. welcome to be "squawk on the street." stocks look to ratify yesterday after russia indicates it's willing to send a delegation to misk for talks about ukraine couple it with echo data and the 10-year is above two we'll get to the latest out of ukraine an as russian forces continue to advance on kyiv. ukranian pre ukr ukranian president zelenskyy -- leading to the big reversal for

futures, jim you have to take the things with the grain of salt. there are setbacks overnight. >> yeah. they haven't sent the tanks in yet. the setbacks are minimal, i think. you can envision the scenario the stock market would like. as an american, believing that freedom matters, you wouldn't like which is that the russians are on the outskit -- outskirts of kyiv the russians on the outskirts and they can move in, at will, put in a new government and the chinese say, you know, we like to broker a peace treaty between the former government and the new government so, david, these are the kinds of things that putin, undeterred by anything, could easily do that's why i think app idea it would be solved by the weekend. >> unexpected. i'm not sure what it means for the leadership in ukraine right

now. >> yeah. >> the government not unlike what the russians did in afghanistan. all though i have to tell you that -- i don't think ukraine is going to say, you know, we're done. >> right so then is there a counter insurgency >> yeah. you have an occupation. >> right. >> specifically to the market affection we-- action we've seen reversing would look to be a down open. now we, obviously, can see otherwise. yesterday, i mean, that move in the nasdaq 6.8%. 6.8% you hadn't seen a day like that since a number of days, of course, in march of 2020, as we entered the pandemic. >> at lot of short covering. most of the companies that reported were pretty good numbers. there has been a historic contraction of multiples here, david. so when you think maybe powell doesn't have to move so aggressively you can start thinking that

maybe there's some signs that inflation could be peak. remember everyone is going from 120 oil. >> yeah. yesterday you had some people buying the stocks in part because rates were down a bit. today that's not the case. we have the 10-year above 2%. >> they've shredded the market the losses in the market are so horrible that people don't want to hear about the market anymore. >> that's exactly b. of a's point today. 76 percent of the nasdaq in the bear market. 51% of the s&p in bear market. there still is fed tightening into what they think is a roll over of the consumer and say sell the riffs b of a has been caution for awhile. >> yes, they have. take a look at dollar generally upgraded today why? well the strapped consumer the head winds of stimulus being over okay that matters tremendously. and, you know, david, inflation itself is making it so i believe purchasing power is now in

double digits. purchasing power for the working person is declining it's the insidious of inflation. >> yeah. >> will it continue is the question, jim. how much will it take from the fed to snuff it out. particularly because the impact potentially of what we're talking about in ukraine snarling supply chains even further. lifting oil and energy prices even higher. >> look, i don't think it's going away until the fed raises a lot. what happened we got the moment in time where you realized you could put price increases. there's no resistance. that's a cycle you have to break it you have to make it so you can say to the supplier, hey, listen, we're not taking that problem.

we're not there. i know the housing companies said, listen, we won't build a lot of homes because we can't get the product. i mean, this is one of the things where trying to get -- so, you know, deliberately slow the process. they won't pay the price and, look, somebody is substantial doubting up. we saw a big amount of oil yesterday. >> yeah. i said it hear it came out there. >> got it. >> yeah. look there's some of the yield because of the time they changed structure. and by the way people are misinterpreting. they said it's for drilling. no, no, no the private equity companies continue to drill because they

need the cash flow but the majors are not drilling more despite the increase. >> drilling is drilling. >> what? >> drilling is drilling. >> what is that? a tree is a tree >> private operators -- you seem to be making the point that there's not going to be anymore oil coming out. >> exactly. >> it's only up very little. china has to buy a lot. >> yeah. >> the chinese brokering a piece. can you imagine? if they take kyiv and then the chinese broker a peace treaty. what a disgrace. imagine if russia and china -- >> how are we supposed to be a factor >> i don't know. >> come up with it it's a disgrace. you have to come up with something. >> i'm saying that we didn't -- the united states has offered some sanctions to banks that

don't really rely on the united states long-term capital going to business again >> no. >> failed. >>well, it's not just the u.s., of course. the eu reports this morning that they're working on freezing both putin's and lavrov's assets in luxen burg we'll watch that and, of course, dick is on squawk talking about whether or not cyber is the next stage of this whole back and forth. take a listen to what he said. >> i was talking with someone yesterday and comparing this to the missile crisis back in the

'60s it just makes some sanctions -- >> one of the best explanations is to why we didn't go that far yesterday on s.w.i.f.t. >> yeah. a strike yesterday george kurtz and palo alto on "mad money" said we're not where we were. we are aware we know what their tricks were we understand what they did in ukraine last time around david, we're not naked we're not as -- we're --

>> well which is it? a disgrace or not? >> no in terms of being not a power. >> not capable of actually dictating action. >> that's what i'm saying. >> yeah. >> versus the chinese who can come in and call their own shots. china, north korea, and russia have giant armies of people trying to destroy our companies and our grid. >> no doubt. yeah. >> all times. >> yeah. there's a reason we focus a lot on cyber we have great reporting almost every day. >> we're spending billions our companies are spending billions of dollars. >> it's a huge issue. >> george said, oh, by the way, we're playing some offense secret offense we're actually not bad remember -- >> we were good but we don't play offense that often. >> we are? >> are we? >> you know, they're telling you? >> that's what i'm -- i do -- the that's a is letting you know what they're up to?nsa is lettia they're up to?

>> the companies. >> i don't have nsa sources. >> neither do i. >> good morning, yunice. >> good morning. china's foreign ministry confirmed that president putin did speak on the phone with president xi jinping today the two had discussed ukraine and president putin told president xi he's willing to have high-level goenegotiations with ukraine the ministry added president xi told putin he backed the russian leader resolving the issue through negotiations and repeated china's long held stance on the importance of respecting other countries' sovereignty. up until now, china has shown support for russia refraining from calling the attack on ukraine as an invasion but it has also been indicating it has a certain level of discomfort with russia's move because it does breech china's

long-held view what it says is important. it's a key principle of their foreign policy that is noninterference in other states' sovereignty. also, china has indicated its uncomfortable with the level of uncertainty that could bring to the economy here now, carl, jim, i thought your conversation about the idea of china playing a mediator role was interesting. for some historical context, china has offered to play mediator for a lot of other very difficult negotiations between the israelis and palestinians. between the afghan government and the taliban. between india and pakistan not all of the countries have or different parties have ever taken china up on the issue because it's not always seen as an honest broker it's unclear if, in this situation, ukraine would take china up on that role, if it were to come to pass

