a about it a lot i have no answer for monday this really went fast >> time flies when you are having fun, buddy. >> that can't be true, that can't be why >> that can't be why >> make sure you join us tomorrow the buddy thumb continues. "squawk on the street" begins right now. ♪ good monday morning, welcome to "squawk on the street." we are going to get netflix's ibm and tesla and j&j proctor all headed this week we'll get at&t as well and those set to report in the week ahead. >> plus, of course there is musk and twitter, that take over saga

continues. the board adopts a so-called poison pill and jack dorsey points to dysfunction as well as elon musk tweeting "love me e tender te tender." l >> carl, we got a lot this morning. >> zero days of trading losses in q-1 and no real exposure to russia >> those are important questions in terms of exposure to russia the city that has the largest exposure amongst the u.s. banks. still a lot of questions of the european banks no losses but not a lot of

volatility i should say a lot of volatility but not a lot of capital market activities we saw jp morgan's number as well let's call it mix. boa is always a good read as well we'll hear from lesley and get some highlight frs the conference call. that can be important. looking at their slides this morning. consumer spending did remain strong and the first quarter of 14% year over year >> yeah, and certainly been kind of a mix bag in general over the past week of major banks earnings you mentioned bank of america and equity under writing did underwhelm in terms of bank of america, the facts that profits topped estimates lender release

reserves for sour loans as well. it kind of sets the tone as we know with bank earnings and kicking off the earnings season sets the tone. what's expected to be a high bar to hurdle from an investor's standpoint for american stocks, american companies this season given the fact that there are so many macro head winds we have been talking about for so many months, carl >> yes, we'll watch that loan bl balancibalancies up abo. it is interesting we get a lot of feds speaking this week on thursday, we get powell, not once but twice there are materials written this morning whether or not the feds share of a based 15 points hike. >> yes, rates continue to move higher and that may press the

broader market as we got going here about 28 minutes from now consumers continue to be a key focus as we all know 2.8% on the yield. carl, back on bank of america, they're talking about resiliency macro head winds if there are any. we know the impact of inflation. the change in boa's credit card customer ambubalances up 39%. they say u.s. households checkable s and domenica cameron sc deposits are moving higher.

the merger numbers that would come along when the spac announced the deal that added a lot to overall activities to so many firms and that's not there anymore given the volatility we have seen in the broader markets. >> yeah, so true and just to go back to credit card spending for a second we have seen these double digit jumps with all the major banks reported so far. it speaks to your point of debate around resiliency of consumers but also speaking to inflation as well. we have consumers paying higher prices and these 40 deck ades hg for inflation. it is going to be interesting and how it continues to carry out. we have surveys coming out showing how gloomy consumers are feeling about the state of the economy and the prices they are paying you are starting to see some leveling off of those price

increases and things like autos and used vehicles. key question though over the longer term, this brings it back to the feds, okay, we can talk about peak inflation, medium to longer term. that's not really the thing that matters. it is going to be where inflation ultimately settles >> we'll watch cars in particular, autoproduction and march by the way, the best in over a year going back to january 21st it was boa this morning, over the weekend, looking at the waning the lower income strata keeping up with lower prices and growing home take-home pay in double digits and more job opportunities than they had in 30 years it is a race but it is tight they have the ability of lower and consumers to keep up with prices >> yes, that's very interesting. i continue to hear about supply

chain pressure and we'll talk about it more when we talk about battery supply and simple things like steel and what the price there is going to mean i know a lot of automobiles have more aluminum than plastics in them what it is going to mean and the price of automobiles let's get back to another name, twitter, let's give you the latest this morning as we bring in michael nathan. not too much to report this morning. board is going to do what a board should do namely, consider all of its options, they put the pill in as we know, the poison pill that is headed 15%. that was done on friday. maybe a bit later than it should have been done unclear exactly what the real impact of it at this point you got musk sort of that tweet in terms of elvis and "love me

tender." he can do a tender, he could not close a tender obviously because to do so would be to pass 15% and bring on the enormous delusion that a pill would bring. you can take a look there. very cute, elon. nonetheless, if he were to do that and get most shareholders to tender into him at 54-20. the board would not necessarily be able to stand in his way, would it we'll see if there is any other interests if they go down that road certainly you have to believe they are thinking of the possibilities in terms of e engaging with him and knowing what else would be out there fra frankly, when you start to do the math with private equities and rumored names over the weekend. it gets tough. this is not a company that's

easily levered you are talking about $45 billion price potentially as much as. it is unclear to me how you can get any price equity and given the check they would have to cut. just does not seem to make a great deal of sense when you pin it out for the math itself they don't need money. an anyhow, that's a lot of talk for me let's bring in somebody who knows the company well as well michael nathan the management director and i love talking to you, michael, last week we talked about discovery. this time let's talk twitter as well first of all, give me your take in terms of where the stock is and in terms of what you think the company is worth and whether you think musk will follow through? >> good morning. i can't believe it is 7 minutes into the hour and we just got to this topic

david, our view is the stock is overvalued. look, twitter board and in inve investors, take your money and run. we look at the options they have on valuation you say the stock is overvalued. to me it is the best outcome bury in the stock for a long time and it is a story about what we can do for you because they have never done it. and, you know, if they walk away, the stocks going back down to the 30s i don't see another option here? i think you have to engage him and hope that you find another bidder if you could to get the price up the stock is overvalued. it is traded on the option of being a better company but not the reality of the business

model. >> and we have always been asking those questions it is a tough thing if you are on that board or management team though even if you beat musk so to speak, he's still going to stay with you, is he? even if he does not own 9%, he still got an enormous megaphone so to speak. they'll be under pressure here i would think, but i would want your opinion one way or another with a potential transaction of some kind but even without it >> i agree with you. with the ceo new and tested. he said publicly he has no faith of the leadership of the company or the board that's not going to end. he's upset with their moderation policies they're a tough buy. they moved in part to help the community comfortable with twitter. if they undo that to musk's liking, it will hurt them. there is no way position that's why i think they should

engage and try their best to take on old bids i agree with you you can't have someone and you can see the anger on twitter from people who support elon musk they feel like they have been wrong and the platform is not very good. that's not dpgoing to end, righ? i don't know if i want my biggest critics everyday critiquing our inability to do the things he wants to do. >> he's basically using twitter as an opportunity to crowd surf and he's looking to potentially take over twitter. the idea is the bid is potentially too low. that $60 may be the number to get a deal together. how do you see that? >> $60 would be a blessing on thursday, cramer is clear look, the board can't take it off the way it is structured you need to show your

