build a better america the first value is fiscal responsibility the previous administration, as you all know, ran up record budget deficits. in fact, the deficit went up every year under my predecessor. my administration is turning that around. last year, we cut the deficit by more than $350 billion this year, we're on track to cut the deficit by more than $1.3 trillion $1.3 trillion. that would be the largest one-year reduction in the deficit in u.s. history. and here's how we're achieving it, this record deficit reduction. first, we're growing the economy. we created a record $6.7 million jobs since i took office and generated a gdp growth of 5.7%, the best economic growth we have seen in this country in over 40 years. this has led to substantial increase in government revenues

and dramatically improved our fiscal situation secondly, this record economic and job growth has made it possible for us to responsibly and significantly cut back on emergency spending earlier in the pandemic, it was right to give people help to make ends meet and to keep this economy going. because of the progress we have made, dealing with these emergencies, the labor market is strong and unemployment claims are at a historic low. we entered the pandemic, unemployment assistance programs because americans are back to work i'm calling for a new pandemic subsidies for large businesses to not continue those because those businesses are back and moving again as well but because we have to put this economy in a strong foundation, even the delta and omicron variants of covid-19 and the cost of putin's aggression in ukraine have not required additional fiscal package for

state and local governments. but we still spend what we need to spend to continue to fight covid. those expenditures will be dramatically less than last year compared to 2020, we're reducing the size of the deficit relative to our economy by almost two-thirds reducing inflationary pressures and making real headway cleaning up the fiscal mess i inherited after my predecessor's fiscal mismanagement, we were reducing the trump deficits and returning our fiscal house to order. now, the budget i'm releasing today will continue this approach it makes prudent investments in economic growth and more equitable economy while making sure corporations and the very wealthy pay their fair share i would add, nobody making less than $400,000 a year will pay a penny more in federal taxes. we can do this by, one, passing

legislation that lowers cost for families on things like child care, health care, and energy costs. while lowering our deficit at the same time. we can give hard working parents raising children tax relief that gives them just a little bit of breathing room and lowers child poverty. we can give medicare the power to negotiate lower prescription drug prices. this will bring down the cost for seniors and reduce the deficit by hundreds of billions of dollars congress can do this all right now. they're debating it now. we can also restore fiscal responsibility the trump tax cuts added $2 trillion in deficit spending and largely helped the rich and largest corporations under my plan, as i said, no one making less than $400,000 a year will pay additional single penny in taxes no one if you don't make $400,000, you won't pay an additional penny on taxes. the wealthy corporations will

finally begin to pay their fair share. for most americans, the last few years were very hard stretching them to the breaking point. but billionaires and large corporations got richer than ever right now, billionaires pay an average rate of 8% on their total income 8% that's the average they pay. now, i'm a capitalist. but if you make a billion bucks, great, just pay your fair share. pay a little bit a firefighter and a teacher pay more than double, double the tax rate that a billionaire pays that's not right that's not fair. and my budget contains a billionaire minimum tax because of that. 20% minimum tax that applies only to the top 100th of 1%. 100th of 1% of the americans will pay this tax. the billionaire minimum tax is fair and it raises $360 billion that can be used to lower costs for families and cut the di

deficit. my budget also insures corporations pay they fair share. in 2020, 50 fortune 500 companies that made $40 billion in profit combined but didn't pay a single solitary cent in federal taxes. my budget raises the corporate tax rate to 28%, far lower than the rate it was between world war ii and 2017 when it was lowered as it is today last year, i rallied more than -- some of you were overseas with me, 130 countries to agree to a global minimum tax for corporations doing business in their countries to put an end to a tax system that rewards multinational corporations for shipping jobs and profits overseas and avoiding taxes at home it's my hope that congress enacts this law this year so i can sign it and we can get to work the second value my budged reflects is security security at home and security

abroad my budget tackles security in two key ways first, it secures our communities at home. this is an issue families in every part of the country face i have said it before. the answer is not to defund our police departments it's to fund our police and give them all the tools they need, training, and foundation, and partners and protectors that our communities need the budget puts more police on the street for community policing so they get to know the community they're policing allows the bureau of alcohol, tobacco, and firearms and the fbi to hire the agents they need to help fight gun crime and other violent crime in our communities, and funds body cameras and makes sure police work with our local communities and are accountable to these communities. it funds crime prevention and community violence intervention. drug treatment, mental health, criminal justice reform, and re-entry for people coming home after incarceration.

