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

robinhood, which will be sharply lower, this after a key analyst downgrade. we're going to talk about that also what would a day be without talking about elon muck. tesla's gigrabit market crush. and finally, is inflation fueling a corporate ad market slowdown details for you there, jim >> good, because i don't have that >> you saw some of the names yesterday. let's start. take a little different tack here start with some research, start with goldman sachs and that downgrade of robinhood to sell they were the underwriter, i believe, as well, way back when this company became public not that far back really, i kid. what are your thoughts on this you've been focused on this name for quite some time. you've had a variety of different pieces of advice >> initially, followed it when

it was private 22 million people, really very exciting david, this piece is devastating. because it basically says, they're nowhere near making their numbers. there's no real valuation that they can prop up on. unlikely to reach profitability in 2023. that's not this year, that's next you're talking about maybe a 2024 story it seems like that people aren't -- they kind of have found the market, they enjoy it for a while, and now they're -- >> well, when you have adjusted ebitda margins of 2% that was last year, and you do guide to as much as 15 to 20% growth in adjusted expenses. it's not easy. >> no. and, you know, the company has gone quiet they used to be very boisterous, telling you about how many young people liked it, went in and got excited. and then i used to argue with them, listen, a lot of your guys are doing options and you'll get crushed if the market ever goes down of course, they refuted that, but numbers -- you are what your

record says you are. and user growth has remain depressed. upload/download, cool. i'm not saying this is a flash in the pan i'm saying that the joy with which younger people approach the market, particularly the options market, that may be a thing of the past. >> why is any of this a real surprise despite the trading platform, i don't know if there was ever a great deal of consensus on its ability to ever make a great deal of money. >> you're right. you're right i remember when it became public and there was tremendous enthusiasm in the 30s and it went up, and it's really just crashed, basically and i think a lot of what happened, people that liked the name, whether it be a trager or webber, people were buying the stocks of companies they liked >> right >> rent the runway you know -- >> the old peter lynch approach. >> but they didn't look --

remember peter lynch, you were supposed to start there. you weren't supposed to end there. the wich fe likes the hanes wit the eggs, but they didn't pull the file i remember when dave portnoid, they were picking names out, that was emblematic of an era. but that was not how robinhood started. robinhood started with, i'm very interested in seeing, maybe ge they liked the single-digit stocks but they kind of lost their way. they don't really -- do you get the snacks, the little memos >> i don't >> they're very good, like a high school production, which is excellent. i was in my high school production i was in "guys and dolls," you know, kind of that level >> you were dressed for it the other day, but not today

>> no, but i was also -- i did not get into brigadoon, i was cut. but their high school production thing that they put out, it's very enjoyable it's called the snacks or something and it's usually about two days old it's very good it's like robinhood himself in tights >> oh, yeah, mel brooks. >> there's nothing wrong with it >> by the way, great book, his book, "all about me. >> really? >> yeah, great really great read. >> how about carl reiner >> of course, we love carl reiner what about the franchise value, overall? >> it's worth more than that fabled weekend >> -- to get the profitability -- >> well, they have to have a structure. >> -- where they are still amassing a base of clients that are going to be -- >> they're not amassing a base of clients anymore >> they're not >> no, it's not going up as a matter of fact, the daily average numbers versus swab, at last very good example, exhibit

19 of the people versus robinhood, does talk about how in exhibit 20, 35% of robinhood's customers had subprime credit. now it's probably worse. subprime credit and they're in options. and they're borrowing. now, to robinhood's credit -- >> that's -- he's got nothing. let's go from robinhood -- let's -- >> that was not -- that was not a positive thing if you're on the podcast, you might have thought that it cut out. you always do that thing for the podcast, after we do the mad dash >> i know, i know. >> so people are thinking, they blipped it they're thinking i said curse words. >> what would you rather talk, tesla or peter thiel >> wow >> and crypto. >> i like a positive story i like tesla >> you >> tesla gets you really good

numbers. i say we do tesla as well. i'm going to overrule our producers, basically, we can do that, because we're sitting here at the desk. although we do want to talk about peter thiel and those incendiary comments. >> those were over the top >> but for elon musk, what would a week or a day be without mentioning mr. musk, more because of that cyber rodeo they had last night he spoke at a grand opening event for the company's $1.1 billion factory near the austin airport in texas he said, tesla ameims to produce half a million model "y" vehicles at that production and start cyber truck production next year and he talked about the importance of scale. this is why scale matters. in order to make a real difference, a really big difference to sustainability, we have to make a lot of cars, we have to make a lot of stationary packs to transition the world to sustainable technology as quickly as possible.

>> quite a look he's got working there. >> he's henry ford -- >> that's nice to hear something we don't talk about as often, the hours for an electric vehicle of production versus volkswagen, for example. i think volkswagen, i've read this in print, volkswagen ceo talks about, it takes us 30 hours -- it takes him ten for one vehicle. the efficiency in electric vehicles is obviously less intensive. they have robots making them, all right? they've got -- >> yeah, no. he's got it down but that's, you know, very important in their ability to obviously continue this scale. they're talking about -- >> a million -- 1.5 million perhaps this year or more in terms of sales coming out of a quarter where they sold about 310,000, despite what were supply chain issues. >> in china -- >> china shut down and he still made the numbers >> yeah. >> how does he do that >> i don't know. >> mao would have been so proud, but not xi

because everything is by china, including their lousey vaccines that don't work. >> to that point, it is worth also mentioning -- >> i don't work for pfizer >> that continues to add even more strain to the global economy right now. that shutdown in shanghai, "the journal" reporting this morning on not just tesla, which has been the factory there has been closed since i believe march 28th but apple, and the complexity of the supply chain, even prior to the pandemic, really, when we were in the and continue to be there there's not a lot going on right now in the factories in shanghai and/or that region

>> xi better get it together he cannot shut down. he can't -- look, we could not shut down our country for five weeks without southern governors -- >> zero-covid policy doesn't seem to be one that's working very well. they have 20,000 now a day in shanghai >> they're unrealistic dr. gottlieb has been talking about a huge number of people of people who have not been vaccinated and china's all-powerful they're as all-powerful as russia, it turns out to be they're only all-powerful in the minds of the mainstream media. >> they have a much more economy than do the russians >> without the incredible armani jackets that you have. >> thank you >> i would lose the sweater, actually >> i may get rid of the sweater, even during the court of the shows. >> that would look really cool

>> italy and texas versus russia >> do we really have to discuss russian history gep. >> the ukrainians are calling for tanks to go against russi that's the nightmare if ukraine gets to a tank war with russia, russia winds. but they obviously are not winning. they won't win in kharkiv, but 100 miles from carkharkiv, and was the greatest russian defeat in world war ii. >> world war ii was 80 years ago. >> putin cares about -- >> he reads books. >> -- referring to then is the same one as now. >> they have tanks all right. we'll get to a lot more here, including talking a lot more about stocks this morning. we'll get to those peter thiel comments as well as we referred

to warren buffett not particularly in nice terms let's give you a look at futures this morning as you see, we're kind of coming off a little bit there on the dow. we'll see. it's been a downed week so far r,he "squawk on the street" so fa aad hey businesses! you all deserve something epic! so we're giving every 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. and every new business that just opened! like aromatherapy rugs! i'll take one in blue please! it's not complicated. at&t is giving new and existing business customers our best deals on every iphone. ♪ ♪ the pursuit is on. the pursuit of outperformance at pgim. with deep expertise to outthink across multiple asset classes, actively managing investments in the world's public and private markets. outscale, with the resources to serve 1,500 clients

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>> you didn't play it. you played it and then you didn't play it >> is it a faber report?

