good morning stock futures little changed off a little bit after yesterday's surge in tech. tech stocks lifted the nasdaq nearly 2%. shanghai lockdowns have been extended after the mass testing yesterday resulted in a flurry of new asymptomatic cases. and elon musk testing the limits of the so-called passive stake in twitter asking followers if twitter should add an edit button. it's april 5th, 2022 "squawk box" begins right now. good morning welcome to "squawk box" here on

cnbc i'm rebecca quick along with joe kernen and andrew ross sorkin. little changed at this point dow down by 62 points. s&p futures down 8 nasdaq down 26 so far, two days in a row of gains for the markets. two trading days in april. both days up yesterday was technology stocks that lifted technology dow up .30%. s&p up by .80% chinese stocks were the big gainers. look at what is happening in the treasury market. the 10-year yielding 2.454%. the 2-year is just above that at 2.465% crude oil prices yesterday saw

some of the biggest gains we have seen in two weeks you are watching oil prices pick up above $100 at $103.82 for wti. brent is $108 a barrel this is all with the atrocities in ukraine after the russian troops are pulling back in kyiv. that is leading to calls for french president macron calling for additional sanctions on russian oil. andrew. to follow-up on the story that broke around this time yesterday morning on "squawk box. elon musk making waves after the passive stake in twitter the tesla and spacex ceo tweeting at 8:00 to his 80 million followers. do you want an edit button

majority of them saying yes to the question according to some, crossing the line given the role with the passive shareholder role and turning into an activist role. if he wanted to enact a change in twitter, he needs to alert the s.e.c. to file new paper work to be in compliance to the issue of filing and not filing we were talking about the dynamics of this steve davidoff is quoted in the new york times the one thing that is interesting, you can change the paper work if he decided to go from passive to active and if the s.e.c. wanted to bring a claim of fraud for claiming to be passive, they could. it's a hard case to prove. >> what are the restrictions >> if you are passive, the goal is not to get on the board the goal is not to enact change

at the company the goal is not to do anything more than a passive shareholder. >> what is the down side why file as a passive shareholder versus active? >> once you cross 5%, he has to file something he has to say what the plan is i think if you haven't figured out the plan, it is preferable to be passive. steve said it is hard to state this case of claiming fraud. you say it started as passive. >> you could say i was asking people what they thought >> this is not -- i think the twitter poll is symbolic of the activist thing it is -- i don't think anyone thinks that is real activism he gets on the board taking over the company. trying to buy out the company?

th any of those things. i will say from the calls i made yesterday and people around him, there is more to this than just this >> he didn't put it on the paper work i read that. he read not apply. he did not file the passive paper work, right? >> i read the s.e.c. filing. >> i thought it was the passive. >> i didn't see it mechantioned. >> it's only two pages >> he left that out. i thought he is not declaring he is passive >> we will see >> we will wait. >> my question is did you vote for the edit button? >> i didn't. >> i did i said yes >> that will allow you to not delete the tweet >> right you can just edit the tweet. >> you can adjust it. >> it's nice for typos

>> an engineer at facebook who wrote back and said one of the things you could do is set up so you edit it and like facebook, you could keep a scroll of the old. how did elon respond he said facebook gives me the w willies. facebook is not his model. he said that a long timme ago h was off facebook >> i was looking at it figuring out my kansas read to get everything right we got some of the wrong numbers. we'll get to that in a second. i'll go back to elon it was 1963 the last time they came back from 16 points. >> at half >> not at the half they had been down as much as 16 the last time that happened was

1963 loyola of chicago. we'll get back to that an update on the biggest covid lockdown in china in two years. shanghai extending restrictions on transportation today after the surge of 13,000 new asymptomatic cases the lockdown now covers 25 million people after the initial phased lockdown was scrapped in favor of broader restrictions. >> i wonder what is happening there and how they handle this and how it plays out we have dr. scott gottlieb coming on later this morning and hopefully he can answer the questions. >> you hear asymptomatic it is nice. >> some of the things they deal with and how strict they have been not only are you locking down these yeareas. if you test positive for this,

brian sullivan mentioned it the other day. he said if you test positive, they take your pets and kill them they did not take advantage of the last two years to vaccinate the population especially the older population. >> it is weird we found all of these cases. we would have never found them because no one's sick. you can be a carrier you go to a nursing home or something like that. next thing you know. the u.s. senate, republicans and democrats reached a deal in $10 billion in additional covid funding for therapeutics and vaccines at this point, $10 billion is not going to be necessary in terms of new funding >> the funding is still less than half of the $22 billion that president biden requested the bill doesn't require money to bolster vaccinations around

the world. this is is paid for by the repurposing of the covid funds to dr. scott gottlieb will join us later this morning to the latest in ukraine investigating war crimes in russia after the satellite images of killing of several civilians in ukrainian towns president volodymyr zelenskyy is expected to speak to the united nations security council today the council has not imposed sanctions because of the veto power of russia which has a permanent seat in the meantime, the treasury department stopping the russian government from paying holders of the sovereign debt from reserves held by u.s. banks. the move eats into the holdings of u.s. dollars and brings it closer to the default on the obligations of debt. and more sanctions from the

biden administration could be coming this week jake sullivan saying this would target the russian economy fueling its war. and a tight finish in new orleans. the jayhawks defeated north carolina to win the college basketball championship. kansas trailed by 15 going into halftime or at halftime. unc had a chance to tie it, but missed that sealed the win for kansas. i can tell you stuff about this. i knew danny manning he won in 1988 now he's the coach i know about lawrence. lawrence went chrirazy i used to go to lawrence i drove through there. i know the hawk and the wheel.

it's a fun town. not too far from kansas city i have a friend in olatha. >> first time they won since 2008 >> danny manning was in 1988 i don't remember 2008. it was mario's miracle kansas has a great history >> unc was looking so good >> they peaked at the right time they were terrible at the beginning of the season. i lost money i had the over i had north carolina >> four point spread >> it was 4.5. i played parlay. i had that i thought caleb love would score more >> it was late i went to bed. >> it was 9:20 why? they are not "squawk" viewers. they care less about us.

coming up, tech stocks have been climbing the last month with the nasdaq up more than 9%. we will see what is working in tech next. later, we talk to senator john barasso and the funding you are watching "squawk box" on cnbc >> announcer: this cnbc program is sponsored by baird. visit bairddifference.com.

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tech stocks surging lately recovering losses from last month. joining us to talk about what is working is gene munster. founding and managing partner of loup meta and amazon up 25% most up 15%. all rebounded. is it too late >> i think in the case, the simple answer is no. look at the rebound in meta. 25% as you said and still trades at 19 times of 2022 and expected to grow 15%. 18% for google when you put this together, joe, there is room for upside

you need to be judicious of how you pick faang i would draw the line. we mentioned amazon up 25% this is a company in a great position long term near term, i would be cautious this trades at 70 times the earnings and has a weight around it in the terms of the cost and logistics side that i don't think will ease any time soon. to put perspective on this, if you look at logistics of employees, it is over 1 million globeal globally we had some of the vectors related to the union that doesn't add much to the overall expense structure. when you put these together and amazon and meta/facebook, i would favor meta/facebook. loup is owners of facebook in particular because of the belief

in the metaverse despite the hype, the company will be successfulbuilding a sustainable business the simple answer, joe, you should be judicious. facebook is the company to own along with apple >> what took the sector down it was ahead of itself, obviously. that begs the question what changed to bring it back >> what took it down was the concern about interest rates, of course tech companies are more susceptible. these companies we're talking about have not been hit as hard as brouader tech. to give you context on that. if you look at the pull back in faang and what took them down, to your question, those stocks were down on average 15% toward the beginning of the year. if you look at the second tier,

the emerging tech. companies that went public in 2021 those stocks were down 30% from the issuing price. down almost 60% from the peak. i want to put the conversation about what took these down to have perspective around that faang has done better. the reason, of course, it has done better is the flight to quality and i think investors should have exposure to both i think having a couple of quality names in faang and emerging class of tech, i think there is outside return in that segment as well. >> just silly. they go down based on worries of interest rates going up. we get one quarter point increase and rebounding because why? it is already in the stock that interest rates are going up? why go down in the first place >> i think there is pattern recognition investors go

through. interest rates going up. >> it is all sentiment it is not what actually happens from the rates going up. it is because they are going up. >> exactly >> that's crazy. we're barely at the beginning of the rate hike cycle. >> now we have to talk about recession and inversion of the curve and is that factored in yet? >> you pointed out and i don't see how this is different. the other factor one is the risks are baked in. the long-term prospects and optimism when is long-term optimism for tech when is that not the case? why is it more now >> there's two layers to it. the optimism has been consistent i believe that investors who simply own companies that say don't worry about trying to time the market that falls short of world class investing. it does fall short the answer, joe, is the long

term hasn't changed. you still have to have a pulse in the near term every tech investor has to have a sense of geopolitical factors. that is the issue here the psychological impact, as you said, the fear of what is happening. we need to see clarity about where rates go i still don't think we fully have seen that to be clear, you should own tech, but i don't think we're at the all clear and back up the truck point. i still think there needs to be some alignment related to 2023 growth remain optimistic. you have to factor in the near term don't time the market. guess what you have to figure out a way to lose loosly tie in the market.