engagement -- as your point, maybe as a safe approach, they get more money 60 would be a gift as well you say 60 is our pricing and the board looks good to me at this level, we have any of our clients pushing back the idea of sellers. all the clients say you are right, take the money and run and we agree with you. we have seen these bids come and go for other companies and david can tell you the history of this people turned down bids before and look back thinking i wish we had taken that money it could happen here >> yes, this idea of this is the company and can be traded and the potentials rather than the reality of the potential do we know of a free-speech

andless-regulated twitter would look like and how we monetize that >> we do know a bit because if you go back to the past couple of years, you start to get advertisers to push back there was a campaign against youtube, facebook, remember that if twitter becomes unregulated and goes back to the cesspool of what it was, you will lose advert advertisements engagements will be off the chart. i am not sure if it will make up the backbone of twitter, especially with tiktok rising, you know i just think it is a real risk for the business model. god bless them, take a private and see what happens >> yes, so put on your banker hat for me, michael. if there is a strategic buyer, any idea who that may be i think we'll have to cross out big tech because of the regulatory review they may get and, i don't see the math working for private equity but

perhaps i am not looking at it properly >> remember i turned the question to you last week. i don't see it strategic because big tech companies can't buy it. the media company we all know can't afford it now. and private equity, cash flow, we noted their peak cash flow in 2018, right? they have been paying people with stock-ups so i think there is a really hard -- when we look at the options, this is the best option once salesforce walk away and disney, there is no bigger bid >> we need to figure out how he would finance a deal i know he's the world's

healthest man but still. >> michael, i appreciate you taking the time for us on a monday morning when we come back, shares of ev started losing 3/5 of their values so far this year. we'll take a look at this year and the years to come. we'll get to rivian and tesla. we got some calls on wendy's and gap and airlines and chips "squawk on the street" is back in a moment. stay with us indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire in the future we'll travel to incredible places with the help of magical technology. but what about today? ♪♪ i can't wait for what tomorrow will bring, but in the meantime, let's enjoy the ride... ♪♪

. phil lebeau is joining us now. morgan, we have a chance to go to illinois, r.j. going over where we'll be going during a tour last week when they talked about production he gave us an update of where they are the supply chain challenges they have faced are being addressed the electric suvs, that production has begun and gradually increasing and rj is starting the feel like yeah, i think we are getting past some of the growing pains >> i would say 90% we feel good

about. it is the small percentage of parts that's constraining us and whether those harnesses or semiconduc semiconductors, those are the areas we are laser focused on and our supplies and how many vehicles we can reproduce. >> the chip crisis will be with the industry through 2023. that's not new near guidance, 25,000 vehicles, if they have enough chips, harness all the components they need, they can do 50,000 is what they said. they got 83,000 reservations as you take a look at shares of rivian since its ipo this november the company is in the penalty box until it can show it is getting past the production challenges when it encould nterd when it first started up one of things that'll be helping is the fact they begun ev

production amazon owns a stake in twitter we saw a number of those vans being built coming off the s assembly line. it is a nice stock to have if you are ramping up productions >> absolutely is the potential risks to the battery supply chain in the coming years which i know he spoke about repeatedly >> yep >> whether it is rivian or other ev ev startups. you are trying to convert more people coming into this part of the market >> yes, the pressure will continue limited supply and two, look ats the vast majority of the overwhelming majority of electric vehicles that are being manufactured right now the price point is above $50,000. i understand carl, you got the

lightning that'll be coming out, production is going to begin next week. they're starting with the base price of 40,000. we always talk about the base price, nobody is going to buy vehicles at the base price they'll buy it more than that. it is a tight supply of the materials needed for batteries and battery zone >> long-term growth forecast thank you, fascinating stuff phil lebeau on rivian. shares of didi global. their share is opening down about 19%. more "squawk on the street" when we come back

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the 10-yr is just below 2.83 the stretch is approaching the level of a high 3. the opening bell is in five minutes.

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shares of didi are down. didi is also saying if full cooperation of cyber security review in china. kind of had our eyes on the capital markets between u.s. and china. >> it does it is interesting. you got theinvestigation in china and ongoing board changes and this listing meeting next

month and you have chinese regulators coming out saying this had nothing to do with the other u.s. listed chinese stocks david, it does speak to perhaps implicitly or not this broader tensions between the two companies where financial markets are concerned. i mean, didi within a week after the company went public, we saw chinese regulators crack ddown >> it had a couple of days there and it had been nothing but down since then what do the undeyou underwritew and various actions that's been taken in its home market >> let's get set up for the opening bell here and get the

cnbc's realtime exchange the big board is gray scale investments, celebrating the future of financing and the nasdaq, smart global, technology holding company doing the honors as we are coming off three losing weeks for the dow and two losing week for the s&p's and the nasdaq morgan, we'll definitely watch to see how b of a trades >> we have got 60 plus s&p 500 companies reporting this week. seven down components across a wide swath of sectors and industries we should get more earnings and how these i will call the three i's. the invasion of ukraine are affecting companies as we get

the first quarter's prints, david. >> i mean it is funny taking a look at the banks to see how jp morgan reacted it is not a good year. that stock was down 20%. of course we should take a look at the major banks not getting up too much right now. questions as jp morgan began earlier in the quarter and the last one in terms of expenses and now it is about world capital market activity at this point and jamie diamond's comments last week certainly raising some concerns for the broader company, one that we have talked about many times. no real bottom insi site wells fargo among was the best

but not long ago it was down >> it is hard to separate the financial activities from housing activities interesting data pointover the weekend regarding home prices. redfin, home prices may show some signs of cracking here. boise is flirting with negativ prices and the dallas morning news had a piece of, the number of homes for sale is 2400 down to 88% year on year. we are getting down to inventory levels maybe there are homes that are not going to move at all. >> it is possible. when you see what's a dramatic spike of mortgage rates in just a number of months when you think about where we are at december and 30 year fix is what more than 5% right now and if you are really qualifying for the top, it is not surprising and the fed pulling back and tighten in general, sort to speak of what's softening demand

of the hottest markets once again the top performance sector in the s&p. you got crude oil trading back above the levels that it was trading at or back to the levels it was trading back before president biden announced that historic release of spr reserves that's note-worthy here you are seeing the stocks react to that and natural gas trading at its highest levels since 2008 which is helping those gas stocks, too. so it speaks to we are seeing some potential cooling ngin the economy as the feds begin to tighten and the heat continues the dial up a notch in terms of h headwinds. >> we have tnot talked about russia's invasion in ukraine european nations are talking

