a sound bite, david, i'm doing what is called a call forward now. >> yes. >> of david solomon talking about m & a. >> really >> >> yeah i want to take a listen. >> there's no question there are a certain regulatory head winds, particularly with certain types of merger transactions, particularly on certain spaces large cap tech and so when you look at that, and you separate that out, well,

those deals are visible and they have a lot of attention. the bread and the butter of the m & a business is hundreds and hundreds of traction actions for companies between half billion and $5 million in size and that activity and the continued consolidation across industries is people are trying to make sure they have scale scale is winning at the moment they have capacity to make tech investment investment in t.echnology is helping you. so that activity and that space continues to be relatively active. >> and, david, that's the comments from mericorp that's the way i feel about it i mean, these are maybe you have to focus on these. >> i'm trying to get ahold of

elon. >> yeah. this is what he said to cnbc referring to the rather glaring omission of tesla mentions out of the white house he said biden has pointedly ignored tesla at every turn and falsely stated that, in fact, gm has lead the industry rather than tesla when tesla produced 300 evs last quarter and gm produced 26. that's what you're referring to. >> yeah. >> it's accurate. >> yeah. it is accurate. >> it is accurate. i mean, the administration is not including him because the unionized -- >> unionized president. >> yeah. >> how can you not include elon musk in the conversation >> i don't know. >> it is peculiar. elon musk is great -- i mean, he's american, you know, he's our team. >> he's south african but, yes.

>> keeps it in america he works -- >> yes. >> the plants here a lot of people get employment here it's been a big win. it's ours. i did be high minded i have no problem being high minded. >> yeah. yeah, does it's interesting moment because the president is perceived by many business people on the other side >>well, he doesn't have a lot of people in his cabinet, if any, who actually have -- >> i hear it a lot. >> people like -- >> yeah. the governor of rhode island. >> yeah. >> yeah. >> beyond that there is a lack of it. that's disturbing to some of the business community you can understand why music is like come on why do you keep talking about the other guys and not us? >> yeah. >> when you speak to executives,

the president seems uniquely uncomfortable with ceos. i think he has been -- he's not familiar with them i remember in the old days, he actually took some pride in not knowing about the stock. >> really, he was a senator for so long. he didn't have any exposure? >> no. >> that's okay you can get comfortable. you can say i'll make a project. it doesn't have to be like this. >> yo mentioned the idea is a buy or an opportunity. >> i think larry is doing a super job. >> larry >> gm i was talking about gm i think people will be surprised what they're doing ( i think antonymous will

surprise it's another example of stock people have given up on. i think it's a mistake. >> there's a big part now because we don't know what degree they'll rely on the combustion business, how they'll be run are they going to trade separately farley has been saying things starting to broaden that conversation. >> yeah. i don't think farley will separate i think you like the fact you have a good dividend you'll have major change that's you have to do. you want the f-150 internal kbugs engine to be funding the plans they have to be ev. >> yeah. and poor trucks, by the way. we forget it's the best selling vehicle. >> right. >> so you used to say f-150 enterprise value is worth more than the company itself. >> yeah. i've got a maverick. it's little. it's a minitruck

okay i absolutely love it my wife already took it. >> yeah. >> you forget the franchise fo foord has. >> it's amazing. he builds everything by himself. >> they have to get the berlin factory up they will but it's taking longer. >> yeah. it's going to be important for them supplying the european market you have to do it from the u.s. or china.

>> yeah. page one of the "ft" is ukraine. and the other story about volkswagen it's not a credit thing. >> right then you announce, you know, announce the split off. >> i don't know if ge would exist. >> yeah. i think it may be a fair point do you think it will be nothing but it. >> i don't know. no price target but look to market perform because it's down

by a third. >> yeah. it was a fantastic call. this is what they want to do he said get out of intel and now declaring victory. i lovethat that's exactly it. right. get out of intel it has been a good call. and now declare victory. >> larger point is, all right, no free cash flow for three years. especially going into maybe an industry downturn. a tough call a tough ask for investors. but we don't believe -- it's hard to say how it's going to meaningfully underperform from here. >> i think it's right. what matters is intel basically said amd has got this market and that shocked people. that's why amd stock is moving up over intel's evaluation when you throw out the white flag and say, listen, woe won't be competitive until 2025, what do you think amd will do with the road map >> i don't know.