>> yeah! i want to talk about, you know, you may have noticed this yesterday. in fact, you had an interview with the ceo as well of conagra, jim. >> there was unexpected weakness, i think, in some of the old, let's call them, media companies that are still reliant to a large extent on broadcast advertising. and some of that weakness may have come from conagra one line in the press release yesterday, in which they said their advertising and promotion for the quarter increased 11.5% to $65 million jpmorgan came out with a note saying they expect another stepdown in the fourth quarter of 2022 versus a year ago, and a step up in that kind of spending it may have been specific to con agora. and you know you had a long discussion >> they do own certain aisles in the supermarket. they're doing a good job but they were trying very hard to not get crushed by inflation. the idea of where they're

getting customers is hard. because it's not a direct-to-consumer story it's more of a millennial story now. but that's very interesting. >> yeah. and you know, these are always concerns my understanding is that the ad market is still growing. perhaps mid-single digits here in the u.s., versus stronger growth in other markets. the comparisons may be more difficult year over year, as they are for so many different parts of business right now. but it signaled a concern. and you saw the weakness whether it was disney, our parent company, comcast, who was not down on concerns about cable, but nbc universal paramount, discovery >> although, bob backish, he could come up with other ways to make money >> so much of the focus is on direct-to-consumer but the ad business a still an important one. >> can i just say that the google return on investment case

is perhaps the greatest i've ever seen in advertising and if you don't put money with them, i think you just they will give you a report exactly of where your people are buying and what they're doing. and you just throw money at them and get more money back. it is the most insane positive return on investment i've ever seen in all the businesses that i've run >> even if there is a slowdown in traditional broadcast ads, you don't believe that alphabet will see any diminish -- >> no, the money is going their way. it's so spectacular. and by the way, the reports that they give you, i mean, you feel -- you know advertising is like, you know, half of it works, we just don't know which half google, 100% of it works i look at -- >> and that goes to why their numbers are multiples of all the ad spending for all of these companies. >> it's not nighttime saturation it's daylight precision.

>> right i did want to also use this as an opportunity to talk about discovery in particular. because this is the last day t t that at&t and discovery trade. they'll have 2.4 billion shares outstanding. remember, 1.7 billion shares, roughly, are being distributed to current at&t shareholders and one of the key questions is, how many of those shares will be immediately sold and, you know, any number of people are right to figure that out. jim, you know, index fund to index fund, you may have some that have to sell, but you'll have others that have to buy so it cancels itself out there are income funds that own about 200 million shares over time, they would be expected to sell discovery it's not an income play, as at&t might still be they're 70 million shares shore.

there also are -- >> those would be short versus getting stock. >> there are 70 million that are setting up -- >> additional shares short against -- >> i don't know -- yes, there are some, but welcome or betting on this will pressure the stock. but the most important is the retail investors of at&t, as many as half of the 1.7 billion shares being distributed will go to retail counts and the question remains very much unclear. how many will be sold, sold quickly. how many will be kept. and that gets to this concern of how much stock will get to the market before you settle out obviously, the enterprise value, far larger than the market value, given it's only a $23 stock. and i did note yesterday, and this is the key, it's like the first 100 days for zaslav will be very important. and this is partially some of the key here, jim, is what he's going to do.

and i did notice from the announcement yesterday of their future leadership team, this one sentence, cwhich i thought was interesting. the new leadership team draws on a diverse set of leaders from both organizations and provides continuity and creates a flatter organizational structure to drive creativity, accountability, and collaboration. you don't often see that accountability -- >> numbers -- >> and meaning perhaps that there's a real opportunity here in terms of taking this asset on from at&t. a lot of the layering, de-layering, less clutter. maybe more bloated we'll see. >> look, it could be like when i worked at fox, there was roger ailes and then there was you and then there was no one else other than the makeup people >> there you go. >> by the way, when monday -- >> -- fired you -- >> that was the least of it. >> up next, it's jim's mad dash. we'll also count you down to the opening bell we've got a lot more "squawk on

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the only person who's allowed to wear jeans to the stock exchange >> they changed the rules just for us they took the sign down. >> totally >> the sign is no longer at the door >> did not know that >> we may come in in jeans tomorrow >> that's right. >> i've been doing that for a while. >> chip had a good quarter >> even macy's, which i think is having a decent quarter is going down vf corp. is -- >> let's get to your -- >> i'm sorry i was out of line with that. >> he gives me a hard time about wearing jeans. >> so get this

one of the most important analysts whose work i've loved for three decades is a guy named ken -- he's at bank of america, merrill lynch. today he does what i've been waiting for. he downgrades to transports. he downgrades union pacific, which has been one of the greats, and has powder river coal and coal is going higher in price. he downgrades schneider and downgrades u.p.s. which has fallen from 230 and 190. this is it this is the end of the cycle >> jim, we talked about this, i think, on monday >> and then you talked about it -- i got it from uber freight. >> which has got -- the best look -- >> and it's not like the market hasn't sort of been sniffing something out. >> david, you know, the stock was at 190 >> they added more trucks, trains, they added everything.

things were going up, up, up, up and you know what, david, at the peak, everybody has got all the trucks you need and all the trains you need, but don't have the cargo. because there isn't as much demand we are at the peak congratulations to jay powell. round one goes to him. >> because he's engineering a soft landing >> you think it's soft >> well, look. i can say it's going to be a hard landing >> meanwhile, what do you do with these stocks. it's not union pacific, it's fe fedex. >> it's 220 down to 190. union pacific still has some room to go down. fedex has got this great european initiative that could help, unless russia, ukraine, just gets worse. union pacific, unfortunately, has to be sold >> it does >> yeah. >> norfolk southern has to be sold they have some good coal they're all good companies they all have a big run and ken

hoekstra is it it's good to have the axe. i don't want it buried in my he head >> yeah, we're a podcast true in fact, we want you to always remember that as we get close to an opening bell. listen to and follow "squawk on the street" opening bell podcast. we're back after this.

