it's the ides of march, 2022 "squawk box" begins right now. good morning welcome to "squawk box." we are live from the nasdaq market site in times square. i'm rebecca quick along with joe kernen andrew is out today. the u.s. equity futures. this is something to behold every morning. you will see weakness this morning with the dow futures indicated down 125 points. s&p is off 16. the nasdaq is down by 32 of course, this comes after the mixed session yesterday. dow was up by one point. you did see the s&p down .75%. and nasdaq with outside losses

compared to the broader markets. at this point, the nasdaq is off 22% from its all-time highs. entrenched in bear market territory. treasury yields were about where we were at this time yesterday little higher. 2.1% for the ten-year yield. two-year note is down 1.81%. then after shedding more than 8% yesterday, wti down once again this morning oil prices have come down preci precipitously. $96.59 joe, it was last monday that oil touched above $130 a barrel. huge swing huge runs up and huge runs down. you have to wonder who that leaves in the lurch when you see moves like that. >> i guess in all markets, there is psychology that puts prices where they are and many times it

may be a few sessions. supply and demand dynamics >> the issue of supply and if russia can get its oil out to market and then followed up by shutdowns in china because of covid. >> if it doesn't follow the hysteria of the futures, this is what it is going for right now and you can see what people are willing to pay for it. it will not -- the psychology or speculation or fervor that comes out of it eventually it is hard the latest for me is it is hard because we talk about markets. it is hard for me to read the papers now it is a terrible perfect storm of hideous events because the russian troops and supply chain broke down they don't have any food they are pillaging and

plundering it is a half a world a way it seems closer because we see so much. >> we are watching it. we are watching it play out. >> when i hear about peace what are you looking why is there a war in the first place? it was a war that was chosen by putin. to try to get peace as if there is some gripes -- in his world, he thinks he has grieve. knowing what is going on if there is any sense of right and wrong on the global arena, there is no way they can justify helping russia militarily. is there

they want to be part of the global community or not? you know, the other stuff, it is not front and center uyghurs. in this setting, they're out fully out with who they are and aligned with and what they are >> the request for weapons came or military assistance came. we'll see. >> if i read it in the paper -- >> that is a wide report the selloff in china tech sector with lockdowns in port cities renewed regulatory crackdowns on the tech sector and potential for delisting from the u.s. exchange hang seng dropped 6% overnight down an additional with the tech index of the hang seng down 8% china's biggest tech companies in hong kong were down sharply for the third straight session

alibaba and tencent and jd.com check out the one month declines for those three stocks >> this is where you look at it. down 44% and 40% this makes you wonder if there are serious dislocations in the markets and how it plays out with the implications with the pressure points like this and big moves in oil that leaves somebody hanging out to dry the question is who. >> it won't be the russian sfok ma stock market 40% and 50% losses all over the place. >> here in our tech stocks more than 50%. in other china news, u.s. and chinese officials met for seven hours in rome yesterday. among the tomopics is if china does something to help russia with sanctions or provide

military equipment the official described the talks as intense that's the word they used. the latest from ukraine. kyiv's mayor said russian shells hit residential buildings there. this comes as russian and ukrainian officials are set to continue talks today the prime ministers of poland and slovenia will travel to kyiv in the meantime, in russia, a protester disrupted a news broadcast holding a sign that read, no war, stop the war, don't believe propaganda they are lying to you here after a few seconds, the channel switched to a different report and protester was not seen again. sources, though, identified the woman as an employee of the cha channel. she was an edit or and could fac

charges which is illegal in russia you have to think about that you may not like what you have to say if you say something people don't like, you get kicked off twitter. you don't know what will happen to this protester. >> there are some americans stuck over there right now about the last place i would want to be stuck is in a russian prison there are a few. the basketball player. >> right. >> and executives. who knows how many would be there if media continuing to try to operator multinationals i would get all of my employees out of there. >> that is what most of them are doing. the london metal exchange says buying and selling of nickel will resume tomorrow. trading was halted for six sessions after the chinese metals giant racked up billions of losses from wrong way bets.

the lme canceled $4 billion in transactions last tuesday. that is the controversial part the less controversy, they suspended new trading. the new rules will allow nickel to rise and fall daily and be monitored in a shortened session. going back and cancelling trades made is what people are mad about. >> right what a time for a nominee to the fed who has a stated intention of making it difficult -- for the fed getting involved with fossil fuel financing. >> yeah. >> after the last. she was nominated a couple months ago and all this. the latest democratic senator joe manchin says he opposes president biden's fed nominee

sarah raskin he is not on the committee to move it forward, but you need a republican to swing over in a statement, senator manchin said previous public statements failed to address my concerns about the critical importance of financing and all of the above energy policy to meet our nation's critical energy needs senator manchin is unable to support her nomination to the federal reserve board. raskin has criticized the sector and this makes her confirmation unlikely unless she can win support from the republican senator i like that. he doesn't say her comments make it unlikely she would back fossil fuel production he says he gets cover by saying and all of the above well, she would back renewable

init initiatives. when you say all of the above, what you are really saying is she'll back the renewables, but not the other ones >> manchin is from west virginia coal is important. >> it is west virginia you are not thinking solar panels and wind farms. >> that's what it comes down to. we will go to break. before we do that, becky mentioned that i did not wear my scottie dog tie. i always wear that because it is my son's birthday. his name is scott. i couldn't i couldn't pull it out it's so wide now that i just could not pull it off anymore. why? because he's 20. i have been wearing his tie for 20 years you know what happens to ties in 20 years they are out of style in two or three years. >> look at scott. >> that's. >> viewers know him. it has been 20 years >> i can't believe he's 20 years old. happy birthday, scott. >> unbelievable.

him and his sister grow up and time passes quickly. incredible son and great brother and true film afficianado me and penelope. we are so proud of his accomplishments. you know where that was shot driftwood beach down in st. simon's. i'm sorry. je jeckyl island. happy birthday, scott. >> happy birthday. >> it goes fast. the last couple years. tough on everyone. we have been together so much. it's good. when we come back, get ready

for the fed announcement we have new data from the cnbc fed survey. later, transportation secretary pete buttigieg will join us live you are watching "squawk box" and this is cnbc >> announcer: this cnbc program is sponsored by baird. visit bairddifference.com.

on today's planner, the fed begins a two-day policy meeting. it signalled it will raise interest rates by a quarter point. inflation in focus today, we get a read on consumer prices at 8:30 a.m. eastern time right now, let's talk more about inflation and the fed decision with senior economic reporter steve liesman with the outlook from the cnbc fed survey steve, when this was run because it seems like things are changing at such a rapid clip right now. >> we do the best we can, becky. that data was gathered on thursday and friday and part of saturday we co- llated it on sunday.

some problems of its own making with high inflation and second wave of higher prices coming and uncertainty of war the fed forecast to bring the rate to 1.4%this year. 2% in 2023 all of this happening with the chance of recession in the u.s. over the next year is up 10 points from the last survey to 33%. it is gauged at 50% for europe recession is not the base case for respondrespondents the risk is skewed toward more hikes. 48% of the 33 respondents forecast five to seven hikes it is tilted there the fed will do more than hike the balance sheet almost $1 trillion next year total reduction is estimated to be $2.76 trillion over three years. all of this comes amid the forecast with greater inflation. the cpi at 8.5% and that is in

april. gradually declines to finish at 5.2% that is up a full percentage point from the february survey the cpi in 2023 goes down to a tame 3.3%. still above the target almost every respondent stressed amid the fog and uncertainty of war, confidence was low. risk tilted to the down side for discussion here, half believe the fed has to boost the rate to control inflation. that is the concern, becky >> steve, just looking through those numbers. the one that jumps out most to me i don't know as you mentioned, i don't know how much faith to put in this because things are changing rapidly the most concerning is odds of recession. 33% in the united states 50% in europe. that's got to be the number

people are thinking most it will be difficult for the fed to raise seven times 48%? five to seven times? >> that's a very good point. i will point out that joe thinks the fed won't have to raise at all. he believes the economy is close to recession he pencilled in very low economic numbers the other thing and i think you are right, becky, to hone in on those two numbers. recession in europe at 50% probability. if that happens, it creates more drag on the u.s. that raises the probability of recession and lowers the growth rate in context, as you know, any given survey we do, there is a 20% to 25% chance of recession 19% is low 18% is low 33% is high and elevated, but not that far off the norm.