tjx is down over 6%. >> yeah. it's a $78 billion market cap company. one of the largest retailers out there. >> i find it shocking. they never miss. they don't have as much inventory. and, also, i think home goods people are saying you have to get out of the williams of sonoma and home goods. i'm stunned that macy's stock after that amazing quarter continues to go down of not 0 to split the company. you're right it early trading hit a high of up almost 9% yesterday it's been down ever since. >> do you think it's mortgage

originations which were poor >> two-year low on mortgage apps everything -- everything is horrible i'm leaving. everything is horrible i can't take it anymore. i'm going to let you take it it's horrible. nobody likes anything. everything is bad. the world is coming to an end. ukraine gets called kooef. s&p is up almost.75%. it was the first and the best spak. >> david -- >> yeah. i was with him this weekend. executive chairman that is down 38% that's a miss. >> i know some guys that own that not a happy day

>>well, it's sad, right? >> when you do 65 cents and pool look at $1.33. >> there's no spaks that can maintain it's one of the great spaks. >> it's way early. way early. it was the first the big goldman [ speaking in italian ] and goldman -- i talked about that with david solomon. i interviewed him. there's more tonight and, you know, the spak market is closed. >> some of the spak names. this is what i was talking about. >> have you looked -- >> i can't. >> rack space today is the only other double digit. >> yeah. apollo does great buys when they take things public not so great if there's going to be -- >> there it is. >> even though the high end was

fantastic. restoration hardware known as rh is down 30%. 30%! 30%. >> yes, sir. >> wow yeah. >> you going to stay -- every time i try to go, you pull me back. >> yeah. i do. >> quick reminder, you can get it on the cnbc investing club with jim sign up and find out more at cnbc.com/jointheclub for bonds today, it's a data echo data free day back in a moment

here's a look at the heat map. the dow has lost about 1400 points over four days. we are looking to get some of it

itck, but we're already off the inial highs. stock trading with jim is in a moment ♪ ♪ ♪ ♪ ♪ alright, so...cordless headphones, you can watch movies through your phone? and y'all got electric cars? yeah. the future is crunk! (laughs) anything else you wanna know? is the hype too much?

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

. let's get to jim >> you should get to know the

name gavin hatterson, the ceo of moulsen coors. coors light and miller lite above expectation. this is a buy right here, right now. even for the doom-and-gloom people, they're still going to drink beer that's what they do. guiding revenue is up five for the years. this gentleman who runs it is really about, for the first time, i think is about making as much money as possible with these good beers. >> a bunch of them in my fridge this weekend, after we left. the son was home and his buddies, i guess. >> i don't encourage that. >> they leave it for me. >> you should get a yale lock. >> thougher in college

they're not going to drink beer, for god's sake. >> i have barry mccarthy from peloton. >> wow. >> yeah. mccarthy was with netflix and spotify. those who were selling peloton right now, i think they should wait until the interview. >> judging from the recent comments, he pulls no punches. >> no, he's very tough i am scared when i meet him, but that's okay. i play scared. slootman and charlie sharp >> i think he's amazing. good to be back on the set. >> thank goodness. you were missed. wkn e re" othstetis after the break. music) (crowd cheering) - bito, bito, bito, bito! - [announcer] bito, the first u.s. bitcoin-linked etf.

