last hour, chinese authorities say one black box has been located from the crash of the boeing 737 plane there earlier this week. and a new report from axios says jamie dimon is pressing the biden administration to create a marshall plan for energy details straight ahead it's wednesday, march 23rd, 2022, and "squawk box" begins right now. ♪ good morning, everybody. welcome to "squawk box" on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. andrew, good to have you back. >> thank you, thank you. did something happen while i was away i heard there was some --

>> in this day and age -- >> there was some news. >> a little bit of news? >> in the ten days or whatever it was, something, i don't know. but the snow was good. they always have good snow. >> snow was good snow was good. >> if there's no snow, you might not have had northeasearly as m news. >> i got tweets from viewers, i hope the market is not going downhill. >> and there's bumps along the way. >> good analogy for this morning too. >> it could slow up. >> watching things this morning we do see a few red arrows not too much to get concerned about at this point. dow futures off by about 76 points s&p down and nasdaq. taking the lifts to the top yesterday once again we have seen the dow up by now,

six out of seven sessions in a row it was up over 260 points the s&p was up by more with the nasdaq up by about 2% guys, we talk all the time how tech stocks have been coming down there was an article overnight that apple right now at its $2.7 trillion valuation is worth 11 disneys. don't look a scans at any of these tech stocks. let's take a look quickly at what's been happening at the treasury market because this has been big news. the ten-year is yielding 2.395%. that's creeping up higher by the day with a lot of people expecting that you're going to see a much stronger fed. 2-years have been creeping higher and that's been a point of contention. 2.12%. it could be the sign of an

impending recession. still, quite a bit of space between the two, but it has been closing, and that's what people have been talking about. >> the ten-year put some distance between itself and the 2-year. >> it did. >> i think it hit 240 overnight, department it? >> as somebody who's watching this closely, mortgage rates have been climbing rapidly, and that's been a big concern in terrell os of what it means for affordability. probably not any slowdown in sight at the moment because there's just not a lot of inventory on the market and that's been the big driber of the market >> katie stockton is going to talk about the yield we're in an uptrend. she's got some -- if it closes at a certain point on friday, then the next indication, i think, is 255 on the ten-year, and then once we're there -- i know that's 255 we're talking basis point moves.

>> we're talking such tiny, tiny percentages. but even so -- >> it's like they were talking about gas prices or interest rates. they go -- they go up, they surge up, but they come down like a feather they both do, right? >> i paid 5 bucks. >> gas prices go up and then oil prices might come down, but they flutter slowly down. whereas, the prime rate, don't raise the prime. we've got to raise the prime on the way down, the banks are like, we've got a little time. they flutter down, surge up. >> $6 a gallon in california that's the average now. >> the average. >> yeah, right. >> i just paid $5 a gallon >> thank you, sir, may i have another? is that how it felt? >> pretty much for a rental car. >> don't go near the airport that's a big problem. >> you know how you have to fill it to the top and return it.

usually i let it go to the absolute end i thought to myself, you know, just so it looks like it's on full >> because there's a lot -- there's a couple extra gallons once it takes full. >> you know what i thought about that and then i didn't execute properly. >> was it a double do you feel guilty about how big this car was you were driving around out there for skiing? >> no. i was in like a -- >> you were. even with skiing. >> yes. >> it didn't have a second back seat >> it did, you're right, because we were in two different cars. >> they were small cars, both of them. >> i was in the -- like a ford focus basically. >> my question is what did those offsets run you? the carbon offsets >> thank you, sir, may i have another. >> that was probably as much as the gas. >> i know you have issues.

ford's going to have to start disclosing its -- >> everybody's going to have to. >> i know. >> for the s.e.c. >> i know. >> normal companies that have nothing to do with energy are going to have to figure out what their supply chain uses. no, it's not going to to happen. we will discuss. >> oh, no. >> we'll discuss it all. guys, yesterday, the vix closed at its lowest level since february lower, still low at 24 wti, brent, rbob, they're back up they're back at 111.32%. rbob up one-third of a percentage wheat is higher.

they're up again today another 1.6%, just below that all-time level but wheat is up by 45% quickly take a look at lme nickel it's been a crazy story what's happened with lme. they're talking about swinging up or down 15% on a day for price limits down 10% today, but this has been so interesting to want nickel on the lme closed above -- it closed at $55,000 onmarc 7th. it hilt $55,000, a metric ton. it's now all the way back down to $28,000 and change a ton. that has been crazy to watch, not just because of the closures and watching it down pretty continuously, but also the idea they nixed a lot of the trades cut those trades there's some pretty angry people with the canceled trades. >> i don't know if they're

conspiracy theories or true theories meantime this is a hoke of a story. breaking news on the crash of the boeing 737-800 by china eastern airlines less than an hour ago one black box has been found it should be noted they don't know if it was the flight data recorder or the cockpit recorder not clear yet. officials say it was severely damaged. they're hoping to get information about what went wrong there. becky. >> and jpmorgan's jamie dimon is reportedly pressing bide on the take action on it. his administration needs to create a marshall plan to develop more energy gas and resources. axios said he spoke to bind during a closed door meeting with more than a dozen top expectation tissue executives

dimon apaurchltly called for more liquefied gas in europe. the axios story was pretty thin on details obviously it conjures up what happened after world war ii. i get it if we need to build these natural gas facilities in europe and help finance them, but the axios reports say this was an american plan for spending in america, and it seems to me like there's plenty of financing and spending that could be done. but what need togs be done is what policies would be aloed i think it's a good idea to have snb say let's get together and come up with a plan.

i don't know that the marshall plan is the rieng thing. >> it conjures up a weird thing. maybe an "operation warp speed" plan. >> that makes sense. we're going to have to rebuilt europe after world war iii. >> you build tax incentives. >> just get out of the way. >> hold on this is actually get in the way. this is a way of saying the government needs to effectively not get in the business of drilling oil, effectively get in the business of drilling oil, but it has to be a government-led plan. >> isn't the government-led plan to drill or to say, hey, we're going to -- >> the executive action we saw on january 27th does not help. the esg stuff, the constant --

>> but that's the free market part about it. >> that's the point. >> i think there's money in the sector. >> it's the chicken and the egg. >> it all starts with government regulation. >> it's a market situation funded by pension funds mostly in europe by the way that has pushed some of this in the united states. this's what's happened it is a free market. how do you redirect the free market i'm surprised you'd like to redirect the free market. >> haven't you seen the article on climate alarmists have you seen that >> i have not seen that. >> i'll show it to you. i'd love to hear jamie

dimon's actual plan on this. it's interesting to see who was in the roorm for some of this conversation i know oil executives were there, bank of america executives there has to be some financing aspects to this they're talking about. i'm unclear what those projects would be. >> by the way, the problem is it didn't make economic sense. >> you've seen the actual quote from the president on the campaign trail he said, i will end -- >> yes, yes. >> that doesn't give you pause for -- >> but that's not -- >> why would you invest if you -- why would you invest if you knew everything was stacked against you? why would you -- >> go to the last decade look at pricing over the last decade why didn't people drill? because of the price -- >> because of the pandemic oil was minus $35.

that's not normal. >> go before that. >> no, no, no, no, no, no. look. >> can someone look at a chart >> andrew -- >> i think it's problematic -- >> the problem is you're keeping it in the ground, and now that you have -- >> i do think it's problematic to have different energy regulations every four or eight years depending on which administration is in, jamie dimon is probably talking about -- >> if you're going to invest, you're not going to do that to shareholders. >> that's what happened. >> they're losing money because of overregulation of the energy industry since january 27th, 2020. >> so -- >> you've seen the executive order. >> you believe that's when they started losing money

oil prices move around the overall despite giftzeitgei. >> it's so expensive to build pipelines and leases and paperwork. >> let's come together let's come together. >> we can't. it's impossible. becky is going to come together with us, i promise how about that. >> it sounds like the marshall plan is trying to do that. they want to talk about carbon capture and taking stuff out of the ground and trying some green technology to go along with that, which i guess is one way to try to brink the two parties together

>> andrew, do you think there's any part of the climate hobby -- >> i think they were. >> until they got them and then they tried to fill their suv and they're like, whoa, i'm trying to go to this climate summit. >> until they realize it's one of the most aggravating issues. >> it's a security issue, that's why. >> be careful what you got >> by the way, there's no doubt about it. >> okay, guys. you agree. end the conversation. >> do you know what fuels your e.v. hydrocarbons because that's what fuels the grids. you can't get around it. >> hold on in the media term we need to drill. i think longer term and some of the stuff jamie diamond and others are talking about is investing in green edge and other things the problem is you can't do it in the middle of a war in

ukraine. that's the story. >> you continue do it by 100 you can't do it with wind either the wind stopped and the sun didn't come out. you can't power the grid. >> what if i said we should say five to ten years from now, we need to get to clean energy. you would say it's a fool's errand as well. >> when we get there, india and china have ramped up fuel. we're going to -- >> i'm saying do it now because you need it but not forever. >> you need technology to deal with the issues. >> we're getting hug coming up when we return, an

update on the war in ukraine and the cyber threat from russia eamon javers is going to take a look at the energy markets including the energy sector. that's next. pat is going to be up next on the global shortage of the chin. you're watching ""squawk"". >> announcer: this portion of the program is brought to you by baird. bairddifference.com. cisions fas? workday. it's got to be something workday. i think i got something. work... hey, rob, you're on mute. hello! hey, rob, there he is. workday. the finance, hr and planning system for a changing world. this is the new world of work.