all ways to reduce crime and proven ways. security also means national and international security this budget provides the resources we need to keep americans safe insuring that our military remains the best prepared, best trained, best equipped military in the world this budget also provides additional funding to forcefully respond to putin's aggression against ukraine and its economic humanitarian and security consequences the world has changed. in addition to dealing with terrorist organizations, for the second quarter of the 21st century once again face nothing creased competition from other nation states. china and russia, which are going to require investments to make things like space and cyber and other advanced capabilities including hypersonics. and thisu will be among the largest investments in our national security in history some people don't like the interest, but we're in a

different world today. america is more prosperous, more successful, and more just when it is more secure. we can restore fiscal responsibility and safeguard our security at home and abroad while meeting a third value, i call building a better america let's provide universal preschool, cap the cost of child care at 7% of a family's income. like many families, that would cut the cost of child care in half and it will make college more affordable my budget doubles the maximum pell grant, families making under $50,000 to nearly $13,000. and helps more than 8 million students who rely on pell grants pay for college. my budget invests in building more homes to keep up to deal with the skyrocketing cost of housing for the middle class and poor my budget lowers family energy costs with tax credits to help people make their homes more efficient. research and development abroad,

the reach of solar and build a clean energy future. my budget also invests in other areas of bipartisan common good. i call them unity agendas. i spoke to them at the state of the union. beating the opioid epidemic. taking on challenges of mental health, supporting our veterans and ending cancer as we know it. this budget includes investments to get americans the mental health services they need, and we need them and when it comes to fighting cancer and other diseases, my budget funds an organization called arpa-h, at the department of health, and it stands for advanced research projects for health it's based on darpa, the defense department program that led to breakthroughs in technologies like the internet, gps, is so much more. arph will drive breakthroughs to prevent, detect, and treat diseases including alzheimer's, diabetes, cancers, and more.

here's what this all adds up to. historic deficit reduction, historic investment in our security at home and abroad, by modernizing our capabilities in both areas and unprecedented commitment to building an economy where everyone has a chance to succeed. a plan to pay for those investments that we need as a nation that's what we do. i look forward to working with the members of congress, democrats, republicans, and independents to deliver this budget and keep delivering for the american people. i want to thank you all and may god bless you all and may god protect our troops kelly o'donnell, nbc >> thank you, mr. president. do you believe what you said -- thank you, sir do you believe what you said, that putin can't remain in power? or do you now regret saying that because your government has been trying to walk that back did your words complicate manners?

>> yes, three different questions. number one, i'm not walking anything back. the fact of the matter is i was expressing the moral outrage i felt toward the way putin is dealing and the actions of this man. just brutality half the children in ukraine i just come from being with those families and so but i want to make it clear. i wasn't then nor am i now articulating a policy change i was expressing moral outrage i feel >> personal feels, sir they're personal feelings. >> my personal feelings. secondly, you asked me about -- what was the second part >> does it complicate the diplomacy of this moment >> no, i don't think it does you know, the fact is that we're in a situation where what complicates the situation at the moment is the escalatory efforts of putin to continue to engage in carnage and the kind of behavior that makes the whole

world say, my god, what is this man doing? that's what complicates things a great deal but i don't think it complicates it at all. >> mr. president - >> let me go to steve, reuters >> mr. president, thank you. when you say you're not walking anything back, you do feel that vladimir putin should be removed from power is that what you're saying >> i was expressing just what i said i was expressing the moral outrage i felt towards this man. i wasn't articulating a policy change i think that, you know, he continues on this course that he's on, he is going to become a pariah worldwide, and who knows what he comes at home in terms of support >> are you concerned this remark might escalate the conflisk? >> no, i'm not i'm not at all look, the other thing is that a couple people have asked me, you

know, other governments have suggested that this is a problem. i'm escalating things. no weakened nato. no, it hasn't. nato has never, ever, ever, ever been as strong as it is today. never. >> so saying he cannot remain in power does not mean regime change, what does it mean in your view? >> it means that i would hope -- it was expressing my outrage he shouldn't remain in power just like, you know, bad people shouldn't continue to do bad things it doesn't mean we have a fundamental policy to do anything to take putin down. >> what made you add that? that wasn't in your prepared remarks. what made you add that >> because i was talking to the russian people the last part of the speech was talking to the russian people, telling them what we thought i was communicating this to not only the russian people but the whole world. this is just stating a simple

fact that this kind of behavior is totally unacceptable totally unacceptable and the way to deal with it is to strengthen and keep nato completely united and help ukraine where we can cleave, you had a question >> thanks, mr. president on your budget you have said repeatedly at the state of the union that you're not for defunding the police i do wonder how much emphasis you think should be put on alternative forms of crime prevention, not just to funding the police, but crime reduction in communities >> significant amount. i have laid that out in detail in the budget. for example, we do know that intervention programs work we do know that what police need, they need psychologists in the department as much as they need extra rifles. they need people who are in the department who can deal with the

crisis that the police are going through as well. dealing with their crises, dealing with their mental state and how they're handling things. they need social workers engaged with them. i lay it all out and it all works if you see these community intervention programs, they work they actually reduce crime they significantly reduce crime. that's a big piece of it >> follow up, is any of it related to political pressure from republicans saying that democrats are soft on crime, that, you know, you guys are leaning to the left. >> when i first got elected, i was beat up because i supported the police too much for the previous 30 years. no it's what i think. osma >> thank you, mr. president. are you -- are you willing to try to meet with vladimir putin?