>> the numbers came out and they were within the ballpark >> 70% growth. still growing at 5x of the overall auto industry. it has been an impressive run. >> thank you, gene coming up in a little minute my interview with matt damon with his book and funding and mission to help hundreds of millions of people gain access to clean water that is next. as we head to break, crypto prices on the move this morning. bitcoin at 46$46,669. we are back after this >> announcer: what's working is sponsored by comcast business. bounce forward at comcastbusiness.com.

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welcome back to "squawk box. nearly 800 million people are without clean water across the globe. we have been talking bengal water inequity the focus on raising capital for water and sanitation businesses in asia and africa and latin america. they rely on loans distributed to millions of people. it is told in the book "the worth of water." they came together to talk about the book >> we wanted it to feel like a conversation in the back of the jeep it is not a technical book

we wanted to bring the story of these people that we met and the reason this has been successful is because of this approach which basically rather than giving a hand out is more about empowering people. that has been a really wonderful thing to see i see it as these individual acts of heroism by these women who pay back the loans at over 99% consistently now millions of them millions of them that's a really wonderful story and something we wanted to share. >> as you know, over the number of years, seeing how we evolved. that is the big story of the book even the massive social problems can be solved if you turn the problem around a little bit. take a little entrepreneurial approach you can have a water

organization doing things like starting an asset manager and mobilizing the cap an tall markets and create the plumbing to women making a few dollars a day. >> you went to the economic forum in 2014. you said you were not sure it worked you talked about it as a curiosity or a novelty >> i think what worked the best about that trip and really most of the times we've gone are the opportunities to talk to you and people like you. you guys have been great for us. those trips there -- i think we have a lot more traction and momentum now we reached 43 million people it is not a story that can be dismissed so easily. people are starting to respond to how effective our approach is and wanting to get involved. it was a tough sell at the outset

>> clearly by 2016, it was in 2016 or 2017 when you started the fund >> we launched water equity and i remember okay the show and we talked about the first fund. it was $11 million it was from friends and family you fast forward to today. we closed our third fund 152 million subscribed now we're on to the next one with now $200 million of capital out there right now giving people water and sanitation while also getting targeted, attractive financial returns to investors. we feel like this is what allows us to have the audacity to believe to solve this in our lifetime >> a remarkable success story. matt, has it changed for you going into the meetings? i imagine early on of a moment when you walk into the room and are you matt damon the actor

i wonder how you feel about that and how much of a bar you feel like there is that you need to clear when it comes to matt damon, the expert on water i'm curious how that feels as a person >> i don't mind being undere underestimated that is always to your advantage. we have a really good idea here and we're always looking for sources of capital if it gets us in the room, you know, i think i can disabuse people of the notion i'm a shallow celebrity and hope to get to real work >> you can see the partnership and story telling and the cause and talk about the movie a movie about water and more on the "squawk pod" and crypto and apple. it is available anywhere you get your podcasts.

>> what is up with his mustache? >> he is filming in new mexico "oppenheimer." it is about the manhattan project. he plays a general in the film a chris nolan film >> they made him grow the mustache and shave it half off it looked like he started to shave before the interview. >> i cannot speak to matt's facial hair situation. >> it looked like a gray side. i had one once >> i think he looks like the pictures i have seen of you with one. >> it looked sparse and unmanly. i did not look like tom selleck or sam elliott we will talk to dr. scott gottlieb weighing in on the covid funding bill and the lockdown in shanghai

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good morning welcome back to "squawk box. a pretty good session yesterday for all three major averages i like to know the individual movers if only there was someone that could handle that for us >> okay. let's talk to tom who is looking at the pre-market movers who can handle it for us dom? >> i can handle it

let's look at it 6:30 eastern time. we see a big acceleration in the market with the consumer disc discretionary. carnival is up 3.5% this trading right now. this is due in no small part the company after closing bell yesterday announcing that for the week ended april 3rd, they had their busiest week of bookings for cruises ever in corporate history. that is what is driving the action right now between 150,000 and 170,000 shares for carnival corporation. over the last year, it has been a rocky road for many of the travel and leisure companies carnival with a boost there because and in addition, 22 of the 23 vessels they have, all weather ports in the u.s., are in operation ships are coming back online and they think by the end of the year, they will have more

sailing capacity than pre-p pre-pandemic shares getting a boost that is carrying over to other travel names sympathy moves with norwegian cruise line and royal caribbean. airlines are getting the sympathy upside move united up .75% keep an eye on travel and leisure despite the rising fuel costs. one other place to watch is fintech. a host of companies initiated by wells fargo of overweight. the industry is positive paypal and shopify and toast are the names that are overweight. they look at the valuations. they are palatapalatable. andrew, global fintech is a $1.5 trillion opportunity for the companies and they have growth

prospect it will grow 6% a year paypal, block, shopify, toast. among those names that are overweight those are the stocks on the move andrew, back to you. >> the tam ridiculous appreciate it, dom joe? coming up, john bryant is here he will join us to talk about the education initiative that is crucial from his view in the economy. and more, we will talk about the elon musk's stake in twitter and what may have motivated the purchase reminder you can watch or listen to us live any time on the cnbc app. should i say that again? >> yeah. >> announcer: this cnbc program is sponsored by bdo. people who know, know bdo.

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april is financial literacy month. a new cnbc and acorn survey conducted by momentive reveals americans are under more

financial stress than ever sharon epperson breaks it down >> our clients right now are rolling with the punches >> reporter: jessica kelly owns a salon in greenville, south carolina among the steady stream of customers, many are feeling the pinch. >> you can feel the tension rising a little bit especially with certain ones that are already on a budget. >> reporter: concerns of inflation are driving the tension. a new cnbc and acorn survey finds half of americans think about rising prices all the time more than three quarters say they are worried higher prices will force them to rethink their financial choices. if higher prices persist, more than half say they will cut back on dining out. 42% cut back on driving. 40% will cancel a trip from coast to coast, many have cut back >> we don't go out as much we try to conserve as much as we can. >> eating out less

not driving that much. >> i don't travel as much. except to work >> i'm trying to make more money to compensate for prices >> reporter: it is hard to know how high prices will rise. asking a few key questions can help you figure out where you might be able to trim expenses >> what is the cash flow what is the debt how much debt are we looking at? it is about making the small changes and control what can you control. >> reporter: an overwhelming number of americans have a worry. recession. the cnbc survey finds 81% expect one this year. >> a recession yes, you have that in the back of your head >> reporter: that's why kelly says she is planning ahead growing an online skin care sales business in case in-person traffic at the spa slows down. >> we have that to carry things. you always got other things we can try to focus on. >> reporter: focusing on what you control is critical.

many americans are simply overwhelmed. in our survey, 9 of 10 adults expecting a recession this year are under more financial stress from a year ago. joe. >> two of the biggest unknowns there. they he are ire impossible to k. covid. we don't know how long the war will last. we don't know how long inflation will last. if you are worried about inflation and acting like recession is possible, that is self fulfilling. you almost bring on the recession, sharon? those weren't great numbers. >> people are making changes and already cutting back not only on dining out or driving, but millennials will not buy a car or house putting more money on the credit cards. they are seeing signs that people are making significant changes. the good news is if they are

doing that and they do have the discipline to look at where they are now and want to protect the money they have now, that is a positive thing the uncertainty is something that is are worrisome to everyone >> sharon. thank you. sharon epperson. you can go to cnbc.com/investin thisyou. tune in tomorrow, april 6th for a second screen virtual event where sharon will moderate a round table with three of the nation's governors with the response of the financial education. for more about the event and to register, go to cnbc.com/states. we should note that nbc universal and comcast ventures are investors in acorns. >> let's talk more about this and how he is trying to work to improve it joining us this morning is john

bryant the founder and chairman and ceo. john, did togood to see you. john, if you think there is one most effective approach to this, what would it be >> the workplace and in schools vetting it into our lives. telling somebody to learn about literacy is eating vegetables. em bebedding it in our lives. employees report stressed on the job about money. the economy loses $450 billion a year sharon hit on this because of financial illiteracy. a lot of people don't have $500 for an unplanned event joe said it could become a self manifested destiny

i think this is a civil rights issue, andrew, of our generation doug mcmillan and i, the ceo of wal walmart, are bringing this into the fortune 500. this is like health care was 30 years ago. >> how do you do it so it is not like eating your vegetables? how do you do it so employees want to participate? >> reward system first of all, do it so there is not less dig any dignifying we raise credit scores 50 points in six months. people feel their life changes when the credit score goes up. 120 points in 24 months. you heard me say this before nothing changes your life more than god or love or moving your

credit score that changes somebody's life cost of debt goes down as tony would say, nothing like the altar of cheap credit of an affordable finance i think that by rewarding folks for good behavior, by giving them a chance to own a home, which we have done at delta airlines and u.p.s. for employees. then helping to negotiate with creditors. that is a big deal it creates agreements. it these are all rewards getting somebody out of a negative or creating a positive. it releases the tension on the employee or student. >> john, if there are business leaders watching you talking about this and saying we should offer this to employees. what is the cost to a business on almost a per employee basis to offer a service like this >> less than $20 are per person per year it is almost nothing you almost cannot afford not to

do it, andrew. that is why financial literacy is the new mechanism i want to announce wells fargo has joined us. with we have a growing list of corporates joining us. it is cost effective it is more expensive not to do this than do it. we are doing things at the children's level mayor dick ins in atlanta is offering a saving account for every kid. that is 12% higher than 1980 $1 1200%. you come up and corporations match that kids three or four times more likely to graduate from college if they have a savings account that is data driven. imagine, andrew, if kids had

what you and i had talking to them at a young age about money. you can mentor that versus something negative you have a savings account a seed to grow your dream. the game changer for america >> i like it, john great idea. watching tiktok i will tell you that >> hey, man. >> appreciate it nice to see you, john and congratulates to all the good work you're doing. >> i don't think there's any such thing as financial literacy in 30 seconds or less. >> my kids i think are learning spl version of -- i don't know if it's financial literacy it's financial something on tiktok >> i won't short change it anywhere you can get it, but it does require -- >> but i don't think it's good as good what is john is doing. when we come back chuna is reporting its highest increase of covid cases on record city of 25 million people new