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less than a minute to go before we get started with final trading session of the week. haven't gotten to oil yet, very important in the overall move in the markets. >> i need your help. shell had to shut down russia. >> yes, they are shuttering their operations >> they off-loaded great permian assets to conoco, right, ford to be able to reduce their carbon foot footprint. is their carbon footprint in the

eyes of the governments they are regulated by now by the fact they don't have russia >> i would assume it might be. >> then they have to buy permian assets back or permian assets period >> why do you believe that >> they have no growth without russia they need growth so i'm saying there could be a wave, a wave of m&a in oil from bp and from royal deutsche >> i don't know, jim >> you don't like -- >> bp has to weather the write-down will be -- >> i don't know, it's like, that's not -- that's not like not the way -- could you give me a little something here? >> i'll try. let me quickly do what we've got to do here you heard the opening bell that was footwear retailer designer sbrantdsing its 30th anniversary over at the nasdaq the parkinson's foundation

let's get back to it what's your focus on bp? what are your thoughts yesterday, i thought that you said it might be time to buy that >> i think when bp does it, they announce it -- >> the write down? >> yeah, you have to wait for that, but bp has good assets i'm thinking about what what i'm talking about is the royal deutsche side. if they were worried about it, they now don't have to worry, so they can buy something i don't know whether our regulators -- >> there's different ways to approach it. shell, listen, you buy permian, you're taking stuff out of the ground that eventually produces a bunch of carbon. >> some of the european companies are embracing what is a different strategy, which is to embrace renewables in the sense of making them a part of their portfolio.

whereas exxonmobil has said, no, that's not our kor competency. we're not interested >> i'm trying to figure out what they're all going to do. and i think because of your -- >> don't necessarily think that europeans will actually buying more assets that evolve getting -- you've got to lee a lot in the ground, or that great piece about what battery companies are doing well did you see that the uk is kbrags nuclear >> yes, i did. >> what do you think of that >> i think that makes a lot of sense. at what point do you decide, i'm going to open the file on ge there's two canadian nukes coming on. the uk wants to go nuke. it might be happening. >> what's the timeline for building one of these new mini plants >> it's not really clear how quickly they put up the small form factors i have to do more work on that >> but it is interesting, and

you note that there's so much discussion about these so-called energy transition and particularly in light of russia's war against ukraine and what that has meant for splice of oil and natural gas, but the lack of commitment to nuclear in the world, and the fact that there's a lot of discussion about it meanwhile, france has always continued to be a nuclear-powered country. and 1976 -- how many have we decommissioned, you know and how many nuclear power plants have been built >> but we've extended their lives, but ever since three mile isle and the problems at southern with giant overruns, the there's, nuclear is not in favor here >> but why isn't it, though? it's clean >> because fukushima and three mile island. >> there's obviously nuclear waste, but it would appear that

there are ways to deal with that effectively. >> absolutely. but i'm just giving you wanted fukushima, was a very important event in the lifestyle of the nuke >> although japan now, public opinion there is changing, too >> because everyone is hostage to terrible fuels. we spent 38 billion, the eu, over so far to russia since the war began. >> i'm sorry, we what? >> $38 billion to buy the natural gas. so the eu is sending them $38 billion so they can finance the war -- >> it has not yet gotten to the point where they're willing to -- and they can't their economy will shut down in europe if they truly just stop all the imports. >> -- when we up the sanctions, they're meager against how much the eu is paying russia for nat gas. our sanctions are almost meaningless versus what the russians get from europe but no one talks about that. do you think president biden is

going to say something >> well, he's trying to figure out a way or we're trying to figure out a way to get more natural gas to europe over time. >> that's good those plans take only three years. >> you've got the private company, freeport, not freeport mcmoran, freeport, and building a train, so to speak it takes a long time these are multi-billion-dollar projects to allow for the export of lng >> meanwhile, the sell-off of the nasdaq continues as if nothing's hap nothing's happening. >> what does that make you think, jim >> i think that means we should go to hp >> that's it >> i think hp sales are analog, but warren buffett bought 11% of it and the analysts are starting to downgrade it. they're actually looking at the numbers. warren buffett is looking at cash flow. and cash flow is phenomenal. so --

>> but -- >> this is a way -- it's the same way to peter thiel segue. >> i knew you were and kind of reluctant in some ways, he used such incendiary language, but it is a story that lots of people are following. peter thiel at that bitcoin conference, we were covering it closely yesterday in miami, presented a slide show and obviously it did include criticisms of a lot of different financial opinion leaders who he claims are trying to stop the growth of cryptocurrency take a listen. >> enemy number one, i think he sort of -- i think the sort of sociopathic grandpa from omaha is perhaps the most honest and the most direct in it when they choose not to allocate to bitcoin. that is a deeply political choice and we need to be push

back on them we need to say, you have to get onboard on this. >> the. >> it's interesting, because it does also raise something. you were talking with the squawk box focus about, sort of this idea of woke, he's using it a lot, and he's, you know, people using it a lot, woke corporations, sort of lumping it all in there but i'm not sure his criticism may be perfectly valid. there is a generational gap to a certain extent in the willingness to embrace bitcoin and the other digital currencies but his language is kind of incendiary >> i thought it was disconcerting, because warren buffett deserves respect and he may disagree with peter thiel, but he's not a tyrant, by any means. he's never said that you have to be -- do what he says. as a matter of fact, he's quite open saying,listen, you don't have to do what i say. >> that seems to be almost like the mentions that i have in

my -- it just seemed very unfair >> yeah. and i used to have peter thiel on when i was doing the system with larry kudlow, for kudlow and cramer peter thiel is an excellent thinker. >> he is >> on the old sidequawk box, hea ant great hedge fund manager >> a great investor as a venture investor >> you get in front of crowds like that and you get excited and really exuberant i don't know if he's going to apologize, i just feel like -- >> that was all set up -- he had a slide. it's not like that was in the moment >> it was a rally. army versus navy, day don't have anything good to say about navy before the game. look, i'm not justifying it, i think it's wrong >> we can have the conversation

without calling people psychopathic, new york bankers, which we all know that's code for. l let's move on, jim you mentioned the weakness in the nasdaq overall there continues to be concern over day identify talked about the whiplash yesterday was, don't worry too much about the consumer. despite what you've seen from a number of the ceos we've had join you on "mad money." >> cory barry, who has an excellent daily wrap and a visionary wrap about best buy. i disagree i'm going to bridle at what they're saying best buy is at nine times earnings with a 4% yield was it revelatory?

