cdc. private equity firm could become part of the bid for twitter. details straight ahead. and we could say this every morning for the next three weeks. more corporate earnings coming your way this hour we are expecting results from johnson & johnson. we will speak with the health care giant cfo he's woke. joe woke tuesday april 19th, 2022 "squawk box" begins right now. >> good morning. welcome to "squawk box" here on cnbc live at the nasdaq market site in times square. i'm andrew ross sorkin along with joe kernen. becky is off today we start with the conversation with masks and what that means

for business and then the dow is off 43 points. s&p 500 off 10 points. treasury yields at the 10-year note at 2.886% >> yesterday it was at 3 we haven't seen that in a while. years and years. we are not far we could be there. 2.85 2.75 before that i was adding >> what is the number you think de does the job of tamping down demand >> volker was 13 >> what is the number? >> i don't thinknow how it work. you raise rates to slow the economy to weaken demand which then affects what you are trying to do which is the opposite of what you are trying to do.

the best gdp growth. the strange way to try to control things >> in this case, maybe the only way. >> i know. that's why it is a blunt instrument tool and bad when with we get to the point you saw bullard. 75 if 50 doesn't do it, put 70 on the table. there were times in the past when it was 100 basis point moves. we got that out of the way let's talk about this. this was not me. i have no opinion. if you are looking for someone to get mad at, don't get mad at me get mad at the judge or whomever. >> she's in my sights. >> perfect state for you >> you said it perfectly >> tsa is halting enforcement of masking on public

transportation yes, that's right. this follows a ruling that vacated the biden administration national covid mask mandate for travelers. a federal judge in florida ruled that the cdc overstepped its authority. failed to explain its reason and violated federal procedures when it did not allow public comment on the rule. late yesterday, airlines responded. united, delta, southwest, spirit all making masks optional for crew members and passengers. this is something they have been pushing for. de delta's ceo ed bastian on "squawk box" last week >> i feel it should be lifted and individuals and employees make decisions and personal accountability for health on board or planes. the air is the cleanest air you will find anywhere with the hepa

filters and cleanliness of the airplanes. it is time to let the masks go and let the people decide. >> uber said as of today masks are no longer required for riders and drivers the biden administration official says the cdc recommends people wear masks on public transit. sarah nelson from the flight attendants association called for calm on airplanes. she is not really weighing in heavily. doesn't want more confrontation based on you are not wearing one. i am wearing one people don't need to fly with you. i would not recommend that we will speak with sara in the 8:00 a.m. hour her organization represents the flight attendants. there are a lot of reasons i don't ride the subways they don't have the same air circulation as planes. you think you walk out at the

nasdaq, there is no one with masks on at the ipo. at least you would rather have them there than in the plane if you are circulating and a plane is where you would think it is okay to take the mask off. >> i have a couple of thoughts. >> i know you do you don't need me or run these by me. >> yno >> i don't need to respond i'll listen. i might not nod. >> because we showed the video of ed basitan. i adadore. i disagree with this issue this is somebody who is makeing the argument on personal accountability the airlines were the first to say we cannot be accountable we need your money this idea of personal accountability on one side and socialism when it works for them

on the other side. to me, that is blasphemy point one. two, i think that is a larger question longer term whether we should wear masks or not today from the medical perspective is open for debate in areas and whatnot. the idea that a judge in this case is making that determination makes this very complicated. not for this particular moment in this particular variant makes it complicated in the future insofar as if there are other variants of the coronavirus or something else that actually does kill people and by the way, this still does kill people, but does it on levels that are politically less acceptable i think it the will make it hard for any administration, republican, democrat, whatever, to implement measures that actually could save people lives. either way. >> there are people that wanted this done long ago