and i have a quick follow-up to that, when you last met with him face-to-face in geneva, you described that as a productive conversation you said he did not want a cold war, and do you feel given the actions that have happened over the last few months, i guess i'm asking what has changed in his mind >> i don't know what's changed in himind. his behavior has changed when we met, remember what we were talking about we were talking about setting una strategic dialogue and talking about the relationship of nato and russia and facing off in the regions and how we could have more transparency and all the rest it was a normal discussion i had going all the way back to kassigen and others back 100 years ago when i was a young senator, so what changed was nothing remotely approaching that remember, when we first met, he i said i have two objectives he said i have two objectives. one is to make sure that they

never become part of nato. two, to make sure there are no long range missiles in ukraine i said we can deal with the second one easily, but we can't close the door on the first. because when we talk about missiles we talk about what's also on the russian border heading toward europe. do both. and then if you noticed, that demand list of his, not with me, with others, has escalated significantly in terms of what he thinks is necessary thank you. >> thank you thank you very much. >> i know you're going to ask a really nice question >> it's an important question, i think. are you worried that other leaders in the world are going to start the doubt that america is back if some of these big things that you say on the world stage keep getting walked back >> what's getting walked back? >> made it sound like just in the last couple days, it sounded like you told u.s. troops they

were going to ukraine. it sounded like you said it was possible the u.s. would use a chemical weapon, and it sounded like you were calling for regime change in russia, and we know -- >> none of the three occurred. >> none of the three occurred? mr. president? >> you interpret the language that way i was talking to the troops. we were talking about helping train the troops, the ukrainian troops that are in poland. that's the context i sat there with those guys for a couple hours that's what we talked about. >> when you said you're going to see when you're there, you were not intended - >> i was referring to being with and talking with the ukrainian troops that were in poland >> when you said a chemical weapon use by russia would trigger a response in kind >> it would trigger a significant response >> what does that mean >> i'm not going to tell you why would i tell you you have to be silly >> the world wants to know >> the world wants to know a lot of things. i'm not telling them what the

response would be. then russia knows the response >> mr. president - >> all right, i'm going to take two more questions one, two >> mr. president, thank you. i still want to get back to your original words that he cannot remain in power. can you help us understand, you have more foreign policy experience than any president who has ever held this office. whether those are your personal feelings or your feelings as president, you understand why people would believe you as someone commanding one of the largest nuclear arsenals in the world saying someone cannot remain in power is a statement of u.s. policy, and also, are you concerned about propaganda use of those remarks by the russians >> no, and no. >> tell me why you have so much experience. you are the leader of this country. >> because it's ridiculous nobody believes we're going to take down -- i was talking about taking down putin. nobody believes that number one number two, what have i been talking about since this all

began? the only were that's worse than one intended is one that inisn't intended i was expressed my outrage at the behavior of this man it's outrageous. it's outrageous. and it's more an asperation than anything he shouldn't be in power. people like this shouldn't be ruling countries, but they do. the fact they do, but it doesn't mean i can't express my outrage about it last question. >> thank you you have said that you're confident your comment won't undermine diplomatic efforts, but are you confident vladimir putin sees it that way, that he will not use this as an escalatory -- >> i don't care what he thinks look, he's going to do what he's going to do. >> you're not concerned he may see your language and view that as a sign of a reason for escalation, use that as an excuse to escalate given his recent behavior. >> given his recent behavior -- i shouldn't say that to you. given his recent behavior,

people should understand he is going to do what he thinks he should do, period. he's not affected by anybody else, including unfortunately apparently his own advisers. this is a guy who goes to the beat of his own drummer. the idea that he is going to do something outrageous because i called him for what he was and what he's doing, i think is just not rational >> you didn't say whether you would meet him again would you meet with him again? >> it's not a question -- the question is, is there something to meet on that would justify him being able to end this war and be able to rebuild ukraine that's the issue >> can you say yes or no, mr. president, whether or not you would be willing to meet >> it depends on what he wants to talk about. >> thank you >> last question >> what if he wanted to talk about negotiations >> you said supreme court. >> well, you can't leave that hanging. just real quick, two matters on