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senate negotiators reaching a deal on covid aid yesterday. dr. gottlieb, the funds are about i think less than half of what the president was originally asking for, but he has signed off on this compromised deal what's in it is it enough >> it's all we're going to get so i think that's why the white house is signing off on it it's about $5 billion to

purchase and develop covid treatments and about $750 million to develop vaccines against new variants it's enough money to take us into the fall and contain the purchases of the therapeutics and boost the population in the fall doesn't really provide a lot of money beyond that. so i think we are going to have to think about how we transition these markets over to normal commercial markets eventually the government was going to get out of the business of covid vaccines and distributing them. i think congress is signaling with this measure they want the administration to start transitions those markets sooner that's going to require the fda to fully authorize these products it's hard to procure them in the market and as you know some of the therapeutics are as well, some of the vaccines for some of the age groups >> you know, there's a test in the doctor's office that my son had a few weeks ago that is a single swab. it's a test for covid and the

flu at the same time why is that not on the market? that seems like a really good product because when you have these symptoms you don't know which it is. >> i think it's in development now. what's going to need to happen first is that the covid therapeutics that have been pushed to the market which are currently -- most are currently under emergency use authorization are going to be need to be convert today a full approval and then the manufacturers are piggyback on those full approvals because you're going to want multiple things on the market for other respiratory pathogens including the at home tests, but that's going to be very hard for these mfrers to do while the platform for the covid bug is still under. >> does the fda realize the importance here, and are they up to the task? >> look there's probably not a full awareness inside the ajs of

the commercial and political implications here, the fact these products exist under eua, i'm sure the administration right now is working on a plan how they transition these markets to more normal markets, more normal procurement, allow a lot these products to be procured in the marketplace. this is clearly a signal from congress it's going to be hard and need to rely on a private market including private insurers and medicare for these things >> i hope they're listening to what you're saying right now scott, why don't we talk a bit what's happening in shanghai and china. now, the highest number of cases we've seen through this entire pandemic still pales in comparison to what's happening here what happens when you shutdown a city of 25 mimmian people not

letting them go out and get food, if they test positive, killing their pets >> 6,000 cases reported yesterday, 13,000 in shanghai. that's probably dramatic underreporting of cases. they don't report cases asymptomatic as cases. they don't get added to the totals they're probably underreporting mild cases i don't know what they include as symptomatic cases and there's probably a lot of people who aren't presenting for testing because they don't want to be put in the quarantine hotels around the city there's anecdoteal reporting there are old care facilities with large outbreaks causing outbreak of death and disease like what we saw here in the united states. they probably have a worse situation. if you want to see how bad it get look at hong kong. 50% of those over age 60 haven't

been boosted in china. so they have an under-vaccinated older population if this starts to spread with any velocity, it's going to claim a lot of lives, unfortunately. >> two questions for you one is what do you think of a potential underreporting going on in the united states at this point? i keep hearing more and more anecdoteal evidence of people coming down with covid, but i imagine a lot of folks now testing with binaks and other home tests as opposed to using the pcrs reported to the various states >> on the one hand we see ba.2 now accounts for the majority. i think there's a pretty dense epidemic right now here in the northeast of b2. i wouldn't be surprised if we're

only capturing 1 in 7, 1 in 8 cases. if you look at the daily totals multiply it by seven or eight and that gives you an idea how much infection there is. because a lot of people are home testing right now. people can get access to therapeuticwise a positive at home test. they don't need a confirmative pcr test >> jeez, 1 in 7 -- only 1 in 7, scott? >> well, at the best point in the pandemic we were probably capturing 1 in 3 cases i don't think that's too aggressive i think that's probably a fairtiate. it could be a little worse than that so there's more infection here in the northeast >> the other thing i saw yesterday was heathrow having massive problems, flights were

canceled because pilots weren't showing up, crew wasn't shoiwing up we keep thinking we're through that >> we're seeing cases come down dramatically in the u.k. i think we're further into this than we perceive and probably not going to be a national wave of infections. i think by the time it starts to spread nationally we'll already be deep into the summer and then we'll have to contend with this in the fall if b2 is still a dominant variant, it'll start to spread in the fall but i think this is going to be a regionalized wave of infection here in the northeast. we're further into it than we perceive >> how long do the restrictions last just in terms of, okay, if

you test positive for covid, you have to stay home. can't be around people unmasked for at least ten days. is this something that carries on for another year, another two years? what do you think? >> yeah, i don't think it -- i think as we get into the next cycle assuming that omicron is the dominant variant and future mutations happy within that lineage and so we have a lot of baseline immunity i think this is starts to become more flu-like where the guidance shifts to how many days post the resolution of your acute symptoms are you, things like the fever and more acute symptoms like the infection. i don't think we're going to have these sort of arbitrary fixed recommendations from cdc past one more cycle with this as we gain more experience with omicron, and more people have had the infection.

hopefully a second time they're going to clear it more quickly >> dr. gottlieb, thank you >> thanks a lot. it is just after 7:00 on the east coast, and you are watching "squawk box" here on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. the futures this morning have been a little bit weaker s&p futures off by about 9 the nasdaq down about 34 but this comes after two days of gains for the markets. treasuries right now you're watching the yields still inverted i believe but barely. actua actually, no, not inverted at this point elon musk already making the waves overnight, this after disclosing 9% of what is a passive stake in twitter

this question, do you want an edit button? most of the 2 million responses said yes so far. i was one of them. commenting the consequences of this poll will be important, please vote carefully. meantime twitter shares are coming off their second best day ever since the ipo up a little bit more this morning as well. >> who doesn't want an edit button who doesn't want yourself to make yourself look less of an idiot after making a type or something? >> i don't know. i'm not doing much lately.

>> i guess you're too busy with the wordle >> i don't know twitter, it's so yesterday, isn't it? this is not, though. consumers are being hit by higher prices and higher interest rates, but is it all meant to fall off in spending? steve liesman takes a look at the high frequency data. they may not have cut back yet, but they're all like they're ready and starting to prepare if prices stay this high. >> you nailed it, joe. >> then there could be a self-inducing recession we could be going into, steve >> you nailed it, joe, because i'm just not seeing it necessarily in the data, but of course i appreciate what sharon came up with in terms of people's sentiments about spending a month after the surging gasoline prices there was some

early but only modest signs of stress among consumers spending held up relatively well, and the outlook among some economists remains pretty upbeat despite the challenges 0.6% above the pre-covid spending level, but that margin has come down in recent weeks. the sameitata shows consumer making spending more at wholesale clubs and discount stores some 34% above the trend and rising it's likely these consumers are at these places looking for deals and these places sell gasoline or cheaper gasoline and amid all the stress travel is stronger. running 10% above the 2019 level. that's near the best levels of the year consumer spending relative to the pre-covid levels declined early this year. that's that big jump in the middle of your chart there with the omicron wave and of course a runoff in federal assistance, but it rebounded in february and

if you zoom in on the very end there, just a bit of weakening the past two weeks, but still above the pre-covid levels go onto tsa passenger traffic had been running 26% above the 2019 level came roaring back post-omicron, dipped and rebounded you can see just above 10% below the 2019 level one way consumers are maintaining spending looks to be drawing on savings savings are about a percentage point from normal, but the total amount of savings in the is still believed to be pretty high so this resilience underpins that some optimism in spending can keep growing despite lie inflation. one reason, there's 1.7 million more americans hired this year, so the total wage and salaries paid in a broader economy, they're actually rising faster than inflation even if average

hourly earnings are not. and so, joe, you have this sentiment idea put then you also have the household balance sheets are in pretty decent shape. >> just wondered, steve, it's kind of a lagging indicator, i guess, consumer spending you pay up for gas a couple times. whoa, $70. and then, wow, meat's expensive. you do it and it's kind of a shocker but there's got to be some fatigue if it's week after week after week you've got a couple of cars and $150. maybe you don't use a whole thank every week, but these numbers start to add up and seem like they start to bite at some point in thefuture >> you have that whole wage and salary income is out there in

the economy and helping. you've got this pent-up demand for travel, which you still have these omicron rebound threads running through the economy. i'm not saying everything's rosy the sentiment numbers are very contemporary, you're right, but they don't necessarily tell you how people are spending right now. we'll have to watch howpeople adjust one little interesting factoid, which jp morgan looked at you have the rise in spending in gas prices but tells you there's some economizing going on. >> people saying and what they do can be wildly different, too so >> we've got to watch it every week >> what's that >> i said we have to watch it every week this is the first look at it i've bip waiting to see we get a couple weeks ofidatesa saw a little decline there and we'll watch some more. >> all right, steve, thanks.

coming up, ken burns and walter isaacson join us after the break to talk about their latest project i don't know if you saw jeopardy anyone see jeopardy last night he voices over the ben franklin part of the documentary, and all the questions were about ben franklin that guy was something incredible should be good later senator john barrasso on president biden's decision to release oil fr tomhe strategic reserve and why that may not be enough stay tuned you're watching "squawk box" on cnbc

