futures. there are green arrows, but barely dow up 38 points nasdaq up by 80. this comes after stocks fell once again yesterday the dow was down less than .50%. the nasdaq was the big loser took it on the chin. down by 2.2% this all happened as treasury yields continued to climb. minutes from the fmoc show the h fed is looking at raising rates and looking to increase interest rates. yields down this morning they were up throughout the session yesterday. 10-year yields 2.579%. andrew let's talk about shell it will writeoff $4 billion to $5 billion in the value of

assets after pulling out of russia this is the first impact of the oil majors exiting russia. they will detail the first quarterly earnings report on may 5th. that stock off 1.5%. joe. the billionaire founder of china's jd.com is stepping down. richard liu is the latest tech founder to step back from the business in china. that follows similar moves from bytedance. he stepped back from the company after being accused of raping a 21-year-old university of minnesota student in 2018. he denied that accusation. he will remain chairman of the board. jd.com's current president will take over at ceo and join the board effective immediately. shares of hp soaring this

morning after berkshire revealed the stake of 11.4% in the company. the position in the company is worth $4.2 billion based on yesterday's close. yesterday at close, the stock had been down 3% during the session. you see right now it is indicated up 15% this filing was revealed after the close of trading yesterday shares at $40.40 this is the third big investment by berkshire when buffett said little excites us in the shareholder letter that is then this is now. they had $144 billion in cash. it was a big war chest buffett said we had periods in the past and they he never last. that is the case this time you add up what they have so far. $4.2 billion on hp

$11.6 billion on allegheny and $6.4 billion in objeccident. >> is hp apple or ibm for buffett? >> it will take time. >> hp is a journey a journey stock? >> one apple and a lot of ibms >> that's the question how sticky is the business he loves the sticky business apple was a sticky business. he thought ibm was a sticky business it wasn't actually a sticky business it isretiscent. >> the icon is in silicon valley when they did it

hewlett and packard. >> it is cool to have that name. carl "the icon" icahn. meeting with g7 and other nato members meeting with the secretary of state the minister of ukraine asked for weapons, weapons and weapons. the u.s. announced new sanctions on russia and blocking sanctions on the two of the largest banks. they will sanction two of vladimir putin's adult daughters and family members and other top russian officials. >> think about that. it would be weird to be vladimir putin's daughter right now you wouldn't want to be out and about. >> you are sanctioning them, not

because you some -- the idea you sanction the oligarchs and family members to influence him. that is his money. that's where the money is. >> people are making sure none can transfer wealth to adult children and have a way of getting around >> i guess we still don't know how people think about this in russia given what they see and hear and what they are allowed to see this is some type of christianity >> the losses of russian soldiers add up. >> they have fathers and mothers and sisters. >> you have to imagine that is causing serious strive >> lately people have been saying this is years this is years. is it? i hope not >> i'm in that category. i'm in that category and years

at the same time >> he gets the east. that's for starters. you know, we don't know. let's talk about business. time for the squawk planner. jobless claims at 8:30 a.m. eas eastern. chuck schumer locked in a final confirmation vote for president biden's supreme court nominee ketanji brown jackson. she is expected to be confirmed from three republican senators the vote is expected at 1:45 p.m. i did not realize that the justice she is replacing will be around for another three months. july or august this is a rare amount of time between a confirmation and when they take their seat kavaunaugh was within a matter of hours breyer will stay until then and a lot of important indiccases h

on >> the supreme court is usually a position for life. not often somebody steps down. >> you don't have the person ready to go when another person has three months to serve. thousands of cryptocurrency enthusiasts in miami they are vying to develop block chain technology. >> trying to steal wall street. >> crappy bitcoin down >> what do you think about the bull >> what? >> the digital bull in miami evocative of the bull in new york >> is she gone or is she still there? that little girl >> i have not been down there for a while. i guess she is still there >> i think they had to move her. there was a whole brouhaha >> we have to ask "squawk on the street" crew

>> state street was the sponsor of it. the mayor -- our last mayor, loved her, and had to move her at the same time it was controversial let me get you information on that >> okay. anything to bring up the former mayor. i'm sorry i did that to you. we will talk about crypto regulation with senator pat toomey in the 8:00 hour. a couple of stocks to watch. samsung is projecting record revenue for the first quarter results. the company says it slois lookig for a 50% jump in profit from the period from the previous year samsung is citing the well received rollout of the smartphones for the results which are out later this month the stock right now is do down .75%. the s.e.c. is investigating how amazon disclosed business practices. that's according to the report

from the wall street journal it will include how it uses third party seller data in the development of its in-house brands they are telling the journal, no factual basis for claim of using other seller data. i was looking for a certainly type of bathing suit you get a few and then the knockoff brands. >> i never heard of that brand >> it is cute. it's for little girls. >> by the way, it was moved. it was originally set against the bull. >> now it is on the side. >> now they moved it to the side then another debate which has not been resolved about whether it needs to be moved again. >> i know it was moved to the side i didn't know it was gone from there. >> according to the folks at wikipedia. >> ruffle butts? >> it's a cute brand >> i'll not say anything

>> it's not for me it's not for you ruffles on the rear. >> i'm not familiar. how do you know it's not for me. >> trust me. >> i'm on the web site it's not for you >> you can't unsee it? you can't unsee what you imagined >> they do make them for boys. >> they don't have ruffles on the butt for boys. >> we wi wil >> we withl get you a romper, joe. when we come back, the fed signaling the half point rate hikes are coming as soon as next month. and later, ron baron is coming up at 7:00. we will get a chance to talk to him about the elon musk news and what is happening with twitter and what he thinks about tesla and spacex and lots of other st stocks you are watching """squawk box"n

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switch today. the fed minutes giving the markets more to think about as the central bank plans to reduce the balance sheet and signal .50% rate hikes are ahead had. steve liesman is here with more. steve, the markets are slowly coming around to this the last couple weeks

>> it is the grad ual wakeup the widespread support among members for what amounts to one of the most aggressive tightening cycles since 1994 here are the main points balance sheet runoff we got the details up to $95 billion per month. we will get to details in a second 50 basis point hikes could be appropriate. they want to move to neutral ex-e exped expeditiously. $95 billion of capped runoff per month. that is maybe $10 billion to $15 billion more than the street expectation. that breaks down to $65 billion this treasury and $35 billion of mortgage runoff. they will have trouble reaching the mortgage number. they want to reach these levels in three months.

they might sell mortgages after the runoff is under way. they want to get to a treasury only balance sheet the plan wants to be adopted at the may meeting. that looks certain given the support expressed in the minutes. morgan stanley writing the tone of the minutes showed more concern among policy makers of the inflation mix compared to limited discussion about growth and risk to the growth outlook the minutes also said most fed officials would hike by 50 in march, but didn't because of the concern of the uncertainty with russia's invasion of ukraine now the question is is this the plan aggressive enough this comes a week before the government is set to release the consumer price index on thursday this could be well over 8% becky. >> steve, this has been the strangest quick inversion that we have seen in a long time.

i'm not talking about treasury yields the idea that everybody on the street, smartest people on the street, saying the fed was behind the curve they really needed to do more. the fed was doing nothing. the fed was still buying more and adding to the balance sheet as early as lastmonth. now, suddenly, they changed their minds. going the opposite direction they want to get rid of everything suddenly, the smartest people on wall street are saying this is going too much what happened? >> it's -- it's a good question. i hadn't thought about that. it is true over time that the fed came to realize it was behind the curve and stayed too long on the issue of quantitative easing. they were buying assets up to march. i think there's -- maybe a cat-and-mouse game where the fed needed to do more in general you have to forecast two things.

there's the idea of what the feds should do and what the federal reserve will do. the fed has been evolving and the street's view of the fed has been evolving. it is not perfect. it does happen over time you say that, becky. look at the two-year yield the two-year yield has gone up the best easy indicator of where the fed is going that climbed sharply the fed has expressed a lot of tightening in the market we are at 2.40 it has been as high at 2.50. i think there's general, what's the word i'm look for, agreement here on near term. the 2% to 2.5% by the end of th year isbaked in. the question of whether or not how much further they go after

that >> i think it was interesting. we had barry on the show yesterday. one of the best voices with the economy and what is happening in markets and real estate. he suddenly flipped. he had been saying for a while the fed needs to do something. he said oh, no the fed may do too much. it is fragile in places. i don't think it is a question of what they do for the next few months, but immediately afterwards, maybe they should pause and see what happens by the way, not just barry i spoke with people yesterday. phone calls with people. some of the people who had been talking about the fed needs to do something now stepping back and saying wait we want them to do something hopefully pause and see. the message is whoa. this is too much in the other direction. >> i'll hold up right now a highly technical piece of

equipment i use. a yellow notepad >> hey, steve, look. you and me, both this is what we do >> the most important piece of equipment i have that and my calculator and spread sheet what i was doing, becky, was writing down the percentage contribution of different items to the cpi and what the share is of the cpi i was trying to figure out for a story the next couple days of where and how the federal reserve will effect those items of the cpi when i go down the list, i have given away the store next week food, 13%. shelter, 13% transportation, 7% i'm trying to figure out how the federal reserve is going to effect those things. i'm having trouble figuring it out. food prices are going to go up because of ukraine and russia

right now. medical prices will go up. car prices are up because production is down because of the chip thing not only is there a worry and the reason i'm answering this way that the fed will do touch i have this other concern. i'm not sure it will have the effect it wants to have and how it will get in front of and solve the situation. >> they have blunt tools that was barry's point the fiscal spending will not end. you have the build back better infrastructure bill. $1.2 trillion. that spending hasn't even begun. you will still have money that's inflating things for workers and inflating things for the concrete and steel and everything for infrastructure projects you know, barry's point was it is really expensive to build housing and hotels and commercial real estate and all

of those things. those projects are starting to halt because it is so expensive and difficult to find people to work in those jobs those inflation pressures will continue >> you can't effect the supply side of housing. a deficit of housing you just can't build the houses. there are all of these companies that own all this housing. they are renting it and having no problem financing it. the fed raising rates doesn't effect that part of the housing issue. >> the fed continuing to buy mortgage backed securities doesn't help the situation >> it is not helpful if the companies that own all of the housing have financing locked in through the cmbs market, then the fed raising rates is only going to have a minimal effect on blackstone and massive ownership of houses. i don't think it effects their

ow ownership. >> the wrong part of the economy. the economy we need to keep powering we have a lot to talk about. >> i don't have a lot of good answers. >> i like your story for next week thank you, steve >> we'll keep talking. a lot more to come this morning. president biden offering support for the union push at amazon we with wi wil for the union push at amazon we with wil show you what he ha say. and a new fly list for unruly passengers this time. and redditco-founder alexis ohanian joining us >> announcer: this cnbc program is sponsored by truist securities

