the board and inviting employees to to a q&a session it is friday, april 8th. "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc we are live from nasdaq market site in times square i'm rebecca quick along with joe kernen and andrew ross sorkin. you see green arrows ars on thew the ten-year was the highest since march of 2019. yielding 2.67%

the 30-year down slightly at 2.678% energy prices yesterday. oil was down after the iaea said it would release 60 million barrels of oil it is up developments in ukraine. a spokesperson admitting that russia suffered significant losses of the troops uk defense ministry said troops withdrawn from the ukraine north. some of the forces are said to be transferred to the eastern region that part of the country has been russian military operations for a year authorities warning the fighting is expected to be brutal and resemble the battles of the second world war it continues meantime, microsoft

disrupted attempted hacks by russi russian spies. they were using seven internet domains and trying to spy on the u.s. and european union. ukraine institutions were also targeted joe. elon musk dominating the headlines this morning along with peter thiel he hosted a grand opening event for the tesla new $1.1 billion factory in texas where all my exes are. i'm still reading. >> that's why you hang your hat in tennessee >> relative to production prototypes are easy. production is hard this building is the most advanced car factory that earth has ever seen. >> musk says tesla plans to make 500,000 model y vehicles in a

year it will start production of the cyber truck next year. i want to see one of those out i haven't seen one on the road >> i have seen the one they have shown off. >> yeah. >> what is it? >> i have not seen it in the wild are they in the wild >> i don't know. maybe a prototype you could see. it probably will -- we have seen video. i think when you see one as you say in the wild, it will be an attention grabber. we will see if it is successful. it would be weird to see one out of every 20 trucks would be one of those every time you see it. >> it reminds when they rolled out the hummer you had arnold schwarzenegger riding around with him and it caught everybody's attention on the road. >> the pt cruiser. funny looking car.

>> eye catchers. >> the timeless pacer and pontiac aztec ii walter white, andrew, had a pontiac aztec. >> i remember. a pontiac aztec. >> yeah. it was representative of his hum drum life before he got into something more interesting, obviously. >> lucrative >> yeah. and dangerous. in other elon musk news. twitter plans to host the investor and board member for a q&a session with employees the q&a session is said to be a response to the concerns of musk joining the board. twitter shares this week investors have not shown concern. twitter shares have been up sharply. down 1% today. on monday, you saw 27% jump.

it was 5% the day after that a different week this week than last week with the stock prices there. let's talk about other news. the fdic wants thousands of banks that it oversees to notify regulators about crypto activities in progress or planned. the regulators saying it wants systemic risks from crypto to be monitored. this could be a shift. it will be interesting to see. i think these next comments, i imagine, everybody will comment about this peter thiel sounding off on crypto or the enemies list he told the bitcoin conference in miami that warren buffett tops the list of stopping cryptocurrency he did not have nice words to say. here are some of them. >> enemy number one. i think he is the -- i think the

sociopathic grandpa of omaha, is perhaps the most honest and direct in it you have to sort of think of, of course, on some level, these people are always talking their book they have some institutional bias it is long, a list of woke companies. it is somehow long this fiat money system there is always a sense if you are a money manager, it is complicated to invest. if all you have to do is buy bitcoin, you know, that's like ridiculous all of these people are out of business there's a version of this with gold they never liked gold.

if all you did was own gold, that is something everybody can do there is an institutional b ias. a political bias >> thiel calling out jamie dimon and larry fink fight for bitcoin from 10 times to 100 times of the current levels soci sociopathic grand grandpa. i don't like it. he talks his book. i have seen a lot of sociopathic things i have seen in the last decade that i would not subscribe to warren buffett. >> everybody is talking on all sides of it. it takes two sides to make a market i guess that's what you have here. >> i love what he said about

esg. i love peter thiel you know where i stand on bit bitcoin. i don't know if i'm a stacker. i guess i'm a hodlers. i'm out a bit. the esg. for guys to just talk without fear in this day and age without fear of being judged that is refreshing for me to hear it. i always loved peter thiel >> look, i admire the guy. i like that he has the opportunity to say what he says. as an investor, he is brilliant. as you know, i'm not big into name calling of that's where i come down you can argue the merits

without -- we he woul would not this conversaconversation >> andrew, what did you think of the bad orange man you had choice names for him, didn't you >> i think you can go find the tape i don't think so >> okay. all right. you are very nice. >> peter thiel -- >> you are objective and fair and good. >> i think society has gotten to the place where people have to use these injectives and try to -- should anybody be demeaning warren buffett it is a fabulous debate. we have it every day on the show you can do it that is more respectful given how great an investor thil is and buffett >> he is playing to the crowd.

>> the toothpaste is out of the tube he was tongue-in-cheek civility is gone, andrew >> i hope to bring it back >> really? okay that's nice. coming up, the hawks versus the dofves. what investors need to know about the fed speak. check out the biggest pre market movers. stay tuned you are watching "squawk box" from ndamaetitinasq rk se times square >> announcer: this cnbc program is sponsored by baird. visit bairddifference.com. skechers. cut! you see willie, i don't think skechers are illegal anywhere. really? no. well pass the skechers!

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that has been the problem this week it was less the war so far away. we don't talk about it as much. >> fed minutes were in our face. this is reality of what is happening. not just the rise in interest rates, but the shrink faster than the market anticipating people didn't think that much about it the issue is it mattered on the way up if you look at the fed balance sheet, it directly correlates with the fed growth. if you are watching what was happening there on the way up, wonder what is hangppening on te way down. >> we didn't mention cash. he got hawkish. >> it hurts people at the bottom rungs of society higher gas prices. higher food prices it's a big deal. let's talk to steve liesman

about this it has been happening all week where are the hawks and where are the doves after what has been an intense debate steve is joining us right now. steve. >> we found out yesterday, andrew, good morning, that there are one or two doves on the federal committee. those are air quotes for you on radio. charlie evans saying yesterday, i'm optimistic we can get to neutral. look around and find we are not necessarily that far from where we need to go. most fed officials are pegs 2.41%. evans comments is where the market is priced for the year. his comments are going further with the june contract at 3.1% which would slow the economy evans, for a while, wants to stop at neutral.

behind the call is surging inflation up 8%. we may get over 8% next week it declines as the supply chain issues ease in the second half of the year. he said you don't want to harm the profit market. the comments offset by jim b bullard. he wants to price this in. the debate is interesting. it is hawks and doves which is 8% or 11% hikes and going up 2% in total it is hawkish, guys. some guys want to say we'll stop at neutral and look around becky. >> okay. maybe we stop at neutral and look around. i have to say the number of doves who have been saying go, go, go made me wonder. i think that is probably what makes some of the big investors

nervous at this point, too they should have been doing this a long time. they should have been tapping the brakes when the economy was running along. if you are aggressive and not giving it time to look around and see is part of the shift from investors calling to hurry up and do this to okay, be cautious do it and see how it takes >> by the way, bostic yesterday was on the more cautious side. i don't think bostic qualifies as a dove. he wants to be measured. it is interesting to me that the debate right now is among hawks and hawk-ier, if you might there are not a lot of doves out th there. evans said let's get there and

look around. >> i think it is worth pointing out. don't worry about the market reaction to that that'ses fine if you do send economy into recession, it is not the market down, but the issue of unemployment rising and all kinds of things that were really moving in the economy and again in the real world helping people that is the issue. i don't say stop and look around and see what the stock market reaction is. stop and look around and see what the real world reaction is. are businesses no longer hiring? no longer get pay raises >> i think that's important, becky. the other side of that coin is the affect of inflation on low and moderate income americans. 8% inflation is not helping them at all the market is up very strongly also, not only do you have 3.6% unemployment, but you have something like 10 million open

jobs out there if the end result of the process, the optimistic view. >> i understand that >> the job openings and not jobs >> the bigger question is are they effective in shutting down inflation? we had this discussion yesterday, steve, are they going to be able to shutdown inflatio if this is a supply chain issue? that would be the worst of all worlds >> i'll give you the last word that is right. there are huge challenges to the fed dealing with inflation in this environment it is challenging in housing and autos and almost every area where it is unclear they swwill have to have that effect i agree with you 100%. >> thanks, steve love it when that happens. see you later. when we come back, a key ruling on vaccine mandates and

the issues of the union battle for amazon in multiple states. and oil prices did come down a bit yesterday after the iaea said they would release 60 million barrels of oil wti back up to 96.83%. stick around you are watching "squawk box" and this is cnbc >> announcer: this cnbc program is sponsored by ibm. ibm. let's create so you tap ibm to un-silo your data. and start crunching a year's worth of transactions against thousands of compliance controls with the help of ai. now you're making smarter decisions faster. operating costs are lower. and everyone from your auditors to your bankers feels like a million bucks. let's create smarter ways of putting your data to work. ibm. let's create

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welcome back time for executive edge.

a federal appeals court reinstated a covid vaccine mandate for federal employees. the appeals court said challchal challenges should be pursued through channels and not courts. the mandate was on hold. we will talk about this with dr. scott gottlieb coming up at 7:10 a.m. now to amazon union fight. the tech giant says it plans to appeal the loss. the loss against union organizers in new york workers voted to establish the first union in the u.s amazon says it has issues with the actions taken by union leaders before and during the vote a different story in alabama the union there is alleging amazon illegally interfered with the elections in that state. creating what the union calls in its words an atmosphere of

confusion, coercion and fear which impacted employees freedom of choice to join or reject the union status coming up on "squawk box." so much more to come. elon musk planning for a new plant in austin. we will talk about it next. as we head to break. a look at the s&p 500 winners and losers from yesterday. >> announcer: executive edge is sponsored by at&t business at&t 5g is fast, reliable and secure ery business, our best deals on every iphone - including the iphone 13 pro with 5g. that's the one with the amazing camera? yep! every business deserves it... like one's that re-opened! hi, we have an appointment.