wow, maybe toll -- come on stop being as stupid as you are. once we get mortgage rates to six and the number of cut that happens, you have to buy toll. so these people are fighting the last war they think that the market hasn't noticed that! hello! the market hasn't noticed that i mean, hp would be dramatically lower if it weren't for the sociopath -- how could he have been said that about warren buffett? that was horrible. look at macy's macy's is at five times earnings, right? it has a lot of optionality. it happens to have an absolutely terrific ceo it's not revelatory that people think that business is going to get very bad it's not >> so your point is simply, this has already been reflected to a certain extent and stock prices have come down -- >> they're really worried about the consumer macy's is at four times earnings do you think the people that worry that stock is not worried

about. the short goes up every day. oh, you know what, i'm worried about the consumer well, guys, the time to worry was a year ago i'm embarrassed by them. not as bad as peter thiel, who should recant those very -- >> that's his m.o. that's his m.o >> david, what do you think about cvs? >> cvs >> charlie victor. >> what do i think about it? >> i have a theory >> i still am waiting more them to unlock the ice cream sandwiches at my local cvs i want them. it's 9:00. i need my sugar. i'm knocking on the darned cabinet zst and it's locked. what am i supposed to do?haageni can't get it >> we are now embracing a regimen that you have to have a shot every four months that means you'll return to cvs and it could get a second wave

and aetna could get a second wave so stay there. as there's a company that's hit a 52-week all-time high today named sentee that's not important michael nydorf took away he took advantage of obamacare to give a lot of people health care he ran a company splendidly and he was great man >> passed way at the age of 79 after a long illness and you were a big supporter of his. had him on all the time. >> i just am -- sometimes there are people, i mean, when they had problems, race problems in st. louis, he's the first to be able to rush to it, try to help. and i can't believe he's not alive. i just can't believe it. >> our condolences -- >> to his family, who lost his daughter just a really great guy. i talked to him quite a bit off-camera about what has to happen in our country.

and i'm just going to put it out there. he said, had the republicans allowed price adjustments for areas that major hmos would not write insurance, many millions of people would be covered but they wanted -- this is michael -- they wanted the affordable care act to fail. because it was keystone to their campaign and he thought that that was almost criminal. it was criminal. good man >> always hard to move on -- >> i have to say, my staff knew -- >> no, i know. i know you were a big -- >> and he lost his daughter -- it's just a sad time >> i do want to end, though, jim, just on some other news we followed, obviously, jetblue and spirit jetblue is going to have an opportunity at least to present to spirit's board of directors and tell them why it should be allowed to potentially be considered and/or why it's bid

is better than the deal it already has underway with frontier >> okay, well, tell me, why doesn't nina -- >> first of all, it's the doj that would rule on this. >> not -- >> yes >> oh, it's over >> you and i have made the point, there seems to be a great -- i have to say, there's consensus here, perhaps not shared in the jetblue board room that, no, it's not going to happen you're going to get challenged -- but this gives jetblue an opportunity and we heard from the ceo the other day to make its case to the board of spirit to say why, in fact, what it's trying to do to mitigate the concerns that we have about an anti-trust problem. that that would bring. but you're right, many people just defaulting to, no way >> this guy is a total heavyweight. he's in there to stop -- to create competition if anything, he needs to break up the murders that occurred under obama. >> that's not easy

i'm just saying. >> david, who are the lawyers involved, do you know? >> no, i don't i don't. i haven't looked >> you should. >> i know, i should. >> because they're going to make a lot of money for nothing >> you're right. goldman sachs, jetblue -- sherman and sterling is jetblue. >> how about the equity capital markets item you see that piece saying, don't even bother. there are no equity capital markets for the first quarter? >> that's funny you mention equity capital markets bob pisani, you cover those pretty closely, particularly when it comes to new issues, which have been far and few between this year. let's get over to bob right now. >> it's been a horrible first quarter. next week, i'll have something to say about what the ipo market will look like in the second quarter. people are pretty cautious right now. i'll be talking to people at the etf conference next week in miami beach about that meantime, starting the week kind of like -- ending the week a little bit like we started it, with energy still in control

you're tired of seeing energy as the leaders or metals, xme that little etf has attracted enormous amounts of inflow in the last few months. banks are showinga little bit better performance today, but they've been awful generally on the week consumer staples have held up really well, defensive sectors and those semis are not looking good the smh is not far from a 52-week low, believe it or not i've been saying all week that the stock market is acting like we're in a late-cycle stage of the economy. what does that mean? that's the stage prior to a recession. so you're selling off this defensive sectors, dramatically. we've been talking about the transports, all week it's the number one topic. they're down 6%. semis are down 5%. banks are down almost 5% the home builders, 4%. there's a lot of new lows in the home builders yesterday. and industrials are down 2%. this is what late cycle stock market looks like. you sell off the defensive now. i know jim and david were talking about bank of america's downgrade of the transports. and yes, we're seeing those

transport stocks down again today. thanks for the notice. a little bit late, guys. we've been noting all week that the transports were at 52-week lows the market has sussed this out a long, long time ago. the new low list was a lot of transportation stocks this week. mr. hexter over at bank of america saying prices declining rapidly. these shifts could signal a downturn in the economy and lower demand would have been nice to hear that a few weeks ago it's buy low, sell high. but nonetheless, there you've got your downgrade and we'll pay attention to that. in the meantime, what else is late cycle behavior? you hold on to defensive stocks and you hold on to commodity stocks so look what's going this week health care is up 3% consumer staples are up 3% utilities are up 2%. reits up 1%. there you go, defensive, interest rate sensitive, commodity stocks like energy and medals doing well. again, that's all late-cycle behavior for the stock market. if you take a look at the new highs this week, well, it's

littered with basic defensive names and utilities all over the place. we've got walmart at a new high, hershey's, duke, there's a whole pile of various utilities at 52-week highs. again, late-cycle behavior here in the defensives is what's leading the market to -- at new highs. meantime, in terms of earnings, stills early but i want to point out wd-40, which is a real old stalwart and a favorite of the old school crowd, like me they had their earnings out. they were pretty good. but again, usual story about the challenging inflationary environment. they have a lot of significant commodity inputs they talk about significant gross margin determination they make a lot of money 55% gross margins, and they drop to 50% that's a lot 500 basis point decline in the gross margins. and they say, look, we're trying to get it back, right to raise prices, but they can't raise

prices fast enough david, you're going see this a lot. thi this was -- wd-40 was briefly one of the darlings of the pandemic it shot up briefly in 2020, but it's leading the charge in what you're going to see in some of the guidance for earnings. david, back to you >> such great points, bob. figures into our discussion earlier as well about advertising spending to a certain extent, which sometimes can also fall victim when you're not able to make up margin the way you just described with wd-40. we'll see you later, bob bob pisani >> conagra is telling me that we ought to be little -- let's say our answers may not be perfect they are saying to me, they dialed back their fourth quarter a&p, so continuing to decrease demand in the short-term makes that worse >> they're more about having

stuff on the shelves >> which is another whole issue. >> that you don't advertise for stuff that you can't sell. >> i wanted to pinpoint that ou. >> glad you did. >> you can get in on the cnbc investing club and get updates like that from jim just point your phone at the qr code on the screen and it will take you right there. you right there. let's get to a bond report before you take your very quick break for you. of course, treasuries are very prom prominently at this point. and if you own a bond fund, we don't talk about that enough things aren't going great. down 11% in my bond portfolio. >> you have to be short-term. >> why because of that. two-year note, 10.713. we'll be right back.

