>> he's an activist not to make money. >> right. >> influencer. >> the midterm is coming up, too. >> yeah. we've got to go. we'll talk about it. maybe we'll know by tomorrow what is going on make sure you join us because we might have the answer. "squawk on the street" is next good monday morning. welcome to "squawk on the street." i'm carl quintanilla david faber and jim cramer we'll get fomc minutes, vix is steady around 20 road map begins with elon musk and his twitter surprise taking more than 9% stake in the social media company shares are soaring on the news howard schultz returns to starbucks. the company suspending the share repurchasing program

dimon's warning. ceo of jpmorgan saying a con influence of inflation and ukraine war may increase risks ahead. we'll be joined by amd's ceo lisa su and liberty media's ceo greg maffea. what do you have in mind >> well, the tweets have been about having more free speech. to me, it means more tweets by people who don't like him. free speech has been, i think, what you have on twitter it except for the former president. i don't know what he's getting at there's more free speech than you can use on twitter now. >> yeah. i don't -- by the way, that's a shared viewpoint, at this point. nobody quite understands exactly what it may be, other than what it is.

i know genius, right it's an investment somehow he thinks there's a benefit to owning 9 plus percent for him in terms of may be the economics. when you're as wealthy as he is, you look for the other motive that might be there. i'm not quite sure what it is. it's passive we should point that out again it's 13g it's not a d it's not something you would see from carl icon or somebody considering to be a true activist >> i think the most exciting thing is twitter is not dumb versus -- they're all down now but i think people see what twitter could be i remember when mark bennie hoff saw a grea great idea it could e

it's kind of a team that hasn't made the playoffs in many years. that's not -- elon makes the playoffs in anything he does. >> to that point, today is going to be the fourth time since the ipo it gapped up 20. only four times. as for the stake, if you value it at friday's prices, worth $2.8 billion, about 1% of his net worth. >> yeah. which is just stunning, isn't it >> it is stunning. >> wealthiest man in the world tesla itself -- >> are you going toward -- >> no, i'm not i'm not. we talk about musk a lot inform part he creates news but

he's the single most iconic businessman in the world it's beyond business he actually envisions things and makes them happen. i sit here at this desk next to you day after day. he thinks, gee, why not go to mars he's going to do it. sell a million and a half electric vehicles this year. he makes it happen why not bore tunnels -- i don't know you can't doubt him. >> and get the internet to the far reaches of the planet. >> right. >> reuse rockets i mean, go on and on. >> on and on but 20 years ago if he said i'm going to do these things you would be like right, yeah, okay. sure. >> when he went to see him get the person here and he would only talk about space. at one point, he said raise your hand if you've been to space the guy next to me raises his hand everybody goes to space.

everybody. can you imagine? who would say -- >> he's unique doesn't mean he's any less miserable than any other people on the planet but he's a unique individual. >> i think he and jensen wang are the two smartest people i've ever met i'm not talking about book smart but dreaming and going for it. >> deliveries 210,000 over the weekend. record high. below the street by a touch. shanghai, obviously, hurt, jim. >> right i think that what happens -- >> now we're talking about tesla, guys. >> what happens when he does it, there are all the faux surprises. i mean, frankly, it was not a surprise it was a little bit less than a surprise but then people can say when you

consider the lockdown in shanghai you consider covid it's an incredible number. the stock is higher. >> yeah. and berlin is coming online. austin a new factory, as well. >> yeah. >> they have a deal already. steve was a guest on "squawkbox." don't they have a tesla deal >> i thought they did. >> yeah. >> i love -- by the way i look at the note. i look at the picture. [ laughter ] >> yacht i had -- i remember the vehicle when i was down at the basis last week and when i took down the, you know, the thing has pictured fell into my lab. >> yeah.

they put it in every vehicle it should be exxon is taking $4 billion writeoff you're going >> i will not be going he's going wherever oil is. >> trying to learn about the business so i can talk to you with a more educated -- >> a more deep dive about the changes in exxon. >> i'm doing at lo of work a lot of things. lot of work a lot of things. >> it's the best thing we have going now. >> typical is. if you want a job, please go to the southeast. everybody is looking for workers. who builds lng, by the way, they're on time. >> when you go to one of the places, you see -- some of the companies we talk about in terms of the oil fields and how important the components are and whether it's lindy that also runs a lot of -- >> yeah.

travel trust no one understands what lindy does. >> yeah, i know. i said it -- >> yeah. industrial gases are a fabulous business hey, by the way, david, did i hear that faang is one of the 10 cheapest stocks in the entire market i think that's silly it's one of the great perm began growers. it was one of the worst for the last quarter.ian growers. it was one of the worst for the last quarter >> you think they need to come public >> absolutely. we need more ipos >>well, we'll get to dimon's letter he talks about the slow migration of companies into the private space and what it says about our public markets whether it's a long-term risk to the country. >> i think we'll watch to see whether gensler's emphasis on

not having pie in the sky when it comes to what we're doing with these with the projections. it could be very important. >> you're talking about spaks? >> yes very important. >> in the meantime, quick starbucks founder howard shuchuz returning as ceo he said this decision will allow us to invest more into our people and stores. the only way to create long-term value for all stakeholders jim, as he begins stint number three. >> we know he's unhappy with the unionization. >> right. >> we know it's very difficult to convince people to work as baristas that they're number one if the shareholders are getting such a big dividend. i think it makes great sense it's howard returning to the company's roots which is that the baa reese stays should be

rewarded i think she's shocked about the unionization given how much he has emphasized if you take our job, it's better than the other guys i look forward for him to come on the show. talking about the baa reese stays are number one it should be this week. >> this week >> yeah. it's very important. >> you think interim ceos don't make significant decisions that's a good point. this is howard schultz the founder. really trying to, i think, set a new tone do a reset where basically he says, look, the earnings are not my focus i want to make money eventually. but the little interim where he can reset for whoever is the new ceo is just fantastic! and i look forward to him explaining why he feels that the

b baristas maybe more things he'll do for them. the unions -- i spoke to one of the organizers they're chiefly interested in having more control over the hours. i don't know the early shift is people don't want. maybe they should be compensated more for doing it. i think howard is going to work with people and explain why the union may not be the best option he gave a long speech in buffalo about it he's an impassioned guy. he has a level of bearing that few people in the world have i think he can really talk about how such great place to work. >> we got beat up a little bit for our discussion on amazon on friday we didn't appreciate, i guess, union importance in american working life. >> you know i belonged to two unions in mylife

i guess he puts out a great product. >> we'll keen our eye on it. we'll talk about the amazon vote as we're waiting for the results to be certified. when we come back an exclusive with lisa, su power e*trade gives you an award-winning mobile app with powerful, easy-to-use tools, and interactive charts to give you an edge, 24/7 support when you need it the most. plus, zero-dollar commissions for online u.s. listed stocks. [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.