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welcome back to "squawk box. president biden expresses support for the union efforts at amazon here is what he had to say yesterday. >> that's what unions are about. providing dignity and respect for people who bust their neck i created the white house task force on worker organization and empowerment. the choice to join the union belongs to workers alone [ applause ] >> by the way, by the way, amazon, here we come watch!

watch! >> welcome back. welcome back coming back from commercial? the president endorsing a union drive across the country, but stopped short of naming amazon specifically until now what do you fascinated by the pr unions now there is a major shift in the workers at the places. a lot of these have become the temporary jobs just the sense of what a union is any more. you would unionize because you are there for 10 or 15 years now in the universe of people in a job for two years of the by the they may need more protection. >> the moment is now because of the pandemic the workers on the frontlines at starbucks or warehouse or the grocery store.

there's a movement that said we stayed and did these jobs when everybody else was working from home we got temporary pay increases and their point is they like permanent increases. you are right. these are temporary jobs last week, they interviewed a barista. he said i want to fight to make sure others get it the question is what will show up if you look at the numbers of anything that happened with the amazon warehouse vote. i was shocked about the one down south. there were 6,500 workers 1,000 workers voted for it and 1,000 voted against it vast majority who did not vote at all >> just like the rest of the country. >> union membership has dropped 10%. it is the lowest level you have seen despite the movement that says okay, this is the moment for these things we'll see. we'll see if there is more

apathy or a movement for the workers to want to do this >> parties view corporations differently. it is almost cliche. i have a half view of amazon i don't use it i don't like the way the guys park the trucks on either side of the street. they are facing my side of the street facing me when i'm driving. they park. six feet from the curb because they're amazon >> they're on the clock. they are trying to move stuff. >> i'm trying to get around. >> traffic has increased from the delivery trucks. >> do you target amazon? we're coming for you because you are such a bad guy it gets tiring we'll talk about the oil companies coming up. >> what are you doing! >> it gets tiresome.

i don't know >> look, i think it remains to be seen what the workers want to do that will play out we'll see. there is a new bill in congress that would add unruly passengers to the tsa no-fly list under the legislation, those convicted of assaulting board members could be barred from pre-check and global entry programs or added to the no-fly list the faa received 6,000 reports of unruly behavior the airlines have a list of passengers barred from those planes, but not among carriers that may be the next thing bad behavior in the air. terrible situation. >> what do i do for pre-check, andrew they say you don't have tsa pass is it a web site sign up? >> let me say, you might want to get in the c.l.e.a.r. line

it takes longer than the tsa pre-check. >> i got a c.l.e.a.r. thing for a tournament >> they can track your vaccine status, too. you have to go to the airport and do it. >> you need to sign up and pay. >> if i go in the tsa pre-check. what is the advantage? >> you don't have to take your shoes off. >> i have slip ons >> the c.l.e.a.r. service is great when it is working you get to skip the pre-check. >> how do you do that? >> if you have a platinum american express card, you get to sign up it's free. you can sign up -- i don't want to be an advertisement for the service. you can sign up at the airport. >> can you come over here on break? >> you have to at the airport. go for a flight. >> you have to show up >> as you know, for me, you

don't need to show up early. it takes two minutes get there and just walk -- if you have an american express just pay >> i think i have one of those i'm not in possession of it. someone i know has it. not my wife. someone else who has trouble keeping track. >> once you do the c.l.e.a.r. thing, you will find yourself in the c.l.e.a.r. line and realize that line is longer than the tsa pre-check ine. >> not very often. >> i have had it happen a bunch of times this is interesting. coming up -- >> it happens with ez-pass >> gm looking to step up the hummer ev production. and we are celebrating financial literacy month here is nelson rineri with what

he learned coming here from cuba >> i arrived here from cuba when i was 3 years old. he had $50 and a lot of dreams we he learned we live in a country and those willing to learn how the financial system works and educate and work hard, there are paths to increasing personal wealth. it is an exciting journey. i encourage you to take advantage of the free resources to educate yourself more on personal finance >> announcer: executive edge is sponsored by at&t business at&t 5g is fast, reliable and secure that's the one with the amazing camera? yep! every business deserves it... like one's that re-opened! hi, we have an appointment. and every new business that just opened! like aromatherapy rugs! i'll take one in blue please! it's not complicated.

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good morning welcome back to "squawk box. futures are in the green not big gains for the dow. up 27 points s&p up 11. that is better on the percentage basis. nasdaq is a bigger climb up 70 points this morning. this comes after the down day yesterday. the nasdaq down significantly with the higher yields across the spectrum

gm's hummer evs starting to roll off the line for delivery now looking to boost production. phil lebeau is here with more. lebron is in one of the commercials? it is a cool vehicle >> they have been advertising with lebron for some time. latest with the crab walk. >> that's right. >> cute commercials. he's a great pitch man at the heart of what gm iss doig with the hummer. they started delivery of the electric hummer last year. a handful were delivered this is us driving it in arizona last week. they have more than 65,000 hummer reservations. they believe they are just scratching the surface with the appeal the presence is part of it

the crab walk and ability off road we did the crab walk you would not use it all the time there are certain situations a parking lot where you would use it hummer sold out through mid 2024 which is why the gentleman in charge of the program says we have to find more production for the hummer >> i think the acceptance in a way and awareness is increasing. we see that with the research we do and people we talk to people are attracted to the vehicle because of what it is and what it does >> they believe they are just at the beginning of the hummer, in their words, doing well and being a game changer look at the u.s. ev market share. you know a name you don't see? gm they only delivered 400 evs.

remember, they had suspended volt production. they started that back up this week in fact, yesterday, they expect record delivery for the chevy volt the hummer is what they expect to be moved to eventually surpass ford and voelkswagen here they are lagging ford and tesla in terms of ev deliveries, but in terms of the stock price and what investors are looking for when it comes to the auto stocks, ev expectation right now, right or wrong, that is driving mostmentum in the auto stocks >> phil, a prediction from you 75, 9, 4, 4, 4

tesla? tesla down from 75 bmw? mercedes-benz? what are the names >> they will not have 75% market share in five years. you will have the lightning coming to market you will see everybody else come up and tesla come down do i think they he will pass tesla within five years? i don't know so. i don't think tesla will not be the market leader in the u.s. within five years. it is not going to have 75% market share there are so many more models for sale. >> 50% of a bigger number is a lot more than 75% of a smaller number at that point you would think. >> sure. absolutely look, they kickoff giga-texas at the factory outside austin this is what you will see not from just tesla, but more automakers with more plants and

more ev production. >> okay. thanks, phil when we come back, fallout from the fiery hearing in washington about high gas prices at the pump. we will talk to a congresswoman at the capitol hill grill yesterday. and later, banking committee lead republican senator pat toomey with new legislation aimed at cryptocurrency legislation. he will talk about his proposal. "squawk box" will be right back. >> announcer: currency check is sponsor ed p ed by interactive brokers. the professionals gateway to the world's markets.