>> i'm hesitant to bring this up, steve. i don't want to ruin your morning. it is not a monday it's a tuesday "wall street journal" they bring up arthur burns. don't end up like arthur burns. >> jay powell is not arthur burns. >> they have interesting things. they talk about the problem lies with the fed's economic models which are rooted in analysis which demand trumps all. a couple of weeks ago, a finance sc scholar wrote that an economist and federal reserve democrats out number republicans 10.4 to 1. they prefer james tobin over milton freeman don't look at it don't read it. >> i'm not sure why that would ruin my morning. i'm perfectly happy to have a

conversation about the fed >> did you read it >> i read the top of the one today and read the one last week about the democrats. >> just the top? the headline is all you read >> joe, i read a couple paragraphs is what i did >> a couple? you threw it down. work with me, steve. take it easy >> i know, joe on national television, it is so much fun here's the thing >> did you see me throw that that was pretty good >> i did see you throw it. it was more fun to be there yesterday. i could have thrown something at you. >> i didn't throw it at you. as you >> i could be exchanging more tom brady jokes. >> we may have some people on that actually are much more critical of what's gone on in terms of money and supply

growth the journal says it. they don't blame it on putin they don't blame it on fiscal spending they blame it squarely on the fed staying. they had the pandemic and other things to worry about. >> joe, the fed pivoted in november it's hard to say when they might have pivoted earlier than that remember, joe, there was a group of people that said that once we end the benefits in september, all these people would come back into the work force. that didn't happen, right? powell pivoted after that 11/5 jobs report. he pivoted again with the cpi showing inflation broader. i think the problem is, joe, the question is months or years here probably shouldn't have been as open as they were early on the story becomes new hain nove

they realize it did not go there their way and should have pivoted harder i don't know if you remember the report, joe. they ended qe last week, thursday or friday, was the last purchase they will continue to purchase assets to keep the level of the balance sheet where it was or $8.8 trillion over the next several months i think that is a mistake. they can reduce it now powerfu powell will say we will try to do all of this stuff given the tapertantrum without causing dislocations in markets of the i use that word because they don't care that it goes down they don't want a systemic b blowup like the tapertantrum what i saw in the journal headline i thought was accurate. the fed is late to the game here with the argument of how late. >> you have said that.

you conceded that. i admit that >> a long time not a concession, joe. >> right >> you concede that steve is -- >> i concede that steve conceded that >> becky, step in here. >> we don't know what this movie looks like we might be right. they may not need to do that much then we'll be in a different pickle which we might be thanks. >> i'm more worried about the other side, joe. i'm more worried about them raising above neutral to slow the economy. that's the forecast that i'm focused on >> we'll see the economy will slow one way or the other. >> i'm worried we'll all end up like mel gibson in "the road warrior. thanks, steve. before we head to break, we have a new service from the nbc universal news group plan your vote the tool to provide everything you need to know about the

voting rules where you live and registration and mail-in voting changes since 2020 and more. the site is now live for the 2022 midterms. go to nbcnews.com/planyourvote. coming up, biden administration announcing new measures to narrow the gender pay gap. details after the break. "squawk box" is coming right back >> announcer: cnbc fed survey is brought to you by pimco. a global leader in active fixed income these are the bonds worth investing in. for over 50 years, pimco has reinvented fixed income to create opportunities for investors in every market environment. so, no matter what happens you can build the bonds that mean the most to you. pimco, a global leader in active fixed income.

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the average woman has to earn to make what the average man earns for the year there will be a white house event today which will be attended by ceos and the u.s. women's soccer team. the biden administration is proposing banning the use of salary history and hiring and pay setting for federal employees. the president will sign an executive order to promote pay equity for job applicants of federal contractors as well. coming up. crude prices tumbling again. they went back to you? >> no, a smoldering look >> a smoldering is good. not mad. >> the rock does it well >> he does okay you do it pretty well. crude oil prices tumbling overnight. we look at the big move after break. tune in at 4:00 p.m. eastern. the headline guest today is marc

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good morning welcome back to "squawk box" we are live from the nasdaq market center in times square the dow indicated down by 41 points s&p futures indicated down 4 points nasdaq has turned positive indicated up by 6 points yesterday, it was another rough session for the nasdaq down 2%. crude prices plunging below $100 per barrel. this comes amid talks with ukraine and russia and lockdowns across cities in china following a surge of covid cases joining us to discuss the oil

market and where it goes from here is piper sandler, strategist with joan welcome. a journalism degree from columbia he may be sitting here eventually anyway, jan, can you -- the most recent on the right side of what are you looking at there, explain that we understand the other side i don't know why it didn't keep going. why are we on the double diamond slope headed down? >> i like that one double diamond we are down because we think there is a good chance at armistice followed by a peace deal number two, china is in a world of trouble locking down covid.

we may be losing 3 million barrels a day in the next two months number three, i think as you look through the option or possibility or likelihood there is an issue with ukraine and you look at the demand and how much production will you still have and when you release those three things is what is spooking the market. >> the armistice forecast are or a possibility of that. what type of signals are you seeing it doesn't look like it's going very well. you would think like a normal leader might say my troops, mor morale is horrible they are not eating. i'm not able to occupy this country. anyone playing with a full deck might decide i'll cut my losses.

i don't think many people think that will happen here. they say putin will just double down >> we are all very, very afraid of that. what you see in and around ukraine is russian and ukrainian delegations talking. you have good offices of the turks hosting talks last week on the foreignprotagonists. you have the blending in of chinese diplomacy. you have macron fighting and scholz fighting. this is a war. this is a nasty war about to get nastier. it means hundreds of thousands of people will die unless you stop fighting. people are trying to make that ha happen joe, you are thinking that is all futile this is going to grind on for a while. that would be the worst possible outcome for ukraine, obviously

the markets, i think, refuse to want to believe they are looking at this potential or possibility or vain hope that you achieve armistice and exit >> i guess, jan, what you are saying, it is self correcting almost regardless, the supply is not going to change. we see the worst-case scenario for the supply the demand is a wild card. you have china and if the war causes a global slowdown and you are looking at the demand side of things. demand could go down to offset what is a little tightness in supply >> joe, you see me squirming demand coming down you need to give me one hell of a depression demand is so sticky. we need oil for just about everything the reason why i worry about demand is china is locking down its economy. shenzhen was shutdown. we will probably shutdown

shanghai that is a 15 million barrel a day economy. you can get demand down there. you will recover that demand you will still recover post covid here in america. we are aiming for 103 million barrels a day. no way do you meet that without russian export that is what the market is spooked about. we don't know how much of the russian export comes back. in syria, people smarter than me, projecting we lose $5 million barrels a day. at the outside, even 1 million or two, we will have real trouble meeting or getting enough supply out for the demand growth we still see. we think we will be short supply and double down in america in almost every scenario i can think of.

>> if we had a slowdown to some extent with the fed raising rates, we are in a reopening mode and that's not enough to take away from coming out of the pandemic that is the overriding factor? >> we set highs for american oil demand in january and february we will grow from here we haven't begun to drive yet or fly. >> so did $130 oil make sense to you? does $96 make sense today? >> i get paid to make sense of it what happened last week, you had enormous run on gals oil. diesel tuesday last week, diesel priced $130 a barrel. you had no way of knowing how much oil is going to be offset to the front spread. brent blew up to $121.

it bluew out to over $130. that was not sustainable over a 12-month period in a two-week period sure nickel look what happened to natural gas. you can get there. >> we're not going to -- saudi arabia will not save us? >> we have a wonderfully polite conversation, joe. saudi arabia really mr. biden and the crown prince don't talk they can search. anybody in texas can search. if you search, you have water in your oil if you search, the prince said so himself you have to go down again. sustainable capacity that's where it is at. us sustainable capacity in the kingdom which has the best oil fields in the world. you add that to the neutral zone that is sustainable. you can search

you don't want to surge. the uae doesn't have enough. we count on iran coming back you have trouble by the end of the year, meeting demand with russia growing russia will not grow >> all right jan, thanks. i appreciate it. you have a lot of thoughts we will have you back. i want to hear what you think in a couple of weeks. >> any time, joe >> we will see where we are. somewhere between 50 and 300. >> i guess. >> if i get in the business, that is the range. 45 to 300. >> that's why they're not knocking on your door. when we come back, one company with the return to office policy today. that's next. and later, don't miss our interview with pete buttigieg.

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welcome back to "squawk box" live from the nasdaq market site in times square. twitter is set to reopen its offices globally today employees may continue to work

from home part-time or forever, if they so choose. employees who want to return to the office must show proof of vaccination. in the meantime, the cdc lowered the coronavirus warns for cruise ships the notice has been moved to level two which is moderate risk of t the agency warns to avoid if you are at increased risk of illness from covid it recommends passengers wear masks in crowded outdoor settings on the ships. that sounds like fun >> if from is an outbreak and a week from shore, you can't really -- you are usually closer a week from when you disembark, you are stuck. >> that's the problem. that is what happened in march of 2020. >> it doesn't help there are people that love them. >> you can get good deals right now. >> that's what i mean. they love a good deal and so

much lobster it is everywhere lots of ice and lobster sdplchlt re >> and alcohol before we head to break. check out the shares of netflix. he raci check out the shares of netflix. he rasing all of the pandemic gains. the rise of competitors like disney and apple and peacock i'm allowed to add that? >> yes, you are. >> consumers gravitating away from in-home entertainment when we come back, chinese tech stocks plunging overnight in hong kong we will take you live to beijing for the latest check it out the tech index down there 8% "squawk box" will be right back.

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chinese tech stocks plunging overnight. eunice yoon joins overnight. eunice yoon joins us right now she's in beijing and this has been pretty relentless at this point >> reporter: absolutely. chinese tech stocks in hong kong have had a very volatile time with the tech index ending down about 8% a lot of this driven by investors trying to -- there are a lot of questions as to whether or not china's close relationship with russia is going to end up becoming a big issue for u.s.-china relations after the talks in rome between

chinese and u.s. officials, china today continues to its repeat its blame of the u.s. for the ukraine yiesz and also the foreign ministry again rebutted the u.s. claims that russia asked for military support and that china was open to it. now, in addition to that, weighing on sentiment are a lot of individual stories in tech. one of the more prominent ones is that the idea the chinese cyber watchdog called in another tech media company that indicates to a lot of people here that their tech regulatory crackdown is not over. and then, of course, is the covid outbreak here. another city was put into lockdown, a city which is nearby beijing. and then the military and medical staff are starting to get sent into the hardest hit

areas, the prov lns of jilin so a lot of concern about this outbreak and shanghai as well confirmed that it is diverting its international flights as of monday until may so the city itself is trying to calm public fears that this is a lockdown, saying that there is no lockdown at the moment. trying to walk back concerns about the lockdown, saying it's not a partial lock down but a week of slow living. however, there are concerns about a lot of businesses. in fact, there's an association for online businesses that warned its customers and that they could see more delivery delays and they actually said that retailers, people who shop on amazon or who go to wal-mart