about trying to stop or at least halt to some extent, their use of russian natural gas that would be a big step for countries like germany, de depending as much as half. it comes from that country and yet they are talking about doing things to increase efficiency, morgan, lower energy usage that would be a huge blow for the russians which seen a real positive given much money comes into their economy as a result of their sales it could be significant things, dislocation for the european economy. we talked a lot about it as well we have not taken a look at those markets this morning that's a big story we have got to keep a close eye on we do overtime expect in some way production here will be able to replace at least some of it if they do go that route, morgan, in terms of their use of

russian energy products. >> yes, some that's kind of the key there and we'll see how it continues to play out and how quickly you can start to ransom that production and how much domestic policy can contribute to that we are seeing some easing where the biden administration is concerned. also, i think it is really k noteworthy and looks like major averages are turning fractionally higher. one area where we have seen higher energy prices play out, we'll see play out and get more meat on the bone where at least from an earning perspective where that concern is the transport and the fact that we have seen those travel names including those airlines trade higher in recent weeks, carl, something we'll talk more in the next hour. can it sustain and how much of that higher fuel costs at the

airlines can be passed on consumers? there is a lot of pent-up demand that people are going to travel coming out after the pandemic the last two years how long will it continue if you see these prices elevate >> we'll get the ups today their argument is coming off of the earnings last week, better than expected revenue trends if you, morgan, the premium travel is a little more permanent than a post covid trend. they do cut united to neutral. they maintained 51 they argued that the operational picture may be a little less move it is kind of an interesting split call j.b hunt tonight, maybe we'll get some data on trucking. something that'll be sticking around for a while >> trucking and intermodal,

something we have been talking about quite a bit to kickoff this hour. of course you are going to get the railroad later this week, too, which really moves everything from intermodal from all different types of commodities and finished goods fuel charges that tend to pass out or push out to the shippers that are hiring these companies to move these goods tend to be a little more delayed. it is a different business model where the fuel costs are concerns verses the passengers airline. we have seen a softening in trucking and spot rates and while the port congestion here in the u.s. seems to be easing in recent weeks, at least on the west coast, what are these covid lockdowns in china and what is it doing to ports backup in china coming into the summer months and shipping season as well a lot of questions to pull apart there as investors more broadly

are focused ons slowing economi growth and what that ultimately going to look like >> yeah, we are nowhere near out of the supply chain issues >> no. >> i am sure you had conversations indicating it is as bad as it had ever been in certain areas. we can expect following through price increases as well as a result >> we'll have to see how some of these different companies whether it is jp hunter or union pacific or some of the other names that are going to be reporting this week and the next couple of days, what they had to say about that what's happening is you have seen a ding in volume and freight volume because of those supply chains. companies are able to offset that higher pricing. is that ad dynamic to continue are we going to start to see that price often which

ultimately i keep on say saying, -- we are playing a drinking game this morning, people would be drunk right now if inflation was the word, carl. >> that's a new game >> kind of like when you listen to roxanne by the police, you got to drink every time you say roxanne. by the way, shanghai, where normally this time last year had about 10.5 million people taken the subway, 1500 people took the subway in shanghai yesterday the supply chain picture is not going away any time soon we should look at disney, david, one of the down laggers this morning, we get netflix tomorrow night and big piece in the ft about how at least households in the u.k. are cancelingvideo subscriptions at a record brace as consumers there braces for a

difficult year from a household standpoint it will be interesting to see what's the print out of netflix but certainly what the guidance says >> without a doubt the foreign market where the growth have been significant for years now domestically and some growth but not much here in the u.s. we'll be watching that closely it is an interesting point in terms of budgets and how many streaming services people have as well as turning on and off with relative ease verses trying to get your cable company to disconnect is another feature of directive consumers and streaming. that's an important component of it it is much easier and therefore, you can't even do so a hit series and choose to not subscribe at a given month as well >> disney, plenty of kocontinue presses as well. the company's ceo and some of the tensions he's been under in terms of politics on both sides,

certainly in florida as that continues to sort of battle -- guys, i want to come back to twitter if we could. it is down it opened higher this morning and it was moments ago, it is now down you heard michael nathan on our show, hey, if you can get the 54-20 out of musk, take it he's in that camp. the stock is overvalued at this price. current management will be able to increase value significant beyond what musk is willing to pay. how serious is he about it how serious was he about finalist and component of that bid? i don't hear much back and forth as of yet between the company of mr. musk and in terms of them saying come on, give us much more details about your financing and what about going

higher what is the willingness to do so if you do that as the board, you want to at least have some sense of overall value and perhaps there is somebody out there willing to pay i find it hard to draw the map that makes my sense in private equity that given a check that would have to be written it is not a legible asset given its rcharacteristics right now. then you got jack dorsey's weird tweet, morgan. >> yeah. >> the two of them -- unclear where he's going with all of this >> calling his own board out that he's still a member of is being dysfunctional. he kind of steps off the board very seen, he owns 2.5%. got to keep an eye on that relationship as well between dorsey and musk.

p apparently, they're not enemies. >> i thought that was fascinating because it does not seem like he's for or against musk it and note that from many potential investors and proppro proponents on the musk's side, who has made investors a lot of money over the years >> his ted talk talked about plan b the lowest price of the month, going back to april 1st. dow is up 130. let's get to bob pisani, good morning. >> tech are down again tech is not doing much let's take a look. once again it is cyccyclicals.

banks slightly on the upside they started down. tech is new moufring in the positive territory it was on the negative side. new high list, the usual names the halliburton we have seen it is interesting to watch the new low list, there are new names starting to appear a couple of trust banks, at a 50-week low. we are seeing some of the names, semi semiconductors and lam research sitting a 15% lows wlow. what we got is a bifurcated market utilities had been working

all those growths, people, all they do is watch the two-year now. that's the proxy for the fed it is hard for anything growth oriented to keep working or the two-year keep striving the star of the year is a very unlikely player. i am going to show you an etf. this is like the perfect etf for the moment like proctor and gamble it is the perfect competition. everyday this is hitting an historic high on heavy volume. the big issue is earnings and what's going on with earnings right now. the first quarter number are fair lilo and they got to come up because you see the whole rest of the year, they're all much higher, they're banking on the idea that we'll do much better earnings in the second half of the year that's a very, very tall order considering the pressure we'll have from the federal reserve. we got to keep an eye on that.