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executives from six oil and gas companies faced off with congress over sky rocketing gas prices and who is to blame >> it is time to lower prices rather than pad your bottom line. >> the price of oil and gas and other refined products are driven by international markets. >> we have no tolerance for price gouging. >> president biden walked in with the agenda to kill american energy >> consider the culpability for higher energy prices

>> michigan congress member debbie dingell in the hearing. after hearing both sides yesterday, congresswoman, what is the narrative at this point for who is to blame? is it vladimir putin or is it oil companies and ceos >> so, i'll tell you as someone trying to be objective here that the war has placed increased pressure on gasoline prices. they were already going up to some extent. what it has shown is the volatility of our dependence of other countries on our supply of oil and gas. so, i do think a number of facts came out yesterday look, i'm a car girl i was listening to bill. i remember when i was getting a hard time about that bill. this doesn't justify they made

over $75 billion the past year and they are projected to make more the break even point on a barrel is $30 they are charging way over $100. at what point -- by the way, they get subsidies from the federal government i can't tell you the stories i heard from people back home crying over the cost of gas and they cannot go home to visit at christmas because gas prices are so high. another woman who visits her mother on sundays cannot afford to go home i'm a free market person i think what we have watched and what yesterday demonstrated to some extent is our dependence on other countries and diversifying our energy portfolio and becoming less dependent of fossil fuels and moving electric vehicles

that's where wite have to be for our national security. >> congresswoman, we have a lot of financial types and traders and a lot of people in that business globally. they hear that argument and not sure what to think of it it's a global market for oil when supply and demand dynamics push a barrel of oil, whether wti or whether -- whatever you want to go, it is a global commodity. they don't set the price of oil here what they get out of the ground and break even point is another issue. it goes to the refiner after $100 a barrel. then a certain cost associated with that and transport and everything else. whether there it is douj gouging at retail outlets. the other thing i would say is

the capitalist system, you risk capital. you either make a lot of money when prices are firm or you go did through some very lean times. the oil companies did that for the last four or five years where prices went negative at one point. shareholders risk capital and the price is wherever it is, you think at that point they should sell at cost, but when things go down they should assume losses it doesn't make sense in the capitalist system. >> i worked for gm for 30 years. i believe we are in a war situation. we see independence in a world market at times, we are the largest -- we cannot impact this way what is going to pay more you have to look at why we have been incentive to an industry making so much money

also, as you were saying, it highlights our dependence to russia and saudi arabia. is it not better to get better independence? isn't it better to get better energy. >> would you concede democrats have pretty much more dependent on foreign -- i talked about it yesterday with another one of your colleagues and i mentioned some of the comments from your colleagues it said will you commit to matching your european counter parts in releasing the production ofvkwñ■oil? are you committed to lowering the production of oil in the united states to where the paris accords say so is it a yes or no? we point out that 26 democrats signed onto a bill or coauthored

a bill that would ban fracking and ban the export of oil. dedid you sign-on to that, congresswoman? >> i don't know which one it is but i could be on i do know

right now we get a lot of customers who are really hurting out there. people need help at the pump >> congresswoman, i understand the argument i've heard we're in a war situation, but we're not really at war. we've taken pains to make sure we don't get involve in this war, we're just playing on the side lines, we're putting down sanctions. we're not in a war, and i understand in wartime in this country we take extreme measures, but to say that there's a war somewhere else and we're in wartime as a result i think stretches credulity. i really do. >> i would argue back at you i'm very helpful we do not put foot on the ground inukraine.

>> a lot of the food company ceos inflation is not just -- you can't blame the oil companies for what's happening maybe some trickle through, but there's inflation across the board. >> we've got to understand it. >> is that all gouging by these corporations or is it something bigger going on with this widespread inflation >> well, i think there's something very much going on and look, i do sit here and look at every single issue in industry and what the problems are very clearly the supply chain has significantly contributed. and you come to michigan you've got a parking lot of vehicles -- >> i want to come to michigan in the summer >> i invite you. >> northern michigan, i love all

those places it's cool. it's like maine almost it's really nice not humid. beautiful. >> i invite you to come to michigan and i'll travel around with you >> you got a pool? you have a house on the lake >> i'll take care of you >> all right, we'll talk about that i've got a wife and kids, though, and dogs, too. >> we'll figure it out >> congresswoman, thanks appreciate it. that's nice. >> i love it i love seeing this back and forth. >> you know family -- >> oh, all of us >> squawk michigan. coming up we are going to dig into the move lower for tech stocks what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations,

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wall street suffering losses across major averages yesterday as minutes of the fed's march

meeting showing the fed considering more aggressive rate hikes and a big balance sheet reduction. joining us right now to try and figure out what to do with all this is citi group's global wealth management head of north america investments. good morning to you. >> good morning. >> what do you do a day after? >> it's a tough market >> are we late to the game at this point the. >> i don't think we're late to the game look, the fed has basically told us once, told us twice and three times. so what they're going to do from here on out is fight inflation this does make it a bit challenging for investors because it's hard to find conviction in this market. what we've been doing and we've been doing this over the past couple of monthsis upping quality. because when you look at the different scenarios that could play out from here, you could either say it's going to be robust, resilient or we're going

to be in a recession we're in the middle of the road in terms of resiliency, so with that you want the companies that can withstand the supply shocks and the inflationary pressures and actually have durable demand for their goods. >> so what does that look like and to the extent you think -- are you in the camp where deutsche bank is what this whole year looks like 12 months num now? >> we're in a camp where we could actually expect some moderate returns and have balanced portfolios even looking into the fixed income markets. one of the areas that has absolutely gotten crushed obviously in first quarter is fixed income one of the things the market is very well pricing in right now is the fed's path. have we reached peak rates yet maybe not. but what we're looking at especially in the intermediate space is opportunities there munies are becoming very

interesting for taxable investors. when you look at has spread and the yield ratio once that starts to hit about 80% and you see what the taxable equivalent yields are which are in the high threes, that becomes an interesting way to diversify portfolios >> what do you tell the investor who's watching right now who is let's say almost all in on equities, meaning most people have not been playing the bond market the past couple of years because that's been not the place you've wanted to be. >> i would say if you're all in on equities, you need to check some of your concentrations. take a look what stock and look at the volatility market the vicks with that 18, 19, we

saw it come above 20 in the release of the back of the fed's minutes release yesterday. but that creates some opportunity to create some hedges when you see volatility spike, you can monetize that volatility and sell some options whether it's to augment yield or build positions at a discount to where they're currently trading. so volatility isn't always bad we just have to take advantage of those movements >> thanks for your advice and your counsel good to see you. >> good to see you, too. you are watching "squawk box" right here on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin and we have a big line-up in the next two hours including an exclusive interview with legendary investor ron baron and

reddit co-founder. let's take a look at the futures this morning we've been in the green just a little bit this morning. dow futures up by 23 points, the nasdaq up by about 58. >> we've got three things investors watching today energy giant shell saying it's going to take a 4 to $5 billion write down after pulling out of russia it would create a new no fly list for people convicted of assault on planes. more on all those stories throughout the hour. meantime treasury secretary janet yellin tall calling the new frameworks that appropriately assess risks

she's going to call for an approach she says balances benefits and risks and one that's technology neutral. she and a lot of folks are coming around on crypto. >> we'll get to don in a second. what happened to libra gone this is their next attempt at some type of crypto online -- >> i don't know. libra just never happened. i'm buying the miami token at this point >> miami is a pretty cool place. let's get to our buddy, dom. it's a big day, dom. opening day for mlb and then some other stuff somewhere you've got some movers >> there is a golf tournament going on somewhere, i think down

in the southern united states, maybe in the peach state, maybe in dpa, somewhere around there to your point the mlb opening day that's great but in new york it's canceled for the yankees. a few of the stock trends we're watching so far. massive sell-off yesterday and a lot of it was driven by the sphere that rising interest rates that the fed is going to be more aggressive on interest rate tightening and at the same time trying to dwindle down its balance sheet. all of those high interest rate worries are translating into valuation concerns for some of the biggest growth and tech stocks out there we are drifting slightly lower i hear below 2.6% right now. microsoft shares flat right now after an outsized loss day

amazon, tesla trying to find some stability after losses yesterday. amazon fractionally higher right now and tesla up watch that particular space. also watch what's happening in a big deal in terms of stake being taken. it's taken a $4.2 billion stake in hp. the hp that makes personal computers and printers, those shares up 14% right now. by the way, that makes their stake in hp roughly 11% of the overall company. warren buffet in the past not known for taking stakes in energy companies or technology companies. but here kind of a regime change transition right now and then you mention those

crypto currencies and the breaking news with what the trashtry department might be doing with some of its stance on crypto currencies. all of this is going on as miami 2022 continues to go on in miami, the biggest conference of the year for a lot of folks out there in conferences bitcoin and either, i want to point those out because they're both fractionally lower. either 3,200 they're now both below their 200-a day average rolling. we're kind of in this no-man's-land trying to figure out exactly where we could go. joe, back over to you. >> you've got a lot of rain down there. i don't know what that means for, for hitting it into the greens >> it might mean scoring conditions >> i know. i don't like that.

i wigts sh it was dry. >> i'm coming around to this idea i do not have full disclosure any of these daily fantasy or betting-type apps on my phone >> daily fantasies, dom, i didn't know where you were going with that. >> here's what i would say i fear, joe, if i go down that path of putting a fan duel or a draft kings on my phone i will be consumed by it. >> that's not going to happen. i can vouch. >> and if i have to use your $5 rule, i can get behind that. >> i acted on collin py■y■y■y■y. i think dechambeau is hurt or not playing well >> speaking of dechambeau, one of the things i found interesting we talk about this evolution of golf and how

augusta national has done a lot of great things with bringing attention to golf because they put the augusta women national around the weekish of what's happening, so much focus on golf i was amazed did you watch these do perfect videos of brysen dechambeau at augusta? >> no. i saw the teenager win last week, which was unbelievable womens amateur >> i guess my point i would have never thought augusta national pairing up with a viral sensation like dude perfect to make videos with brysen dechambeau i mean it's a seat change for sure >> all right, dom, thanks. it's happening it's thursday. i'm sorry. sue me see you later. coming up legendary investor ron baron is going to join us. talking about the recent market volatility, what the fed is going to do next and maybe tesla, maybe elon musk might