>> i know that >> there is a whole group of individuals. >> you can argue the cdc made a lot of mistakes along the way and the administration had -- >> they say this was all to start with a whole civil liberties question you see what is happening in china. that is the one end. the other end of what could have been done. did you see the study of which states fared best? new york and new jersey and then florida and texas? >> some debate about that in how the -- >> garbage in and garbage out. there are people that are not like you in a lot of ways and the whole thing overdone all the lockdowns and all the masks. everything we did because it was mostly unfortunately people that were susceptible and elderly and

underlining conditions not very healthy. >> we have all done things in the country to protect minority. we have. by the way, there is wheelchair access all over america and for good reason. other people not so much. >> we don't take away rights from the majority that are god given and been around forever. not part of the equation we try to balance the two things we try to balance not only saving lives, but saving livelihoods. a lot of kids might be permanently scarred or didn't need mask. they may have been low risk to start with >> i wish this wasn't the determination of the judge, but determination of the medical professionals. having said that, i know people don't believe in medical professionals. this whole thing has been politicized. why is it this is a judge who is

a republican in florida and yet on the other side, democrats who have a different story it has become religious. >> i'm gratified any activist or judge on the supreme court that are not strict constitutionalist, i'm glad you are calling them out rather than deciding how you interpret law i did not know you felt that way about judges making activist decisions. we will see when there are 16 supreme court justices, if people have their way, they better be strict consti constitu constitutionalists these judges in l.a. and san francisco can weigh in on everything the florida republican is really over stepping her bounds with these masks. >> i'm suggesting it will make it very difficult when there actually are mention actions >> if there is, trust me, at

this point, it will be hard. what will happen >> i think if there is a deadly virus we'll do the right thing i don't think you need the government to make people do the right thing. >> you think it was done right way the first time >> i know. i know i know that. around the world, because it was a pandemic and it was much worse than a normal pandemic worse than anything we have seen in 100 years >> more people would have died that's the truth. >> you can say that about a lot of things when you try to balance personal freedom against what you would call less than 1% mortality rate probably. we would not do a lot of things. people would never have another stick of butter. you would mandate them to be on a treadmill every day. smoking? god forbid you would never have another piece of fried chicken

we can save a lot of lives doing a lot of things. i know you think it takes a village. i know that. people are responsible if i wore a mask, it would be for me i'm not going to wear a mask for you for the rest of my life. i'm not. >> i understand that the question -- take this back to the business context. we have socialized >> i'm happy i can go on a plane without wearing a mask >> i understand. >> i was on a six-hour flight to the super bowl and it was horrible >> personal accountability on one end and let's give everybody the money. everybody should get money throw the money out. >> i'll not get it >> that's a business argument. >> we need the businesses to survive. >> take the airlines out why didn't we say everybody should have personal accountability for everything. >> i try to. i try to i don't want you to tell me what my personal accountability is. >> i appreciate that i'm suggesting to you that there is a larger sort of ecosystem we're all living in.

we decided and we talk about free markets, but it is not actually that free we decided to pick winners and losers and your friend elon musk and his business supported by the government in many ways. personal accountability and do you it this way. >> i sbow my head now to elon musk >> i admire the man for so long. i used to criticize him. i praise him i look at his success and him and i say to myself, there is somebody who diis a great entrepreneur he took advantage of the government with the tax credits. >> you are in the minority in a lot of these things now. i understand it. i love you and it's been how

long 12 years >> been together a long time >> longer than a lot of marriages. you know about marriages people see therapists. we haven't done that >> that's what this is every morning. coming up -- you know what our evil producer is going to book a bunch of people to keep you going. coming up, latest on twitter who can buy the company and how they can do it the first interview with the cfo of johnson & johnson following the first quarter results. that wasn't a great ruling from west virginia on johnson & johnson. i guess it was good. stay tuned you are watching "squawk box" on cnbc >> announcer: today's big number $20 million. that was the median pay for the ceos of the 100 largest u.s.