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anything that makes amd a larger part of the broader ecosystem whether it be like i don't know intelligence or enterprise or data center strategy means a great deal. make it so amd and sky links are no longer pc joining us now is amd chair and ceo lisa su. >> good morning. great to be here with you this morning >>well, i think this acquisition is, again, a sign of where the company is going it's very high let's say high intelligence. it's more exciting, i guess.

it's high performance computing. can you tell us where you fit into it? >> yeah. absolutely today is an exciting day for amd. it's been a exciting few months. we closed the sky links acquisition six weeks ago. then morning we announced the acquisition of pensando. it's the whole data center area. they have thought about how the data center services would be used and in the future they have built an incredible hardware and software distributed services platform this is all about, for us, jim, doubling down on the data center with our portfolio now across cpu and gpu and the xilinx and

pen santo. it's the most important workloads in the world. i think you're probably 50% nonlet's say 50% new amd and 50% old. that makes it so you're faster grower >> we're focussed on growth, jim. you know that. we're coming off a strong 2021 growth story where we grew 68% we previously said 2022 is another strong growth year for us high performance compute is the

fastest growing and the most exciting part of the industry. we have all the components for it so, of course, you know, we love our traditional, you know, pc and gaming markets, but the data center is the most strategic area now, you know, when you look at our portfolio across amd, the sky links portfolio, you know, the largest customers you look at customers like microsoft and oracle and ibm cloud they have already adopted pensando we're engaged with them across the amd portfolio. sky links brings a great set of customers. you expect to be flattish. i need to know overall because of ukraine and because of, you know, the tightening of the fed or whatever. are you seeing any sort of slow

down in high performance kpufting, which is most important for you? >> well, really, when you look at the pc market, you know, again, there are hundreds of millions of pcs being sold it depends on the segment you're in there are some areas you see softness, for example, you know, education and consumer they're coming off, you know, record highs in 2021 on the other hand, on the high performance side with enterprise, gaming pcs, premium pcs, you know, honestly people are continuing to invest because they want, you know, they want the greater services, the greater capabilities, the great greater overall use cases. we're launching the new platforms in premium we have gained revenue share, jim, for the last eight quarters in this market environment, i think we'll continue to gain revenue share. >> lisa, it's david. you know, you mentioned the integration of sky links you'll be integrating the new

acquisition, as well i'm wondering for you can point to something for our audience, for your investors in terms of a specific you're seeing from that integration that is going to contribute to the synergies you have laid out for the deal in the past. >> we went to see some of the largest customers. even in the first six weeks, the excitement that we're seeing from our customers being able to use, you know, sort of the amd technology scale portfolio together with the xilinx technology and expertise we see a significant amount of synergies with the top customers. and i believe this is really the girning. i look forward to, obviously, talking about it more as we go through the year and our financial analyst day. but, you know, this has been sort of a strategic journey that we're on, david. it's really about transitioning,

you know, our portfolio from one that was more consumer centric to one more balanced in the high performance compute and adaptive compute space. and, you know, together with xilinx and pensando and the amd organic portfolio, i think we have the best in the industry. our customers are excited about how we put those pieces together. >> great lisa, in the last conference call, you were asked about the fundability of your capacity planning can you shift to almost high-end and taiwan semi? because if you're going to grow and get those gross margins, you have to do a pivot and take advantage of the fundability >>well, as you know, jim, this market has been about supply chain, supply chain expertise, operational capability i'm very proud of what we've been able to do in the supply chain. our supply chain is supporting the growth we absolutely have fundability we absolutely believe that, you know, we have more than our fair share of capacity because of the deep relationships that we have

across the supply chain. frankly, one of the benefits of the larger company for all of the product lines, including the product lines that we're bringing in, is, you know, we will have that larger base and we'll absolutely work on even growing that supply chain base so we can support the growth that we see in the market. >> i think people think that all semiconductor companies are created equal. that's not the case. i would like to know what you're thinking about gaming. '23-24 whether you think it's going to be as strong or if not stronger than the previous sickles. -- cycles. >> this console cycle is actually the strongest we've seen you know, we've seen demand continue to be higher than supply i know together with our partners, we're all working on getting more supply into the marketplace. it is still in short supply. we have made investments we're working closely with

microsoft and sony and the overall eco system from everything we see, it's a strong gaming cycle here and the key is, there's more gamers out there we're still at the beginning of the cycle. >> yeah. and xilinx, you were in europe xilinx has some great ties with the big companies in europe. if you look at the core markets xilinx is in between the data center market, which is very, very, you know, key to us, the telco market we believe is a key market one where together we can expand i think when you look at all of these things, you know, data center or, you know, even industrial, you know what you're looking for is the ability to mix and match and combine the broadest port portfolio

possibility. you need cpu and gpu and adaptive socs. i'm excited to hear about the new stuff you've got it's going to matter tremendously lisa su, thank you for coming on "squawk on the street." >> thank you, jim. great to see you guys. >> great to see you. when we come back, cramer's mad dash and count down to the opening bell take a look at futures we've got one week until earnings begin in earnest. we have wendys cutting the guide r e year more "squawk on the street" when we come back

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we'll get to the mad dash and get to the opening bell to start the week of trading. carl mentioned wendys. >> there's little confusion on wendys absolutely they are cutting the free cash flow look. and cutting the outlook. it's all because of financing transactions they're reiterating they're going to make the same-store sales. reiterating they'll make the numbers awayfrom this financin transaction. >> we went by wendy's this weekend and my wife said no to the baconator. >> she said no >> john oliver did a -- what she

says and she said no. i don't think that's why, i mean, some people think it's going down because of her we didn't stop. the double baconator. >> by the way, they're also adding to the buy back it may take some -- >> yeah. they're adding to the buy back i think people see the things and what happens is they don't understand there's a lot of ways the numbers can go down. it's not necessarily because of performance and companies. so i think wendy's is a buy on this somehow business is going to slow they have done some work in the last recession mcdonald's is the best

performer. we have a great rally. i was talking to my friend the great larry williams who was saying, look, understand there's absolutely two weeks of up historically, you know, there's a lot of historical data about april. and april being positive. >> right >> i don't want to go against it. >> yeah. >> there's a couple of notes out today. mike wilson and morgan stanley saying over may 10th for the time natural place for it to end. >> yeah. he wasn't really a part of the

rally. >> no. >> no. and i think, you know, the judges had him on over time. >> how do you like your mike wilson medium rare. >> i do! he didn't make a move. but, you know, at the same time i think at the end of it, you did feel that maybe we best -- directly what do advertisers think? they say it's debatable. 'tissers sometimes like a clean scrubbed timeline. >> i worked had before i presented the proposal to twitter that they should have a two-track. you pay a subscription and people have to use their names

then you can do the free for all. they don't want. they don't and twitter also has to make it easier so you can buy one twitter and get the product. twitter will tell you, you know, they're a part of the conversation they clearly are the horrible nature makes it -- >> yeah. >> they might be a lot but they're flooding the money away from there. >> yeah. they also mentioned b of a that musk's following, as powerful as it is, and the way he moves -- if you fold twitter into the universe, you better be ready for more implied volatility. >> i think that's true.

