good morning escalation in ukraine. russia attacking residential areas now of ukraine's second largest city satellite images show a large military convoy approaches kyiv. sanctions taking a toll on russia as economic ties with much of the world are receiver severed. and investors on edge. stocks set to tumble as we kickoff a new month of trading is it really march 1st fewer days in february it is tuesday, march 1st it's still 2022. "squawk box" begins now.

good morning welcome to "squawk box" here on cnbc we are live from times square. i'm rebecca quick along with joe kernen and andrew ross sorkin. if you want to look at equity futures, you will see there are red arrows dow futures down 78. nasdaq down by 90. yesterday, the nasdaq finished in positive territory, but not the s&p and dow. if you looked at the month of february, dow down 3.5%. the s&p down 3.1%. the nasdaq was down 3.4% by the way, all three of the major averages with the nasdaq 100 and dow transports finished down for two months in a row that brings the year to date losses to 6.76% for the dow and 12% for the nasdaq it has been a difficult year for investors so far look at the treasury market.

the ten-year yield at 1.739% continued bid tobuy treasuries. yesterday, we fell below 2%. it is falling further. crude oil prices did end higher. wti yesterday was up along with the highest settlement since august of 2014 you see it is higher this morning. wti trading at $98.50 a barrel. crude for brent is back over $100 $101.28. bitcoin taking off yesterday. it is up another 4.7% to $43,686. andrew >> fascinating finally made a move. we said it should make a move. now it made a move there you go, joe. >> i like your spin. if you listen to you closely,

you can make a lot of money. yesterday, you were implying if bitcoin was really worth anything, to russia, when the rest of the financial systems -- it should be moving. >> it hasn't. >> people are saying it should be it went up 20%. >> i don't think it was based on what i said. nonetheless. >> don't sell yourself short. >> thank you thank you. you would never. >> i would never >> now to the latest >> andrew ross sorkin. satellite imagery showing a large convoy about 40 miles long of russian vehicles headed to the ukraine capital. a analysts say it is preparing for a full assault on the capital with russia launching a series of rocket attacks. reporting under assault from the air. russian missiles struck a city administration building. and did you see bill ackman?

he is on twitter >> he is a hedge fund guy. medical expert strategist for global geopolitical tensions. bill, i know you got a lot of money. you are not secretary of state or defense >> i wasn't trying to take the conversation there there is increasingly a lot of people, smart people, who may not be -- >> i've seen it. richard engel. in what world do we allow innocence to be slaughtered in a convoy then the pollease protect our a space. you know what happened if nato and the united states were to go over and have a type ofconflic with the russian miig and we shot it down >> that is how it begins.

>> and already nuclear forces on high alert. >> the hippocratic oath is big do not harm. >> at the same time. it is heartbreaking to see videos and pictures coming out >> civilians. >> democratically elected government in independent nation >> i would never compare world war ii, you know who i'm talking about. if this guy is closer to that guy that's shall not be named -- but we have not seen aggressive action on the world stage since something like that. that is all we would say i don't want to use the "h" wo word this is nuts this next guy, steve liesman, reporting that russians

are rushing to withdraw cash the ruble has fallen against the dollar here is what i'm referring to. i don't know anyone else who lived in moscow for years and years who we can tap for the overall expertise about the fed and also, steve, you know about russia you are the only person i know who spent years living there are you are our senior economics reporting. steve, this was depressing today. that is that we can do a lot with the banks, but they've done a lot in terms of coming more domestic and not importing as much exporter of commodities. as long as they have $100 a barrel oil, we cannot hurt them as much as we like to. >> what do you do, joe you read my script and give away the story. you are very smart >> no, i didn't look at it

i know you speak russian >> yeah. i wanted to tell you that what i'm about to read comes from my experience the sanctions are hitting almost every atmosphere of strategy the ruble devalued air flights are canceled and visa and mastercard are blocking several russian institutions from the network. the sanctions with importing goods and trappings of western life to which many russians are accustomed will realize it is more expensive or unavailable. this is what i wanted to stress. a long way from the intense sanctions to ending the war. let's talk about what joe is referring to there are holes in the sanctions. russia earns dollars through energy sales $100 a barrel. the russian central bank has access to the foreign reserves,

maybe it is blocked off, but they can access through china. ordinary russians will feel little impact from this. no change in the cost of the domestic loaf of bread values on the ruble are worse than what they have been so far. ruble devalued in the great financial crisis and never recovered. fell 45% after the sanctions from crimea. fell 18% from the pandemic and now it is off 22% since the beginning of the ukrainian invasion russiahas been there before. these historic sanctions will hit a country where its people historically are used to immense suffering and leaders historically don't care. i talked to tom graham at the council of foreign relations in moscow when i was there.

he says this is a population that can suffer a lot and survive. they don't have the same expectation of their leadership as the same in the u.s. and western europe combine that with the brutal putin regime and sanctions that make russians suffer the question is the combination of dead russian soldiers and unhappy military to force change and little history of any of that happening in recent russia yrussia joe? >> it just sort of has a depressing feeling i think people don't have a lot. this is my own preconceived notion of russia i think it is not completely wrong. there is an unhappy feeling toward a lot of what is a much harder life than what we are used to in the united states they have their own s.w.i.f.t. system we can't just completely cut

that off it isn't going to work >> i think the russians are overplaying that a little bit. >> are we paying more for our bread? >> there is more inflation there is more inflation over there. the russians are like, you know, tell me something worse. when i was there, you go to work in the morning and snickers would be one price and you come home and it is another price how many of this has permeated into russian life? you get outside of the major cities and they are not living on and relying on and enjoying that western stuff the elite do travel and they have been able to travel that's going away. again, you get down into the rank and file of russian society and they are not traveling abroad it is a poor country, joe. the 11th largest country, but go

to 40th below american samoa with the gdp per capita. the elite have taken most of it. the leadership of russia has been, what is the word i'm looking for, denigrating or otherwise not caring, i want to use an expletive on its people, but putin doesn't seem to care it is not the question of can he stand the opposition, but he can ignore it. >> now back to the sad state of affairs. we can't boycott russian oil we can't that's the gravy train that he is able to fund everything with. we are not in a position to say we're not going to buy any oil the world. >> even if you were and take 10% of -- 10 million barrels off the

system and you end up trying to boycott russian energy -- the iranians got out, but they were a smaller country. somebody said they could produce half the oil and make twice as much if you don't do that. any price. >> 1$100 a barrel. >> what do you think exxon should do? >> that is the question i wondered david faber said they don't have as big of an investment. >> bp stepped away they have an investment. the connection with rosneft. >> i think the questions will swing to what about the other oil companies. what is that, steve? >> i was going to say what is interesting is who will buy it i'm not sure it benefits

anybody. what they do is -- what has happened now and this is unnoticed. a quasi nationalization. russians cannot buy the foreign assets that is a nationalization. if you are a foreigner and own a piece of the foreign company, the foreigner can buy it >> no foreigner can buy it right now. >> there you go. it is not for sale if they go to sell it, they will give it back for peanuts it is almost like benefitting the russians by that >> the world is like pushing back no longer putin. no longer the head of the judo

federation switzerland. we cannot say i'm switzerland. sweden >> russians care how they are perceived in the world i know you are joking about it with the judo thing. the soccer thing or football thing as they call it over there. that can matter. that gets to ordinary russians you may be in avi village outsi of a major city. they watch soccer. they care about the level of the ruble. it is something that is part of the national pride it was when i was there. they saw it decline and undermine the national pride i don't see how you get from domestic dissatisfaction to putin regime change. i'm not sure that is the purpose of the sanctions my point is it is a very, very long and difficult road. >> steve, thanks what did you say earlier in

russian? >> i said i speak russian. >> oh, that's what you said. >> he was there. he was the moscow bureau chief for the wall street journal. >> we should point that out so people don't think what i always kid about with you you are a plant. you are from no way out. you're the yuri of financial. >> my kids thought they grew up in the drama of the americans. that's what they thought when my wife and i wanted them to not understand us, we spoke russian. >> right. >> they still think that >> and it is getting far fetched. not that far fetched almost, comrade. when we come back, bank stocks tumbling over the last month. we will talk about the impact of

the russian sanctions on financials. and starting pay boosting to $24 an hour defenpending where jobexclusive interview with brian cornell you are watching "squawk box" live from times square >> announcer: this cnbc program is sponsored by baird. visit bairddifference.com. (rhythmic electro rock music)

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we did see major pressure on banking stocks yesterday after the sanctions were announced on russia there is additional pressure as well bank of america down 2.1%. other banks are down similar amounts. joining us is ken leon ken, the financial sanctions, obviously, the u.s. banks don't have as many ties to the russian commercial loans and europeans do is there a impact here and how do you make a difference with the european banks >> becky, there is most of the u.s. banks exited russia with annexation of crimea in 2014. the banking relationship through

europe with the italian banks and french banks with russia you have to think of the foreign corrupt practices act. assets control the u.s. treasury is going to be expanding trau traumatically. u.s. banks will become ply compliant. the other story is we had a clean economic recovery cast and banks are cyclical value plays we will do fine with stocks. this ratcheted the global economic growth. right now inflation is top of mind. >> issue is how the fed reaction to all this. does the federal reserve say we don't want to push into a recession. we tread more lightly? do they look at higher commodity

prices and say this is bad news because it is additional inflation pressure they he are p putting in the pipeline? >> the market has spoken the ten-year bond has come down. the fed, of course, has the inflation mandate. they can't lose sight of that. you know, the notion of the 50 basis point increase in rates is off the table. i think the narrative or the tone, which, of course, steve liesman will get to with the march 16th meeting, will be more concerned with the geopolitical risks with russia. >> you still have strong buys on most of the banks with the exception of jpmorgan chase with the hold does this change perspective are you thinking of those buys >> the banks again pivot to cyclical value trade they are trading 65% discount to the s&p 500. they have a clear path of rising

rates in the next two years. that is the bold case. and i'm worried about citi and the new ceo would wish they divested banks in asia and russia earlier $10 billion of exposure in russia stl they have investor day tomorrow. that was a great restructuring play anytime with u.s. banks, you play more weight outside of the u.s. where you see today is move risk >> ken leon, thanks for your time. coming up, airbnb will provide housing for ukrainian refugees my interview with the ceo brian chesky next. and tennis great serena williams will join us to talking stg. she has some news. "squawk box" is coming back