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welcome back to "squawk box. u.s. authorities are preparing for russian cyber attacks here and elsewhere. eamon javers joins us with more. eamon, how concerned should we be. >> good morning, andrew. we should be pretty concerned but the intelligence is not really clear what the fbi told me yesterday is they're focusing on the russian ascent to the energy sector they could be anywhere within the country in about an hour to check if any abnormal cyber activity matches up with what they know about these russian threats. he revealed the white house -- their warning yesterday is based on specific investigative and surveillance work that the u.s. government has done as they watch russians scanning systems, researching victims, and accessing victims're in the

united states. >> there's a whole range of preparatory work, which is what we've been seeing. we've engaged with companies specifically to help them button things down to make it harder for those attacks to go all the way to the next level. >> but, guys, the white house is also careful to say it's not predicting an attack alk it doesn't have specific intelligence of one thing. what they're concerned about is the steps that will put the russians in a position to strike if vladimir putin decides to make that decision and order it. back over to you. >> okay, thanks. in terms of industry s there any hints, though, of what we should be worried about or thinking about >> what they're talking about is the energy sector. energy is the one vector that the rugs have in the u.s. economy that they've been able to use so far in this conflict they really put the hammer down

on u.s. interceptors you can imagine a huge impact in the u.s. economy people i talked with yesterday are talking about the idea of colonial pipeline times ten. we saw that ransomware attack last year really closed down gas supplies up and down the east coast of the united states if you did something look that with a deliberate intent of fouling up the u.s. gas supplies, you could have a dramatic impact on the u.s. economy. the idea is psychologically, you might be able to impact the american public's willsingness to support the ukraine here. we'll see if that comes to fruition that seems to be the type of thing that the administration is warning about. the warning itself is interesting. the warnings used to be about getting inside the heads of the russians, saying, look, we know what you're up to, knock it off.

this is a new strategy that seems to be pretty effective, at least so far. >> that was going to be my question i don't recall ever hearing the president giving a warning like this, telling people it's not like consumers can go out and stock up on gasoline and get their generators ready and say we're going to be ready if something happens. i don't know how effective that would be but, yes, the idea of warning the russians and potentially trying to shore up american support to know if something happened, to blame the russians and be there for some countermeasures. it's a weird thing to try to message with it. the warnings could have been made privately to the heads of the companies. might it public changing the whole perception. >> absolutely. look, we've never seen anything like this, becky the russian might try to take down any u.s. sector in the next

term, 24, 48 ur hoss you're right one level is warning american businesses they've done that. we know thousands of businesses were warned yesterday directly by the white house briefing this we got some reporting on yesterday afternoon. so they are speaking directly to the industry and telling them what they want them to do. but a lot of that stuff is stuff they've been telling them to do for a while now, right all the basic cyber high jeanne that they would like people to do a lot of this is about telling the russians we know what you're up to. you don't have the element of surprise here. you're not going to succeed. and a lot of it to your point is really prepping the american public for this might happen and if it happens, here's why it's happening and here's what we're doing about it that really shifts the political game and blunts the impact of a cyber attack which, remember, would be as psychological and pushing in the u.s. as anything else. >> eamon, i get the feeling

we're going to get to talk to you a lot more offen in the coming days. thank you. >> yeah. when we come back, an update on the union push at starbucks, another company store voting to unionize we have that story next. plus, we'll talk about the big move overnight the gamestop stairs that stock up over 11% "squawk box" will be right back. ♪ ♪

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starbucks barrise istas at a seattle location have voted to unionize yesterday the seattle store joins six other company-owned starbucks cafes in buffalo, new york, and

mesa, california more than 100 have filed for union elections all within the last six months. they run nearly 9,000 locations in the united states howard schultz will be taking over from ceo kevin johnson on april 4th. andrew, while you were out, we spoke with mellody hobson, the chair at starbucks it's the reason schultz is going to come back in and work with the workers who are suddenly unhappy. >> i saw the interview i know how personally howard takes the whole situation. i think it's fast naying to see him step back into that role in part because of this, seeing if he can take this head on because he's somebody who's thought of himself as a progressive, thought of himself who's helped labor for so long. but it's fascinatifascinating. >> if you talk to any ceo right

now they'll talk about how employees are more fed up than they've been in a very long time i think that's trying to get through covid and the issues and changes we've dealt with across the country. it's clearly going to be a huge challenge. >> it will be interesting to see howard back. the truth is when you're a founder, nobody will ever love your baby as much as the founder. that's the truth he will always love it it makes sense for him to come back >> i was adopted my parents loved me as much as -- what yare you saying exactly >> i'm saying when you found a company, nobody will love it -- >> yes your parents chose you. >> i would be sol if i was depending on these other people. >> when you found a company, the founder will always love the company -- >> my parents loved me, andrew that's the truth that was not my problem.

it came from something else. coming up, market technicals of katie stockton. a lot of people have been adopted out there. anyway, car icon's warning yesterday. oh, no, you're kidding in more than 30 years a recession or wours could be coming as we head to break, a look at s&p 500's bwinners and losers >> announcer: executive edge is brought to you by at&t business. at&t 5g is fast, reliable, and secure yep! every business deserves it... like one's that re-opened! hi, we have an appointment. and every new business that just opened! like aromatherapy rugs! i'll take one in blue please!

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good morning and welcome back to "squawk box. let's take a look at the futures this morning you see some red arrows. futures indicated off by 75. the dow was up by more than 250 points yesterday been up the last six, seven trading sessions s&p futures down by about 13, but the s&p was up by 1.1% yesterday and the nasdaq is down by about 66, but the nasdaq up by 2% yesterday. joe? >> let's talk technicals katie stockton is managing

partner at fair lead it's good to see you this morning. >> you too. >> we go tail, dog, dog, tail. interest rates are important to the equity markets should we talk about what the s&p is indicating right now o do you want to talk about interest rates, which probably are going to affect what the s&p does? >> yeah. i moon it's all inter-related, of course. we have a pretty massive move in treasury yields. they're up 50, 60 basis points alone. it's stair steps high ehigher it's stair steps high so it's steep. we see drifts and phases we think one of those is imminent we use something the demark indicators you probably are familiar with them we should get our first signal fromthose tomorrow for treasur

yield. >> katy, are you talking about treasuries right now >> that's right. in yield terms. >> we're looking at s&p 500. >> let's go back >> i would have put up treasury, but that's just me. >> that's important too. >> let's talk untreasury we're at 236 you say if it closes friday above what -- below where it is? so, what, 2 presi.55? >> yes that's close above that 2.55, 2.56 area is another important area it's the upper boundary of what's a multi decade channel trail. once you clear that, it's

proving we have this momentum behind yields and ultimately it should get through that level, the next level is about 3.25 that could be a major breakout in the interim we're looking for some consolidation before we get to that breakdown above the 2.55 resistance be mindful of the uptrend and momentum behind it. >> i also thought it was interesting in your notes. you talk about crypto a little it's sort of in the same vain, almost coordinated with it you don't think the s&p necessarily is going to be able to mount a move back to all-time highs, and that could make it difficult in your view even though the down side in bit down is 38,000. it's been challenged a few times and that's positive, but you don't think it's in the cards for bitcoin and you'll get to s&p. >> yes bitcoin is providing cues for

the s&p 500. we saw its corrective phase late last year before the effective phase in the s&p 500 we could actually translate that to high beta stocks in general as well, look at the software sector for one it started correcting last year ahead of the correction in the major indices some of we look to these kind of higher beta part of the market, real risk-on assets, including bitcoin for cues as to the next step for the s&p 500. bitcoin has stabilized, of course it's seen a loss of downside momentum after nearly having itself and the support on the 38,000 it's a very important level. we're glad to see it having held it does not mean that it's in the clear here we have a loss of momentum behind risk assets it's more of a rate bond era

like 2018 where we saw collective things earlier in the year a mid-year relief rally and a massive correction at year end we used that as our analogue for this year and we did see that correct irv phase, 15% for the s&p 500 and now we think bitcoin s&p 500, they're embarking on what is an interim term relief rally. perhaps it carries us up to may. >> amazing so a loss of upside momentum long term for risk assets, but some successful tests of support for both too so which indicates a trading range in your view is what's likely for how long? >> so the support levels are very important so for 38,000 for bitcoin, the equivalent level would be about

4,200 for the s&p 500. it's based on numerous technical factors. it would be a natural sort of bottom point for the trading range that we're expecting so we do actually think that that 4,200 will ultimately be retested probably a little bit later this year, maybe over the summertime, and the reason is really just drive from long-term trend-falling models we take it a step back from the market at times, especially when it's this volatile, and we look at our more smooth long-term gauges they rolled back over in october of last year, and that was associated with the loss of market breadth or participation where we saw less stocks going up on up days. that was a problem for the market you could see last year, very obvious in the rosussell 2000 index which is a broader index. >> i've got one more theoretical

question we all every day see what's happening in ukraine and it's kind of an example of a black swan event that we don't really know what potentially could happen if a terrible thing did happen in ukraine, do you throw away all of the indicators and say we're going to start over to see how the world reacts to something, or is it actually possible that the technicals would be ahead of that event and indicate something is on the horizon? is the market smart enough to smell something like that, a really serious black swan events or not in the past, i don't think it has been. >> no, i would say not really. the market is a sentiment of what's out there every bit of information we have, good or bad, ends up in a buy/sell decision. that's what we're trying to

measure with the charts. what we manage then is using a stop loss discipline it's the best we have. for me it's the s&p under 400 to 500. perhaps even -- >> how will your etf work? what would i be investing in >> it's the fairlead technical attack it follows momentum, long term in nature. but the really interesting piece is it has the ability in these types of big major downdrafts in the major indices to move into other asset classes. it can move into treasuries, cash equivalent and gold the design is to follow momentum and leverage the upside when the market is trending higher. but when the market is

range-bound, perhaps now, or in a bear market they should manage risk or minimize drawdowns relative to the indices. >> thanks, katie we understand. what month is it march? >> march. >> still march. >> still march t the ides of march. my son's birthday. we have good insight on what to see for the rest of the year. meantime let's talk about the global chip crisis, big crisis across the board. today it's the topic of conversation seema mody is going to join us with more from washington. good morning. >> good morning. lawmakers want to send billions of dollars to the chip industry before the summer begins and they're counting on the chip business to help build that momentum the ceos will testify before the congress committee today

i spoke with the chairwoman maria cantwell about why it's important. >> we have shortages today, but that shortage could be prolonged into the future if we don't get busy here. >> but this is part of a broader innovation agenda. there are versions of the bill that need to be worked out like the research priorities, trade provisions, and $10 billion for a moon landing program that could benefit blue origin. vermont senator bernie sanders tweeted this, quote, at a time of unprecedented greed, the u.s. senate is right now debating giving $53 billion to the highly profitable microchip industry and a $10 billion bailout to jeff bezos so that he can launch a rocket ship to the moon.