and, carl, that's because so far china has really shown that some support for russia that said, ukraine has china as a very important trading partner and, in fact, the two just celebrated 30 years of diplomatic relations last month. >> yunice, thank you for that. >> i continue to believe if you're on the outskirts of kyiv, why would the russians not go surround it, take it, and then say, listen, we want a peace treaty we want a new government as a part of that maybe in china kind of ratifies that and plays both sides. next thing you know, you have to say why is the stock market rallying so furiously. i i it's not, david, because there's going to be a full-out war this week. >> yeah. the sanctions will be in place for a long time. you imagine there's going to be potential influence on industry prices for quite some period of

time and, also, our relationship with russia is not going to be good for a long time. i don't know how much it matters in terms of the stock market maybe not much but it's a new cold war potentially. >> when churchill talked about the iron curtain back to the iron curtain. >> right i think -- the hostilities, jim, what does it have to do with the price of snow flake? nothing. >> snow flake has been looking really pure. making the move against the rest of the cloud companies. >> we'll talk about some companies that have been here including etsy opening about 16%. a slew to get to including dell and beyond meat. we look at the premarket movers. a look at the futures on this friday don't go away.

zero-commission trades for online u.s. stocks and etfs. and a commitment to get you the best price on every trade, which saved investors over $1.5 billion last year. that's decision tech. only from fidelity.

welcome back morgan stanley confirming the department of justice requested information regarding its block trading business this is a story percolating for some time. credit to both the journal and bloomberg who have written about it let's call it in the last week or two weeks jim, it has come up a lot in conversations. >> it has. >> hedge fund managers, with others who participate in the purchase of stock being sold in a block being a secondary sale via a morgan stanley or primary sale from the company, as well and goldman sachs and others

and it's funny how many people want to engage an the story. say have you seen this did you know, you know, that the guy who ran this has been put on a leave of absence since november i've been told subpoenas have gone out quite a few of them. we'll see if it ends up as anything it's a murky area. the question is, you know, if you are a block trade running block trading. are you giving a signal to your best clients of what may be coming letting them potentially get short so they can then cover on the issue that you do to make sure it goes well. >> okay. >> that's one aspect. >> i'm goingto speak hedge fund -- >> you know this. >> yeah. and they said it's a highly unusual case given that's what you're supposed to do. >> right. >> you're supposed to try to play stop. you can't expect people to get their heads slammed. so you say, listen, we have some block. now they can say, look, no one is allowed to hedge this

they have to get their head handed to them typically that's called sounding out the market and making sure you can do the best job for the client. >> right. >> and it's been since time -- i don't understand what the justice department is trying to accomplish here given the fact that when you're a client, your job is to sell the stock but nobody is just going to buy it like oh, i'll take it. >> there's a lot of pressure on the guys to not miss deals if you're morgan stanley, you don't want to miss another deal. you hear about a lot of things it's unclear to me exactly how they go about making decisions in terms of what they actually tell people or how much signaling they can do or is appropriate. not necessarily sharing mnpi public information, which is, well, the company will be selling $2 billion of stock or whatever. >> so you're the client. you say, david, we got about $10

million viacom to go. >> right. >> i would like to see you buy some are you supposed to say, you know, i'm willing to lose $5 million for you because i love mo morgan stanley that's not how it works. you try to position yourself then the idea they're not talking to each other. again, you don't want a guy saying i'm going to blast out of this and hit thisguy. there's other ways to do it. rather than making business or a

criminal investigation. >> goldman had nothing to say about this, right, when you talked to them earlier this week goldman conceivably is -- >> okay. i did not ask. >> yeah. plenty more to ask we might get a stus co nominee today. we'll talk about that along with the mad dash in a minute zero-commission trades for online u.s. stocks and etfs. and a commitment to get you the best price on every trade, which saved investors over $1.5 billion last year.

that's decision tech. only from fidelity.

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

across the pandemic spots. i think the market is maybe scared of whether all the pandemic gains are going to dissipate and so it's going to take some time for the market to sort out winners from losers. >> that was josh silverman, etsy ceo. it leads us to your mad dash. >> that was a great interview. etsy is a secular winner in the period along with airbnb it turned out the transaction fees they were able to raise go to 5 or 6.5%. the e commerce journey is the first place to go. 44% is overseas. i like that. notice we deceleration you have to be careful there. but still up year over year. and that's despite the end of the lockdown stimulus, as it calls it cathie wood sold for $41,000 last night. >> okay. >> and to his point, it was a 50 or more point decline over a

period of less than six weeks. >> they went down. shopify signalled it a lot of companies said e commerce is not strong we know that this is one where the e commerce is accelerating. etsy is a secular winner they're going after men now. they have so many cohorts they're beginning to do. josh is a wonder person in terms of his vision and what he's trying to do and i have to tell you, i think it's a buy even here. >> okay. well, you can see, obviously, it's going to be up sharply today. we have more stocks to watch this morning we have earnings from dell that'll be down. i'm going to be talking about zen desk that monster quarter that potential deal with constellation. >> i have a little bit of insight. it goes a long way we're back after this.

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they're very concerned about what might happen here and they should be because when you think about some of the collateral damage that might take place from these call them wiper viruss, which are designed to basically wipe a system, when we think about the cyber it has new boundaries for collateral damage. >> that's george kurtz talking to jim last night. and referring to the bankers' fears. >> they are going to spend more money. i think the crucial thing is spend money and throw money at it he said he's talking to bank executives and ceos. what i thought was interesting, at one point, when you talk with them, it's clear that if the united states want to play hardball and attack, there's going to be blow back. are we ready i think we're better than we used to be at the same time george is saying this is a uniquely two-front war. military war against ukrainian

soldiers and people and russian war against our banks and grid if the united states plays too much hardball. once again you keep hearing, like, are we a pitiful helpless giant in the face of the russians in it seems like it. >> we have a line it's called article v. it means one of our nato partners gets attacked with guns or cyber, then we'll step in has it happened? >> no. as i mentioned earlier, david, there's offense being played it's easier to play offense than defense. work from home was a something that was not planned, obviously, and so now you need zero trust identification, which is another way people have to get worried

about it they reported a number that was put in wall street yesterday that was zero. >> after the bell we'll talk about dell, as well. response to that number is not particularly good. there's your opening bell. [ opening bell ] >> a little more green than red today. etsy might be a winner here. e ebitda is ahead. >> they have 5 million small businesses involved. as someone who has used etsy in a business way, which is incredible the reason it's a beloved company because they are -- you can buy things that you can't get elsewhere.