sites could end up having to wait a whole lot longer for their goods to arrive. at least the estimates now are at least a delay of another two weeks. guys >> eunice, the numbers we hear coming out of china are incredibly small relatively speaking just in terms of the case count we still have something like close to 8,000 cases a day here in the united states my guess is we probably shouldn't believe those numbers when you see huge shutdowns like this, when you see concerns and military and medical personnel being sent is that because they are being overrun in terms of the medical system and don't have enough to be able to help people who are getting severely ill is that the understanding? >> well, that's a big part of it, but it's also the overarching policy that beijing's goal is to reach zero cases as or as close to zero cases as they can. so when you have, say, a little bit over 10,000 cases at this

point even though it's small relative to the u.s. it's small, but it's large for china, which is trying to get to a point where they don't tend to have these all these outbreaks and they are worried things can get out of control a lot of in the finger pointing goes to hong kong, you know, where the omicron surge has gotten ahead of the authorities there. and china doesn't want the same thing to happen over here. >> in terms of the technology losses, i would take it it's the type of thing the chinese communist party probably doesn't get too concerned when it sees declines in the stock market but is there pain at this point where they sit up and pay attention especially when it comes to technology names? >> reporter: i'm not sure whether or not they're concerned about the specific technology names, but that's not so clear but what is clear is that there is concern about the overall welfare of the economy because a lot of these technology companies hire tons of people, and, you know, it's

really hard to read the official jobs data because there isn't really a very good read on exactly what's happening, but there are so many reports coming out of the tech sector where company after company is laying off entire departments and so if you're talking about lots of layoffs in the tech sector, that's something that the authorities here would definitely worry about >> eunice, thank you it's great to see you, as always, and we'll continue to get these updates from you on things changing pretty rapidly on the ground. in the meantime joining us to weigh in on the broader tech sell-off is dan flax, senior research analyst also sarah who's managing director you're of the opinion when you see this sell-off in technology names overseas, this is a real opportunity in some of these tech stocks. >> good morning, becky i do see opportunity and clearly

the geopolitical tension, covid, the recession, inflation, higher rates just to name a few of the challenges are going to be with us when we step back and look at the innovation and growth outlook in the technology sector, we see a lot to like here in the united states you have alphabet, doing a nice job with youtube and their cloud platform amazon is investing aggressively in ef commerce and their amazon web services remain healthy. so platforms like that should come out healthier and strong on the other side of it and if we think about what needs to happen, this build out of the infrastructure, the transformation of the enterprise, you havecompanies like cisco and microsoft have important roles to play. >> you did not mention any of these chinese tech stop names. that's an area you wouldn't

touch right now? >> reporter: we do see opportunity in alibaba when they're going to invest. tencent has a variety of assets including gaming, social, cloud. looking out we do see opportunity in both those names. i think what's key looking through what is a challenging period is that these companies innovate, invest, remain valuable to their users, the advertisers, the enterprises we are seeing them doing that, so i to think those two names in particular are attractive as we come out of this >> i think you have a few more concerns what's happening just because of the interconnected world we live in at this point, right? >> absolutely right. you look at what's going on in china and calling the squeeze where foxcon shutdown for a week, right? you look over at russia and the

absolute debacle, you know, with nickel pricing, and that's not good for people who need batteries like apple, like tesla. the world is so interconnected right now when there's an extra case of covid in china, that's hitting stock prices of tech companies in china and beyond all over the world >> is there a point, though, sarah, that you say, okay, enough pain has been inflicted, prices have come down substantially and this starts to look like a bargain? >> i mean, if you have the appetite for risk, the chinese tech market right now is a really interesting place to look they are getting squeezed on every side imaginable. there's regulatory pressure in the delisting in the u.s there's regulatory pressure at home in china. you know, there is -- there is so much value evaporating from those market caps right now, and so if you think that you are catching, you know, not a falling knife, right, but a

rising dragon, go for it but it is dangerous, dangerous times out there. >> so what would you tell people what would you suggest to investors to do instead? >> you know, i think look at things not so impacted by higher interest rates particularly in the u.s., right. we know higher interest rates for growth stocks and tech stocks are just dajs because their valuations are so much more tied to future cash flows so i think this a time to look at the more boring stuff potentially that isn't necessarily, you know, the cutting edge tech growth stocks. >> what are you talking about utilities or something >> i think with the rate hikes, you know, with what we're seeing in the u.s. market around -- around the interest rates, you know, there's a lot more interest rates in bonds a little bit finally. you're not going to get a ton of yield, but you can certainly look and get something happening there. even things like my favorite crypto, you're seeing there's been a little bit more

steadiness in that market, and it is likely to be a lot less correlated to what happens, you know, with interest rates and what's happening in the larger markets. i just think some of these tech names we've been loving for the past couple of years are in dangerous territory right now. >> we are 22% down for the nasdaq, 22% from the highs obviously a lot of those names have suffered even more than that is this a situation where you think, okay, we have seen the sell-off, we've gotten to this point, maybe it doesn't turn around quickly or worry about another leg down watching something like we saw in 2001, 2002 >> becky, i see opportunity at current levels and i would be a buyer here sure, you could see a bit further weakness given all the challenges we discussed, but i think what's notable is that if you're seeing what the companies are able to deliver, apple is an

example we saw last year nvidia their artificial intelligence helps with things like drug discovery. their innovation is ahive and well, and that is translating into revenue growth and free cash flow growth over the next few years. so i think the market is going to look at that as we come through this, and i think those are going to be attractive investments. it doesn't mean there's not risk in the near term, but we're looking further out and see a lot of opportunity at current level. >> thank you both. >> thank you >> thanks. it is just after 7:00 on the east coast, and you are watching "squawk box" right here on cnbc. i'm becky quick along with joe kernen andrew is off today. a big line upcoming in the next two hours including pete buttigieg, kevin brady and dick parsons. all of them coming up. futures right now are indicated

a little bit weaker at least they were the last we looked no, actually they've all turned positive at this point dow futures up by about 17, the s&p up by 5. let's get to dom chu looking at this morning's premarket movers >> as we talk about some of the positivity and momentum we're seeing modest lly in the premare trade, other stocks not seeing as much of that in the premarket trade. we'll start with coupa software. after the bell yesterday the company reported profits and revenues that came in better than expected, but it was aspects of their current quarter and full year revenue and profit forecast that disappointed many investors and even analysts out there right now. so coupa software because of that forecast down 40% in the

premarket trade. also watching another name getting a little bit of a pull back, it's nielsen holdings. it's down 3% right now but after a 31% rise in trading yesterday on that wall street journal story saying that a private equity consortium that includes elliot management, the activist hedge fund, could be looking to make a buy out of nielsen. nielsen holdings down 3% after a 31% climb yesterday, another to watch. and we mentioned a lot about what's happening with these chinese internet stocks. if you look at them they're all down about 3.5 to 5.5% the reason why i'm highlighting these four is these are traded in it u.s. they'll have an influence on the u.s. markets overall and, the

kranshares ticker is down about 3% right now that is now a record low for that particular etf since inception going back nine years. so a big move in those chinese internet stocks as well as all the concerns about geopolitical risks as well. so with all that, joe, chinese internet down big. back over to you >> very good, dom. thank you. you done yet with the brackets >> no, i'm still doing some research, as much as you can call that research >> i can't figure out my password still >> just reset it, becky. >> i've got the final eight and then it gets hard. it's hard now. >> it's hard -- >> it's so hard the bracket busters. iheard those bracket busters and you know what? what kills me is when when i see something in the post and it

says, yes, history can strike twice, don't discount baylor, and i'm like do i have to think -- and it ruins it i'm afraid to pick him, not pick him. they've tainted, you know, my thinking whenever i read it and then i see some other things. >> here's what you should do pick your bracket and go back and pick the exact opposite. go pick the opposite and put that n >> let's say it's 179 or 181 degrees. >> completely different. every trade, different >> that's not nice there's a really good -- draft kings has a good bet you can bet on even money on ganzaga. that's a good bet. i think it's like minus 10,000 and gut into plus 100 for that but you can only do $50. you should do that >> no, thank you >> you should.

it's a guaranteed $50. you don't want $50 >> no. >> okay. global markets on high alert this week as investors weigh a risk on possible default of russia on debt and what that could mean for the broader financial system leslie picker joins us with the latest >> russia has about $117 million worth of interest payments due to tomorrow to international bond holders the question, though, is whether the kremlin will pay and how russia's finance minister said it was, quote, fair for the country to pay in rubles while its reserves remain frozen due to sanctions these bonds were issued in dollars without an option for the kremlin to pay in local currency, and it night not be feasible given the sanctions to get rubles to bond holders anyways. so bond investors and the overall market is simply expecting russia to miss its payment, but a hard default would not take place for another 30 days. a grace period according to a

delinquent borrower. in the meantime another big uncertainty surrounds pay out slots. jp morgan strategist wrote yesterday that, quote, as it stands it looks like there will be a cds trigger on russian sovereign bonds whether starting this week or later russia has about $20 billion in foreign currency bonds there are also billions more in derivatives linked to a potential default. a u.s. official told reuters overnight they see limited direct exposure to russian sovereign bonds within the u.s. system the primary impact on all this would be on russia raising its future borrowing costs >> add to that with oil prices and chinese technology names recently and you've got to imagine there are some serious

pressure points out there. we just don't know where yet >> oh, absolutely. as we talked about yesterday there's a lot bubbling underneath the surface, and sometimes these things take a while to come out, understand where the pain points are, but just sharp moves in anything oftentimes can catch certain investors on the wrong side of a trade. that can create margin calls and we're seeing that just not just on the hedge fund side but on the corporate side, and then of course with the wild swings they got caught on the wrong side of that and had to post higher margins as a result. this is absolutely a developing story and something we're watching closely and of course be here for updates. >> and watching those chains unwind rapidly this morning i saw it at $96 and change palladium had its worst day yesterday since march of 2020. so you get forced to put up

these margin payments but if you did anything to protect it on the margin side you could get hit on that end, too >> a lot of the price swings have been contributed by algorithmic trading and short squeezes especially what we saw in the nickel market i talked to several sources fairly confident and people who realized there was so much short interest that was getting pressured upward were essentially slamming on the gas there and helping propel that higher. so that's another aspect of the spries wings we're seeing is the short kweezs and when what happens is you see the reverse take place as people try and really find a footing in these names. >> leslie, thank you >> think about that number $117 million. >> no, but then the billions tied to it >> so i was watching a former director of the national

economic council who shall remain nameless. i was watching him you know what the size of the russian economy is $1.3 trillion. you know what ours is? $23 trillion >> but that is part of the problem. putin needs to feel bigger than he is. >> that's a bad thing. but he's not, and we should be able to -- and even militarily we're head and shoulders i would think. so maybe we need to be not quite as timid >> i'd like to tread lightly before we wander into world war 3. >> i know. anyway, i do have to stop saying anyways. >> absolutely, me too. >> absolutely. if i ever do say this, shoot me. if i ever say absolutely