lawmakers on both sides of the i'll say they're determining to reach a resolution the old-fashioned way and willing to compromise, but that takes time. back to you. >> what do you think we're going to hear from pat today what's his response to those pushing back by the way, is anybody going to be pushing back? >> that's the interesting thing. a lot of times lawmakers call them in to put them in the hot seat right now a lot of folks on capitol hill are using that. the chips piece is the energy for the entire bill. the other is what pieces can you attach on. what you'll hear is republicans talking about this bill doesn't hit hard enough and china. what are the national security provisions around usip so the debate is over the rest of it.

lawmakers want to have the ceus make their case for them and say you need to put those differences aside or work them out so we can get this done. >> right and before we go because we're going to talk to pat in just a little bit you know, he's become the poster boy for american made chips in the united states. the question is what other companies can we lean on to actually do this yeah, i think that's what lawmakers would say is that this bill and this spending would innoce incentivize. i think the answer is you need this kind of funding to have other companies build those kinds of facilities in america, and they want to ensure that happens here and not in a place like taiwan. they want more intels. >> all right the question is whether we have the experience or not. there's a big question mark there. we'll talk to pat about that in just a little bit. y ylan mui in washington

pat gelsinger will be talking with us. coming up, a lot more on "squawk. the ba.2 variant spreading in the united states. in new york city, the cases are up 10% this week alonalone. dr. scott gottlieb is going to join us in just a moment to discuss what a new surge in urses would mean for the retn to offices "squawk box" coming right back ♪ feel stuck with credit card debt? move to sofi and feel what it's like to get your money right. ♪ ♪

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ferential welcome, everybody the ba.2 covid variant is spreading in the united states, but cases still remain a small fraction of the peaks we saw earlier this city.

in new york city the cases are up more than 10% in a week joining us right now is dr. scott gottlieb, the former fda commissioner, and looking at the numbers what do you anticipate will happen here is this going to be a much lower spike that comes down quickly or is there something else in the cards? >> i think we'll continue to decline to the summer. we're very low infections into the summer so the number of severe cases are at all-time low since this pandemic began and you're already seeing this case turn over in europe you're already looking at cases

where we were seeing an uptick and they're already starting to turn the corner and come town. that's a pretty good har binger in the united states even though we're going to see an uptick in cases on the back end of that we should see continued declines. >> a lot of big companies are still testing, but my guess is it's running low and the testing won't continue much longer when do we get to the point where people aren't tracking if it's cold or flu or something else >> i think we're at the point right now we don't have to impose population level measures we probably shouldn't be doing asymptomatic testing other than in population settings such as a nursing home, we shouldn't be requiring masksch the onus

should be on the individual. but i think we need to change the culture around more infectious diseases generally. people should be encouraged when they're not feeling well to stay home and get tested. you see policy makers starting to do that and talk that way i think we need to be quite explicit about it if we're going to try to change the culture around respiratory pathogens more generally in congregant settings in the workplace. >> i hear you on that, but i want to look at it realistically, if i stayed home every day i didn't feel well i wouldn't be showing up for work a lot. i get it, and i'm happy to test every day, but if i don't come to work, i'm up at 3:30, how do you deal with something like that you don't want to put other

people at risk but you have also have to deal with the reality you have to do your job. >> yeah, there's a feeling when you might have a cold. people should be vigilant and test themselves before they go into a setting especially when you're in a sort of moderate prevalent environment. i think as we head into the summer prevalence is going to be so low heading into the summer prevalence is going to be so low i think this is going to fade from our consciousness we're not going to be worried if we don't feel well, but as you head into the fall, as we return to work when cases are likely to pick up, i think we're going to need to conform the workplace to this we're going to need a setting where we're not testing every day, taking precautions on entry, the burden is going to be on the individual and not just

around covid but around flu. as we've talked about that also means retrofitting the workplace improving air quality, air filtration in confined settings so you reduce the risk of a super spreader event remember we're going to have a very bad flu season at some point on the back end of this. there is some flu spread particularly in the southwest right now, but we've not had a very broad flu season this year. we're due for one. >> scott, two things one, filtration and airflow. we've talked about it for two years. i walk into restaurants, offices. i haven't seen really anybody invest in -- at least it doesn't seem on the outside in terms of changing airflow have you seen that >> yeah, i've seen it in the hvac systems there are also old air handling

s systems that are very hard to retrofit i suspect as we go through another cycle of this if in fact we do have covid as a fact of life going forward and we're not requiring people to really do things on entry, not requiring masks anymore, testing, i think you're going to see more and more businesses start to advertise this because it's going to give customers and workers comfort. >> and the other question i had and this goes to the pfizer drug and other therapeutics we all had this idea there would be a day where these pills and things like it would be something that would sit on our bathroom counter and you just have them around so if someone got it you take the pill like pssudefed. >> there is more splid going into the system.

one of the problems is the way it's being distributed by the government it's being distributed for free, so pharmacies aren't making any money on the distribution. there isn't a very big dispensing fee, so a lot of pharmacies are losing money by dispensing it. so what you see a lot of pharmacies aren't making money providing it it's not really a function right now there isn't supply supply is catching up am it's a function there aren't many pharmacies selling this i'm obviously on the point of pfizer >> doesn't want cvs want you to come into the store so you can buy ten items for free and -- >> not if you have covid they don't. >> they're operating at much

more thin margins and can't afford to lose money this is complicated money for them to dispense there's a lot of paperwork to fill out, a lot of certification they need to do through the government procurement system. so you're dealing with a drug a little more time consuming for them to dispense and they're not making much money on it. the cvs's of the world are carrying it but they serve a fraction of the population >> hey, scott, thank you for your time this morning it's always good to see you. >>thanks a lot it is just before 7:00 on the east coast, and you are watching "squawk box" on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. senator mike rounds will join us for the latest out of washington on the threat of a russian cyber security attack. we've been hearing about this this morning

we know companies have been put on alert and citizens as well. plus an interview you don't want to miss on what to expect on today's senate hearing with the heads of the biggest chip makers dow futures indicated off about 76 points, nasdaq also down by 77 and the s&p down by about 13 points >> thank you, becky. given those futures let's over to dom chu's who's looking at this morning emphasis premarket movers >> what we have right now despite the red in the marketplace is a pretty big move to the up side here for shares of game stop remember a big move yesterday in regular session 37% at one point. check out the premarket action, up another 13% bringing his total stake to

nearly 12% of the company. another 13 some percent right now as you can see over the last year still down about 23%, but gamestop certainly getting a boost there about that news about an enhanced stake being taken by the chairman ryan cohen. also watch what's happening right now with a number of the big semiconductor names as becky mentioned. these two in particular are ones to watch because the ceos of intel and micron are both going to be testifying before the senate committee on commerce making the case america needs to invest more in semiconductor manufacturing and government subsidies are going to be part of that story and whether they will help the semiconductor business so watch intel and micron, and by the way the ceo of intel will be on in the 8:00 hour of "squawk box" eastern time later on this morning, a must watch

interview there. and finish off with shares of apple, arguably the most important company in the u.s. markets because it's the biggest market out there for the market cap weighted indices this is following a second day of averages yesterday for many of its services including itunes and parts of the app store and their podcast business >> dom chu, nice to see you, my friend >> good to see you, too. >> now to a story we've been talking about all morning. jamie dimen calling on the white house to approve a marshal plan. >> there was a report out from axios about a big meeting at the white house yesterday reportedly attended by a number of top ceos including those from some big

banks like visa apparently and in that meeting one of those ceos, jp morgan chase ceo jamie dimon that we needed a so-called marshall plan for energy the marshall plan was the huge refunding and rebuilding campaign that helped get europe back on its feet after the devastation of world war ii's launched in 1978, considered a wide success so apparently we're seeing dimon calling on the u.s. to help europe get free of its decade long addiction to russian oil and gas. again, guys, we don't have a lot of meeting details necessarily, but axios saying dimon apparently also said that the plan should include things like more natural gas production here, which could then lead to more luck liquefied natural gas import facilities in europe, something germany is talking about sort of desperately right

now. and also dimon mentioning new technologies like hydrogen as well as carbon capture carbon capture, of course, the emerging new technology that can enable us to start using fossil fuel but eliminate the harmful emissions generated from them. the world and europe in particular needs to do more right now to help cut off the energy power of putin and russia oh, by the way, speaking of russian energy two big things to note number one, russia's oil minister al,der novak warning today the price of natural gas is going to soar even more from sanctions there. and data showing there are even more ships filled with russian oil on the way to the united states right now, some of them just loaded. we thought it was over, but it's not.

many more may be on the way because of that 45-day window the president allowed. u.s. companies clearly trying to get that orders in with that russian oil before the window closes >> could get interesting, brian, because, yeah, we should help europe but, you know, we've got our own issues and if natural gas were to spike here in this country and we've got a cold winter next year, we should provide relief to the rest of the world, but there but for the grace of god go us and when europe might be the ghost of christmas future for us right now. so i see why they're calling it the marshall plan, but i think it should be the putnic plan or the moon plan. we need to go out for all kinds of energy but certainly for natural gas. >> not just to supply europe because the prices could be so

high here they already are, gas prices are hurting a large part of our population, but it's already taking a big bite out of people's monthly income to fill their tanks >> think about this, the marshall plan was a funding plan and maybe they want to lend money to europe to build out things like liquefied natural gas including in germany where u.s. producers can send their gas to them, okay? that's business, kind of like what dr. gottlieb talked about with pharmaceuticals but from natural gas. ing which is the biggest bank in the netherlands today announced its ending or severely cutting back all financing on any fossil

fuel projects. given what's going on ing picked today to say they're going to stop that with the u.s. is saying guess what european banks, you don't want to fund this stuff, you want to be under the russian thumb for a long time, we'll be happy to pick it up, how about the jones act? you cannot chip energy or anything from houston to new york with all these crazy maritime regulations at the same time we're exporting liquefied natural gas, and importing lng into boston harbor from trinidad because this winter's new england's power companies didn't have enough juice to run the power without huge price spikes. think about that they should throw it overboard wait a minute, that already happened with the tea. >> that happened with the tea. >> highly flammable.