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last night a two part documentary on benjamin franklin premier on pbs it follows the founding father's multifaceted life. joining us now is ken burns. joining us now is ken burns and also walter isaacson, also a cnbc contributor and gentlemen, welcome we spent the entire commercial break talk about this beforehand i think we're going to spend the breaks after this talking about this because benjamin franklin

is one of the most fascinating subjects on the planet, and as much you know about him it's never enough you think about all the things he did from being a diplomat, a scientist, inventor, a writer. he created the first public library. he founded upenn i could go on and on, why you focused on him, what you found mo most amazing and have you ever found another person like him? >> no, not at all. he's the founding father we most need right now he's the most inventive of the founding fathers and like elon musk he likes that edit button changing things and saying it his own way. here's a mistake i've made in my life and here's how i'm going to correct my mistake so that notion of being

innovative, middle class and inventive becoming the most successful american in so many fields, and like leonardo da vinci, he wants to know everything he was always fighting for telephone improvement. >> i left off things like he created a volunteer fire department, discovered electricity. what were the most striking things you walked away with after studying him in-depth? >> as you say the list could go on and on. walter is right. no him no us if he hasn't delivered the french support for our revolution then there's no victory at york town he also, you know, negotiateathize treaty of paris which is the most lopsided

treaty in our history with great britain and gives us our complete detachment from britain. i think the most important thing for this morning, becky, is that this guy's on the $100 bill. the largest bill in circulation. everyone wants more benjamins he could have been exponentially more wealthy that's the important thing he understands that there's an exquisite tension between what i want, the sort of classic american freedom and what we need

he died, after all, in the commonwealth of pennsylvania, at the state of pennsylvaniach. >> and right and to that point maybe for our audience, walter, the most important lessons he gave away would be lessons on compound interest the idea he bequeathed funds to philadelphia and pennsylvania. >> i was just on tv -- i'm sorry, walter. go ahead >> he loved the notion of compound interest and giving back he knew he'd birch an indentured apprentice it's a revolving loan fund with interest so that they pay it back and he calculates after 1

years it'll be worth this and after 100 years it'll be worth that in philadelphia they still are using this fund. and some of the kids in west philadelphia used it to do things that franklin would have loved like build an electric car, a solar powered electric car. this is right in the line of benjamin franklin who invents the contact of a battery, knows how to tame electricity. so this evolving fund keeps helping young tradesmen and inventors and entrepreneurs and still doing so today it's a living legacy of what ben franken was all about, helping young people start business. >> becky, i was on with some folks from boston, from the boston franklin institute, and i was looking at a young benjamin franklin these first generation, second jeperation immigrants, kids from

lower middle class, minority students, they all had that fresh, hungry look in their eyes they were definitely going places and for them to see the film and get connected to their benefactor of 250 years ago was an amazing thing and for me i just wanted to cry because here was one aspect of the american dream that we're tethered to each other, that we're responsible for bringing our -- the rest of us up and that was franklin's motto as well that we had to do for self, we had to self-improve. it was important to work hard but also important to give back to the community >> hey, walter, you hear all these things what he did just in terms of negotiating and diplomacy and lessons in civic -- i can't think of anybody who lives up to what he's doing. but i will say when you look at somebody like elon musk, you have paypal, tesla, and this

foray into twitter and how to deal with the public speech and issues that go on in that town square, how would you rate what elon is doing and some of the moves he's made? >> i know elon musk loves benjamin franklin, and he is an inventor in things that are difficult, physical objects elon musk as was franklin this notion is not just, you know, creating a facebook page, which you can do in a dorm or a space engine he felt like doing the hard work and connecting sciences to humanities to business would be a good thing and franklin was a printer this whole twitter thing amuses me i can't wait to talk to musk this week about it because franklin had had wrote something called an apology for printers

saying when truth and falsity have fair play and there's a fairground, truth will win out so he very much believed that in the first amendment. >> when you talk to musk this week come back to us >> i want to go to that cyber rodeo in austin. >> even that's all he had to do was poor richards almanac. >> three people can keep a secret if two are dead >> we live by early to bed and early to rise. how did he know late night tv would suck there's nothing past 8:00 to be up for >> walter in my film was on at 8:00 you can stream it on all pbs

platforms anytime you want, joe. >> ben franklin would have been mad about that basketball game last night >> there's a move in congress to get rid of that. i guess it did know work so well last time they did it in the '70s >> i still would not have figured out -- i don't know how he came up with that so you look at lightening and think about that >> a key is that really how it worked >> but all the terms we use now, joe, are his battery, charge, negative, power, conductor these are things 250 years ago at least make our entry in questions about the subject understandable and that's benjamin franklin for him it doesn't have any real purpose unless there's some useful pplication.

>> have you used the ben franklin close i still do that when i'm trying to make a tough decision >> i've got a gal heading off to college, we hope, you know, and look at different things and doing exactly that kind of means testing about what works and what doesn't work. i mean, he's in our lives everywhere and in a good way, too. >> and upenn ken, thank you for making this walter, thank you for your contributions to it. and come back, walter, after you talk to elon musk this week. we want to see you back here next week with some news >> you need the report shoe leather reporting >> thank you, becky. thank you all. >> thank you, gentlemen. coming up when we return kansas beat north carolina 72-69 in the ncaa men's basketball championship, but how big was march madness for the betting community? we're going to run you through the numbers and joe's losses after the break. in the meantime we're going to

get a check on the markets "squawk box" coming right back we are in the red this morning dow off about 73 points. >> benjamin franklin was a big proponent of smallpox vaccine because his son die of it. difft planning options in here? options? plans we can build on our own, or with help from a financial consultant? like schwab does. uhhh... could we adjust our plan... ...yeah, like if we buy a new house? mmmm... and our son just started working. oh! do you offer a complimentary retirement plan for him? as in free? just like schwab. schwab! look forward to planning with schwab. this thing, it's making me get an ice bath again. what do you mean? these straps are mind-blowing! they collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery. and you are? i'm an investor...in invesco qqq, a fund that gives me access to... nasdaq 100 innovations like... wearable training optimization tech. uh, how long are you... i'm done.

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the kansas jayhawks capturing the ncaa men's basketball national championship what did the tournament mean for the world of online sports betting? contessa brewer joins us now

we already had the bracket mania and now you've got books everywhere you can get on individual games which ended up good for me. >> that was a huge relief off my mind let's talk about how big march madness was. it was their strongest month in history with record breaking customer acquisition mgm points me to november, the most mature at established sports betting market in the nation the first round combined handle from the bet mgm app and its retail sports book in nevada saw the highest handle in history, and that remained true through the final four. saturday's north carolina duke game saw the biggest bet total ever for any college basketball game with bet mgm in nevada and

nationwide sunday's womens championship game between south carolina and connecticut was bet mgm's most bet on women's sporting event ever nbc partner points bet also saw record numbers its handle up 75% year over year for the tournament more than 100% in final four, and live surged 175% the houston furniture mogul placed two $3.3 million bets on kansas winning nearly $8 million. and there was a reported netting him another 3 million making up for some of his losses on college football and super bowl. golf at augusta beginning thursday, major league baseball, opening day is thursday as well. so we've got a lot to talk about here, joe, andrew.

>> do you know if they're tied in the ninth inning, they stop yesterday i had the mets, it's 3-3. 3-3, they stop and one more point, contessa, they keep running ads about how these great things have happened in women's sports and there's a screen and play the announcer. this happened but no one saw it, and that's true. 40% of athletes are women, 10% are media coverage i watched everyone of those final four games and bet on it and loved it >> that's great. >> i don't know any but it's good for the interest in sports and i loved watching it. it was really cool to watch and i like it. i don't know betting on preseason baseball games is very productive, but i've done that, too. >> listen, the sports books are

hoping that because traditionally baseball is not a huge betting sport, but there's so many games if you drum up some interest in betting on baseball this could be really good for these operators >> anyone on any given day can win, so you get like a plus 140, you bet $5, you can win like i don't know $14 and teams win all the time that are a little bit under you never know if the pitcher is going to last. so that's my strategy. thanks, contessa we'll see you. >> sure. okay, coming up in just a moment more of that interview with matt damon on his new book, new round of funding and helping to get millions of people access to clean water the two-year and ten-year spread, so, so close it's kind of -- i was going to say unverting. unnerving. we're going to talk about it "squawk box" coming right back

welcome back to "squawk box. this morning making headlines and having residential real estate sales topping $7 billion in the first quarter makes it the strongest ever start to the year according to some new data coming from miller samuel.

sales in the first three months of this year up 46% year on year with total sales buying surging. the average price of a manhattan apartment is now just north of $2 million meantime ceo of roblox receiving a pay package -- i don't know what the sorken kids would think of this -- valued at $233 million most of that is made up of restrictive stock depending on the company meeting certain milestones if roblox shares meet target prices. we've got the stock right now at $49. if the stock falls our fails i should say to reach the initial price target by march of

mmxxviii, he receive any -- >> is he worth it? the entire discussion i had with the intel ceo and this is more, a lot more >> yeah, he founded the company. he created this whole situation to begin with. i have a different perspective on this -- this one i think. >> i wasn't going to say but you said i don't know what the kids would think about that how could they think anything other than that is awesome and i want to be that guy? >> what else would they -- >> no, we had a conversation last week whether pat's worth the dough. >> they already said that greedy ceo, that's really bad but would they say that at 10 years old? you've got them trained to --