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♪ ♪ with a bit more thought we can all do our part to keep plastic out of the ocean. plenty of issues facing investors right now. you've got the war in ukraine, inflation and of course the fed which kicks off a two day meeting today and is expected to conclude with a rate hike. for more on all of this let's

welcome billionaire finance and investor rubenstein. we were having a conversation i bet you could shed a lot of light on concerns about russian debt default, what that means in terms of derivatives, concerns about people who got caught on the wrong sides of trades whether that be nickel or oil or chinese technology stocks, and you have to imagine there are some serious pressure points, serious pain points that are being felt it's just a matter of trying to figure out where as someone who knows the market well what are your expectations about this and what are you hearing? >> the federal reserve is having its meeting today and tomorrow and at the end of the meeting tomorrow jay powell, the chairman will almost certainly say there's a 25 basis point increase if he were to go to 50 basis point increase i think the markets would be very shocked because it would imply the fed

thinks inflation is much bigger than it has been saying it is. inflation is a big problem and a challenge, but i think the fed wants to be very deliberate and doesn't want to overexcite the markets and i think anything more than a 25 basis point increase would cause some dislocation in the markets i think after that is done i think the fed is likely over the next year or so to increase the discount rate about another four times or so. obviously if inflation turns out to be much greater than the fed is kwcurrently thinking it coul go more than that. i think inflation is bigger than anybody thought and i thought it would be i think russia is exacerbating the situation because of the energy price spike in large part due to what's happening in russia and ukraine >> right but when you add up what is potentially happening beneath the surface in the market, i just wonder if that makes the fed's job that much more difficult? are we talking about some potential for really bad trades,

other things that could push us towards a slowing economy that would mean that the fed would not for to act as quickly even though inflation is so high? i think that's the big question at this point, are we more likely to head into a recession? are there, you know, ticking time bombs in the market at this point going to make things look worse than they did in the last couple of week snz. >> i don't see recession in the near term. obviously the fed fell behind in terms of how high inflation was going to be in part because of events that were unexpected, russia and so forth. but i don't see a recession in the near-term. clearly the economy has some challenges in large part because of the russia and ukraine. i don't think the markets are assuming right now anything more than i've said in terms of fed rate discount increases. >> are you worried about the

market >> i'm not so worried i think we're going to a recession, but clearly there's uncertainty. markets don't like uncertainty and until we know what the resolution of russia and ukraine is and impact on the economy there will be some choppiness in the markets. i don't see a recession in the near-term. i think we've bip through covid and i think we came through that reasonably well. inflation is a little bit higher than we would like but in part of what's going on in russia and ukraine. the build back better bill is not likely to pass and i think that's giving some comfort to people worried about inflation >> the energy price we've seen so it's about 75 cents a gallon since the invasion it was like $1.30 before that. so over $2.20. what was the cause of the first dollar, the 70% of the increase

we saw do you think it was the reopening from the pandemic, or do ascribe to the notion that we have made it more and more difficult for oil companies and fossil fuel companies to operate pressure from esg, pressure from the white house, pressure from the left to -- pressure to leave it in the ground you don't think that's one of the major components of what we're seeing >> what we saw when energy prices went down to $40 below a barrel is that many people, often doing fracking they need a higher price per gallon. >> that was the pandemic >> so right now so people stop drilling, and it takes a while you can't just go back and drill tomorrow all of a sudden because oil prices are getting higher. it takes a while to do that, and i think markets wanted to see or energy producers wanted to see whether the markets were sustained and a price that would make sense, $70, $80 a barrel.

i think there's uncertainty about that and the opec countries didn't want to the crease production when it could have been helpful to do so >> when you hear that big producers on the margin are afraid to invest capital because of the uncertainty for the outlook for regulatory outlook and for everything, you don't think -- when they tell us that you think they're lying or just covering up for not drilling, or why do they keep saying that to us esg -- >> i don't think they're lie there's no one factor. i think the principle factor is when energy prices went to $40 a barrel in oil i think that made people nervous, and i think basically they didn't want to reactivate drilling wells until it was sustained at $70 a barrel or higher. i think right now it's unclear where the markets are going to go until russia and ukraine is resolved we don't know where

energy prices going to go in the near term. i don't think you're going to see a big amount of additional drilling in the united states. >> david, you served in the carter administration. you have been close to the administrations all the way through. and i think as somebody who really understands what's happening in washington, what is it line of thinking with ukraine right now? because this is some pretty scary stuff and has us thinking about things we thought weren't going to be problems at least not any time in our lifetimes or any time in the near future. >> i think generally the administration is hopeful though i can't really speak for the administration, but the administration is hopeful there can be some resolution in the next several weeks clearly what's going on is putin cannot take over all of ukraine and occupy it, and he now knows that so the issue is what is the strongest bargaining position he can have, and therefore he wants to get as much territory and i guess show he's as strong as

possible before a serious n negotiation occurs i think what you're seeing right now is an effort to get more territory, have a stronger negotiating position or bargaining position. but right now i think putin recognizes he bit off more than he can chew. i think the administration's view is at some point the economic sanctions will bite and the question is whether the sanctions bite before his military equipment runs out. there's no doubt russia is feeling the pressure whether tay get chinese help or not, it's not clear, but china is not going to be able to solve russia's problems in the near term in terms of the economy >> china is the linchpin i mean, that does determine a lot. >> i think china would have this prefer -- china doesn't want to upset the united states or the western allies china also doesn't want to upset putin so it's walking a fine line i don't think you're going to see china make a statement one

way or the other very definitively in the near future. the kind of aid that russia needs right now from china and others i don't think it's going to be forthcoming and therefore i think it's more likely than not economic sanctions at some point putin will look for a way out, an off-ramp so-called, but the off-ramp offered so far isn't one ukraine can accept at some point i think the economic sanctions will have such bite that putin will look for a face saving way out. whether he can survive this, we don't really know. history shows when you take on something youcan't fulfill as military political leader ultimately you have a hard time surviving. napoleon found that out at wat waterloo >> russia has that problem, too. economic numbers have been

phenomenal if you can set inflation aside, sharp, biting inflation that shows no signs of relief how many companies does carlyle own? i'm thinking how many companies you see the numbers on because you have a pretty good sense what's happening across the broad swath of the economy is there any sign things are slowing down or is this still a case where the economy looks really good from where you're sitting? >> clearly there's some slow down in china and some parts of europe the united states companies are doing reasonably well right now, so i don't really see the indication that a recession is anywhere in the near future. >> if all of that is true then

you think what is the most likely scenario for the fed? >> i think you'll see at least four, perhaps five and beyond what you see today again, depending on the markets but i think the markets are now assuming fewer rate hikes than probably they did about a month or so ago in part because of what's happened in russia. >> david, thank you for your time today >> thank you >> when can we come on your show >> anytime joe, anytime >> we're not interesting enough. becky says you do a lot of research i don't want you researching me. you might find something -- do you want him delving into your past in. >> you'll have a welcome invitation any time. i won't do any research here >> perfect >> fit in around here. no, that's not true. >> thank you >> all right, thanks, david. let's get a check on the futures which right now have turned

positive because of david rubenstein that was like a nice salve put on some of these market wounds and the nasdaq is actually up about 48 points. still to come, leading through inflation, former u.s. senator david perdue is going to join us. he served as ceo of rebok and dollar general a nndow running for governor of georgia. "squawk box" will be right back. i promise - as an independent advisor - to put the financial well-being of you and your family first. i promise to serve, not sell. i promise our relationship will be one of partnership and trust. i am a fiduciary, not just some of the time, but all of the time. charles schwab is proud to support the independent financial advisors who are passionately dedicated to helping people achieve their financial goals. visit findyourindependentadvisor.com

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welcome back to "squawk box. among the stories making headlines this morning fed policy makers will have some fresh inflation figures in hand as they begin their two day policy meeting today as for the february price producer index out 8:30 a.m. eastern time with a 0.6 rise in the ex-food and energy inflation rate. shares of delta, united and southwest are on the rise this morning. all three airlines raising their outlooks for the current quarter saying travel has rebounded from the slump caused by there spread of the covid-19 omicron variant. check it out you'll see a gain of 4.3% for united

that extra money will go directly to the driver before we head to a break let's check out the markets ahead of the ppi data you'll see right now we're in the green across the board wasn't the case when we started an hour and a half ago you were looking at the dow down about 115 points s&p futures up by 3, nads dack up by 44 and the dow up by 12. we're also watching the tech sell-off chichina's biggest tech companies were down for a third straight session alibaba down almost 12%. "squk x"ilbeig bk.awbo wl rhtac when traders tell us how to make thinkorswim® even better, we listen. like jack. he wanted a streamlined version he could access anywhere, no download necessary. and kim. she wanted to execute a pre-set trade strategy in seconds. so we gave 'em thinkorswim® web.