the market is adding like an peak earnings. corporate america has to sound for bum llish, that's a big problem. the average s&p is actually going down here. we get 68 companies this week. i would say flatish start for q-1. >> bob pisani, thank you we are going to get bolder this afternoon we'll get existing homes on wednesday. a little day book action as well and on thursday, powell and le guard at this imf event for the time being 10-year yield is kind of swirling around. back to 2.83

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shanghai's restrictions is month's long process now our eunice yoon is live in beijing. >> reporter: the first quarter figure showed it is better tha expected coming in at 4.8%, but the trend overall is for slower growth when you look at the quarter on quarter numbers, the numbers quarter on quarter, they are up by 1.3%, which is slower from the fourth quarter also the march data was quite revealing. the retail sales figures contracted by 3.5%, and the unemployment rate was higher by 5.8% and this is really telling because these are the worst numbers that china has seen in these areas since 2020 now, shanghai reported its first deaths today since the most current lockdown

three elderly people out of 372,000 infected cases that were reported since march 1st there are -- there is an expectation that there is going be several more lockdowns. in fact, we saw those spread over the weekend to zhengzhou, where quite a few iphone making facilities, xi 'an recently went into lockdown already, being called -- thrown back into lockdown another small town in a far main province so there has been a lot of discussion here about exactly what this is going to do to the economy and in a rare move there have been several business people, chinese business people, who have been speaking out about this some executives from huawei, x ping, the ev startup, and others

as well. especially in the international business community saying that this is going to have a really negative effect on their industries talk -- there has been a lot of talk that production is restarting this beak in shanghai because of all this pressure tesla is supposed to start of production and also discussion that there would be more lift of this lockdown by thursday, but the overarching feel is that president xi still very much believes in the zero covid policy in fact, state media today said this policy is correct and effective. back to you. >> fascinating, eunice, with real world implications we see crossing our ticker in real time amazing. the lockdown there we got some opening gains on this week. coming off three straight weekly losses for the dow, which is up 128. oject managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get

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bank of america's earnings call is going on right now leslie picker has been listening in and she has some highlights i notice that bank of america shares and all the shares of the big banks have turned around they are well in the green now not sure if it's anything that

came off the call or not >> yeah, it's a good question, david, because we saw bank of america shares trading firmly positive in the premarket right after the earnings were released then dip into the negative over the course of the call now they are firmly positive, up about 2.5% so definitely some volatility this morning that call is about 90 minutes underway at this point in time executives spent a lot of time on this call quelling concerns that fed hikes could engineer some slowdown in the economy ceo brian moynihan says this is different because consumers have higher cash balances in their accounts than previous cycles. >> could it slow down the economy? perhaps. right now the size of the economy is bigger than pre-pandemiclevels consumer spending remains strong unemployment is low. wages are rising company earnings are also generally strong credit is widely available our customers usage of the lines of credit is still low

>> moynihan last of the big six bank ceos to report earnings sounding more sanguine than his peers. the bank released $362 million of reserves which is indicative of management's belief that the balance sheet can weather the macro headwinds out there. b of a reporting record deposit balances of 14% to a $1 trillion in the quarter, average loan balances were up about 10% compared with last year. revenue within consumer as a whole, b of a's largest division, up 9% to about $9 billion thanks to higher net interest income and a rising interest rate environment. moynihan on the call saying the firm is, quote, obviously, aware of what the fed is trying to engineer but higher rates should be a tail bind for the firm. >> interesting sounds like he is saying a lot of things that cramer wish charlie sharp said last week

we will watch it closely here. the s&p now in the red coming up, a lot more on the twitter elon musk saga, including reaction from former fcc chair in a moment. [sound of helicopter blades] ugh... they found me.

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. welcome back to "squawk on the street." i'm diana olick with breaking news hold builder sentiment in april dropped two points to 77 on the national association of home builders index anything above 50 is considered positive but that is the fourth straight month of declines it was at 83 a year ago. now, of the index's three components, current sales conditions fell two points to 8 # and buyer traffic dropped six points to 60, the lowest since last summer. salesforce expectations in the next six months increased three points to 73 following a ten-point drop in march. now, it's all about sharply rising mortgage rates. the average on the 30-year fixed started march at 3.9% and is now up to 5.15% according to mortgage news daily. that's the highest rate in over a decade the chief economist robert deates says the housing market faces an inflection point as an

you unexpectedly quick rise in interest rates, rising home prices and escalating feerl costs have significantly decreased housing affordability conditions builders sentiment fell everywhere except in the northeast where it managed a one-point game no surprise on the interest rates, carl. >> thank you very much a lot of information. good monday morning. welcome to another hour of "squawk on the street. i'm carl quintanilla with morgan brennan and david faber. got some flattish action to start the week a lot is headed our way. we got eco data now. powell on thursday and almost 70 s&p companies reporting this week, morgan. >> yeah, it's going to be a bus week 30 minutes into the trading session. three movers we are watching this morning, the last of the big banks reporting results. bank of america beating earnings estimates while revenue top street forecasts on strength and consumer lending, shares up more than 2%. plus shares of dd global on the

other hand cratering after reporting a 12.7% drop in q4 revenue compared to a year earlier. the chinese ridesharing company saying it would hold a shareholder meeting next month to vote on a de-listing from the new york stock exchange. shares down 14.5% now. and we will end with the u.s. ten-year treasury note the yields hitting the highest level in more than three years, back-to-back inflation reports last week showing sharply rising prices that have further fueled bond yields and the move has been once again dramatic the past week plus, david. >> yeah. it certainly has wow, look at that. also keeping an eye on shares of twitter, all over the map. not moving that much but up about 1.2% of course, investors in that stock trying to understand and figure out whether elon musk will follow through with and be successful in his attempt to buy the company, perhaps at $54.20 or perhaps a price that is a bit above that as well, whether or

not twitter's board will seek to find other potential buyers of the business at a price equal to or even higher than that most likely higher than 54.20. and whether private equity might have any interest. earlier we spoke with michael nathanson. certainly has some doubt as to whether there are any strategic buyers out there that would be willing to pay that price or even have interest in buying it, not to mention when i did the math on private equity given the size of this company, given the lack of cash flow from it, it becomes a very difficult deal to imagine, despite what have been headlines of at least some interest, so to speak, from big private equity firms it's hard to see how that could actually work given the equity check that would have to be written and the number of firms that have to partake in such a deal over the weekend or actually on friday, but that was a holiday, twitter put in a poison pill we got the ak on that this morning. nothing new that we didn't know. it kicks in at 15%