your record label is taking off. but so is your sound engineer. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire matching your job description. every big idea every game changer every "how'd they do that?" starts here the blank page artists and writers know the tyranny of it well

but so do developers, data scientists, ctos the new creators to them, we say let's create something that changes everything ♪ ♪ ♪ ibm let's create

good wednesday morning, welcome to another hour of "squawk on the street. i'm here with morgan brennan and david faber. they're calling it a soft sanctions rally, but we're

quickly losing it. >> we're 30 minutes into the trading session. here are three big movers. lowe's shares climbing after the retail beat estimates, same-store sales better than expected, too. elevated demand, translating to upbeat fiscal full-year guidance, those shares are up 5% palo alto networks are jumping, let's see, 5% as well, after posting q2 results the ceo telling cramer last night cyberthreats are up across the board as digit at transformation continues forecasts also better than expected finally, an upgrade for intel. raymond james going to market perform, having fallen 30% since then, analysts say, quote, our thesis has played out, and they don't expect meaningful underperformance those shares are up 1.5% no price target attached to this

note david? >> thanks, morgan. we're going to start with the developing situation in ukraine. kayla tausche has the details. >> reporter: good morning, david, the kremlin is vowing to hit back against the west, after a coordinated wave the sanctions limits russia's ability to access the financial markets activity by two russian banks with about $80 billion assets, five elite individuals and family close to president putin and the operation of the in order stream 2 pipeline. it stop short of slimming oil exports, cutting off high-tech exports, or blocking the access to swiss payments, which the -- biden also held out hope for a shred of hope for a negotiated

resolution, but antony blinken said there would need to be a reversal of russia's actions, cancelling a meeting with his russian counterpart, citing the invasion now we see the invasion is beginning and russia has made a wholesale rejection of diplomacy, it does not make sense to go forward with that meeting at this time >> reporter: they have added troops in the baltic states to counter the amount the troops, but a separatist leaders said while military is gaining speed, it's not at the point of try to go claim new territory guys back to you. >> thank you for covering the dynamics which have been so fast moving i'm curious about china's role in this. we know the ties between russia

and china have been strengthening. interestingly, china's foreign ministry just saying that taiwan has known ukraine and always been an inalienable part of china. i have to imagine that leadership is watching all of this very closely for a variety of reasons they are, and it's interesting, at a press difference just today, a reporter asked the foreign ministry how they were viewing the escalating tensions in ukraine and what role beijing was playing in trying to alleviate them a spokesperson responded by calling the united states the culprit, accusing washington of heaping up a hysterics so they needed to be more involved, and sayingally parties had a right to legitimate security concerns and should pursue the necessary diplomacy,

and perhaps one reason we having seen -- china's cooperation would be need to do enforce some of those rules without cooperation from china, perhaps there's a way that russia could skirt some sanctions by sending exports through china to end up in russia that's one way to be seen as blunting the effectiveness of those sanctions. i know the white house is trying to figure out how to work around that. >> tricky situation. kayla tausche, thank you. turning back to the broader markets, stocks rebounding after all three majors fell more than 1%, though fading the gains. joining us -- good morning to you both alisha, i'm starting with you. you say this is a hangover what do you mean >> we had extraordinary stimulus

last year, coupled with the fed averages -- meaning it kind of ignored signs of broadening inflation during the summer and early autumn now we're left with the fact we have overstimulated the economy, we're frying in oil, and it's time to come back to more normalized spending, and the fact that the fed is behind the turn, so, that's what we're left with that's what the market is reflecting, some kind of unpleasant range here between that 4200 and 4500 range, between that january 24th low and the 200-day moving average it's just sitting here waiting to see what the next move is. >> ed, how do you see it, especially given the fact it has been range bound since the start

of the year? >> i agree the s&p i think is range bound for the next several months, maybe through the end of the year i had been thinking the beginning of the year we could see the market up for the year, but now i think we'll be quite lucky if we're flat for the year it's not just the fed anymore. it's also geopolitics. those tend to be buys opportunities, but this one is a doozy. the stock market has a tendency to climb a wall of worry, but i don't know if it does that where there's 150,000 soldiers on the other side of the wall. >> maybe you could elaborate a bit on that. the buy the invasion playbook that some were buy, it's the monetary and fiscal backdrop is different than, say, in '91.