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welcome back, everybody. elon musk's big move this week joining the twitter board of directors possibly shifting his focus away from tesla and their shareholders i don't know if i believe that or not joining us right now is one of tesla's biggest shareholders, ron baron, a friend of the show. and it's good to see you

so we've been talking about tesla -- >> great to see you, too >> and when it came up with his move into twitter obviously your name came up, too, because you've been a big backer of his. you've been an investor in elon's company tesla since 2014. >> yes >> andpeople immediately thought, okay, would you follow him into this twitter world? my expectation is no, you would not because you'd do your own research on it >> that's right. we wouldn't and we didn't. i think he's investing because other companies spend a couple thousand dollars per card with a sell and elon spends nothing he's been so successful getting everyone to know who he is, he doesn't have to spend. everyone knows about electric cars, and everyone is going to know about star link stat lites

without him spending anything. so i think it's important for him to know twitter is a viable, strong candidate i know they haven't performed well as a business for a while and maybe he can help them a little bit i don't think they're going to kick him off the platform. you see what he did with spacex and star links in ukraine. unbelievable they in 48 hours were able to provide the ukraine government with the ability to communicate with their armed forces. just think that 48 hours and they have i guess 2,100 satellites right now going around the world, and each of them goes eight or nine times. they were able to get these satellites turned on over ukraine in 48 hours and then shay ship thousands of user interfaces where you communicate with a satellite

and the defense minister of ukraine thanked spacex for the help they've given to help them survive. >> yeah, it has been incredible to see let's talk about what you think about elon specifically when it comes to tesla right now there have been some people questioning whether he's taken his eye off of twitter does it concern you as a tesla shareholder to see this happen >> i don't think that's part of it at all. i just think this is helping his marketing. and when you think about the valuation that he has invested in tesla and in star link and spacex, which i think potentially in 15, 20 years going to be bigger than tesla, no, there's no way he's taking his eye off the ball of anything i was talking to tesla

executives i guess about a couple months ago and i was saying so how does he do this, how does he accomplish this? and they told me that's the same thing. he says how did you get to be so successful, and how did you achieve what you have? and he said it's the same thing, pushing everything, there's nothing that's ever good nough question everything. you're always saying how can we do it better intel their process is to copy everything they do it and do it a little bit better if he can make something better than it was before, cheaper, faster, higher quality, he did something in tesla we were down visiting their new factory in austin, texas about just before thanksgiving and hadn't been opened yet this plant is 10 million square feet what that means five pentagons

can fit inside and i'm asking him and walking around and saying how do you do this and the guy squiring us around is this young man and first thing i ask him is how do you get so big, do they face you to sun, water you, feed you, how do you do this? and he used to be one of the top guys at ford in the ford 150 program and mechanical engineer, ph.d. 41, 42 years and really cool guy and he's describing the way they've started to do casting. and so casting in the front part of the car nobody else could do this it's a big investment you have to make and have to have the expertise. and casting means you're replacing -- he replaced 150 parts with three parts >> what do you mean? >> he gets off an airplane and playing with a tonka toy and he says why can't i cast my car

everything is higher quality, faster >> doesn't require as much labor. >> and less labor, yes, cheaper. so he's always about making things cheaper and making things better and making things faster. >> you have been a long time bull i didn't realize you have 12.8% of your assets under management in tesla at this point >> yeah, because it went up 20 times in the past two or three years. if you might remember when i was on initially and i was describing the investment i said i thought we would make 20 times our money in this investment and we invested $380 million, and between 2014 and 2016 average price was about $40 a share, and we've made about -- about, you know, 20 times so far. so we've made about $6 billion so far we've sold about a billion dollars worth of stock >> just because you didn't want

it to be an even bigger position in the portfolio >> yes, well, what it was i was getting widely criticized for having such a large percent of my assets in one stock, and people said how can you be so crazy, so i wanted them to think i wasn't crazy i know i'm crazy, but they didn't want -- and didn't want people to say, you know, he's lost his mind. and even though i think for tesla this is the very beginning of what they're doing i mean they just reported a couple days ago and said they did 310,000 cars in a quarter, in a three months period of time. general motors did 24. not 24,000, 24 i'm a huge fan of. and we're an investor in crudes through her private company.

but where was i again? >> just in terms of what will you do next. you think this is just the beginning for tesla meaning what >> people said they should have done 317,000 cars in a quarter, but one plant in china was closed for about four or five days and supply chain problems in this period of time and so everyone is focused on in four years now a million cars a quarter, and if you go ten years something like 5 million cars a quarter. so here you are doing 310,000 cars and people saying a few thousand more, a few thousand less i'm thinking about in eight or ten years, this is 20 million car company -- >> you expect to be an investor in 8 to 10 years >> yes >> are you selling anymore shares >> periodically if people say,

you know, if it gets crazy big relative to the size of the fund right now. i own a million quarter shares for our firm in the company. i have not sold a single share of that and i don't expect to in my lifetime. the same thing with spacex i think we're going to make three, four, five times our money from tesla from here. and in the case of spacex i think over the next ten years we'll probably make 20 or 30 times our money. >> when do you think that company goes public? >> i think it's unlikely spacex is going to go public anytime soon, but this star link business they have, i think that could go public in the text three years, and that's the business that is ultimately -- i was describing to ukraine i

think that's the business that could ultimately address potential market of a trillion dollars, actually multiple trillions for government, for commercial, for people who don't have internet. if you want to have more equitable distribution of wealth in the world you have to have people educated. the way you get educated is you have to have the internet. if you don't the internet, you can't accomplish that. so this is broadband, satellite internet and you know it's an unbelievable business. and the reason they can do it and other people can't is that they have no costs per launch. everyone has launch costs of 100 million, 200 million, $300 million per rocket and use it one time and it burns out. our guy sends up his rockets, brings them down over and over again, so his cost is a tiny fraction of the cost of a rocket >> let's talk about the broader markets right now.

you've got the fed talking about how they're going to bring down the balance sheet more quickly than the street was probably anticipating, maybe raise rates more quickly than that, too. you've talked about inflation for a very long time because inflation eats away at your money. is this the right time to be in the markets? the markets concerned, we've seen some pull backs but at the same time if inintermission is high where else do you go >> i have always thought that investing in businesses, piing stocks in these businesses is the way you protect yourself best against inflation everyone says it's a big problem right now. so let me talk about inflation in the last quarter or in december i wrote about inflation. and i gave a chart that showed in my lifetime the last 50 years i'm conscious in the world

everything you want to buy doubles in price roughly every 14 years doubles in price every 1 years the stock market on average doubles about every 10 or 11 years. so it's faster than inflation. and what we try to do is double our money every five, six, seven years and investing in companies going at 15% plus a year so that's what we do and when i think about inflation what i was describing in the letter is everything is 4 or 5% a year, whether it's a house, tuition, whether it's wages, whether it's cars, everything, meat, food and just to give you one example one of the things i wrote about in the chart was the price of sir loin and sirloin when i was in law school, it was 67 cents a pound. i look up on google and it's now $11 a pound. so now it's a saturday night and a couple minutes ago and there's a blizzard in new york and judy

says you've got to get us food there's a blizzard you've got to get us food. i walk out and go up madison avenue and there's a butcher shop on the left-hand side, and it's a big glass window. and i walk inside and there's a guy in there behind a glass counter and see these incredible large beautiful steaks, i said what is that the, and he said that's a sirloin steak and i said how much is it? and he said $67 a pound. i said i couldn't shop here and afford it when i was young and still can't afford to shop here. so everything is inflation, and what you have to do is protect yourself against that and investments in growth companies are the way we do that last night before i came on i looked up and there was a -- i found notes i had taken for an interview i did in april of 2020, market's way down, and same thing it was just -- so i

felt funny coming on for a while when people are worried about war and worried about inflation, worried about covid and interest rates and oil prices so i worry about this stuff, but i don't think about that you just think about the long-term. and the way we have outperformed over the long-term is because we invest in companies when they're investing in themselves. when they invest themselves they penalize current earnings. and as soon as they say i'm going faster, what happens stock prices go down i'm going to go faster, stock prices fall. why? because people know as soon as they say that then that means they're going to hurt their earnings in the short-term and get a chance to buy stock at lower prices than you would in early. >> let's talk about one of those companies you have invested that hasn't done well this year, and

that's shopify you have assets under management there. it's only about 0.5% of our assets under managementch. >> those are the businesses interesting to me. what's interesting is they enable small businesses to access the internet, and they provide all kinds of services that once you start using them you can't switch so ability to switch to someone else is impossible, and amazon takes these businesses and then they try to duplicate the same thing and hurt the businesses you were their customers this company doesn't do that and the stocks have opportunities to provide more services and provide higher prices >> and so you are a believer in this have you bought more during the downturn >> a little bit but not very much it's something we have a lot of investments that we start and we learn about them, and we grow the business and when we were buying tesla it was 2014 to 2016, and we were buying the

stock in that period of time, and it represented the time in less than 2% of our assets this is 50% of our assets. it's something we're spending, learning about but we don't know enough about it yet but we're working on it. as you can see there we have $200 million invested for our firm, something like that out of 50 it's not an investment yet but maybe it will be you make an interesting point and this is something other critics have been looking at, too, the idea of amazon riching off its customers and hurting those businesses maybe they hurt them down the road does that make you not an investor in amazon or is it just the price, the share price that keeps you away >> well, i haven't invested in amazon unfortunately for me. and one of the portfolio managers or two or three of the portfolio managers at baron capital have and they've done well in it