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good morning welcome back to "squawk box" here on cnbc take a look at futures right now. dow up 80 points on this friday morning. s&p looking to open 7 points higher we have headlines. spirit airlines will start talks with jetblue on that rival $3.6

billion takeover bid spirit agreed to the buyout offer from frontier group. jetblue's bid could lead to a superior proposal. at a minimum, i imagine, we will see frontier forced to press up their price and maybe will see a bidding war. nissan working with nasa on the battery for electric vehicles solid state battery will be half the size of the lithium. it can fully charge in 15 minutes versus a few hours looking to have that battery in production by 2028 becky. >> that's what gets me you hear about the charging times for it they hope to get to the point of 15 minutes if i had to spend 15 minutes filling up my gas tank, i would lose my mind i get upset waiting five minutes

for the pump it is okay if you can charge at home if you don't live in an apartment or in the driveway or workplace. there are people who don't have the luxuries to charge >> we have this answer a long time ago waffle house >> the car appeals to elites they have parking spots and garages and places to charge i notice it on the turnpike. 12 charges stations for tesla. that is is great we were waiting to get to the gas pump once everybody is driving them, you need so many more. >> that is what will happen. that is the revolution you will see in the next fivecre country. parking garages in new york or other places, almost every parking spot will have some kind

of charging station attached to it. >> if you can't make it back from washington and stop and charge the car and wait in line to charge the car and then wait. you think about the implications and how mad you get at the person who went to eat something and is not back at the charge pump it is going to be a rocky transition >> that is the issue of the infrastructure >> it may not be that great or convenient >> seamless. >> my idea you can easily get you can order, the order comes, enjoy it >> you better get out and unplug so the next person can charge. >> you will. it never takes more than a half hour a couple of cups of coffee they come over immediately hash browns with jalapenos

>> i think about the time i need my phone charged and forget. maybe the technology gets better elon musk at the opening of the gigafactory in texas last night. phil lebeau has the highlights >> becky, it was vintage elon musk right from the get-go he drove out on stage in the very first roadster that tesla built back in the days when it was a lotus frame and they put the battery pack on it when he drove out, what was he wearing? a big black cowboy cat hat. he said to the crowd that was there, several thousand invite only attendees that deliveries at the factory that this is a plant that is building model ys in the u.s in the words of elon, this is

the most advanced auto plant in the world. >> prototypes require imagination and they are not easy relative to production pro prototypes are easy. production is hard this is the most advanced car factory that etarth has ever seen >> kpas >> reporter: capacity is 500,000. they will not get there right away that is what they believe they can achieve in terms of annual production it is expected to use the 4680 battery cells. the battery is part of the frame. they connect the front part of the vehicle with the back part of the vehicle you have three pieces that come together tesla annual sales will get a boost from this factory, but the factory that opened in berlin. the estimate is for the company to deliver 1.47 million vehicles

this year. there is a hughe demand for the model y and a huge wait. you have to wait six months for the model y. this should cut down on that wait time. the q1 earnings in a couple of weeks. april 20th get it 420. >> ha-ha. phil, stick around joining us with more on the event is tim higgins tesla and elon musk and the bet of the century is his book tim, this is anything but the average factory opening. what crowd turned out? >> thousands and thousands more online watched it live i have been to several new plant openings they are never this exciting or get this attention

that ability to get so many eyeballs and people beyond the media and investors to look at this is rather remarkable. it speaks to the movement under way that elon musk has done since that roadster first came out. >> what about momentum this has been a huge week for elon musk. we have not stopped talking about him all week he has been front and center with everything he has done from twitter and beyond what does that mean in terms of momentum building up to this >> absolutely. musk believes in the idea of momentum that good results build on good results and wins begets wins this is a surprise of twitter and these sorts of things. there's just excitement around the company and him. in fact, i wonder when we looked at the cyber rodeo wif not for

all of the twitter news, we would look at this as skeptical not because of a huge achievement, but tesla is behind on some of the things. cyber truck pushed to next year. the semi and roadster sports car is still delayed he talked about those next year which would please a lot of customers who waited many, many years for the vehicles execution continues to be tesla's challenge here you know, as much as they accomplished, thit is still a young company and haven't figured out how to seamlessly bring out new product. >> we had a long-term investor in 2014 on yesterday morning he started buying way down lower. he said he has 20 times his money back and thinks there will be additional growth of four to

five times his money here. he is willing to give them a pass on missing the quarterly estimates. he is a long-term investor he looks beyond that future potential growth what about other investors will they do the same when they come out with earnings on april 20th if they are behind, which is not a huge surprise given the shutdowns in shanghai, will the street punish tests lala shares? >> not necessarily, becky. i haven't checked with the estimate for the first quarter if they are relatively close to that, let's say he comes in .50% below expectation. will they get dinged for that? probably not just as they weren't dinged for the consensus for deliveries in the first quarter was 317,000

they delivered 310,000 that is what ron baron was talking about. they missed. keep in mind the shanghai planned was shutdown he is willing to give them a pass if theymiss by a wide margin, different story completely the issue is what are the factors that cause them to miss. >> tim, we have seen so many doubters on this stock for a long time. they said it is silly now looking at where the company has gone is there something that could tip the company to the point with valid points again or not so embarrassed and come up and say something? i know it is a new company it is not a new company in the way rivean is out there. testsla is the most established and has the best chance of continuing leadership.

>> the concerns that some of the short sellers had the last few years were valid tesla was trying to do something unproven and hard to believe that is what is remarkable about the turn around from 2018 from nearly bankruptcy to now it is hard to occur. it is remarkable that success gets them a road ah ahead. some investors would be concerned if elon is not out talking about the next big bright thing talking about the robot taxi and the humanoid robot we have seen with the person dressed in a suit dancing around representing what the future might be a lot of investers are seeing the valuation of tesla beyond a car company. it is huge in robotics those little nuggets of teasing while it is hard to believe some

of the stuff will happen next year like he is talking about does fuel a lot of investors enthusiasm for the future ahead and future in the long term beyond the quarter-to-quarter arch >> tim, thank you for joining us today. phil, we will see you later today. thank you. >> sounds good. coming up, the nation's trucking shortage and walmart's plan to fix it and the latest on the covid outbreak in shanghai we will talk to dr. scott gottlieb you are watching "squawk box" live from the nasdaq market site in times square. ♪ ♪ nice suits, you guys blend right in. the world needs you back. i'm retired greg, you know this.

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welcome back equity futures are in the green somewhat today less than 100 points on the do in the pre-market. nasdaq up 25 you see the s&p up 10 or so. if we look at bitcoin, some cryptocurrencies basically flat on the session. wasn't a great week. a week or so ago at $46,000 or $48,000 on bitcoin we had a 10% pull back after it moved up from the high 30s volatile, andrew >> it is volatile. let's talk about other

headlineses. volatile because it was volatile in the sky what do you think? alphabet's unit wing launching drone delivery in texas. walgreens alliance is a drug change which will use the technology to launch from a store parking lot in texas you will be able to select 100 items on the drone delivery app. including over-the-counter medicine and house essentials. it will wind up in your back yard the future is here walmart is looking to overcome a nationwide trucker shortage retailer raising the starting pay for long-haul truckers starting salaries are $110,000 per year that is up from 8$87,500. moving to six figures. an a lot of them already are

when you look at median pay for truck drivers in america, it moved in a positive way. >> a good thing if you want steady up the supply chain, you need to control or influence every aspect of that trucking is a huge part. you want to make sure you get the goods and get things on time this is a big p part of it. tough job. good for them. when we come back, could the masters get record ratings with the tiger comeback my answer is yes and before we head to break, look at the biggest dow winners and losers travelers is at the top at 6.5%. stay tuned you are watching "ua b." iss bcsqwkox f.” leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates

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welcome back to "squawk higher this comes after some modest gains yesterday, too s&p futures up by about ten right now and the nasdaq up by over 30. tiger woods finishing 1 under for the masters. he tees off in the second round in about seven hours joining us now the director of the sports business program in washington university in st. louis. and damon hack, golf channel host we'll talk about the money and everything, but i've got to start with damon just to talk about the golf aspect of this.