>> that's not really the case here again, it's a significant stake but over 9%. clearly musk owns more twitter than his founder does. but i don't know where it leads. and nobody else does many people seem to believe that over time, perhaps, it will result in him having a lot of influence. right now he's not looking for it it's a passive stake but clearly the market believes that will change and he'll be here for a long period of time it won't be just a trade sometimes remember with musk you don't completely know where you stand on certain things. >> but how about the poll?

you think there's enough free speech on twitter. >> i don't know what to make. >> which you ask them about the supply threats, they keep telling you that they'll fix it but the fact is that they want combat and combat creates pages but i think the advertisers don't want combat. so the daily average users can go up. maybe a sports team wants it or a network wants it but the fact is that if elon musk can make it so it's not as violent -- >> right i've been wondering what you thought about lisa's comments about consumer end markets bo of a has a note about dell. so much of their mix is commercial they think they could be a bright spot in a period in which we'll be weary of consumer and demand. >> look the new amd is an

enterprise company very little having to do with low end. the battle is h 3rks there's a lot of people jamming it that last week and dell has been cut twice if you look at intel versus amd, which you're saying is basically, look, we're not in that battle. we're not in the low end battle. we're only in the high end talking all the great things that xilinx brings it's a direct move away from enterprise a direct move away enterprise is wrong. enterprise is definitelily strong high performance is strong i don't know about this. i think consumer really is,in the end, work from home. >> everybody is already set up. >>well, look, we have the poultry, poultry, it means that, i mean -- downgraded crocks

today. >> right i think that absolutely amd is not pandemic it's post pandemic. >> jim, i don't know if you saw some of the weakness in the fright-related names on friday. >>well, i have tried i'm glad you asked. >> i think fedex and ups were weaker, as well. something called freight waves it's a business that benchmarks and forecasts rate markets but also comes out with commentary it really moved the market on friday with the article that a number of analysts have been sent around following. take a look. you can see what we're talking

about. so some controversy from this. it had an impact the idea that, in fact, trucking is not going to be strong for much longer. in fact, it's already weakening substantially. >> okay. >> this is an influential voice, apparently i'm not familiar with it. >> you have better data than mr. freight waves? yeah i do nationwide covers hope to be able to get my source to be on the record rates have fallen 30 to 35% over the last six weeks the debate is going to talk about supply did you know there are more truck drivers as of last month

in this country than there were prepandemic? and that -- >> i thought we had a shortage i've been hearing about a shortage. >> it ended. >> it ended? someday in february it ended >> my information is so good it's scary. >> really? >> that's a quote. >> you're better than mr. freight waves. >> i am better there's more drivers therefore there's more competition. >> you agree with them potentially? >> i'm saying -- >> it's followed by -- >> there's tons demand. >> what kills it is oversupply.

>> how many times do we have to read from the different companies. the proctors and problem with freight. problem with freight that's going to go away. the domestic what won't go away is the port situation. i think you can no loeninger have the excuse you want to ship something from indianapolis to dallas, that's a lot. >> shares were down a lot. knight was down, as you know they're all -- as this article made the rounds. >> it's true. >> it ended the last six weeks. >> it kind of reminds me of citi, jim. weighing in on the call last week they say echoes our proprietary credit card data, home-related spending down for four

consecutive weeks and now negative year on year %. four references to janet yellen. two references to jay powell i want references to furniture and to the great galleries and the london that was briefly

mentioned. you don't pull your socks. you'll get them back just like that. >> by the way, we have jamie dimon. >> oh, jeez. we haven't talked about his annual letter. he goes and talks about what the expectations may be in terms of russia andukraine. the government the right thing it worked. but also in hindsight the medicine, visible spending in qe

was probably too much. it lasted too long the fed gets it right. we can have years of growth and inflation will start to recede he goes on to say who knows in a way. u h the feeling of restoration of rh. you need to be more weary if you're investing -- i mean, the take away, if you read this is, well, i have to cut back and i don't know if you meant that happened but it made me feel more uncertain about the role i'm hoping -- is the united states going for a win in ukraine? i mean, are we just settling for the russia being this way

russia the size of italy and gdp the size of texas and calling all shots in the war now >> the images over the weekend are unbelievable heart smart -- smarter jpm -- based on better fees. >> right i think it was a good thing. interesting. advanced micron no onelistened

i think the stock is cheap but it doesn't seem to matter. >> right we'll see what happens in a week when we come back, david has an exclusive with liberty media formula 1 coming to las vegas. as we go to break, a light week for macro. we'll get ism services tomorrow. two-year almost to 2.5 today

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they're getting crushed by inflation. well, i feel for them. they're taking financial advice from memes. [baby spits out milk] i'll get my onesies®. ♪ “baby one more time” by britney spears ♪ good to have you back, old friend. yeah, eyes on the road, benny. welcome to a new chapter in investing. [ding] e*trade now from morgan stanley. hchl. formula 1 announcing the third grand prix will be in las vegas next year. joining house is greg maffei good to have you we'll start off on las vegas 2023 you guys also, i know, are serving as promoter and i guess

taking on the risk of the business side of the race. that's different than what duos on in miami and austin, for example. isn't it why? >> well, hello, david. thank you for having me. you're correct the role we're assuming in las vegas is broader than where we have a local partner who does most of the arrangements and ticket pricing and sponsorship and the like here because of the nature of las vegas, because of the opportunity we saw, because it's probably close to our offices. all is well for us to take on a large role here. >> and what are your expectations when things get moving you have three sites in the u.s. viewership seems to be up strongly your stock price actually, greg, had a heck of a year at this point, as well it a-- what does las vegas add why was there a need for a third venue in the u.s.?

>> i don't think i would describe it as a need. i would describe it as an opportunity. you rightly noted last year in austin we had an amazing race. the largest race in the history of formula 1, in terms of attendees. up probably five times from what it was five years ago in terms of attendees we have an upcoming race, inaugural race in miami, may 6th to 8th sold out in about 36 hours. tickets are trading in the secondary market for huge premiums demand is very strong. also the opportunity continues to ride on the demand as you noted the strength in viewership on espn and drive to survive the opportunity to capitalize on that to recognize the fan base in the u.s. recognize the strength of the sponsorship in the u.s. is all of those set the opportunity up and the opportunity to capitalize more. >> you mentioned espn. a number of investors asked me

were you in negotiation with espn about fees? what are your expectations there? when will that begin >> well, that's ongoing. this year we're on espn and next year we're looking for a broadcast partner. we have a lot of interest. espn has been a great partner. they have a good deal because we've had a had rise in popularity and they capitalized on that as well. our hope is we will find a great partner going forward which could be espn or somebody else and likely at a much better price for us hopefully, still good for our broadcast partners, too. >> great to see you. jim cramer been a long time can you talk about the competition? you know, look, this was a mercedes thing mercedes won every single time and i kinda got bored with it. but you've got many different competitors now. the red bull seemed very good. are you thinking that this is the beginning of a new year where mercedes doesn't win every year >> yeah, i do think that, jim.