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st. louis fed president jim bullard said he would not rule out the possibility of the 75

basis point hike in the rate cycle. in the conversation moderated by steve liesman, bullard pushed the case for reaching 3.5% fund rate by the end of the year. here is bullard. >> it has the hawkish shift since november which caused volatility in the market i am sympathetic at this point, quite a bit has been priced in we would be following through and there may be corners of the market which haven't adjusted yet. >> to reach the 3.5% rate target by the end of the year, bullard is hoping for a .50% rate hike at all six fed meetings remaining this year. we will get more fed speak later

this year when raphael bostic joins "closing bell" this afternoon. andrew, the terminal rates that we talk about that will be needed and that is necessary to obtain everything on historical basis seems low to me. it will work you don't need to get back to historic levels. for most of my career, you know, 6% or 7% >> you think that is where we're going? >> no. i think we e don't need to do i. i still think my thesis about how quickly things happening part of the singular ity that things happen now more quickly i think technology is moving so quickly, it is putting a damper on inflation cathie wood. >> all the benefits of

technology make it so we don't need -- wouldn't it be nice if there was not something called inflation. wouldn't you like to just leave the punch bowl there would you like to be drunk all the time >> if you never had to wake up with the hangover. >> like jaegermeister. i like clean patron. if you stay at zero, it would be great. you can't. i think maybe lower absolute levels are possible to get to where we want to be because of all of the great things that are happening. we cannot overstate what the internet did for price discovery and amazon you have a spare room. suddenly you are using that. you have the car you know, sign up to be a

part-time uber driver. >> efficiency in the system. >> it has driven down. earnings will take center stage. we will hear from johnson & johnson and hasbro, bro, shortly. investors await numbers from netflix and johnson & johnson and ibm after the bell let's talk marketing with g gabriella and joanne feeney. i think both of you will hear the conversation you can kick it off with that, joanne in reading your notes, it looked like -- and ben franklin, the great series you could list, joanne, ten good things and ten concerning things that the markets are facing right now. >> oh, yeah. absolutely, joe.

a very uncertain time. a quarter ago waiting for earnings, we had the omicron wave now the russian invasion of ukraine. china zero covid policy. it is slowing down production and goods. on the positive side, we have the strong industrial production number on friday consumer strength still happening. reports of use of credit cards consumers are still out spending you know, we are still in the recovery period in the u.s. economy. those sanctions are really more than effecting europe. we should be wary of the earnings reports guidance. we have to be cautious when we look at the inflation numbers, we should look at where it passes through with sales and profits. i think folks are too cautious on the valuations that come down sharply. watch for the signals we get from companies some areas of consumer that will pull back hard and data centers

and 5g still a lot of good opportunities out there. good time to shop for gbargains >> gabrielle, i'll be with you in a minute. joanne, do you think the fund rates are enough to get us to normal it is not the way it used to be in our careers >> you are absolutely right, joe. think about what will happen this year? more semiconductor capacity online factories turning out chips mid-year that will help the auto industry and appliances and home builders you know, with zero covid policy in china, we are still getting more out of them over the year, we will get supply constraint easing up. it will help the inflation problem as high inflation and other constraint pulls back a bit. it is hard to tell how much the fed fund rate will move um and

how that leads into the 10-year and long-term value of stocks. >> we have a longdown in china and drtroubling headlines every day from russia and ukraine. six straight 50-basis rate hikes is the discussion today. do you think the markets will react? >> we don't think we will get as many as bullard suggested yesterday. he is speaking from his personal opinion. the broader read from the committee is they would like to start getting closer to neutral. that seems like really a realistic expectation over the next 12 months to get closer to 2.5% on the fed funds. what is driving some of the negative sentiment in the market this month is what happens after

that how much above neutral does the fed have to take interest rates next year are in order to cool inflation? what happens with the economy after that there are a lot more possible paths for next year for the economy. that is what should keep volatility elevated across asset classes. we do think there are more negatives that have emerged over the next few months with recession problabilityprobabilis it is perfectly reasonreasonabl. the way to square the circle of the negative and positive is to bring risk down closer to neutral. let's not go too far in under weight risk. it is too early for that same by the sectors with the equity market. it is too early to broadly overweighting defenses better to dip the toe in the