damon, do you know what -- what was amazing about tiger? i'll say number one that was key, and number 18 which was unbelievable the only real mistake you saw, number 8 two of those shots were very un-tiger-like. but were you like me i was watching him and the limp seemed to get a little bit worse, and i'm glad he's in the afternoon today because he did the morning yesterday. >> yeah, joe, he'll need the rest the limp was starting to get more noticeable as the day wore on but the adrenaline kicked in and really carried him through 18 holes. and you're right there were some vintage tiger moments at 1, at 9, at 18 as you mentioned, the flourish at 6 and 14 out of the pine straw there were moments yesterday where it looked like time stood still. now tiger has to get up this morning and find a way to get

his body warm after taking a long ice bath last night and find a way to do it again and do it again and do it again >> patrick, i don't want to ignore, i really don't, but i'd be remiss, damon, what about 5 did you see 5 you know how hard that hole is perfect drive and then that 218-yard iron shot that's like 2 feet to the right. it was just amazing. the one thing i thought -- i don't know if you noticed it but he pulled it on 9, pulled it on 18 and looked like his right leg, it's almost like the upper body got out in front of itself going left didn't it look like that, sort of >> yeah, it did. those are tired golf swings coming home which was expected the man hadn't played competitive golf in 508 days and the fact he was able to play some of the big names and favorite names going into this

week's masters it tells you the man is still elvis, still frank si si sinatra. >> no doubt. everybody could hear the cheers. you almost see the albatross on 13 >> i did that was remarkable and his first masters no less. >> okay, patrick, bring us the financial part of this >> i watched every hole tiger played yesterday, guys, and really impressive as damon said. but from a business perspective

certainly espn is going to see massive ratings, and i think cbs is in for a massive weekend if tiger is anywhere near close to the top of the leader board which is great for their partners and great for tiger's partners obviously with nike and the many different corporations he represents. so it is truly amazing and what's really odd to me or kind of ironic is last year when phil mickelson won the championship, the oldest man to win a major. and of course we look and see what's happened to him, and tiger, we didn't think he was going to play and now his sponsors are seeing an uptick. it's great >> i was watching baseball yeah, they routed the pirates, but i had the cubs money on it, and the reds money on it i couldn't believe it. i've got collin. i said that and i was a really worried about him a couple of times yesterday. so, patrick, there's a lot of

betting happening, too, on all these things >> i think golf betting should really be a take off moment in the gambling space and golf in particular you could bet on everything. you could bet on whether somebody makes the fairway, makes the green regulation, whether someone makes a putt i think there's great opportunity of the golf industry seeing an increase in doing these corporate partnership deals with the gaming industry, which they are doing with everyone else from the sports industry >> wow, that'd be easy money, but i'm betting whether i'd make a putt or not. bet on no. did you also see tiger yesterday saying a horrible warmup but a warmup you're supposed to warmup, that's all it means. and it he went out and i don't know it was the adrenaline, and

they switched a lot of the guys that went off yesterday morning and going off in the afternoon and vice versa, so we've got that going for us. you've got to pick who do you think is in the top -- who finishes in the top five do you think? >> dustin johnson had a really strong start cameron smith as you mentioned i think brooks kepka the temperature is continuing to drop, but we know the man has 15 major championships and five green jackets, the magic of 2019 i think tiger will work his way into the top five as well. >> tiger thinks he can still beat jack mickelson's record and he's done everything else,

so basically so why wouldn't -- he still has, what, 29 records from 1997, i think, or something like that. >> don't forget about the silent assassin scotty shepherd it's going to be interesting to see. >> he is >> by the way i love em, too i'm excited for any one of these story lines to play out at this point. i heard gary talking about how tiger woods is working out early. >> and gary through a lifeline to phil, too he said if anybody has done more for pr for golf over the years -- all right, gentlemen. i want to thank you both what are you guys doing at like 8:00 this morning? >> i wish i was at the masters i'm jealous of damon >> oh, i wish i was playing.

>> squawk will be right back >> bye, guys ♪ ♪ ♪ with a bit more thought we can all do our part to keep plastic out of the ocean.

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the crypto enemy list. calling out warren buffet, jeremy diamond and larry fink. and twitter welcoming elon musk and inviting its employees to a pretty unusual q&a session the second hour of "squawk box" begins right now good morning and welcome back to "squawk box" right here on cnbc. i'm andrew ross sorkin along with becky quick and joe kernen. nice to see everybody this morning. got a huge line-up this morning over the next two hours including former fda commissioner scott gottlieb going to talk to us about covid and where things stand and lots of movement there. also talk the war in ukraine with him and former fed nominee judy

shelten. take a look at u.s. equity futures at this hour got some green on the screen this friday morning. also show you treasury yields as well as we flip that board around watch -- watch for the big inversion and whether -- whether it portends a recession or not but i'd say about three big things investors are going to be watching today on that list can markets avoid weekly losses, major averages all lower at this point since monday also elon musk going to texas cutting it ribbon and teasing the next products. and billionaire i don't know we're calling it friendly fire or not so friendly everything pe peter teal had to say yesterday about warren buffet and wall street first we want to jump into the markets and a look at three stocks that have had a tough time thus far this week.

the managing partner at douglas and associates and also a cnbc contributor, it's great to see you this morning it's been quite a week we're discussing whether the fed is almost too much in focus and that's what we've been focusing on is that a problem at this point or do you think that's what we're supposed to be doing >> i think the fed has been quiet the last couple of years and i think now they're front and center credibility is a main concern here for the fed and we haven't seen this in many years, so right now earnings have taken a back seat, and i really think earnings season is going to be very important for a lot of companies and really kind of say, hey, look, we've come out of this pandemic to an endemic, let's just see what earnings power is going to look like >> let's talk about some of your picks, though, because you like morgan stanley, you like disney, you like ge, why >> so very different stories

there. let's break up morgan stanley. morgan stanley is now down 15% for the year 60% of their business is recurring asset management they don't really have a lot of credit risk out there. right now they've been thrown into this financials etf and i think the management team there is going to show you the balance sheet is very strong so i think the multiple compression there i feel is not necessary at this point. take disney. we're coming out, again, as just mentioned the demand for disney you look at 40% ticket increases pre-2019 so you've got the consumer coming out there i call it with the magic economy and disney has been put in the penalty box. it's different because the consumer now just wants to leave their home they want to do other things >> but isn't the question not about what people want to do

today but what people may or may not want to do 12 months from now if you believe the stock market is lower, if you believe the wealth effect and people are more skittish and nervous and say to themselves we were planning on taking that trip but maybe we shouldn't >> i don't disagree with you but i also think what happens in times like this is people sell their stocks quickly and say let's see how it's going to go our view is things will slow down, but not to point it's going to be as bad as what some of these stocks are reflecting because they're also coming out of really low costs. if you look at kind of where disney was last year, look at the earnings power of their businesses including disney plus which is still growing, i think, you know, it's valuation centric what we're looking at here, andrew these are stocks trading below market multiples these are companies with strong cash flow. disney even stopped their dividend just to kind of

preserve cash and now they're in growth mode. i call it kind of like the blue chips. i think there's potential there, but the market saying really strong recession fears, stay away from these talks. >> if we're going to call morgan stanley and disney the blue chips, your third stock used to be considered a blue chip. i don't know if it's a blue chip anymore and that is general electric, ge >> i'm talking value here. as people are selling off the other stocks just ge is in the middle of a big restructuring move completely separate, aviation, health care and then energy and renewables and each one has kind of their own good characteristics, so if you're a value investor the catalyst is really down the road, you kind of what to accumulate stock like this now

i'm not saying it should be the only stock in your portfolio because if the execution story of ge happens, which we think it is, and separate lines of businesses are really good, i think you're going to do well. the aviation business, 60% of their business is all the engines of the world, so, demand coming out of the there, the market saying we're going to go down from here you want to have companies that have strong potential down the road >> just to be clear here, there are going to be people watching us this morning and listening to these names and saying morgan stanley, okay, does that mean you like all the banks and if you like a ge like that, and i think the answer is no, correct? >> no, absolutely correct on that one when i look at kind of the financials i'm looking at strong management teams, strong balance sheets and right now we're looking at

credit risk, looking at where are these companies situated in the world, what are they doing in terms of consumer and lending. i think that's really important. it's not just disney plus. this is parks and entertainment. they have so many different levers to pull i think when you compare to the cvs' via coms, that's a one trick pony i think that's where the focus is going to be >> thank you for joining us on a friday morning always good to see you >> it's friday >> fri-yay >> holy smoke. you can't say that >> this could not have escaped you. >> and i decided i like the morning at work on fridays best. >> it is it's fun >> because after that -- the minute it's 9:01 it's like

monday >> okay, i'm not there yet coming up, russia's relationship with the rest of the world fracturing even further this week. we're going to talk about what that means for global security it can't be good, and the global economy with "the new york times" foreign affairs columnist tom friedman and covid cases also on the rise in areas of the united states as well. former fda commiior ssnedr. scott gottlieb with us next on all the latest headlines stay tuned "squawk box" will be right back.