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welcome back to squawk." more than 500,000 ukrainians fled and airbnb is offering free housing. in an interview last night, i asked the ceo brian chesky about how this all came together >> when the crisis unfolded and we started realizing last thursday or friday, there would be hundreds of thousands displaced people, we went into action and really over the weekend, it was 24 hours working around the clock with a huge group. wereached out to governments i

poland and germany and hungary and romania and countries west of them to offer assistance. reaching out to hosts and secured funding. we are prepared to house up to 100,000 refugeerefugees >> when you say you secured funding. how much does this cost? >> it is hard to know. i put in millions of dollars into the initiative. i personally put in millions as a donor. other donors have. it is unclear. we don't know how many people we will house we will house as many as possible hosts have an option to host for free or discount or full price where we pay money is when it is discounted or reffree it is not possible it will be a substantial invest arement. >> we will have more of that interview with brian chesky in the next hour.

including his views on inflation and return to work taking a nice leadership role to do something to help these people at a serious time in need a lot of the hosts are doing it for are free which is cool >> it is good to see. >> i like the starlink boom within 24 hours. >> right >> elon musk target set to report we will bring you the numbers and interview with ceo brian cornell. big daparaesy y is doled out at target we'll be right back. >> announcer: executive edge is sponsored by at&t business keeping your business connected. ! so we're giving every business, our best deals on every iphone - including the iphone 13 pro with 5g. that's the one with the amazing camera? yep! every business deserves it... like one's that re-opened! hi, we have an appointment.

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welcome back target reporting out with earnings stock up 5.1%. the company with earnings of $3.19 a share. that compares to $2.86 the street was expecting a big beat, but you get to the bottom line the revenue number was lighter. $31 billion versus $31.39 billion. that tells you margins were stronger than and adve anticipad that say big deal. the company talks about sales up

8% that comes on top of the 20.5% growth in the fourth quarter traffic up by 8.1% on top of the 8.6% from the year earlier they talked about how more than 95% of the fourth quarter sales were fulfilled by the stores this is where target differs instead of trying to beat amazon and have the huge warehouses, it has been doing it from stores. it helps a lot of margins. it raises questions of the mix for the company as well. probably seeing more apparel and home sales over groceries. they have higher margin on some of the things they get back. >> what would you have higher revenue and margins squeezed with raised prices or come close on revenue and margins maintained and comps

comps on unit and price increases, i guess >> they are. >> if most of it is unit increase -- >> and doing with it traffic up. brian cornell was honored by the national retail federation in january and people read into the comments and made maybe they would see traffic suffering. when you have the country facing higher energy prices, you expect consumers to drop back or not take as many trips to the stores or consolidate like in higher inflation pressure in the past the comparable traffic up 8.1% >> that's a huge gain. 7.6% pre-market. what could come out as the morning goes along and we will talk to him obviously. there will be, i guess we will get an outlook what could dampen that >> people will -- look, i think

part of the issue with this is in the release, they talk about how they are expecting operating margins of8% or higher for 2022. that is a big deal the street was expecting 7%. notes on the street were saying it will be below 8%. they are saying 8% or higher that is a question for the retailers. what happens with inflation continuing to build and an issue in the pipeline. how do you control it? i don't know how target will control it, but fiscal 2022, they will have their arms around this target has been reluctant to give guidance because of the pandemic and so hard to anticipate they are coming out with guidance to talk about this now. that is why you are seeing a pop in stock >> a lot of times the company beat on earnings, but stock is down because revenue is light. look at the stock. crazy. it's amazing we will talk to him. >> we will

the company said all five categories were performing well. there were no categories that fell behind. my guess is the higher margin categories performed better than the street expected. they fulfill out of the stores as you mentioned, that stock up $219.20. we have the interview coming up with target chairman and ceo brian cornell at the top of the hour he is here in studio. >> in person >> that's exciting coming up, what to expect from the state of the union address tonight. that's next. and later, pandemic darling zoom out with those numbers. we will see if the ceo kelly steckelberg will talk about it as cases of covid decline. and you can listen to our podcast. i'm told the podcast is only audio. be aware of that is that true we'll be right back.

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welcome back u.s. equity futures are down, but improving a little great numbers from target. obviously that is not impacting the dow. down less than 200 points this morning. president biden will take center stage for the state of the union address this evening the agenda will cover many t topics, including the russian invasion of ukraine.

here to weigh in on how the war will impact the foreign policy and the legislative agenda is chris kruger, managing director at kowan research group. state of the unions are unique we don't remember them for very long, typically, chris we go back to the problems pretty quickly can you change the mood of the country, especially in times like these, can you change it with a really good speech, do you think, to make us feel better about $100 when we fill up our tanks things like that >> i think certainly president biden would hope he can change the mood we will see if he can can delivn that today, march 1st, the administration had about three months left on the legislative calendar we will see if the president can

re-brand the build backducing t devote half of the speech to ukraine and china and national security, et cetera. it is a very tall order. we will see how he delivers. then next week, right, we probably have another big peach speech with the pandemic with the two-year wto designation next week. >> chris, i don't know with the deafficit in mind and inflation and listening to joe manchin say i predicted it over and over for build back better the deficit. a lot of the deficit spending climate initiatives which are now, i guess you would not say the country is thinking of abandoning them, but a back burner mentality with the resurgence of the world's dependence on old energy it seems like a weird time to

deficit spend to transition to renewables at this time. that will not fly for build back better >> right i would be surprised if the president uses the term build back better tonight or ever again. it has been, you know, objectively a pretty failed messages strategy. what you could see, though, is the climate provisions, you know, sort of re-branded into the supply chain narrative and also getting off foreign oil you know, cuttingputin off at the knees with oil and gas, obviously, that is a much longer t t timeframe. the climate change from the political stand point is an issue for progressives who have lost out on the other provisions that are still circling in this sort of inflation

frankenstein-type bill from a domestic political consideration, yes, to your point, manchin is the vote of all votes. you still need to get, you know, the bill through the house if there is a bill, the climate provisions are likely to be included in that bill. >> the progressives are on the run, i think, right now. especially with 32 total now for democrats? >> talib is giving a response. >> i know sdp >> to the state of the union >> getting rid of prisons in ten years? where is son of sam going? we have to keep him somewhere. guantanamo bay i don't know chris, the fed with russia, fed may have to act more with the supply chain issue getting worse. people don't like when interest rates go up and costs go up.

especially when you deal with things more expensive. i don't know the mood. that is the point i was making that is front and center for people if inflation impacts a lot of people, we're fat cats we don't worry near as much. for average people, it eats into any raises that you've gotten the last two or three years. >> yeah, right adding into the catalyst-rich environment in d.c., we have two days with jay powell with the testimony before house financial services and senate banking tomorrow also in the midst, we have the historic supreme court nomination fight the next three months in washington not without a number of scheduled catalysts to say nothing of the unknown catalysts still to emerge. >> chris, can the arc of the

biden presidency be reset before the midterms at this pointgive i don't know how long this russia thing is going? it puts everyone on edge especially when we thought we had put mutually assured destruction. we thought we saved humanity from that 10 or 15 years ago apparently we did not. >> right again, you have the three-month stretch for the democrats to sort of reset and have any chance in the midterms first of all, retirements need to stop to your point. the 32nd the most in 30 years you get the supreme court nomination set and you get inflation to peak and then inflation report next week also. you kind of get some ktype of re-branding of build back better also today in washington, d.c.,

a number of other places, masks are gone do schools come back with some sense of normalcy, et cetera we will see with the covid speech next week or the following. there is a narrative it is also a challenging one and it is sort of for biden and the democrats to have any chance, it is error-free ball from here on out to have a chance because they are historically tight margins. there is a margin of zero in the senate and three seats in the house. >> yeah. things happen that you never think you would see. pandemic ending. it should be roaring '20s and now we're talking about the third world war. i blame putin for that i blame him for a lot of things. this is unacceptable and we just move from one crisis to the next, it seems like, in modern day life

it is confounding, chris can we say two days where my mask is off and i'm happy? we he can't. we are looking for something streaming across the sky heading for us >> you know, we live in surreal times. in particular, this two-year stretch. i'm hard pressed to think of anything in my lifetime like it. >> that's what i mean. all right. i've lived a couple of your lifetimes, chris thanks i can confirm what you are saying good to have you on this morning. see you again. before we head to break, let's look at the action companies are taking against russia disney and warner brothers and sony halting theater releases. russia accounts for 3% of global ticket sales netflix will not comply with the russian rules to carry

government news channels this is after a wave of russian state news has broadcast propaganda over the war. and shell will quit the role in financing the now halted nord streampipeline that is a day after bp would exit the 20% stake in the russian oil. and the ukraine minister says the starlink internet dishes arrived in the country yesterday. he said starlink here. thanks, elon musk. those arrived 48 hours after musk reported it all good news from corporate america. when we come back, the futures are pointing to loses this morning a little steeper in the last few minutes. dow futures down 230 points. s&p futures off 35

both of the indexes were down yesterday. the nasdaq finished in the green yesterday. it is indicated off 130 this morning. we'll talk strategy right after this break by the way, don't miss the interview with target ceo brian cornell. that stock is up sharply after the company beat on the bottom line light on the revenue, but m margins are strong they have guidance to be strong through 2022 that stock is up3% 1 "squawk box" will be right back. [copy machine printing] ♪