>> i think that's absolutely correct. the fiscal and monthetary polics worked to get us out of the lockdowns, but they were excessive. as a result we had a demand shock that started early last year and we've had supply chain disruptions. there's been widespread hope that the supply chain disruptions would gradually ease and gradually bring inflation down i'm seeing suspects that the phet -- hasn't even acted yet. so that's a concern. this geopolitical tensions here, it's not joustust russia i think we're seeing the exit from afghanistan emboldened putin with what he's doing his speech was very emotional, very angry, actually a bit off

the wall in terms of just a historical gripes against the west so i'm really concerned he very well could escalate the situation, depending on a risk/benefit analysis, as morton pointed out. >> a lot of uncertainties for the markets to navy gait here. i'm hearing a lot of caution from the both of you alicia, how do investors put their money to work, given the circumstances. >> it's a very complicated market i've been -- this is the most divergent in outlooks i have seen it's reflected in both in bond market volatility and equity market volatility. greater than 250% of the s&p is already down over 20%. that's 80% of nasdaq what has not been hit are large-cap tech

that's why the indices are holding up much better than half of the s&p the question is here, do they come after these large-cap tech names that have been profitable? we've been saying to clients you can't focus on the index, you have to focus on companies that have earnings power and can hold their. very similar situated companies. any company that has a declining moorgeen, the stock price will come down and the mum pal will compress we would stay with the consumer service sector, particularly travel, avoid the good sector. we do think there will be a shift in spending, and we have to think about a rate hiking environment. the geopolitical risk will be expressed through oil prices which ultimately if there is a further spike in energy prices globally there will be a demand

shock. it will be demand shock, so that you willy will be a growth problem. that depends on how long that lasts. >> thank you both for kicking off the hour with us, alisha and ed. >> thank you. as we go to break and the dow briefly goes red, a look at the road map putin is using a stockpile of cash in gold to fight sanctions. plus the future of human space flight richard branson's virgin galactic said it's on a slow burn toward positive cash flow, and this isadad al husseini is with us. stay with us (rhythmic electro rock music) (crowd cheering) - bito, bito, bito, bito! - [announcer] bito, the first u.s. bitcoin-linked etf.

alright, so...cordless headphones, you can watch movies through your phone? and y'all got electric cars? yeah. the future is crunk! (laughs) anything else you wanna know? is the hype too much? am i ready? i can't tell you everything. but if you want to make history, you gotta call your own shots. we going to the league!

what does a foster kid need from you? to be brave. to show up. for staying connected. the questions they weren't able to ask. show up for the first day of school, the last day at their current address. for the mornings when everything's wrong. for the manicure that makes everything right, for right now. show up, however you can, for the foster kids who need it most— at helpfosterchildren.com

energy is the top performing sector of the year, and the only one in positive territory, outperforming financials, about flat crude prices skyrocketing to start the year as well both brent and wti up, as sanctions against russia cause a squeeze in the supply chain. >> for more, let's bring in sadad al husseini.

always good to have you. give me your take on global oil prices given the hostilities, the potential for more coming. what are we going to see >> good morning, david yeah, it's quite dramatic. i hope we don't see any squeeze on oil supply. it hasn't happened yet i think the price escalation is mainly financial, but you also have the same problem with gas so it's across the board opec is going to continue producing, and the market's supply is continues to be abu abundant the europeans, however, have to figure out how to deal with their own shortfalls they not build inventory in gas, very often inference officers in products they haveto try to sort out

their volumes. this is where the real problem is >> you can't fly with weak turbines and batteries you can't run ships on those, either that is bringing out the strategic importance liquid hike roe carbons. this whole gas problem that europe is facing, it could be turned around as an asset. they could find their way through this they don't have to be victims. they can set parameters, buy the gas from the russians on spot market pricing this could be the way to negotiate themselves out of the

predicament they're in they are big gas consumers, no doubt about it there isn't enough lngn world. >> opec plus continues to hold steady on its output levels, saudi arabia could potentially be ramping up to millions per day, is not planning to do it. other opec member countries expressing similar sentiment with oil closing on $100 a barrel, what would it take for those output levels to be increased? >> morgan, you're right, saudi arabia does have additional capacity there's something like 3.5 billion barrels of available capacity if it was called for. the premium on the price is more