i mean, purchase plan lisa my wife's bar needed actual pipes to bring in beer they don't make them here. they make them in germany. so something is made in germany. you go to etsy it's a commercial platform and people keep thinking let's buy cuff links no, it's a commercial platform if you want aprons stitched with your name. we don't make them we don't make a lot of stuff here it's proprietary around the world, that's why i think that -- i really think if i have one criticism and josh didn't talk enough how it's a business-to-business platform. >> maybe the market also likes hiking their transaction fee. >> they do they were a hero last night now block or square was a hero there really is a war i think

ultimately between american express. >> wow look at that. >> because what happened is cash app is for genz. then they switch to american express. steve has done a remarkable job. i look at a stock like block and say that's been crushed! yet we sit here and think maybe it could be a bear market. it's like amc. there's a note today that reiterates sale. and, you know, they talked about how they're going to have money after the quarter. they'll have money even though they have a huge ebitda loss and i was thinking, well, the apes that like it are excited for paying before popcorn with etherium they're not daunted from amc. >> yeah. there's a look what about dell?

we got an upgrade from bernstein. >> no. they have nice dividend now. >> yeah. in many ways it's a capital return story some belief they're going to change their or eliminate their super majority voting share structure. demand is strong. >> what happened here? they struggled to get the parts. a lot of companies one great stories of the quarter did you have to air freight. and as bad as oak freight is, air freight is worse i want to take the other side of the dell trade when it gets to 48 you almost get into a 3% yield because of this dividend and, also, because, david, you know, who runs dell? >> michael dell. >> he's good oh, yes. he's relentless.

>> yes. >> relentless. they are took back the best in stock upgrade. >> no. it's not clear they did that. >> okay. speaking of capital return you tweeted yesterday about amd's buy back you cup it with moderna, ebay, dropbox, cisco, pepsi. >> pepsi fell apart. they have 50,000 -- people forgot and made a real commitment to russia advanced micro's ceo is not one of the people that announces a buy back and doesn't buy it back she stands there so let me just inform people who are selling amd now. you're probably selling a lot of it to lisa suh from flushing.

>> i know where she's from >> there's plenty of us karl icahn. >> she's from brooklyn. >> philadelphia doesn't know what is going on. >> i went to the star of the hall of fame stars -- >> you did i have no idea where the guys who founded monster are from that stock is also up 7%. >> yeah. constellation is up in upstate new york i'm glad you mentioned it. monster shares are up. they reported the quarter fine. >> don't tell me you have the constellation to buy monster story. it's been reported and not refuted. it's reported by bloomberg a number of times. of course, in fact, even saying they're getting closer to a deal there are a lot of shareholders, let me tell you, who throw their hands up and say they don't fully get it monster has a higher multiple. what are they getting by doing an m.o.e they are similar sizes i'll tell you that people with

some knowledge of what is going on or knowledge what is going on indicated to me that the founders do believe that diversifying the product offering would be a positive. >> you told me quincy -- >> well that's a great question. coca-cola is a 19% holder in monster. clearly it would have a lot of influence here would make a bid for monster itself is a question very much unclear whether it would be the case. it would hold a lot of power here let's say you do a deal that required a vote, for example they have an important vote here you might have a lot of monster shareholders questioning what you're doing given a number of people i spoken to say if you print a deal like that it's down 10%. coca-cola has a great partnership with quarters to make topo chico. same thing with monster. >> they moved the bottling to constellation, if the deal happens. that would be a bad thing for coke, wouldn't it?

potentially? >> yes unclear. they're buying into it. >> yeah. and i was surprised -- the only thing i was told is things are moving a bit slower than implied be i the bloomberg story of a few days back. it does appear they are engaged. >> yeah. very interesting, david. constellation would like to have cannabis-infused drinks. no one has been able to make them taste good so far [ laughter ] >> it's not a delivery system. the plan of constellation and monster's plant is in atlanta. >> yeah. >> they must be talking to coke. >> yeah. a liquor-infused energy drink. everyone is infusing liquor. ever since truly and white claw.

remember white claw? >> yeah. young people still take white claw and truly beer numbers have been suboptimal constellation is brought into the business look, i don't know, i know that james quincy would like to torpedo that james quincy is big into liquor and mexican club soda, so to speak. they don't want another competitor here. >> i want to talk about in the m & a world about zendesk. we haven't seen an announcement yet. it's going to be voted down. it's not a surprise. in fact, the only real question is momentum share is potentially booked it's unclear it would have been the case it was a deal announced back in october. 10/28/2021 it called for .225 shares of zendesk. almost immediately they started questioning some of the judgment there. they had issues with the

strategic rational with the use of the equity there. they felt it was already at a discounted price of whether the synergies would be real. just many, many questions. as you can see, the stock went down very quickly. it is rebounded since. it has become quite apparent it was going to be rejected that's what i've heard, as well. we have yet to hear a formal announcement from the company. and, also, the idea that potentially the company could actually get sold. it was a few weeks back on the 10th of february they rejected an unsolicited nonbinding proposal from a consortium of private equity firms they gave us the price 127 to 132. they said no thank you not interested there's talk about strategics and whether they would be there. whether it's a way to potentially outrun the proxy

fight yet. you don't have an annual meeting date set yet maybe you sell the company and avert the fight. all that being said, there were plenty of directors in favor of doing this momentum deal and, in fact, one of them is actually already involved in the fight. that is this gentleman karl bass the lead director here at zendesk. and i'm aware of certain correspondence that took place i felt curious on the part of mr. bass he was into it when he was running autodesk he got into it with the activists. maybe he's got bad memories. my friend kim squire who writes a column for cnbc.com wrote a story back on december 4th there it is saying, you know, this is what jana is thinking. this is how people are thinking about the momentum deal. this is sort of where things stand right now. i share this because i think it's relevant.

mr. bass didn't like that column sent ken an e-mail that ken shared with me and said the following, just read your latest opinion piece. since you're a lying piece of -- yeah lying piece of excrement, is it a good thing to include the scc doesn't hold you to the same standards of corporate executives and directors people get emotional in these kinds of situations. that's the lead director of z zendesk sending it to ken squire who shared it with me. it shows you how emotional it could get. i thought it was relevant as, of course, mr. bass will be one of the directors jana is challenging. and, of course, one of the keys in deciding whether this company will be open to overtures, if they should be forthcoming from either other private equity firms and/or strategics. i would add one thing on the strategic front, jim, adobe's name was batted with. >> really? >> that's off. not going to happen. they are focussed on large

comprises. zendesk its focus is not smaller but smaller and medium-sized what i've heard from people who are similar with the thinking, no, not interested we're waiting to hear from zendesk on the plan. i would say jana took the opportunity to reiterate they believe a rejection would be a huge win for zendesk shareholders the enterprise software. we have ha lot of those. should be able to help communicate. those are being crushed. those could be interesting opportunities. >> interesting. >> you have a 1% rally on the dow after the reversal you have oil below 92. let's get to kayla >> reporter: good morning. a lot of drop in the oil market