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just enough time for you to tell us what is on "mad money" tonight. >> growth at a reasonable price, that is corona and much more and i can't wait to speak to the bill moons very good. >> without a doubt cannabis too. >> i was going to say we'll ask about canopy which has not been good. >> i'll see you monday try to have a relaxing weekend. >> yeah. it's okay. >> when we come back, rough times for the transport stocks we'll ask that question, is the slump going to continue. it certainly is rit w. ept reghno

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e*trade now from morgan stanley. welcome back to "squawk on the street." rick santelli here live with the last breaking news of the week wholesale inventories and sales for february on the inventories we had a mid month read of up 2.1. the final read zooms up to 2.5%. this is really a strong number

as a matter of fact, 2.5% equals the cycle high which was december of last year at up 2.5. and at the end of the month we get our first look at first quarter gdp and inventory building is going to add into that number especially considering how supply chain issues have hurt gdp and on the sales side, up 1.7%, that is over double expectations but it does follow a revised up 5% and the reason that is important of course is because we want to see healthy sales but we know there are some that are impacted due to lack of inventory but these numbers are powerful and indeed i believe it is the 30th of april when we get our first like at first quarter gdp and we'll remember how strong some of the inventory bills are. david, back to you. >> thank you, rick and good friday morning everybody, welcome to another hour of squawk on the streit i'm david faber, with morgan

brennan. carl is on assignment today. everything is in the red but the nasdaq, morgan, down 1.3% as technology, let's call it broadly speaking continues to suffer >> yeah, it is been a rough week in general for those tech stocks we're 30 minutes into the trading session, here are three big movers that we're going to watch this friday morning. we're going to start with robinhood sliding after getting downgraded to sell from neutral at goldman sachs and analysts there saying consensus estimates are too high shares are down 7.5% right now plus another wall street call to watch. kroger getting upgraded to buy from neutral at b of a citing elevated food inflammation shares are up 4% we'll end with twitter, again. planning to host an ask me anything session with elon musk. the q&a is said to be a response to concerns among company employees about musk joining the board.

shares down about 2.5% to 3% david. >> that is an interesting session as well. speaking of elon musk, the tesla ceo speaking at a grand opening event for the company new vehicle assembly plant in austin, texas. black hat, sunglasses, phil lebeau has por for us. >> hey, david. quite a look from elon musk last night. he made a grand entrance for the official grand party, the opening starting of deliveries at giga texas by driving out in the very first tesla roadster that was ever built. this is way long ago in 2009, 2010. after he drove out, he got to the real issue that people want to hear about. the growth of tesla and the texas giga factory the plant's capacity, 500,000 vehicles annually. now they're not going to get there immediately. they have to ramp up production which is the plan for giga texas. you have the model y and they will be shipped primarily to the

eastern half of the united states there is huge demand, pent up demand for the model y so there is no problem and then you have the tesla semi and then the cyber truck which is expected to come next year here is musk talking last night about his plans for the truck. >> it has been in a test a couple of years. but wore going to have this for you next year and it is going to be great and it is going to be one kick ass product after another starting next year and then some cool stuff that we haven't even talked about >> but i'm sure we'll hear about it once we get to production, which he said again will happen next year. tesla's annual sales this year, the estimate is for 1.47 million vehicles musk said last night if you look at the last 12 months, they have done over a million vehicles in sales and so many think they'll have a production rate of 2

million by the end of the year long range goal, he thinks they could get to 20 million vehicles annually for a point of reference, as you take a look at shares of tesla, yes, they report their first quarter results late -- in a couple of weeks, april 20th. but i went back and i looked the most vehicles i've seen manufactured by an automaker, you haveto go back to volkswagen ontoyota in that '0 to '08 range in those years they built something like or sold something like 11 to 11.5 million vehicles to get to 20 million vehicles some day, that would be unbelievable in terms of blowing past what anything that we've ever seen from any other automaker. >> i mean that is really great context there, phil. and it raises the question, is musk putting projections out there and he's known for putting out really big, fantastic projections in general but is he putting them out there because their manufacturing these vehicles differently than

we've seen from other automakers in the past? >> well, yes absolutely and he talked about that last night. look, it is a far more efficient method of manufacturing that they will be using at the giga factory in texas you will have one piece casting for the back third of the vehicle or the back half same thing for the front half of the vehicle. just one piece as opposed to a different quarter panel and then the battery pack is structural it is not even a pack. typically you have automakers build a battery pack, they put the back on top of the sled, the sled is attaching the two halves vehicle together that is not the case here. the battery will be structural and will be holding the vehicle together makes the vehicle lighter. they believe that it will make it a much more efficient method of manufacturing so there are key differences in how tesla approaches manufacturing verse you other automakers >> yeah, and phil, that get to

those positive on the company prospects, one of the reasons why. compared to a volkswagen, which you mentioned, their manufacturing of combustion engines right now for vehicles but the efficiency for tesla is multiples in terms of hours per vehicle. >> correct yes. and the reason is because it is a much more simplified manufacturing process, yes robotics plays a role in that but you have so many more parts that have to come together with a combustion vehicle than for a battery powered have and the sim plivification of the process and when musk talks about the machine that builds the machine, he's creck, that is really part of the secret sauce behind the efficiency and the gross margins that we're seeing at tesla certainly helps that they have the prices that they could be selling these vehicles at,

morgan but there is no doubt, this is a company that has become more more efficient over the last several years. >> i'm curious to see how this optimist robot fits into thissin terpally at tesla. thank you. we'll sticking with the paypal mafia but another name we're going to focus on comments from peter thiel who made them at bitcoin 2022 in miami he had some harsh words for those he views as holding back widespread crypto adoption here he is talking about warren buffett. >> enemy number one. i think he sort of, i think sort of the sociopathic grandpa from omaha is -- is, you know, is perhaps the most honest and the most direct in it. when they choose not to allocate to bitcoin, that is a deeply

political choice and we need to be pushing back on them. we need to say you have to get on board on this >> so with us now, crypto and block chain investor william quigley and the co-founders of tether and worldwide asset exchange great to have you back on the show i do want to get your response to those comments. peter thiel, as usual, did not hold back in his presentation yesterday. and i wonder how you see it? we are seeing more institutional flow news bitcoin and other cryptocurrency assets but when thiel lays out as something deeply political and the fact that this is technology that is very disruptive to the new york city wall street banks, to paraphrase him, how do you see it >> well, i see it similarly in the sense that up until very recently the banks globally were not friendly to bitcoin or