about security of supply rather than shortage of supply. the products of available. the oil could be made available. opec is committed to increasing its supplies, so, yeah, it would be produced if it's called for i don't think they have seen a real shortage in demand yet. is this wishful thinking is it a projection that an some point demand will actually get destroyed? >> no, i do agree, it is wishful thinking we're in for a long stretch of higher oil prices. there haven't been enough investments. the iaea reported more recently that the investments have been running about $350 billion a year on average, they should have

been about $550 billion, so capacity investments have been short. in the long term, it's going to take a while to build up that shortfall. so i think we're going to be in for an elevated price, probably about where it is around for three, four years, think >> i do wonder about iranian production there is the possibility, it would seem that that can increase, particularly if there's a grus agreement reached on the nuclear front there any expectations i don't think the iranian solution will be a big one if they can bring up a million barrels offer the course of this year, into 2023, that would be helpful, but that's not the whole story. i think iranian gas is probably

more important the shortfall in the world is gas, more sore than oil. and lng in particular. it's very, very expensive, and critical for our generation and coal substitution. that would probably be the more valuable component if it could be brought on stream, but again, it needs time and money. that is in short reply >> just to dig into that more, we can talk about the under investment in oil production how much of it, though, is supply chain issues and logistics as well, which we know has hit so many industries >> the resources in shale oil, in particular have been dismantled

you need that to brill shale oil production back to where it was. that's lagging behind. there's about 500 -- that's going to take a while. you need the completion equipment, and that's not there, for both oil and gas, the u.s. gas production exports have been down, and that's not enough though make up for the shortfalls we are seeing in europe again, that needs development. the epa has not sanged new lng plants the eps, environmental protection, have been very strict in the u.s., so new capacity has been very short >> thank you, we appreciate your time. >> my pleasure.

we're going to break down the quarter when "squawk on the street" returns in a momen you are an electric vehicle. electricity powers your heart. want to feel your heart beat faster? ♪ (heart beat music) ♪ drive an electric car. made by a company whose evs have gone five billion miles... for every highway... every driveway... ...and every speedway. and where the loudest sound... ...is the beat of your electric heart. this is the new nissan. ♪ ♪ esg is responsible investing. who's responsible for building esg into your investments? at pgim, the pursuit is on for outperformance.

as active investors, to outdeliver with customized strategies, integrating esg best practices into our investment decisions. as asset managers and fiduciaries, to outserve, with our commitment to better esg outcomes. join the pursuit of outperformance at pgim. the investment management business of prudential. don't like surprises? [ watch vibrates ] proactive notifications from fidelity keep you tuned in all day long. so when something happens that could affect your portfolio, you can act quickly. that's decision tech, only from fidelity.

. welcome back shares of virgin galactic, reiterating that plans to begin commercial service to the edge of space would in fact begin the third quarter of this year it ended with short-term securities on the balance sheet, plus another 125 million in gross procedures raised from a convertible debt offering. so far the company has shareholder about 750 tickets, including roughly 150 at the higher $450,000 price point, after seats were reopened to those on a waiting list last august sales to the general public kicked off last week they're trying to get to 1,000 by q4, the exec officers laying out more details about plans

what this means is sir richard brandon's company is aiming to be cash flow positive by 2026, when its next generation spaceship, the delta class space plane comes online and begin flying missions as frequently as once a week. so there's still a lot way to go the cash on the balance sheet not being such a key thing. >> we have changes at the board. now do we have more exist inchally questions about demand in a a world where there's a lot of uncertainty and this is a highly discretionary buy >> potentially but when you're talking about $450,000 a seat, you're probably in an upper echelon where this

may not matter keep in mind the initial reservations go back as long as 15 years. they did actually report a profit versus a loss, was risens bers than expected you know all those images we've been getting in ukraine, many of those have been coming from maxar. those shares are now down 5% a lot of mentions of the

firm in the last couple days coming up after the break, we'll be joined by former u.s. ambassador to ukraine bill taylor. and how putin plans to use this stockpile of gold and cash to weather sanctions, as we have lost 4300 once again on the s&p 500. ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq

alright, so...cordless headphones, you can watch movies through your phone? and y'all got electric cars? yeah. the future is crunk! (laughs) anything else you wanna know? is the hype too much? am i ready? i can't tell you everything. but if you want to make history, you gotta call your own shots. we going to the league!