>> since the top of the show when we first talked about it, and look, the financing aspect is one perspective, and i see your point because you did have a lot of bankers in the room talking about this, too. but i will give jamie dimon the benefit of the doubt because someone who's taken a leadership role. we saw it when he was head of the business round table, too. another aspeck of this is remember the marshall plan was there to try and prevent the spread of communism and shutdown the soviet influence going to be there and they had no alternative to turn to potentially communism. the marshall plan came in. it was american financing to help them rebuild because we wanted to create a place for democracy to help them to thrive just trying to shutdown the russian sphere of influence in terms of what we do if we can make sure this country is providing liquefied natural gals and other ways to wean them off that russian natural gas is

another part of it, too. >> you're exactly right. this is energy as a weapon, becky. what you were talking about back then, of course, was using weapons as weapons or the threat of communism as a weapon this is energy as a weapon this is a continent primarily germany and i'm not just picking on germany, but they're the biggest nation there they're the most economically powerful nation in europe for decades because they have multiple political parties and let's cut down on nuclear and coal, and we can all agree cutting down on dirty coal is a positive thing for the planet, but in doing that their only solution was to get natural gas flows into the nation. germany has been a leader in renewables as well you also have to have them near where they're going to be used

they're hard to store and storage is expensive in other words, you've got to use them right away. you can't plan for a proverbial or literal rainy day >> just help us with the debate we're having before. >> you know what the debate is how did we get into this -- this problem? and is the free market going to get us out of it, or is the government going to get us out of it? because when you talk about a marshall plan what effective leyou talk about is either incensives or some other government led effort to put more oil and gas into the system and by the way, i'm not suggesting that we shouldn't i think in the immediate term we absolutely need to the question is why did we get here i made the argument as you know earlier over the last decade energy companies effectively looked at the economics of this and said this doesn't really

work and two, they push for esg, climate proposals 2030, 2050 obligations and companies the company made that's why we're here joe made the argument it's president biden which makes no sense to me. >> why would the oil companies decide it doesn't make sense when demands known to go up every year >> because the economics at the time >> why did the economics not make sense >> because every year it's going to go up unless there's a pandemic or financial crisis the only reason it didn'tmake economic sense was because of the government >> first off, i need a black and white shirt and a whistle. so if someone could send me my refugee gear we could have a discussion i'm not just saying this because you're both my colleagues. i think there's a bit of truth in what both of you are saying

i think it goes to a moment in time i think when prices are uneconomic, sure, oil and gas companies are saying this is stupid, we're not making any money, investors are ticked off. and yes, esg is pushing people out of these investments, you've got every major university of america saying we're not invested in oil and gas. high levels of d.c. they're making it very difficult to promote oil and gas financing. >> let me hold on, andrew. these companies who are right, they're now making some money, and what i think the biden administration is ticked off about is that they're saying, okay, finally this is an economic thing, so why aren't u.s. foil and gas companies then going after more oil and gas so we could increase supply and bring down prices? that is a private market decision i think what the oil and gas

companies would say, andrew, and you can believe them or not because they're probably talking their book, i get it, is that they can't find people they can't find steel. >> 2030 and the rapture -- >> i feel like i'm at the sullivan family thanksgiving dinner this is the sullivan family thanksgiving dinner. >> this has been a decade in the making >> it's a decade in the making because oil prices were at 140 then negative 40 >> when the price of your underlying commodity is swinging $180 in a matter of years? is that anybody's fault? >> the industry went through highs and lows for the last 60 years. we saw it in the recession and under jimmy carter we've seen that. but only now did they not have a plan about the future. >> and i'm not depending on the

biden administration -- >> can we also remember, guys, we went through a pandemic >> all sorts of different political leaders. >> and we also had a two-year pandemic, which, by the way in many parts -- two year pandemic in many parts of the world is not over it shutdown the american economy for six months certain parts reopened sooner than that. we know that now and i think the unprecedented boom in demand it's like he said you only reopen once and not only reopening that's

your point, everybody's driving. you look at driving mileage in many places and the world they're higher, india, 1.3 million people their gasoline demands are higher now long before covid you have this toxic combination of decreased supply, now sanctions and the world opening back up. is it anybody's fault or is it everything's fault >> right, there's enormous pressure i wouldn't we want to be in that business and then for the last -- you know, think about the last decade of being an oil and gas executive. i mean, you can't even tell people what you do for a living. why would you plan projects that take three 2 four years to complete you're going to piss away shareholder money. what is coming up? president biden warning u.s. businesses to prepare for a russian cyber attack we're going to talk to senator

mike rounds for the latest out of washington, south dakota, mostly agriculture north dakota is the big energy producer, but you may have some time we'll be right back.

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senator mike rounds of south dakota he and more than 20 other senators sent a letter sunday evening to the u.s. homeland security secretary raising concerns about u.s. readiness against cyber threats amid the russian invasion of ukraine. and senator, thanks for joining us prior to the invasion that the biden administration was very transparent or forthcoming about intelligence that it was receiving, more so than maybe we've ever seen in the past. and as we now know everything that they were sharing with us came to past so if they tell us they're preparing cyber attacks, they must have some pretty good evidence you probably know more than we do about it. what can you tell us >> russia uses third party players, sometimes what they'll do is they'll make a deal with the third party, criminals or others doing ransom attacks and so forth in this particular case the areas they'll probably take a look at, energy, communications,

financial services they like the idea of being able to send a message to the american people. we're also finding out, though, our energy sector and our communications sectors, our financial sectors are probably the ones that have the most time to prepare and have done the best job of their systems. they're frustrated by the fact we are getting a lot of weapons systems into ukraine they'd love to send a message to the american people this is going to impact them as well we have to be prepared for that. >> senator, that's just one aspect of what we're seeing. people are starting to point out that it's a difficult position to take. if you're petrified of a nuclear war and yet you're still probably -- your security is better, your intelligence is

better your surveillance, recognizance, even your nuclear arsenal is probably better, just knowing russia is armed, should we take that as a reason to completely, not stay out of it, but perhaps not do as many things as we would be doing if we were just trying to help ukraine win? i mean we're not all in and i don't know whether we should be. if we do no one wants a nuclear confrontation. but does that put us in a box that we shouldn't be in? >> i think there's two things we've got to remember? first of all we are dealing with a nuclear power and you can't walk away from that fact and that limits what we would normally do, and second of all we want to make sure that our nato allies are with us, and we are a lot stronger when we have nato joining with us, and they know we're going to be with them, and this is in their backyard what we want to do is we want to keep that coalition together

that's really important. but you are correct. we can't just be always on the defensive, and we've got to make sure mr. putin understands his actions will be met and we're not going to be able to simply walk away. and what he has done is absolutely wrong in the eyes of the rest of the world. and, you know, there's a certain amount of humanity here that steps into this. the american people don't like what they're seeing but they also don't want to see us come in, young men and women of this country come into this fight and it puts us in a rather interesting position because we know what putin is doing is absolutely wrong how do we contend with it, and what's the best long-term plan to make sure he does not succeed? that means, number one, keeping our nato allies together, putting every single sanction we possibly can on him, making sure the russian people know this was his fault and nobody else's and we're not going to walk away

from ukraine the other piece of this is ukraine is actually making it really very difficult for putin to get any in roads there, and we're going to continue to supply those weapons systems to them and give them as much support as we possibly can >> north dakota obviously a bigger energy player in the united states than south dakota. what's impeded energy production people have pointed out we were energy dependent there's fewer rigs operating now than three, four years ago what happened? what do we need to do there, and what would a marshall, i don't know if you saw jeremy dimon suggesting to help with their needs. what needs to be done? can the government remove obstacles? >> we should be removing obstacles and we do need stability in our energy policy >> are there obstacles >> yes, there are.

let me give you an example you hear this thing about 9,000 leases available right now on federal lands. what they dent toll you the rest of the story is you've actually got permission to do the drilling which means you've got to have that second permit and even then once you get that lease and you get information to do o, you've still got to put in the pipelines and those have been extremely difficult to come by since the biden administration came in look, we should be doing an all of the above when it comes to energy policy. we should be doing conservation measures, but we should not be slowing down the production of natural gas or of oil, of petroleum products we should be independently wealthy-wheel it comes to oil products and natural gas, and we should be sharing that with our european allies. we should be making it easy for them not to have to do business with russia, but that doesn't mean we shouldn't continue to do

all sorts of energy. and bottom line is we're going to be using petroleum products for more than another decade and the last time i checked i didn't have a magic carpet, so i'm going to have to use something that uses petroleum or i'm going to have to produce electricity using some other product. fll until we're ready to engage fully in nuclear or long-term projects that actually may mean satellites and distributing energy back to us, we're never going to get away in the next decade we should face that. >> senator, i don't disagree with you at all and especially in the immediate near-term we need to deal with this the question is if you need to put together a marshall project or something like it, what do the incentives need to look like is it simply a matter of changing the permitting for drilling is that enough given the pricing pressures these companies and even just the business models that the majors have taken on.