sector like health care. >> people made the point if you have a fever and the idea that okay, we'll give you a 1/8 dose of tylenol for a fever you want to be at 3.5. if you want to go to 3.5, you see the rationale is to get there immediately. you can't dislocate the markets. that is not the way you do it. it could argue for a 75 basis point move on one of the occasions, gabriella >> i think consensus is looking for 50-point basis point hikes in may and june. remember, we he did not see that last cycle that would be already a more hawkish move and getting to 2.5% which is neutral over 12 months is faster than what we he saw last time. there is already a quicker move

to neutral getting from here to 3.5% and slamming on the brakes is too much, too fast. >> i think we have to go you agree with this? >> yeah joe, we should be ready to go higher there are ways to protect the portfolio. build in solid dividend stocks and growth potential to ride this out that is the long-term investor has to remember. rates can only go so high. earnings can go higher year over year long-term investors ride the period >> all right thank you. i don't know have a good week it's only tuesday. >> only tuesday. >> first day of the rest of our lives after tax day. did you get an extension i won't ask you.

i need another extension i need another one it is always extension day never tax day for me >> keeps going extend through october >> yeah. you? coming up, which private equity giant is considering a financing bid for twitter? gae latest chapter in the sa worthy of a tweet storm. is it a tweet storm? stay tuned you are watching "squawk box." >> announcer: this cnbc program is sponsored by baird. visit bairddifference.com. people have their money just sitting around doing nothing... that's bad, they shouldn't do that. they're getting crushed by inflation. well, i feel for them. they're taking financial advice from memes. [baby spits out milk] i'll get my onesies®. ♪ “baby one more time” by britney spears ♪ good to have you back, old friend. yeah, eyes on the road, benny. welcome to a new chapter in investing. [ding]

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the company suspended covid sales due to a surplus also announced a dividend hike of 6.6%. we will talk about this and get more on what the future outlook in terms of revenue and everything else looks like for the company. that is a big initial reaction we're seeing in the shares we'll talk to joe wolk of johnson & johnson. cfo. we'll talk to him in 15 minutes. a judge ruling that amazon must reinstate a warehouse worker fired in the early days of the pandemic. joe brice led for protest over amazon to do more against covid-19 he was fired

now wonder what the judge in florida would think this morning. >> people are weighing in on that they like the comparison to the constitutionalists this is when judges need to weigh in a federal agency not elected officials. you need a court to decide whether they have the authority to do it this was it. >> do you think -- if new york city said wear the mask on the subway here. >> you understand anything states right >> of course what do you do about federal issues the issue is -- >> i still think it might not be well suited in the overall union. i think we need to split things up i'm kidding. we got to go. coming up, what the end of

the mask mandate on planes means for had this country's biggest airlines april is financial literacy month or the lack of featuring some of the contributors here is kari firestone with how financial literacy is a great equalizer. >> i think financial literacy is important for the country because it is a great equalizer. it allows people to be independent. it gives people a playing field because they understand how to deal with their money and the importance of saving, income, cash flow and debt if you don't have that, you create a class of people that do understand and those that do not. that inowh docci a about.emraesre >> announcer: executive edge is response sponsored by at&t busis

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now to the latest in the fight over the future of twitter. as the world turns apollo global management is talking about financing the takeover for the company a source familiar with the matter says apollo is not interested in the consortium any financing would come in the

preferred equity which would back and use twitter and elon musk's stock as collateral in such a transaction. >> cool. fascinating. people are circling and the word is elon has been approached by the people they thought on to give him help. >> i imagine people will go straight to twitter and approach them directly and if there will be individual support. >> apollo could be with elon or not with elon. who knows? you might make calls and get some insight on how that might work it is interesting. a guy with $5 billion is pretty well off he couldn't approach twitter a guy with $250 billion, cash poor it is stock. the stock could go $1,000 or

$5,000 or less than $1 thunde$1,000 he can come up with it why he wants to do it for the rest of us for the festivus. >> is he doing it for the rest of us? >> he is in my view, andrew, yes. to stop with what we've seen the way that social media has picked aside >> do you think anybody who wants to buy a company like that -- >> really wants to make money on it. >> not for money >> what? >> power you don't think? >> he doesn't own a home he lives with friends. >> you think this is a philanthropic effort >> yes i nod my head when i say elon musk just like that. coming up, millions of dollars. >> i'll have a debate with you

on the carpet. >> if i had a scientific execut discussion with him. there will be a day. i seriously doubt the seas will rise ten feet by the year 2100 the arctic is not gone millions of dollars of crypto is targeted by criminals all over the world according to the u.s. secret service which is cracking down on digital asset fraud coming up, cnbc exclusive inside the he secret service center fo tracking cryptocurrency. "squawk box" will be right back. your record label is taking off.