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our next guest says the top priority when dealing with inflation as a ceo is protecting customers and employees. joining us now with some insight former u.s. senator david perdue served as ceo of rebok and dollar general we had stacey abrams on and didn't really talk about the election right away. we talked about i think it was

entrepreneurship with stacey and then we had brian kemp on, and i think we were talking to him about some economic stuff. so we're a business channel, so we're going to start out with something pertinent to our viewers. let's get to the election in a second, and there's some interesting ramifications and asides for what's going on down in georgia, but that's kind of local. all politics are local let's talk about inflation you want to raise margins as ceo but you've got to wonder whether that hurts your business long-term. >> it's multifacet i remember double digit inflation days from the '70s most good leaders started a year ago preparing for this run up to inflation. we saw when the biden administration shutdown the keystone pipeline and saw them release the sanctions on russia. you could predict we would have

a run up in energy that tcombined with all the cash you could see consumer demand staying strong and input for costs. make sure your equity and stakeholders know what you're going to do. and make slur all the capital projects are still viable given a rising cost to capital these are the inputs right now driving inflation, and most good leaders started doing this about a year ago >> you were a republican senator from georgia what do you think policy makers should be doing right now? would you ease the supply chain, try to -- try to do things there? would you, i don't know, i guess you'd do any or all energy policy do everything you can possibly do for that, and maybe you

wouldn't tell the -- you'd probably be happy that the fed was finally stepping up to the plate with some rate increases you wouldn't be trying to talk them into keeping things low >> i think as low as rates have been right now, there's a balance between run away inflation. nobody knows how to manage double digit inflation floebd can make money for their stakeholders or customers when you have 12, 15% inflation i would open up our energy resources. i mean, that's the simplest thing we can do right now as a country. if i were in the senate we'd be screaming about that we need to open up the pipeline again and rely on our own resources. right now we're vulnerable to people who hate us, and that's a big geopolitical weapon we have. we should be supplying all the natural gas to europe right now instead of russia. this is multifaceted problem

i saw 7.9% last month. these are scary numbers and the inputs really haven't flown all the way through yet, joe >> senator, there is a republican governor already in georgia and i've heard people say there should be unity and why did you -- what's your motivation and you do have the backing of former president trump after this >> it's very simple. our party is divided and the party is already divided our current governor has been in denial anything happened in 2020 he went to -- let the consent

decree go through, denied a special session and that's with the party. in a split party there's no way you're going to beat a democrat governor we proved we could produce more votes than the democrats and that's what we have to do now. i couldn't standby and watch this train wreck happen. if he were going to do that and willing to do that, wouldn't he have done it already >> governor, george stephanopoulos and others start with the read hearing as donald trump as head of the republican party -- they give him that. they say he his. and then they go onto say as an individual do you renounce trump and all his works. >> did you hear what he said about putin? he's backing you in this race. do you renounce his comments about ukraine?

how about just the entire 2020 election and what happened in georgia, what happened everywhere else? low do you -- is he more of a benefit than perhaps a detraction for your efforts down there? >> first of all, they continue to take his comments out of context. and he basically was criticizing biden not praising putin in that comment. compare what we have the madness in the biden administration. we've got a national crisis in ukraine. we're now energy dependent again. the border is open 2 million illegal immigrants are now in our country somewhere am. it looks pretty good the agenda donald trump executed. i was part of that, it created the best economic turn around in u.s. history and i think many people are looking at this buyers remorse in the last election, frankly, and i think the president is being vindicated right now as evidence starts to show up to say nothing

happened in 2020 that's just ridiculous >> the -- i've heard bill marr, shockingly i've seen a whole composite talking about certain things in their view might not be happening that was actually from bill marr which was shocking to see. let me ask you about something back to business, rivian and a plant -- i think this was governor kemp in georgia, this was one of his hallmark achievements, 7,500 jobs and you have taken the stance this is not something that's good for georgia why is that? >> well, look, nobody is more pro-jobs than i am i have a 40-year career of doing that, creating thousands of jobs in the real world, joe what i looked at is the investments we made. we still don't know how much the government paid to bring them in

here that's a big reason for some reason and the second reason i objected to this they did not include the local community. that's the thing they're parachuting this big company in there, didn't get local buy in we know they way overpaid for the land they're priding here. and we don't know but it's going to be several hundred million dollars, and i want to see the return on investment on that deal to attract the company in here this is also a company funded by george soros who has a $2 billion investment in rivian these are things i think need to be aired out in the open and this has not been done yet >> senator, the air in the room is being taken out by what's happening in ukraine we want to tread very lightly, and we're aware these are two nuclear super powers, what how should we be handling?

would you have urged president biden to go along with the migs going to the jets going over from poland headed to ukraine? is that something you would have been urging the president to sign-off on? >> look, the united states should have been helping ukraine more i remember obama this should have never happened, joe the amateur hour in the and because, when you release that and see you oil going up to over $100 a barrel, who do you think benefits from that biden and putin. and so what happens is now putin is emboldened he thinks he's got a weak player in the white house that won't stand up to him let me remind your viewers what trump did when he got into office he told pay your fair share or we're going to exit.

they started increasing their contribution, now we see how important that move is putin is a thug,ee know that and trump was moving to make sure >> i guess you speak to the former president occasionally. do you have the feeling he's going to be the nominee -- does he want to be the nominee for 2024 and do you think that's likely at this point >> boy, after the last six years i would never speak for donald trump. i can just speak to the comparison of a donald trump administration to this disaster we have right now in the biden administration i'm sorry, but his is just the worst i've seen in my lifetime, joe. it put us -- the world is more dangerous right now than it was in 2014 when i ran for the senate after eight years of obama reducing our spending by 25%, telling the world we were going

to be another community of nations and made the world more dangerous, look what happened after that with north korea, iran, china and now russia this is amateur hour and makes the world very dangerous it's time for the american public to realize the liberal left has fooled us and this is the aftermath of that, but you don't have to look at ukraine, that's just the local of the last of several disasters. i mean, look at the border, what's going on in california. the democratic platform failed and that's what we need to remember in this sad episode in ukraine. >> we'll see what happens down in georgia if governor kemp does get the recommendation you're onboard as being a supporter -- you want to be stacey abrams, either you or governor kemp? >> absolutely. i mean, my reason for getting in here is i did not want conrad abrams to become governor of georgia. this is my home state.

we're not going to let that happen mer whoever is the nominee from the republican side >> very good former senator, georgia senator running for georgia, and it's an interesting battle between republicans we'll be watching. when we come back we're going to talk markets ahead of today's fed meeting. we want to show you oil prices right now. check this out because prices continue to decline, down 7.5% today. wti now at $95.27 a barrel last monday wti traded above $130 a barrel. it's a decline almost -- almost $35 you see just in the span of six trading sessions also check out shares of nielsen. a group of private equity firms is apparently in advance talks to buy the tv ratings company for about $15 billion including debt according to "the wall street

journal" elliot management is among those vying for a deal and on the flip side there's coupa software the company now expects revenue of 36 million to $840 million. that stock right now down almost 30%. "squawk box" will be right back. strengthening client confidence in you. before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully. as a main street bank, for a prospectus contaipnc has helpedrmation. over 7 million kids develop their passion for learning. and now we're providing 88 billion dollars to support underserved communities... ...helping us all move forward financially. pnc bank: see how we can make a difference for you.

coming up, washington and wall street collide. two big interviews you can't afford to miss transportation secretary pete buttigieg will join us to talk about the administration's latest plan to tackle supply chain issues and the rising prices at the pump and the plan to ease the pain for americans and then ways and means ranking member kevin brady will join us to talk about the situation in ukraine, the fed and much more. "squawk box" will be right back.

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futures at this hour are basically unchanged. nasdaq's up a little, s&p up a point. dow up 2 and change after years of easy money, that's an understatement the fed is set to raise rates this week to curb inflation. let's talk now with the chief invest officer for -- so if we buy the rumor and sell the news, this is the most anticipated rate hike in history, and they've actually told us what they're going to do. i guess there's a question as to how many and how the economy fares could influence how much we get this year, sarah. but is it a negative overall or a positive for the stock market?