the supreme court. while you were away, there were reports about the wife of justice thomas and texts she had with former white house chief of staff mark meadows should justice thomas recuse himself from any cases involving the january 6th insurrection of former president trump at this point? >> i leave that to two entities. go ahead >> two entities. go ahead sorry. >> one, the january 6th committee, and two, the justice department that's their judgment, not mine to make. >> on justice thomas recusing, you don't think he should or - >> i said that i told you, those things get into legal issues in fact, i told you i would not tell the justice department what position to take or not to take. >> did you get any chance to watch much of the judiciary committee hearing -- >> i didn't get a chance to see any of it. >> the fact republicans were questioning judge jackson on matters like former sentences related to child pornography

cases or the definition of a woman, does the former chairman of the judiciary committee make sense to you >> this is one of the most qualified nominees ever nominated to the supreme court in every respect in terms of her disposition, her intellectual capacity, her experience and background, serving on additional courts a woman who is totally thoroughly qualified totally thoroughly qualified it will be a great addition to the court in my view thank you. >> thank you, mr. president. >> president jooid there to outline the broad strokes of his budget which was unveiled today. receiving the bulk of questions from reporters about comments he made on saturday about vladimir putin, saying the man cannot remain in power. president biden says he stands by that, he's not apologizing for it characterized it as moral outrage and said it is not a new

policy change. doesn't see it as an esclashz when it comes to the approach with putin welcome, everyone, to "closing bell." i'm sara eisen want to point out what's happening in the market. we have seen a little bit of a recovery in the final hour of the trade. at the low point in the day, we were down 300. the nasdaq has been the winner all day long, up 1%. small caps are lagging behind. coincided with an ft report, a financial times piece that came out suggesting cease-fire talks between russia and ukraine are moving at least, and that russia is no longer demanding denazi denazification let's talk more about what we heard from the president raymond james washington policy analyst ed mills is here, ylan mui, and kayla tausche join us the questions on russia front and center from reporters. what else did we learn as far as president biden's posture and to

that ft report, what might come next >> on the president's remarks, he was very clear that this was not a policy change that he was articulating, but more that he was sharing his personal feelings about president putin brrx but when specifically asked about whether he was worried it would possibly inflame tensions, he said no and he does not care how president vladimir putin interpreted those comments, and interestingly, where it concerns possibly those in russia or being seen as a comment that would attempt to stoke revolt or revolution or potentially a coup in russia, he said this remark which i found particularly interesting. he said that putin has become a pariah in the international community, who knows what he becomes at home. so certainly seeming to allude to that possibility even if it doesn't represent a formal policy change within the administration as far as those negotiations, ukraine and russia are set for yet another round of cease-fire

talks tomorrow in istanbul, turkey ukraine has seemingly appeared warmer to the idea of becoming a neutral state, joining the european union, and there was also a report in "the washington post" to that effect a few hours ago before that ft report about russia dropping that demand of denazification which is one of the demands he's been raising to nearly every world leader that putin has spoken to on this point. certainly, it is a positive development, although you have to continue to take a massive grain of salt into whatever you expect to happen tomorrow, sara. >> we are seeing the highs of the day. s&p up 19 points on just word of talks and cease-fire and negotiations ed, i guess it relates a little bit to the budget today that we got, the ideas from president biden. he wants to increase defense spending by 4% over last year's spending and a big jump from what we saw in the president's last budget. how much of that will actually see the light of day >> sara i think a lot of it.

i think this is a fascinating story in terms of year over year in the amount of capitulation that has gone on in the biden administration as it relates to the defense department spending. we're in a very different geopolitical world president biden highlighted that and unfortunately for the market, it's going to be these geopolitical events much more than a budget proposal that's going to move things but ultimately, when congress works on the budget this year, the top line numbers here probably only go up in budgets are going to be spent much more on defense than anyone had anticipated. >> it's interesting, i would have expected with that view the stocks would be up they have done well lately, but not so much today. ylan, of course, the president also talked about fairness when it came to the budget. he talked about the billionaires minimum tax and other things for wall street, including repealing the carried interest tax talk us through what's realistic here when it comes to some of

the more money centric proposals around taxes >> yeah, fiscal responsibility was one of the president's key priorities in this budget. you heard him talk about the importance of deficit reduction, of combatting inflation, and of targeted investments in spending and all of that messaging is very different from what they said last year, which was big, bold, ambitious investments which for senators like joe manchin and kyrsten sinema, just translated into expensive. what you really heard the president try to do in this budget is tailor that message to their concerns that unfettered washington spending was leading to higher inflation, but at the same time, both of those senators have also expressed some concern about proposals like the billionaire minimum tax as well as a higher corporate interest rate, so unclear how much support the president can actually get for some of the revenue razors he's hoping to use in this bill to achieve that fiscal responsibility he says is