in the last 24 hours of so comes on the back of the biden administration's decision not to sanction russian energy exports, even as a decision by the european council has included the energy sector in its sanctions. we're still awaiting some details there. just a few moments ago, i spoke first on cnbc to the state department's senior advisor for energy security. essentially he's leading the negotiations with the u.s.'s global partners around the world about what energy supply looks like and what actions should be taken. he just told me that so far after the russian invasion, there has been no disruption in supply listen. >> so far resulting from the invasion of russia into ukraine, there has been no disruption of oil supply there also is almost no infrastructure for the global energy trade on oil that goes through ukraine. so i think pretty confident that there will be no disruption in

oil supplies directly rutting from the invasion into ukraine. >> e had said the u.s. has been successful in increasing the lng that has been arriving in europe he also says where oil is concerned, that he expects prices to continue falling to the levels they were several weeks ago. as the market starts to digest the fact that there are unlikely to be not only no disruptions to supply but also no decision by the u.s. to sanction energy and additional actions to potentially shore up the amount of oil that is on the market to that end, he said there is going to be an emergency meeting of the governing board of the international energy agency. that's happening today he said that at that meeting, there will be a discussion about potential releases and coordinated action that member countries can take to try to increase their energy supply a decision won't be made today, he said. that certainly will go along way to alleviate the market, if

happens in the future, carl. >> we'll watch that. thank you for that jim, one thing we're getting a better look at these days are tanker trackers who are watching the flow of ships out of russia to wherever. sometimes the u.s. will they make u-turns or not? that's going to be a focus for the investors in the next few days. >> i think that oil is very fungible people have to remember that liquefied natural gas is not as fungible when you look at oil, it's in our interest to have lower oil prices because the russians are financing oil. but we all know that the tactical mistake or positive situation for the greeds to make it so they phased out virtually every form of carbon energy. it's crushing germany. i had the ceo of the largest transmission company in this country who is aghast about what they did aghast left they -- they literally made it so there's no -- nothing. the lights won't go on without

the russians that's something the greens wanted to happen. >> they wanted nuclear to be decommissioned that's a key part of this, as well it's not carbon intensive, at all. >> yeah. and the overrun. so that they're not going to be able to build it. >> no. >> and michael of jpm, i know you read a lot, did a chart going back 30 years on european exploration and production versus reliance on russian exports. it's been going on for a long time. >> i think angela merkel had a great relationship with russia spoke russian fluently from east germany. mutual respect where, obviously, putin has just total disrespect for our democracy. and freshman chancellor in germany takes advantage of that. >> yeah. i think they're trying to figure out how to keep the lights on. one thing we haven't

mentioned is the reopening trade is pretty stable today the cdc reported to drop mask guidance in the coming days. i mean, people have moved on, to a large degree. >> or maybe they haven't i walk the streets of manhattan and so many people outside are wearing masks still. i want to interview each one individually and ask them what they think their risk profile is they need to wear a risk profile outside. i don't do that. to each its own. the cdc will say you don't necessarily need to indoors in a lot of places. new york city schools will let them not wear masks outdoors. >> numbers on services --

>> it's coming from all places it's just not coming together for jay. it's not it's not coming. >> he hasn't started raising rates yet. or he hasn't started -- >> why are they buying bonds >> because they're illadvised. i'm trying to do a little something different at the end of the desk. you guys are 1997. >> i saw a guy with a button shirt. can you imagine? terrible [ laughter ] >> guys, we're just about 40 points shy of going green for

the week on the s&p. let's get to bob hey, bob. >> good morning. david is always hip. i don't care what you say. we're near the highs of the day. important things spac below 30 look at the sectors. sort of a reverse of yesterday remember banks were a major problem yesterday for the dow. jpmorgan, goldman. in fact financials and visa and the credit cards and the insurance companies like travelers. all that is reversed today off that a little bit on the 10-year yield. energy similar situation reversal down a little bit yesterday, of course, on sanctions not real sanctions being imposed on any of the energy exports energy down. a little bit up today. we had new lows on industrials yesterday like caterpillar and 3m they're bouncing tech rallied yesterday today it's down. take a look at the megacap tech. remember something, we had big decline as the open.

apple was 152. on the open yesterday. it was the lowest since november they were bouncing on some hopes, perhaps, the fed might be less aggressive. you see them modestly to the downside not much these are the ones people are talking about. number one, how much impact might there be from any additional sanctions that are o? very creative on this. we don't know. it's not having a huge impact economically and now see what else is going on existing sanctions limit the economic impact. people turning to the fed again. more or less likely to hike aggressively people feel 50 basis points less likely the market seems comfortable with that. the issues now do we get more disruption to energy supplies? if no we move on did you see with occidental yesterday? mistakenly released in the day

amazing numbers. bringing in oceans of money at this point record, record free cash flow. average sale is $75 a barrel they'll do a lot better. all companies this quarter in the sales. attacking the cash flow problem with -- on three fronts. reducing the debt levels they have a dividend 13 cents a real dividend now and a big buyback program and oceans of cash. occidental driven the price up 30%. but topped out just as the ukraine crisis began here so a question how much more to push the prices up and oceans of cash coming into the companies. finally i want to note something. from carvana the high used car prices did you see what they said yesterday?

high used vehicle prices have a significant impact on industry wide used vehicle sales since higher prices reduce affordability leading some buyers to delay purchases why this is fantastic news this is what we call demand destruction. first step trying to break the back of persistently high inflation. the spiral of increased prices buyers have to say, i'm sorry, no i don't want it. i'll walk away maybe we could have destruction with hotel prices, too i complained about that. >> we didn't mention the buying of the physical auction business business strategy. >> very smart company. very smart a gain of 215 points to go green on the s&p you need 4348

a bit shy. treasuries south of 2% we're back in a moment stuff. we love stuff. and there's some really great stuff out there. but i doubt that any of us will look back on our lives and think, "i wish i'd bought an even thinner tv, found a lighter light beer, or had an even smarter smartphone."

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time now for jim and stop trading. >> my daughter reminds me if you go on etsy there's incredible art. things made by people in kyiv in etsy great metal work lots of ways to support the terrific people but do that at etsy foot locker disappointing last night. guidance is miserable. looks like nike might be cutting them off a little bit. doesn't matter. >> whoa. >> you don't think it's a proxy for the consumer here? >> no, no. the problem is foot locker but people may -- they absolutely may extrapolate big mistake to do that

it's not like -- problem's not the stores but the bar. >> understood. >> and then tonight i've got barrick i think saying that gold is a better storer of wealth than bitcoin don't look at where the stock is because it will burn your eyes i was called a sissy for not working at their company. >> they insultd you. >> should do it. >> never forgets. >> they don't have a show. >> revenge is best -- dish best served cold. >> yes with a nice chianti. >> "mad money" 6:00 p.m. eastern time don't go away.