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the united states secret service protecting the president is not the sole purpose. they are cracking down on crypto fraud. from scams to international fraud rings, fraudster are billions illegal assets. eamon javers spoke with the agency's top official overseeing the crypto investigation about how these criminals actually move their money >> reporter: we're inside the rarely seen secure room in washington

>> what is this facility >> right now, we're standing at u.s. secret service headquarters the global investigation center. that is our hub for our most complex and impactful international cases. >> reporter: no longer just capturing counterfeit money, the secret service is tracking illicit bitcoin on the blockchain which is the public ledger for all crypto ledgers >> secret service is now the primary agency investigating the illicit use of digital assets. >> reporter: david smith is the assistant director of the office of investigations. >> it was a public ledger and shared with everyone with the computing power to include law enforcement. the secret service is not doing anything that wasn't the original intent of the blockchain we are using the same mechanisms intended >> would you say crypto is more

traceable? >> it is >> reporter: so far, the numbers are staggering the agency seized more than $102 million of crypto in 254 cases here we see analysts and agents examining wallet addresses. >> they are making relationships and looking where the hot spots are to see where the activity is occurring and focusing on those areas. one of the things in the benefit of the bad guys is the volume of the activity >> are you using the same software the rest of us have access to? >> you follow a wallet, it is no different than an email address with identification and once a person and another person make a transaction and that gets into the blockchain, we have the ability to follow that email address or wallet address, if you will, and trace it through the blockchain >> reporter: criminals use techniques to obscure the digital money. something smith compares to a house of mirrors

>> all of them exist exactly to keep law enforcement off the bad guy's trail. they want to go into the blockchain and make as many transfers as possible to lose us like an old fashion surveillance >> reporter: crypto cases cracked by the secret service of the operation in romania it targeted 900 victims in the united states. and an a ring of russian speaking criminals who threatened ransomware attacks. the use of money mules who may be recruited by a fraudster. >> they are duped into moving the money? >> correct it is a matter of trying to make a quick buck they don't have criminal intent. >> reporter: and to protect investments, crypto criminals watch the market they convert bitcoin into stablecoin which is pegged to a national currency. >> they want to avoid the market

volatility >> interesting they are going after stablecoin they hate that volatility. it is a roller coaster ride every day. the criminals hate that. >> the criminals hate that, too. they are dealing with other criminals and some may apply consequences >> if your bitcoin crashes, you may have a problem. >> based on who you transacted with >> criminals love crypto because of the global nature of the coins and ease of using them david smith told me voluatility and traceability is not what they thought it would be a few years ago. joe. >> i don't know that much about it i have one i can't imagine if i needed to keep or if it was a private wallet how do they identify private

wallets? i don't know how >> reporter: as you know, the blockchain is pub. everybody can see where the cryptocurrency is in all of the wallets out there. the terrific for law enforcement matching up the wallet address with the real-world name and identity of a person out there and going to get that impoperson what they hear is the traditional techniques of law enforcement and subpoenas to crypto exchanges compliant with u.s. law enforcement and matching up data they have of other wallets out there which are known identities if the unknown wallet is transacting with a wallet and they know that person's identity they can go down the chain and interview and find out where that money is coming from. it is good old fashion investigative leg work here. half the job is done for them. they see where the money is at any given time they have to figure out who controls it. >> thanks, eamon good job >> you bet. in a bit when we come back,

we are live with johnson & f hnson cfo joe wolk straight ofearnings stay tuned you are watching "squawk box" here on cnbc here, there has to be someone here making sure everything is safe. secure. consistent. so log in from here. or here. assured that someone is here ready to fix anything. anytime. even here. that's because nobody... and i mean nobody... makes hybrid work, work better. what if you could have the perspective to see more? at morgan stanley, a global collective of thought leaders offers investors a broader view. ♪♪ we see companies protecting the bottom line by putting people first. we see a bright future, still hungry for the ingenuity of those ready for the next challenge. today, we are translating decades of experience