>> they drink from the same water i do >> all right >> we want him to have lots of success. they would love for him to have success. >> still to come this morning former energy secretary joining us to talk about the global energy disruption and whether or not the decision to release from the strategic reserves is going to be enough wti this morning up to 103.83. at this point you're going to see bitcoin up by about 1.6% here's cnbc contributor stephanie link with how she learned about money. >> here's how i learned about money and how to invest especially for the long-term right out of college my father suggested i take moneyute of my

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we have some breaking news from general motors and honda. phil lebeau joins us now with the story. >> general motors and honda announcing they'll be co-developing lower priced evs what are we talking about? we're talking about the potential to jointly develop and build respectively at their own plants electric vehicles that would be targeting the most massive of the mass markets around the world for example, small cross over utility vehicles there's about 13 million of those sold every year general motors and honda believe they can come in lower price think about models likely going to start under $30,000 or at least that will be the target when they go into production in

2027 gm and honda have been working together for some time, and this is the quest, guy, for the $25,000 electric vehicle you hear a lot of talk in the industry about this. people say that tesla should build the model 2 which would start at theoretically around $25,000. and the goal here is bring that price point down using massive scale worldwide. that means more people move into electric vehicles, and that's really believed to be the key in getting evs to truly take off later this decade around the world. gm and hopda jointly developing electric vehicles, lower pricesed electric vehicles scheduled to go into production in 2027. guys, back to you. >> phil, thank you very much move onto energy the united states and europe planning new sanctions to punish moskow over alleged war crimes by russian troops in ukraine adding to concerns about oil

supply disruptions earlier this morning sources telling cnbc that the eu will propose banning russian coal crude at this hour you can see 103 or so at this hour dan served as energy secretary in the trump administration. he's now president of sempra infrastructure, a global energy transition company and there's a lot of articles being written right now while we're rushing to the transition and also rushing to replenish fossil fuels as well we're kind of rushing to both. is that something we can do? >> well, hi, joe it's great to be with you again. i think it is something we can do again as well as we're producing oil and gas in the united states as well as our allies around the world. it's a two fold challenge. it's one to reduce the

dependency but also increase production so we can fill those gaps i think the government has taken initial steps to do some of that there's still more to be done in companies like ours to help the government achieve those goals >> this reminds me invasion drives countries to green energy but not yet. make me chase just not immediately, which we use that centuries old quote again and again to describe what we're trying to do it is a little bit disingenuous, though, i think when we hear members of the current administration say that the fault we've had is that we haven't moved quickly enough to transition, and that's not going to solve -- moving more quickly right now is not going to solve the immediate problems the world faces right now. >> i agree with you, joe it's not -- it's important to understand what the transition is and what it's not as we've talked about in the

past, you know, energy transition has always been with us from the very earliest times of this country and even man itself the transition has always been from less energy to more energy. it's been from less energy dense sources to more energy dense sources. so you think about the history we used to burn wood or whale oil, used to burn coal and we've moved from those sources, oil and gas to even nuclear power which san incredibly energy dense source that's been the history of energy transition. it's never been to replace something in the fuel stack with something else the only thing going away is the whale oil source for i mentioned earlier. it's not transitioning away from fossil fuels but transitioning to energy because that's what's needed to grow these economies all around the world >> we have a lot of discussions about what can and can't be done

in the u.s. right now given the regulations. and maybe there was a change in focus as different administrations come in. let's say that there's a different administration at some point, what would a really fossil fuel friendly administration do right now that the biden administration is not doing in your view would the keystone xl be back on would we be building more lng facilities would we be stream lining, permitting, end looses, opening up more federal land all these things you think the administration should be doing right now with climate change? >> no, absolutely. look, joe, one of it things we can do we have an enormous tubt here in the united states to take advantage of our incredible

resources, our natural gas, oil, you name it. artificial intelligence that allows us to develop new technologies, new energy sources, whatever it is. we're just incredibly blessed here in america. so one of the things any administration can do can be to continue that research and development but also to look at the infrastructure needed to get this energy to the marketplace itself can we develop more, can we go faster, make the regulatory processes more transparent, more certain so that the financial institutions that lend money for these projects can understand clearly they can be approved those are interim steps we can take >> we're not going to do that currently. >> well, i think the administration took at least one first step about two weeks ago in approving some export authorizations

there's much more that can be done there's still four pending at the department of energy easy to sign all the environmental impact statements have been completed on them, so let's just sign them and send a signal to the world we're going to be a producer and exporter of natural gas. that's an important step that can be taken there's another one in california pending today, tc energy the developer of pipeline out there. again, all the processes, all the steps have been taken to approve this one pending application just to prove it it's easy to do. >> how long does it take to plan, finance and build another nuclear power station? how many years is that, and are you going to see that in different countries around the world? it seems like it's a given that's going to have to be part of the portfolio of the future >> it will be a part of the

portfolio. i think the daysf these very large nuclear facilities what i mean by large i'm talking about 1.5 gigawatts, very large facilities those may be put to the wayside for a while. small modular reactors, advanced reactors there's so many companies in the space today developing reactors not much larger than the size of your kitchen, for instance, and they produce an enormous amount of electricity importantly, joe, they have fuel sources walk away safe nothing really happens, the reactor just closes. and fuels being developed by this industry meaning you just can't use fuel to make a nuclear warhead. i think we're seeing some of that already being developed in places like romania. an exciting world in which we're living >> any of those functioning

right now? >> sure. we have several actually there was an announcement just recently out of wyoming a company founded by bill gates decided to put a program in wyoming and i'm aware of several others occurring around the world as well. none are functioning in the commercial markets to my knowledge, but i think that's right around the corner. >> that's when you were talking about don't cheap out on the innovation and the new technologies either. so we need to do that. it is. it's an all in strategy. thanks appreciate having you on today all right, see you a lot more coming up on squawk want to get to a couple of stocks to watch right now. carvana downgraded what's the price target now for the online car seller stock cut from 155 it's been on a bit of a wild

ride and carnival saying the seven-day period from march 28th through april 3rd was the busiest week for new cruise bookings in the company's history. i'm not a cruise guy i know we talked about the stock. up over 18% in a month more on what is moving in the premkeju aart st bit squawk coming right back

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welcome back to "squawk box. new this morning ftx announcing it's making a strategic investment in trading platform iex. it'll help onboard digital assets to its trading platforms, and the two companies will work together to change the market structure around digital asset security joining us right now first on cnbc is ftx founder and also iex co-founder and co. great to see both of you sam, how did this deal come together what are you trying to do here >> yeah, i mean really excited to work with brad and the team here i think the core things that precipitated this we have a long expertise with crypto currency exchanging they have a lot of experience with securities exchanging, and, you know, it's a really good opportunity for us to work together and work with the sec

>> this crypto market is a little bit like the wild west. we've always been trying to make the system quote-unquote fairer. talk about front running, i think there's all sorts of front running going on in crypto land right now. >> i think from our perspective there's a lot of, you know, incredible innovation happening, and i think, you know, sam and i have talked about this and i think there's also, you know, a lot of activity that i think the broader crypto community wants to root out of its market. this is an important time when regulation is inevitable in the market there are things the regulators will want and we have a lot of

experience we have decades of experience trying to shape regulation that ultimately protects investors. i think that is something sam and i are both passionate about, our companies are passionate about, and that's what we're trying to do here. >> right now the sec looking at this gary genzler has made a bunch of comments this is following some comments by gary genzler. they say we see a threat to the existing market structure for crypto platforms as genzler is questioning if investors can be protected when a single entity provides all the services. concentration of crypto trading will become a major talking point in washington. this will be used to justify imposing regulatory regimes and used to counter the idea crypto is different because it's decentralized. what do you think? >> yeah, i mean i think there's certainly an extent to which there may be a sure system for

digital asset securities, and i think our partnership is one example where we're looking to join forts to do this. i also think at the end of the day what matters the most here are customer protections and better transparency and protection against fraud whether that happens in a centralized, decentralized or any in between way, i think it's a lot less important than just fundamentally that it does e happen >> do you think the crypto world today is rigged?