i think what has happened is over the last five years we've had a series of changes to our relationship with the teams under the agreement we've -- the concord agreement, and there were three or four things that were seminal making this more competitive. first, a new car design which throws off less drag and gives more potential for overtaking. second, a cost cap, which brought the field much closer in terms of spending. third, some leveling out of how we paid out the winning revenues basically, the teams shared in the profits with us and it was very heavily stacked we evened out a little more so the midfield, middle teams can do better. lastly, we created the teams as franchises before we added or subtracted a team at will, now it attracted investment into the mid-level teams. that has led to a far more competitive environment and we have seen teams like haas, which were traditionally laggards,

very competitive this year ferrari renewed in front of the pack a lot of excitement and we will see more the rest of the season. >> greg, our viewers have been able to look at your stock price the last year and again a question there on cap structure, because that's what people come to expect from a liberty company, that you are going to optimize too late to buy back stock >> well, we did buy back some stock in the prior quarter and we have an open to purchase. so we'll see >> just a we'll see. that's all i get out of you? a we'll see? what does that mean? >> we tend to express our open willingness to buy we tend not to absolutely commu communicate our exact plans. we think that's smarter. >> understood. it's funny you own as much as 30% of charter. i guess it's acreated up a bit because of their own buyback you know, greg, i continue to hear concerns about people who

invest in cable, the building that's going on by the likes of at&t you know, you guys seem to keep downplaying it i'm curious. 12 million homes they are going after, building where they already have copper. why isn't that a real potential competitive threat to the likes of charter and/or other operators? >> yeah, a couple of things. first, david, we are 26% of charter and that's where we're capped. >> that's what i thought sorry. i checked that and somehow i saw a different number okay sorry, thank you. >> no problem. just clarifying. secondly, i think at&t is actually expressed they are going for 16 million homes i remain more dubious. they are in about 14, 15% of their footprint they have overbuilt and probably, as is human nature, overbuilt the easiest, aerial and densely populated because that's the biggest opportunity. i think we fared very well,

charter, in the territories and continue to grow even where they have fiber and i think the road ahead for them on building out is probably more difficult than the road behind. >> finally, baseball season is starting you are the world champions. i'll say it once although somehow you let freddie freeman leave. i don't know how you managed to do that. but you are the champions. there was a strike you know, do you see it as debilitating in terms of the season any lasting impact from the work stoppage obviously, the season is getting going very soon. >> yeah, i think, first, i'm excited for the singapore. we were sad to see freddie go to the dodgers. we signed olson and several other players. our bullpen is particularly well set up so i'm very excited about the coming season. and it turns out the mets didn't buy every player who was available. there was not, as you know, a strike, but a lockout, and i am glad that the mlb pa and mlb

came to terms. i don't believe there will be lasting ramifications. i see a lot of excitement out there for what is going to be ahead for baseball and certainly excitement in atlanta. >> yeah. and finally, your spac any chance of getting a deal done >> we hope so. we have a lot of prospects we are working with we have a lot of opportunities it's, obviously, a difficult environment for spacs. in some ways, i think that creates the opportunity for a strong corporate player like liberty who has a strong investor base in the spac but potential to backstop our spac through redemptions or incremental pipeline on our own. all of those i think create opportunity. we are hopeful we are optimistic and working on a bunch of interesting things rns good to have you look forward to seeing you again perhaps in person as soon as we can. greg ma fay, ceo of liberty. >> thanks to all of you. jim, "stop trading"?

what's on tonight? cnbc is on the mclaren car i think mclaren will be a top five this whole thing is -- >> we are a sponsor of mclaren car? >> yes it's very exciting it's very addictive. i used to be just addicted to nascar i am not kidding - >> i wish we could have shown some video. >> why didn't we >> maybe you are right. >> maybe mclaren passing mercedes by the way, ferrari is interesting. the whole thing is exciting because it used to be eight times mercedes and now mercedes is like just one of many okay. so we have qualcomm announcing a big acquisition which i think is going to matter tremendously because qualcomm is going to be not just cellphone. >> they closed the acquisition >> yeah. remember marc lore, running boston marathon.com. before that diapers.com and he has done jet.com he is doing wonder truck

and i have used it it's the most exciting thing i mean, you -- bobby flay comes -- not he himself, comes right to your house, okay? and you order and they make it right there and it is just extraordinary. i'm in a test town, westfield. this comes to you, it's going to change your life it's going to change your life i don't know about urban, but you can order chinese for one person the truck comes. i wouldn't -- i tried to get in the truck. they wouldn't let me in. wonder truck is the future >> see you tonight "mad money" at # pmi 6:00 p.m. the dow is trying toet bk gac catch up with the s&p which is up 14. but your staffing plan needs to go up a size. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire cal: our confident forever plan is possible

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the street." rick santelli here live at cmehq with breaking news factory orders are february read, expected down 0.6, down half of 1%, 0.5 of 1%. that is the lightest number going back to, oh boy, a long way. all the way back to april. april of 2020. if we look at ex-transportation,

it's up 0.4. we can see that transportation, aircraft, cars, weighed heavily on this number popped up to 0.4 durable good orders, this is a february final, we are taking the minus 2.2 and replacing it with minus 2.1 ex-transportation minus 0.remains at 0.6 of 1% and if we look at capital orders, non-defense ex-aircraft a proxy for capital spending, it is down 0.2 of 1%. down 0., of course, replacing down 0.3, and that is the first minus sign going back to april of 2020. finally, if we switch it from orders to shipments, down 0.3 of 1% and that sequentially follows -- sorry that is up 0.3 of 1%, following up capital 1%. back to you. >> rick santelli. welcome to another hour of "squawk on the street.