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welcome back to squawk take a look at futures they are in the red this

morning. nasdaq off about 133 points and the s&p 500 off about 40 points. let's talk with the managing portfolio manager and lots to discuss. we've got target news, "state of the union" tonight, jay powell tomorrow and of course ukraine is hanging over all of this >> you don't do anything right now, andrew. at this point if you've got your allocations set this is the worst time to panic, reduce equity exposure. if you've got extra cash i think there's extra opportunity, but otherwise you stay in your allocation i think there's a lot of unknowns but we've had a lot of unknown the last couple of

years. >> are there just locations where you say there's opportunity, something's amiss and there's actually great value? >> yes, so i would look at it a couple of ways one is what is going on in russia that has affected the rest of the market obviously when you've got leasing companies and companies that have huge exposure in the consumer area those have some dislocations that could have longer term consequences but look at other areas. why are some of the u.s. banks selling off when they don't have rilt russian exposure and very little european exposure look in the cable and media area like comcast or charter. those should not have sold off so you do have opportunities that have come down in the market and they are not going to be affected as much as some of the things going on in europe.

european product companies, there's going to be some sorting out to do every there. there could be some value over there. too early to tell. >> is there anything you think hasn't sold off that should have >> some of the other areas there, yeah i think there could be potential there not just because demand is going to be kried but supply costs are going to go. >> you mentioned a number of names you said shouldn't be impacted but are being impacted.

part of that i imagine must be part of the fed story. >> comcast is not a multiple compression issue. that is more of an issue of what is going to be the cashflow of growth going forward and interest rates don't hurt it as much as the high growth pe companies. we do fear once you get through this, and it's very hard because we're right in the middle of this hopefully we do get through the ukraine crisis, and then you'll see the fed come into play you'll see it tomorrow and then interest rates will come back, what is happening with the economy. so we're being very careful. we're not chasing high multiple stocks here, even multiple stocks with cash flow down the road, you just have to be

careful here because the market is already set or starting to reset before the ukraine crisis and now you're going to be focused on growth. now you've got something new here it's going to be even more of a stock picker's market or where are we going to find opportunity in this market >> what's your take on target? we're going to have the ceo on in just a little bit with becky in just a moment >> you know, i think it's what we expected. the consumer is still pretty strong balance sheets are, again, rock solid and the consumer wants to spend. and we're seeing that so much of that is also where is the money going to go to that's another thing to watch.

the targ was impressive and contained costs pretty well. >> what do you think of travel right now? that's the other reopening play. does the situation in ukraine change that dynamic? we were talking to the ceo of airbnb about that. >> the consumer is ready to do the revenge travel delta sold off pretty hard yesterday. i can see the leasing companies because we have exposure in europe and other areas, but i think that can be an opportunity because you have demand there we didn't have the last couple of years i think amex in that area is goingto be good, too as,

corporate travel comes back. >> what do you do about energy >> they've had a great run and been out of favor. as you know a couple years ago no one wanted to touch them. we've been overnight energy. we're not adding aggressively to it what you just saw we're not energy independent in the world. and maybe you take some profits off the table if you're exposure is too high, but i think it's an important part of the portfolio. yeah, you've got some momentum behind them and fast money in there, too, so just watch your position size, but i think energy is going to be an important part of your portfolio as well as making sure you've got other things going to be energy independent >> bp today off about 1.68%.

that's in part given this disposition they're going to be disposing of the stake in russia you now have pressure on exxon to do the same thers a question mark whether they should, whether they're going to effectively going to sell it for a song back to russia and that doesn't help anybody. what do you think these western oil companies should be doing? >> i think it's -- it's a very difficult time for all companies at exposure that have investments in russia at this point. so i do think the tock market will punish them in the short-term, but longer-term these are pretty manageable. and if oil stays about $80, it is hugely profitable for these oil and gas companies. they're really cut down on their expenses their operation leverage is huge i think if oil stays above $80, which it looks like it's going

to given the demand going forward and the inflationary pressures i think it's the right to do. the balance sheets are in great shape compared to where they were two or three years ago. >> thank you for your perspective this morning just after 7:00 on the east coast. you're watching "squawk box" on cnbc i'm joe kernen along with andrew ross sorkin and becky quick. including brian cornell, tennis legend serena williams, marco rubio, and the cfo of zoom, and looking forward to serena. told you about the sag awards. you saw will smith she's a producer to some extent of "king richard" i think, too >> yep great film meantime want to talk about the latest out of ukraine. the president there just finished speaking to the european parliament. he said nobody will break us

the day after he signed an application for eu membership and accused russia of targeting ukrainian children meantime sal lite imagery showing a large convoy about 40 miles long of russian military vehicles heading towards ukraine's capital. analysts say it suggests russia is preparing to launch a full-scale assault on the capital. >> the conception of a 40-mile long convoy. i don't even have any conception of that. sad. new data shows the pfizer vaccine is less effective in preventing infection in ages 5 to 11 than it is in older children and adults. the data collected in the omicron surge showed the vaccine still prevents severe illness in children but offers virtually no protection against infection researchers and federal officials who reviewed the data said the sharp drop in

performance may stem from the smaller dose, maybe. there's all kinds of factors you need to factor in before you make the determination, because that age group it's just one third of the dose that's given to older children and adults the immune system is still -- it's the -- maybe the wonder of the universe >> by the way, we're down to 1.02%. that's pretty great. >> it is great >> the question is, though, do you believe that by the way, that's the other thing. because those are the tests that get registered with the state. and you never know now if everybody has a test at home or is the pcr test representative of what is actually happening out there anymore? >> i think in hindsight we're going to look at omicron as a very positive data point in the entire pandemic.

triple vaxed and have you had it, and omicron -- you do not -- unless you have some underlying condition you have nothing at least in my case nothing foofear if you're triple vaxed and you get omicron. >> we have all these conversations about pfizer's therapeutic. >> what happened there >> i assume they're still making them but the idea you would have them in your bathroom cabinet and when and if you got covid you'd just take them and we'd all be waiting for the production of them you don't hear that conversation happening anymore. >> i think the other sort of ironic thing did we ever sign contracts for those half a billion free tests >> we have those tests >> you got some? >> they were like ihealth or something like that. >> i just don't know the administration followed through on that because within a week it

became moot. >> by the way, have you read that the next version or variant of omicron there isn't one -- it doesn't, though, work for the current test nonetheless, let's talk about some business news shares of zoom are lower, but the current quarter revenue guidance came in lower, also disappointing the street the company cfo is going to join us in just a little bit 8:50 a.m. eastern time this morning >> coming up right after this target chairman and ceo brian cornell on the company's latest quarter. we're going to talk about the strength of the consumer, inflation and much more. by the way, check out the stock this morning as reaction to what we've seen with those numbers. and senator marco rubio will

talk about congress and wh'sat in response to the war in ukraine. you're watching "squawk box" and this is cnbc

your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire target out with fourth quarter results just minutes ago reporting earnings that came in

above the street's expectations. revenue did come in below estimates, but the company saying it expects sales growth to continue in 2022. maybe more importantly it's talking about operating margins also continuing and looking very strong this year, 8% or better joining us now to talk more about it is brian cornell, target's chairman and ceo. thank you for being here today >> becky, it's great to be here. i've lost track of the number of times you and i have talked over the years. i know we were together six or seven times during the pandemic. waking up this morning to the headline of continued attacks on ukraine i realize target's results aren't the only topic but i appreciate you taking the time to talk to us >> i think that's because you came in with earnings that were so strong despite the idea revenue was a little lighter than the street was anticipating that's speaks about the margins and what you're anticipating first of all, how do you keep the margins high when sales came

in a little lower? >> the in fourther our sales were up 9% on top of 20% from last year, and we had a nice balance from store sales and digital sales, but it was not driven by traffic, and you start looking at the benefits and the full year comps are up 12.5% on top of almost 12% last year. in the last two years we've added almost $28 billion to our top line and you start seeing the benefits of scale in our business, the fact our stores account for 95% of our digital sales, so our store productivity is just getting better and better over the last couple of years the average target store has added $15 million in sales our $5 million stores are $75 million stores and they're

accounting for 95% of our sales between physical and digital so the benefits of our store as hubs model is really starting to pay off in grating procativity >> is that because of the digital salesing come in >> it's coming from our stores whether it's the great growth we're seeing, and over the last couple of years we know consumers love the fact they can place an order, pull into our parking lot and a couple of minutes we put it in their trunk. but the stores are driving fulfilling those orders. so we're just seeing the efficiency of our model for stores physically handling that interaction with our guests but also the digital side, but we're getting more efficient, more productive and that's flowing through the bottom line. >> the company has not given guidance in the past couple of years for guidance look at a longer-term algorithm

plan i think one of the key metrics is that you're looking for operating margins to be up 8% or better for the rest of fiscal 2022 and that's pretty significant when you consider the inflationary picture out there and the idea you all are investing pack more with higher starting wages, up to $24 an hour in some places. how do you manage that and say you can do this thipt? >> i think the headline is woer a growth company and we'll continue to grow in 2022 and beyond and we'll continue to invest in growth that scale benefit, we're now $106 billion retailer. it was only yesterday, five years ago we were a $70 billion company. we're a much bigger, stronger company today. we've got scale efficiencies, and we're getting better and better at really honing our model. so that gives us confidence we're going to tone to deliver great income and reward our shareholders because we're going to continue to invest in growth.