>> there's going to be be four market movers this year. and russia on the main stage this is going to determine what the fed is going to do 25 basis points tomorrow and pretty rapid rate hikes from there but they're going to leave the door open, talk about caution and uncertainty, the impact of coming growth. this will leave the door open for them to take the foot off the gas later this year, and it's really russia and china going to cause most of the volatility this week >> these are all wild cards, but in general in terms of monetary policy and the reopening after the pandemic, is the fed where it needs to be, or does it -- is it sort of playing catching from where it should have been earlier in your view >> i think the fed definitely fell behind the curve. they were looking at transitory inflation. inflation has become more permanent. russia has made the situation worse so i think the fed is

playing catch-up here. that's why we expect rapiderate hikes. given the geopolitical situation our view is it's going to be 25. we're going to get ppi data today. and we'd hope for a shift in spending from goods and services and all of that is the fed needs to catch up with multiple rate hikes. >> there's market historians look at the stock market and try to put everything else out of their mind and look at the underlying trends and intinals of the stock market. there's been a lot of rotation and damage done. a lot of pull backs and air has come out of the high fliers and valuations are much lower than they were. do you look at it that way sfl

are we closer to the end of this correction, or is there more to go that is based on geopolitical events >> valuations definitely matter. we've got the nasdaq in bare market territory, s&p in double digits we think we're closer to the end than the beginning we like quality compounders, companies like microsoft, potential margin expansion and nasdaq down 20%. we think companies like that are looking interesting here but looking at nike bigger picture, the brand has a lot of brand heat, increasing margins as they move more direct to consumer, so this is where you're going to find your buying opportunities, but need to be selective because you're right in valuations will matter but until geopolitical issues are behind us, the market is going

to remain volatile and going to be like catching a falling knife. >> maybe it's quasi-transitory maybe it's not quite the wage-price spiral that we saw historically have that caused such a problem it's supply chain. maybe that eases maybe the situation in russia and ukraine, maybe that comes to some type, not the end of the world but something between where we are now and that. would that cause inflation to moderate do you think within six months to a year, or are we in a multiyear cycle? >> i think there's some prmance to inflation it will end up higher than we were pre-pandemic but not at the level of fear we saw in the oil camp we are in the higher than longer camp and this is because of the fundamentals

of the cycle it's not going to -- it's not going to totally impact demand into a recession also tight supply in the energy sector and of course most importantly producer discipline. we have producers focusing on returning cash to shareholders rather than on volume growth things such as that are going to cause somewhat higher inflation going forward. there was some transitory issues such as supply chain, but given the situation in china those aren't going away either so inflation will moderate but don't see it moderating yet. >> do youfore see us returning to energy dominance in this -- is that going to spawn a move, make fossil fuel companies investable again are you buying right now, for example? >> we came into 202 with energy as our top pick for the year mostly because of the fundamentals of the sector and the way producers are

behaving we think these companies not only are they fossil fuel companies but also building next generation technologies more climate friendly, so these companies are creating the bridges to the next generation of energy specifically at this point we like refiners. they're more dependent on barrels coming out of the and been somewhat laggards as oil prices hit the highs we saw. >> sarah, thank you. see you soon it is just after 8:00 a.m. in new york and you are watching "squawk box. we're live from the nasdaq market site in times square. futures this morning have been bouncing around. we started out in the red but as you can see green arrows at this point. dow futures up by about 2 points and nasdaq up by 32. the white house announcing a new initiative to stave off supply chain issues we're going to be speaking to

transportation secretary beetpubpete buttigieg in just a few minutes. a coalition of investors urging starbucks to change its tactics and policies toward workers seeking to organize. kate rogers is here with more. good morning >> becky, good morning to you. the coalition has a collective of more than $3.4 trillion in assets under management. it's out with a letter this morning strongly recommends the company to commit to a global policy of neutrality that applies to all current and future unionization efforts and elections. also calls for the coffee giant to swiftly reach fair and timely collective bargains with workers who vote to unionize we spoke with several of the signatories. take a listen. >> customers have a choice, and this is going to be the one, so

i think the company should work very hard to make sure it keeps its reputation as a people quality company, and i think that should include be a good partner to its partners. >> what's important is that the company doesn't just sort of tiptoe right along the line of what is okay in terms of international norms for human rights they need to embrace human rights and have strong policies to protect worker rights >> now, the letter argues that a positive working relationship can lead to higher pruativity and stronger workplace and also warns starbucks of reputational risk-starbucks did not immediately respond to our request for comment. >> i want to get this correct. this is a coalition of investors who combined have about $1.2 $1.2 billion invested in starbucks? >> you're talking about a 1.3% investment am. >> that's right, becky

wooels also note they did reach out back in december asking the company to formally recognize the buffalo union which it did do the coalition has grown since then >> just liken this to something like an engine number one when it comes to exxon mobil. again, it's a very small part of the overall company. these are minority activists and sometimes they can get traction so we'll have to watch very closely. thank you. in the meantime the white house announcing a new supply chain problem this morning that is expected to speed up delivery times and reduce consumer cost that program is named flow it's a partnership between the biden administration and 18 companies. joining us right now with the details is transportation

secretary pete buttigieg how does this program work >> what we found early on is there are some real gaps in how data is shared you might assume the different players in our supply chain know where everything is and where it's moving, when it's going to get there. but because there are so many different players, it doesn't actually work that way and what we're finding is there are gaps in knowledge between the truckers, the warehouses, the ultimate owners of the cargo, the shippers, even within the same port. so flow is a partnership with these private sector players that own or operate the bulk of our supply chains to make sure more of that data is shared so, for example, a trucker knows when a container is actually going to be ready so you don't have to spend hours waiting at a port gate not actually prepared for them to pick it up, knowing when chassies are available to load these containers onto

knowing when the last day is to return a container so they can make a cut off date for a ship when it sales. we're not talking about proprietary information. there's a lot of benefit for those that share it. we do think this will lead to smoother shipment, shorter times and ultimately lower costs >> is it a software program that all of these companies agree to put their data into? is it something that a trucker can access using a mobile phone? does he need a special computer piece to make it all work? >> yeah, it'll be a digital tool you can think of it like a website, and it's all voluntary. in other words it's sort of bring data to get data we think this kind of sharing is especially porn in order to fill in some of those inefficiencies

we noticed partly because of how they're compensated they're eating a lot of costs from sitting idle becauseory not ready for them at the warehouse or not ready for them at the port same thing with the owners of the actual cargo that's why you see folks like target or albertsons on the list of who's participating there's nobody who's been in a position to create it. again, these are private sector players but enough of them see the bets of it they're joining this coalition led by the white house. >> you hear about lock downs coming in broad cities in china and that has people worried about the supply chain

>> it does have this feeling of one step forward two steps back. it's improved the rate of containers backing up at the coastal ports. these pop up container yards have helped on the export side, too with agriculture exports in particular look, as long as we have global supply chains we're going to be vulnerable to thing that happen half a world away. that's one of the reasons why the president of the united states continue to focus on making more of our critical goods in the united states so when you need to count on something you don't have to wait for it to come in on a boat from china. >> we know about the back up from the ports but then there were reports of the ships being ordered to stay a little further out i think the most important thing to measure is how long does it take something to get from here to there or there to here. what have we done in terms o

cutting down that time has the wait time shrunk >> that's right, if you measure, for example, in terms of the containers sitting there, i would agree with you it's partly wait times and also cost we've seen margins and spot rates go through the roof. we're looking for those to settle out a little bit, but we still have off the charts demand we got out of the holiday season and went right into the home improvement season and continue to see that imbalance between demand and supply. just because you see fewer ships off the coast of a place like l.a. bong beach that's not o automatically a sign of progress that's why we really count how many ships are on their way whether you see them standing or

not in san pedro bay >> mr. secretary, we have lots of discussions about inflation and what causeatize, and it has gotten somewhat politicized. there's no doubt about it. i want to read you something from speaker pelosi i actually tweeted out and i wonder whether she believes this and whether it's the view of the administration see what you think when we're having this discussion it's important to dispel some of those who say, well, it's the government spending no, it isn't the government spending is doing the exact reverse, reducing the national debt. it is not inflationary can you somehow give me the logic -- does the administration -- do you feel that's an accurate statement and how do you -- how does that work how would you make that statement in a logical way >> well, i mean, first of all if you look at our fiscal policy it is true. and amazingly a lot of people don't even know this, that the

deficit has gone down and down by a remarkable amount so i think part of it is an expression of that i think also part of it is pointing to the fact that some of the investments that we make help with inflation. i mean, that's definitely true with the infrastructure invetsments, right boss we know how infrastructure is related to supply chain supply chain is related to inflation. that's one of the reasons why when there was this big fight whether the bill was going to be a problem for inflation, you had a lot of economists saying this is going to ease inflationary pressures. i also think the economic environment we're in is very different from the one we had to climb out of where the president led the investments that got us from staring off the cliff worrying about recessions and depressions to economic growth and along with that have come a

lot of dynamics we're not used to seeing. it's a fiscal policy success that our economy is growing and growing in a better way than i think most any other developed country. >> it sounds like she's saying wer going to spend our way out of debt. obviously no one with a credit card bill thinks the answer is to spend more. this is to say government spending actually reduces the debt maybe she didn't mean that i don't give her the benefit of the doubt. >> coming from an infrastructure perspective. so i'm thinking about things like preventative maintenance where if you fail to spend -- >> you can find a few examples, but in general we should really -- we want to get anything we invest in and frequently will hear that, that it's an investment not spending, it should be something you're getting good returns, not wasted and hopefully we do try to tighten our belts as soon as

possible >> one thing i'm thinking about now is bang for our buck sorry, didn't meep to -- we're thinking about bang for our buck in the infrastructure bill we dot $1.2 trillion. it sounds like an enormous sum of money and it is but we do need to be tight and pay attention to the fact there's almost a lot of physics with big infrastructure project that tend to run-over budget, tend to run longer than they're supposed to, and we're working hard to beat that that, to fight that, to find ways to deliver so we actually see $1.2 trillion worth of value in this country. >> your administration vaeb clear about not wanting to raise taxes on average americans on the middle class, but gas prices at the pump have been a huge tax on anybody who is driving

anywhere what do you do about that, and are you in favor of potentially putting a hold on the national gas tax in the meantime until those prices do come down? >> well, it continues to be important to keep options open as you know the president's taken a lot of steps to bring relief and help stabilize oil prices including that big release from the strategic petroleum reserve. of course the long-term solution for this is energy independence and a shift to renewable energy in this country. let's also remember while oil prices and gas prices are famously something that is largely outside of the direct control of any political figure, there are a lot of things we could be doing right now that would bring direct relief to the p pocketbooks of american families that are greater than most any family's gasoline bill, lower the cost of child care we're for it, getting a lot of

push back often from the very same people criticizing us over inflation or gas prices. we have the child tax credit that brought relief to families for a lot of families would outweigh any price difference you're seeing with gas and we want to extend it a lot of folks criticizing us on the hill killed that so if we're really talking about the bottom line, the balancing of the checkbook there the american family there are lots of things way under control at a time when an oil producing country is going to war. let's focus on those as well >> secretary buttigieg, thank you for being with us today. >> thank you good to be with you. coming up congressman kevin brady gives us the latest on the russia-ukraine conflict and talks to push for even stricter sanctions. and -- i don't book the show i don't want to hear it.