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welcome back to squawk johnson & johnson posting mixed first quarter results. want to get straight to meg terrell who joins us now with a very special guest good morning to you, meg >> andrew, thanks so much. the cfo of j&j joins us now. thanks for being with us this morning. now, let's start with the quarter. andrew mentioned it was mix. you beat on your adjusted earnings, slight miss on revenue, and just looking through the numbers it looks like that miz was centered on the pharmaceuticals position and maybe driven by the covid

vaccine sales mb coming in less than what analysts were looking for. is that right? tell us about the drivers? >> good morning, meg pleasure to be here with you, and you have it absolutely right in terms of the start to the year i would say we're very pleased. we think it was a solid start amongst a number of dynamics going on across all industries but you look there's positive narratives in all three of our segments med tech really led the growth for our company. our strong platforms of electrophysiology, eye health became stronger. and we saw upticks in orthopedics and general and advanced surgery consumer continues to do well with market products over over-the-counter medicines continuing to solidify their market leading positions in the early start of the year in january when it was pretty prevalent in north america there

was slow activity in terms of new prescriptions. we saw strong activity towards the second half of march overall we're very pleased and we were able to maintain our adjusted operation earnings per share guidance and increased our dividends as well. you have it absolutely right, meg. the slight miss was really around the covid-19 vaccine, and quite frankly it met our internal expectations. it was just a disconnect to how the street thought it would play out over the year. >> tell us about that decision do you think this is unique to j&j, or are you guys kind of seeing that dynamic play out for covid vaccines more broadly? >> well, meg, you know, i'll let the other manufacturers speak on their behalf, but i do think it is a phenomena across all

vaccines if you look at the supply surplus. they have limited capacity in terms of refrigeration, in terms of just administrative getting shots in arms, so that's created a bit 06 a backlog there, but we also had latitude in that our vaccine remember was not-for-profit so we were not dependent on it for our earnings per share guidance, and it's quite unusual to be frank we even give product specific guidance. we did it last year because we understood the street had an expectation or at least excitement around understanding how vaccine sales might play out, but it was never material >> i want to ask you also about some of the macro effects affecting the quarter. i know folks have been focused on inflation, and you also say

here growth and consumer health was prlgsy offset by external comply constraints mainly in the skin, health and beauty segment. >> as we saw last year there's been commodity scarcity on a number of fronts not only some product ingredients but also packaging materials. that maz played out into the first quarter. our demand in terms of product on shelf is very, very strong. it's just we have to get more product out there. we think in the second half it improves and in the second quarter it improves even more. again, our over-the-counter medicines continue to do extremely well >> how's inflation affecting things there >> we had a very robus assumption coming that you the year when we provided guidance in january with respect to inflation throughout the pnl we've seen that tick up to unfavorableability by about 10 or 15% again, i think this speaks to

the depth and breadth of business at johnson & johnson we're able to absorb it, but it is something we continue to monitor, and we're expecting improvement throughout the year. >> thanks for being with us this morning. we appreciate it >> thank you, meg. have a great day >> thank you and joe, back to you. coming up next hour, the biden administration reversing itself to some extent on additional oil drilling on federal land what do investors and environmentalists think about th atto is on the way as atto is on the way as "squawk box" rolls on. or worse, that it was some way to take your home. it's just a loan designed for older homeowners and it's helped over a million americans.