so important >> especially the billionaires tax, right, ed hasn't this been tried before and failed they couldn't get past the democrats even the whole idea of taxing unrealized gains, do you expect any traction >> the takeaway i have from this is that taxing the rich is still a popular talking point among democratic politicians however, the threshold keeps going up and up and up the president did highlight that $400,000 level he said in his campaign. but what's proposed here is starting to tax higher at $100 million. in the build back better, that passed the house, it was a $10 million per year threshold the market implication here is that if there are tax changes, it could still happen through re reconciliation, but for the average household, no tax changes are actually going to occur. on the corporate tax rate, that's not going to happen you might get manchin on board for that, but you're not going

to have sinema, so lower taxes than anticipated are here for the time being and probably for the medium to long term as well. a big market change versus last year's expectations. >> ed, ylan, and kayla, thank you all. good to have you here on this breaking news. >> just a reminder, the president's budget doesn't get voted on the next step is congress has a budget >> well, oil prices getting hit hard as new covid lockdowns in china raise concerns about energy demand. down 9% for wti. up next, sudodd alhussainy on whether he thinks oil prices will fall further. we'll be right back.

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session lows for energy prices shanghai's two-stage lockdown weighing on oil prices now down 9% on concerns of weaker demand from the world's largest oil importer, that would be china joining us, founder of hussainy energy, sadad al husseini. great to have you back on the show do you think the market has this right when it ams to china being a swing factor wh, when it comeo oil demand >> china is definitely one of the biggest. its economy is as large as the u.s. if not larger and it does need a lot of energy it consumes a different variety,

though it doesn't depend entirely on oil. it uses a lot of gas, a lot of coal, a lot of nuclear yeah, but china will be in trouble if it can't get the volumes it requires. and it will be continuing to buy, i believe, a lot of russian oil and gas just for that reason >> so what do you make of the market went even lower, just around the top of the hour, we had financial times report that the cease-fire negotiations are ongoing between russia and ukraine, that russia is perhaps giving some ground when it's calling for denazification of ukraine. oil prices moving lower. if we actually, and kayla reminded us we have to take it with a grain of salt we don't know putin's intentions, but if we got some sort of cease-fire, what would happen to the price of oil >> look, it's been so high it's got a scarcity of supply and a security of supply premiums if we could settle it down at least as far as the conflict,

then we would have to go back and try to source enough oil for the global economy to continue to grow. because just before this broke out, this conflict, we were very short already. we haven't had investments for a long time. in part because of the low price of shale oil, and in part because of the pandemic. so we would be right back there, still $100, i'm quite sure the rest of the year, we will have to see what happens as you say with the conflict, because russia itself needs to get its production back up it's been running a little bit below its historical levels, more like 10.5 instead of 11.5 everybody has to be confident that we're out of the conflict and can start investing again. >> well, it's down now more than 9% energy stocks down 3%. sadad al husseini, sorry to keep

it brief >> tesla getting another big pop today on news a stplit could be on the horizon we'll talk to an analyst that story and more when we take you inside the market zone as we head to break, check out the meme stocks, having another big rally day. meopup nearly 40%. gast up almost 18% we'll be right back. [ding] get e*trade and start trading today. never settle with power e*trade. it has powerful, easy-to-use tools to help you find opportunities, 24/7 support when you need answers, plus some of the lowest options in futures contracts prices around. [ding] get e*trade and start trading today. do you have a life insurance policy you no longer need? now you can sell your policy - even a term policy - for an immediate cash payment. we thought we had planned carefully for our retirement. but we quickly

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20 minutes left of trading we're now in the "closing bell" market zone. senior markets commentator mike santoli here to break down the crucial moments of the trading day. plus colin rush, and medley's ben emons on the big moves in the bond market.