what does to have the effect of doing? well, it levels the playing field, whatever that means that's the words they are using. really not much of any impact except if, in fkt fact, elon musk tries to move forward with what we consider a hostile tender you can take the shares but you can't pay for them past 15% because then you suffer massive dilution over the weekend he did tweet some lyrics from an elvis presley song including the word "tender" and an interesting tweet and response to another tweet from jack dorsey, of course there is the love me tender tweet. founder of -- co-founder of twitter and its ceo until not very long ago, saying a board of which he is a part has been consistently the dysfunction of the company. that's just -- you don't see stuff like this too often. you don't see the world's richest man trying to buy a

company for 43 plus billion dollars and the founder who is stepping off the board and still a member of that board say something like that. it's definitely a unique situation to say the least what comes next though remains, let's say, unclear at this point. certainly if you are that board, you want to figure out how musk would finance the transaction, morgan you know he has the ability to do it with the tesla shares unencumbered, not to mention a company you follow closely that we don't talk about as much, spacex we don't know what his economics are there or how much he has, if any of that been pledged as collateral for any loans at all. let's not forget, because, what, it's worth $100 billion at least, at least according to the private market values, right >> that's right. and elon musk is a man who has a reputation for not selling unless he has to we saw that recently with tesla. but he -- that's a key question. what is the strategic plan going

to be for collateralizing tesla and spacex stock to the board to shareholders or does he potentially walk away? he has hinted at a plan b. we don't know what plan b is also it would be fascinating to see whether he takes this battle to court, which would take a long time. we know the legal precedent would mean this would be a tough battle there are a lot of steps here yet to be taken, david, and actually we are going to stick with this topic and bring in a guest who can potentially weigh in on this as well, and that's brian fitzgerald, wells fargo senior an nist he has an equal weight rating on twitter. we want to get your take on all of this, what potentially the next steps could be and with the stock trading where it is right now higher than your price target, i mean, we are talking about it last hour, this idea of maybe take the money and run how do you see it? >> yeah, that makes -- twitter's

board is in a tough spot we see upside into the high 50s if the board of directors engages with musk, get him to sweeten the bid. not sure that's possible he said last and final and they have a poison pill in place. so, you know, that's tricky. david, to your point, a strategic may be ruled out because of the regulatory concerns and we is the math over the weekend to make rough peirr work, we think you need a 6 # to to $65 bid and that's $40 billion check, that's big and that assumes 12 billion in debt so, by the way, assuming under pe guidance twitter can outperform and garner a premium on a re-ipo in 2025, that's $65 bid only returns -- we say this tongue in check -- just 21% irr per our quick math so it's not clear whether a pe

plan would broadly differ from the current strategy so absent elon's deal or a white knight coming in that the shares will be pressured, we think. >> if that's the case then, just break this down for me a little bit further, how do you get to 60 to $65 a share if private equity or other bidders are not coming in? if elon musk walks away, shares are under pressure. >> so that's what an offer would come in potentially. that would be the upside we don't see that as happening. >> okay. >> and we see musk's plan -- we did some musk math over the weekend, and tried to calculate does a freer twitter make sense. a freer twitter could drive faster user growth, faster engagement growth and that would help out the direct response, the advertising that they do that's 15% of twitter's mix. 85% is branded advertising and we think that increased

engagement would not be enough to offset the branded pullback that you have seen it you opened up a platform that would be freer, more free bheelg and brands pulled bab a bit on that type of content. >> meanwhile, what do you think the current quarter is going to look like? plenty of rumors say not great, put more pressure on the board of course, raise that potential for the stcrate ring if musk was away how do the current fundamentallies look >> they look find. i would say part of musk's plan and part of the stuff we are watching carefully is that subscription program, twitter blue, $3 a month it's very small now. it's not critical to their bogeys they threw out, for 7.5 billion in '23 and monthly -- or monetized daus of 3.15 billion that's ambitious to get to those

numbers. you have to significantly accelerate the average quarterly net ads we see it's got accelerate to 12 billion -- sorry, 12 million and we are seeing 5 million the last six quarters hitting those stretch targets is going to be hard for the company as well. >> i mean, a company that has lagged its peers in social media over the last couple of years. the fact that we are even having this conversation about potential take private or a shake-up, you know, activist investor shake-up with elon musk and the different ways that could play out, what does this do to twitter relative to its peers from a market standpoint >> look, i think the platform is trying to get people to engage, get them to stick around and then trying to drive further down the ad funnel to more direct response advertising. that's a goal of the company they want to get to 50/50.

but they are a long ways off for that it's still a vlad palid platforo gather news and information. >> musk is active right now as we're talking, responding to a tweet that tries to argue that the board emembers,if twitter were private, would likely no longer have jobs, what the directors fees may be. he writes board salary will be zero if my bid succeeds. that's $3 million a year saved right there. how much of this is serious? >> look, i think elon's point is he is a free speech advocate, but there is a balancing act between free speech and monetization free speech is an important twitter principle but you have to weigh that against the platform health, the tone of the public conversation, the brand safety and that suitability for advertisers. the most -- the most recent focus has been more around the platform health.

it's complex, like i mentioned, and a more free-wheeling character to the conversations on twitter, you know, could drive irng mental engagement for some users but could alienate others. >> yeah. meanwhile, this board, management team, you know, by virtue of what we saw, this tweet just a moment ago, even if he goes away, even if he sells all his stock, it's hard to imagine musk is not going to continue to antagonize them, you know the road for them ahead regardless of what happens would seem not to be an easy one for this management team testimony be under scrutiny and musk will be criticizing them the whole way, isn't he? >> david, i think so i think to a certain extent they agree they are aligned with some of their poms, they think free speech is an important principle. you mentioned, you know, jack tweeting over the weekend. he may also disagree with some

of the content decisions and content moderation policies that twitter has been making. he mentioned himself, you know, the centralization he contributed to that on the internet and that's something he regrets. they are working on things, a beta project, to solve these issues between, you know, bird watch, which is content moderation from a public source and many other initiatives to decentralize the algorithms as well so i think they are aligned with what musk is doing. >> brian fitzgerald, thanks for joining us today shares of twitter up 3% right now. >> thanks, guys. well, as we head to a quick break, a look at our roadmap the rest of the hour it includes a closer look at rivian's rough ride. that company lost half of its market value since it went public back in november and for challenges still ahead. plus, another tech giant potentially facing a union vote

as apple employees in one new york city location are collecting signatures. we've got those details. and we'll check in with former fcc chair ajit pai on the regulatory scrutiny around musk and twitter as a lot more "squawk on the street" continues in a moment. we discover exciting new technologies. redefine who we are and how we want to lead our lives. basically, choose what we want our future to look like. so what's yours going to be?