>> yeah, i think for one the partnership with ftx is for us to learn more about the intricacies of the market. from our perspective equities was regulation layered upon regulation, and the output of that or some parts of this market were considerably imbalanced, and i think we spend a lot of time talking about that i think from our perspective when you're looking to build rules from scratch you have an amazing opportunity to build something and really not replicate some of the issues that do harm investors today and still happen >> but how much, brad, of the business do you -- i mean, i don't want to say you've taken a paternalestic. maybe i've taken a paternalistic view we've talked about the issues raised during that period and throughout since then. i would argue most people in the crypto land despite saying they

want regulation, i'm not so sure they actually do they want a chance at a lottery ticket that's so far what this has been about, no? >> no. i think there's a mix of activity but i think at the core what you see happening in crypto is building networks that looks to change the role of the intermediary, the middle man and i think to many degrees that's a positive innovation i think it can reshape a lot of industries including finance and kind of much like the dot combubble people were saying of course there's a lot of problems but out of that bubble emerged some of the most revolutionary companies that existed yes, there could be more regulation but i think what's being created here i think ftx is a great example what's being created here are

revolutionary companies. >> sam, i'm curious just for those who are watching investing in various coins and tokens and the like where do you think we were if we were to date this in internet lands i think of some of these things almost like operating systems and almost like mobile back in the day when we talked about rim and palm and ios and android there was a time when we thought them was it, and it's not as well how do you think about any of the coins on the screen right now in that context? >> it's a good question. i think things like aws like server based infrastructure is another sort of parallel to layer one block chain.

obviously i don't know for sure and all i can do is give my best guest about it, but if i had to guess i'd say look at the through put of the systems look at the actual capacity of the actual system as it is today and where can it get for this ecosystem to be huge and right now it's maybe the fastest and it's at tens of thousands. and so i think proof of concept is the phase we're at. but i don't think we're yet at the phase where we're at technology ready to just rollout and revolutionize the world tomorrow >> but does that mean 5 to 10 years from now there will be

innovation on top of these coins that are totally different coins in which case the investment in those coins won't have the same value? >> that's a really good question and of course no one knows for sure what's your projection and what's going to happen with some of the biggest today do you think it's going to continue to scale three to five years from now and will be 100 times as fast as it is today do you think that network going to get it there, or do you think that's going to crap out and that what we're going to see is generation for block chain which didn't even exist until a year ago or until two years from now and sort of taking that whole position frankly, you know, it could go either way frankly bullish on solanas as a

technology it's still too early to know for sure >> we're going to leave the conversation there it's a longer one. it's fascinating to see what's going on in the space and we appreciate you being here. it is just after 8:00 a.m. in new york. you're watching "squawk box," and live this morning from the market site in times squasquare. take a look at the futures right now. there is some red on the screen. the dow looks like it's going to open down about 40 points. s&p 500 off about 4 points we've also been getting unnerved by the potential inversion of the ten and two-year and joe? >> little bit. >> talk to mr. santelli about that and more. >> see if he shares the angst. mike santelli is looking at the broader markets. you have trouble sleeping last night?

>> right now we have to go after the third decimal point to get to that inversion, so i think that's a bit of a cushion there psychologically. so i think the fact we have been chewing over these issues doesn't mean we have economic risk built into the system we're four weeks built into a rebound rally based in the intensity of that macro field. where does it bring us exactly right there. february highs people were looking at this level to say that might be the borderline between just kind of a snap back, reflex rallies off the lows i think it's a net positive we were more or less flat for seven months and really chewed through a lot of those macroissues arguably take a look here you have the cloud stocks, fin tech, ipo

index, all very similar in terms of the cadence you have this big peak early last year. and then you had a correction, a little bit of an echo boom and then the big lide. everyone of these off the lows and kind ofhor swrantal. a lot of people feeling like we don't have to make a bet they're going back to their highs. still off 30, 34% off their highs and maybe there's some room higher. and the musk twitter kind of things seems to give a bit of trade. you had this big spike on the chart. it's back down below 20 right now. one thing i'll point out you still have have a bit of an up trend. you never got more than a 5% pull back, so maybe something to prove in terms of the market with the fed in play so much can still relax a little more than

it has >> it just seems a little bit ironic that we really haven't -- we know it's coming but it recent happened yet, so they went down because it's coming, now they've already rebounded because we're okay with it now even before we've got a quarter point increase so we definitely are in a rate hiking cycle we're already over it, that's already been dealt with by the market >> well, the market is priced in eight hikes or something like that i think we're a little bit guilty of overplaying how much it's been about rates. a lot of it has been about evaluation adjustments digital assets and about a bit of a retail boom that had a recoil effect so all of that has been in the mix

i think you've had less reason to worry when the peak pull back, the average pull back in a nasdaq stock is 45%. it's not about whether rates are at 1.7 or 2.4 on the ten-year. it's about what's the long-term earning prospects and it's a much bigger effect than what happens on yields. >> mike santoli, see you later thanksmism. when we come back senator john barrasso going to join us to talk about the energy crisis, taxes and much more. plus elon musk's stake in twitter and what it could mean for the social media company that stock this morning up another 1.5% after closing up i think it was 27% yesterday at the end ofhe t session stay tuned "squawk box" will be right back.

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welcome back to "squawk box," everybody. been watching the futures this morning, been a little weaker. at this point the dow futures down by about 50 points. s&p futures indicated down about 6. and the nasdaq up yesterday is indicated down but just by 22 points the treasury market we've been watching that two. year, ten-year very closely.

we talk ubsabout this every day >> again, president biden's decision to tap the strategic petroleum reserve for the next six months immediately brought oil prices down and energy prices but they're creeping back up and always seems to happen. in congress the senate energy committee's lead republican says releasing more often doesn't produce a single new barrel of oil and joining us now senator john barrasso. near-term that might be the quickest way to bring some relief at the pump, though i think that's what the administration was thinking, senator, because some of these other things it takes time to reverse some of the restrictive policies and open up domestic production, but you can do this quickly. you don't think it's a good

idea >> well, no. it's another hail mary pass by a president desperately trying to deal with the problems he created by his attacks on american energy. people are feeling the pain at the pump, joe, as you said in wyoming about $2 a gallon more than it was when joe biden came into office. so this decision to release more from the strategic petroleum reserve, it's not going to do anything in the long-term. it may have atemporary lower o prices but not significantly we're not really producing more american energy this way, and, you know, some people call it a gimmick, but i think it's dangerous because he's tapping this reserve to the point and for emergencies to the point we'll be at our lowest level there since 1984 so in case of a real emergency we're not going to have that emergency supply to lead back on >> senator, the problems in europe and how they're going to

generate the energy they're going to need well documented. obviously that's not joe biden's problem. the pandemic certainly played a large part, and you don't have the workers you need to man some of the rigs. you don't -- supply chain issues there's myriad problems that go into this. what specifically do you think the biden administration did or didn't do to get us into this situation? >> i think of energy as the master resource. it powers our country, our economy, our military. and i think of it in the sense of energy security, economic strength and environmental stewardship and we do it better than anyone else so under president trump we became energy not just independent but energy dominant. and now we are much more energy

dependent. we are much better as a nation i'm also on the foreign relations committee. we are much better if we are selling energy to our friends than having to buy it from our enemies. when joe biden came out with all these policies starting day one, killing the keystone xl pipeline, not doing the oil and gas leases and for people who had leases before he became president, not allowing the permission to use those leases, the permits to drill. it shutdown american energy to a point that today we're producing 1.3 million barrels of oil a day, less than we were in 2019 >> senator, when the pandemic hit and we shutdown the economy, it became not economically tenable to do a lot of this stuff. that's one thing we're dealing with in terms of the eventual

transition do you think it's a good idea for hydrocarbons to cost more so they're more competitive? do you think there's some thinking in that regard with the administration maybe hydrocarbon prices would be good because it would make a lot of there transition renewable energy sources more affordable? >> i think there are people that the president -- i think there are people that the president has surrounded himself with in the white house and come before the senate, and some he has just as his czars in the white house overseeing all of this who reelry do want to drive up the cost of all petroleum-based source of energy so it makes it look like the sources are more uh-uh fordable he wants to make red, white and blue energy more expensive and this is the real challenge we have because the american people are suffering the view of the president and how he's handling the economy, inflation, gasoline prices and

all those things, his numbers are in the tank. less than a third of americans think he's doing a good job with the economy no matter what numbers happen to come out with employment >> you're not happy with i guess the budget and new taxes what do you do if you want to try to tap into some of the unrealized gain billion-air wealth >> as you say the new budget comes out, there's 36 new taxes. about 1 have to do with them producing american energy and that's going to hit people the biggest tax of all is the tax inflation which is people living on a fixed income, seniors, all those folks you talk about specifically about the billionaires tax and part of it is it's going to hit

a lot more people than just billionaires this is a signal from the white house, from the president to the liberal left he's still with them the bottom line is here. it's not just attacks on income, though what he's proposing is a tax on wealth, which is going to make people have to tell the government what they own, and if something goes up in value over the years, say a stock, you'd have to pay tax not because you sold you may still want to hold onto it, but if the value is up, they want to tax that nrealized gain we've never had anything like that before. you know, we have a constitution, the 16th amendment which prevents that sort of thing. it's a tax on income only. so we see what the president is trying to do here. he knows it's not going anywhere i think it's just his effort to tell his liberal base he's still with him >> senator, i'm not sure it's going anywhere either, but i do question or at least want to know if there's a reasonable way

to capture the taxes both that are owed in that they are actually owed meaning funding the irs and secondarily owed in the context of i think there is -- there are reasonable -- i don't know if there are reasonable loopholes there are loop hopes and things that people agree are reasonable loopholes and need to be closed. on the other side attacks unrealized gapes entirely. >> the president makes assumptions and he's assuming inflation is less than 3%. this is how out of touch the whole budget is when you assume inflation is less than 3%.

people all over the country seeing inflation approaching 8%. >> are you supportive of what i would describe as basic things, increasing the amount of money that the irs has to actually collect the money it's due and already owed >> i am opposed to the sort of plus up the president wants to do to the irs. we looked at that in his build back better plan, which had a lot of money in it to go after taxpayers who want to do the right thing, and they want to super size the irs, and i would oppose that all along, and i continue to oppose it. >> what do you think is the right size -- let me ask you a basic question what percentof americans do yo think should be audited annually what% of the 1% do you think should be audited given they

probably have the most complicated tax plans and possibly are the easiest to evade taxes? >> i'm in the mind-set that people should pay all of the taxes they owe, no more than that >> i agree with you. >> whatever the law calls for they should pay. >> right now i mean it is minuscule the number of people who have ever even checked >> i do not approve of the president's effort to hire a lot more auditors to go and take a look into private checking accounts, which they wanted to do every rancher in wyoming, every small business owner in wyoming. what the democrats are proposing to do i think is going to be bad for america in terms of people wanting to keep more of their hard earned money and not be call in front of a carpet of a government saying we want more because we want to spend more. that is worst reason to go out, the kind of enforcement this

administration trying to do. >> what about working people actually paying their taxes and people who are literally have the most money are not it's a longer conversation, senator, but i think there's at least a reasonable question to be asked whether we should enforce the laws you're putting on the books you're a law and order guy, i know senator, thanks. >> andrew, i think you need to enforce the laws on the books and i think that's happening right now. >> i think that's the part in question because we know it's not being enforced because we know t know the percentage of people being audited. >> down south you think those laws being enforced? >> which laws are you referring to >> you know what i'm referring to "squawk box" will be right back.