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♪ good friday morning. welcome to another hour of "squawk on the street. i'm carl quintanilla with morgan brennan and david faber. dow still up 100 points. got data here. let's get to rick santelli

>> yes january read on pending home sales big miss big miss on the month over month, down 5.7% that's the worst month over month negative change since february and the revision was a bit positive from minus 3.8 last look to only 2.3 i am sure rising interest rates may have impacted those that are signed but not closed and if we look at a nonseasonally adjusted year over year down 9.1. worst year over year since july of last year let's move to university of michigan sentiment 62.8 a big improvement over the mid month read of 61.7 that is a 10-year low of confidence inflation pretty much put the kibosh on confidence current conditions are 68.2.

looking at future expectations, 59.4 both of these are -- current conditions about as expected the forward looking expectations much better than expected and follows 57.4 the inflation numbers. one year inflation 4.9%. moderated from 5 pi% which was mid month read and hottest since july of '08 to find a higher one. that's good news on the five to ten-year outlook mod reration there. moderated to 3%. those aren't big drops in terms of the longer term macro view on inflation but moving in the right direction and still quite elev elevated morgan, back to you. >> thank you 30 minutes into the trading

session. three big movers cyber security stocks on a tear. also some top gainers in the nasdaq since tuesday you can see right there. as for earnings coinbase and block on the move. coinbase saying the crypto volatility results in lower volume this quarter and block with an up beat forecast you can see coinbase down about 9.5% block up 12.5% some checks on the american consumer foot locker slumping to say it mildly after weak guidance for the year online retailers farfetch and etsy see elevated demand and are jumping this morning david? thank you. meantime president biden and his nato counter parts holding an emergency meeting to coordinate

next steps as russia continues the invasion of ukraine. we have more from sylvia >> good morning. this summit of the nato leaders started. it is a virtual call and the focus of this conversation we know will be very much on the deployment of nato forces. we know that the defense align is stepping up the forces in eastern parts of europe and that will be reassessed here today. now it is important to bear in mind that there was a european leader summit in brussels late last night and i asked one of the european leaders whether nato's stepping up of military presence in eastern parts of europe is not a problem here because president putin said on and on that this is his main concern, the reason why he is now invading ukraine and that

same leader told me that putin's argument is nonsense nato is a defensive alliance and acting defensively and indeed putin is the aggressor here. >> sylvia, thank you for that. watching the nato developments this morning meantime russia's attack on ukraine causing some to rethink the fed's path on interest rates. steve liesman has more on expectations today >> good morning, carl. data this morning showing inflation and strong consumer spending and durable goods orders affirming comment that is despite the uncertainty and the russian invasion rate hikes are in order the debate is whether or not 25 or 50. we'll see in a minute that fed officials think differently and a fed governor weighed in

yesterday saying if inflation and jobs reports indicate the economy is still running exceedingly hot a strong case can be made for a 50-basis-point hike in march. data today showing the preferred gauge hitting fresh 40-year highs in january with the headline of 5% consumer spending strong though americans dipped into savings to make ends meet and could bring help on inflation with some demand destruction but the momentum of the economy and the belief that the ukrainian situation will not slow it much. probably to keep rate hikes on track. president barken saying i don't think you'll see change that rates need to rise another president saying 25 base i points is the right call san francisco president daly saying raising rates four times

would be my preference normally the fed might respond by slowing the plans to hike but inflation is boxing the fed in leaving little room to change sides. it is hiking into a good economy that is expanding and where jobs for the moment look to be plentiful. >> we get a lot next week, steve. some ism coming and powell and jobs number a week from today. >> going to be a busy week, carl we'll get i think for sure from the chairman some maybe more definitive direction with the comments from fed officials. you know the old rule. when in doubt listen to the chair. >> thank you. >> for more on the action, we're joined this morning by morgan stanley private wealth

management katerina and chief strategist jeffrey happy friday to you both katerina, there's discussion about the market efficiently priced in the uncertainty of geopolitics and left with concerns. >> absolutely. carl, as someone born and raised in ukraine, this is just unthinkable and heart breaking situation. as an adviser i encourage the clients to focus on the portfolios specifically we need to understand that this is a risk it does not discriminate we saw it in early trading hours yesterday. it is unpredictable but affected the sectors in a good and bad way and we trade into it we see it as a great buying opportunity.

we have been talking for manies of derisking the portfolios, increasing the yield focusing on quality and this is an opportunity to add the sector that is you really should be owning right now like health care, financials, industrials. sectors that have strong buying power because that's what it will take. it's a bumpy ride. >> interesting so many years of investors conditioned to buy the dips. can they be retaught how to buy the rips >> volatility is going to be higher than what we are used to and discipline is important. we know that sanctions are where the potential for economic disruption from an invasion is likely to come from and we have clarity on sanctionsmeaning that the backdrop is unlikely materially disrupted back to where it began which is like a period of tightening

financial conditions and elevated inflation while we believe that inflation will come down this year and the fed likely to do three or four rate hikes we think it's an environment of volatility is high and the conditions continue to weigh on the stocks with higher multiples >> jeffrey, we heard from steve talking about the fed and curious your thoughts. higher energy costs. supply chain issues that may not get resolved quickly as a result of the current conflict. does it change your view coming to inflation >> i don't think we'll see supply chain disruption from this this is different than china to invade taiwan with massive supply chain issues. i think in fact we could see shortages turn into gluts fairly quickly looking to the second half of the year and bring down inflation and the prospects for aggressive fed tightening.

>> and katerina, do you think this is going to be quite a temp temporary affect on the market >> i think we have to wait and see but i agree with jeffrey 100% as disturbing as the developments are that they take a backseat to what we see in the markets. the fact that inflation at the high to the fact that seeing the markets slow down and the early traditions are not really kind of keeping up with the slowdown and we hope that later this year maybe in four to six months to see a normalization but without a doubt this is a stock picker's market and where investors need to look at quality and valuation and be conscious of what they own in the portfolios because this is challenging markets to realize good positive performance but it is possible.