welcome back to "squawk on the street." the world bank reducing its forecast for global growth by nearly a full percent in '22 citing the ukraine/russia conflict spikes in food and energy prices

having an outsized impact on developing prices. joining us to talk about spreads and where we're going, good to see you. thank you for the time this morning. >> pleasure being here thank you for having me. >> we have been watching spreads, particularly investment grade, last week you write in aggregate households and non-financial corporates are well positioned to withstand slower growth and rising rates is it as simple as that? >> it's a little bit more nuanced than that. look, the take away from the first quarter was, number one, credit spreads have, you know, modestly widened in the face of the historic sell-off in rates and going into the year i think most investors were very nervous about the ability of spreads to digest high rates. i think it worked out fine then, two, we have had a lot more dispersion in returns once you scratch a little bit under the surface at the bond level. you know, you mentioned the

household and corporate balance sheets yes, we are going into a cycle in a better position relative to, say, 2016. two examples there that service and capacity is the best we've seen in probably three decades. i know a lot of people are nervous about higher rates and what that could do it debt service and kpaust capacity, but we have plenty of room to absorb that. >> how would you characterize the incremental hit from russia/ukraine and there a sense that any of that might be reversible if she retically you wound up with some kind of ceasefire? >> i think what you have seen after the conflict is swift response by policy makers, particularly in areas that are very close to the epicenter of the ukraine/russia conflict and that's europe. and so as a result of that, i would say risk in some of the markets that we watch, like the sovereign bond markets or corporate bond market in europe have held up okay. where i think the jury is still

out is in terms of the knock on effects on supply chains and potentially disruptions there. we will see what the first quarter earnings seasons bring, but that's certainly for us, that will be something we will watch very closely guidance in terms of the ability of companies to withstand potential period of prolonged disruptions in supply chains but we do live in a world where inventories are thin and so it boils down to the ability of companies to, you know, potentially draw on current inventories or even better explore other sourcing, you know, options for commodity prices in particular. >> yeah, it's morgan let's talk high yield. the etf march lows, you basically have seen this divergence in recent days between high yield and the stock market and we talk so much, to your point, talk so much here at cnbc about the diversions we've seen in the treasury market versus equities. the fact you are seeing this

play out in high yield now, your take on that >> look, i think there is two views there. there is a view which sort of includes the rates component if you look at that, the performance of credit, high yield and ig, has been very poor in the first four months of the year then there is the spread view, which is really the price of credit risk and that's what we care about i would say in general credit has probably outperformed the equity market on a risk-adjusted basis. there is a number of reasons high yield specifically, 20% of the high yield market is actually commodities related sectors. it's energy and mining that compares to probably 3% in the s&p 500. so you have a sector mix that works in favor of credit markets today. also keep in mind that liquidity positions on balance sheets are the strongest we've seen probably ever to be honest the bulk of the proceeds from the massive amount of debt that was raised in 2020 and 2021 is

actually still comfortably sitting on corporate balance sheets that acts as a solid line of face in case risk sentiment deteriorates and explains why in high yield we have had a collapse in new issue volumes. there is a debate how much that affects lack of apspetite on th investor side, to tap the primary market i think a lot of it reflects the sa ability of issuers to withstand episodes of volatility and afford not going to the primary market. >> fascinating you do include a line about mortgages and housing, mortgage affordability. we talked about some of the redfin data out over the weekend saying maybe this is starting to crack prices a bit can you just talk about what your view is >> sure. look, up until now the housing market has been sort of caught in a tug-of-war about between very tight levels of inventories on the one hand and then

deteriorating affordability on the other hand what we've seen the last three months deteriorating housing affordability is starting to gain the upper hand a little bit. there are two drivers of that. one, sort of mechanical, but you had strong house appreciation for the last two years so the entry barrier for mortgages has gone up a little bit. then, obviously, more recently rates have gone up, but mortgage rates are about 5% for the first time in over a decade. over time we expect deteriorating affordability to sort of gain the upper hand here for 2023 we expect a return back to trend in terms of house price appreciation around 2.5, 3%. but for 2022 as a whole, i think it will likely be another strong year with house price appreciations in the order of 8.5, 9%. >> right fascinating stuff. we got to a lot of today appreciate it. good to see you. >> thank you. as we head to break, charles

schwab is under pressure after reporting a decline in profit and revenue both of which missed estimates. the financial firm says trading activity returned to moderate levels after, quote, extraordinary surge last year. those shares are down 10.5% right now, and weighing on the financial sector and the s&p more broadly we'll be right back. stay with us

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everyone will love. is this wagging? - good right? first amazon now potentially apple as employees of apple's grand central location in new york city are taking steps to unionize steve has the latest for us. >> harks david that's right apple store plemployees in new york announcing over the weekend they are taking tsteps to form union. first effort at an apple store they call themselves fruit stand workers united and will collect signatures from employees to form their union on their website they say their main issue it to make sure -- unionization efforts, these apple employees are partnering with workers united and that's the same union organizing

starbucks employees across the country. and a few weeks ago amazon warehouse workers in citi voted to unionize after a second failed effort in alabama apple tells me they are, quote, pleased to offer strong compensation and benefits that includes wages starting at 20 bucks an hour and stock grants and parental leave that's well into the high end of compensation for retail employees. but the organizers are pointing to the rising costs of living and the fact that apple is the most valuable company in the world for why they deserve more and claim apple pays as little as possible for the work force there is a long way to go for the fruit stand workers. if they get enough signatures they can petition to hold an election after that if they win the election, then they can start negotiating with apple guys, back to you. >> by the way, verizon and fifth third also raising their moral outrage to 20 as of today.inimum wage to 20 as of today >> after the break, musk and