we're going to continue to invest in our team, make sure we're there for the guests you know, under all circumstances we're a growth company and we're going to continue to invest in the future we're going to invest in more remodels of stores and more new stores and ininvest in capacity. but we're going to invest in growth and along the way continue to invest in our team and the investments we've been making for years now they're the ones connecting with our guests and fulfilling those digital orders >> but in terms of operating margins being able to do that, part of it has to be size. you're a bigger company so i guess you can throw your heft around a bit more and you do get the benefit of volume. what specifically do you see that makes you so confident about these 8% operating margins? >> it gets back to the productivity in our model, the

productivity in our stores and the greater efficiency and that gives us great confidence we'll be a kemp that grows in a profitable way for years to come >> are you paying more in shipping right now are you paying more for just the value of the goods coming in the doors sph. >> certainly we're all dealing with inflation, and we've made a commitment to ensure we continue to offer great value to our guests we're seeing inflation from an international standpoint but also right here with domestic goods. we recognize there's still challenges with cost inflation the supply chain bottleneck, it's going to take time for that to unwind. we've shown ability and demonstrated in the fourth quarter to be agile and flexible and make sure we can deliver great value but also ensure -- our price position in the market is one where we're taking care of our guests and offering great value on everything from

household essentials to ones we know our guests are watching every day. >> the fed has to watch closely when it comes to wage inflation in particular. these announcements you're going to be paying up to $24 in some places and improving health care benefits, too, where if you're working $24 a week you can get health care benefits is that competitive of the environment? >> i'll go all the way back to 2017 where we said at that point we hadded to make sure we had an industry leading but i look at the importance of having a great team in place and making sure we're taking care of our team. the announcements we made this week another $300 in investments and benefits is a by-product of talking to our team, making sure we're a preferred destination and we have great retention and we have teams in place thatlov working at target and love to take care of our guests, and we

knew benefits were important our new plan allows our team to have access to benefits if they work 24 hours a week, and that combination we can support that growth and we've got a team waking up every day really ensuring they're part of our culture, a culture we talk about caring and winning and growing together and that combination of wanls and benefits and culture, i think it's a point of differentiation for our company. >> how different of this is a hiring market for you? >> i think because we've been so proactive, we have not had a problem. we exceeded that number. we said we were going to add 30,000 people to our supply chain system, we've exceeded that number. i think it's because of the type of culture we have in place, the environment we created and a leading position with wages and now benefits, so our turnover numbers are actually down versus

pre-pandemic, and i think it's the kind of culture and environment we're creating, and that's going to fuel and spark our growth going forward >> you're going to be speaking with investors and give updates. some are mid to single digit growth to total revenue, versus last time. total revenue is the change here and this is something i didn't realize. you have a media company and ad sales company, and when you start including those in the numbers at this point it starts to make a difference >> it is our target media company, and we started it a few years back i actually remember signing off on our first five team members we now have 500 in the u.s. than in india, and it's a business as we talk about later today has generated revenues in an incremental number it complements the work we're doing in our stores, growing our

store base, building and adding new stores the continued growth we'll see in digital and most of that coming from same day services. and now things like rondel, shipped, target plus all providing incremental opportunities for revenue growth >> when you talk about an ad sales keim, what does that mean? you're working with vendors like a proctor and dpamal and trying to connect them directly with target customers am. >> we will, absolutely so very personalized and making sure when we talk to the guests on behalf of our vendor partners it's relevant information. so we'll talk about that a lot today, but it's a great new platform to make sure we continue to deepen our engagement with our guests and provide greater top line growth opportunities for target >> what have you seen from consumers so far just in terms of them reactingto inflation o higher gas prices, them reacting to coming out of covid how have things changed? >> one, we're watching it really carefully, almost day by day right now. i think what we've seen over the

last couple of years is an incredibly reviliant american consumer and you look at some of the things happening right now, there's still concerns about covid, and americans want to get back to some sense of normal life they're watching and looking for value right now, but they're also looking for newness and experience we see it all the time in our business there's a consumer worried about inflation, but they've got a pretty healthy balance sheet right now. i think it's a consumer well-positioned today, but we've got to watch each and every as we go into march and april, and we start to overlap last year's stimulus and child care benefits, we'll be watching day by day and week by week to see if there's any change in the consumer environment >> the comps are going to get more difficult how do you plan for that what are you expecting >> i think it gets back to the benefits of our business model our multicategory portfolio. in q4 every one of our major

categories saw significant growth rates and we continue to take share as i look to the future we're going to grow because we're going to invest in our stores. we'll build new stores, invest in our digital channels and invest in our team and i see significant market share opportunities. so our guidance for next year and beyond is we'll be a growth company, and in the outyears you should expect middigit growth and also on our return on investment capital guidance, and it's a highlight for me to see roic in 2021 grow by 23% you should expect to see a mid20 to 30% roic which to me is industry leading we're a very different company than we were a few years back. we certainly had growth going into the pandemic. in fact, 11 straight quarters, now we grew eight more quarters

during the pandemic. and that's going to continue because we're going to be a bigger more relevant and invest in the team. >> the investments you started making five years ago started paying off dividends i want to thank you very much for being with us today. >> always good to see you. >> brian cornell, again, the chairman and ceo of target >> give our best to brian. when we come back, lieu lucid shares down sharply after the company slashing its production outlook. we'll have more on what the company said before we head to a break take a quick look at the markets. we are in the red. s&p 500 looking to open down 'rrerng jt nts. wee tuininusa moment

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meantime satellite imagery showing a large convoy about 40 miles long we were just discussing, 40 miles long, joe, of russian vehicles heading towards ukraine's capital. analysts saying it suggests russia is preparing to launch a full-scale attack on that capital. a five-hour face-to-face yesterday. officials looking to schedule a second round of negotiations in the coming days. pretty remarkable. 40 miles >> that's remarkable but it shows the resolve he's going to do this, and i don't know what the world looks like at the end. are we so -- do we forget things so quickly six months from now we're going to assume it's georgia and crimea it seems different this time it seems this is not going to fly with the rest of the world >> if it's not going to fly the question is what would you do? >> i would hope he would do something, i would hope the people listening to his orders eventually would do something. >> 100%.

the question i have, though, is what is the rest of the world supposed to do it's the ultimate conundrum. >> we'll talk about it more, but we really are unable to do what we need to do is that is to cut off -- no one buys any oil no one bios any oil or anything from russia. then we've got a problem still to come this morning on "squawk box," rockefeller capital management ceo on all these things, the invasion of ukraine, the sanctions on russia and the fall out from global markets plus a foreign relations committee member, senator marco rubio joins us to discuss washington's response to russia's invasion and what it means for energy policy here in the u.s. everyone love or hate him set your dvrs are watch marco rubio. then the zoom cfo on the company's latest quarter

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welcome back to "squawk box. this morning lucid getting hit this morning after the company

reported results and slashing its production estimates want to get straight over to fill lebeau who joins us with the latest what's happening >> andrew, combat you cut your production 30 to 40% -- your production guidance i should say your stock is going to get whacked, and that's what we saw yesterday after lucid reported its q4 results it was 20,000 vehicles now it's in the range of 12 to 14,000 vehicles why? the company is dealing with supply chain challenges, and we're not talking about the chip issue. in fact when i talked with peter raulenson after the numbers came out yesterday he said this has to do with the commodities that go into the trim, the fit and finish of the lucid air, thing like the quality of the glass. he said, look, it wasn't up to snuff, and therefore we're considering alternative sourcingch the demand in his opinion is very strong, and he backs it up by saying look at our orders and reservations. they now top 25,000 vehicles you cam pair that with the last time they gave us an update

which was in november. there were 17,000 reservations at the time. that's a 47% increase, but he says we're choosing quality over quanty and if we can't make a high quality vehicle. and you're talking extremely high-priced vehicles here with the lucid air and rest of the line up of vehicles coming, you might as well not build them they're saying one other thing in terms of production they have committed to officially building a second assembly plant this one will be in the kingdom of saudi arabia. they announced that yesterday. you take that plant along with the plant in arizona which has already begun production which is going to be ramping up over the next couple of years, they expect to be at a half million vehicle capacity by the middle of this decade again, guys, volume is great but if you don't have the quality according to peter raulpson, you can't build these

vehicles still to come, a lot more on "squawk box. take a look at the futures right now. we are in the red this morning things looking to open down about 188 points down on the dow. nasdaq off about 82 points, s&p 500 off about 27 points. we've got senator marco rubio going to be with us in just a little bit to give us the latest out of washington on the ukraine invasion stay tuned