>> cat ritkaterina, it is morgan we would like to get your sense of things and if you do have family still in ukraine we are sending prayers to them, as well. >> morgan, it is unbelievable. just, you know, unthinkable to see that my beautiful democratic, very proud country is under such attack and unequally matched and hoping for a diplomatic resolution and hoping that the peace of people of russia and ukraine prevail and going to be a diplomatic resolution to it because it is heart breaking to see this happening. never thought this day and age is something to see. very disturbing. >> yeah. i can only imagine very hard to sit here and watch it as an american playing out

right now. just to wrap this up, jeffrey, the sanctions starting to hear of pension funds with russian assets could we see a rebalancing here? what does this mean for the international investment options that are out there >> i think that certainly there's some -- russia assets plunged. russia dead trading at 50 crents on the dollar. russia makes up about 3% of em index and having an impact there. i think europe is less likely to be as dramatically impacted as some feared. pent-up demand and now the avoid dance of sanctions actually paints a relatively positive backdrop for europe. the composite pmi a six-month high ahead of this invasion.

we're seeing maybe potential for disruption i still think you might see outperformance there for europe. >> i wonder if you agree, katerina prior to this we were looking at huge electricity bills huge drops in disposal income in the uk we know how vulnerable italy and germany is coming to energy security does that affect your view of european assets to performance >> europe is behind us in terms of post-covid recovery and doing a great job and we see recovery and improvements in that area so looking at valuations of european stocks there are attractive opportunities there andwe think that despite a ver clear challenges that europe is still facing and agree with jeffrey to look at the sanctions

but we believe there's attractive valuations in europe. they look promising and our position is to increase our own exposure in europe because we think that there are some great buying opportunities but like with everything we have to be selective and careful and instead of buying broad market indexes we have to focus on the selection and zero in on the specific sectors in europe. >> interesting thank you for the time try to enjoy the weekend. we monitor the latest from ukraine. a chop here today as we trade on both sides of 4300

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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 we're taking a look at a lot of the big bank recovering after yesterday. a buying opportunity a guest said joining us is analyst gerard cassidy. always good to have you on and back. >> thank you. >> yeah. any impact at all amongst the banks, not necessarily the stock prices but the operations in terms of sanctions or may or may not be dealing with coming to russia >> david, i don't think so certainly some of the global banks like citigroup or

jpmorgan, goldman sachs, may have some exposures here coming to the global sanctions but the regional banks do not and the regional banks have been the preferred way to play the banks because of the interest sensitive and the expected rise in short-term interest rates and the actions by the federal reserve. there's really we don't believe direct impact to the operations of global banks. >> yeah. that 2% yield on the 10-year probably will have more of an impact i assume most of that you see as a positive >> spot on the expectations might be shifting that the fed may not be as hawkish on raising short-term rates. a steeper yield curve would help and most investors since last

year starting to pile into the banks was the fact that the fed was going to raise rates three to four times and what we have in our models and some people expect and maybe still are upwards of six to seven times this year which we think is extreme talked about as recently as a week ago. >> i want to go back to the sanctions piece where the big banks are concerned. headlines are that sanctions could hurt citibank. in general, are the big banks here in the u.s. well prepared to navigate the sanctions? if we were to see s.w.i.f.t. come into the equation how would that change the conversation >> certainly involved. no doubt about it. we know that we don't know the details of the sanctions and the impact to have on the global banks but, morgan, taking a look at total poir for

citigroup and other big banks they'll navigate the challenges. they all have plenty of liquidity and well versed in moving money around the world, particularly citi. and certainly they have the safeguards in place and they plan for these types of events you have to understand as part of the stress test our banks go through a serious stress test with the federal reserve they'll execute on the memergenc plans if the sanctions go through. >> as you're surveying the landscape, what is more important? expense control and leverage or rate sensitivity does it lead you to wells in

both cases >> it's a great question and zeroed in on the interest rate area, asset sensitivity is the most important for the banking investor today the banks have seen rises in expenses due to the labor shortage and the compensation increases to pass on to their employees and to your point wells is asset sensitiveand a big cost savings plan in place and i would highlight another bank that fit that is description which is bank of america. we have to remember prior to the pandemic moynihan their ceo is focused on managing expenses and in 2015 through '18 bank of america's expenses were flat now that covid caused the problems to go higher but 2022 bank of america is expecting flat expenses so you're right. wells is probably top of the

list and followed by bank of america. >> interesting why that reaction particularly after the jpmorgan numbers. thank you. always a pleasure. >> you're welcome. thank you. the nasdaq has been erasing what was more than 3% drop from yesterday. in fact, it was a 6.8% delta from bottom to top yesterday pretty amazing hadn't seen a day like that in almost two years top gainers for the week led by the likes of mercadolibre. we are back right after this 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

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dow session highs up 350 looking at the etf spotlight on energy today pippa stevens has that for us. >> energy in focus oil prices under pressure after sanctions from the u.s. so far not targeted russia's energy complex. president biden saying yesterday that energy payments will continue russia, of course, a key supplier to europe today's move a day after crude

surged $100 for the first time since 2014 nothing on the supply front changed and one trader said yesterday's move was about panic buying but looking forward the consensus is not whether oil goes higher but how high it can go we hear calling for 110, 120, 130. can't forget about the iran nuclear deal bringing barrels back immediately and change that upside calculus. looking at how this impacts the energy complex the xle in the green. occidental, chevron and devon up better than 2% for the week the sector is still in the red clean energy outperforming this week higher and volatile oil and gas prices makes renewables look more attractive. morgan, back to you.

>> makes sense talk about it. pippa, thank you. after the break the geopolitical fallout from the invasion of ukraine and what about supply chains? hawk carlisle is going to join us next. with the dow up 342. don't go anywhere. ♪ ♪ 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 ♪ ♪ i call it.... the wheel. ok, this is a miss.

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all right. exchanges in moscow about to close having lost more than a third of value this week this of course as putin tells chinese president xi jinping that russia is willing to hold high level talks with ukraine. hadley has the latest of fronts. hadley >> reporter: good afternoon. i want to start with the last 48 hours on the russian front if you will coming to negative comments

about the invasion over the last 48 hours seen some 1700 people detained by the russian police for protests in as many as 50 cities across russia including moscow. apparently or allegedly 900 folks detained by police in this city alone according to a rights watch groups told that any comments that are negative about the invasion could be seen by the kremlin as treason so something to keep an eye on there. waking up this morning on the streets of moscow didn't see any pushback on the streets. no signs or protesters you have to wonder if the kremlin clamped down on the movement and opposition to the conflict in ukraine. also of course take a step back and remember when speaking to vladimir putin last year i asked him about protesters and the

kremlin's take on it what scares you so much to arrest them? his answer to me was i don't arrest all of them within the framework of constitution but the framework of the russian constitution is open for interpretation xi jinping and vladimir putin with a phone call and the chinese president giving support to russia's actions. president putin trying to justify the invasion saying it was necessary to protect russian people from genocide it seems as if the chinese president seemed to be going along with that and seen wires crossing some too many minutes ago saying that the chinese state-backed banks will not extend letters of credit for russian commodities. the foreign minister of russia lavrov is expected to go to