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elon musk this morning, a potential deal could, obviously, draw regulatory scrutiny for more on that joined by former fcc chairman ajit pai what a pleasure to have you back and to talk about this i wonder what is going through your mind, especially given all of the ways in which free speech, quote, unquote, has surrounded this particular episode? >> it's been fascinating see it transpire. thanks for having me on. five years ago i made a speech as fcc chairman and i pointed out one of the parts internet economy not open was some of the social media platforms. interesting seeing musk's takeover attempt some quarters that commitment has been called into question. >> right

he kind of elaborated on this on thursday at the teddy vent but essentially if i'm understanding, an algorithm is visible, right transparency and the fwrim and the way that inflates and promotes speech in general s that how regulators would define it >> i think it depend on a couple of things. number one, what the regulator is that's looking at this. secondly, what exactly the algorithm is and what it's showing. part of the problem here is that twitter for users across the political spectrum has been operating as a black box people don't have insight how twitter is making the decisions or why which is why it raises a lot of controversy the point musk is making is that, look, this is a social media platform it should be a forum for free speech and free expression when the company -- when the platform seems to make a lot of decisions in terms of moderation that exclude people from that digital public square, that raises the question, what

exactly is the purpose of the company? i the point musk is making there is a correlation between the lack of free speech commitment and the stock price, which has been, obviously, static from the first day to closed at 44.90 in 2013. >> do you think regulators would see a company owned by the world's richest man as preferable to, quote, big tech >> it's interesting. i would hope that the regulators focus on the core question which is not the identity of the purported takeover candidate but our shareholders, are consumers being served by the transition of ownership if it comes to pass the point is people are focusing on the personality or tweets as opposed to is the current board delivering shareholder value there are legal strategies the board is engaging in in terms of the poison pill to stave off a takeover attempt it's object occurring that question are shareholders better off as

opposed to the status quo or, you know, potentially acquisition bay a strategic or a private equity firm. >> yeah. it's david from a straight regulatory point of view, obviously, antitrust, and even fcc if it were to be involved, there doesn't seem to be a lot of potential opposition i imagine if a large it can were to try to buy twitter, which seems unlikely from. musk's perspective it has to be a straight road in terms of getting regulatory okay, doesn't it >> one would think tesla and other companies are not direct competitors of twitter. you wouldn't see that hor sfwlonl problem as the antitrust regulators would call it it's interesting how some of the political motivations of regulators or former regulators are coming to the fore "the washington post," for example, against musk's takeover attempts published an article citing the recent head of the antitrust authority as well as work at the ftc said it troubled

him that you could have one -- a person having -- as he put it, monopoly control a social media platform and some might say if you have a problem with that, build your own twitter don't block, you know, potentially pro-competitive, pro-shareholder transactions like this. forkz. >> yeah. last i checked a guy named bezos owns "the washington post. the murdoch family controls fox. the red stone family controls cbs. and mr. zuckerberg has voting control over facebook. i'm not quite sure what we're debuting here. >> yeah, one of the most fascinating aspects is the focus on musk. i think a lot of the legacy media corporations themselves which have, as you mentioned, deep-pocketed owners are expressing great concern about musk controlling a social media platform to me it's one of the more political arguments i guess as opposed to financial arguments about all of this. >> ajit, it's morgan saying musk doesn't buy twitter or the deal doesn't come to

fruition does this plant the seeds for more competition to come into this space where social media is concerned? we have been talking so much about monopolistic it is, controlled by a handful of these companies. does this basically kick the door down for that not to be the case any more? >> i think it certainly opens the door a little bit wider. you are seeing newer platforms like tiktok coming in and providing more competition and twitter the current strategy fairly clearly is let's just build that wall even higher. that is the strategy predicated on the advertising, revenue that they have, some 85% as one of your previous guests pointed out. however, over time that risk attrition from those who value the platform as on open digital public square and they may gravitate over to some of the other platforms despite the fact that there are barriers to entry there. i think that's part of the argument that musk is making look, i can unlock the value twitter has as a dominant social

media platform but you need to embrace a wider range of free speech, free speakers, so to speak, in order to unlock that value. >> just to dig into that further, the fact that so many platforms have had these advertising-based business models, is that subject to change as well if so, what does that potentially look like from a regulatory standpoint? >> i don't think there would be tremendous scrutiny in terms if they shifted from an advertising-based model to a subscription-based model that would be a commercial concern that shareholders and the board whould have an interesting in so long as the core consumer protection investor protection regulations are adhered to, i doubt they would run a fly speck business model it's a vet that the board and management team has to make within the broad guardrails. >> finally, ajit, b of a asked this question over the weekend it's a little interesting that the acquisition is being framed as a battle for the future of free speech where it's a

platform that has only 9 million daus, more than pinterest, a site you get insdeas for wiltsc throw pillars. does that matter to regulators >> thi don't think so you would want to figure out the structure of the social media marketplace as it were and so you would want to figure out that denominator for those purposes it nay feed i -- may feed into the antitrust analysis the fact that this platform draws a lot of journalists, opinion makers, a lot of corporate leaders and the like, that gives twitter a center of gravity some other platforms may not have so i think that's part of the reason there is an outside conversation about elon musk's takeover attempt and what it means for the platform because so many of us are on it, use it, benefit from it. twitter is larger than some of those social media platforms in the common consciousness. >> yeah, that's well said.

well, we will have plenty of chances to talk about it and it gives us a good excuse to check in with you. ajit, thank you. >> great to see you, too. >> we are sealing it unfold on twitter. a look at crypto prices as bitcoin dips back below 40k today. s we will be right back. stay with us adds the s&p hangs on to modest gains 4403

welcome back to "squawk on the street." the global jet's etf break the four-day win streak signaling some turbulence for airlines down fractionally right now. despite delta reporting strong numbers, the street anticipating headwinds for the travel names, you including united, american, and alaska air it's a mixed picture now our next guest is kalin's helene becker and she has highlighted the names as her top picks

the results we got from delta last week, how does it set us up for the rest of earnings season for the airlines what are you watching for as we get some of these names this week >> hi,morgan the number one thing we are concerned about really has to do with the summer and how traffic is shaping up, number one. number two, what the companies think about with respect to mask mandates going away on may -- what is it now, may 2nd or 3rd and whether we have to continue testing. probably the most important thing is staffing. delta said that they are staffed up they have hired 15,000 people over the last 18 months, but we know that american and united, for example, are hiring between 150 and 200 pilots a month alone. then united had a job fair last week in chicago where they were looking for 1,000 people so the airlines are having the same issues that you guys have