let's kick it off with the broader market because stocks are gaining seem into the close and we're at session highs word of a potential cease-fire bitcoin is also at the highest level of the year. the s&p has shot up from lower levels technology was always outperformer in today's session, but what do you make of this rally? >> to some degree, i see it as the old rule, never short a dull market we were kind of hovering here for a while. three stocks are really powering things tesla, microsoft, amazon, taking most of that s&p 500 move higher not to say we're dis missing it. the s&p is at an interesting level. came into the week with people saying this might be the last decent shot for bears to prove this is a bear market rally and not a sustainable recovery i don't think this level but over the next 1% or 2% of the market, the rally has proof behind it, perhaps f it gets there. so i think that's mostly what's going on we did see a lot of reversals in longer term yields and also in

commodities. oil coming off, and i don't know how to decipher that from quarter end back and forth flows, so i think we'll have to wait and see >> did want to highlight the fascials one of the top three -- bottom three groups in the market right now. it's materials, financials, and energy financials though being dragged down by bank stocks right now. morgan stanley downgraded the sector to neutral. saying financials will have a harder time outperforming given the firm's prediction of a full yield curve inversion this year. the firm singling out citi of the big banks, downgraded it to underweight, saying deglobalization will pressure revenue there. mike, what is the deal if a yield curve inverts, that's seen as a recession signal, not good for the banks, although they were riding high on the back of higher treasury yields as well. which is it? >> both, anderate hikes themselves filter into the bottom line. that is a net positive this call from morgan stanley is essentially saying the late cycle playbook is in effect.

that may or may not come to pass, but that kind of what they're saying where the banks lose the benefit of improving credit conditions. there is at least this recession watch, even if the two-year, ten-year yield curve is not really a timely indicator, we'll still be in that mode. it's a lot more about how the stocks tend to perform under what conditions and what acts as a headwind look, there's probably a trade in here if you believe that's wrong, if you think the cycle has a lot longer to go f you think the markets activity is going to come back in a big way, but i think at the root of it is saying banks tend not to be able to escape the late cycle dynamics once they kick in >> there's also a china slowdown fear coming into the market today. bonds are getting bought i know we had a bad auction earlier this morning, but this idea of slower growth and slower growth in commodities. you just heard from sadad al husseini china is the most important consumer of oil prices when we see lockdowns in places

like shanghai, it equals slower growth i wonder how that has been this isn't the first time investors have been worried about that >> a couple times the market has flinched on headlines like that. i guarantee it's weighing on psychology at least this idea that the overall growth picture is fragile enough that it doesn't need new challenges. i'll also say treasuries in yerl longer term treasuries were way oversold they have been basically going straight down, yields going straight up. so anything that is a little bit of an easing of that move just makes sense right now given how far they have traveled >> 2.46 on the ten-we're tesla, best performer on the s&p, also helping out the nasdaq, up 8% on news the company is considering another stock split. tesla last split its shares in august, 2020 with us now, oppenheimer senior research analyst colin rush. it shouldn't impact the stock this much, should it, colin, to have a stock split or maybe yes because of the whole moves into etfs and index funds and potentially the dow? >> i'm not sure what it is

i think it implies a bullish stance from the company that things are going well that they would consider this. the company has had a long history of trying to make the stock accessible to a wider range of investors including retail investors this is in like with what we have seen them do in the past to try to make the stock more easably ownable for some smaller investors and really make that broad investor pool available to the company. >> so you think it's just about the signal were there questions, though, about the fundamentals of the business the stock has been on a roll lately >> we were in the fremont factory last week with investors and things were humming along. i think there's some concerns around the shanghai facility shutting down for a couple days and supply chain issues that are endemic to the entire auto industry we're seeing them execute in a coherent and capable manner. for us, looking at these guys, there's always expectations that get out of whack around the end of a quarter so it can be a mixed bag but we think things are going awfully well

>> suspending a shanghai factory for four days until everyone can get tested, does that have a material impact? >> it won't on the overall scheme of things, but in the short term, if they're reporting numbers at the end of the quarter here, and you lose a few days of production, that can be material it's something we think they'll make up, those volumes, as they go through the rest of the we're. >> what do you do with the stock as it has had a remarkable comeback it got hit and is still lower for the year but has had a strong bounceback in the last few weeks. >> we're still buyers on a cupp trends ev demand is continuing to outstrip supply. and we're seeing dates for deliveries extend out as the volume of demand for tesla is really extending past what they can supply we're seeing the rest of the competition, particularly the startups, go through the ramps it can be hard to make these vehicles and we have seen that with traditional oems and seeing

production from their peers not keep up with the growth happening at tesla the other thing we keep highlighting is the volume of vehicles they have on the road for their self-driving functionality and one of the things we're seeing them do is leverage the data and number of cars on the road to evolve the functionality. while we see it still being a big challenge not only for them but the rest of the industry, we think they have the critical element with all of those cars collecting information and experiences they can roll into the functionality over time. and we see them outpacing the competition on that full self-driving functionality >> it's up year to date with this rally, it takes it up 3% for the year colin, thank you mike, 25% month to date for tesla, but still about 12% or 13% off its recent highs >> yeah, back to levels that traded at early to mid january, which the overall market is not back to those levels it's had one of these sprints. the excitability around the stock split feeds right into