i'm carl quintanilla with morgan brennan and david faber. coming off three weeks of gains for the s&p and nasdaq s&p putting together more gains today at 4561, dow's getting weighed down by consumer names like mcdonald's and p&g, morgan that's right 30 minutes into the trading session. we will get to twitter in just a moment here are some of the other notable movers that we are watching this monday morning we start with starbucks. howard shultz returns for a third stint as ceo replacing kevin johnson. the company announcing it is suspending the share repurchase program. we will have more on the ceo shuffle a bit later this hour. shares down 4.5% now china stocks rallying again after china proposed revising confidentiality rules. jd.com, alibaba, tencent are surging on that news and hertz unveiling a new partnership with ev maker pole star, buying up to 65,000

vehicles the next five years as it expands its bet on evs amid a broader turnaround strategy. shares of hertz up 4%, carl. twitter shares surging after elon musk reveals a 9.2% passive stakes in the company making him the largest outside shareholder in the stock two weeks after musk criticized the company inhibiting free speech we talked about the passive nature of the stake earlier, david. gordon haskett says it's unlikely going to stay passive that's the key question. you can begin passive and, obviously, you can change a 13 g filing, which is what this is, to 13 d, which implies you inend to try to force change at the company. that is typically what we see when an activist moves in. oftentimes activists don't come with this large a position this is a nsignificant stake. jack dorsey only owns 2% of

twitter. he is dwarfed musk's position, the single largest ownership out there of anyone, outside, inside, or otherwise. >> yeah. although compared to musk's total overall wealth, it's a relatively small position for elon musk. nothing said twitter like the other tech names like a google or a facebook or an amazon or a snap even does not have that dual class share structure so it made it to your point on whether this shifts to passive to -- yes, from passive to more active in terms of this stake, you know, this is a company that has faced activist pressure in the past from the likes of elliott management which of course was part of how we saw jack dorsey shift out of that ceo position perhaps abruptly, set a succession plan late last year which david you broke the news on laying out the timeframe, this 13 g filing says march 14th is the date of event which requires filing of this statement and

then we know it was on march 25th he took to twitter to, you know, pull his 80 million plus followers about the state of twitter and this idea of free speech and democracy it will be interesting to see. it speaks to the fact that at a time where we're talking about meme stocks and meme ceos, he's in many ways the original meme stock ceo because everything he sort of touches has a pretty strong reaction and you have had historically a lot of retail investors and day traders in a name like tesla and a cult following around musk in general whether it is a hertz or a dogecoin or a tesla specifically. >> he tends not to -- yeah, tends not to do things halfway, and by the way, only the fourth time twitter's gapped open up 20 plus for more on twitter, mkm

partners, good to see you. as i said, elon dives in when he wants to do you expect this to grow, the nature of this stake >> it's hard to speculate what's in elon's mind if you look at -- he is already active twitter user. clearly he sees value in the service they provide he is putting money where his mouth is he clearly sees that twitter is undervalued and i think based on what he is doing polling the users on the content moderation, i think he sees that twitter can become better. if you tie these two or three things, i feel there is going to be more active dialogue between musk and twitter management and board. there should be. he is the largest shareholder. if they haven't already, probably they must get on the phone with musk and hash things out over the next years and months to come >> right the notion of improving twitter's free speech

principles, which is his main complaint on twitter at least, versus what advertisers crave, could both things are remedied to make those two constituencies happy? >> in a way. i feel that is -- there is a greater need for spreading misinformation and stopping misinformation on twitter. as with many of the social media platforms, the fine line that companies like twitter will not be viewed as publishers. we have section 230 looming behind companies like twitter very, very closely so they need to tread a fine line i believe there is a way companies can do but it's a much harder problem to solve and the scale at which misinformation is spreading i think it's harder and harder and twitter, i think it's even more expensive so it could be solved but it is a hard problem to solve and probably expensive, even the

velocity of information on twitter. >> to that point, a new ceo at the helm, set out ambitious goals the next two years or so i realize you have a buy rating on the stock when you have somebody like musk involved, whether passively or potentially down the road actively, not speculate, does this add to the buy thesis here or does this add risk? >> longer term if musk is involved actively, if musk can bring around the turnaround in twitter, which again if you look at what twitter is telling the street with regards to the 23 targets, very few people on the street, even with -- believe that twitter can get there so targets could move towards the actual target that twitter has put out and that is a bullish sign right now many people like me on the street have models much below what twitter is telling the street so if there is a -- that twitter

can give confidence to the street, yes, we can get to our targets and this is how we can get for the next six to eight quarters, i think that's a bullish sign and probably musk theps them get there with clarify of execution. >> well, to clarity of execution, i feel like we have talking about a twiurnaround fo twitter many years let's say musk says i am going to talk to management. what are your top two things you tell him he should be pushing for as the largest owner of the stock? >> direct response advertising direct response advertising is the largest bucket of advertising. maybe makes $80 billion a year on that. snap is doing a lot better job of that. twitter has the user base. twitter has engagement twitter is telling the world that they can get to a pretty chunky size of the direct response advertising last four quarters we haven't seen a lot of progress on that and that is where the real money

is, advertising, is concerned and twitter is significantly behind tiktok, snap, even -- that's where the real money is >> we are going to watch it. a big story today. might change the nature of the stock itself we'll find out thanks. >> thank you. all right. let's stay with elon musk. you know, why wouldn't he? robert frank is looking at -- i think he is the wealthiest man in the world and that's moved up lately, right? >> yeah, david, it has a reminder not just the size of that fortune but the power and the influence of that fortune. elon musk feeling also like he has some spending money right now. that's because his current net worth around $273 billion. so that twitter stake only about 1% of his total net worth. he also has a lot of liquid cash last year he sold about

$16 billion in tesla stock now, 11 billion of that was to pay federal taxes. another 2 to 3 billion probably to pay california taxes. he would still have about 2 to $3 billion left from those stock sales. he could also borrow against his tesla shares those shares now worth about $190 billion then he also has spacex. his stake there worth about $80 billion that he could borrow off of and we know he has a lot of crypto he owns bitcoins, ethereum and doej he is not a passive investor in any company. his portfolio is those three holdings, tesla, spacex and a little bit of crypto on the side he doesn't even own any real estate any more, having sold seven homes in california and now renting, of course, in texas. now, if he wanted to buy all of twitter he could fund it simply with the gains he made just in the last month he added $50 billion to his wealth in march alone. he could buy twitter for 40

billion, still have $10 billion left to maybe add an edit button to twitter who knows? but he has plenty of cash to do this given the amount of time he invested in twitter as well, he is so busy with spacex, with tesla, but he is also incredibly active on twitter. i mean, it amazes me how much time he has to spend on twitter not just tweeting, but reading other people's tweets, reacting to tweets. he is invested to this platform even before this investment. yeah you know, and by the way, robert, and morgan may want to have input as well because on spacex, i mean, i don't know if you have the latest numbers in terms of what that company is worth, because it is still private. obviously, starlink an important component now and growing quickly. but just to make the point here, i mean that is a significant asset and again it's valued in the private market, but, you know, not sure where it would end-you being if and when it does come public. >> yeah.

morgan could jump in here. >> 100 billion. >> yeah, well over 100 billion he owns at least 47% of the economics. of course, over 70% of the voting stake so that's, you know, that's a massive fortune, in and of itself aside from these two companies and twitter, he is not the kind of, like, peter thiel vester he doesn't take stakes in companies and flip them. he already made a 19% gain in this that has not been his strategy to your discussion earlier, hard to imagine him starting a sort of passive stake investment strategy with twitter. i think it's really about influence and how much he cares and sees potential for this platform >> yeah. $100 billion that was following a secondary share sale back in the fall. that's where spacex is valued right now. just to speak to this entire conversation, robert frank, thank you. as we head to a quick break. a look at our roadmap the rest of the hour, including jamie

diamond's warning to shareholders and how inflation and the ukraine war could hurt the global economy. howard shultz returning as the ceo and starbucks share repurcse pgr. haroam "squawk on the street" continues after this don't go anywhere. erformance at. with deep expertise to outthink across multiple asset classes, actively managing investments in the world's public and private markets. outscale, with the resources to serve 1,500 clients in 52 countries. and outlast, with long-term conviction that looks beyond today's volatility. join the pursuit of outperformance at pgim. the investment management business of prudential. sales are down from last quarter, but we're hoping things will pick up by q3. yeah...uhhh... doug? [children laughing] sorry about that. umm...what...it's uhh...