it hasn't performed well in the past year, but he's a brilliant guy and built amazing businesses, amazing businesses and this is not exactly -- they're investing in logists and oh my god how can they be competitive in logistics and amazon is a logistics company. i'm not 100% convinced yet but we're working on >> i think andrew has a question as well. >> hey, ron, i want to go back for a second to elon musk, but in connection to something -- to some degree with jeff bezos and amazon we've been talking all week about elon musk's decision to get on the board of twitter and the debate we imagine is going to happen around censorship and free speech, and we've seen what elon musk has

talked about in that regard. i'm curious as a shareholder of tesla and also of spacex how you think the political or what you think of the political implications of that and we've compared it to some degree to what happened with jeff bezos buying a piece of "the washington post." he's done remarkable things with "the washington post," but there's also been as you know political and to some degree you could argue economic blow back on amazon. what do you think of that with regard to tesla? obviously the defense department, taxpayers are a huge customer for spacex you could see political debates emerging around potentially again twitter becomes a bit of a bank shot but i think some investors have been thinking about this issue >> i think it's meaningless. >> because >> it's a tiny investment $3 billion for a man who's worth $300 billion he has tesla which is worth a trillion on the way to being worth 3 or $4 trillion there's no way this can be anything meaningful to him,

period, meaningless. >> i appreciate that perspective. the reason i ask it, though, you could argue for jeff bezos "the washington post" could be meaningless and it only cost him $250 million on an actual dollar basis it's meaningilous, but when you think of the mind share it took up in the last presidency where you have a president who decided to target his company as a result and elon musk made some comments about "the washington post" and therefore amazon he targets them in the same way, and therefore whether that could happen in a similar way to musk's companies >> one of my friends is one of the best traders alive and he calls me a month ago and he said, ron, tell me about where does elon get his nickel from for batteries and how much does he pay for it? and it's spot prices or long-term contracts, and so i give him a little bit of

information and say but david you're missing the point this is company doing a million 2 or a million 5 cars this year and going to do 20 million cars a year in ten years and going to have autonomous driving which musk thinks is the biggest innovation value creation that's ever taken place in the world worth over a trillion dollars alone, that alone and they're going to be able to sell -- you know, if they sell 20 million cars or 50,000 or there's a trillion dollars, they're making 30% profit margins the industry is making 7 or 8% the industry has union issues. biden loves unions, but i'm doing fine with people making a lot of money i'm not fine with people who are workers saying this is the way i should work and this is the job i should do and this is how i should perform i think that when youfocus on issue that's not relevant to how

large companies have become, you know, and we want to have electric cars, that's our goal we want to have alternative energy musk -- tesla has, you know, solar roofs and batteries and insurance and ride share and it's one thing after another after another you say, oh, my god, and this company is valued for a trillion dollars now it's certainly 2 trillion but why isn't it worth 2 trillion or 5 trillion and when you focus on something that's meaningless or will never have any impact on anything and it takes away from looking at the big picture just like when you think about interest rates as opposed to think -- you have to protect yourself against inflation so these things we don't care about. it's not relevant to me and people can pick up a short teller or a long guy or hedge fund, you can pick up something

you can trade on and not relevant >> step back as an investor just in general in buying stocks and not listen to the noise around you. >> very quickly let's talk about charles schwab i think it's 1% of investments under management. >> since 1992. so our initial cost in that stock is less than $1 a share. in fact the former cfo was on when he left schwab, knows me since 1992 or 1990s and great basketball player, by the way. anyways when he met schwab he was on our board and chuck asked

him to turn to beoon the board of schwab, and he had to resign the other board seats because it's a conflict. chuck said you can stay on ron's board and you can attend his meetings, you just can't vote. if there's any conflict with schwab you have to leave we have a business with carls schwab that's it 50 million, 100 million under management we couldn't make it grow too hard to do business with you get recommended and all of a sudden our business starts to grow we go visit them and enamored he took all this money he had invested in technology and gambled the whole company in technology and built this incredible platform and fidelity followed him fidelity another incredible company. and because they revolutionized the way you buy mutual funds

instead of having to send money to us you send it to charles schwab and we pay them to make our funds available. >> it's an investment. >> ron, i want to thank you very much for being with us this morning. it's great to see you in person. >> great to see you, too we really appreciate your time thanks, becky, great interview. meantime let's get a quick check on the markets right now, show you where things stand futures ahead of the open, open down about 21 points on the dow nasdaq looking higher about 40 points higher. the s&p 500 higher as well also show you treasuries you're looking at the ten-year note right now, 2.607. two-year by the way 2.51

the fed will be the focus with the fed president speaking still to come we're going to talk about should twitter followers join elon musk on the dance floor or or head for the th'sheit at t topic with john fort. he's going to talk with us after this ♪ ♪ nice suits, you guys blend right in. the world needs you back. i'm retired greg, you know this. people are taking financial advice from memes. [baby spits out milk] i'll get my onesies®. ♪ “baby one more time” by britney spears ♪ e*trade now from morgan stanley.

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now the answer to today's aflac trivia question. what term was conceptualized by warren buffet that describes a distinct advantage a company has ever it's competitors which allows it to protect its market share? the answer, economic moat. sports platform giant fanatics closing a $1.5 billion funding round in march and joining us now is how they're deploying the capital, michael ruben, ceo of fanatics this was our latest snapshot, our latest update. for people that don't remember the last round, how long ago was the last funding round, and what

was the valuation at that point? because it's like i don't know what returns these are i need a calculator. >> it's good to see you. last summer was around $18 billion. >> that's another 50% on top of that so where was the -- where was the miscalculation on what your business is worth? it's not a miscalculation. you're doing a lot of great things but were the previous valuations just waytoo low, just very rich and hard to grow into where's the discontent how quickly this is going? are you just the greatest genius of all-time, financial genius? >> look, the company has gone through a pretty fast transformation and really transformed the company into a

digital sports plartfirm we had this fast growing direct to consumer merchandise business, and today we have that plus the collectibles business and ft business and online gaming business. i think we have our sights on other futures. ultimately the billions of sports fans we serve throughout the world -- one thing i will tell you when we do our deals we always look to the market. we had firms like black rock, msd, fidelity, qia and we also looked at leaving room on the table to keep giving investors great value, and i

think $27 million is inexpensive and we're going to prove that in the future we feel great about where we're head >> so the president just said something to amazon. amazon, we're coming for you i'm just wondering could you be a private company in five years? i don't know if i'd want to be a public company i'd almost like to stay -- if you can keep raising money like this privately, will you eventually go public or is it possible you just never pull the trigger on that >> anything is possible but i think we're going to be a public company. i think it makes sense for us. and i think it does make sense over time, and i think for us we're just -- we're doing so much right now as we're entering thiez new businesses, verticals into the platform. i think it makes sense for us to

be public and we're looking forward to that future >> timing. why not now? what's the problem no time like the present >> yeah, there's no problem. for us we've now entered the collectibles business and online sports betting business and nft business again, look, we've been very transparent about i think we should be a public company and that happens, you know, in the kind of medium term. it's not long-term it's not smart. >> do you foresee increasing -- would you buy more than 76ers? would you buy other teams or is everything about the bottom line down the road? >> yeah, absolutely not. i've made it clear that my focus is 150% on fanatics. i've never worked hard and had

more fun it's 100% focused on how do we build the most incredible digital sports platform and have hundreds of millions and fans and i think focus is really important. there's going to be no future sports ownership for me because i think that's a distraction for me >> well, i don't know. if you own more i don't know if the floor seats would get any better you can't really move them onto like under the basket or something. you can't -- you don't need to add to it. you think you've got the composition to go all the way this year? my vertical jumps about 3 1/2

inches >> the reality is we have a competitive good basketball team, but there are several other good basketball teams. you know, i think we -- we have a great organization we coached the men's organization, great ownership but the reality is you have one job when you own a sports franchise, and combat you don't do that -- until it happens. >> have you watched the lakers drama i don't know what network it's on. >> hbo >> yeah, hbo >> it's so good. >> you think jerry is really like that, honestly? >> i tell people this all the time other than watching you guys in the morning and live

sports and games i do not watch any television i'm addicted to that show. i was talking to her about it. i've got my daughter who i'm getting to watch it now. my whole family is into it i've got a baby watching it with me it's a great show. i've only been in the sports business depending how you look 10 or 20 years >> you've got to -- you've got the gold chain, the open shirts and things, maybe a stash? >> listen, my job is to satisfy hundreds of millions of sports fans >>heveweav wner he fun i get yelled at. >> thanks for having me. you immt your shortlist of quality candidates, whose resumes on indeed match your job criteria.