i'm kristina partsinevelos here is your cnbc news update at this hour. our salvation army ready, that's what the head of the ukraine's

head of defense council is saying this morning. zelensky -- in what may be a russian cyberattack, ukrainian government web sites are not working right now. men were seen carrying boxes into the building. russia's state news agency says moscow is evacuated diplomatic facilities in ukraine. president putin today says the interest of rush russia, the security of our citizens today he participated to market defender of the fatherland day at the vatican, pope francis says he's pained andn ukraine. he called on national leaders to examine their consciences.

we are about an hour into the trading session, and the markets are offer the highs. we're now in negative territory across the board less ate guess over to bob pisani we started positive. it's really those two sectors that are have been a problem the big plays have been in the commonity spaces. tissue is getting a lot of play, too. people are trying to make

estimates or guesses on where they think mids term activity might be going you can see this in the commodity etfs that are out there. this is the big energy etf, a big move up. it swung in a 7% range yesterday. even with that big 25% move to the up side. that's a sign of confusion when you get 7% price moves in a single day dba is ten agricultural futures. ukraine, russia, huge exporters the wheat here volume is very, very high meantime, we just have the normal machinations. enormous return on, and just in the last couple days, bick fees

sizable dividends increases, and yep it's the year of the dividend basket of dividend-produces stocks are outperforming the s&p 500. finally, a lot of people asked me about the 10% correction hit we they have had yet in just note here. we've had many 10 march declines since 1980 by the way, as everybody has noted, one year after you tend to have these modest corrections, it tends to be higher by about 24%.

i thank ryan dietrich for that information there. 10% corrections are not that uncommon 33 in the last 40 years. guys, back to you. we're watching that, bob, thank you. joining us this morning, former u.s. ambassador to ukraine william taylor, and p.j. crowley. we pressure your time very much this morning. i think people expect them to be

an effective gambit. there was clear live an invasion they put troops across the international border into sovereign territory so there was no opposition, no conflict, there was no fighting because the russians move into a friendly territory that said it generated the right respond. when you invade, you pay a price, an that was the sanctions that the president put on yesterday. they are serious sanctioning, serious for those oligarchs right around president putin, and there's more to come, a lot more to come the fifth larger bank in russia, plus a military bank hit

yesterday, but the top two or three commercial banks would be a major escalation. >> p.j., flow japan, australia, canada, all on board can you talk about the reserves that putin has stockpiled, the agree to have it will allow him to absorb some of those blows? >> clearly he has some experience with try to go create anxious-proofing one his economy. you know, that said, obviously he still has a major commodities that is viable to the global economy. i think for the u.s. and allied diplomacy at this point, to echo

what bill just said, the key here, more than anything else is -- we have taken a step, i expect him to consolidation his positions, and then we have reserved the ability to add additional pressure, as this crisis continues >> does that run the risk of this prolonging and stretching on for a longer period of time than otherwise it might? >> i think these are ser sanging. we talked about going high and staying high we reserve summer further sanctioning if there is actual

fighting that's what we are trying to deter. there's a deterrence of the escalation of these sangs. p.j. is exactly right. it's important to keep the allies on board, and they're there with us for these sanctioning. i'm sure they'll be with us if putin decides to send in his troops to fight. >> we did get reports about a service attack in ukraine, and eamon javers has more. >> we are getting this word tro ukraine of a distributed denial of service attack that began about 4:00 p.m. about an hour and a half ago the nevin we're getting is from

mikhailo fedorov doing this over his telegram channel, he says there is an attacks, reported by a number of banks, they're switching some traffic around in ukraine trying tots the sites up and running. i should just give you some context around that. a ddos, a hack, is viewed as like digit at vandalism, an effort to suppress web sites already up on the internet, make in the not visible to people trying to access those that's different from the cyberattack you may expect in the military context, where they're taking down the government's ability to fung, a power grid, that sort of thing this is the type of digital harassment we have seen for years now, and has been stepping