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it can power hundreds of devices with three times the bandwidth. so your growing wifi needs will be met. supersonic wifi only from us... xfinity. welcome back to "squawk box. the futures up 132 now those are some of the best levels we've seen since we began. the nasdaq indicated up about 54 and change and the s&p pitching in as well at 16 check out the russell 2000 this on pace for its worst week since january. and the dow transports down 66% this week and on pace for their worst week since last january, though they did break a six-day losing streak yesterday. i don't know

you've got energy is expensive and maybe there's a looming recession, and neither one of those things are great for transport. >> that seems to be the case add on top of that covid, and i don't think that's having an impact just now. shanghai in china reporting a record 21,000 covid cases just today alone if you can believe that global standards -- it's by global standards not been enough with the city completely locked down 26 million residents our next guest says china's goal doesn't seem to be stopping this outcome and rather it seems to be maybe pressing the spread itself so joining us now dr. scott gottlieb, cnbc contributor on the boards of pfizer and alumina. dr. gottlieb, you think the strategy is just backwards at this point >> well, look, we deploy mitigation here in the united states as a means to an end.

and initially we did that with the vaccine and continue to deploy the vaccine leaning heavily on it. eventually people acquired more natural immunity but the mitigation was a means to an end. it wasn't the goal in and of itself we were trying to buy time to get immunity for the population. in china it doesn't appear they're using it to buy themselves time. there's no large scale effort to get people vaccinated. this is largely an under-vaccinated country right now. the lockdown seems to be the end of themselves the mitigation they're deploying trying to prevent cases rather use the mitigation these are true lockdowns we didn't have true lock downs in the u.s china is keeping people in their homes, locking people in their homes. it doesn't appear they're using tactics to try to buy time to get immunity or stop therapeuticsch right now 60% of those over the age of 60 haven't

been boosted there's 52 million over the age of 60 who haven't been vaccinated at all. this is an under-vaccinated population going to be exceptionally vulnerable to this spread >> i want to take this story back to the u.s. because the other thing happening is we have seen an increase -- i don't want to say spike but an increase at least in the northeast and you're starting to see it elsewhere. i don't know how many friends you have that got covid, omicron in the past couple of weeks but the prevalence is getting there. and the question is is there something we should be doing about it >> i think the spread right now from ba.2 is largely confined to the northeast. there's a surge under way, no question about it. and we're not picking up cases because most people are not testing at home. i think what we need to watch are hospitalizations some indication of rising hospitalizations in new york but from a very low baseline

it's quite possible we'll have this spread, we'llendure this surge, and i don't think this is going to last much longer. and as the weather warms this will start to abate. but it could be we endure this surge without seeing hospitalizations go up measurably at all. and a lot of them weren't infected because they were taking steps to prevent themselves from being infected you've got to surmise someone so far has been able to prevent themselves is likely to be someone vaccinated and likely someone who tests early and seeks out the therapeutics they're going to be a more vigilant patient that's not universally true, but i think on the whole the people getting vaccinated now are people who have sheltered themselves to date >> i've got a question actually on behalf of my parents over the age of 50 years old.

they have opportunity to get the booster, this would be the second booster and there are some doctors saying you might want to wait on the second booster if you think you want to be more protected come fall, or do you imagine there's going to be a third booster in the fall. >> look, i think this is going to be annual vaccine i think we're going to get away from the lexicon of calling these subsequent doses boosters. i think this vaccine right now the one we're using provides about six months of protection against omicron. remember we're three or four variants removed on the variant this vaccine was based if you want to be up-to-date, you want to have maximal protection and you're someone who's vulnerable, i would get the booster. i would go out and get it now with the expectation you're probably going to get another dose heading into the fall it may be an omicron specific vaccine. moderna and pfizer both developing omicron specific vaccines once we get out of this pandemic pattern and we setting into a more seasonal pattern, and i think this year will be the year

in which we do that, this will become annual vaccine because we'll only need to contend with this in the fall and winter. so you'll get your shot in the fall and be protected for six months and it'll take you through the fall and the winter much like the flu vaccine does the only reason we've been getting these boosters is because there's been continuous spread >> what is the status of these new omicron specific vaccines, and where are we in it terms of the testing on that, and when will we know yeah, there should be initial data this month from pfizer with more data to follow in may i don't know what the update is from moderna, but we should be starting to see the read out from these trials pretty soon and get an indication how well these omicron specific vaccines work i'm hopeful these platforms are well understood at this point so these vaccines specifically engineered is going to provide more protection against that variant and hopefully protect well against the other variants

as well. i think if that's true, the data is strong. i think at least some portion of the population is likely to get a recommendation for an omicron related vaccine. >> and the final question is just what's your guess or handicap what percentage of the country actually does that come fall or how does that change the dynamic one way or another >> look, we have a country right now with a lot of baseline immunity people who have immunity either from prior infection or vaccination hopefully won't be as susceptible to the virus for a second time even though there's been a long period of time from when they acquired that immunity and when they get reinfected i think you'll see a high percentage of americans go out and get boosters maybe 120 million americans will get the flu vaccine and that includes children and young children i don't know we need to get 250 million people reboosted

i think if we get 175 million people or so to get a booster in the fall, that's going to provide enough base immunity in the population that those who aren't vaccinated, a lot of them probably are going to have some residual immunity and won't get very sick, have pretty substantial protection we're not going to get, you know, 250 million people boosted. we know that i think if we can get close to the high 100s, that's going to be pretty good >> happy friday to you we appreciate your perspective and analysis on all of this. thanks >> thanks a lot. coming up, we want to know if sanctions are having any impact on vladimir putin in the war he launched in ukraine to find out we're going to speak to "the new york times" foreign affairs columnist tom friedman stay tuned you're watching "squawk box" on cnbc time now for today's aflac trivia question. what company's tag line is

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aflac trivia question. what company's tag line is innovation stops at nothing? the answer, dell technologies. all right, elon musk hosting a cyber rodeo. sounds like the beginning line to a joke, but it's not. this was the name of last night's grand opening for tesla's new billion dollar giga factory outside of austin, texas. sporting sunglasses and a black cowboy hat musk highlighted products in development including the company's cyber truck and a robo taxi. >> the prototypes, you know, they all require imagination, and they're not easy, but relative to production prototypes are easy, production is hard. and this building is the most advanced car factory that earth has ever seen. >> that's a cooler look than the last time he was dancing take the cowboy hat and black sunglasses any day

in the meantime the company aims to start production of its cyber truck next year. those shares up just pairly, but, yeah arb as you can see they've had a good couple of weeks. i said ron baron, his cost basis was $219, it was but that was before the five for one stock split. so his cost basis is actually $40, which is why it's seen about a 20-fold increase or so just since he invested in that in 2014. >> unbelievable. >> that's a track record and his explanation yesterday why he sold shares because it had gotten to be a huge portion of the portfolio just because it'd grown so much >> he's got to be prudent as a money manager, too, and that's part of being prudent not to be too concentrated speaking of elon musk twitter plans to host its newinvestors and board members with a

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this was the week oil company executives got grilled at least publicly over those high gas prices. members of the house energy committee charging that the industry is taking advantage of a global crisis from russia's invasion of ukraine to gouge consumers. >> no single company sets the price of oil or gasoline the market establishes the price based on available supply and the demand for that supply >> it's time for the big oil companies to -- to lower prices rather than pad your bottom line >> it feels like gouging it even feels like profiteering.

>> the price of oil, gasoline and other refined products are driven by international markets. >> here we have no tolerance for price gouging. >> president biden walked in day one with an agenda to kill emergency energy >> president biden should consider his own culpability for higher energy prices >> joining us right now to talk more about the global energy crisis is the war in ukraine is tom friedman he's the foreign affairs columnist at "the new york times" and also the author of "the world is flat" and many other books. tom, thanks for joining us today. it's good to see you >> great to be with you, becky >> let's talk about this because i know it's really popular to bash the oil companies right now, to say that they're the ones who are gouging consumers, and it matters because so many consumers see the prices at the pump they feel it immediately in their wallets and they're mad. they want somebody to blame for

this is it the oil company ceo's fault. >> i don't think so actually i'm no huge fan of oil as our energy source, but this industry has been through a decade of wild swings in the price of oil. we're price takers not price makers there's a car tell out there called opec that's a price maker, and it's a price maker because it has two large producers, opec plus russia, that have a huge amount to spare and chief capacity so they can manipulate the price we don't have a single company that can turn it on and off like these companies do so basically the american oil industry has been whipsawed over the last decade, and a lot of people because there was no stable predictable price and right now they and their shareholders want to take advantage of the high price to pad their pockets obviously. what we need is high import tax,

a price stable and predictable for american oil producers to make a profit, to consistently drill, something like in the $50, $60 range and if it ever fell below that, you tax it up. that's what we need to have a stable supply of -- >> whoa, we're talking price controls this was not what i expected to hear from you, tom because price controls you take me back to the '70s and you worry me a little bit. >> it's saying we're going to have a stable predictable price if you want to import oil to this country that will ensure our producers that they want to pump oil, they're going to make a profit and not be whipsaw. >> they're not going to be able to charge over that either the setting of the floor -- >> i'm talking about a floor price. >> okay. but i don't see that flying in washington because they're

really mad right now prices have gone up. i didn't see them complaining when prices went negative. >> sure. but unless you have a stable predictable price we're going to go through as we have for years now these wild swings. and these companies -- >> right this is a big problem. i think the bigger problem may be these wild swings in policy that come out of washington depending on who's in charge for four years at a time or two years at a time for you're watching the senate or the house, these wild swings in terms of what we're promoting, what we're saying you should be doing. we have some of the very same democrats yelling at them saying they're gouging and that they are stealing from the consumer who were the ones telling them less than a year ago in these same sort of hearings, by the way, we don't want to see you drilling anymore, you're drilling too much. why can't you be more like the