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investors have been reacting this week to the news billionaire tesla ceo elon musk has bought a 5% stake in twitter and joining its board of directors. good morning, john >> morning, becky. this is my second time in five weeks talking to elon musk here,

on the other hand, elon himself launching an ill-advised tweet i just couldn't resist this is great for twitter investors because elon musk understands what twitter is in the way that twitter itself seems to have forgotten. twitter is a platform for realtime expression, a town square users need to be able to trust their voices will be heard and opinions will be treated fairly without political bias that trust has taken major hit over the last few years. a more trusted platform will be a more stable platform, and more stable platform will retain users and advertisers. having elon on the board is particularly good with jack dorsey leaving both the ceo and the board they lacked a high profile aggregate for twitter's relevance. in this case elon musk is like the best kind of activist twitter investor, one who uses and understands the product and

can rally people to a cause, becky. >> okay. but elon attracting lot of attention. however, is that the kind of attention twitter needs right now? >> well, on the other hand, elon joining twitter is going to be a disaster for the stock and current management elon isn't an activist investor who uses the project no, elon is an activist user who happens to have invested he's very adept at using twitter to the vest in stock, bitcoin but shows little interest in twitter's actual model that might be because having a platform as open and lax as possible and say funding is secured whenever it suits him. investors should be worried twitter would be worth more as an unlosing shot -- twitter

culture has a sad history of drama driven by big personalities, and as soon as jack dorsey left, here's elon. twitter engineers are going to be confused whose vision is really driving the company analysts will look to musk's twitter feed to move the stock and lawmakers will have a big punch line to hit twitter with >> two very effective arguments, john how will we know which way this is leaning sph. >> well, if you look at elon's twitter feed this morning maybe i think it has to do with whether he's using twitter to talk about twitter himself or maergt he's using it to boost twitter management's voice and vision we'll see. >> i don't think i have much to -- >> i do the second one, i always say you leave us with the second one and i didn't like the second one. and i did like when you said light

lightly moderated. yeah, that's what it is. that's what tut twitter is a soft touch, just the right amount i like your first one much better >> it's just free market for elon >> yeah, exactly >> do you do the second one as the one you believe, jon >> i try to switch it around >> flip a coin jon, thank you great to see you later we'll have an exclusive interview with reddit co-founder alexis ohanian on elon joining twitter. "squawk box" will be right back.

welcome back to "squawk box. take a look at the futures ahead of the open. still got about an hour and a half to go looking at the dow off just marginally s&p 500 up about 7 points. want to talk stocks and the bull case good morning to you. you're bullish at a time when it seems like everybody else isn't. >> well, bullish selectively we saw the nasdaq get crushed, and two weeks ago there was an opportunity to buy a lot of stocks that were down 40 to 80%, and we did some of that and i think smart investors did the same thing because despite the fact we've got problems with interest rates, inflation, supply chains, when you see stocks reflecting absolutely the

worst news and they've come down to levels that you can justify price with earnings and stability and growth rates that these companies have, you have to make some decisions that are tough at the time but will pay off in the long-term >> let's talk about some of them autodesk is one. >> yeah, so autodesk had a very tough, you know, last year, stock was down over 30%. this is double digit grower. we've been waiting for it to come down to this multiple it has earnings growth in the high teens to 20%, revenues in the high teens and with the advance of technology across all platforms including, you know, construction, for example, and design, this is a company that, you know, we think has an extremely strong future and that the valuation that it sits now, again, we think it's attractive.

>> and then what do you like about fidelity and american tower? >> well, fidelity national, fys, that stock was selling at 12 times earnings and people talk about oh, the payments business, that's a bad business, lots of competition. that's not a majority of the business they provide a lot of critical services for banking industries and just, you know, merchant transfer capital allocation. and again if you look at that stock price it was crushed and we thought here's an opportunity, we'd take advantage of it. it's a stock we hadn't owned for years but we bought it again and another you asked about american tower american tower is a business saz you know is growing and continues as the world becomes, you know, 5g platform for all types of digital and wi-fi it's a great company, and it's global now and there's considerable growth

in many geographies that isn't going to abate if there's a recession. >> and you're not alone. in that view you can see that stock has moved up materially just in the last cup of weeks there. it is just after 8:00 a.m. this morning right here in new york you're watching "squawk box" live at the nasdaq market site in times square. the futures right now looking up on the s&p 500 and the nasdaq. and now the dow -- the dow was off in the red just minutes ago. we're now less than 30 minutes away from jobless claims data. expectations there 200,000 new claims we're going to bring the numbers when they cracross, of course. the fed also in focus today after release of the fed minutes. atlanta fed president and new york fed president, they're all going to be making public appearances today, so we're going to keep our eyes on what they have to say, and i imagine there'll be a cacophony of news.

we're also watching oil prices this morning they're rising after touching a three-week low so here we are >> let's get to dom chu. he's been taking a look at some of the big movers in the premarket this morning >> what we've got right now first of all earnings season is continuing it seems to always be going, but this one is perhaps a little more indicative of the current environment we're in andrew had mentioned oil prices rising right now well, commodity price pressures are impacting a lot of different companies. the latest right now is c con agra generally speaking they came out with earnings that matched estimates. the revenues were better but the investors are focusing on the full-year forecast for profits which con agra has now cut and they cited what else rising input costs as well as freight

costs. it sees its previous year output being lower than it was. a very big food processor in the world taking another step towards telling people about the inflationary pressures and how it impacts them. also watching what's happening with another commodity cost story in some way, and that is shares of ford right now down about 1% in trading. the reason why in large part is because analysts over at barclays have now cut ford from a prior overweight or buy rating down to a neutral or equal weight rating. they also cut the price target and what they cited among other things was the continuing computer chip shortage, which they feel ford is more vulnerable to on a relative basis. also the commodity cost pressures that go along with it and the suppliers that go along with that supply chain so ford shares a bit under pressure now and as we do a search of the most popular techers searched by

our viewers and listener cnbc.com from yesterday's full session, 10-year note yield still in the number one spot tesla, nvidia, twitter among some of thesial stock transactions and names up in premarket trade. and wti crude to becky's kind of point and interest has now slipped to number nine on the list even though it's up today, joe, it's slowly slipping down to number nine. we'll see if that trend keeps going. >> the big factory opening >> all right, thanks, dom. coming up, banking committee lead republican senator pat toomey unveiling new legislation aimed at crypto regulation we'll talk to him for the latest on the proposal. then later don't miss our exclusive interview with reddit co-f co-founder axis leohanian on

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yellin set to weigh in later this morning on digital assets in the united states >> good morning, joe you're right treasury secretary janet yellin today will lay out her department's approach to reviewing and regulating digital assets, and she intends to outline five key principles. the benefits of responsible innovation, the risk to vulnerable populations of lax regulation, the importance of being technology neutral this neutrality is sovereign money in the u.s. dollar in particular and the need for regulators and industry to work together if yellin will emphasize that regulation is critical to financial innovation not an impediment to it here's an excerpt from her speech, quote, as banks and other traditional financial firms become more involved in digital asset markets regulatory frameworks will need to appropriately reflect the risk of new activities. and new type of intermediaries should be subject to appropriate forms of oversight

yellin will be speaking at american university this morning. both the white house and traegsry guys have been very clear that congress is going to need to help write the rules of the road for this industry as well, and part of what treasury will be reviewing is how to identify where those gaps in existing regulation might be back over to you >> thank you we actually posed the question when andrew had that recent interview, and it sounded like with secretary yellen, sounded like a little bit of a change. >> i think it's an evolution >> an evolution, but friendlier, less hostile i called her a stacker and she did not deny that. although she was off camera. her mic was turned off >> too late. >> i think she smiled at me. >> she did >> meantime let's stick with

digital assets pat toomey unveiling new legislation and nice to see you this morning >> good morning. >> let's talk aboutstable coin because it's become a central feature of this crypto market. how concerned should we be >> here's how i think about this, andrew today as you know stable coins are a tool that facilitates trade in the crypto world, but because of their stability, their price stability relative to the dollar, i think there's a real possibility they could be adopted more widely, they could be used in the physical economy especially when you consider the tremendous potential of the advantages of programmable money, which is inherent in stable coins so what i'd like to do is have a sensible reregulatory framework that allows this space to thrive, allow the innovation to

occur with some sensible consumer protections, and so that's what i proposed, a flexible regulatory regime that gives stable continue issuers some choices, some options, would require disclosure so that consumers know exactly what are the assets backing a given stable coin for instance and what are the redemption policies and rules and third party a attestation. >> what's your sense whether we need stable coins, which is to say should there just be a digital u.s. dollar? >> i'm kind of thinking exactly the opposite way around, andrew. you know, we have stable coins they have exist. they work. they have tremendous flexibility and some huge advantages they do not interfere with the fed's ability to conduct monetary policy as long as they're backed on a one-to-one

basis. i'm not opposed to a central bank digital dollar, but i don't know how long it would take to get there, i don't know if the design would be something most americans would be comfortable with we can wrestle with all that but in the meantime let's allow this new innovation to thrive >> how do you think about that but for example we keep hearing the chinese want to develop a digital version of the yuan >> one is to try to undermine the strength of the dollar as a reserve currency but also kbifb gives them surveillance powers they've designed their central bank currency to enable them to ursurveil their citizens, which they really like doing that. that would be completely unacceptable for us. and i don't think just by virtue of having a digital currency, the chinese currency becomes a

reserve currency they've got other problems >> the reason i ask the question as it relates to stable continues here in the united states is just whether you think that actually presents such a competitive threat long-term to the u.s. dollar and if you believe everything becomes digitized whether we actually want to be in that business even if we're not in that business today. >> yeah, so i do think that the -- what the stable coin offers is this -- the latest technology in money, right money has evolved enormously from when i guess traders use tobacco leaves in virginia hundreds of years ago. m money is a different thing today and the latest capabilities are in stable coins. i do think it's important we have that capability the u.s. can maintain its role i think with stable coins. so i do think it's an important

competitive element. >> and then, senator, while we have you we saw this deutsche bank report yesterday saying we could be on a verge of a recession. the fed may move too quickly we saw the minutes what do you think? >> i think job number one for the fed has to be to get inflation under control. it is so well beyond anything that's acceptable orwhat the fed's target was honestly i don't think you can get inflation under control as long as you have negative real interest rates, so, yeah, maybe the worst of the inflation prints are behind us i'm not sure of that, but i get the theory and so maybe inflation comes down a little bit, but i just think we're going to have to move short-term rates a long way or the fed is going to have to move them a long way >> how concerned are you that tips us to a recession, at this point you can't do it without doing such a thing >> and that's the problem. given all the other dynamics and

the likelihood that's a soft landing and we get out without a recession, that has diminished i recognize that that's the problem with waiting too long and keeping the monetary policy way too easy for much longer than they should have >> senator toomey, it's always good to see you. >> thanks for having me. when we return one of the most influential voices in social media weighs in on elon musk's new relationship with twitter. we'll speak with reddit co-founder alexis ohanian. don't go away. "squawk box" will be right back.