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futures down right now still in the red but not quite as bad as we saw. and if you add everything up last week and this week since the war began we're really not that far from where we were prior to the conflict. let's start now talking markets with greg fleming, ceo and president of rockefeller management it's good to see you, greg before when the troops were building up and we talked about the possible effects of if putin did move, we harkened back to previous geopolitical events that didn't really last that long and a lot of time presented

buying opportunities but in this case at least posited the notion it could be worse because of effects on the fed or sflie chain or underlying economic things that could make it more long lasting, but so far we haven't seen that do you think it will usher in a extended period of stock weakness, or are we onward and upward >> joe, first of all great to see you. i was hoping this one would be like the next one. while we're watching historic change in the world of order and it's remarkable the things that are happening as you're going through this morning, even the swiss jumping into this a very different way. the impact on the larger economic picture and markets really works from how that affects the fed because the fed rates and the economy are really where the greatest part of the

market and economic action is. so you see a lot of people trying to figure out given what's going on with ukraine, given the higher energy prices, given the negative impact on the european economy, some banks with exposure to russia, how does that affect the pace of the fed's likely actions here? so the market consensus has moved from 50 basis points later this month to 25 basis points now. maybe they'll go at a more methodical pace. maybe they'll pull all the liquidity they've built on their balance sheet out at a smaller rate we're at a historic point for the fed as well. they have to break the back of the inflation expectations starting to get embedded in the economy. they kept saying it was temporary a year ago if it starts to become something people expect it gets into a wanl negotiation it gets into people go into

amazon and start ordering things more expensive and they get used to that, then they have a problem. markets are looking, yegs, at ukraine. but in the final analysis of where markets are looking first and foremost all the time is fed rates, inflation and the impact on economy markets from there. >> exactly do you hire geopolitical strategists? do you try to shed some light or is it pointless because no one really knows >> well, we do because we're providing advice and counsel through our private wealth teams to our clients and today was our fourth anniversary of existitance at rockefeller capital management we've got actually two of the best and brightest i don't know if you saw a couple weeks agowe hire our chair

and also going to launch a fund at some point, and jimmy chang is our chief investment officer at our private wealth business so, yes, we provide insight to advisers and clients but this is tough to call. the feds also and where they were in the past and they're at a juncture now they haven't been at before either so this a new play book. so it doesn't matter how much experience you have or how great your commentators are. we've got some of the best here no one really knows how we're going to move forward. >> i'm looking at a piece in "the wall street journal" writing a book i guess >> it's a really good book

>> anyway, i read the headline and i said growing price pressures could prompt a fed rethink, and you know what i thought, i'm like i knew it, they're not going to raise, not going to follow through on it, and that's not the thrust of the piece. the rethink the piece is talking about they're going to have to go faster and further. >> they have no choice to break the back of the inflation expectation now, so that's coming the question is how much do they start taking the assets off their balance sheet and selling that down? but they've got to get ahead of inflation, and they know that. maybe you go from 15 to 25 up front, but they can't expect wages and prices to start going up at a pace that seem, come is why powell's rhetoric changed so much in the latter part of last

year irrespective of the things going on even in ukraine from a humanitarian standpoint and there's so many acts of bravery and everything else going on there, but in terms of the fed they'll have to keep going there. >> i asked you whether you need geopolitical strategists i know you've got -- don't mind us, just live -- >> bless you >> i hope that's what that was don't know where that came from. i know you have a china expert where does china finally -- where does their allegiance finally lie? they need your opinion in the united states. they may be trying to be more consumer driven but they need experts, they need to play on the world stage.

they cannot bless this outrageous incursion >> you can see it they're in an uneasy spot right now. in one sense there is an alliance, and xi and putin and had this much publicized friendship this isn't what they had in mind, and they've got -- as you said they've got important relations even with ukraine. china has a fair amount of trade with ukraine, so they're in an awkward spot now and actually one of the ramifications of the challenges putin's had in ukraine is the rethink that china and xi may have on the way they handled taiwan going forward so china is going to balance this much more than people would have expected going in is what our analysts and what we think here and you can see that in their public statements now. they're struggling to try to find a bit more of a middle ground, and they've pulled back a bit from russia andputep on a

number of fronts >> amazing that may be -- obviously our thoughts with the people in ukraine that what comes out of this thing and how china handles it for investors may be one of the most important aspects of doing this cal clas, greg. you've got a company named rockefeller. it seems pretty easy there should have already bip a rockefeller i think. >> i'm with you and proud to be partnering with the rockefeller center >> just a psa announcement, never try to hold in a sneeze. >> it's that what that was because another thing is going to happen.

>> he was trying to hold in a sneeze when we come back, we're going to discuss the bitcoin bounce, also check out the leaders and laggers in the s&p 500 this morning. target leading the way, that stock up better than 11%, trading by $222 a share. "squawk box" will be right back.

welcome back to squawk take a look at bitcoin it is being bolstered this morning by people in ukraine and russia looking tomove and stor money in an anonymous and decentralized way, and bitcoin has risen 13% while the s&p 500 up about 2%. and the safety play goals about flat joining for all of this is the executive director at global content and for the past week or two we've talked about what had not seemed like a lot of movement in bitcoin. in fact, it moved down we talked more like a nasdaq stock than digital golds

the question is this narrative i just painted, this story we keep hearing, is that moving in truth, or do you believe there's big institutional investors buying in right now? >> you never actually know the main driver of bitcoin's prices, but it would track this geopolitical tension is moving bitcoin's price. it's supposed to be a hedge against geopolitical risk. it's supposed to be a very unique asset so if things are going crazy in the world so it totally makes sense with the ruble plunging, with ukrainians looking for a place to put the capital, with just people all over the world questioning what's going in the market, it was not performing that way initially, and i think a lot of and this was like bitcoin's moment to shine, but it's possible the tide is turning now and things are changing every day, so i guess we're going to have see what

happens. >> and we are seeing at least by way of social media there are fund-raising efforts, for example, going on in ukraine, going on in even parts of russia based in bitcoin, the question is do you believe that's what's driving this, though >> i don't know that's what's driving the price movements, but it's definitely a significant amount of movement so, for example, if you look at ukraine as of yesterday there was something like over $16 million donated to ukraine by crypto currency. i'm sure that number is higher now. and at least 10 million of that had actually left the wallet so it actually was moving that was being used by supplies. you see sometimes there's these big movements, like you'll see one big transaction in bitcoin going towards one of these funds. there's definitely a lot of crypto currency moving around. >> as a former official in the

state department what do you think antony blinken are thinking about bitcoin today and the treasury department are thinking about this in this context? >> that's a great question so if i had to guess if you look at the media coverage the headlines are is russia going to use bitcoin to avoid sanctions it's a way to get around, you know, sanctions and sort of an anonymous way to move money. i would caution that's an overly simplistic way of looking at bitcoin. there have been various times when law enforcement has actually been able to track down krms using the bitcoin block chain. the reason is because every bitcoin transaction is recorded. now, it's not associated with a particular person, but, you know, with time and effort and skill you can actually track these transactions to an actual

actor. so is it really practical, i don't think that's as easy as it looks. i think that is probably something the u.s. government is paying attention to. as we discussed bitcoin is value neutral. it can be used -- potentially it could be used by governments to avoid sanctions, but it can also be used by the ukraine defense to raise millions of dollars so i don't think there's such a simple narrative >> emily, we appreciate you talking about all the narratives and walking us through all of in this airbnb offering free temporary housing to ukraine refugees i spoke to ceo brian chesky ll pt that program yesterday and wilay those comments right after the break. you don't want to miss them. we're back after this.

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up to 10 gigs to the most small businesses. that's virtually everywhere we serve. the choice is clear: make your business future ready with the network from the most innovative company. comcast business. powering possibilities™. welcome back to "squawk box," everyone refugees continuing to pour into the eastern part of the eu seeking safety the u.n. estimates more than half a million ukrainians have fled with polish officials estimating around 350,000 of them have poured into that country alone. steve sedgwick is on the ground in poland. he's got the latest on that. steve,bri us to speed. >> reporter: that's the problem. you and i and our viewers know so well but these numbers are going up so quickly. the latest figure i have is

660,000 people have crossed the border and could be even more with up to a million, 2 million internally displaced within ukraine. it's not just ones who flee over the border but ones who can't get over the border trying to escape the bombing in kharkiv and kyiv and elsewhere the u.n. now estimating between 4 and 7 million people could be displaced from this invasion boris johnson's here with his counterpart, the polish prime minister and he said vladimir putin is prepared to bomb tower blocks and we're seeing increasing numbers across the board. the u.k. announcing today 220 million pounds in humanitarian and emergency aid. prime minister boris johnson also touring the last air base where the u.s. has placed 16 f15s and going to estonia and talk to his estonian counter parts there. the u.s., 111st and 82nd

airborne a few miles away from where i am here. >> airbnb has more listings in the european union than any other region i asked ceo brian chesky in an interview yesterday about the listings it has in russia. >> it is going to be very hard for russian hosts to get paid given a lot of the restrictions on money that are being incurred on banks locally i think effectively a lot of limitation is already on our local community there, but i've been focusing the last few days on providing housing for refugees and we'll kind of see how the situation plays out. >> you mention payments, and it's an important question have you thought through the implications of, for example, putting limits on or the fact that banks are going to put limits on the s.w.i.f.t. system,

how you make those payments currently? are people thinkingabout using other payment systems and the like >> yeah, we're thinking about a range of contingencies we have a payments team that's handled $330 billion through our platforms. >> we're starting to see some people try to take payment in crypto in ukraine as a result of this does airbnb support crypto >> well, airbnb is -- i'm personally supportive of the idea of crypto, of course. i think it's a really interesting technology i asked the community on twitter if the government can launch anything what would it be? the number one response was add crypto payments, so i have a team looking into that we are absolutely looking into this and specific to this crisis