europeans who said they will only drill so much that to me is bigger whipsaw not the price changes because these companies can weather it for the most part if they're looking at shifts but the idea of not being able to figure out which way you're going to get slap from the regulators in washington and from the policy makers, that's a bigger deal because if you're going to invest in these projects it takes years and takes billions of dollars. and no one wants to put billions of dollars of capital at risk if you're going to be told you can't lose any of it a year or two from now >> you can get a stable predictable price with policy, and you can get it through a floor price, but right now we don't have a stable predictable price, and we'll never be able to pump enough oil to be price makers that's never going to happen >> yeah. let's talk about the war in ukraine and how this has really highlighted all of this. i saw a video this morning put out by ukraine it starts very

slow with these smiling people filling up -- they're filling up their tanks at the gas pump, and it says you're not paying for this with euros or with rubles you're not paying to fill up your pump, and then it takes some of the really graphic scenes from what's been happening in the war in ukraine, bodies, people with hands tied behind their backs and it says you're paying for it with the lives of other europeans just like you and maybe that hammers home this point better than just about anything else. it's very graphic but it's true. >> look, you know, george w. bush was the one who said we're addicted to oil, and we need to have a long-term plan with a transition from where we are to get off that addiction that's always what i believed and that's what i've been pushing for, you know, for 20 years. we keep forestalling that plan, so we end up trump begging russia and saudi arabia to pump less, and then biden begging trump -- well, begging russia --

not russia but begging saudi arabia, venezuela, in effect iran to pump more. but the common denominator, becky, we're always going to be begging somebody to pump more or less because we cannot control the price. that's the fact. so let's get off it. let's get on that transition to a different -- to the source of energy and we keep talking about it but we're not doing it and as a result we're hostage to all these people we're always begging somebody. >> it feels like it's one of those intractable problems where there's not going to be any agreement in washington. there's a lot of problems that seem like you should be able to reach some rational middleground whether that be immigration or something beyond really would be some things that would help us but for whatever reason we just can't find a common middle ground with any positions anymore. >> look, if you listen to the

green movement, and i consider myself a green, but i've always considered myself a mean green or realistic green i am told by -- i don't know this from experience, becky, if you jump off the top of a 100-story building for 99 floors you can think you're flying, okay it's the sudden stop at the end that tells you you're not. if you decide we're going to go cold turkey right now off fossil fuel you're jumping off 100. story building and eventually you'll hit the ground. we saw that in germany which got rid of nuclear and now back in coal on the other side of the steam boat you have people saying pump, pump, pump, pump and we'll take care of it. we can't find a rational middle ground on this issue >> let's talk more about the war in ukraine and what you think is going to happen. we have ramped up our sanctions to a point i don't think anybody thought was possible with the newest legislation yesterday basically putting russia in the same camp as north korea, real rogue regimes and cuba

it's very likely the president will sign that legislation in terms of their trade abilities because only three members of congress voted against this entire legislation package, but is this enough ukraine at this point is asking for weapons, weapons and more weapons. should we be arming them will the sanctions be enough how should we be approaching this >> so if they want weapons, weapons and more weapons, we should give them to them i believe ukrainians have mounted an incredibly courageous fight for their own independence, and i'm asking for american men and women to die for their country, they're asking for the ability to have the tools to defend themselves and i think we should be giving them whatever they need. basically we're at a stage now putin's plan "a" failed. his army turned out to be incompetent and barbaric so he's pulfalling back on plan

"b." plan "b" is to seize these eastern provinces of ukraine and down to the south and odesa and connect with crimea. when they have they great victy celebration is declare he had some kind of victory i think the most important thing we can do right now is help ukrainians to possibly actually help defeat putin's plan "b," to break the russian army because if the russian army in ukraine were to break, boy, that would be really, really interesting because then putin is going to name the military as the scapegoat. you can bet he'll go after some generals, and then the generals may go after him we can't oust putin, the russian street can't oust him but the military or security people can. i'm all for fostering that kind of situation by defeating his military on the ground that is the most important thing that can happen. if that happens a lot of better

things will flow from ukraine. unfortunately, part "b" of his strategy is not just to try to seize eastern ukraine but to create as many refugees as he can from ukraine that's why they rocketed a train station this morning his hope is to flood every nato country with ukrainian refugees so their leaders will eventually come to zelenskyy, the president of ukraine and say, look, you've got to settle with this guy, we just can't take anymore people we're in a competition now with that military component and his refugee plan and our ability to squeeze him through economic sanctions. and in the next six weeks, you know, two months we're going to see which side screams uncle >> that's a tight time line. if you're talking may 9th they want to do this for their military parade, that's a month from now and it would take time to get weapons there even if you could see this passed by congress and signed on by the president

quickly. a plan like this, is there support for it in washington what are you hearing >> i think there is. the announcement i've lost track is something like 800 billion in more stinger missiles, anti-tank weapons. and we've got the european countries including the eastern european countries that have soviet era equipment as well, they're pushing them in there. my sense is ukrainians are getting the weaponry they need or will be shortly, and they've done just amazing on the ground. they've basically defeated the russian army and putin does not have many more troops to draw on, which is why he's pulling in syrian and chechen purseinaries basically i mean this is a colossal disast, a man who wants this war thinking it was going to prove to the world russia had been taken seriously military obviously they have nuclear

weapons, but it shows you his military was a hollow shell. >> tom, how do you think this ends because this week they started talking about the idea this could potentially last years not just weeks or months is that a realistic idea >> becky, i'm really worried because i don't think we've fully grasped how much the world has changed in the last two months you know, we got used to over the last 20 years dealing with what i would call bad boy putin. he was a bad boy, but we found ways to collaborate. he was a bad boy in chechnya, syria, georgia he went up to the line even in crimea and never went so far that we felt we had to respond at scale, and he never did anything super bad at scale, involved himself in our elections, all these things, but you know what i mean we've gone from bad boy putin to war criminal putin

now, when the head of russia is a war criminal, when russia becomes a pariah state, russia that spans 11 time zones, russia that has more nuclear war heads than any country in the world, russia that is the biggest oil exporter in the world, the biggest wheat and fertilizer exporter in the world, what kind of world are we living in? that's a very different world when russia is a pariah state, not north korea. and frankly, becky, i don't know how this ends other than with the russian people finding a way to remove putin. now, if they remove putin one of three things can happen. you can get someone worse. that's very possible you can get chaos and disintegration in russia, and you can get someone better if you get someone better, someone mba league decent, minimu

minimum as the leader of russia, becky, you have a different world. you can go back and reimagine what george h.w. bush talked about of europe holding free but be afraid. we're in completely uncharted waters when you move from bad boy putin to war criminal putin, that's a different russia >> i think the world is trying to process all of that right now. thank you for your time this morning and your thoughts on all of this. coming up, much more on the markets. major averages on all pace for a losing week. futures right now up 150 on the dow. a reminder you can always watch us live on the cnbc app. we're coming right back.

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now on this friday morning a little bit of green to start -- start the weekend off maybe in the right direction after what's been a wild week. and also let's show you treasury yields as we flip the board around and we keep looking to see where things are, whether -- whether we're inverted is that what we're doing every day, becky, now? >> yeah, i mean if you look at it just everyone of them inverts on a different time frame. it's just bouncing around. we make a big deal about the ten-year, two-year inversion but this is some weird activity and cleary an inflection point we haven't seen something like this where you're watching on a daily basis and so long i can't remember >> once it's been inverted once then it just means -- >> yeah, it means they ding the bell but, again, this is an imperfect measurement in time in

terms of time. it doesn't mean we're heading into a recession tomorrow. it can mean anytime in the next couple of years and that's about as useful as a broken clock, but it does kick off something and if nothing else it kicks off the constant speculation in continuing to watch. i guess if you're continuing to watch, you're wondering how long it lasts that's a critical sign. and he looks at the two-year three month as a better indication of when you're actually dealing with some of these issues you know, it's fun it's interesting, gives us something to do. in the meantime spirit airlines says it will start talks with jet blue on its rivals $3.6 billion take over bid spirit had already agreed to a buy out offer but said jet plu's bid could lead to what they're calling a superior proposal, something they'd have to consider i guess as a fiduciary.