friendly to crypto overall i've been in this industry now for ten years. it was very common, not even two years, for banks to cancel your account. it was very difficult for corporations to secure any kind of banking almost in any jurisdiction if you said you were a crypto company. now i do think, in the last two years, it is become much, much easier i would say that it is even the case now that there is a lot more institutional interest in bitcoin and the broader block chain asset class. so while i feel peter's pain, i think it is changing and it is changing really rapidly. >> one of the other things he said that the real competitor for bitcoin is not edgerum, or not even gold, it is like s&p 500 and the stock market as a whole. i want to get your reaction to that as well because in some ways i think that sort of speaks

to the newer correlations emerging as we have seen more institutional flow news that asset class. >> yeah, i don't know i if i would call it competing. would you just say people who are interested in exposure to any sort of technology that is going to be instrumental in almost every industry on earth, they have to have exposure to block chain. whether that is bitcoin, ethereum, any other block chain related technology it is going to be important in virtually every industry whether it is identity protection, it is consumer products which nfts are pioneering and the 200 video gaming industry is seeing activity in block chain based games so it is starting to happen would you say if there is one catalyst for broad interest across many industries that i've seen in the last year, it is the

nft craze. as nfts really touch the consumer, people started to finally understand the value of block chain and the value of block chain based digital items. it is not just for payments. if you focus on payments, bitcoin not great and ethereum bad because the fees are so high in order to do a transaction and the delays are not what you would expect for typical e-commerce transaction so you would want to use a stable coin. stable coins will dominate global cross border trade, they will be used probably by every significant global economy by 2030 and those will be block chain based. china will be the first big economy to do it but the ur.s. and many other countries will follow. >> mr. quigley, i'm curious about your thoughts about thiel's approach here. he seems to be making it a political statement to support bitcoin and/or kind of

demonizing its opponents in the same way using the word wokeism. do you think that is a proper approach or do you sort of disagree with it >> here is what i would say, in politics they have this concept of throwing red meat at your constituents you want to get them riled up. i won take too much into this. i certainly think directionally peter is what he's saying he feels strongly about that there have been a lot of people, particularly in the financial community, that have not embraced block chain or bitcoin. but he was in front of a crowd of the biggest block chain conference this year and you've got to entertain them. and peter is an entertainer. so while, you know, i don't know if he would have written those words and put them in a press release, but i think spur-of-the-moment, while he was talking to the crowd, it made for good entertainment he clearly is, like i said,

right in directionally there has been a war against black chain based companies particularly by the financial institutions who frankly i think looked at what happened to the newspaper industry with the internet, looked at what happened to the music industry and they did not want that to happen to them. and so what they did for the last ten years is they bought themselves time and that was the big difference between the internet and how it really radically transformed industry back in the '90s and bitcoin bitcoin and crypto took a lot longer to go mainstream. mainly because it was so difficult to get and it was difficult to get because banking access was limited. that is the real problem and that i think he's -- he's correct in stating there are a lot of people in the financial industry that tried to make it a boogeyman and stop it from being adopted. >> it is a fascinating discussion and it has the media

talking about it today so there you go. william quigley. thank you for joining us as we head to a quick break, here is a look at our road map for the rest of the hour including transports falling short. sector on pace for the worst week in more than a year. >> plus discovery and warner media is set to close the big deal today after the bell. we'll tell you what to expect when it all starts trading on monday. >> and it is launch day for axyom space set to lift off on a mission in an hour we have the details and a lot more "squawk on the street" straight aadhe

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transports on pace for the worst week since june of 2020. amid russia's war in ukraine and economic slowdown fears. joining us to discuss is steven trent and barkley's analyst brandon glennski gentlemen, good morning to you both brandon, i'll tart with you. fact that we have seen transports sell off led by many of the freight names amid concerns about the rollover. we're seeing in freight rates particularly in certain segments of trucking. contextualize that for us. >> morgan, good morning and thanks for having us on and with the pull back in transports in the last month has been over 15%. we've only counted that type of relative under-performance maybe three times in the last 30 years. so definitely something to pay

attention to but everyone remembers omicron a couple of months ago, labor availability went down across the supply chain that is why trucking rates peaked back in december. we've now come about 20, 25% off of those peak trucking rates so a lot of pundits and media folks have said, trucking rates are coming down, that means it is a blood bath for transports but in reality is means some of the supply chain constraint issues that we're seeing when we had to ration capacity are coming off so we're getting goods and services flowing through the economy which is a very good thing. and not all of the transport data is negative rail volume has accelerated through the first quarter. we think that turns positive in q2 and when rail volume is up, transports tend to outperform. so we're very aggressive buyers of this pullback right now, i do w -- >> okay. and your take on the fact that it is a busy week in terms of

m&a news. >> sure. absolutely good morning and hello brandon certainly when we look at the passenger airline side, when we look at the last two and a half years we've been in one heck of a dimension. we're coming out of that dimension, if one looks at ltas through put, we're 10% below pre-pandemic levels. and from a pricing perspective, what we've seen in our recent work is april and may domestic booking curve, you have fares up 8% to 10% versus pre-pandemic levels and in spite of that increase, with may actually strengthening versus april, we've not seen any meaningful pull back from a bargain perspective. so elasticity concerns have been front of mind for some investors.

and so we're coming out of the -- in a choppy market given some geopolitical events but long-term basis it looks like a reasonably good setup, special for the carriers that have derisked their earning streaks. >> so brandon, what would you buy right now. >> jamie hunt has pulled back about 15% to 20% here in maybe six or seven trading days and for those that don't know, this is a company bases out of arkansas but they do intermodal movements. this is moving highway trucking freight over the rails where you get a labor and fuel cost advantage so it is esg friendly. the rail system that's been hit by all of these successive covid wins and the supply chain con tr astr -- constraints and we think jb hunt will see a lot of volume expansion in the back half of the year >> okay. so steve, and i'll put the same question to you, especially in light of the fact that we've

talked a lot about this jet blue bid this week for spirit and what that means in terms of consolidation in the industry. but we haven't perhaps talked about whats what it does to this partnership with american airlines >> yeah, certainly so, i think first of all in terms of our preferences for all of the a aa arm -- of the airlines from mexico down to chile, this is our favorite one and it would be delta and united airs so carriers that have stuck to their guns in terms of protecting their brand delta being the last to unblock middle seats and really going out there to protech its equity holders from delusion. what we think about sort of broad m&a on an industry basis, for an airline in this country have 80% of the market so from a high level industry

perspective, maybe a little bit of a surprise and tuesday afternoon's price action maybe showed some of that surprise, that one of the carriers that is a co-defendant in a department of justice lawsuit wants to do some more m&a. so business models wise, we'll see how carriers that aren't necessarily the same sort of strategic model are -- can feasibly join. a lot of questions before that happens but from a high level perspective, you know, the anti-trust consideration seems like it could be relevant. >> okay. gentlemen, thank you for joining us steven and brandon with the dow transports down 1.3% today >> thank you >> pleasure. as we head to a break, we'll give you the laggards on the nasdaq 100 for the week to check out and in nvidia adding to it

today. another decline for that mega cap. down another almost 4% 13% for the week we'll be right back. ♪ ♪ nice suits, you guys blend right in. the world needs you back. i'm retired greg, you know this. people are taking financial advice from memes. [baby spits out milk] i'll get my onesies®. ♪ “baby one more time” by britney spears ♪ e*trade now from morgan stanley.