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jamie dimon out with his annual

letter to shareholders detailing three important and conflicting forces leslie picker has more on that hi, leslie. >> good morning, morgan. jpmorgan chairman jamie dimon detailing the confluence of factors he believes may dramatically increase the risks ahead. it includes a strong u.s. economy, high inflation and the war in ukraine his view of the economy was relatively positive. he describes the consumer as being, quote, excellent financial shape on average he said consumer spending the last few months is 12% above pre-covid levels but when it comes to monetary policy he thinks the markets are set up for lots of consternation and volatile times quote, the stronger the recovery, the higher the rates that follow. he believes that this could be significantly higher than the markets expect and the stronger the quant quantitative easing he believes the fed should have

ultimate flexibility in raising rates rather than being beholden to, say, 25 basis points lastly, geopolitics. he said the war in ukraine and the sanctions on russia are quote at a minimum will slow the global economy and it could easily get worse dimon notes more sanctions could be added and said, quote, along with the unpredictability of war and the uncertainty surrounding global commodity supply chains, this makes for a potentially explosive situation. as for the firm itself, he is not worried about direct exposure to russia, those he says jpmorgan could lose about $1 billion over time guys >> yeah, leslie, i mean, when jamie dimon talks, it certainly teams like wall street and the markets listen just the fact that he did have such a different tone or different note than what we've heard just a year ago where, i'll be honest, i found last year's comments a little bit more cautious where things like

inflation were concerned, too. i mean, how market is that, how much could that potential impact the conversation as it moves forward now more broadly >> yeah, i think that's the key here because if you look back to the 2021 letter he said we are going to see modest inflation, it will be manageable, not something to be super worried about. this year's letter there is a marked change and he is urging the first energy to take dramatic moves or the necessary moves to get inflation and control because as we know it's anything but moderate at this point in time and given what we're seeing over in europe, given we're seeing with the supply chains, it doesn't look like those things will abate any time soon to create more of a rosy picture carl >> fascinating he definitely packed a lot in there this year. thank you. leslie picker on dimon's letter. some of the meme stocks, gamestop and amc down double digits the last week they are extending declines today. both are still up more than 30% over the last four weeks after

popping in late march. and bed bath is up about a percent. a lot more ahead after the break. stay with us

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welcome back to "squawk on the street." time for our "etf spotlight. the dow jones industrial transportation average through the ishares transportation etf ticker iyt. down 1%, coming off the worst week transports are since june of 2020. freight operators are really fielding the fall that we have seen spot rates and trucking, for example, and as freight waves points out a tee kdecline in te rejections for trucking. j.b. hunt and old dominion and ryder all red. economic slowdown in focus whether that could ultimately mean a recession keep a close eye on freight as the questions get mulled about in the market especially trucking. it has historically been an

economic indicator, david. the freight rates, as i have been saying so many years on this program, something to watch in terms broader economic discussion. >> we were talking about it earlier in the first hour of the program, morgan. this freight waves article that came out about recession being imminent, and, obviously, the influence that seemed to have on friday's trade as well talking about, as you said many times as well, sort of the three-year boom/bust cycles. >> that's right. that's right and one of the things and i think about donald bratton who said this many years, truck tonnage has historically pretty accurately been a very early indicator perhaps months ahead of time of where the economy is headed both in terms of growth and in terms of potential contraction. so these are the types of data points to keep an eye on when we are having these considerations. you see people like jamie dimon talking about cause for concern with economic growth and inflation. >> yeah.

we'll be keeping an eye on it as we do so many other things. >> yeah. all right. after the break we are going to talk about starbucks and howard schultz, he returns as company's ceo today. we're back in two minutes. ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq what if you were a global bank who wanted to supercharge your audit system? so you tap ibm to un-silo your data. and start crunching a year's worth of transactions

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split markets this morning dow continues to be in the red despite the s&p trading green, although the dow was down 203 at session low. bob pisani has more. >> hey, carl, dow's down s&p up 17 points let's look at what's going on. cathie wood arc funds up 30% in the last two and a half weeks. roku, block, zillow, zoom all to the upside semis bouncing nicely. want to keep an eye on the xle

energy stocks have topped out. they topped out in the beginning of march and have been moving sideways largely since then. i want to call your attention to the kbe, basket of bank stocks, a new low for the year believe it or not, we have some 5 # 2-week lows on big banks u.s. bank corp., citigroup 52 week low smaller local banks also hitting 5 # week lows. earnings season next week. that's the weak group. that's holding the s&p down, a major component there is the financials you guys were talking about starbucks and down 4%. howard schultz is going to suspend the buyback program. i want to point out here about starbucks, other than the fact it had a horrible year, down 25%, they were a genuine what i call buyback monster they put a lot of money into theirbuyback program and actually reduced the showares outstanding which you want to see, improves the earnings per

share. since 2017, starbucks has reduced the shares outstanding about 20%. it had 1.45 bill shares four, five years ago, now a reduction of about 20% what that means, all things considered, earnings per share look 20% better by the buybacks that they have been doing. that's going to be suspended that's one of the reasons i expect it's down now two things stand out number one, we are continuing to see earnings hold up very well despite the inflation. we are going to be in record territory for earnings once again if the analysts' estimates hold up. q1, $51, we have to get over 53 to have a record quarter the other three quarters, we are going be in that area. that tells me $51 is low they are going to be raising those numbers probably because so far the numbers look like they are holding up and the analysts are again underestimating the quality of

the earnings we are seeing second thing, analysts are again really, really bullish out there. how bullish? well, of all the -- interesting note over the weekend, 10,000 stock recommendations out there, of them right now 57% of all analysts' recommendation are buys is that little or is that a lot that is the highest level since going back to september 2011 you almost never get analysts recommendation over 55%. 57% are bullish. what does it mean? it means that despite these worries, the analysts are not trying to downgrade their stocks nor downgrading earnings numbers. wall street itself remains bullish on the rest of the year despite all the concerns, genuine concerns about inflation. morgan, back to you. >> bob pisani, thank you. well, as you heard bob reference, starbucks shares are falling, down 4% as humanitarian ho