this general idea that retail enthusiasm, even institutional enthusiasm, they just run the stampedes through the options. it makes options more affordable if you look at the run hch up to the 2020 split, they had a vertical move and kept rising into the actual execution of the split, and for the next 2 1/2 months it was lower. anything you can say about the mechanical benefits of a split, they don't hold up because it's the anticipation of the split that got the upside. i feel like it's atmospherics around a name that trades in the short term on lots of emotion. >> it is a different catalyst for tesla than say apple and amazon and google which have also announced stock splits recently >> i would say yes only because of the velocity of the moves in tesla typically and how it's in a lot of individuals' hands. it has this massive upside over the course of the last few years

and it's gotten people kind of -- it's like a buy first and ask questions later type of thing. the fundamental story has moved in line as well, and obviously, we are having a different conversation around production and profitability than we were a couple years ago, but yeah, in the short term, i think it's more effective and by the way, google is trading below where it did when it announced, the day after it announced its split. >> after a rough start to the year, bitcoin now rallying, back above 48k, highest level since december 31st thanks to sentiment, significant buyer emerging what are the key levels to watch and the themes to watch now that bitcoin is above 48k and really took another leap higher this hour >> yeah, that's right. huge move over the weekend so 45,000 really was that key resistance level once that was broken i'm told it triggered a lot of short covering that's why we saw the huge spike on sunday. $47,000 appears to be the level to the downside. it is holding above that, like

you mentioned, it's above $48,000 at this point. $50,000 is a key psychological level for some traders there hasn't been a 5 handle in front of bitcoin's price in about five months, since december, and $52,000 in terms of the next technical level seems to be the level of resistance for traders i'm talking to another thing, it's not technically a level on the trading side but an important metric to a lot of crypto traders. the average cost basis for short term holders that's really the price where a lot of these newer buyers got in, meaning really anybody who bought bitcoin in the last few months that's a group people watch closely. they have been underwater for most of the year they're now back in the green. that's helping sentiment and the newer buyers are important you look at retail participation. that's been a sign of some of the more sustained bull runs in bitcoin. been a hallmark of other sustained rallies and really lacking this year. the fact that they're now back in the green, no longer under water in most cases, it's likely

helping sentiment and helping prices here. >> kate rooney, thank you. mike, i tell you another thing that might be helping bitcoin. you have a crash of the japanese currency i was going to mention this in the wall street buzz today, but because of biden, we got cut short. have to note because this is a crazy move we have seen from the japanese yen it's been collapsing it's down more than 6% for the year, which is very unusual for a major currency the latest trigger, they had to step in and buy bonds to defend their low yields basically as yields rise around the globe, the stronger treasury yields hurts japan. the oil, the fact it's an oil importer hurts japan is this, i wonder, a sign, a green light for the bulls on wall street? because usually when the yen is weakening, that's a good sign for overall markets. it's the way things should be operating from a risk perspective. i guess the question is, is this move too fast and too large? >> yeah, absolutely normally it is a good risk appetite tell

you don't want to see the yen rallies because it means people are getting nervous. i don't know if we're going to tie it to anything beyond what we were already responding to, which is the yield move. so to me it's not necessarily a new phenomenon it's part of the whole thing we have been watching and has been driving markets for a little while. i would say it's the removal of a potential negative except the speed of the moves when it does cause some kind of ripples throughout the rest of the market f it does, that's what you want to watch for as opposed to what is the real macro meaning of the yen move. i have no idea if it's really funneling into crypto or feeding into the general storyline of why people might like bitcoin. >> right just another bit currency getting diluted, i guess you could say. i want to point out the dow, trying to go positive, attempting was positive at the top of the hour and looks like we're up about two points microsoft, walmart, and salesforce biggest crippers to the gains today.

biggest weaknesses are chevron, dow, and jpmorgan. also want to point out the pharma space shares of amylyx getting halted as the fda releases briefing documents ahead of its vote on the company's als drug the fda says the drug appears to be relatively safe, but there are still questions surrounding the results of a study this is going to be a key moment for the fda. >> let's bring in meg tirrell. seem to be a lot of similaritieses between the biogen drug and this >> there's a lot of similarities, starting of course with just it being a terrible disease. als or lou gehrig's disease is a fatal nerve degenerative disorder for which there aren't good drugs out there there is definitely not a cure, and the drugs out there really only help things for a couple months at a time the other similarities is the