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might 3% energy giant shell said it would write off between 4 and $5 pillion in assets after pulling out of russia. that is the first glimpse of the oil majors of exiting russia in its first quarter earnings report comes out meantime union elections at u.s. companies surging over the past six months. the national labor relations board receiving nearly 1,#00 requests to approve, and now union votes have been in the spotlight recently thanks to high profile elections at various companies like starbucks and amazon warehouses also saying the overall total number of people unionized is actually lower. that's the headline and one side data on the other. speaking of omzon the sec investigate how amazon disclosed

its business practices top of focus will include how the e-commerce giant uses third party seller data in the development of its own in-house brands spokesperson for amazon telling the journal, quote, there's no factual basis for the claim of using other seller's data. shares of hp are soaring this morning after berkshire hathaway this morning it's worth quite a bit more the stock up 12% to $39.10 by the way, this is the third biggest investment that's when the famed investor set the equity markets at that point little excites us. he also went onto say they've had big war chests in the past in february they were dealing with $144 billion in excess cash he said they've had positions like that before these periods

were never pleasant but never permanent. $11.6 billion to pay for insurer allegheny and about $6.5 billion to build up a big stake in occidental >> new bill in congress would add unruly passengers to a tsa no fly list. under the lelegislation those convicted of assaulting crew members on an aircraft could be barred from entry programs or added to the no fly list last year the faa received nearly 6,000 reports of unruly behavior many involving babies in first class individual airlines maintain lists of passengers who are barred from traveling on planes, but those lists are not shared among carriers >> they should be. >> i know.

what am i supposed to say? what do you want me to say >> that babies should not be in first class. >> have you changed your thinking on this >> you're not going to be on this list from complaining about babies in first class. you crank up the air pods. >> i do. >> are they noise canceling air pods >> i have all of those >> kids at 3 and 4 are still brats, right >> your own kids my kids are pretty good. >> how far back do they need to go >> these are all fair questions. >> i just want when the airlines start to advertise the first class features with the -- >> i'm game for that that's when i want to see that >> my kids have been better behaved than a lot of the

adults >> that's true, too. coming up we're going to talk -- i didn't know you actually heard that. you were just going to ignore it, completely ignore it >> i don't want to encourage it. >> we're going to talk about elon musk's twitter obsession and how he might want to change the company now he holds a big board seat our special guest in just a few minutes. stayun u' watching "squawk box" on cnbc live from the market site in times square. [copy machine printing] ♪ ♪ who would've thought printing... could lead to growing trees.

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welcome back to squawk when we come back, elon musk, twitter and the future of social media. we're going to speak to someone who knows that business inside and out. co-founder axiles ohanian always has a view on this "squawk box" back after this this is the new world of work. each day looks different than the last. but whatever work becomes, the servicenow platform will make it just, flow.

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genesys technology is changing the way customer service teams anticipate what customers need. because happy customers are music to our ears. genesys, we're behind every customer smile. welcome back to "squawk box. rick santelli here live at cc cc cme hq these aren't lagging indicator these are forward looking. 166,000. wow, welcome to the 1960s. haven't been at these levels since the late 1960s, and on continuing claims a bit of a different story. 1,523,000. that's well above the estimate, and that's well above their comp

to the late 1960s which happens to have been last week at 1,307,000. now, i do want to caution if you notice that some of the history on these two points doesn't match what you've saved. it's because they've done four years of bench mark revisions from 2017 to 2021. so things are a bit different adjusting for new seasonalities. we are getting more revisions which doesn't surprise me. so last week now drops down to 171,000, and that 1.307 million that was the lowest levels since the '60s now jumps up to current levels at 1,506,000. so make sure you check some of your spread sheets do we want to play that parlor game of predicting recessions, you can do if you want

we're looking at 2.25, 2.5 feds rate now they're starting to work their way down and shouldn't be shocking yield curves steepening will likely continue and with regard to claims i bet you the fed is at some point in a couple of quarters pay a whole lot more attention to them to see if they're tightening cycle or some of the horrible energy policies that are gotten us start to show up in the numbers. >> i was going to ask you because we spoke with someone from the house, representatives earlier, congresswoman debbie dingell and i was asking about we do have a lot of traders that watch and commodity types, and do you talk amongst yourself some of the narrative you hear shaegs she mentioned that the oil companies can get oil out of

the ground for $30 a barrel, so a fair price with a decent profit would be they sell it for 35, so why do they let it be sold for $100 a barrel at this point? that's a lot of gouging. i'm just wondering what happens when you look at traders and you guys talk amongst yourselves about our elected officials in washington and their acumen in these areas. >> well, this isn't me talking, of course. you're asking about the chatter i hear >> so you're going to hang it on someone else >> congress men and women most likely aren't your best experts at energy as evident by the notion i guess angela merkel not even in this country is the poster child. in many ways it's about her saying to the world how green germany was. they didn't develop their own energy source. they counted on horrible people

like putin to get their energy, and they're still using every bit as much as they ever did as a matter of fact for a while they were burning really nasty coal i guess the real story here are energy is that the markets know better than politicians. i understand there are issues. i wish renewables were ready for prime time maybe more than anybody and maybe so does the fed because i'll tell you what they're tightening cycle is definitely warranted energy is the problem. >> doesn't your mustang run on salad oil or something >> i'll tell you what yoosh i've done my share of conversions to nat gas. and i don't know how many of you out there remember in 2012, 2013 on live tv i converted an f150 gas truck right on natural gas and within five hours it was running on a dual fuel system, and i think that's still a model we all should ponder

>> makes me think of boom pickings, could have had all those trucks running on natural gas. ■r■h some liesman data. >> i don't know if rick's still there, joe, but we know rick doesn't care about renewables. he just wants to go 0 to 60 in 3 seconds. >> faster than that. >> i don't know how fast they go if i could make one snide comment, joe >> please do >> our domestic oil pauses are so bad we're in the largest oil producer in the world -- >> trigger santelli. you still there, rick? >> i know maybe it can be better >> what matters is our output needs to -- the fact of the matter is we couldn't find enough if we didn't shoot ourselves in the foot.

>> and we forgot about security. i agree with all that. i will just say that our domestic oil production is pretty robust to the point it is the largest in the world it's quite a bit off of the lows it hit during the pandemic >> despite the best efforts -- >> i can agree with that >> i'm just saying, joe, it's not that bad despite whatever, i wanted to throw it out there as a snide comment just to get you guys going. but real quick the 166,000, there's that revision stuff in there. we've been looking all week for several weeks for consumers to react, for employers to react, to the surge in oil prices to the other issues out there we're not seeing it in high frequency data maybe it's all to come, but the economy and they were still pretty robust. we're just not seeing a whole lot of weakness coming from either higher rates or higher

oil prices or higher inflation it still seems like this economy is doing okay, joe and becky >> steve, thank you. rick, thank you, too >> pleasure. all right, elon musk's newly revealed stake in twitter and his board seat have the tech and social media worlds buzzing about the impact he could have public speech online. >> i think he's investing because other car companies, for example, i haven't spoken to him about this, other car companies spend a couple thousand dollars per car they sell. elon spends nothing. twitter he's been so successful getting everyone to know who he is he doesn't have to spend everyone knows about electric cars and everyone is going to know about star link satellites. without him spending anything,

so i think it's important for him to make sure that twitter is a viable, strong candidate you know, they haven't performed so well as a business for a while, and maybe he can help them a little bit. >> joining us right now to talk about the place where business and social media meet is alexis ohanian. he's the founder of 776 and also the co-founder of reddit played such a huge role and understands social media as well great to see you this morning. >> great to see you. becky. how are you doing? >> good. what's your take on this and what does elon musk getting involved mean for the public faces and public voice >> elon is a smart guy i do think at times we may analyze some of these moves. i i think at the end of the day he cares deeply about the platform he's very good about using the platform i hear the argument it is beneficial for tesla, for sort

of just keeping the relevance of all things elon musk going, but i think at the end of the day he just generally cares about twitter and believes he can use his position now on the board and as an investor to influence in ways he thinks is going to make it more successful long-term, and we'll see how it goes i'm rapt with attention watching because a lot of this does get as smart as he is, as accomplished as he is the nuance of actually building platforms that can scale with user behavior is as varied as it is on the internet is a whole different can of worms and interesting to see how it unfolds. >> it's not just those hurdles you're familiar with, but i would say public scrutiny, regulatory scrutiny, congressional scrutiny are all amped up on this point on anything that comes to social media, and those are very new head winds to take on, too >> i sure. and i think, look, this is going

to be a really important next couple of years because we're seeing social media very much sort of challenged and reshaped by new ideas emerging from this notion of decentralization is particularly appealing to folks who are looking for channels to basically broadcast their message and not have to feel like it's at the mercy of all their followers, all their likes is not at the mercy of a single platform right, for 15 years we've all spent a lot of time and a lot of energy creating value for centralized platforms, and we don't really control our community. we don't really have our followers. you know, we at the end of the day they belong to the platform and that is a weird -- weird position given how valuable we know audience is these days. >> why did you step away from reddit was it getting too complicated, had you kind of been there, done that, was it worries about what the next step is >> you know, look what i said