>> most businesses want stability. look, the excel pipeline is a good example every four years you have a change in the product and your pipeline gets shutdown, it's not going to happen. you've got to have a long-term plan that provides stability and recognizes the need for production you can make it as clean as you possibly can you don't walk away from the environmental concerns, but you don't igsnore and shutdown your economy. it means we don't have the resources then in order to address other issues we want to address. it means our economy is not as strong as it would have been otherwise. so when you talk about a marshall plan or anything take that, part of it is stability

and recognizing you can't just say, all right, we're going to go totally renewables. but let's face the fact nuclear is part of our future. but don't walk away from a proven energy asset we've got in the united states and in our friends to the north in canada in terms of huge reserves that should be accessible we should simply do it as clean as anybody else in the entire world. >> it's difficult, too, because it doesn't matter. administrations come and go, but this pressure is going to remain, and people point out it's almost like -- i don't want to bring up iraq, but if you're a foreign country trying to deal with the united states and you've got one administration, now another administration comes in, we're canceling, now another -- you need long-term visibility if you're an oil executive, and you don't have it right now. i don't see how we're not going to be able to fix this, you're not going to be able to fix this near-term. >> we need to get back to stability, making arrangements

that respect what a lot of people are talking about right now. you have to have energy. there's no question about that >> all right senator mike rounds, so how much energy comes out of south dakota versus agriculture >> well, agriculture can produce energy >> that, too >> ethanol you can put it into absolutely -- we're talking billions of gallons a year >> we love both dakotas, we do we love both north and south >> they're good competition for us >> you speak for all of us thanks, senator. get back to work when we come back we'll talk about technology on a tear the nasdaq composite was the relative outperformer in yesterday's session. it was up by 2% as meta platforms, amazon, apple, netflix and google's parent

alphabet all closed higher going to talk about that move and whether or not you should be buying into this rally plus don't miss our interview with intel ceo pat gelsinger ahead of the committee's hearing on chip manufacturing that comes later this morning stay tuned you're watching "squawk box," and this is cnbc time now for today's aflac trivia question. how many banks and financial institutions are insured by the federal deposit insurance iorporatn? the answer when cnbc's "squawk box" continues the aflac pre-pain show. aflac! paul is about to suffer a shelf-inflicted injury. luckily, aflac will help cover his unexpected medical bills. aflac! maybe you could use the money to buy a step stool. i have a step stool. so why are you climbing a shelf? the stool's on top of the shelf, isn't it paul... [shelf crashing] yeah... ♪ aflac! official partner of march madness.

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how many banks and financial institutions are insured by the federal deposit insurance corporation? the answer, 4,914. welcome back to "squawk box. i'm diana oleck with breaking news on mortgage applications. rising rates are really taking their toll mortgage refinance demand dropped an outsized 14% last week compared with the previous week and it was down 54% from a year ago, that's all according to the mortgage bankers association

no surprise given that the average rate on the popular 30-year fixed jumped to 4.5% from 4.27% the previous week that's for loans with 20% down it's all because the market is now pricing in faster fed hikes, rate hikes than expected the number of borrowerswho can now benefit from a refinance is far smaller than it was just a few months ago mortgage applications to purchase a home which are less sensitive to weekly rate moves, they fell 2% for the weekend, and we're 12% lower than the same week one year ago economists are starting to revise their home sales forecasts lower for the year due to rising rates. a supply imbalance puts upward pressure on prices while overall purchase apps were down. >> diana, appreciate it.

a lot of folks are looking at those numbers these days still to come, what is the treasury market telling us about our risk of recession? we'll talk about the indicators from the credit markets next plus don't miss our interview with intel's ceo ahead of that senate committee's hearing on chip manufacturing later this morning. ay tuned you're watching squawk right here on cnbc ♪ ♪ hey, i get it, commitment can be scary. but not when you're saving up to 15% with subscribe and save at amazon. you get free repeat delivery on your favorite items and if things don't work out, you can always cancel.

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i think we do have a lot of trouble ahead. when it happens, i've told you this many times on the short-term i don't think anybody can really predict it. i think there's just too many variables in this type of a market i think there very well could be a recession or even worse. >> that was legendary investor carl icon just yesterday warning of a looming recession for decades. strategists have studied the yield curve and used it as a predictor for possible recession using the treasury market as a guide today. the flattening on this two and 10-year yields would be predicting such an event, but some strategists wonder if it's still an indicator also joining us is cnbc's senior

economics reporter steve liesman and cnbc's on-air editor, rick santelli good morning to all three of you gentlemen. jonathan, i'm going to start with you, going too fast are you with icon or not >> well, i mean clearly the yield curve is a good indicator of recessionary risk but, you know, there's so many different ways you can spin the data i mean, if you look at the yield curve let's say between 3 months and 10 years it's reasonably steep and would tell you you're not likely to have a recession the long end of the curve going up is also telling you right now the economy has a huge inflation problem not a recession like problem. so there's a lot here pooparse before making the assumption that we're going to careen into a recession over the next year >> steve do you think a recession is in the make here?

>> you know, i think things are different this time and i think somebody just threw tomatoes at me when i said that. it's a very interesting situation, andrew, because if you were coming out of a pandemic you would say, yeah, things are difficult here. the fed has to raise rates with high inflation and inflation going higher right now the trouble is you have the economy coming out of this covid crisis that we've had, and that engenders a lot of economic growth you have this very low unemployment rate. so, look, i may be the last guy who thinks it's possible for the fed to pull off this soft landing, but i do think it's possible if the fed acts in a steady way, if it can get in front of inflation, that the growth of the economy coming out of covid -- the other thing, andrew, is i'm always a little bit skeptical of derived numbers that predict things in the future that are different from if i looked at the economy or the fundamentals

the two tenth spread is a derived number no one even arrives at that numberch it has worked in the past, but it has to be negative and it's a little unclear as to why it works >> rick, i'm assuming you think there's a hard, hard landing coming >> no, no. never make any assumptions, andrew i think when we talk about markets the predictability factors with regard to how they foresee recessions is probably overestimated a bit. i think in this particular instance outside of steve liesman it's unusual this time think about it normally you hear words like normal, gradual with feds raising rates so things like t-bills that are optional every week, they'll follow every week. they don't leave term structure, they're building in so the normal route we look at

whether it's three months to 10 years or tens to twos, they're not showing us, in my opinion, the right stuff. if you look at three months to two years, that's where the anomaly is in other words, t-bills every week are reflecting real world rates. the two-year note yield somewhat out of control kind of predicting an aggressive fed very unique circumstance, and by the way, the relationship between three months to two-year is critical here because the real research on the yield curve was done three months to ten-year that relationship is as wide the difference is as large as it's been since 2002 so i think you kind of throw all that away. but think about the logic there, and think about what carl icon said t-bills will follow the fed. and if the fed is as aggressive as the market in twos, threes are showing, then around 2023

you're going to see distortions disappear a bit and some of your recessionary indicators in these yield curves are going to be more realistic >> jonathan, react to that, please >> first of all, there's so many indicators here the economy looks early cycle. so job creation is extremely strong we've seen in recent months the the ism which is a great indicator of the industrial economy is fantastic the fed has -- the new york fed, the cleveland fed has a recessionary model, and it's actually substantially below avr, and it's lower than it was over the -- over the summer. financial conditions, the ability of companies or individuals to make their loan payments or rollover a loan, things like that is reading that there's almost no stress whatsoever in the system so is lis theflation we're seeing, is it going to eventually cause the fed to choke this off, and maybe will

that cause some recessionary risk absolutely is it going to happen in 2022? i don't think so i think the key here is the business cycle is going to be short. economic cycle 7 to 10 years, maybe this one is four but right now we're less than ten years into this and it's too soon to call this a recession. >> we're talking about this in a little bit of a vacuum and maybe we should be talking about it in a vacuum, which is the vacuum of the fed. we haven't really introduced the other topic of the day which is ukraine and what's happening in europe, also what's happening with energy prices talking about jamie dimon's marginal plan and all these other factors. how do they factor in? >> well, it was interesting powell on monday, you know, the jury was out as to how he was going to judge the ukraine war

was it the uncertainty or the inflation? when he decidedtist the inflation the bigger policy for his economy, i think that's where we are right now there's a commodity price shock. interestingly powell spoke and he laid out a very hawkish message, and what did oil oil prices do, they went up. that's a fiscal issue that's going to have to be dealt with let me just go back to my prior answer, which i expressed optimism and be the reporter here and point out i listened to a presentation yesterday by larry summers to the economic club of new york, in which he basically was saying you can't handle the truth if the fed doesn't get help from all these things we were talking about, the rebounding of the u.s. economy from covid, other factors, re-establishment of supply chains and removing the

bottlenecks, what the fed has to do to actually battle inflation is going to surprise an awful lot of people including the market sommers was talking about the need to the raise not the nominal funds rate but the real or inflation adjusted fund rate up to where it's positive. if we have inflation where it's 5%, a 5% fund rate is zero and offers no restraint to the economy. actually the battle to inflation is going to engender a much higher funds rate. >> what we're really talking about so a lot of times recessions aren't great for a stock market so a lot of time the stock market will go down in

anticipation of a recession, jonathan here's what i'll say some people call jeremy siegel a permeable -- i know carl i've known him for 30 years, i think. he's a genius. he went down, and back to $17 billion, whatever he's got he's a genius, but he is a perma bear 30 years ago he was bear, 25 years ago, 20, 15, 10, 5, always bearish on the overall markets >> on the macro. >> on the mack ro, but it's gon so it wasn't splart to be bearish. >> if you think we're going to have a recession, the stock market falls on average by about 35%. so if you think we're going there, and i clearly don't, then, yes. i want to comment on something that steve liesman said and i think it's very similar to what we learned from larry somers

over the last 60 years fed funds has averaged about 1.5% below nominal gdp. it's expected to be 8.8% this year if you really want to truly fight this inflation, the number that you're going to have to get to on fed funds is much, much higher than anyone is going to be comfortable with. and it probably will choke us. and right now the consensus view is that supply chains will ease and the inflation will kind of drain away on its own, and therefore we should just be hopeful and calm down and hope this will go away. i'm pretty optimistic in general, but i don't think this inflation goes away as much as the fed and everyone wants it to >> okay. we are going to leave the conversation there >> so jonathan, are you selling into the strength or buying on -- i still don't know what

you said >> i think the fed stays behind the curve is the bottom line i think they're going to move up but not enough to choke off the economy. >> so sell stocks or buy stocks? >> but, jonathan, that's not acceptable that's what's wrong with that idea is if you turn around a year from now or two years from now and inflation is still waging the fed is going to have to take further action >> stocks will ultimately reflect inflation. >> but good or bad, rick >> if you look at 6 to 12 month view it's notwhat -- >> you said higher >> we are going to leave the conversation there for now thanks, guys going to send it back to beck e. >> thanks, andrew. when we come back we'll have your morning corporate headlines. "squawk box" will be back after a quick break. this is the new world of work. each day looks different than the last. but whatever work becomes,