as howard schultz returns as e ceo. the share repurchase program will allow the company to invest in future growth jeff sonnenfeld joining us in terms of howard schultz, and i know you have chronicled his previous history as well as that of other returning ceos and founders at other companies where there have been great success stories in the past, what do you expect from shultz in stint number three, especially given the fact this is a company that has a lot on its plates now, whether it's challenges in china, some employees dissatisfied, the fact that we are facing inflation and higher prices for consumers? >> thank you very much it's a delight to be back with you, morgan. and i think that we're expecting a lot of magic from howard it will be an aufrl lot of pressure on him. i think the symbolic move of the stock buyback cancellation, of course the market was not thrilled to hear about, was a signal to the work force and to

senator bernie sanders and others that he certainly is trying to rework the relationship with labor. he has forged a great bond with the work force previously and he has a reputation for not wanting a third party in there i should point out that a lot of companies have done very well with labor management relations. we see, you know, fred smith, whose not a returning general but exiting monarch of sorts, been on the job a half a century, and fedex has done well as a non-union country u.p.s. outperformed them ford and gm excellent labor management relations these days. i don't think it would be the death knell of this company if they had a third party in there. i'm sure howard feels it would be nice if they didn't need them howard did quite well when he returned his third time. he took over from oren smith once before, jim donald when he came back in took the stock price up from like $5 to $50

i've got to say that kevin johnson did a great job as ceo much better than i expected. he doubled the stock price while it's down a little bit from where he took it, the all-time highs in the summer, i think it's a shame that he -- and this is just not a planned exit scott is -- kevin johnson was supposed to be with us last week at our ceo summit presenting our leadership award to don parker and so this is i think caught a lot of people by surprise. >> so when you talk about returning general, what do you mean by that >> well, there are people who exit gracefully in a planned succession where you have somebody from within groomed like doug parker at american airlines, craig menear at home depot. these are successes that are much more ambassadorle, some people go off, to you know, stay on for decades and decades like coach k just stepping down, you

know, after, you know, 40 some years, whatever, and we have seen similarly as we mentioned fred smith at fedex really long tours as a monarch, is these generals leave office. they change their like like jack dorsey, like steve jobs, like jerry yang at eu, and they come back in. sometimes it works sometime it doesn't. it didn't work out for jerry yang at yahoo, not for jack dorsey in twitter. the stock was pretty much where it was when he stepped becack in but for michael, he doubled the stock. he did extremely well. howard has made it work before and steve jobs is legendary what he did the difference is these returning generals -- by the way, the second world war was a triumph of generals, general m mcarthur, general patton, churchill, general montgomery for the british and degaulle were all retired and they came

back in to lead their cause to a greater glory. if somebody really believes in the vision, which dorsey didn't, they can make a difference so i have high hopes for howard. i think it was unnecessary and it was unplanned a year ago nobody would have seen this happening. we were told that kevin johnson planned to step down soon, but this abruptly was not the idea it's an excellent board. the board is -- it's just a shame they didn't plan for this better >> well, let's abtalk about tha. you made reference to it, as well and i have talked a bit about it the press release itself in which they decided to devote a paragraph to saying that kevin johnson signaled a year ago, which raises the question, all right, if that is the case, then what were you doing the last year why to you nied to appoint an interim ceo? you said this is a good board. if the most important thing is

to find successor, they don't seem to have done it well. >> a fantastic board even the old wells fargo board going into some of their disasters, credentialed was a good, hopable board. they just messed up. in this case, i don't understand how a board with these kind of credent credentials can have such a bad process. howard schultz has 3% of the company. it's not like he has gigantic control here and he promised everybody he wouldn't come back in why they need to go back and get somebody my age, 68 years old, to replace somebody who was almost a decade younger or more makes no sense and you they should have been on the ball. while i know howard pretty well and i know melanie hobson, the chairman pretty well of this company, i have to tell you i'm disappointed i get may cues from you, david as the news broke, as you broke

this news a few weeks ago, you were surprised none of us had seen press releases indicating this was going to happen. you were generous to say taking it at face value let's say they did plan this, where were they to come up with somebody there are great candidates within one went off, to walgreens she would have been an excellent candidates great people on the outside. i think john ledger from the outside, of course, who is a magnificent job at t-mobile and mark fields of ford is, you know, a lot of people dressed up ready to go to step in. >> i have not been able to add great deal via reporting, i have to say, because you seem to imply and we can expect in some way this was not an expected departure, even if they were generous enough to put that paragraph in there saying that he signaled. hold on, jeff. let me ask the questions

it gets back to, okay, shultz, i mean is it interim is it not interim? you know, was -- did they see something that needed to be addressed in the near term and, therefore, they cut kevin's tenure short >> it's hard to understand a lot of the people are pointing to, you know, 160 potential, you know, labor elections and the union front was something, you know, quite smoldering and we saw a dozen such elections going against them in buffalo and elsewhere. i don't see how that was so catalytic right now. i must tell you that, you know, perhaps i should honor a confidence here, but i don't think kevin asked me to request this as confidence i was talking with him about the russian he can poesh aur, is one of our ceos who is a long standing russia critic has in fact been howard schultz starbucks led the way when other franchisees were understandably talking about the complications they had with their franchise

arrangements this is a franchisor was the most inventive kevin went off to buy back a deal with their starbucks exposure so they wouldn't be there. they had 130 stores there and managed to shut them down. that was remarkable. you know, i think it's very well done cut central support and things like that. they didn't pull that off. subway hans recalcitrant mcdonald's moved just seconds ahead but it was easier for them to pull out of russia. kevin did that and we were celebrating for that i sure hope it wasn't my advice that helped lead to his exit because it immediately followed and it makes no sense because howard was no fan of the russian exposure either. i don't know if the board felt differently. it doesn't make sense. and on the union front that's all we hear about. again kevin johnson even though bob pisani just reminded us, this hasn't been a good calendar year, is the stock run up under

kevin johnson has exceeded that of anybody it's remarkable. and he also is a nice guy. i think he was really liked. did well on the race relations front and others issues. frankly, i didn't think he would do well as a technology journalist was a great engineer at microsoft and places, ibm. he had this interpersonal and strategic skill set. he was supposed to be with us a week ago yesterday presenting an award at a ceo forum >> jeff sonnenfeld, always great to get your insights professor general general sonnenfeld. >> the president tris speaking this morning, asked about bucha and the images we saw over the weekend. he called putin a war criminal and says he is going to continue to add more sanctions. we are watching that here in the u and uk after the break tesla deliveries