plus we are expecting the latest read on inflation, ppi data is out at 8:30. ayberes ahead of the numrs st tuned "squawk box" will be right back. i didn't know my genetic report could tell me

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welcome back to "squawk box" on cnbc. check out some of the major u.s. airlines, delta, united and southwest all raising their revenue outlooks saying air travel is rebounding from the slump brought on by the spread of the omicron covid variant i don't know about euro transatlantic type flights yet, but certainly people are ready to go around here. >> it's got my trip changed. i love the airlines these days changing your trip without telling you, just assuming you can go four hours earlier, a day later. you wonder why people are mad. >> you know what's going to make people mad are how quickly airlines, travel industry, hotels, how quickly they forget when we were kind of there for them, and it's like, oh, no, you

want to come it's a three day minimum. they go right back -- >> i'm not kidding my trip for spring break got changed last minute >> raising rates and putting restrictions and slapping customers around thank you, sir, may have have another. kpas when we come back producer prices, we've got that data coming up and also talking high inflation, the u.s. oil ban on rush squaw the push to add even more sanctions. texas congressman kevin brady will join us "squawk box" will be right back.

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the russia-ukraine war is nearing three weeks already. here in america stricter sanctions could get a final green light from congress this week joining us now tex congressman kevin brady. it's good to see you, congressman. >> good to see you, joe. thank you. >> so let's just go and do the crinology of the sanctions we have so far. they got started, got tougher. it does seem to be causing quite a bit of pain i would say to russia right now are they -- are you satisfied

with where they are and the cric crinology and/or what do we need to do in your view >> i think we can be tougher, joe. and two weeks ago democrats and republicans in congress came together on a plan that would both ban immediately purchases of russian energy but went further than that. that's about 60% of what america buy from russia. the only 40% we proposed to suspend really the special trade treatment we give those products to russia under the world trade organization the president delayed that so that he could apparently work with our global allies, but congress is going to work starting tomorrow i believe legislation that would repeal russia's normal trade relationships. that tackles issues like aluminum, seafood, wood products, fertilizers, products like that coming into the united states i know there'll be distance with a ban on buying russian energy

which achieved 400 votes in the house, pretty overwhelming i expect to have overwhelming by partisan support >> can sanctions ever be tough enough to accomplish what we need to accomplish do you think, congressman, or does it need to be combined with something else? >> look, sanctions will never stop bullets or missiles or tanks. they can apply that economic pressure which we hope is exactly what's happening on the russian people, certainly on those companies that operate from russia including i think we need to take a step forward, secondary sanctions on companies that buy or finance russian energy it's what we do with north korea and iran i'd like to see that apply with russia but we're going to need more lethal aid and military support. tomorrow morning as you heard

president zelenskyy is going to address congress at the capital business center to make his pitch for more direct aid from the u.s. i think it'll get a very strong reception. >> the elephant in the room the biggest aider and abettor maybe of russia is china and we've seen conflicting reports whether that's true. has russia asked, and will china supply russia with military aid and help in the invasion, do you think? >> yeah, joe, i don't have direct intelligence on that. >> what should happen if they do >> look, china, needs to make a choice here. you know, they've been playing a little here with russia and being extremely i think emboldened or helpful at least sitting on the side lines i think that's a big mistake for china and for india, any country that wants to be part of the

normal global relationship here in the world so, yeah, i would -- bow, it is a big mistake for china to embolden russia, aid russia in any way. >> the hawkish rhetoric you're hearing more and more of it, congressman, about bullies instead of being appeased and quaking and quivering every time they say something, this is our world. we have a $23 trillion economy versus a $1.5 trillion economy, and we can tell them these humanitarian -- these horrific things that we're seeing need to stop or else is that something we can do? with a nuclear power, two nuclear powers >> i mean i hope so. look, no one wants to see a major world war here i think every decision is made on how far can you go to stop russia's killing and death and

destruction in ukraine we all know this is not where russia intends to stop, and so it is a difficult balance, but i think you err on the more aggressive side especially as you watch what's happening in ukraine right now. >> congressman, thanks and we'll see what happens with those sanctions. we'll be watching. >> coming upbr, eaking inflation data "squawk box" will be right back. i didn't know my genetic report could tell me i was prone to harmful blood clots. i travel a ton, so this info was kind of life changing. maybe even lifesaving.

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welcome back to "squawk box," everybody. we're just a few seconds away from producer inflation data we've been awaiting it and watching the futures climb through the course of the morning. dow futures now up by about 65 points when we started 2 1/2 hours ago we were down by about 115. rick santelli is standing by at the cme in chicago take it awap what are the numbers >> let's look at the empires that popped first. this is a march read a big miss, minus 11.8 minus 11.8 that is the worst read going all the way back to may of 2020, so that is a huge miss. now let's get to our post-sale inflation numbers in the form of the producer price index for the month of february. the headline month over month up 0.8 of 1%. that is of course not as high as the 0.9 expected

1% in the rearview mirror and the high-water mark was in january 2021 that was up 1.2. if you strip out the all important food and energy the core is up 0.2 that is one third of what we expectedch the high-water mark is -- if you remove food, energy and trade that is up 0.2 as well and definitely a well moderated number, one third also because we're expecting up 0.6 for both the exs. exfood energy and ex-food energy and trade. year over year headline is up 10% exactly as expected. that is the new high-water mark going back to recordkeeping in 2010 the old was up 9.8 several times. if we look at ex-food and energy year over year expecting 8.7,

end up with 8.4% that's 0.1 higher. if we strip up food, energy and trade expecting the number up 7.3% we end up with 6.6% and the high-water mark there was up 7%. that was the last two months of last year. the most recent read in january was up 6.9 you can see we've definitely moderated a bit. on the year over year numbers the hottest one was of course the headline that doesn't dismiss all the other data which was on the year over year still on the hot side but definitely moderating just a bit. what have interest rates done? well, today they're coming in a bit on the light side. here we are at just under 2.11 settled around 2.13 yesterday. we want to keep an eye on all rates across the globe whether in the u.k. or europe

proper we see central banks and interest rates and inflation levels are all moving higher and something we're going to have to contend with how we divide the price of equities at a time central banks are going to be calibrating not only in the u.s. but we're going to see a recali recalibration global with respect to interest rates. >> rick, thank you steve liesman is with us he's got more on what heez numbers mean he's been digging through it steve, what's you're take away >> i think, becky, you should take a breath, lean back in your chair and enjoy this moment because it's not going to be the situation next muchbt. i think that's really the story. we can -- >> oh, boy >> we can relish this moment of being a 0.10 under the expectation on the headline ppi but it's not going to be the case the core is more interesting i've heard some chatter from ian

shepherdson and others maybe we're peaking on the core rate, but what we know is going to happen put out a chart on oil and you'll see that huge price spike we got beginning end of february, and again this is not arguing prices were high than they were, they're just higher still and this is going to show up one thing you can look at is the change for intermediate goods merchandise that's further up the pipeline than the headline we're giving you up 1.6% innered mediate goods and really raises the question of the outlook we talked about the story is this, you have one group of folks who say this huge increase in prices is a tax on consumers that will result in lower demand others say, hey, this huge surge

of inflation is requires the fed to hike more and will be run away inflation becky, that's really the debate right now among economists and how they process this huge surge which is both energy and food. >> that's the debate about economists let's talk about the knee jerk reaction in the market right now. that's a gain more than 120 points on this my guess is that is the market looking at this saaing this takes inpre takes the pressure off maybe less commentary just in terms of what to do and say right now. >> you know, i may lack the perfect metaphor here but imagine the wind is blowing 90 miles an hour and you step behind the pillar for a moment there is no pressure off the fed here

the wind is still blowing 90 miles an hour and the pressure is going beyond the fed. the pressure is two fold one it probably knows it ought to be raising faster, but it's going to go a little slow here essentially because of the uncertainty of the war, and then the pressure is also the idea going to get this inflation down the pipe the question is how much to respond to it and how much shows up the next thing i'll be doing, becky, is see if this surge in oil prices end up reducing consumer spending and consumer demand in other areas. that's a look at the high frequency data later this week >> let's run through these numbers. the dow futures are indicatedu now about 158 points when we started the show at 6:00 a.m. eastern time dow futures were indicated down about 115 points we did see a jump just based on these inflation numbers not

being quite as hot as been anticipated. prices are still high, it's just a welcome reprieve to get numbers even hotter than economists had been expecting. s&p futures up by about 23 nasdaq futures up by 116 when we come back, former citi group chairman dick parsons will join us to talk inflation, interest rates, rate hikes as the fed gets ready to kick off a key policy meeting today and then tomorrow we'll hear the decision on rates. and also dint miss an exclusive interview tomorrow with billionaire investor lee cooperman. and our plan the vote tool is live for the mid-terms with key information where you live including registration, mail-in voting, changes since 2020 and much more. you can head to nbcnews.com/plan your vote to get theatt les voting rules in your state stay tuned "squawk box" will be right back. your projects done right