up nonetheless, everybody is watching this cyberpicture carefully, and ukraine is waiting to see -- and now we have the ukrainian government saying there is a cyberattack underway that began about an hour and a half ago, and so far a ddos attack. >> thank you, eamon. let's get back to our guests any terms of what vladimir putin is trying to achieve, do you ultimately believe he will continue to press his case to an. >> well, he's will be done that, both in terms -- over means, and now covert means

he was to re-create a puppet regime he will continue to find ways to accomplish that objective, but we have to remember, say, since 2008 which bill was in kyiv as our ambassador, since nato has pledged that the door is open for member, what has putin done? he's invaded georgia, now reinnovated ukraine, his troops are still there. so he will complained he position at some point, perhaps submit to some sort of bush but ultimate objective is to create a zone of influence that

includes ukraine >> what can be done, both within ukraine domestically, and also among allies, the u.s. and others he wants to dominate ukraine. that has been his goal, will continue to be his goal. if he stops now, he may flinch before he sends his military into a real fight, which is a tough military, let's be clear but he will not give up. he will try to squeeze ukraine's economics. he will try on undermine ukraine politically. that gets to your question, what do we do

we need to support ukraine militarily, economically, finan financially, over the long term. president zelenskyy has been very resolute, even calm up until now. president biden has ported in this resolute response, the unwillingness to give into this intimidation putin must be surprised that they have not caved in, have not sought to compromise no, the ukrainians will continue this fight they now where they want to be where they want to be is in europe so we need to support that. >> yeah, p.j., on a closing node we petraeus on our morning note, and he mayrush.

>> we're back to the old nato that we grew up with that needs to be the focus of our diplomacy. as long as we continue to coordinate closely, which the biden administration has done quite effectively, you know, inch by inch, continue to increase the pressure on putin, make those around him very uncomfortable, that complicates his life to the point that perhaps we can come back to the diplomatic table with our russian counterparts and see what can be achieved >> gentlemen, good discussion. we preserve you waiting around for the details on the denial of service, and we look forward to talking again. thank you. we're going to shift to

cryptocurrencies bit counsel falling below 40,000 over the long weekend, and struggling to recover, joining us to discuss is chris silky great to have you back on the show we were talking about all this geopolitical strife. does it potentially cedreate a tai tailwind >> yeah, i think it does that's one of the core thesises. in times of heightened political and geopolitical uncertain, people are looking for ways to reduce their risks crypto assets offer them that opportunity. i don't think it's a coincidence that last week the ukrainian parliament introduced legislation that would formalize

laws around cryptocurrency that does that exist previously while we're seeing some growth in assets, i think there will be a stronger base for cryptoassets. >> to your point, we continue to see this risk-on mentality, where the trading of cryptos is a concern, so what would it take to see that type of shift. >> it's a great uestion. in order to really answer that question, we need to little where the activity is coming from these days, in particular we're seeing short-term holders of these assets ramped up their activity in q4 right before the sell-off. i think during the% of heightened insecurity, those short-term holders are exiting,

but long term, they have stayed steady so i think what we're looking for is some certainly off rus russia/ukraine situation, which i this i is unlikely, or a return to the long-term accumulation that we think will start sooner rather than later. >> are we in a crypto-winter >> it's pretty cold outside, but i don't think know about that yet. there was a recent interview that one of the most fascinating thing about crypto is despite the price volatility, the builders keep building the folks trying to build the underlying basis of cryptoassets aren't focused what they're focused on is introducing transformative technologies folks like the team at ethereum and other projects are focused

on taking this time when some of the froth has diminished to work on delivering what their ultimate projects are focused on deliver. whee also focused on how we introduced the new innovations i think sewell continue to see firms like ours really leaning into the build side of things. >> interesting meantime, regulation continues to be one of the other pillar we can't not talk about when it comes to this asset class. expe expected -- the expected executive order by biden, what do you expect out of that? >> it's anyone's guess if and when it will come or, but the fact of the matter is the president of united states is chiming in on the discussion that's a massive step forward.