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welcome back tesla releasing the first quarter delivery numbers over the weekend. phil lebeau has that and more for us as well phil >> david, when you look at the numbers for the first quarter at first blush you say 310,000 vehicles up 68%, but it was short of the analysts estimate of 317,000 so shouldn't that be a bit of a ding on the stock? a miss, if you will. that's not the way that wall street is looking at it. not at all in part because it was a challenging quarter for all automakers when you look at the chip shortage and supply chain that had been stretched and stressed for the entire auto industry and then on top of that when you look at what's happened with china production and the impact of china production, they lost four days the end of march by the way, didn't start

production again this morning at the gigafactory in shinanghai as you look at the annual deliveries despite the challenges of the first quarter, the expectation is still for this company to deliver 1.45 million vehicles this year. by the way, the run rate, the production rate at the end of this year, is expected to be 2 million vehicles that's because you have berlin, italys have started there, and don't forget as you look at shares of tesla, you have the texas gigafactory beginning delivers this week it will take time for texas and berlin to ramp up production, but you put that along with shanghai and fremont, which one analyst says is bursting at the seams, you have a company expected to deliver 1.45 million vehicles don't forget they have their earnings for the first quarter coming on april 20th curious if elon musk will be on the call remember, he said he may not be on earnings calls unless there is something important to discuss. i think there is a lot going on. i think people want to hear from

him. >> phil, i wonder how you think about tesla's production muscle. i see canada, for example, today positive comments about gm plants that might make evs there in the future. >> look, everybody is ramping up ev production, but we've said this for some time this is why you see strength in tesla shares as other automakers struggled the last three months. tesla continues to grow ev production, only efrz because that's all this they make. they are well ahead of everybody else if you look at their global market share, way ahead of everybody else and they are going to maintain that position at least into late '23/early '24. one note came out over the weekend. they added up the numbers. ins first quarter, one out of every four luxury vehicles sold in the u.s. was a-month-old 3. think about that how quickly the model 3 has become really one of the primary

luxury vehicles in this country. >> yeah, phil, that's a follow-up to that is my question is simply can you put in perspective the numbers that we expect in terms of deliveries from tesla versus some of the other majors that are out there so that people can understand, you know, a few years ago we were talking small numbers we are not anymore. >> no, not at all. and in terms of the global market share, they've got about 20% of the global ev market share. i think the next closest is down around 8%, 9%. i mean, they are well ahead, i believe volkswagen is number two. if you add in the entry level evs that gm makes and sells in china, gm is in there as well because they have got a large sizable business there you have the chinese automakers that are also growing. no doubt competition is coming, david. right now tesla has the market pretty much dominated across the

world. and that is a position of strength that they are going to be able to bank on for some time, carl >> fascinating, phil what a quarter appreciate that. more on elon musk and twitter on "techcheck" in a bis and an interview with the president of amazon labor union on the historic vote we will find out more about how much the company wants to object to some and if that certification is coming at the p of the hour. we'll be right back. stay with us with deep expertise to outthink across multiple asset classes, actively managing investments in the world's public and private markets. outscale, with the resources to serve 1,500 clients in 52 countries. and outlast, with long-term conviction that looks beyond today's volatility. join the pursuit of outperformance at pgim. the investment management business of prudential.

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welcome back to "squawk on the street" i'm dominic chu. stocks are mixed this hour as the tech heavier outperform. we're at session highs for the s&p 500. the utilities, though, are pulling back today it's reversing a nearer term trend that we have seen. among the biggest laggers are names like american waterworks and sempra energy. the utility sector is the second best performer so far this year, only one of two sectors in positive territory with energy being the top. investors of course looking more the defensive less economically sensitive areas of the market to outperform during bouts of

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welcome back to "squawk on the street." president biden implementing the defense production act to focus on materials used to produce ev batteries. the cold war era statute being applied. the u.s. department of energy made 3 billion dollars available in the second quarter for the battery supply chain doug, great to have you back on the show this defense production act, how does it affect your company? >> oh, this is -- first of all, let me speak from the perspective of u.s. taxpayer, u.s. consumer. this is a big deal obviously electric vehicles are big part of our society's future which is great in terms of enabling clean energy transportation future. but the challenge right now as we source the vast majority of not only our batteries but battery materials from foreign

entities and by investing heavily in infrastructure developments to potentially source future batteries and battery minerals, i think, is a big, big deal. not only for society but putting my hat back on, this is a great company for solid power to really establish a footprint for battery production here in the united states. >> so how are you going to do that i guess how does this act enable that to happen more quickly. i ask when we talk about rare earth's materials, i mean, it's not just about extracting them from the ground but refining them which is a process largely been done in china it's going to be tricky to d disintangle. >> yeah. this is where solid power operates is a great opportunity just to remind yourself and your viewers, we're working in what's called solid state batteries

this is simplistically speaking this is replacing liquid eelectro lite used in today's lithium ion with a solid material that represents a great opportunity because it's a new product and an opportunity to really establish the supply chain here in the united states, if you will. and so that's precisely what we're doing. we're expanding not only the production of our solid state cells but key materials like our solid elect lite and that's being done here in the united states so with this investment potential from the u.s., this is just an opportunity even further those investments and keep them here in the united states. your question about key minerals and materials, that is what we're looking at long term we are very much laser focussed on next generation materials that eliminate that nickel and cobalt it's still in our r & d phase but we're pretty optimistic we'll bring this to

commercialization. of course, therein lies another opportunity to have that production right here in the united states. >> so in light of that and given the fact that you have been largely in this research and development area as a company so far, what are your key milestones how quickly can you commercialize that >> yeah. so, kind of a multifacetted question because it really comes down to generations of our product. right now we are scaling our first generation cell product to a full scale that will happen this year. that will be delivered to our two auto oem partners bmw and ford so we're kicking off the formal automotive qualification process this year. that is being enabled by the infrastructure investments that we're making as we speak but where i look at this potential investment from the federal government is really the next generation and the next, next generation because we will, again, be scaling next year and beyond this is where we can really

leverage some of these investments from the federal sector. >> all right doug campbell, the ceo of solid power. thanks for joining us. shares are up about almost 9%. >> thank you so much. david? >> yeah. interesting move we have going on right now, morgan some of the old fang names i don't know if we can call that anymore, facebook is now meta. those shares up over 3.5%. apple up 1.7%. netflix also up as you see right there 3.5% so, nice move. nice bit of a rally there so far this morning the nasdaq comp overall up about 1.2% >> yeah. the dow is lower, slightly lower right now, but well off the lows of the morning it's only down about 40 points middling just below the flat line the s&p is slightly higher, 45.60. the underperformers are the russell 2,000, the small cap names and the dow transports we talked about in the show in terms of this week, a lot of focus on the fed with the fed minutes being released on

wednesday and lot of fed speak from officials anticipated over the next couple of days too. then sort of the larger macro uncertainties we have been tracking for so many weeks now >> yeah. something else we're tracking twitter shares. >> that's right. >> i'm sure they're going to get to that in "techcheck. so, we'll let them start right now. ♪ ♪ good monday morning. welcome to "techcheck" i'm carl quintanilla with deirdre bosa and jon fortt. today, funding secured twitter has a new largest shareholder than the head of amazon's worker union after that historic labor victory later on, we'll explain how the nasdaq whale got beached, dee. >> carl, we have to start with twitter, of course tesla's elon musk ta