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while on tour for a new book titled "the worth of water." i asked them about their partnership. >> they're working with their treasury functions actually, because it's important for them to be able to contribute positively to water, and it's also important to further esg we see a lot of folks that come at this because from all kinds of levels of special purpose water conservation even when you start looking at carbon and the carbon footprint, it becomes good business for them. >> one of the fewer partnerships you have is with crypto.com and right now you've been doing and what does that mean for water.org? >> it came about organically and they called and ask if i want to

do a commercial for them, and i have done very little of that in my career, but i talked to gary about it, and i harken back to something paul newman said to me years ago which is shameless exployation for common good. his face was on salad dressing bottles and he actually put that on the label and so i made the decision to do the commercial and give the money to water.org, and gary and i discussed it and said, all right, let's go for it and actually what happened which was surprising and great was that the people of crypto.com heard i was doing that and just completely unsolicited sent us a check for a million dollars. that was great and a surprise and started this larger conversation because we have these partnerships and they've been an incredible

partner and their marketing team, and they've really helped us try to get the word out about our work so this has led to kind of a larger conversation with crypto.com about hopefully founding a larger partnership in the future >> and you can catch the full interview on our squawk pod. when he did all that crypto stuff twitter went wild. we've got some breaking news to bring you right now which is that elon musk is now being appointed to twitter's board of director directors to serve as what's called as a class 2 director takes that 9.2 stake we think it's a passive stake. i think we all thought there's something else going on. this is what's going on. he's going to be appointed as a director, and the question of course is how much influence is he really going to have? >> although it's also semantics because he's not your normal

activist >> the stock moving about 25% yesterday, moving about 5% on this news now. >> we'll participate in direct or benefit arrangements applicable to nonemployer directors. >> that means he would get paid 2, $300,000. >> that's not part of the story. >> clearly the question is what kind of influence he's going to have over the company. they have a new co jack dorsey is gone. >> for twitter for so long elon musk serving on the board and 90 days after he'll not become owner of over 14.9%. >> then the question is now we're talking activist really. is this a standstill agreement >> twitter inc. for so long as

elon musk is serving on the board and -- and for 90 days thereafter musk will not become owner of over 14.9 -- >> that means he can increase his stake from the close >> there's a buy back program in place in twitter right now so it's possible 9.2 just by default if you hang onto the hoop long enough we know he can get over 10%. >> yeah, but that's not going to happen quickly my guess if he's disclosed to them he plans to buy more. i think you've got ability three days to disclose your ownership before you have to do it >> whatever this means jonathan greenblad is going to be really unhappy because it means less censorship whatever this means elon musk is going to want more stuff out there, i would think

>> the other thing interesting once you're on the board you are sort of stuck. there is sort of an idea in the sort of activist theory which is take the people, bring them under the tent and lock them in the tent, which is to say -- >> good luck with doing this to elen musk. >> if he sells the shares he'll have to disclose if he wants to buy more shares he'll have to disclose the other thing that remains in effect which is the irony of this situation the sec and his own board at tesla are supposed to be monitoring his tweets, and now he's going to be on the board of the company >> it was his tweets related to the company. his tweets related to tesla in particular i think those were the only ones -- >> let's just say there's going to be a heightened sensitivity also as a board member twitter board members historically have not been active. >> this is going to become a

very interesting dynamic about that very issue. his twitter board is going to have to watch and oversee. >> anything in normal doing business, good luck. he doesn't operate that way. >> i disagree with you >> you're not going to be able to control him he's going to say what he thinks >> i want to know what jack dorsey thinks of all this. creates a thing we use and now the other guy is coming. >> a long time investor in tesla, spacex, long time fan of elon musk and a real believer in what he's doing. >> so now the question is ron baron buying twitter as a result of elon musk's involvement >> i'd be surprised given how big the jump is. >> how long do you believe the

management -- the current management of twitter is for this world if -- >> no idea my point is you're not going to be able to control them. if elon musk has things he'd like to see implemented if you're working along with him on that that's one thing. if you're opposing him and nobody puts baby in a corner on this one >> meantime whether free speech is in the corner jonathan greenblad is here the ceo and national director of the anti-defamation league good morning to both of you. free speech issues are at the fore when it comes to what elon musk thinks he wants to do with twitter. jonathan, you've beenquite outspoken about the responsibility you think social media companies should have. to some degree you would argue or i would argue i think that elon musk has gone too far and

wants to roll them back. >> it's hard for i think any of us to ser tain what's going on elon's brain i admire him as a businessman tremendously what he's done is almost without parallel he's an extraordinary person in so many ways and look, i'm a capitalist this is how capitalism works he has a right to buy a share of the company. is this a standstill agreement i don't know but i disagree with what joe said earlier i don't think it's about censorship i don't believe in freedom of reach. in the same way you get to choose your guests, the same way the national review gets to choose its contributors, i think twitter gets to choose who it priv ls and who it doesn't privilege. we should keep it on the fringe

and algorithmically amplify it whether it's russian propagandists, alt right people -- >> you want to do that through a quote-unquote free marketplace which is companies decide or you want to do that by way of law in washington >> i think the company like the social media platforms should simply obey the same news of business that's like the bottom line i would say. >> jonathan, in a nutshell there's two lunatic fringes. you only have a problem with one side of the lunatic fringe any crazy lunatic fringe if there's nothing akin to that on the left and you would never even bring that up you don't have any problem with any of that. >> there is an extreme right and

there is a radical left. >> you've been on a lot i have a pretty good feel get rich -- >> jump into this conversation because i think you're on the other side of it, but the other question i would ask you is we actually watched the stock of truth which is the social media platform being effectively sponsored by donald trump that's now a spack, that stock has actually fallen over the past 24 hours in part because of this view twitter is going to move maybe more in this other direction. is whatever that middle is, is that the right place >> well, clearly twitter would embrace more the ethic of free speech and be bad for these alternatives and trouble gaining traction twitter is a private company they can censor whatever they want they should honor an ethic of free speech, and they haven't.

they've suppressed what they believe is misinformation, but if you have a modest view of what the truth is, which is if you support first amendment, you realize you're not right about everything >> what do you think about -- what do you think about verifiable misinformation? it is sunny outside today. it looks sunny outside to me today. if somebody posts on twitter right now that it's raining in times square, what do you do >> 5,000 people get to say it's sunny. and the view it's sunny is going to win out because that's actually factual that's how free speech works if i go and comment on a article in "the new york times" and libel jonathan, i dyou don't geo

sue "the new york times. it's just a falsehood there's some special rule for social media companies. and this country has a free speech crisis. >> how do you think what's happening in russia right now and effectively brainwash an entire country to believe something that is not true about what's happening in ukraine? >> totally different category. that is the government dominating the media and killing dissidents they don't like if twitter just let people have free speech that's the opposite of what putin is doing, not the same thing and totally different. >> twitter ceo taking to his own platform this morning writing i'm excited to share we're appointing elon musk to our board. through conversations in recent weeks it became clear to us he

would bring great value to our board. he's both a passionate believer and intense critic of the service which is what we need in the boardroom to make us stronger in the long-term. welcome, elon. now we know it's been going on for weeks and i think it probably is closer to a standstill >> i wonder if he was purchasing shares at that time. he had some back and forth with jack dorsey as well. >> but jack's no longer on the board. >> yeah, but he was playing back and forth with him on some of these questions related back to twitter. but, jonathan, to the point earlier about russia maybe you think that's a completely unfair

comparison to make >> i feel a but coming you know that's how it works >> i mean there's someone who wrote in a tribute to william buckley how he purged the right of the semites and john birchers and the nativists. and he was right so all i would suggest is that twitter can choose whether it platforms. again, i believe in free speech. they can say what they want to say, but i think they shouldn't say it in a way -- >> given the elon musk news in the morning if twitter goes down a road that you're not happy about because you have created protests and other efforts at

places like facebook and others, do you imagine or could you use your bully pulpit to the extent you have one to go after not just twitter but given the influence of elon musk and we talked about comparing elon musk now in some ways potentially to jeff bezos with his "the washington post" asset and amazon could you say making a protest against "the washington post" of the world and the space spacex of the world? >> i think those are unrelated and elon is i guess on the board with other people. if we've had a problem with twitter or facebook we've directed it at twitter or facebook >> as you know there have been legislatures and politicians directed their wrath not at jeff bezos but at amazon.