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well all systems go as of now for the ax-1 mission, a space flight poised to make history in less than an hour when the spacex falcon 9 rocket lifts off with kennedy space center it will carry the first all private crew to the international space station. start up by axiom working with spacex and nasa. and the spacex pressure suits, that was earlier in the morning, are actually already strapped into the dragon capsule and they're undergoing checks. they were transported to the launch pad in what else, teslas. on board retired nasa astronaut michael lopez alagria, and the mission specialist and mark pathy and mission pilot larry connor with whom i spoke ahead

of this launch >> it is important to draw clear distinction between space tourists and what we are, which is private astronauts. the space tourist maybe does 10 or 15 hours of training and is in space for five to ten minutes. you're correct, we're going to be in space for ten days and between myself and the other astronauts, we're going to be conducting some 25 different experiments and encompassing almost 100 hours of work during our eight-day stay. >> very busy schedule. a shot perhaps right there the blue origin and virgin galactic orbital trips. research will include human physiology and communications techniques with earth and much more three of the men paid their own way or it was paid privately a reported $55 million, connor telling me that is not the right number

for him without providing a different one. this is the first of several flights but axiom ceo stressing the company is not involved in space tourism. these missions are to help inform and develop the actual business for axiom when is commercial space stations. they will begin to build out that business model with modules that will start to attach to the iss beginning as soon as 2024. but david, right now, we're t-minus 48 minutes from liftoff and we'll be covering that live in the next hour in tech check as well. >> morgan, ultimately, how many space stations do they see having let's say, by 2030, are there going to be a bunch of them up there? >> potentially now as far as axiom space is concerned, they are the only company that has this deal in place with nasa to begin attaching modules and as they build out the modules over the coming years, evenly they will

detach from the iss and become a free floating habitat. the vision there is to have rotating orbiting cities if you will but there are other companies that are working on projects alongside nasa for commercial space stations. you've got blue origin and northrop grumman and then also voyager space and anna rax with lockheed martin. so this is coming. and a i there is more focus amid the war in ukraine and that partnership that, that civil space partnership between the u.s. and russia and what that will mean for the iss in the future as well. >> morgan, thank you. let's get to our etf spotlight. taking a look at the financials spdr etf, faller mog than 3% and xlf, and the big banks are all up higher. jp morgan is the second largest

holding there. it has been underperforming the market thus far this year. it is down a little over 16% in 2022 this morning b of a naming jp morgan as a top pick as we head into another earnings season next week saying russia related exposure seems manageable but they did notice a slow down in buybacks but jp morgan never recovered from the last earnings in terms of expense growth which did seem to bothersome investors, let's say. we're back after this. this thing, it's making me get an ice bath again. what do you mean?

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i'm frank holland, here is your cnbc update at this hour. u.s. officials whyn ukraine say at tack on a railway administration is one more atrocity committed by russia in

ukraine. officials say a missile strike killed 50 people and wounded 87 others thousands of civilians were in the train station trying to flee the fighting the kremlin denies any involvement. in israel, police tracked a suspect in yesterday's tel aviv shooting to a mosque south of the city there was a gun fight and the suspect a palestinian was akilled. they are the latest in a series of street assaults that left 13 people dead and have shaken that country. and more than a third of puerto rico is without power today. about half a million homes and businesses, they lost power after a fire at a power plant on wednesday. utility officials continue repairs however those outages, they've worsened over the last 24 hours and in dallas, a five-alarm fire at a senior living facility has displaced 65 residents only two firefighters were hurt. both of them are expected to recover. that is the latest david, back over to you. >> frank, thank you. well elon musk capping off a big week with a cyber rody yo to

celebrate the new opening of the giga factory in austin, texas. touting a massive wave of new products last year and explaining why he chose texas for the new factory. >> i asked the sales team, because california is great and we're continuing to command in california but we ran out of room and so we need a place where we could be really big. and there is place like texas. >> joining us now is former tesla board member steve wesley, once of our resident experts on all things musk. quite a week for him, steve. i want to talk about the cyber truck and the new plant. but twitter, let's start there because that is only a few days old. he has joined the board. he's the largest shareholder what do you think that twitter board has in store for it and the management and shareholders should expect from musk's

involvement? >> look, i've surfed on the tesla board with elon and he's brilliant. he sees the driver and he's a bit tempermental but he will push everybody to be better. he likes pushing the boundaries and i think it is a great thing for twitter. i would just advise this to the twitter executives, you need to buckle up because elon is going to push you to get into hyper drive space. >> what form does that take? will it be during board meetings and they may very well be in zoom which is not as effective in zoom, does he start yelling and screaming and get at somebody and not stop. how does it show itself, so to speak? i mean, look, he's the thomas edison and steve jobs of the times. he's pushing people to move faster than their used to moving he's got the great sense of humor and great energy and he is super smart. but he doesn't like taking no for an answer and he wans things

done tomorrow. does that make him easy to deal with not always but does that push your company to be the best he's pushing for changes in twitter and i think it is going to be a positive. >> were you surprised to see that stake dollar wise it is a large money but for the world's wealthiest man. >> it might be a bargain and a lot of people say it is about politics i don't think so i think it is really about elon being an innovator look at this he's twitter's biggest corporate power user other top twitter users is president obama, britney spears, justin beiber, he's the only corporate executive in the top ten. and i think what he's doing is making a statement that bore he tv ads are done, more execs need to start building relationships and speaking directly to their customers and ideally please do it on twitter since i now own 9

p9.2% of it. >> he's like the other quote/unquote meme ceo and yesterday on air they made the point this man spent little to no money on marketing whether it is tesla or spacex because he's such a public figure and could take to something like twitter and basically announce news and get people talking about it like we're doing right now. which brings me to cyber truck he said last night that we're going to start production or the company is going to start production next year we've talked about the economics of that vehicle before but just break it down for me again because it does seem to be the thing that not only tesla consumers but analysts are very focused on >> well, look, the battle for the short range truck market, this is the 4150, the biggest selling vehicle, car or truck in the united states, 40 years in a row. they're number one on top. tesla got it for them and rivian

is there with backing from amazon but you have to note something here the ford lightning has 350,000 orders and rivy an a little less and tesla, they have over 1.2 million orders so the real question is how fast could they get it to market and how many will they sell. this is the biggest smack down in the global auto industry. i have a hunch that the cyber truck going to do better than people think we'll see. it is going to be a big one to watch. >> and in the meantime, with model y and this ramp down at the giga factory in texas, putting out some pretty dramatic numbers in terms of production both there and then i guess globally over the coming years in terms of what tesla can make happen we're talking about this earlier this hour with phil lebeau but how does it speak to manufacturing techniques and whether those types of production targets, i mean you're talking about 20 million based on what he said last night, which we haven't seen before, whether those could truly be achieved.