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headline producer prices for february coming in 0.8 higher. believe it or not that was below the estimates of up 0.9. year over year of course ppi is

up 10%, and member of the fed will weigh inflation pretty carefully today and tomorrow as they consider their first interest rate hike in more than three years. our next guest says the u.s. central bank is caught between a rock and a hard place, and it will get slammed no matter what. joining us right now is dick parsons. he's senior advisor at providence equity partners and a former chairman of citi group and former ceo of tom warner we've been expecting some pretty high inflation numbers and we've been getting them for quite a while. this is conundrum. what does the fed do >> first of all, good morning to you, becky it's nice to see you >> nice to see you, too. >> as i said i'm not the fed whisperer, but it does seem we're stuck between a rock and a hard place anytime you put a constriction on supply, right, it's going to

result in an increase in prices. lord knows we've got a tremendous restriction on oil now, food only got worse yesterday or whenever it was china shutdown that province which is big exporter of other machine goods from china which is going to put more pressure on the supply chain, the ukraine, big producer of food, going to put more pressure on food, you know, availability so inflation is just going to be part of our future going forward and the fed knows that, and it can't do much about any of that. on the other hand, the war has created certain uncertainty. the reason i say it's been a rock and a hard place people are pulling back from spending and investing and want to see whauts going to happen and no one can guess at this point in time. i think the fed is going to slam into this thing, but i do think

they'll probably raise a quarter not a hamp i think they want to show they're aware of inflation and prepared to fight inflation. i don't think they're going to go overboard at this point and really go all out because they don't want to slow the economy down and lead to a recession >> all of a sudden in the last few weeks it's gotten a lot more complicated because of what they're facing with the ukrainian situation, with the sanctions that have been put on russia and the impact that's going to happen especially on european nation but to some extent on us, too, in terms of slowing the economy. you've got the china shutdown that looks more complicated. that's not traditionally an environment where you'll see the fed raising a lot, but they've got stuck with these high inflation numbers and gotten worse with ukraine you're still talking about some massive increases pushing prices

higher down the road no matter what how do they deal with that, though or is this going to be a situation out of their control >> the reality is so much and the big drivers are out of their control. what i said earlier they're going to be blamed anyway. i read yesterday they created a problem, now they have to live with it. there are so many big drivers here outside their control or anybody's control. the fact covid is raising not so much in the u.s. but china that zero-tolerance policy, so they're shutting down whole provinces. shanghai may be next and the impact of ukraine and food markets so it's out of their control and don't have really by way of weapons to fight, they don't have that much, right?

i think they'll show their steadfastedness in that regard, but that's a pop gun compared to some of these other forces happening around the world and the reality is we are a global economy it effects the u.s. as part of a global situation, global economy. i think we're going to have to live with this inflation for a while, and we'll see what happens in terms of people spending and businesses spending i think business spending is going to be as i say constrained because there's so much uncertainty, and we'll have to see if that leads to a slowing of the economy that results in inflationary pressures and that's where the fed is between a rock and a hard place. >> that makes sense to me the idea businesses would rein in spending but have you seen any yet?

>> certainly from a consumer perspective haven't seen it yet. people who have been locked up for so long want to go out and spend, and they're doing that. but that -- that won't last forever. and it longer this war lasts, i think, the more people are going to -- what's the conversation at the dinner table what's going to happen how are we going to get out of this situation the more it's on peoples minds the more they're going to start curbing their role in my opinion and restraining their spending vane seen it yet, but i think we will >> in an environment like that, i mean just in terms of the business leaders that you speak with obviously concerns get high are you hearing behind the scenes about any panic when it comes to not just that but also problems in the market, potentially, people who got caught on the wrong side of trades what are people talking about at this point >> i think this morning's numbers demonstrate once again the market isn't the economy, right? the market moves -- anyway, i

wish i could understand it better but it's not the economy in terms of what yo hear from other business leaders, everyone -- the major concern in peoples minds now is how did mr. putin get himself out of this mess he's gotten himself into? and no one knows it's just the best case is it gets contained to the ukraine, but, you know, people are aware of the fact mistakes happen. it could easily spread beyond the borders of u.k. and then who the heck knows what happens. so there's concern and anxiety i don't think anybody i've talked to figured out a path forward that they have confidence in that doesn't result in more tragedy and devastation and threat to world peace than we're seeing already. >> dick, thank you for being with us today. i get the feeling we'll have you back soon because the situation

certainly isn't going away >> no, it isn't, unfortunately nice to see you. tell my other friends i said hey. >> wril do coming up jim cramer's first take on this hour brand new inflationidate you and it's premier week for closing bell over time. make sure to tune in at 4:00 p.m. eastern. the headline guest today mark lazri. stay tuned you're watching from the nasdaq market site in times square. nte, the fees... it was just take, take, take. so i broke up with bad banking and moved to sofi checking and savings. now i get 1% interest, pay no account fees, and get my paycheck two days early. break up with bad banking. get 1% interest, pay no account fees, and get your paycheck up to two days early. download the sofi app and earn $100 when you set up direct deposit. sofi. get your money right.

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get down to the new york stock exchange, jim cramer joins us now you pointed out it's hard to interpret the market's movements based on russia and ukraine. it is weird when we start down and infrlation data can turn the markets around when nothing has changed with what's happened with the war. >> yeah, look, i think we're in a moment when you read the research that it's really about readjustment to the world, readjustment to slowdown in certain areas, readjustment to prices to stocks that have just been hammered and where they are val valuable every day i come in someone has a new reason why you shouldn't own stocks just by saying that they're cutting price. it's going to get overdone at a certain point. i still believe if you have any

bit of rally, you probably want to lighten up from what's been working and get into things that have come down a great deal if you have confidence in their balance sheets. >> jim, if we were able to make it through a two-year global plague in a pandemic, it would seem that it's almost binary for ukraine and russia it's probably not going to be world war ii,i, we hope, you would think at some point there is some kind of outcome that is far less than a nato involved world war iii, you would think. >> you would think >> should we be looking beyond that, or is it a mistake to not assume this is more serious than anything else we've seen in the past 50 years. >> look, do we have to wonder, is it possible that russia goes

broke, that they can't finance the war? i think that the part of the war that they're doing, which is artillery is very inexpensive for them, and they can keep that up for a long time they destroyed eastern aleppo. they destroyed grozny. i think that they play a long game, and we're playing a short game the only thing i would say is when you have those three eastern european leaders, it's very hard to shell the capital if you had a big leader coming in there every day, boris johnson is furious at the russians, i'm just telling you that you could overwhelm the russians by saying you'll kill us, you'll kill our leaders if you keep doing this, even though it's your territory. the best hope oddly is for the russians to realize if they kill a leader, that's it. they're done, and when i say they're done, i'm not saying we'll go nuclear, but i am saying they've made a very bad mistake. i think they play a long game. >> going nuclear used to be he went nuclear now you mean go nuclear.

so that's a commentary on where we are. >> he has nuclear weapons and he's got energy, and also, by the way, can we just say he's obviously lost his way and he's insulated and a lot of people would say he's crazy, and i'm not going to disagree with that. >> all right st cpl, jim, we'll see you in ju aoue of minutes "squawk box" will be right back. making friends again, billy? i like to keep my enemies close. guys, excuse me. i didn't quite get that. i'm hard of hearing. ♪♪ oh hey, don't forget about the tense music too. would you say tense? i'd say suspenseful. aren't they the same thing? can we move on guys, please? alexa, turn on the subtitles. and dim the lights. ok, dimming the lights. new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria.

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a little more than a half an hour until the opening bell on wall street with inflation,ed fed, china's covid lockdown front and center for investors joining us victoria hernandez, just summarizing some of your thoughts, victoria, you point out if this lasts longer, the conflict, you worry about investor sentiment, consumer sentiment, you worry about the recovery in europe, and yet you say in this vurmt we see opportunities in the markets that's the bottom line >> a lot of that fits right in with what jim cramer was just talking about. i mean, i think there could be a longer term russia/ukraine issue that goes on all that's going to do is cause a lot more volatility in the market right now i think you use that volatility to your advantage. when you have names that rally,

oracle ralliied about 5% this last week. we're trimming that name and using that to go into other names that we like that have taken a hit. financials are our favorite sector right now, you look at bank of america or visa or mastercard, and we're adding to those positions. i think you have to be opportunistic with the volatility you're seeing knowing this might go on longer than people originally anticipated. >> as we've seen so many times in the past, you never know what's going to cause a richly valued stock market to come down to earth but if you just try to ignore the worst-case scenarios, it kind of -- it might not be -- history might not repeat itself, but this may just present an opportunity for investors. what other areas should they look with weakness >> well, like i said, financials right now is our favorite area so i think you look there for name names. we like energy but obviously with the rally that energy has had we've actually been trimming

some of those names right now. if it pulls back, like we've seen wti and brent pull back over the last few days if you look at the energy names on your shopping list, you can build your positions there we do like some of that cyclical or some of that value component of the market because we think the consumer with rising wages, with a strong labor market, ev though inflation is moving higher, we think the consumer will be strong we've been buying names like pepsi co., names like tractor supply that have that consumer strength to them, but great dividend yields as well. be choosy in your names, but i think you can kind of spread it out across the market. >> great, victoria, thank you. we're going to have to end it there, got about 40 seconds left, a final check on the markets, which have turned around and are positive at this point, with the futures the ten-year, we'll take a quick look five or six rate hikes wh, what

we get to? >> it's still really low. >> you're not going to be at 2%. >> right, so phil lebeau would say keep that in mind. >> ten-year 2.1%. >> rick said on the wires inflation is higher with the empire index did you hear all that? >> i did hear all that >> that was my favorite part of the show >> make sure you join us tomorrow, "squawk on the street" is next. >> good tuesday morning and welcome to "squawk on the street," i'm david faber along with jim cramer, carl quintanilla has the morning off. we get started with trading here at the new york stock exchange, and everybody where else we are looking for an up open that was the case yesterday. >> that's something we like to do, we like to use money for people by having the market open up, get them in and have their