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in our headlines this morning the unionization effort at starbucks continues to gain momentum workers at a cafe in the company's hometown of seattle have now voted to unionize bringing the nationwide total to

seven cafes. however, there are petitions to hold union votes that's in process at 150 locations of course there are 9,000 stores for starbucks across the country. apple services were off-line for a second straight day on tuesday. users of apple music and other services saw outages for several hours. still no word from apple what caused those outage. and student loan borrowers have spaered about $195 billion to date the loan payment moratorium continues through may 1st, and there is a possibility it could be extended further, one of the last vestiges of covid relief. s&p futures down by 20, the nasdaq down by 110 we're going to be talking technology right after this break, after the 2% gain we saw yesterday and the run we've seen all week

and later, the ceo of intel will join us pat gelsinger on the hill this morning to talk about chip manufacturing and the shortage with the sennant commerce fommittee. bere he does that, though, he'll speak to "squawk box" live we'll be right back. 24/7 support when you need answers, plus some of the lowest options in futures contract prices around. [ding] get e*trade and start trading today. i didn't know my genetic report could tell me i was prone to harmful blood clots.

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so you can be ready for what's next. get started with internet and voice for $64.99 a month. and ask how to add securityedge™. or, ask how to get up to an $800 prepaid card. when the fed pivoted to a more hawkish stance late last year, technology stocks struggle large cap tech stock names all

taking off about a week ago. those stocks are all up more than 5% just in the last week alone with growth outperforming even as rates have started to move higher the last couple of weeks. investors are likely wondering if technology is now the place to be. for more on that let's bring in dan ives also a market reporter at "the wall street journal" money and investing team if these higher rates were the reason we were concerned with these technology stocks, why are technology stocks up so sharply as rates have really started to climb? >> that's right, becky it's been such a mind-boggling ascent some investors are saying do we have a stagflationary period coming, and you look at the stek market and you see tech growth

on a tear. positioning was so fleshed out heading into the fed event some of these stocks were headed for a rebound. some of the stocks down significantly this time of year. >> you think this is a really good buying opportunity. where especially would you tell folks to be focused? >> i think tech stocks are oversold as we've seen in the last five to six years i think names like apple, microsoft, you look at cyber security, i think it's a golden a age for cyber security names and our view from here tech stocks are up 20, 25%, i can tell you investors 4 to 1 calling us looking for buys versus sells now it's exactly the opposite if i go back two, three months ago.

>> hey, dan, correct me if i'm wrong, i don't remember you having too many times where you haven't liked tech stocks, where you thought, okay, this is a bad time to buy. am i forgetting things >> i'll be lear. we didn'tpermeable the last ten years in tech, which is why i fundamentally view these as opportunities when you have sell-offs, that's when you get the high quality transnational names like apple, microsoft and others you look at some of these valuations that's the time to double down on tech, and that's where we see ourselves today >> what would be the biggest risk factor you see out there? what would be something that would actually change your mind and think this is not a time to invest in technology, dan? >> for us we do our checks and

see spending starting to really accelerate, then we start to question if i look at cloud and cyber security it's an acceleration into 2022 versus the deceleration i focus on our fundamentals and we talked about last week that in our view is the time to start compounding on tech stocks >> it's been just a stomach churning ride. yesterday the nasdaq logged the 39th move of at least 1% for the career so that's made it the most volatile quarter by that measure since 2009, since the great recession. i think one thing people are grappling with is think back to two years ago, march 23, 2020. that was the day major indexes bottomed i think one of the most enduring lessons for investors during that time frame is it has paid to buy the dip especially in

tech so i think that makes kind of this break up with tech especially hard for some investors, and that's why we've seen these huge back and forths between tech and value and cyclical corners of the market this year. >> thank you beth for joining us this morning it's good to see you it is just after 8:00 a.m. in new york. and you're watching "squawk box. we're live from time square. take a look at the u.s. equity futures at this hour still got about an hour half to go before the market opens but looks to open off right now. nasdaq looking to open down about 104 points in a couple minutes we're going to be talking to the ceo of intel. it's going to be our very special guest ahead of the senate commerce committee's big hearing today on the future of

manufacturing for semiconductor chips right here in the united states but first before we do that, i want to get straight over to dom chu who's looking at this morning's top movers at the domino >> we're going to start here with a check on some of the most popular tickers searched on our website cnbc.com from yesterday's voltime session. you guys were talking about growth versus transition right now i can tell you ma macrodize dominates. number one is the ten year yield still. and both the two year note yield and ten-year two-year interest rate spread are all in the top 20, so there's a lot more focus on that bigger picture individually wise tesla,

alibaba, gamestop and nvidia all on the top 12. also the worst performing stock in the premarket and the s&p 500 so far right now is adobe. adobe shares actually are down about 3.5% after the bell yesterday the big software maker comes out witherts reports actually better than expected earnings and revenues it was the current quarter forecast for both that disappointed some traders and investors out there as a result adobe shares down about 3% in the premarket. and then we'll move to the best performing so far premarket stock in the s&p 500 that's general mills, the big food processor, food producer is out with earnings this morning up about 3.5% here, better than expected results people are still, andrew, eating at home. the covid pandemic trends are still sticking around so keep an eye on those general mills

shares i'll send things back to you, andrew >> at the domino, thank you, sir. breaking news on the vaccine front now. meg terrell joins us >> moderna saying its covid vaccine for kids under the age of 6 met its primary study goals with two doses, and that they plan to file with regulators in the u.s., europe and others within the coming week now, the primary goal of this study was an immune response they're trying to show a similar antibody level in these age groups 6 months to under 6 years to adults ages 18 to 25, and they showed that this showed similarly low efficacy or at least lower efficacy against mild disease with this quarter dose in kids as you see with two full doses in young adults. so about 38% in kids age 2 to 25 46% in kids age 6 months to 2

years old. moderna found tolerability with this dose was consistent with other commonly used pediatric vaccines the rate of any fever over 100.4 was about 15 to 17%. high fever was very rare they said no new safety concerns were reported as well. guys, it's been a roller coaster for parents of kids of these age groups waiting for pfizer and getting these delays guys >> roller coaster for parents and i couldn't help think of the roller coaster for mrna, for the stock itself remember we thought, wow, pfizer

hasn't moved nearly as much because it's got all this other stuff, and we need to go back a little further on that, right, meg? i don't know what were we thinking? vaccines every six months or the potential for the technology itself or it's just the typical it goes way too far -- the pendulum goes way too far, it excitement and love of a story stock gets it all the way up to what was it 450? >> yeah, absolutely. you see this a lot in biotech. people get very excited about things and valuations can go a little bit loopy of course in the middle of a pandemic when moderna was among the front runners and proved it was one of the front runners in vaccine development, there's a lot of love for this stock you know, there still is love for this stock this is a company still about a decade old and now improving vaccine technology with a lot of

stuff in the pipeline and building out globally. however, valuations have come back down. >> the headline $400 million worth of stock sasales you know an average price remember we used to talk about him selling at 80. do you know if he sold up in the 400s i guess it was one of those automatic stock sale plans ceos are into >> i'd have to go back and look into the time when the stock was the highest, but at least year to date he's been selling on this regularly prescheduled plan at the same amount every time. and so wherever the stock is, it's getting sold. moderna would point out, of course, he still owns a majority of his shares. these are all preplanned and not

around insider trading, but it gets a lot of attention. >> that's pretty nice. tough job. someone's got to do it thanks a lot of good. we owe pfizer and moderna obviously big time >> yes, we do. grateful when we come back our interview with intel ceo pat gelsinger ahead of this morning's senate hearing with the major chip makers right now as we head to a break let's take a quick check with what's been happening with crypto this morning. down slightly. bitcoin down either just below 3,000 so right about where we were yesterday this time. stay tuned "squawk box" will be right back. into the city, or far from it. you and all your friends, or just you and the open sky. the experiences we never forget come from the choices we make. including this one. the wagoneer.