been talking about for other companies and that's causing real capacity concerns for the industry right now >> of course you know i will ask about fuel prices. >> yes. >> you know, with crude trading well above $100 a barrel and jet fuel near record highs in recent weeks, recent months as well, how much of that cost can be pushed out to the consumer currently? >> yeah, so our thought is that maybe 60% gets pushed doout to e customer remember that airline tickets are generally sold 90 days in advance, right about 60% of tickets are sold 90 days in advance, and then the rest of the tickets are sold within the month of travel so when you think about that, it's -- it takes three or four months to recoup that increase, and so we're thinking maybe 60% that's recouped in the short term but the other thing we're really worried about right now is crack

spreads, especially in new york harbor, which are $140, or around $3 a gallon, which is unheard of we have never seen anything like that >> it's david. back to staffing you mentioned of course the need to hire, job fairs and the like. i would assume then wages are going have to go up as well, and my question is, are they, and if so, what's that going to mean for margins? >> yeah, hi, david exactly so we are thinking that every airline with one or two exceptions is in pilot negotiations right now and starting pay at american, delta and united is around $90 an hour for first-year first officers we are expecting that to go over $100 and we are expecting the higher end pilots like the 777 guys and gals doing 333 an hour will get up to 350 so you are seeing that scale

move up. but then to your other point, if you are airline like alaska air with a hub in seattle where the corporate headquarters are as well, you are competing with amazon and microsoft for talent. as you think about it, in order to compete and retain high-quality talent, you have to raise salaries up and down the board. we are looking at that inflation in not only in fuel costs as morgan asked, but also looking at it in salaries. and that is going to pressure margins unless the airlines can recoup more of the increases in revenue and, of course, that leads to demand destruction down the line >> although we're still looking at delta's quarter last week as particularly the premium travel element and the amex element i wonder if that's done anything to your view of how corporate travel is going to recover long term >> two points there. yes, we're thinking that

corporate gets back to 80 or 90% of pre-pandemic levels, that once you get to that -- once people return to the office, they are comfortable traveling again. i mean, we've talked about this before it's hard to tell your boss you don't want to go to the office when you are traveling for your vacation so we are expecting that o corporate travel will come back at least, you know, 80% of the way, 90% of the way. the numbers the last few days, i think, morgan, earlier in this, you know, this morning you mentioned that travel was strong the one thing that i would say about travel is we can't get over pre-pandemic levels until we get international back as well and i'm not quite ready to give up my view that we're going to have a very good summer on the transatlantic. delta's management team talked about that, too. they said they thought they would have a western europe, a

good summer. we are thinking that will be the case and then if you eliminate testing to come back into the united states, we think we will be well above pre-pandemic levels because people want to travel they have gotten everything they need they spent the past couple of years buying stuff for their houses and now they want to get out and about and, obviously, air travel is a part of that. >> yeah, it's a shift from goods to services that we have been talking about for some time now. okay so last question for you here, helene what stock to buy right now, especially given the fact we have seen some of these names move higher in recent days. >> yeah. so our best idea is united, ual. our view is that you get the domestic, because they are 50% domestic you get the international exposure, 50% international. big on the trans atlanta i can t they have added a lot of leisure cities, like bergen in norway,

leisure destinations to appeal to the traveler. plus, they added some london service, which is the number one market for business travelers. so we are starting to see, you know, as we talked earlier, that come back. so that would be our best idea plus, they are taking the lead on sustainability. if you are focused on that and you need to have that exposure in your portfolio, we think united fits that bill. >> helene becker, thanks for joining us. >> thanks, morgan. coming up in the next hour on tech it check, a deep dive on chinese internet names shares of didi global continue to sell off and the k web on pace for the third monthly loss in a row don't go anywhere. this thing, it's making me get an ice bath again. what do you mean? these straps are mind-blowing! they collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery. and you are? i'm an investor...in invesco qqq,

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ev startup rivian had a rough 2022, at least since going public last november and still more challenges remain ahead our phil lebeau has that part of the story for us phil >> david, the biggest challenge is production and ramping it up. when we went inside the rivian plant in central illinois last week, we got a chance to see where this company is right now. now, the good news is that things are improving though the chip shortage, the founder and ceo said, look, that will last into 2023, not just for rivian but the entire auto industry but he is feeling better as they gradually increase production. >> been challenging from a supply chain point of view with this environment but we're seeing daily records being set within our plant but really that's driven by how many components we can get,

particularly in the semiconductor space, but a lot of really good progress happening there and we're excited for what's in front of us >> that's the story really for all of the automakers, not just for rivian we spent the day with rj their target 25,000 vehicles this year. they also, by the way, that production target also includes the amazon delivery van, which they have begun production of which we saw coming off the assembly line there. the order from amazon, by the way, is for 100,000 of those electric delivery vans that's a nice backstop, morgan, as this company has 83,000 consumer, commercial reservations, if you will, for the r 1t pickup truck and the suv. again, this is a case where the company, the stock is trending lower today but this is a case where production will be the ultimate judge of how this stock moves as they ramp production, meet targets then you should see it start to improve a little bit. morgan >> phil lebeau, thank you. we have been talking about him all morning, again elon musk, we're going to stick

with him we're going to put the twitter takeover talk aside, though. one of the billion's own companies is in focus this week as well. spacex launching a spy satellite to orbit for the u.s. national reconnaissance office yesterday. reused falcon 9 rocket carried the payload. from the space force base in california after separation from the upper stage, spacex successfully recovered the booster. again, the 114th time a booster has been recovered by spacex the first time the nro green lit a launch using a previously flown rocket as well this was spacex's 14th falcon nine mission of 2022 that is incredibly impressive given that we are, what, 15, 16 weeks into the year? by the way, there's more on tap this week with the first-ever private crew to the international space station. axiom ax 1 mission returning to earth this wednesday in a splash-down for spacex's dragon capsule off the florida coast.

plus another starlink launch scheduled this week and then as soon as this saturday another human space flight, the crew for nasa, which is under the commercial crew program, will send four professional government astronauts to the iss as well. we'll be watching all of that. that will do it for "squawk on the street," though. "techcheck" starts now ♪ good monday morning, welcome to "techcheck" i'm carl quintanilla with deirdre bosa live in miami today talking some tech renaissance julia boorstin will talk some twitter. lo toney will join us. jon fortt is off elon musk and the poison pill. what that means for twitter and what might come next. plus, ecommerce hitting a speed bump on the questions about the strategy we'll talk outlook with the ceo of rent the runway apple, the best performing faang name between union push and supply head winds.