nothing is going to be able to be implemented probably that quickly, but right now what we're focused on is providing housing to refugees. that's what i've mobilized a team to do >> i also spoke to brian about inflation and the increasing price for bookings >> i think like a lot of services we are seeing press go up our average daily rate is up now, it's important to note one of the biggest reasons that our average daily rate is up is actually a mixed shift people are shifting towards booking one or two bedroom homes in studios or urban markets to larger homes also a mixed shift from latin america and asia which has been depressed, in fact asia in particular has been depressed to more expensive homes in north america and europe again, i think prices across the board a lot of services are going up i think one other thing i tried to say, i think a lot of people are turning to hosting obviously with inflation, with a

lot of economic uncertainty, a lot of people see hosting as a really important way to make supplemental income, so hopefully this is a way to help a number of people >> and he'll be living in different airbnbs this year, even hosting the company's latest earnings call i asked brian chesky >> i think this is the beginningf a revolution in how we're going to work. there is ultimately -- i don't think ceos or even government officials are going to determine whether or not people return to work and how frequently. what employees are voting on, they're voting on flexibility. and i think after compensation flexibility about where people work will be the number 2 benefit, and ultimately ceos have to compete for the very best tal want, so i think we're living in a world where there's

going to be a lot more flexibility, and i think this is the very beginning of signs to come remember this is the worst technology will ever be in our lifetime obviously camera technology, bad width, everything is going to get better so i think that's going to allow for a lot more remote work this is one of the loneliest times in human history we can't just stare at screens all day otherwise we're going to reproduce the movie wallie >> a whole other conversation about the metaverse and talk about that later >> wallie. we talk about that all the time. everybody is fat, no muscle tone you're just sitting in those reclining chairs >> wearing your ocilous. >> brian cornell wasgist saying

two of the huge sales points they've seen recently have been suitcases and swimsuits. those have been huge selling points in target, and that just shows you americans want to get out. >> people just tuning in i want you to nail this and sell it >> what's that >> this 8:00 a.m. reset. >> well, i see well, it is just after 8:00 a.m. on the east coast, and you're watching "squawk box." and we're live on the nasdaq market site in times square i don't know if i sold that well or not, but the futures are selling off is what they're doing this morning the dow off about 262 points the the s&p 500 off about 35 points want to get straight over to mike santoli this morning who's been tracking what is moving in the markets. mike >> andrew, things are moving around pretty dramatically but all within the range that we had in the s&p 500 thursday and friday so it seems like things are very

slippery but really just revisiting prices we were at very recently. the range in the s&p 500 was about 250 points to open thursday and close friday. we did get what might qualify as something of a retest of that january low. the retest is right there. still looks like there's a lot to prove here. this st. still within the range of -- it's an uneven market although you can make the case maybe individual stocks have made a short-term low as of january, february. we'll see what that means. it tends to mean still some rough going looking ahead. obviously an aggressive move in crude oil. take a look how it fits into the longer-term context. now threatening $100 a barrel brent and wti. we kind of average these levels through this area, 2007 through

2014 these are nominal dollars, it's a bigger economy consumers earn a lot more today, so we're still in this zone where it's not quite a zero-sum game where crude oil goes up and the economy loses dollar for dollar because we still have decent production here credit markets aside from crude is the other way ukraine crisis could make itself felt in equities take a lock at the high yield etf relative to the treasury etf. you have yields being compressed there in the treasury market and treasuries as represented by this etf starting to outperform high yield that is asign of some stress building, some macro concerns building it has not really diverged all that much, so high yield outperforming, so you have some give back right now. you have to still monitor this to see if we get a little bit worse than as we got at the

worst levels of last week. so far we're not there yet >> mike, appreciate it in the meantime the u.s. and allies have assembled the most extreme set of sanctions ever put on a g20 country, but the question is will those sanctions work steve liesman is here and got some insight into that >> good morning, becky the sweeping sanctions imposed on russia are hitting almost every stratus of society the ruble has dropped sharply, and master card and visa announcing this morning they're blocking several russian institutions from their network, so russians may not be able to use their credit cards the import and goods to which many russians have become accustomed since the fall of the soviet union, they're going to grow far more expensive and even become unavailable first, there are some holes in the sanctions. among them russia continues to earn dollars through its energy sales to the west. the russian central bank could have access to some of its $630

million of reserves. ordinary russians buying russian goods, for example, there's no change in the price of a loaf of bread. russians have endured ruble devaluations than what's happened so far. declined by 18% with the pandemic, and now with some strengthening of the ruble from yesterday, it's off 25% today. since the beginning of the ukraine invasion these historic sanctions will hit a country where people are used to historic suffering and its leaders don't care this is population that could suffer through a lot and survive. they don't have the same expectation of their leadership as people do in the u.s. and western europe, and that is

accountability combine that with a brutal putin regime that suppresses opposition and sanctions that make russian people suffer economically can only go so far in changing the course of the war. the question is whether a combination of dead russian soldiers and a heapy elite or military could change but there's little history of that in russia. >> you were moskow bureau chief for "the wall street journal" there. your time you spent there, what does that tell you about the possibility of any of this >> ittells me the russian people will endure enormous amounts of pain, and they have very little means of demanding any accountability from their government it's very hard for us to understand you know, we have this 7% inflation. we're all screening, demanding change the government's responding. you know, in one way or another, maybe not the way everybody

would like obviously, but the government feels this requirement to respond to its people putin can simply ignore this there are power centers in russia it sounded like the russian orthodox head church leader came out in favor of this ukraine invasion that's an important power center in russia. it's going to be important the military, though, they seem to generally follow what the leadership is doing. the change does not come from them the only thing i can think of, there's an elite group of russians but there's a middle class there that have enjoyed travel abroad, that have enjoyed their western goods. the only thing i can think is if the change comes up from them towards the leadership and if they take to the streets, but putin so far has been successful in curtailing that from the

reports from moskow. >> i've been reading mcdonald's is bracing for negative backlash for its restaurants in russia. i mean, this is our fault? can you sell that in russia to people that we somehow caused this or the west is at fault for what putin -- don't people know over there by now -- don't they have the internet? >> you know, joe, that's the om -- that's the big sort of -- if there's a flaw in my argument it is the internet the internet is capable of providing russians with real information today, i don't know the answer to that >> twitter has been cut off in a lot of places and social media >> i don't know the answer to that there was only old thing, guys, that no country with a mcdonald's would ever invade another country with a mcdonald's i guess putin undid that old maxim there. one of the reasons why among

others like not starting the third world war for no-fly zone is that putin will be able to spin that as nato attacking russia and what you don't want to do -- what you almost certainly find russian support is inbattling nato putin might find more popular support. >> steve, thank you very much. we'll talk to you later. when we come back, though, tennis superstar serena williams will talk to us about her biggest investments. plus the zoom cfo joins us to talk about her company's e rnings and what's next after thpandemic stay tuned you're watching "squawk box," and this is cnbc

coming up, a pair of news making interviews, florida senator marco rubio is going to be with us to discuss russia's response to the ukrainian invasion plus speak live with the cfo of zoom and ask her if her company still has legs coming out of the pandemic tennis champion serena williams is going to joins ve oa ulin day she has some very big investment news.

stay tuned you're watching squawk on cnbc girls...

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when it comes to cybersecurity, the biggest threats don't always strike the biggest targets. so help safeguard your small business with comcast business securityedge™. it's advanced security that continuously scans for threats and helps protect every connected device. on the largest, fastest, reliable network with speeds up to 10 gigs to the most small businesses. so you can be ready for what's next. get started with internet and voice for just $64.99 a month. and ask how to add securityedge™. or, ask how to get up to a $650 prepaid card. welcome back to "squawk box. the futures right now down roughly 250 points or so on the dow, exactly 250 and change. nasdaq indicated down right

around 100 and as far as the s&p goes down about 31 points. those are about average for what we've seen, been down a little less this morning, and down a little bit more. bitcoin, again, kicked into high gear i think it's about 44, 45,000 less >> you know our next guest is in crypto we're going to have to talk to her about it tennis champion serena williams venture fund-raising its first outside capital. serena ventures raising $100 million this after nine years in investing and already had six exits. investors including cloud tracker. good morning to both of you. we'll talk crypto in just a

moment, but wanted to first congratulate you on this new deal obviously there's a lot of other news going on in the world, but in your world this is a very big deal what kind of investments you looking to make, serena? >> yeah, there is a lot of things going on in the world right now. yes, quite frankly the reason i started serena ventures is because i feel like the venture capital area needs a platform, a and a change at scale. and we're looking at fin tech and i like to use my brand to reach that need and fill that void that the market has >> allison, when you put this fund together and you start to think of this -- the kinds of things you're looking to buy and also the impact you think you can have on a company and a deal in a way that perhaps other

investors can't. >> yeah, for us it's about how can we leverage the brand, the networks we have to make one plus one equal four for these companies? it's connection to these companies serena has been partnered with for 20 plus years. it's our talent networks going to inherently look different >> serena, what do you think of the marketplace right now? we were talking about crypto earlier. in the past 24 hours bitcoin has made a huge move it appears it's a function of what's happening in ukraine. >> it's not surprising to see that happening because it's a way for investment it's investment in the future and feels more safe right now with everything going on in the markets. so to have something in the crypto currency space, and it

just feels like a safer bet right now, so definitely not surprising for us to see bitcoin and other crypto currency leaping up and doing well. >> let's discuss because you were early with crypto, you and your husband together. >> yeah, yeah. you know, i saw the market a bit earlier in crypto and for me it was about you have to really think outside the box. and seeing some of that i wanted to dig my feet a little bit. i didn't dig inasmuch as i looking in the past could have wanted to now, so it was good. for us we have a good kind of lead going into that journey of crypto currency and how we want to get into that space over at serena ventures. >> by the way, do you invest at

all with your husband? our husband has been on our broadcast a whole bunch of times. >> yes you know, it's so interesting when we met one of our first conversations was investing because i'd bip investing over nine years now, and we try to keep business separate obviously there are things that come up where we talk about business at home, but we try to keep our businesses as separate as they can be, but it's always great to have someone like alexi in your house when you have an idea to bounce off of him. he's doing so much in the vc space right now it just seems like, you know, his time with reddit seems to be a bit less. >> how do you balance managing this business with serena?