>> by the way, if you are spirit, you have to use this this is your moment. you have to engage in the conversation it's not don't engage. it's just how do you effectively maneuver frontier to pay even more, and the issue is i don't think frontier needs to pay as much as jet blue because effectively if i was on the board of spirit i think it could be a tough road to actually get the deal >> cramer is positive that neither of these deals would make it past regulators which is why he doesn't want to be an owner of these stocks right now. >> there's a separate argument to be made the jet blue deal is a spoiler in term of not just trying to raise the price but pay so much attention on all this it would cut everything up. >> right and seen that done before and at the very least a spoiler in terms of making them pay

more >> move on here. tiger woods and a lot of other gophers -- wait, gophers i said golfers >> he doesn't remember the stuff he said because i said that once tiger and other gophers teeing off today in the second round of the masters. for woods this caps a comeback more than a year in the making after he suffered major injuries in that car crash. you might recall yesterday woods finished the first round 1 under par tying for tenth place. i think there was conjecture he might even lose that leg at the time just a little over a year later. >> he was in bed and doing massive rehab since then >> there must be some metal in

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the ten year note hitting new highs back to 2019 this week joining us now is the president and investment strategist of

global strategies. i think looking at some of your latest thoughts when you've kind of been behind for this long, the notion that you're going to be able to get ahead of it without any adverse consequences is as you call it a fairy tale the idea you're going to be able to raise rates, keep unemployment where it is and gdp where it is just not possible because you have to go much further and there's going to be negative consequences. what does it mean they don't follow through with it or they fail to tame inflation >> what it means, joe, is one of two things happen. they do push the break very hard in the next two or three, and they just clobbered the equity market, and it becomes very clear growth is going to slow significantly during a politically important year, and then the fed backs off like

august, september of this year they back off and saying he's concerned about market stability, he's going to go slower in terms of the portfolio reduction or in terms of interest rate increases. so that is one way to go, but if he does that then he's going to postpone the problem to 2023 and inflation will come back even more strong and the fed will have to act very, very strong in order to control it. so there's no escaping the fact you need tough policies. they will hit the equity market and the economy hard and i've been speaking for several months now you're not going to have just a recession, joe, but you're going to have a stagflation even as the economy weakens. >> i just -- you think if they

did follow through with their plans you think that's going to tame inflation and i guess the other thing are we sure this isn't just a temporary supply chain issue and the problem might not be as big as we think? >> the answer to your first question if they do take strong action depending on how strong the action is, inflation will always be tamed. it was tamed at the end of 1970s, beginning of the 1980ss and the second part of it -- go ahead, sorry, joe. >> no, they're telling me we've got to go. we will have you back again and find out what the second part is but 8:00 is coming up, so we're very precise around here so it's great to have you on >> good to be back okay, when we come back a lot more on "squawk box. we're going to talk about

tesla's new factory in texas the giga factory it is coming online. we're going to bring you the must-see highlight it's something to behold stay tuned squawk coming right back ? and you had to wrestle a massively complex supply chain to satisfy cravings from tokyo to toledo? so you partner with ibm consulting to bring together data and workflows so that every driver and merchandiser can serve up jalapeño, sesame, and chocolate-covered goodness with real-time, data-driven precision. let's create supply chains that have an appetite for performance. ibm. let's create.

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good morning, it is 8:00 a.m. on the east coast, and here are the big stories at this hour futures pointing higher this morning on this friday still on track to post a losing week, however. the big driver, fed fears. our special guest this hour central bank critic judy shelten, never one to hold her tongue elon musk also opening a new tesla plant in texas and planning a q&a with twitter staffers he joins that company's board. meantime peter teal targeting warren buffet and jamie dimen. all of this plus this morning emphasis big stock movers as the final hour of "squawk box" begins right now >> good morning and welcome to

"squawk box" here on cnbc. u.s. equity futures up triple digits between maybe 80 or 90 and 150 on the dow nasdaq up solid, up about 50 traegsy yields this morning recently no inversion today. 2.696. yeah, the five and the ten >> let's get to this morning's movers first up spirit airlines saying it is beginning talks with jet blue about its rivals $3.6 billion take over bid spirit had agreed earlier this year to a take over by frontier airlines but said it could lead to what they're calling a superior proposal. you've got spirit up by about 1.6% frontier unchanged right now and robin hood markets downgraded to sell from neutral at goldman sachs the analysts believe consensus

estimates are too high and sees a high bar for the company to achieve profitability in 2023. and wd-40 trading higher it did slightly its full year guidance because of inflationary challenges that stock right now up about 9.2% elon musk making headlines at the grand opening of tesla emphasis new giga factory and this is a pretty big deal, traditionally not what you see with an opening at one of these factories. >> no, but it is what we see with elon musk when they be an unveiling of a new vehicle and in texas driving out on stage in the very first tesla roadster. you've got to go back 2009, 2010 this is when they were just putting it together, putting

batteries on a lotus sled. this is how they kicked off deliveries of a giga factory eventually if they ramp up production they believe their capacity could hit 500,000 vehicles annually. and according to elon musk this is just one step in the bigger issue that tesla faces, which is making massive scale >> this year's all about scaling up and then next year there's going to be a massive wave of new products >> what products are we talking about, the cyber truck he says that will go into production at giga texas next year, and you've got the tesla semiand that will also be built in texas and the new roadster you've got to go back to 2017 so it's been a long time coming and people are saying, okay, eventually, when do we start to see these new products that's coming up in a little less than two weeks.

april 20th, 420, that's when they're going to be doing the earnings and a lot of people focused on what they have to say in terms of the production for this year. that will be the big ocus. >> get it 420. back to the fed, the start of the earnings season and what really matters to the markets right now. joining us for that is the chief market reporter at "the wall street journal" money and marketing team the fed is probably even more in focus than it had been it's going to tighten the balance even faster than the fed had been anticipating. we're still not that far off from the all-time highs when it comes to both the s&p 500 and the dow. we're off those levels >> what a rebound it's been since the march lows i think the s&p 500 has roughly

had its sell-off for the year, so it's really been an incredible rebound despite, you know, going from expecting zero to three interest rate hikes to maybe seven, looking at a 50-basis point interest rate hike at the next meeting, so it's been quite a ride and i think, you know, investors i've been speaking to have been a little bit puzzled by this rebound juxtaposed with what we've been seeing in the bond market where the bond market is clashing, but at the same time stocks have kept going up over the past month you've esoon seen speculative corners of the market or other bets like that stage a huge rally. >> the one thing i would say is it's not completely nonsensical. when you're so concerned about inflation like this, if you don't want money, you don't want cash sitting around. that's the worst investment you could have when you're talking about inflation north of 7 or

8% that whittles away your buying power so rapidly it made sense for people to be piling in and buying this dip. i mean, i hate to use tina, but there is no alternative. it's hard to find a place to hide in the bond market and cash looks like a stupid place, too >> i think that's the one big question on investors minds is how much higher do yields have to go, ten-year treasury yields have to go in order to chip away at the value proposition for stocks and i think over the past month what we've seen is it's not doing that yet >> we see that but do you get the feeling from the investors

or retail investors, too i've been hearing from a few places that has dried up to a great extent just over the last couple of weeks. >> i actually was hearing something similar, but it seems like toward the end of the third quarter retail investors did step in to buy that dip. and we saw a basket of retail favorites jump around 20% within two weeks in march, and that contained stocks like gamestop and amc. there are one common theme and they are saying we have never witnessed such an uncertain investing environment. you know, recovering from the covid-19 pandemic itself and the economic recovery for that, who has lived through something like that and on top of that you have a war in ukraine you have the fed raising interest rates you have inflation at a 40-year high so people are saying we have not

seen something like this before. >> yeah, maybe the scarciest thing is the fed no longer supporting us and maybe not getting the federal spending like we've gotten to this point, too. like we're out on our own, and that may be the scariest thing to investors it's good to see you have a wonderful weekend okay, we've got a lot more coming up on "squawk box." it's a fight, and we're going to talk about it. pe peter teal calling out well-known names on wall street going after warren buffet and elon musk preparing to answer questions from twitter staffers. first as we head to that break check out some of this morning's biggest premarket winners and losers stay tuned you're watching "squawk box" here on cnbc

we're back

"squawk box. 120 now on the dow s&p up 20 and change nasdaq was up about 50, now half that, up about 27. >> okay, thanks, joe making headlines and a lot of noise on wall street famed billionaire venture capitalist peter thiel sounding off. he said warren buffet tops his list of people trying to stop the iptow currencies and also compared esg to ccp, the chinese communist party. meantime twitter planning to host elon musk today for a question and answer period with employees. the q&a said to be a response to some staffers who were critical about concerns about musk joining the board. joining us right now to talk about all of it, a colleague of peter thiel's and so much more, joe lonsdale

joe, great to see you. let's talk about what peter had to say at this conference. called warren buffet a s sociopathic grandpa. >> it's not very nice. we had a fun party with elon here in austin last night. i've always admired his contrarian mind. it's been really fun, frankly, to watch my genx friends increasingly start to get contrarian and i think where peter is coming from here is that there are a lot of people who like to work top down and who made their money by partnering up to put in rules top down and kind of take over industries that way, and there's a lot of parts of our society actually more functional and china banning because they don't

want bottom up and distributed because they want to control and mandate. all of us want to help the environment. what esg in practice is a framework and a way for people to get to control what gets money versus the market. >> obviously elon musk has made a career and one of the other things he talks about is building spacex so we can all effectively escape the planet at some point, and yet he's also been quite critical of esg or quite critical now, but obviously for most of the history of tesla has been campaigning vigorously against fossil fuels >> you know, esg can mean a lot of different things, andrew.

what it's come to mean in practice is that the people who control the large financial institutions get to shape who the enemies are and who the enemies are not. and it's very dangerous for any society for a small cabal of people to have power top down. >> you know i'm a huge admirer of elon, but the truth is he was part of that i mean, if there's one person who's villainized the fossil fuel industry of just about anyone in the last decade it would be elon musk >> yeah, and i think it's fair for everyone to have their own opinions on what things are helping and what things are hurting. and when that works bottom up and when someone is an entrepreneur i think it's important to express their own values through these things. when it's being captured by the biggest financial institutions to ban things that's very dangerous for a society.

it's very much in the direction of china -- >> here's the thing i've been grappling with which is that over the last decade as you know there's been less and less investment in fossil fuels you could argue that was actually a free market -- it was the free market that did that in part because of the price of oil, by the way that was a huge component part of this but also because there was this push away from -- around esg led, by the way, elon in many ways because people were trying to invest more esg and create esg funds to invest in things like tesla. so there's obviously the government control issue which i agree with you we can talk about that but then there's this issue of what does the free market look like and sometimes we like the free market and certain times we don't like the free market >> you know, i think fossil fuels is one area, andrew, where esg plays a big role, but there's lots of other areas.