geneva to meet with his u.n. counterpart. we have seen volatility in the stock market the mox down yesterday and today bouncing back right now bo 17% for the day and folks behind the scenes essentially saying that the markets themselves are used to the idea of volatility on the horizon and the economy minister saying today it was essential to get a handle on the sanctions for russia long term. >> it is a key question and seen the record moves in russian markets maybe for the stateside folks, you have been following this so closely for so many months probably the most vetted person for the interkconnections and playing out in the region. you talked about the

relationship of russia and china but there's interesting bedfellows seeing nato members meet this morning and the mobilization between the u.s. and europe israel and russia. turkey which is a nato member with interesting ties with russia as you mentioned china, too. but there's some alliances potentially dare i use that word shaking out that are unexpected. >> absolutely. there's so many moving parts to the story. sitting back and think about this more broadly on the european front i spoke to the new chancellor of germany saying we want peace, part of the dna as germans but this is about energy security and whether or not nato members have essentially sold out european security for financial gain because they have been the ones at the forefront asking for

russian gas and something donald trump attacked nato members with in 2018 saying why are we financing nato when you guys are essentially selling security down the river to vladimir putin coming to the energy needs and taking a step back look at turkey. they're in the middle of east and west and play both sides and the middle and had a difficult relationship with russia and didn't stop them from purchasing the s-4 missile defense systems. when it's coming to the crux of the matter it is interesting ukrainians saying you have to close the strait and said we have not going to do that and didn't want to get in front of it in a way to frankly upset ukraine or russia or their nato allies

the turks have to play both sides to the middle and then for opec plus. i had a chance to speak with opec ministers last week the uae minister said we have no indication of an invasion. lots of questions for the opec plus relationship because that partnership is essential in balancing the market and moving on the united states the biden administration have had a lot of difficulty in talking to opec over the last year or so. >> thank you for the latest. joining us now retired four-star general air force general hawk, industrial association ceo and president. general carlisle, great to see you. a lot to get to right now but first as we see more u.s. troops

and equipment deployed to the region, there's a strong line in the sand about involvement in ukraine but how should we think about preparations, resupply missions, deterrence efforts in the region more broadly? >> morgan, it is great to see you again. thank you for having me on and appreciate the chance to talk about this the movement of forces of nato is critical and important and making the right moves we have nato alliance with common parts and organic supply capabilities so the inner operatability is a key component of that. the supply chains today, the energy costs that, transportation disruptions, obviously the volatility due to the russian incursion into

ukraine, inflation is going to be a factor. so supply chains are strained before and now going to be strained even more but the moves into the eastern flank of nato and critical at the right time. >> i want do get into the supply chain piece of the puzzle and national security here in the u.s., but first, we were talking about the relationship between russia and china someone who spent a long time securing and protecting the pacific, how do you see that read through playing out where there seems to be focus on how closely china is watching this and whether it could help to inform a future template of taiwan. >> yeah. so i think china, chinese communist party is a huge challenge going forward. we know that russia and china just signed an agreement to work together but having said that china's

got -- part of the global economic system. size of the economy so they -- it hurts them. tremendously so they eesh going to try to figure out a way for a win-win to degrade the west and u.s. and nato in particular and same time not hutting their own economy with this relationship with russia that's a tight rope to walk and tough for them i think it will eliminate ideas they have about securing their own supply chains and energy capability through the south china sea so china's the part that is really a challenge i think for this administration, for the united states, for the west because at the end of the day they're going to support russia they have blamed us for this as you talked about earlier but at the same time they got to

protect their own economy. they have 1.5 billion people to feed and protect the economy and this is going to affect them significantly as well. >> just to bring it back to the supply chain and the u.s. industrial base you mention the supply chain issues. seen that playing out with the defense contractors and quarterly earnings as well how would you assess the health and readiness of the industrial base and operating on a continuing resolution? we see increases in defense spending in the u.s. but haven't seen the 2022 budget appropriated yet >> that's a huge challenge budget stability and acquisition to buy things are the primary two pain points for the defense industrial base and there's an annual report on the health of the industrial base and this year for the first time it was not a passing score. it was in the 60s. a lot of that is driven by the

pandemic accelerated and highlighted some challenges and it is not the companies but the environment they're operating in i think the fact that we are still on a cr is horrible. it degrades the national security significantly if you think about it, the part that people fail to realize, you'll get the appropriation eventually we're five, six months down the fiscal year before we get it that's time we can't get back. you can't make up the lost time. crs are a critical challenge for the department and the defense industrial base and it will affect the ability to continue to move forward on national security against challenges from russia and china. >> general carlisle, thank you for joining us today. >> great to see you again, morgan thank you. we'll have more on ukraine and russia in a bit but we have corporate news this morning including ceo of intuit as the

sharings slip following results. i'll get a breakdown of the mo 4ers and more with the dow up alst00 and regret the things we didn't buy? (camera shutters) or the places we didn't go. ♪ ♪ (rhythmic electro rock music) (crowd cheering) - bito, bito, bito, bito! - [announcer] bito, the first u.s. bitcoin-linked etf.

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it is a volatile week for crypto as investors continue to watch the conflict in ukraine. dom chu has the latest in that space. >> does it make it a safe haven trade? traders are trying to figure out with bitcoin and others are inflation hedges if you look at bitcoin prices they have tended to move more almost like stocks and maybe not like some of those safe haven trades bitcoin up to 39,300 that's a place for a while and reasons to go into safer haven trades gold prices acting in a channel type range for a while and just

see as the ukraine tensions started the rise and with the invasion we have seen a bid for gold prices with a safe haven. compared to each other a slightly shorter time frame what you can see is more of that kind of divergence happening with the white line being bitcoin prices and the gold line being gold over here. that gap is widening out and maybe the status is gold for a while and then if you do look on a relative basis bitcoin acts safer from a price volatility standpoint than the smaller tokens and currencies out there. bitcoin down a percent and a half over the last week. ether prices down 2.5% so it's all about that relative trade. back to you guys. >> all right fascinating week thank you. coming up, don't miss the ceo of vm ware we'll break down the results as