it's a bit of a bank shot of sorts but a powerful one >> i think this is a kind of overreach. i don't agree with that. i think if you have a problem with the platform or specific business you take it up with the specific business. >> one of the other side points out and says you know that's the sky and one side deals in facts, the other in misinformation, i'm not going to mention which side we're talking about. can you come up with anything in recent history where something on twitter might have been branded misinformation or at another news organization might have been branded absolute misinformation that it turned out was not misinformation >> maybe, it's a tough one >> it's a tough one. i like when one side has a monopoly on truth and the other side just deals in misinformation >> the problem is once you go down this path you have human beings doing the moderation and making decisions and they all

swim in the same sea, all in the center left and progressives you're crazy then you must be suppressed and you're part of the fringe -- >> major news organization >> and to jonathan's point about bill buckley and the birchers, national review is not a platform we're a publisher. we have some comments, but we decide by and large what we -- we commission it we edit it, and that's what makes us a publisher in 1965 he's not running a platform so that analogy like the putin analogy also totally fails. >> i totally don't think it fails. i mean, if it walks like a duck and it quacks like a duck, it's a duck if you make your money from advertising, you have people publishing content, you're a

publisher. if you're actually like a public utility then it should be treated as such. that's all rich. >> you're trying to tell us twitter commissions tweets it goes out and says rando person in your basement can you please tweet about your cat today, your tv show you're watching today that's what makes it different than a publisher >> twitter commissions its code. its code amplifies what you see, what you read. and if they choose to amplify russian state propaganda as if it were real like it's raining outside, then you're going to see that that's how the algorithm works that's how code works. >> that's different than going and commissioning and editing and publishing a piece by the way, most people are smart enough not to be fooled by this russian propaganda. free speech the premise of it is

the truth will win out if you let people have a free exchange of ideas do you want to suppress books? >> general, we're going to have to leave this debate for the moment we're going to do it again i promise. we'll wale do it on twitter after the show or something but come back on squawk and elon musk confirming he's on the board saying he's expected about that >> and looking forward to changes coming, significant changes. >> we're going to get jim cramer's take on all of this in just a moment. ♪ ♪ connecting to opportunity is just part of the hustle. ♪ ♪

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and welcome back twitter is adding elon musk to its board. musk just tweeting looking forward to working with parag and twitter board to make significant improvements to twitter in the coming months let's get down to the new york stock exchange that covers a wide range of things, doesn't it >> it sure does. >> let's see, we all have our own view of what would be improvements that's what makes the world go round, i think but when wonder what elon is thinking about >> can you imagine him being in a boardroom and not running the board? i know that they welcome him, but i think he's a trojan horse.

there's no way that the current, the absolute current make-up of the board and it way people have been going is at all in agreement with what musk would want musk wants a very different twitter. >> in your view how do you mean? what do you mean >> i think heme wants it to be more substantive i think he's trying to figure out how to make it so it's not just -- you have 80 million people, however many followers he has at this very moment i think somehow he'd like to convert the followers into something good besides just following. i think that all the things he's deciding that he's put out are all about how to kind of make it a little bit better, a little more flexible, but maybe to get it so that it's not a dying on the vine product the company always says things are going great, and yet, the stock always indicates the truth.

>> i guess, jim, some people think that yelon if you look at his comments about bernie sanders or president biden, they would say that he's in favor of even opening up the discourse even more than twitter obviously there's things that twitter has done f yo, if you lt the onion or babylon, people that aren't allowed on twitter, things that aren't allowed to be put on twitter, things that are allowed to be put -- there's a definite point of view that elon is uncomfortable with and want to change, and some people are going to like it and some people aren't. >> you guys made that example of "the washington post." i think the way i look at twitter is a lot of the way elon musk looks it's become a place where you can hide behind a name and just throw spit balls, and i think he probably wants it to be more substantive. people don't want a product

where it's just -- you tweet something. you're well meaning, and then you're hectored for the rest of the day for being well meaning he can make this -- i wish they would do two tracks, subscription and free for all advertising. i know a lot of people feel like -- unless you have bashing and engagement that's battles, it's a loser, and i would like to think maybe he'd like to see things a little more substantive. >> i think he's been open about what his plans are if you look at his twitter feed, back on march 24th, twitter algorithm, should it be open source, yes or no asking about the platform, if you need to have less censorship, do you believe twitter adheres to this principle. it sounds like those are probably the things he's going to be tackling first. >> free speech but not racist speech, free speech but not speech that recommends violence, free speech that makes it so that you really get some good ideas. right now i think twitter

basically is you tweet, you hope somebody looks and then you move on you used to go to the mention -- i remember i used to go to mentions, jim, i know you like toll brothers but have you thought about the idea that -- now i write i like toll brothers and they say you've got to do the opposite of toll brothers. blah blah, the same endless criticisms nothing that moves the ball, and twitter doesn't care at all about that i mean, twitter -- it's not clear at all what twitter cares about. >> he's been pretty actively talking about it on twitter. >> and you know what, is he uncancellable? he's like too big to fail it seems like, elon. >> andrew knows about that. >> that's right. that's right i throw that in whenever -- >> and i get a dollar. >> i get a dollar. >> you get a dollar, but we split it. >> oh. >> how about we pay good people. i don't know look, i mean, i think twitter's been going downhill since twitter started. >> right, right.

we may be subterranean at this point. thanks, jim, we will see you. >> thank you. >> like a boring -- like the boring company. >> that's another elon reference. former s.e.c. chairman jay clayton now a cnbc contributor let's put on your s.e.c. hat on this we were all over these filings yesterday. maybe it was our incorrect assumption that he was going to be a passive investor in this. i'm not as familiar with the s.e.c. filings, i didn't see it anywhere in there. it was largely written yesterday that he was going to be a passive investor today you have the news about him joining the board. you have what he's been saying on twitter before. does any of this bother you as a former s.e.c. chairman >> well, thanks, becky, and i think like many i'm sort of just catching up here let me give you my first blush reaction we'll see in the coming days whether his filing shifts from a

passive 13g to an active schedule 13d, but i will say in the area of disclosure and responsibility, i think you can look at anybody joining a board that has a stake as upping their disclosure obligations and their responsibilities to shareholders if you want to think about it through that broad lens here, by joining the board, he has taken on increased disclosure obligations, not just under section 13 that we're talking about with passive and active but under section 16 he's now subject towards profit liability and joining the board, he has fiduciary duties to other shareholders so -- obligations there's some good news here >> in terms of the on gas station -- obligations walk us through what this would mean is this a situation where he's not going to be buying more stock? they've come out and said he

won't increase his ownership beyond 14.9% while he's still a director of the board or in the three months after that. he could be continuing to buy shares, and we'll find out at some point >> well, once you join the board and we'll put the 13g aside, once you join the board of directors you have obligations under section 16 to disclose your trades within two days, and now you'll also be subject to short swing profits, so just taking a step back i can't go through the technicals in the time allotted, but you know, this indicates a longer term holding for mr. musk and twitter. >> hey, jay, let's not bury the lead you were the one who sued elon musk over his comments made on twitter and ultimately settled with him and put in place guidelines for the way twitter or rather tesla is supposed to

oversee his tweets do you believe that that approach will now be applicable to him within the context of twitter so it's twitter's general counsel and their lawyers going to be having to oversee any tweets he sends in regards to twitter >> let me be a bit rigorous here, andrew, you know, the -- is not going to comment on the specifics of it's a commission. >> i think we're losing -- jay, your phone's dropping out some i don't know if you're in an area with a bad signal >> i am. you caught me in the car but let's be rigorous here the s.e.c. action that andrew referenced was, you know, in relation to tesla. this is a different company, and so, you know, any obligations that he had with respect to that, you know, are to tesla related disclosure.

>> so there's not a broader -- a broader issue in terms of how he uses twitter, what kind of comments he makes on twitter, now that he's part of the board of this company, he will obviously have access to information he wouldn't have otherwise had before he was acting as a -- you know, a citizen, a user of the service now obviously he's acting potentially as -- not potentially, as a director does that change the dynamic >> i think you have to look at the various obligations and where they stem from, andrew, from different companies and the like i don't think there's a simple answer to your question. i wish there were, but i don't think there is sfwr jay, sfwr. >> jay, i've seen a lot of stuff on twitter of all places, people questioning what he was doing polls ahead of this. that didn't seem to me like a huge violation did you read anything there he was asking questions about twitter while he was building

this 9.2% stake? i don't think that's a violation but tell me if i'm wrong. >> becky, i'm going to leave that one to the regulators, but i'm sure that people will look at all of the activity in the past several weeks around this you know, we will do a retrospective on this like we often do. >> jay, thank you for your full-time today. jay clayton is the former head of the s.e.c in the meantime, we'll take a final check on the markets been watching the futures. they've been under a little bit of pressure this morning you are talking about the dow down by about 85 points below fair value you're also looking at the s&p 500 down by about 12 and the nasdaq off by 56 for the first two trading sessions of april, you did see stocks higher. the nasdaq was up by 2%. treasuries have been the other huge areas ofinterest. again, that inversion kind of flopping back and forth again. now at this point the two-year is inverted.

it's got a higher yield than the ten-year it's like, oh, my ggosh it's on, it's off. we'll continue to talk about what happens with elon musk through the course of the day. >> and tomorrow, probably day after that and the next day. >> and he keeps giving us more fodder we'll follow that does it for us today, make sure you join us tomorrow. right now it's time for "squawk on the street. good tuesday morning, welcome to "squawk on the street." i'm carl quintanilla with jim cramer, david faber, some weakness in futures as pressure increases, the titan sanctions on russia including possible bans on russian coal in europe elon musk of course joining the twitter board, promises changes. our road map begins with twitter. elon musk set to join the woboa. says he'll make significant improvements in the coming months shares are surging for a second day. plus