there's a big mistake, for example, we haven't done more defense. if the places in china are innovating faster than us in defense because it's not esg to work on that, and there's so many areas where you're right the free market should be able to decide what it works on and focuses on, but it is a bad thing if you can capture very large financial institutions and stop people from getting money and stop other ideas top down. that's very dangerous for society. it is very much ccp like and i think others who have been talking about the same issue are talking about. that's when it starts to get really scary >> this whole movement blaming wall street, you're really talking about one or two places. it's basically black rock because they control the votes of the shareholders who own the

shares >> it's black rock i think black stone has power there. there's two proxy voters with all the passive shares and starting to become politicized there's all these pensions run by groups especially in the u.s. and rally the money going towards whatever is politically popular, whatever the current thing is you're supposed to believe if you're making 100,000 or running a pension and it gets influenced that way and gets influenced by the ideology of a lot of these people. it's an interesting force in society it's like what you're supposed to think and not supposed to think about this current thing. and this comes to the whole twitter conversation, right, with elon, where there's certain things you're supposed to think and amplified and you're supposed to quietly shift the public square away from things

you're not supposed to think this esg theme runs through a lot of debates we're having right now. that's what you see right now popping up >> you know elon very, very well, what do you think he's hoping to accomplish at twitter? there's been some speculation i've made myself which is that 12 months from now maybe it'll end being the chairman of the company. >> my bias is she's far too busy to run twitter but the public square is very important not to be the story, we need free speech in the public square. and i think one of the things you're going to see is that the board right now of twitter has plausible deniability and doesn't get real reporting what they're censoring, not censoring and what they're shifting to not spread it's called shadow banning what

they're doing there. i think the board kind of sometimes knows they're doing it i think elon is likely going to take that away and cause people to confront. >> do you think is elon of the view completely sort of laissez-faire truth wins out view and everything should go up there, and by the way that includes president trump and others that have been banned from the service historically? >> i mean, jack dorsey used to be of that view. twitter used today be a free speech space, and elon has said very clearly what his view is on star link. and given what he said about how he wants star link to work and given what he said in public about free speech, i think he probably believes that and i believe the founders of america believe that, too. and it's very insidious to say i believe in free speech except where it intersects. >> one of the things i think so

complicated about this we're living with the situation with russia and ukraine right now, for example, twitter effectively has stopped allowing, you know, russian government handles to proliferate information on twitter. i think they can publish it but it doesn't get magnified is that something you would be against, effectively >> i'm generally for transparency but not censorship, andrew so i think it's really good to be able to identify what something is coming from, who something is, if something is the russian government if something gets modified as long as you know and you figure out i think transparency really helps. i think that's true of elections and true of lots of other areas of free speech it's tolly fine to require transparency it's not fine to block people from being able to say things and spread things. sometimes the most true things of society are things people aren't allowed to say.

>> i love having this conversation a lot of truths and truth bombs in there thank you so very, very much >> thank you when we come back, private equity increasingly dominating nma markets. new numbers after this take a look at energy prices this morning wti up by about $1 at this point, $97.09. cooking oil prices have also hit new highs this week. this comes because of what's happening with the war in ukraine. that accounts for nearly 50% of the global sun flower oil supply grape seed oil prices jumping 50%, and soybean oil up 29% this year largely because of a drought in latin america all of those things coinmbed and look atika modty prices, too stay tuned you're watching "squawk box" and this is cnbc

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>> welcome back to "squawk box." the futures this morning have been higher. the nasdaq up by 33 as we ease into the last trading day of the week in the meantime p &e becoming a bigger force in the game leslie picker joins us right now with the real deal behind the results of some new data.

>> that's right, pe is taking an increasingly large slice of the deal making pie. so far this year almost half the volume has been through private equity buy outs. these include buy outs of health, cyrus one and mcafee investors chasing returns that have outperformed public equities both over the short and long-term horizons that's led to the build up of about a trillion dollars sitting in buy out funds ready to be spent. despite some of the macro risks out there, it's a trend jp morgan ceo jamie diamond actually called out this week. meanwhile the number of private

companies backed by private equity has grown from 1,600 to more than 10,000 those numbers according to dimon. and more regulation could affect his trend and push more companies into the private space as well. becky? >> meaning regulation is the reason for this happening. i always thought it was the conference calls and fickle shareholders >> i think those conference calls are kind of a by-product of it regulation, this idea if you're a public company you have to be more transparent, you report quarterly there's so many things companies can do privately they can't do if they're a public company for better or worse. interesting. he doesn't go into what he means by regulation. he kind of hinted this idea more regulation coming down the pipe

could exacerbate this trend. i do wonder, too, if he's also talking about the m&a environment to have a sure thing in terms of getting a deal done, whereas the private equity you don't have to worry about anti-trust as much >> i don't think the regulators opposed to company getting bigger and making these big m&a deals going to care all that much if it was on the horizon. leslie, thank you. >> all right, coming up, former -- actually a senior fellow at the independent institute and a nominee for the federal reserve, former federal nominee now fed critic judy sh shelton will be joining us and what she thinks jay powell and

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good morning and welcome back to "squawk box" live right here on cnbc let's show you the futures we do have some green on the screen this friday morning, about an hour before the market is set to open becky? in our headlines this morning hp downgraded to neutral from a buy at ubs. they're talking about what they see here in terms of the valuation, the size, the softness they see in the lower end pc market. and expectations buy backs are likely to be slow. looks at the berkshire investment in this which yesterday pushed those shares up by almost 15% and basically you could look at berkshire's record

with apple and you could point out the stock was up 15% yesterday and hit their price target the firm says elevated food inflation will be among several up side earnings drivers that stock up by about 2.8%. then there are crowd strike shares also rising this morning. this comes after the company received assets. >> right now the markets and the fed our guest this morning judy shelton, also the author of "money melt down restoring order to the current system. thanks for joining us. we have seen a pretty stark conversion of some of the more dovish members of the fed recently and i guess you could look at that half empty or half full o

it one hand if facts change and people are willing to revise their opinion and evolve that could be seen as a good thing. i guess someone looking at it in a half empty way might say, wow, what were they thinking before, and should it be disquieting they previously didn't think inflation was much of a concern? >> well, i think it does represent quite a turn around. it was only a few months ago that federal reserve officials were suggesting that monetary accommodation was not only the appropriate policy to achieve our economic goals but also to address and meant an approach that meant we should be magnanimous and zero rates and

large purchases of government security so now i think it's concerning that this approach seems to have fallen away so quickly. you're right, they're conforfronting inflation as no problem, but that, too, suggests that i think the fed's credibility is at risk here not just in its framework but in its ability to predict changes, to diagnose what's happening in the economy and to respond adequately to new developments >> and you do point out that that's not good for anybody if the mystique of the fed and if our confidence and the market's confidence in the fed to be able to orchestrate a soft landing or to be able to stimulate employment, all the things we think they've done a good job on or we've been led to believe they've done a good job on saving the financial crisis,

navigating through the pandemic, if they lose that mystique, that's not good, and that could happen because this is really hard -- it's a hard place to be right now and i don't envy jay powell >> it's a pretty high bar when you say we are going to entrust to a group of 12 individuals the power to dictate effectively the price of capital, the most important price in a premarket economy. so you better believe that they have some kind of omnissance or they're in a position to decide what should be the rate of return on vulnerable funds and i think when they make mistakes or perceived to have backed themselves in position

that are difficult to get out of and could have imposed great harm on economic growth, we reach a bit of a tipping point in accepting the basic logic of central bankers. >> well, the -- the tools that they have to address inflation, and i'm hopeful that maybe some of it's not systemic, maybe some of it is supply chain. that's the reason for it, and therefore maybe we don't have to -- for example, you point out if you really need to go above the inflation rate to get interest rates above the inflation rate, you'd have to go at this point not assuming where we are seven or eight, you'd have to go to 7% or 8 or 9% on interest rates and that's your tool to take on inflation, the flip side of that is a sharply slowing economy and it hurts business development,

hurts entrepreneurs and hurts established companies and so it's a tool i don't even know if it works, but it results in hurting demand and therefore hurting the economy, which is not what we want to do >> well, my concern is that it hurts supply even more than demand, and the problem is the federal reserve is locked into a transient approach, and so from their point of view the only thing they can do to fight inflation is raise interest rates. but given that i do think this is a lack of supply problem you have to say how exactly are higher interest rates going to address that part of the problem? because if banks charge higher rates, there are more small businesses and entrepreneurs who

might have had the will to increase supply, to produce new goods who will have access to capital, who will be able to start the enterprises that will alleviate supply problems, and for the companies strong enough to stay in business at a higher borrowing rate, they're going to pass that along so it's not clear the fed's pools are oriented to fighting the basic cause of this. >> what type of serendipitous events could result in a successful soft landing? i don't know whether -- if things all work out i don't know if it's because of or in spite of the federal reserve