she's oftentimes on the tennis court. so when does this happen how does it work >> yeah, we take advantage of time zones i'm out here in the bay and serena is in florida, so most of the time i wake up she's been on the court, she's been practicing and probably on physical therapy or her 9:00 a.m. calls, so i kind of joke her physical therapist is an honorary member of serena ventures because sometimes he'll opine that seems like a high valuation because we hit the ground with work as soon as she's off the court also knows when she needs to focus so we've done a good job balancing together over the last four years >> and how much of the investment is around sport or about health and wellness? >> health and wellness is something we care a lot about. serena mentioned fem tech and we spend a lot of time in that space and also mental health is

an area, so thinking about how can we help support different entrepreneurs what the role in this space looks like to think about everyone and everyone's changing needs >> do you have a mentor in all this or someone you look to actually that's been in sports arena, that's transitioned into the investment or business world? >> i've taken a mentor as well, they're actually in the investment world already, and they've been there for several years. they did have a different career going into that. i've been at them saying, listen, this is such good way in to kind of pivot, and now he's a partner at a large firm and co-founder, actually, so for me just kind of picking his brain and saying like what do we think about this or how can i impact founders, because at the end of the day we want our founders to really be performing the best they can because that's how we

make the biggest impact and making sure their company and our company can succeed, and so, yeah, i love bouncing those ideas off. they're not particular from the sports background, but, yeah, maybe that'd be me for the next person >> were we talking on-air or off air? i've got to ask you to-do you love the movie as much as we all did? >> yeah, it was such an amazing movie and we were part of the process, and we wanted to make sure the true story was told about my father, and will smith did such an incredible job and we couldn't feel more honored than to have him play that role and to just own it and the love it, and now it'sgist been so great to have something nominated so many times, with the oscars >> serena and allison want to thank you. wish you a lot of luck and

follow your progress come on back and hopefully we'll see you in person soon when we return, a wide ranging conversation with florida senator marco rubio. we'll be speaking about sanctioning russia's economy, europe's dependence and much more and take a look at oil prices this morning they've been up across the board. wti just hitting $100 a barrel brent crude well above that. stay tuned you're watching "squawk box," and this is cnbc

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as you probably know at this point target out with fourth quarter results earlier this morning. the company posting a top line miss but a bottom line beat and of course by a big margin. target says it's looking at operating margins. we spoke with the chairman earlier this morning and he touted the fact the physical locations are so important for digital sales. more than 90% of its online orders were fulfilled by its stores in the fourth quarter he said the average target store has added.

>> our $55 million stores are $70 million stores, and they're accounting for 95% of our sales between physical and digital so the benefits of our store as hubs model is really starting to pay off in productivity. >> you can see once again if you take a look at those shares they're up 11% this morning. still to come we're going to talk to the ceo of zoom. full year guidance spooking investors, a conversation you don't want to miss but next florida senator marco rubio is going to join us on america's response to the russia-ukraine invasion. now that's a conversation you don't want to miss you're watching "squawk box" on cnbc

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>> the latest on the invasion of ukraine, satellite imagery showing a 40-mile long convoy of armored vehicles, tanks and artillery approaching the city of kyiv. meanwhile a russian shelling hitting the central square of the second biggest city of ukraine, and there are unconfirmed reports that cluster bombs have been used in the country recently human rights watch says it documented one near a hospital joining us now senator marco rubio of florida he's a member of the foreign relations committee and

vice-chairman of the select committee on intelligence. nobody is immune, senator, from second guessing in criticism above hawks and doves, i can make both cases for you. i can say that history has shown us if you don't take really strong measures early on, that really bad things can eventually happen and they point to some what would be war crimes already, civilians dying for mow reason, that we're not really doing anything to stop convoys being, you know, bombing. take your pick what's going on over there also enforcing a no-fly zone people are saying we could do it, but all of it makes you think we could get into a shooting war with russia so what is the right tactic right now in terms of how hawkish or how dovish we should be >> i think a couple of things.

the first is we have to recognize we have witnessed some horrifying things and we're going to see some horrifying things here over the next few days we just are. these russian forces are fighting in civilian populations and committing war crimes. i think those have to be documented, by the way, because the people have to stand up. someone's going to have to answer for this down the road. the second is obviously we have to -- look, there's no way putin wins there's no win here. he may defeat the ukraine military he may occupy multiple cities in the country but he'll never win. either "a" he'll have to occupy a country where 41 million people there don't want him there and continue to attack them or "b" leave behind a puppet government which the aukrainians will quickly

overthrow and never accept either way it's not a win. so we've got to continue to impose a price on him for doing this this has to be the most expensive adventurism in the modern history of the world because if it isn't he'll keep doing it the world needs to see and putin needs to learn that if he does this kind of thing the price is devastating, and some of that is already happening. you guys are the financial experts. where is russia's economy headed a week from now they're headed to third world territory in terms of the damage they're suffering. they can't fly anywhere. they've got planes stuck all over the world they've got massive problems and already paying a heavy price we need to make sure those things are sustained i think it's important no matter what happens in ukraine there always be a legitimate government be it in a rough state or party of ukraine or in exile we recognize and that we support, that we continue to provide logistical support and

dep weapons so that insurgency will continue to inflict damage on the russians until those occupiers leave. >> senator, i guess just asking you specifically, should we even if it's not a nato country obviously but that doesn't mean the rest of the world and not arguing we should intervene, but when we see atrocities being committed and we know it's happening just because it's not a nato country why does it mean we shouldn't intercede to protect people that are being harmed why do we have to -- is that strategically what we need to do to not make things worse >> what we're seeing now illustrates and shows us why north korea has nuclear weapons and why iran wants them. when you're a nuclear weapons power the paupgzs your adversaries have against you are

quite limited. a shooting war between nato and russian troops puts us in world war 3. that's just a fact th they could deploy tactical nuclear weapons, we'd have to respond. that's the problem with a no-fly zone it's heart breaking to watch i think the world is doing everything it can to support ukraine in its fight and punish russia >> we're not doing everything we can. the russian economy would be much worse off if it was unable to export oil, and we're not doing that that's been conveniently left out of the sanctions, and we're -- europe's in a bind, but, you know, germany looks like it's ready to do what's necessary to try to make a difference here not thinking about their own energy problems. should we do that? should we cut off any export of russian oil? we can't >> well, i think we can and we

should, and we should comenseerate with policy announcements by this administration, for example, that we're going to produce more oil and natural gas. i think just this week the president issued an executive order building anymore lng terminals to make it harder to export gas these high oil prices combined with the lifting of these restrictions would allow there to be more exploration the u.s. needs to get back to that point where we were in 2019 and 2020 when we were exporting more than we were importing and have a net effect on the global oil production in the world, and i think that would give us the possibility and opportunity to be able to do some of thething you're saying. you're absolutely right, we cannot continue -- this is the one of the two reasons whyputep thinks he can get away with this number one is oil and gas and

number two is nuclear weapons. >> what would you like to hear tonight and expect to hear tonight? >> what i'd like to hear i won't hear and that is the president announcing america is going to get back into the business of aggressively producing and exporting natural gas. he's going to roll back some of the restrictions, that our goal is to get back to that early 2020 late '19 production aims and metrics we were hitting and going to do that in conjunction with a gradual reduction and ultimate elimination of imports of russian oil the radical left wing of his party would go nuts, go bonkers if he did that >> senator, two questions. obviously there's a whole number of abandoned oil rigs in the u.s. that could be used that aren't being used in beyond drilling and elsewhere what do you say to the business leaders both in the energy

industry and beyond effectively taken away the effect of energy and climate and moving away from energy and gas >> i think they're responding to political pressure both globally and here in the united states in doing that and here's what i would say a couple of things oil is at close to $100 a barrel right now, so now's a pretty good time to get back into that business second, i have no problem with renewables i have no problem with carbon capture, being able to find alternative ways of generating energy my problem is if you push an economy to do that before the f technology to do it catches up, all you're doing is inflicting pain on your economy meanwhile china is actively funding coal plants in china and all over the world, all over the world. russia is actively and aggressively producing fossil fuels. so i have no problem ultimately

finding a way to tech logically use less fossil fuels. if someone can make a way for a car to run on water. they've walked away from nuclear energy which is a clean source of energy. obviously the issue there is where do you put the waste, but the truth of the matter is it is a very clean way to generate energy, very reliable and can be done safely as we do every single day in this country in multiple sites >> we know putin went to the olympics he and xi are prior to china distancing itself a little bit we heard that china probably was aiding and abetting here so is that the case? you think they shouldn't be -- we shouldn't blame china, we should let them stand aside and

say, hey, we think there should be restraint here? i mean, they're basically okay at this point, and they be and if they have any leverage and they do now because they're a big part of putin and what he's able to do economically depends on china they're not helping. they're not helping to the extent they should maybe they should be sanctioned. >> i think for the chinese there's a couple of things first of all, this is a country that wants to become the biggest country in the world and they're fine with china. china is okay with the idea great powers like russia and like china have spheres of influence where they get to tell

their neighbors what to do and make them vassal tributary states and i think for china their record of what they do to people it's hard for them to talk about the indiscriminate killing of people when they're putting uyghur muslims in deg camps in their country. there's no doubt they're treading very carefully because they intend to do this one day this is what they intend to do one day in taiwan, and when they do they want to make sure russia is supporting them >> you've been very outspoken about china and china's leadership and what's happened there. the head of the gop, former president trump has made some comments over the years and putin -- >> so much good stuff to talk about. you're obsessed. don't you want to talk about something else >> you know what there's a mid-term coming and --