it's no longer a debate. it's a debate at the executive level. that's an important shift. we're hoping to see some guidance, and also hopeful he'll direct the agencies to look at how to kind of facilitate the adoption >> so we appreciate your time today, chris. >> always a pleasure coming up in the next hour of "techcheck," we'll check in savita that begins at 11:00 in the meantime. "squawk on the street" is back after this

you're a one-man stitchwork master. but your staffing plan needs to go up a size. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire oh man, my laces are ruined. mat the gender reveal wastion. more fun than i thought. get in the back. look, your cousin dared me. i had no choice. my cousin is twelve. this is your captain speaking... 'cause they're like... captain's chairs? to be fair, i did say heads up. to be fair, you're sleeping on the couch. hey mercedes, change lighting to baby blue. i think you're actually more annoying back there. get up here. the mercedes-benz gls. perfect bliss wherever you sit. i'm gonna grab the handle now.

the technology sector is

changing close you are to the flat line, while applied materials and synopsis are among some of the top gainers, as can you see here today one of the standouts is cadence design systems, after the engineering and chip firm beat analysts expectations, so keep in mind that sector. >> dom chu, thank you, during february, we're celebrating black history. here is dave henderson sharing a memorable moment with his late father >> my dad grew up in birmingham, alabama during the civil rights era, and i asked, did you ever get to hear. >> he said, i shook his hand

second best. >> i asked, what was the first he said, when you graduated. know where you come from, so we can help the next generation understand where we need to go cody! hi!! hi! how are you? i'm good! i'm crocheting. i see that. started off as a hobby. kind of snowballed from there. and alex, i don't want to stop. well, i don't see why you should have to. let's set you up with a side gig savings goal on the u.s. bank mobile app. this way, you can turn it into your main hustle before you know it. you're my hero, alex! what are you working on now? pool cover. that's fun. oh! i made my wife a bathing suit. oh, did linda like it? she did not. oh. you should see what i made for max. max! look at him. he loves it. the confidence to make your dream a reality.

u.s. bank. we'll get there together. never be afraid of your strength. because your body is capable of amazing things the one they said you shouldn't have. the one driven by a power they can't see own your strength and see how far it takes you. tonal. be your strongest. at cdw, we get your it staff has be ready to take on new challenges. that's why we built an office obstacle course ... to prepare our people for anything. you're late well, cdw amplified services experts will consult with you to design, orchestrate and manage your most complex technologies to help you quickly overcome any obstacle ... without all of this. oh, that is better. who's that? oh, if you want coffee, you gotta get past tantrum. you're in for a brewed awakening. for technology that moves you forward,

trust cdw amplified services

welcome back with the u.s. and other nato allies imposing sanctions on russia, vladimir putin is relying on a stockpile of gold and foreign cash to support his nation's economy robert franks has the story. >> good morning, david you can't call it russia's financial shield, after the sanctions in 2014, russia has quietly building a new financial system that relying more on the euro and gold. the currency reserves totalling over $630 billion, another two years of exports or pay off the entire external debt experts say they could easily fund banks and oligarch foss several months even during the toughest months of sanctioning,

a current account surplus and oil closes in on $100 a barrel russian officials say the sanctioning will be unpleasant, but fundamentally change nothing. the 2014 sanctioning now regarded as a policy failure, because the russians simply found new way to hide and fund their debt, foreign investors used to other than more than half of russian bonds. now it's less than 20%, they imported 5 billion in additional foreign bank notes they are ready if oil stays over $90 a barrel, russia will take in an additional $65 billion, which gives them literally more money in the bank. you at to that the potential of crypto, and they have a lot of runway. >> yeah, real quick, robert, i know you have reported on the ineffectiveness of the sanctions of oligarchs. >> the hope was they would pressure putin, but what they

found is they don't pressure putin, it works the other way around, so it's interests to see if they expand that list this time around. >> robert frank, thank you. after initial pop, all the major averaging you are now lower. 4289 that will do it for "squawk on the street." "techcheck" starts now ♪ good morning today global risks skirting a rebound, the latest on russia/ukraine tensions and its impact on your portfolio the tech sector may still be in growth