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when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today. a group of top ceos is set to testify before d.c. lawmakers today to make the case for billions of dollars in chip industry funding john fortt joins us right now with a special guest >> joining me now intel ceo pat gelsinger. pat, good morning. i know you've got a busy day ahead. there's been a lot going on in the world since you first started making the case for the chips act funding, so to start

i'd just like to ask how does rus russia invasion of ukraine impact the need for chip manufacturing both in the u.s. and europe, and to what extent does it complicate your ability to not only get these built but also to get the raw materials to operate them >> pleasure to join you all today, and thank you, john, as always pleasure to chat with you. and today's senate hearing is very much about the urgency of getting chips act funded and underway clearly the ukraine situation just devastating and our heart goes out to those. we've extended our policies. we've given over $2.5 million to support the effort it does reinforce, though, the priority of what we're talking about. the world needs more geographically balanced but more resilient supply chains. while the russia-ukraine

situation isn't central to any supply chain for semiconductors it reinforces the geopolitical stability we have and the urgency around building spupply chains geographically resilient. it is essential we built these where we want them >> a lot of people are looking at what russia is doing with ukraine. as you mention that devastating invasion and humanitarian consequence but also looking at the dynamic between china and taiwan, and to what extent is that conversation you're having as you announce more build out plans in europe? >> clearly as we made those announcements last week, you know, there was a lot of discussions with the europeans, the prime minister of the eu,

president ursula vanderlen, and all of those reinforce that priority and given the situation and worldwide context we've clearly said for a while we're way too dependent on too few places in the world for something as critical as semiconductors for the future and the asian presence here is very significant as i've talked about before in 1990 80% of semiconductors were built in u.s. and europe. today 80% in asia. the chips act in u.s. and that in europe are to rebalance that supply chain, can we're very encouraged by what we've seen from our european counter parts. and the fact in some respects, john, they have moved ahead. they started a year later than the senate began work on its chip act and it's two member states begin to fund against it so part of my message today is urgency. the europeans have seen this and moving rapidly

and a big deal for us. >> put a finer point on that, please i believe you're going to point out in your testimony last year in 2021 wheres 25 trip manufacturing build outs were announced in south korea, japan, taiwan and singapore, just four in the u.s in your estimation is there a point at which other countries, other regions reach asquap velocity with their investments and it becomes impossible or just really, really difficult for the u.s. to catch up and if so how far are we there from there >> i do think we're in a precarious state as the intel founder andy gross said we're at inflection point and we're going to either invest in this industry or decline. and today 12% in the .s., half of that is intel this is precarious, and that's part of the reason for my urgency and passion on this topic right now. because i fear if it stops

dropping below 10% we might never recover and have a permanent dependence asia and other parts of the world that are geopolitically unstable. the rust belt of high tech manufacturing, we are under way. >> two questions for you one is a unique sort of choke point in the semiconductor world which is asml holdings based in the netherlands as you know has patents on these extreme ultraviolent machines which are critical to this whole complex working. how do you feel about that what should or should not be done about that, and what kind of expertise do we or do we not have in the united states?

and who can fill that gap beyond intel? >> clearly from the equipment supply chain asml, we have a strong partnership and we announced an extension of that partnership for the next generation euv technology. that said when you look at it, u.s. and europe have the technology we have created the manufacturing, the transistor tech technology just like the u.s. in a precarious state, so is europe that's going to be part of my testimony to congress as well today, that this becomes a joint initiative of u.s. and europe to rebuild the supply chain, strengthen it, align our export policies and see you have 80-20, now 80 and as the president of europe has said to see their 9%

today rebuilt 20% by the end of the decade the u.s. 12% rebuilding to 30% and if we were able to have 50% by the end of the decade in u.s. and europe in manufacturing, we would have set ourselves up for decades to come. oil reserves have defined geopolitics for the last five decades. where the fabs are for the digital future is important. >> pat, are you concerned we are dependent on asml, you are, too. >> absolutely. but we also have key companies like applied materials land research, some of our japanese partners, and we're going to invest heavily with them but we also see we hold many of these core technologies as well in the u.s., and that's why i say it's u.s. and europe, align our policies, align our strategy together >> pat, you make your chips, you manufacture your chips in a lot of places, some in the united states, but you've also got places like israel, ireland and

china. and you're right in talking about how this is becoming more of a national security issue this is something we do need to pay attention to, but how much pressure does that put on you and your manufacturing operations that you do have in china when you start talking in these ways that can sound kind of jingoistic. you're still going to have chip manufacturing plants there, and what kind of pressure does that put on you to deal not only with this administration but with the chinese administration as well >> and clearly our strategy and 53 years we have been u.s. centered and second in europe, and that continues to be our strategy, that our rnd and manufacturing investments will be first in the u.s., second in europe and then more modestly in asia and, you know, we do believe that that is the right position for us to take for the long-term, and we're seeking

congress' support. that said china is the largest chip maker in the world. about a quarter are consumed in china and about a quarter more are manufactured through china so half of the world's semiconductors go there. it's an essential market to keep investing and partnering with them in some manner because our revenues there enable us to invest in u.s. rnd and manufacturing even as we have some level of investment there so we believe it's an important strategy for us to carefully balance these two. it is a global market but one that we want to see the u.s. have unquestioned leadership for the long-term. >> can we do that, pat i know this is a broad question, but in the united states how's your talent pool coming out of college and grad school? i mean, we hear a lot of time about stem deficiencies in this country versus some other

countries. any millennials ever go in engineering? it's very hard i don't know, maybe generation "x" is our hope. >> yeah, i'll say three quick comments there one is just last week we announced a 100 plus million dollar initiative and the k-12 level to build that supply chain of talent for the future and this is also part of the chips act, the building of the work force in technology for the future secondly, we do see this as a great opportunity to move from stem to and broaden. and intel has been a leader in that for many years. over half of grad schools are far nationals participating in those in the stem field. i believe every graduate degree should come stapled with a green

card we want the best talent in the world right here building these technologies for the future, and our universities are a magnet for the best talent around the world. we should enable them to stay here for the long-term >> pat, it's john again. i want to focus ipon intel specifically for a moment. interestingly he said that he thinks in pc's intel has just about caught up with amd service wise with some distance to go in servers. i'm wondering what's your take on your competitive positioning product-wise right now, and then give us an update on process technology work. are you still on track to plan to regain leadership there >> yeah, and on the product side clearly with our last client product we've now pulled ahead, and we're very comfortable that we have a road map that will continue ahead on the space for

the future so doing well. on the server space, more challenging. but our next generation products have fire rapids which are going to the initial production on this quarter, which means just in the next couple of weeks we'll be announcing that we pull back ahead of the competition there, but that's going to be more competitive for the next couple of years, and we do see a path to unquestioned leadership in that space as well. on the process and technology side, john, i said boldly we're going to do five nodes in four years, an unprecedented rate of innovation well, with our alter lake product intel 7 is now shipping in production and ramping very well, so i'll say one of five done the other four are all on or ahead of schedule. and as we've seen the competitive landscape, you know, they may be slipping a little bit. we're accelerating a little bit. so our closure of competitiveness is progressing

extremely well the partnership that i already referenced with asml going extremely well and the broadening of our strategy to be a foundry supplier not just for our own chips, so overall our strategy is playing out we're executing well the competitive gaps are closing rapidly, and even though we've told wall street we're going to invest like crazy, we're lowering our free cash flow and earnings in the near term, we're making the right long-term decisions to unquestionably put intel back in the sustained unquestioned leadership position in the long-term >> what about on graphics? had some strong announcements from nvidia yesterday showing performance that was ahead of what some folks expected to see. where's the pace of your graphic rollout and process since you sort of started talking more about that in january?

>> yeah, those products launched this quarter so we're on track to begin the ramp of our products we're rapidly fixing that. those products will ramp quickly and we'll ship more than 4 million units this year. we're well on track to accomplish that, and we'll be ramping that product line very aggressively over the next couple of years. as i said on our investor day, i expect that to be a 10 plus billion dollar business for us over the next five years and we respect nvidia has been a good company, and they didn't done really great engineering, but we're going to now be competing with them in every dimension. we're ahead of them on data centered cloud we're unquestionably ahead in mobility and inference we're ahead. and going to be entering the training market with our havana labs and graphics. we're here, going to compete this is going to be a lot of

fun. >> you're clearly in investment mode, trying to convince congress to get quickly into investment mode, too thanks for being with us first on cnbc. andrew, back to you. >> thank you, john notice pat was wearing his -- don't miss the full coverage of capitol hill this morning. incluing an ininterview with the ceo of global foundries, the largest foundry company in the u.s. in attempts to ramp up global supplies. meantime president biden about to head to europe for talks on the war in ukraine. what more can america's allies do to squeeze vladimir putin we're going to ask former senator heidi heitkamp stay tuned you're watching "squawk box" right here on cnbc your shipping manager left to “find themself.”

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all right, now, back to a story we've been talking about all morning.

jamie dimon calling on the white house to create a modern day marshall plan to try to achieve energy independence. we haven't had a lot of details, but that hasn't stop us from talking about it all morn. i think the big question is what do they mean when they talk about a marshall plan? is this something for american independence, so europe is independent from dependent from russia when it comes to energy what does this really mean >> yeah, becky, i think it's the latter i think it's this idea and drawing that analogy in that post world war ii period as you mentioned earlier, this idea of rebuilding europe in a way that makes it more energy independent from russia. as you mentioned i do have a bit more detail to share with that meeting with jeremy dimon and 15 executives that took place i spoke with a source familiar with the matter who said dimon is focused on what he described as a marshall plan for short-term energy security he wants the government to be

more aggressive and surging investment in more liquefied natural gas facilities in europe and wants more investment in new technology like hydrogen and carbon capture type technology that was reported earlier by axios, but one other thing the article didn't mention was dimon is said to be pushing for an easier permitting system for renewables, things like wind farms and other renewable energy sources. we've heard throughout the years on big infrastructure investors about the big red tape bure ocacy that goes into building one of these dimon is urging the government to make it more stream lined so more people are incentivized to build them they should be focused on energy security as it specifically applies to russia. >> did you get any insight as to the reaction from the white

house, from the administration when it comes to something like this >> you know, i would assume they are pretty much aligned on those goals. the real sticking point has been throughout this whole process is this idea of kind of compartmentalizing what happen between the short-term and long-term because it's clear in the short-term there's a stake with regard to the energy coming on the system and the ability to really siphon ourselves away from actors we don't believe are acting in the best interest of democracy and so forth and the things the government has stated, on the other hand there has been a stated goal as been the case for years now especially in the democratic party which is what a lot of these business leaders have also been pushing so how do you kind of pull those two things together at the same time i think is the big, big question here. how do you establish priorities? how do you ensure the investment

dollars are going to, you know, the highest return at least in the short-term but also in the long-term because that's what business is focused on >> yeah, unfortunately, there's no such thing as major investments going to be made for the short-term when you're talking about these projects that take years to kind of bring online so short-term, there's nothing there. leslie, thank you. >> yeah, we always hear about walking and chewing gum at the same time. it's tough to walk when you're cut off at the knees very difficult coming up president biden getting ready to meet european leaders in brussels. russia's war in ukraine is at the top of the agenda. what agreements, if any, would nsturoesgrs? stay tuned for that. "squawk box" will be right back.