>> we're going to run out of time and you won't get your question >> and we just did it with kevin brady yesterday and you're going to get the same answer from him. >> it's very simple. i heard that interview i didn't hear him say that i heard what i heard, look, as a guy being sarcastic. the problem is people think donald trump is a member of the council of foreign relation. he doesn't talk like that. he doesn't talk like some analyst at a think tank, talk like most people in washington right after he said all that stuff. and i don't agree with everything he's ever said about russia but he talked about -- >> he sold weapons to ukraine, which obama didn't how many times can you get triggered about a comment that -- he says stuff. it's crazy >> can i say something else

about that i don't know if it was 2014 or early 2015 that we had a bunch of senators over to the vice president's house at that time, and i remember specifically asking vice president biden why do we not send defensive weaponry to ukraine, and the answer was is because we're afraid they'll use it and start a bigger and broader conflict. so the obama administration did not fund the trump administration for everything people want to talk about rhetorically, they did start the arming and equipping of ukraine and if it wasn't for what the trump administration did and laid the groundwork for there's no way ukraine would be able to hold out today >> would you prefer the former president use language like that that gets taken and twisted and put out to the rest of the world. you're right, he's not council on foreign relations but people listens when he speaks he's the former president.

>> it's not just him mike pompeo made a comment he was saying, look, this is crafty guy, that we have to respect his craftiness because he's an adversary, but that got twisted into somehow mike pompeo is pro-russia when he has a long history being strong on putin going back to congress you've got to be careful with every word you say because a media narrative will be created against you -- >> it's so obvious it's one of those his culridicus ill conceived remarks. trump says stuff like that all the time but what does he do they sold weapons to ukraine, which obama did not do, so -- but it gets us nowhere and george stephanopoulos, you saw him do it.

he was clinton's guy that's like putting steve bannon on abc morning news and having him interview democrats. >> he has fair questions to ask. >> what's tomcotton have to do with -- you have a picture of trump above your bed >> i think you might >> can i bring him up? did i bring him up >> you did because it's less attractive >> well, that got us a lot, senator. >> i've never been on a show where i get to watch the people arguing. >> great to see you. >> coming up, jim cramer's take on donald trump and the trading day ahead and then the cfo of zoom joins us. that stock this morning as you can see down autbo 2.3%.

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♪ ♪ ♪ ♪ with a bit more thought we can all do our part to keep plastic out of the ocean.

let's get down to the new york stock exchange. jim cramer joins us now. jim, we've got some earnings we're going to talk zoom in just a little bit what do you think? >> i think when i listen to that brian cornell interview i'm rereminded of the fact we're in the united states and not europe and i keep seeing the futures down because we're all connected. zoom is a little difficult because they're growing 10 to 11 but the pe still 29, so arguably the stock could be appreciably lower. i look at target and i think we tend to just say, oh, the american consumer is okay. i think what it says is the

american consumer has nothing to do with the european consumer and eventually what's going to happen people are going to realize we have a lot of natural gas, a lot of oil, the consumer is very strong if anything we have to worry about is how quickly jay powell says to slow the economy >> to the extent you see stuff is dislocate that looks like value right now? >> well, i'm wondering whether kohl's is value. they did a lot of things in that quarter, but i do think when you look at what workday said last night, anything involving a cloud has been sent down so low that we're now struggling to try to figure out how they got so low. look, i got to tell you, i think we get a selloff today, andrew, but isn't everyone discounting everything that's bad from powell marco rubio, i'm still trying to figure out how you have an occupational army in ukraine it looks like that putin may have felt that everyone would welcome him, kind of like the way that we thought that iraq

would welcome us, just a colossal blunder we made a colossal blunder, right? who would have thought we would have done it the answer is the leaders and their leaders in russia, i'm waiting for the generals to say, you know what? we're just not going to kill all these civilians. it was shambles and grazny was raised i don't think you can raise kyiv i just don't think you can do that i don't think you can raise car kof either >> i hope that things do get better there, and i hope that -- i don't want to say the worst is behind us. i hope the worst is behind us, i don't know if it is. >> when you have that giant convoy the world is waiting for that convoy to start killing people it does not sit well even with the chinese i think. >> we're going to see you in just a couple of minutes with the gang on "squawk," thanks. we've been monitoring stocks that were early winners in the

pandemic there's maybe no better example than zoom. shares of zoom shot up as the virus locked people down with life inching back towards normal, zoom shares are down more than 60%. what does that say about the company's durability post-pandemic. joining us now is zoom cfo, kelly stek lberg the full-year guidance did come in below estimates thanks for being with us this morning. it's good to see you. >> good morning, thanks for having me. >> this is the question that so many companies are kind of dealing with at this moment. we're moving out of covid back to more normal loife. in fact, pretty much back to full normal in most parts of the country at this point, and all of those pandemic stocks that did so well, there have been questions for a long time. i know this is a question you've been answering for quarters and quarters at this point what do you say to the wall street skeptics? >> we're really excited about the opportunities ahead. first of all, we had an amazing year last year growing 55%

year-over-year to over $4.1 billion ahead of our guidance for the year. and as we look forward, we have multiyear growth opportunities ahead. we see strength in opportunities in the enterprise, international, and we're really excited about the prospects for our zoom phone, which just had a record quarter adding over 550,000 seats, and then also zoom contact center, which became ga last week. so we're really transitioning from being a killer app to being a multiproduct platform that is going to serve all aspects of organizations communications of the future. >> part of what you all have been so focused on is what you just mentioned, customers who are contributing more than $100,000 in revenue when you look at that trailing 12 month, and i think you now have more than 2,700 customers that are doing that are these big companies, names we know? >> absolutely these are companies you know we have thrilled to have many of our customers in the fortune 50, which just highlights thousand

they're thinking about the future and their strategy, especially when you talk about the future of work organizations are thinking about how they provide the flexibility that their employees want, and zoom is a critical part of that. they're realizing that if they're going to have their employees working from anywhere outside the office even one day a week, they need a zoom license for them, and also their strategy is a really critical part of that, and that's where zoom rooms come in >> you know, zoom was the first to take off with consumers when the pandemic really hit. everyone i knew was on zoom. when you look at the corporate structure, obviously you guys have a lot of big customers, but you also have a lot of big competition there, names like webex from cisco or teams from microsoft, a lot of corporation, have that built into their infrastructure at this point i guess the question becomes how tough of a fight is it to get more customers like that and to maintain the ones that you do have >> we focus every single day on delivering happiness to our customers and our employees, and that's what we hear from them,

that they really love how simple and intuitive zoom is. we continue to take market share from all of those names that you just mentioned, and that's what we're going to continue focusing on every day we add new features and functionality, and it really comes down to letting the employees or consumers choose. zoom wins and we win because of ease of use, as well as total cost of ownership, and that's what we're going to keep doing is delivering happiness to those employees and customers. >> the outlook for the first quarter was weaker than the street was expecting is that because the street wasn't giving guidance does it come as a surprise to you too? >> this was the first time we had given fy 23 guidance, so the street had expectations that we hadn't commented on yet. as we talked about, we are really excited about the future, and we expect to see an inflection point during fy23 driven by both opportunities in our enterprise and online businesses, and we have a multiyear outlook that we're really excited about all these

new products that we talked about earlier and the prospect of continued growth in the enterprise and international. >> kelly, i mentioned that consumers really were the first ones to embrace fully with zoom. it was a huge deal during the pandemic for people who were away from their families what have you seen in terms of customer retention, consumers who are willing to continue paying what's your attrition rate, and what's your signup rate? >> yeah, it's really amazing you're right, it grew from approximately 25% of our revenue to about 50% of our revenue today coming from our online channel, which is largely these consumers that you're referencing, and they are a really important part of our business they are very profitable as well as delivering a lot of revenue to the top line. there is some volatility in there because we give them a lot of flexibility we allow them to come and go and many of them buy on a monthly basis. however, what we see, especially

as we get farther and farther from the -- that we acquired during the pandemic, we start to see a lot of stability when those consumers hit like their 15 month mark with us, and a larger and larger percentage of those customers are hitting that time line. we expect to start to see more and more stability as we get towards the back half of fy23. >> kelly stekelberg, the cfo of zoom, thank you for your time today. >> thank you. "sawhat does it for quk box. we will be back hear tomorrow. right now it's time for "squawk on the street," which is coming up after a quick break

good tuesday morning, welcome to "squawk on the street." i'm carl quintanilla with jim cr cramer, a more aggressive assault on ukraine, bonds rally, ten-year gets to 171 that's about a five-week low oil at 100, you've got the state of the union address tonight we are going to begin with market volatility and the russian ukraine conflict, ukrainian cities facing intense shelling as a convoy of russian tanks heads towards kyiv wti rising above 100 on concerns of suppl