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shares of intuit lower this morning despite strong full-year guidance like a lot of other tech companies the platform is seen the share price tumble book has seen its share price tumble. joining us is intuit ceo, welcome back you have been pretty clear about the quarter in your preannounce, mostly about the seasonality of tax season coming a little bit later this year. can you kind of explain why that's happening >> yeah, sure. well, first of all, thank you for having me, and as you said, we reiterated 26 to 28% top line growth, and really what we experience is just a shift in tax filing from our second quarter to the third quarter the great news is everybody has to file their taxes by april 18th, and i would tell you in my 17 years in the company and having run turbo tax for three years, you know, we've continued

to see a shift, consumers filing their taxes later and later in the season because now they can. you have digital platforms like ours that are available, and now you can have access to expertise for virtually from wherever you want it, and more and more folks just simply feel comfortable to file later in the season that's really what we're seeing. the great news is based on our own analysis, our early season data tells us we are actually taking shares so we're pleased with our progress so far. >> that's interesting. they don't need to prepare that much in advance given the productivity tools does any of it relate to increased complexity, crypto earnings, things like that >> not really. that's not what's driving the shift to the right i mean, if you just sort of look at a graft over the last, you know, ten years, you continue to see more and more folks shifting when they do their taxes and particularly doing their taxes the last couple of days in april. with that said, we do believe based on all the data that we

all see, there are so many more folks that are either self-employed or made investments in whether it's stock or crypto, and we've actually revamped our whole experience with experts that really actually understand both stocks and crypto to help our customers, you know, in these times where they're wondering what's the implication on my taxes. but we don't believe that's driving the shift. it's just consumer behavior. >> so i'd love to get your take on this ongoing effort by elizabeth warren, senator warren to have the irs give people the power to actually do their own taxes with their own information. she tweeted, again, thcis was going on during the summer and more recently, intuit increasing profits, the government shouldn't be relying on private industry to provide essential services the irs can and should create its own free tax preparation and filing system. what's your response to this

effort >> well, first of all, we are big believers in voluntary taxes. we believe that every consumer should be able to do their own taxes and/or if they need an expert to help them, they should be able to do that we also believe that those that have simple filings should have the ability to file their taxes for free, so we are big believers in this effort and in fact, have invested in really proposing that the tax system should be simpler, so more folks can do their taxes we believe that the irs should really focus on, you know, the benefits and administrating the refund versus, you know, in essence doing people's taxes nevertheless, we are very comfortable with however it turns out because our belief is consumers have access to doing their taxes across private industry many for free. and there's also a belief that consumers want to do their taxes themselves and have control over their refund, and their deductions, and so that has been our belief for years we're big fans of voluntary

taxes, consumers know the story of their life better than anybody skelse and they should able to control it. >> the federal program lets some americans use a free version of your turbo tax software. why did you choose to do that? >> well, first and foremost, over the lasteight years, we have had over a hundred million customers who have done their taxes completely free. those that are part of the irs free file program do not have the ability to benefit from all of our innovation. they don't have the opportunity to then move on to use our credit karma platform, where they can in essence put their tax refund on the platform, and give five days early access to it we felt that, one f a consumer wants their taxes done for free, they can have access to free taxes anywhere they wish to go we felt there are so many benefits they are not getting if they're part of the irs program.

we pulled out of the program not only can we offer the same consumers free taxes but then we can offer them other benefits to really feel financial freedom for them, and we're proud of the decision, and ultimately our goal is to power prosperity for our consumers and this enables us to do that even more so. >> finally, we saw a huge surge in small business creation during covid, and i wonder if you think any of that normalizes as the economy either slows down or people decide this didn't work, i'm going to go back to the job i had or something like it before covid? >> well, you know, one of the wonderful things about the global economy is, you know, more than 50% of folks around the world that drive the global economy are small businesses, and these are folks that, you know, are passionate about what they do. they want to control their own destiny, and we actually believe that with those that were born after the smartphones and the

conversions of technology, there's going to be more and more folks that get involved in the creator economy, and those that choose to go into business for themselves we believe that this is a trend that will continue now, particularly for our platform, one of the things that we are seeing, which is a combination of the impact of covid and inflation, supply chain issues, we're actually seeing an acceleration to adopt our platform small businesses like large businesses are seeing that the adoption of digital tools allows them to grow their business. they understand how their business is doing, and it drives them to be more efficient, and we believe this will just accelerate over time >> you know, i am curious, i mean, your stock price has been nothing short of remarkable over the last five years. the latest selloff has been significant, paying for long-term shareholders i'm curious what you tell them, what your reaction is to what the market has been seeing lately, well off the highs of not that long ago, almost $700

>> well, i'll tell you, one of the things we always talk about internally is focus on the customer, and in fact, when the noise increases externally, the most important thing is to focus on our strategy, focus on our customers and, in fact, lean in and accelerate innovation, and it's really what we have been doing. at the end of the day, great results will super seed everything that's happening around you and one, we feel very good that our stock performance compared to many of our peers is actually in the top quartile, but then two, we're focused on the customers because at the end of the day, we can't control the market, we can't control the surroundings we can power the prosperity of our customers and lean in and more than ever we're leaning in across our platform, i'm proud of our progress and results and everything else will work itself out over time. >> you know, finally, i like to ask this of a number of ceos of

large companies, how many people do you have coming into the office how are you approaching that at this point in terms of your expectations for people being in the office >> well, first and foremost, two things are critical, certainty, as much as possible, and health. and so we actually declared in january that we are totally open, but it's opt in only so that's first and foremost secondly, about eight months ago, we declared a hybrid work environment, which means that we're enabling mission-based teams to decide when they need to physically come into the office, and ultimately when they can work virtually we believe in terms of teams having the capability to come together, scrum teams doing white boarding, ideating, but we believe there's a real value to being able to work virtually we are going to be declaring probably until the next 30 days, and you know, when we're going to shift from we're voluntarily totally open to when we want mission-based teams that decide when they come in and when they

work virtually to get to a new normal i can tell you that the couple of percent of our staff in some places, it's over 5 to 6% that are in the office. they tweet, they put on our slack channels they just love being in the office they have missed the human interaction, and frankly, the more you stay working from home, the more you miss and recognize that, you know, face-to-face interaction trumps a virtual world so that's our thinking as of now but health is most important >> yeah, understood. it's such an interesting subject. we could go on from there. certainly appreciate your taking time thank you. >> great thank you for having me. >> pleasure. as we take a look at a market that is performing quite well, certainly with the s&p up almost 1.3%, and of course we have talked about the reversal in the nasdaq yesterday. it's continued its upward surge, down 13.2% a year. >> it's been a whiplash week, david and to your point, now

with the moves we're seeing in the major averages, we're on track for gains for the week for both the nasdaq and nasdaq 100, dow transports, s&p 500 hovering below the break even line for the holiday shortened week i would note, aerospace and defense companies, lockheed, amid the russia political strength that's going to do it for "squawk on the street. tech check starts now. good friday morning, welcome to "tech check," i'm carl quintanilla, with julia boorstin the s&p is on the cusp of going green. russia is willing to speak w