>> look, the whole event last night they're talking about texas and going big, the real story is about texas and going fast how much faster tesla is moving compared to the other automakers gm and ford shipped 25,027,000 evs and muck did four times as many and tesla opening in austin last night, the fourth major production facility along with china and berlin and california. and the one in china they are doubling capacity and ford and gvm gm are just breaking dround and tesla has opened the fourth plant. i think there is a against g kans they'll produce 4.6 million vehicles this year and they may show 60% growth revenue wise there is a chance here that share price could go up even more dramatically if they hit numbers anywhere close to what

elon put forward last night. we'll see. >> yeah. shares about flat for the year down 2.4%. or were coming into trading today. steve, always a perfe-- appreci it thank you. >> thank you for having me. >> as we head to break, a look at the top gainers on the s&p for the week it might be a down week for the s&p but it is names like twitter with everything we've just been talking about, auto zone, o'reilly auto and hp and target with double-digit gains for the week during the month of april, we're featuring some of our cnbc contributor, here is nelson with what he learned after coming to this country from cuba >> i arrived with no family when i was 3 1/2 years old from cuba and we didn't have anything but $50 and a lot dreams but we live

in a country that for those willing to learn how the football system works and educate themselves and work hard there are pathways to increasing personal wealth. it is an exciting journey and ien c-- i encourage more to get familiar with personal finance hancock, you sign first. no king? gentlemen have you taken leave of your senses. who... who are you going to bow to? no more genuflecting? the people shall have the right to vote. even the stupid ones?

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a new survey revealing most crypto investors don't realize they owe taxes when they make a purchase with diggal currencies. our robert frank has that story, a lot of crypto investors are not paying taxes is because they're not away of the capital gains rules. a new survey from coin tracker found that 58% of crypto holders didn't know that trading one cryptocurrency for another could trigger a tax. now crypto is classified by the irs as a property not a

currency so any time you dispose of it, that is by trading it or buying something with it. that is tax. so say you bought bitcoin for $10,000. it goes to $50,000 and you trade it for $50,000 of ethereum would you owe a tax on that $40,000 gain when you trade it the same holds for crypto for any purchase to nearly two-thirds of crypto holders didn't know when you buy something with crypto, it coo be a tesla or an nft or a board ape, you still owe a tax an the appreciated crypto now the good news for investors is that the irs doesn't really have the tools right now to detech any kind of evasion now exchanges an wallets are not yet required to send the tax forms to customers or keep track for the government there was legislation calling for 1099 b forms to be sent but that doesn't takeesque until 2023 even that timetable now looks delayed. so morgan, only 10 days until

tax day. so crypto investors, you have to get this right back to you. >> all right robert frank, thank you. up next, on tech check, in the next hour, don't miss the ceo of crowd strike george kurtz, getting a nice pop after protecting critical assets for the u.s. department of defense shares are up 2% that is coming up at 11:30 a.m. eastern. in the meantime, we'll be right back tay with us.

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check out the biggest lagards on the week. salesforce, boeing, visa, walt disney and dow lower to end the week even as dow is trading up slightly in today's session. we will be right back.

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organization is indicating that world food prices has hit a new record, soaring 13% in march joining us to discuss is juniors cheesecake and restaurant owner. great to have you on the show. >> thanks for having me. >> given that we are talking about food inflation and that seems to be on a higher potential trend seeing what is going on in eastern europe, what does that mean for you and your restaurants? >> on the restaurant side we have seen wholesale inflation over the past three months depending, from 4% up to 100% depending on the items on the restaurant front we have moderately raised prices in the fourth quarter of last year coming out of covid. to be honest i have no plans to increase pricing, but we will look at it in the third and

fourth quarter >> 100% increase it's hard to wrap your mind around that. if you are not going to wrap prices again or can't push all of that cost to consumers, in terms of pricing, are there other ways you are going about navigating this? >> there are other ways we can try to be more efficient in our operations and the mind-set coming out of covid, we are looking to build back business. we are just getting close to our threshold from 2019. we want to continue to grow and grow our business. i think we will make up for it that way this is not a sprint it is a marathon and there is opportunistic price gouging by some of our sellers

>> what do you mean by that. cream cheese is up 38% this year, which drives up the butter market market is only up 11%, so i believe we have some friends in industry that are looking at this time -- there is inflation on the food side, labor side, trucking side and they are saying let's grab a whole bunch of price increase while we can >> interesting to what you said about getting back to 100% i think we had you on during the course of the pandemic people are coming back in full what are you seeing in terms of customer visits at this point? >> we are in range of about 92%. as of last week that is the most current information we have. on the wholesale side of the business we have grown over 50%. up 29 this year.

on the grocery supermarket side has been fitted from covid the restaurant side is just getting back to 100% i hope by this summer we will be into that 100% mark if not further through it >> i think times square, too in terms of the mix of the customers coming in right now, are you seeing tourists and international travelers come back >> yes since the vaccine mandate was just recently lifted in new york we saw an immediate impact plus in consideration, the basketball tournament, a lot of theaters coming back, i think it's at 50%. and in the next four to six weeks, i think it will be 100% >> do you have enough workers? >> we do we are very fortunate that we have always been a very good

payer and employer we have had full employment for the last four or five months getting ready for this >> then i guess finally, just in terms of your take on the economy through the restaurant lens, where a state or a city like new york is concerned, as we are talking about economic growth is that something you are genuinely concerned about? >> we are seeing recovery on the sales side profits -- we have seen inflation on the employees side and on the food side so our margins are not good and we just came out of a period where the restaurants were closed for 14 months it has been tough on the restaurant side. we are hopeful we get back to where we were, that some of these costs subside and things

go back to normal. >> alan rosen, thanks for having me >> before we get done here and at the end of the day. at&t and warner discovery will become two separate companies, not that they aren't already what i mean to say is they will complete the deal which at&t will receive $43 billion in cash and distribute shares of discovery to shareholders. so as of monday there will be 2.4 billion shares outstanding at&t will be a wireless and wired line company we have been talking a lot about this deal since it was announced a year ago the reality is here. the key questions will be near term how much flows back how many of those distributed shares will be back onto the market and will that put any selling pressure on discovery

shares will david zazlov be able to execute this new company with the series of assets he has. and what will we see from at&t with what it says is its new focus. that's going to do it for us on "squawk on the street. "tech check" starts now. ♪ happy friday welcome to "tech check." today the nasdaq threatens to snap a three-week win streak we break down the winners and losers and where things go fro