back then and still believe now i wanted to make sure we're in a position to be able to do things that i felt were the right things to do for the business, for society, and being one vote out of many on the board as i think elon will also see is an interesting proposition especially as the founder. i realized, you know, when you know things are right, and know things are the right move sometimes you want to be able to get them done. and i found myself in a much better position now here now with 776 because i can't actually act on those things when the social media experiment started no one really understood or expected it back in 2005 the effect it would have on everything, every part of the society. when you think of just how valuable audience is to see many whether it's building a following of people who love their cooking online or elon musk or people who love his company, there's a ton of value

tied up in a platform that the actual creators, people who create that value have little to no effect on >> given what you were saying the dynamics on boards i was speculating earlier because he's someone who historically has wanted to control things >> look, it is -- and i can't dismiss his success, his acumen, whether it's electric cars or all things spacex is phenomenal. the way to get those companies built, i've never done it. i've invested in a few companies who have it's very much top down. i do think there's a whole host of things we've found, the wisdom of the crowds, community led businesses i think abound these days but trying to build reasonable

rockets, trying to build and revive an auto industry in the united states, that takes a special kind of minutia and a different kind of company management style social media companies i was fond of saying back in '05 to be ceo of reddit also required me to be a head of state and to balance these two needs. right behind it were the needs and wants of the community and it's a very different type of leadership role, and so i wouldn't encourage him to jump into that executive chair. but i do think it's going to be fascinating to watch because i'm optimistic you know, it's been shocking how much time i spend on twitter personally in the last few years it has become the epicenter at least in the tech industry of work. i've watched people go from total random people on the internet to people within a cup of years having real voices, real followings.

>> who do you think it hasn't had more success then alexis i agree with you i use it like you do, but i don't know if i'm an outlier >> yeah, look, we're definitely in a bubble. i can see the fact the goingings on at least the tech industry and media industry we're insulated from a much larger economy, but i don't have an easy answer for that i think capturing the value in a platform like that is -- it shouldn't be ad based, let's say. and we're kind of moored to the ad models of 15 years ago that are looking less and less appealing. and i think -- i think we haven't figured out the right business model i think we've gotten close with things like the soup follow and maybe some of these twitter blue programs and subcription, but clearly haven't figured it out it's an indispensable part of doing work for building reputation, building a name for yourself and just presenting the

work you do and talking to your users. >> hey, alexis you recently founded something called the 776 foundation. it's different than the venture capital firm you did this as a way to kind of inspire young inventors and entrepreneurs, people like you, but instead of going into social media like you did when you started out, you're doing this to incentivize people to come up with climate change solutions. why don't you explain a bit about that >> sure, i kicked off -- this will be the first of many donations but i kick off the $20 million donation we're going to spend over the next ten years giving young people $120,000 and community and support to take time with an explicit focus at taking a big swing to fight climate change and i feel very frnlt. we on the venture side get to invest in founders who have got

a little more experience who started building and started shipping potentially huge business, and i just thought this is a sort -- this is a chance to basically say, look, take this money and use it for whatever you need and focus to get started. we've gotten hundreds and hundreds of applications from folks all over the world, inspiring stuff for people who want to build new technology, folks who want to do direct air capture of carbon all the way to sort of more activism-type movement, and it's exciting. one of the biggest threats right now is a feeling of helplessness among our youth with regard to the planet let's say in particular, and we need more inspiring young people who are way smarter than i was taking really big swings to make really awesome businesses or really awesome things to solve problems merchandise we can't just be helpless we center to be building, shifting, we have to be working, and i'm so motivated by these

allocations i can't wait to share who the winners are going to be this summer. >> we look forward to hearing more about that and look forward to talking to you before then, too. thanks for being with us this morning. >> my pleasure see you on twitter >> by the way, great microphone. it must be a podcast microphone. so much better than a computer microphone >> put a man on the moon supposedly coming up jim cramer on the trading day ahead. don't go anywhere. "squawk box" coming right back i. and now, we're providing billions of dollars for affordable home lending programs... as part of 88 billion to support underserved communities... including loans for small businesses in low and moderate income areas. so everyone has a chance to move forward financially. pnc bank: see how we can make a difference for you.

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want to get down to the new york stock exchange where our good friend "am joy" cramer joins us what are you thinking about all these just recession reports that's what i'm actually ook, i think that there's a sense that everything is going wrong and gasoline is too high, that the stay at home bubble has been popped and the consumer doesn't have any money. that the 10-year is going and the 20-year is going higher and the 30-year goes up. and, you know, andrew, i'm getting tired of it. i'm far more bullish i want to be conservative on the tech stocks that have gotten us to this level. ic i think we both know a handful of stocks lead the market for a long time i'm looking for a big broad now market which i think will surprise people. >> what is going to be the catalyst for that? >> raw costs coming down

i've had some interviews lately. i had an interview with a guy who runs -- freight rates are plummeting in this country that is very bullish for pretty much everybody who has been just saying saying endlessly freight rates truck drivers are coming back. i think people are getting used to the disease the consumer is going places i'm very conservative when it comes to the tech stocks that have worked and worked i'm far less conservative whard t toward the companies that have beaten on the head by the raw costs. so i don't know. i'm not -- i'm sanguine about everything people don't like, andrew i'm nervous about the things people like. >> hp and warren buffett >> i had hp on last week i thought the stock was cheap. i came back from cory barry who

was the ceo of best buy. the stuff is selling well. i think it make sense. the tremendous cash generations. does all the things warren buffett wants and doesn't get respect. i think the office at home was ad hoc and now for real. i don't know about you, andrew, i'm upgrading everything i realized i can work at home any time i want. >> yep. >> jim we'll see you -- >> that's it i'm talking to you >> i love talking to you -- >> twitter >> what about twitter? what do you think? >> ron warren thinks it's promotion and fun. >> alexa -- >> well right now i have tell you it's the least fun place on earth. >> right [ laughter ] it's a hell scape what it is. >> yeah. no one even gives you a heart.

i learned so much from it. i'm sure he does, too. andrew, the people, the anonymous people who hate me i'm coming after them like a baseball bat like al can own, if you put them in a room. >> should tesla be worth more or less >> more. he can talk about baron. he can talk about the big things that he believes in. solar power and the northeast corner of colorado can power our whole country. he's a big thinker we're tiny. >> the biggest thinker, jim. >> the biggest ♪ ♪ >> we're getting the -- >> no, i miss you! >> i miss you. we'll do this every day. when we come back in a little bit. before that, the cnbc investing club, the monthly meeting starts at 12:30 eastern time. bring your bingo card.

it's a critical one and a master class in how jim makes calls in times like this. jim will also announce a new stock that he's adding to the charitable trust scan the code on your screen to take you there ♪ ♪ ♪ ♪ with a bit more thought we can all do our part to keep plastic out of the ocean.

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a little more than a half hour until the opening bell on wall street. tech getting hit this week after it was on a rebound. it had a three-week winning

streak joining us now is senior investment strategies at edmond jones. mona, if you had to say bullish, bearish, or a little bit of a mixture. where are you now? >> probably the third option you know, look, one thing to keep in mind, joe, is we're coming off the back of three years of very strong s&p gains over 20% on average for the last three years. so, yes, we've come into 2022 with many challenges you know, growth, inflation, the fed, and down about 6% on the s&p. the resilience has been pretty notable. keep in mind generally we think in the higher inflation environment at woody's can outpace the inflation. within equities, we think there are part thes of the market that can pass along costs you think about health care, staples, even utilities, which you've seen hold up nicely this year those parts, we think, continue

to farewell as we get later cycle. the value rotation we think has another leg here especially as we get to spring and summer months. we start to get a little bit more reopening demand. so that's a part of the market we continue to favor near term we're looking at a flattish year but after a strong run >> you know i think that it's not going to be a blockbuster year like the year we had. after the last couple of years, who is not excited for things to get a little bit boring. you know, i don't think we'll see things fall off the cliff for the most part. maybe some of the stay at home trades netflixs where i don't know about you, i do not like to spend the summer sitting on the couch watching tv. so, you know, i think that we will see some companies that really, really, really are going to have a hard time in this hopefully boring new world. >> the biggest worry you have at

this point, sara, is inflation or the fed's reaction to inflation or the possibility of a growth slowdown. what is it all of the above >> i mean, in my world right now, the rising rates are driving massive break downs in losses in later stage private tech companies you see companies like instacart where they cut 40% off the evaluation voluntarily. not even to raise more money but help with employee retention they were talking about a big ipo. these are big problems in the private tech markets. >> that's interesting. you can look to the private arena at times and i don't know what it says about the public markets. they seem to be, you know, they were rebounding. are they in for a little bit of a day of reckoning, would you say? make it fast. >> sure. q 1 growth will be soft. q 2 we see a rebounding and could see markets follow

q 1 was brutal the worst quarter since 2021 interestingly, i think the u.s. is going to be an outperformer. >> thank you "squawk on the street" is next good thursday morning. welcome to "squawk on the street." i'm david faber along with jim cramer carl has the month morning off half u hour from now we begin trading on this thursday our road map starts with stocks. they are searching for direction after what has been a two-day sell-off we'll talk to jim and apparently it says here you think stocks are poised to bottom in a rally soon >> i