data are not straightforward here this application is based on one phase-2 trial, and the fda in its briefing documents today essentially called the data not exceptionally persuasive here. the other thing it has in common is very strong patient advocacy saying to the fda, you have seen this flexibility before. we need better drugs this trial worked, you should clear this as you can see in the stock price, it's kind of a u-shop when the documents came out, it was a lot more negative than people expected, but still some analysts are saying the fda could still approve this drug. wednesday is going to be a huge day for this patient population for this stock to see how this group votes. and sara, it's the same group, it's the neurology division at the fda who is already under fire for the alzheimer's decision there's a ton of pressure here >> right that's got to weigh on them as well meg, thank you we'll keep an eye on it. down 37% right now >> stocks near session highs we also wanted to point out the move in treasury yields. the ten-year is moving lower

the yield is for a change. and the five-year and 30-year did briefly invert earlier joining us is ben emons, from medley global advisers ben, what do you make of all the inversions happening at the same time that we have seen bond yields go higher on the expectations of higher interest rates. is all of this a threat for the stock market rally >> hey, sara i don't think it is because we're at this cycle where the fed has just lifted off and the market is trying to price what is the appropriate rate to get the inflation rate down over time, and that's what you're seeing with treasury ields they moved up since the fete meeting in mid-march, all of them moved up about the same, two-year a little more you get this inversion, but mostly you get yields which are above what the fed considers a neutral rate around 2.5% i think the market is working towards this process of saying this may be somewhere in the

2.75%, 3% range that may be sufficient to bring inflation down i think that's what the story of treasuries is, which had no negative bearing on the equity market >> so if that's the case, we're looking at march performance coming up at the end of the week every sector in the s&p is up higher in march. the weakest sector, staples, up .6%. what is the strategy for april do you see more of the same until this conflict with ukraine gets resolved? or do you switch it up >> i think the strategy remains similar, but say we have this big wave of inflation coming at us a lot of food inflation, so that sector is doing extremely well i think that's going to continue to perform you see thestrength of growth and value, seems broad, but it is really a reflection, i think, of future expectations that ultimately inflation will come off, and this is i think why the growth trade is revived. also emerging markets that are

on an uplift here despite the dollar breaking towards this $100 index, and i think broadly if the market remains in this positive tone, if inflation does get attacked by the fed, that will be eventually off the table too. i think that's why you're seeing the positive momentum. >> is it too early to bet on inflation coming down by buying tech >> i think it is actually timing more over time that inflation comes down you can't expect inflation to go from 7% or 8% all the way down to 2% in a matter of months. if that happens then the yield curve reversion is right and we'll be signaling a recession since we're not in a recession scenario, i think it would be more about recession seeing moderating down to 2% next year. so tech is so oversold that i think this has talot to do with the momentum, people seeking it out for that reason.

ultimately, high-growth companies should prevail when inflation does start to moderate that i think is what the market rationalizes here, quite right, i think. >> ben, thank you for joining us with the latest strategy from medley as we head into the close, still near session highs right now consumer discretionary is the leading sector it's being driven by tesla and also carnival corporation, e-commerce, some of the retailers. two minutes to go. what do you see in the internal snz. >> improving it did start out negative. almost the entire day, you had more stocks down than up overall, very light volumes but that's showing you we're about even it is a handful of mega caps that are flattering the s&p 500, but still a day when kind of the market kind of shrugged off an excuse to go lower and by the way, it hasn't been up on a monday in a couple months, the s&p 500. take a look at some of those areas you mentioned. housing and autos seem like a little bit of an overhang right now on the outlook, the economic outlook. there's car max and home

builders home builders are bouncing a little built today this shows you year to date, people have been moving away from those consumer durables, whether that's a forward going message or not volatility index really cooperating. that's kind of down to the normal range it shows you the market is back in gear. you have these rotations going on suppressing volatility. maybe the fever has broken we haven't really been sustainably below 20 in a while. we were there for a little while going into january peak. and not really there since the highs of the s&p in early february >> going into the close, we're solidly positive for the dow something that was not the case all day long it looks like we're going to go out with a gain of 68 or so points biggest contributor, microsoft, salesforce, and walmart. s&p 500 also going strock strong in the final hour. tesla is your best performing stock in the s&p you also have carnival, etsy, moderna doing well, adobe. nasdaq has been outperforming

all day long thanks to big cap tech, amazon, microsoft, adobe, apple doing well, and the russell 2000 lags. looks like it's going to be negative the only one of the big four just barely. that's going to do it for me have a great evening we'll see it tomorrow. i'll send it over to scott in "overtime. >> and welcome to "overtime. i'm scott wapner wru joust heard the bells. we're just getting started erin browne and ed yardeni with actionable ideas for your money. we begin with the talk of the tape is it just a matter of time before this amazing move from the lows collapses under the weight of too much worry, or is the market's newfound rezil yaenls now its greatest asset? let's ask dan greenhouse of solace