are you still pessimistic we can do this without a voker type recession. >> i'm always optimistic about the american economy and i think it responds well to new developments i'm not a hawk i'm not a dove i characterize myself as a woodpecker and i just keep hammering away on this basic notion that the fed's fundmental responsibilities is to uphold the integrity of the dollar. our money has to provide a meaningful and reliable tool for entrepreneurs. it has to convey price signals accurately i hope that the fed will rely much more on shrinking its balance sheet which would help make the fed less above factor the day the fed quits owning one quarter of all the debt reflects deficit spending, that would be good, so i hope they'll rely much more on the old school

approach i don't like the idea they're going to keep paying banks and hedge funds higher rates of return to keep speculative plain money locked up from entering the real economy >> we're going to go, judy, i guess. do you think november has anything to do with the fed? that's always in the back of the mind, i think. we don't need really tight money going into an election in a mid-term, do we? >> well, the fed is supposed to be invulnerable, of course, but i hope as people evaluate the effectiveness of the government and how well aligned it is with our founding principles that they will be thinking in terms of the fed's new mandate to really be some money and real economic growth. we need to stop this financialization of these people

and get back to real productive activity in the economy. >> very good, okay thank you judy shelton >> i agree 100% with shrinking the balance sheet. we were reading of the open market committee it's hard to call it an open market when 25% of what's being bought is being bought by the fed. and it seems like a more precise tool in terms of the two tool they have, raising interest rates and shrinking the balance sheet that's grown over $8 trillion since 2014, it's the more precise tool to take some of this massive excessive liquidity out of the system and not make it monopoly money >> it's when your stated intention is to hurt economic growth >> that's always been the tool the fed has. >> i know. >> usually you're tampering on the breaks when the economy is growing and booming not as it's starting to come into a decline.

we're in an awkward position this time around andrew okay we are we very much are we're going to get "am joy" cramer's take on all of this live from the new york stock exchange in just a moment when we come back first quick check on the biggest market movers this morning stay tuned you're watching squawk on cnbc wealth is breaking ground on your biggest project yet. worth is giving the people who build it a solid foundation. wealth is shutting down the office for mike's retirement party. worth is giving the employee who spent half his life with you, the party of a lifetime. ♪ ♪ wealth is watching your business grow. worth is watching your employees grow with it. ♪ ♪

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well, another day, another dollar or maybe a little bit more than that yesterday the ten-year yield hit the highest level since we've seen since march 12, 2019. today it's about 2.7%. and that's the highest level we've seen since march 11, 2019. bit by bit, andrew >> bit by bit. want to get down to the new york stock exchange and get jim cramer's take on all that and so much more we've been talking about all moring i don't know if you heard what judy shelton had to say and whether you can land the plane and make it to ground. >> i think they're going to do it i've got to tell you we're getting a series of notes of exactly what happens at the top. paper, there's too much of it, transport, there's two many

trucks prices are going down everywhere, food hasn't gone down yet because of russia, but things rolling over exactly as they should, so i think we'll be okay now, no one wants to say that because it's so much cooler to say it's going to crash. i look at and i'm really boring and i look at the trucking number i look at the paper numbers, and they're peaking just as they should the cycles are rolling over. >> separately curious if you weigh in, i don't know if you were listening to the conversation we were having about the role of esg and elon musk but also the big pension funds and what -- what influence they have. do they have too much influence? >> look, i think if you're younger, no. if you're older, yes and if you're older you're

blind-sided by it. younger people ask is the company a good citizen, and if it is they're suddenly interested and if it's not they don't care how profitable it is i think all you have to do is witness disney i had thought the apology was accepted and i was gravely mistaken as a matter of fact it's almost as if he never offered an apology. and younger people don't want to touch that stuff, and younger people increasingly have the money and younger people are cashing out. i can't stress to you how young people, andrew, they don't want to make money if the company is considered to be -- >> on the other side you also hear from people and i think joe was speaking to this a whole new generation of people, these are people who support bitcoin and the like who also want to assert

a more libertarian free speech approach to this on one side, and then they're also saying we don't want disinformation. >> well, i think, look, these people don't trust any government i don't think they'r and if you're a nihilist, you certainly want to buy bitcoin. if you believe, like stavovan, then own bitcoin one of my favorite characters. >> as long as you're not -- >> -- be brought you don't like doifstevski brought up in "squawk" >> i think you just evaluated the entire conversation to a much more -- >> let me take it back down. how about the nihilists -- >> how about bronski >> we believe in nothing, lebowski we believe in nothing, lebowski! >> that's -- >> i heard him

>> you want "crime & punishment," i'm going "big lebowski." we believe in nothing! >> it's like -- >> the younger people believe in 00 no, the younger people care tremendously the younger people do not want to destroy the environment and if they're not, they're really interested in the stock do they want to make money or lose money they want to help. they think if they buy the stock, it's a statement. and i've given up thinking that that's wrong i think it's right i think younger people are right. >> i think the bigger question is, do you get to vote your own shares or hand the ownership over to somebody else to vote the shares for you i think that's the question -- >> these people believe in nothing. >> let them vote their shares. >> yes i think that's probably the next big movement to allow every individual shareholder to vote the way they want. >> companies are just doing a huge amount for esg, because they want their stocks bought by

younger people, who increasingly have the money and it's very odd, when you see a report about some company that you think just pollutes the heck out of the earth, and they're actually doing something like every oil company when you look at the oil companies, they're like, hey, we got religion >> and they want carbon capture and they want the policies to follow that so they can make money off some of these things, too. >> they're worried about greenhouse gas >> by the way, these younger folks not only have the money, they've got demographics in their favor, too and that is going -- >> i think disney is the classic example. i said, oh, apology accepted and my kids said, are you out of your mind? apology accepted apology accepted frank bruni, you know, you read that piece >> yeah, we will see >> i just think that, i'm with the kids they know more than we do. >> jim, thank you. we'll see you in just a few minutes. >> have a great weekend! >> you too >> enjoy the masters >> yes, we will.

up next on "squawk box," megacap tech stocks having a rough week microsoft down by 2.3%, afl beth, amazon, amd and nvidia all "sawbo ceswn quk x"om right back.

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nasdaq futures turning negative this morning as the yield on treasuries continue to rise joining us right now is tech venture capitalist, steve jang he's a founder and managing partner at kindred ventures. steve, thanks for being here let's talk about some of the big f.a.a.n.g. stocks that we've been watching. because this week has been a little bit of a difficult one for some of those tech names, just because yields continue to rise we kind of thought tech stocks had gotten used to higher yields, but every time you see a big pickup, it comes back. are these going to be the stocks that actually lead the recovery, or will they have to get out of the way for some new leadership in the market? >> i think this is a u-shaped recovery it's a when, not an if question right now. we have russia/ukraine, we have the fed playing a game of

charades with economy. but we know that when the recovery happens, i'm certain that it will be the big tech companies. the entrenched involvement in the economy, on every level, from small businesses to large businesses to jobs, it's these five companies, plus microsoft i think what's interesting right now is that there are pockets where there's a lot of value and a lot of opportunity for growth. so crypto web three. so crypto, public liquid tokens. those assets number two, early stage venture. we're seeing a ton of excitement still, and lofty evaluations with that in crypto with three start-ups. on the growth side in tech, in private markets, it's an interesting situation right now. a lot of the crossover funds that are propping up higher valuations are in the private markets buying these big tech companies. it's a shopping sale they're on sale right now at 20%, even 30% discounts. and so we're seeing a lot of

those crossover funds that were historically creating those lofty valuations in the private markets, they're jumping into the public markets and buying while the market is volatile >> does that mean that there is a buying opportunity in the private markets right now? because those had gotten so boosted over time as people -- >> absolutely. so, you know, pre-ipo valuations are obviously directly tied to the ipo market the ipo market in technology is pretty much dead this year i don't think it's going to come back in time for the fall, so let's just say 2022 ipo market debt, 2023, let's see what happens. so right now, it's a sale right now on late stage growth a lot of the crossover funds, a lot of the nuchblds that you know well. and we're also seeing on the crypto side, a lot of excitement that's really been insulated from all of this market

volatility on the macro level at early, mid, and late stage the crypto web 3 area is pretty much untouched as far as we can see in our investment activities at early stages. another interesting point on the liquid crypto asset side with bitcoin and etheorem and assets like that, you know, it's trading still mostly like an equity rather than a currency or store value, but it's starting to change. we're starting to see moments where it's diverging from the public equities markets. >> steve, we're about out of time, but if you think this is an opportunity that hasn't been affected by this, what did you think of peter thiel's take on his enemies list he has warren buffett, jeremy fink, and jamie dimon on this list they said they don't like crypto and don't invest in it he says it should be at 100,000 without them do you >> jpmorgan is investing heavily in a crypto team their entire workforce is betting on crypto, as well

i recently went on a jpmorgan global conference call to speak to a lot of their shareholders and clients about crypto so i think there's a lot of political bluster at the top of any firm, on both sides of that aisle. and i think the reality is that everyone is planning towards this future. >> thank you for joining us today. it's good to see you folks, that does it for us today. join us next week. it is time for "squawk on the street." good friday morning, everybody. let's give you a look at futures, as we head into what is the final trading session for the week looks wlolike we're going to haa slightly higher open can't really tell much these days, given the volatility let's get to our road map this morning, though. it does start with the softening retail engagement. and that leads us to shares of