welcome back to "squawk box. russia's central bank announcing stock market trading in the country will esume tomorrow, and that's the first time for the first time since the ukraine invasion as 33 companies in the moskow exchange index will be allowed to trade

but there will be a ban on short sales in most of those names, all those names, in fact we are going to now have -- i don't know how much of a debate president biden is getting ready to head to europe for talks on russia's war with ukraine. and "the wall street journal" talking this morning about the white house prepping for sanctions on more than 300 members of russia's lower house of parliament. >> you're being very thoughtful. you're being very thoughtful about reading this because the prompter's stuck it wasn't moving so i understand >> what we're going to do now though is talk about what the administration can or cannot do about all this let's get heidi heitkamp on the line here. i know she's going to be joining

us in just a bit good morning to both of you. it's great to see you. let's talk about what you think really needs to happen here in terms of to the extent you think the u.s. government has an opportunity to squeeze -- do we have leverage? what leverage do we have >> i'm going to go to the ambassador first if i could. >> of course this is a chance for the president to meet with the european colleagues, the other prime ministers and continue to talk about the great unity that's showing, but i also think that he's going to talk about more can be done, and we all know more weapons are going to be needed because this obviously is going to last a while. and i think that talking about energy supplies is going to be

key. i know the europeans are going to talk to president biden about more lng, more oil from america as well as other sources and i think the president will hear that and it will be very helpful. >> hey, heidi. what do you think the appetite is among democrats specifically to bring more oil and gas online we talked a lot this morning about this marshall plan that jamie dion emphasis reportedly proposed to the administration >> well, it's absolutely critical that we face the reality that if we're going to secure western europe we have to help them with energy independence we have an abundant source of energy we know where it is in north dakota, in the rest of the country. we also have an abundant source of natural gas, which is something that wasn't true --

>> my question is what is the appetite among certain members of the democratic party who have been dare i say reluctant to go there? >> i don't think they're going to have a choice i think that right now if you are serious about helping ukraine and securing the future of western europe as our democratic allies, you better face-up to the fact that we cannot convert on renewables alone. we have to especially, as the ambassador said we have to do something with natural gas we have to expedite those terminals. the problem is not our source of minerals, it's the infrastructure that's been shutdown, the investment in infrastructure we have to ramp that up, and i think smart democrats are going to face the music and say it's time to build infrastructure and look at long-range planning, not simply slogans about what we're going to do on climate

>> ambassador, what do you think about that because obviously the green new deal proposals by aoc and others on the progressive side of the democratic party have pushed very hard on these issues. >> i agree with heidi has to say, but i also believe it is important we talk about america being the country that does produce energy in a most climate sensitive way. we have a great record on the clean production, the best in the world. so when we're doing natural gas terminals, which is exactly what heidi just said we need to do more of it, expedite those regulatory processes, we can do this cleanly we have been energy independent. we have excess especially of natural gas, which is what europe needs the most right now. so, yes, we can do it. and i hope the democrats will work in a bipartisan way to come

up with a plan to work with the administration that says this is an emergency we now know what russia can do we never thought they'd be so brutal, but they are and we've got to face that with strength >> ambassador, before i let you go just on a different topic, oligarchs. what pressure can we eely be brought to bear on them? and do they have any real flu influence, do you think, over putin? >> to be honest i think the sanctions are the right thing to do, but are they going to be effective? i don't think putin or the oligarchs care about sanctions, and i think the oligarchs have as much as they need or want right now. what i -- the other point that i think is important here now, though, and especially because president biden is at nato is to

get our european allies to talk to china like we're talking to china. tell them that we will have a united front on sanctions against china if they help russia with the military help that russia is asking now. i think that may be the most important thing that comes out of this nato meeting that is so very important, and the europeans can get together and if we can be solid on that, that can make a big difference >> senator, what do you think about going hard at china? does china come back hard at us? who's got the leverage in that >> this is the $1,000 question -- $10,000 question, right? so we have got to engage in a way that brings china into the rest of the world order that what russia did is completely unacceptable they cannot continue to fund this war by buying russian

products and continuing to do commerce with russia we've got to re-establish the order, and i think it's the biggest challenge that the biden administration will have i think we're going to see nato pull together. we've got challenges in energy, let's meet those challenges. but right now we have a huge problem with the suspected and ongoing alliance between china and russia and then china long-term. >> but don't they have the leverage over us >> well, we've got an absolute -- i mean we found out the leverage during the pandemic when our supply chains were completely disrupted we've got to learn from that we've got to build what we need to build here in this country whether it's in the pharmaceutical industry. whether it's in the aluminum industry we've got to isolate china globally you know -- most of you know i was a big fan of the transpacific partnership i think that was a big mistake for both parties to walk away

from that. we could have formed an alliance that would put more commercial pressure on china. we didn't do it. it's time to talk regionally about what we can do to realign our -- the work with our allies to realign the power base especially in asia >> ambassador hutchinson, senator heitkamp, great to see you both appreciate your eperspective on all of this. jury box coming right back all of this. jury box coming right back pn all of this. jury box coming right back

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let's get down to the new york stock exchange. jim cramer joins us right now. and a couple things i've been waiting all morning to ask you t interest rates yields rising so quickly especially if you're thinking of trying to lock in a mortgage these days it's scary watching that and tech take off at the same time does it mean it's an all-clear here it's okay to come back into the water with technology? >> i'm kind of tempted to say yes to that. we heard diane talk about the higher rates, and i think one of the things that jay powell has to do is -- the price of housing is going up. what i'm looking at -- we have to watch adobe their quarter was okay if they can reverse, i think it's an all clear. historically we have gone down this much and had 50% -- it

usually is an all clear. we've had a lot of stocks that are down badly i think yesterday was a convincing bounce. i would be tempted to buy the stocks coming off. even like a meta platform. i think it's interesting here. there's a lot of stocks that are very, very interesting particularly faang stocks have come down a lot that i like here. >> all right that's a big endorsement i'm going to listen to it. >> all right yeah i mean, are you kidding me i love jamie but stick to your -- stay in your lane, partner. >> what do you not like about it i have to admit, i'm confused. i don't know what the purpose is. >> no, i mean, what we need -- obviously -- >> i like the idea of having -- i like the idea of having a plan a long-term plan that is laid out that crosses over administrations that says this is what we need from a national security perspective

it makes a lot of sense to me. i don't know i understand all the other facets. >> no. i mean, you know, he's calling for more liquefied natural gas facilities in europe what about the united states i don't know i'm not buying it. >> i wasn't sure we got all the details we needed from that. [ laughter ] >> i agree with you. >> i couldn't figure out how -- what they were talking about in terms of the mash shall plan. >> i thought it was funny. >> jim -- >> a comedian trying to be serious -- >> that's true one thing on the mortgage rates. i hear your point about needing to slow down housing prices, but it's not going to make housing more affordable if mortgage rates go up. it means that, you know, the money i'm paying as a home buyer is going to be more to the bank and maybe less to the seller it's a crazy situation it's not enough supply i don't know how quickly we can tackle that or fix that to the point that not only does housing come down but rent prices, too >>well, the problem is we need

more rental. you know, the conference call is eye opening. he said, look, wages are going up and more people are buying houses but home builders are up they keep raises prices. if they can stop, that would break the cycle. we have to break the cycle we have to housing is out of control. home builders are making a lot of money you're right there's one month's inventory. we need to see it slow. >> yeah. i feel really bad for the people who aren't already homeowners. if you're selling one house and buying another, you're in a great position if you're renting and looking for a house, man, you've got problems >> you're dead right but, you know, powell needs a victory here he needs something to slow down and he's not getting it anywhere even general mills they have to get a win i'm pulling for him. >> me, too jim, thank you we'll see you soon okay see you.

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anticipate what customers need. because happy customers are music to our ears. genesys, we're behind every customer smile. this morning we saw the 10-year as high as 2.4 it right now president of --

predicted last year they would hit 10%. you've made note of powell's comments from earlier this week. i don't know the markets of some extent i don't know why you think you should have done 50 already and it shouldn't be a surprise that 50 might be what is needed a couple of times from here on out. it's already too late. >> very late, joe. i've been saying they should have started a year ago and started burying back the balance sheet by mid 2021 when there were signs the economy was recovering instead the chairman kept insisting the inflation was transitory if you recall from last wednesday, he claimed because his inflation forecast was wrong, 2 justifies his pivot as if two wrongs make a right. no, mr. chairman, it does not they are backed into a corner. they are heading toward a

stagflation. i wrote that first in the report which i put out in public last october but i feel even more likely we're heading toward a phase with the recession combined with high inflation rates. the fact that u.s. treasury yield curve is moving toward inversion, joe, tells me that is clearly the signal it's giving don't believe the market look at the bond market. if you go back to october of 2007, 7500 hit the record high that meant the economy was very strong, indeed i wrote a report saying we are heading toward a recession because in december of 2006, the yield curve inverted i was called a fear monger how can i be saying that when equities was so high

sure enough, two months later the great recession began and the equity market did not catch it we are in a similar situation in terms of market signals and at the same time go back to 1978-1979 in terms of looking for a period with a recession combined with high inflation rates. that is pernicious it's very difficult to control, joe. >> i mean, that's a way to think. you're going to be at 1% again because of if what you say comes true, there's going to be a slow down and rates will come down or will they stay high in the face of a recession because of inflation. that's even worse. the latter >> yeah. >> let me go quickly it's the latter. i've been saying the whole yield curve will shift upward. that's been happening the last few weeks. and what i expect is despite a

recession, even if the yield curve inverts, we'll see higher interest rates higher yields both under the 2-year and 10-year. >> okay. all right. we'll have to hand it over we've got barely enough time to say goodbye. futures are down bitcoin is down. andrew is back make sure you join us tomorrow becky, good to see you "squawk on the street" is next good wednesday morning welcome to "squawk on the street." i'm carl quintanilla with jaim cramer the president heads to brussels this morning with potentially new sanctions and energy at the eu on day 28 of the russian invasion of ukraine. we begin with the ceos of intel and micron amoss the chip industry leaders set to testify before a senate panel pushing for manufacturin