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a busy day of earnings. we've already heard from johnson & johnson. other big names are on the way we're going to give you a break down what you need to watch all coming up. and maskless at 30,000 feet once again airlines changing their rules mid-flight, and masks being ripped off literally in the air as a judge says the rule is unlawful and shares of twitter on the move yet again this morning on news that apollo global

considering helping to finance a potential takeover of a private deal with the social media company. that story and more as the second hour of "squawk box" begins right now. good morning and welcome back to "squawk box" right here on cnbc. we're live at the nasdaq market site in tiemds square. becky is out today take a look at the futures this morning as we grapple with questions about inflation and what the fed may or may not do but right now the dow appearing to get closer to green we're off about three points right now. s&p 500 off about 2 points, but it's a lot better than where we were even an hour ago. >> where's the ten-year? >> shall we flip the board

around as they say we're going to show you the ten-year note floating with 3. >> earnings as well almost 2.9 let's get right to dom chu who will give us some of the individual premarket movers. >> watching what's happening now with the 30-yearlong bond. earnings a big focus right now we've got about a dozen s&p 500 companies reporting earnings throughout the course of the day. the headliners so far this morning including a component you just heard about johnson & johnson, a big interview there with the chief financial officer discussing some of those results. johnson & johnson right now just off about 1.5%, shaving roughly 10 to 12 points off the dow right now given the kind of moves we're seeing johnson & johnson comes out with revenues that beat estimates that's forecast weighing on some of those shares. some weakness in the f

pharmaceutical business giving some investors pause there one thing we did note is a positive sign for dividend investors is that the quarterly pay out goes up by roughly 7% to a $1.13 per share from $1.06 prior. hasbro is one to watch, toymaker, big one. it's seen as maybe a bit of a bellwether with regard to supply chain issues right now they're still facing them given what happened not only with supply chain issues but global transportation and everything else the profits there fall shy of estimates but revenues come in slightly better. we'll continue to watch that and strong dollar claims out there as well. they do have an impact from a lot of the trade they do given the fact the $1 is at a two-year high and interesting slate of analyst

coverage among the names that have been initiated with names coverage over at rosenblatt, the one notable one here is alphabet which they actually put as a buy rating says alphabet is uniquely positioned over its peers and they think alphabet is the best positioning out of those stocks. so the buy rating there everything gets in neutral i'll send things back over to you. >> just a relative of the ancestor >> i don't know, but i could see that >> i'd ask him as you can

imagine over the last 25 years or whatever, and i have one of those hats as a kid. >> i think i might have. it wasn't a real raccoon hat, but i think i had a fake one >> that goes without saying. >> back then it wasn't as big of a thing as it is now for me it wasn't either. >> meantime let's talk about what's going on in the skies a federal judge in florida returning a cdc mask mandate for airplanes and other mass transit. phil lebeau joins us with what was a kind of hectic yesterday afternoon, phil. >> yeah, because i think people weren't exactly sure what we're being issued here because initially all of this is because a federal judge said, look, the cdc lacks authority to implement a mask mandate nationwide.

well, technically the cdc doesn't give the order to the airlines that technically comes from the d d.o.t. ultimately the tsa said you know what we're going to be suspending enforcement of the mask mandate, so you have people literally in flight saying take it off including the crews, and they did following the federal judge invalidating the mask rule take a look at the airline stocks this morning. we should point out we've reached out to every airline they've all suspended their mask rules when it comes to their passengers now, they all are saying it's optional, if you want to get on a flight and personally decide you want to wear a mask, feel free to do so, but they're not going to be enforcing it any longer united will be reporting its q1 results tomorrow after the bell, and after that report comes out,

who's going to be talking with cnbc, scott kirby. we'll be talking to him during fat money, get his thoughts about the mask mandate ending and what's next for the airlines i'm not sure, guys, this is going to be a boom in other words people are going to say the masks are on, i'm going to book a fight. jenally speaking people have decided already if i'm going to go on a trip, i'm going to go on a trip if the mask mandate is there i'll have to bear with it. i'm not sure this changes the equation in terms of number of people flying but it is welcome for airlines and travelers anything you can do to make the trip less of a pain in the neck, that's what the airline wants. >> in terms of the sort of logistics on this decision you made an interesting distinction which is the cdc making its recommendation and then you were talking about the department of transportation and also i don't know where the tsa lands in

that but that those were actually determinations made by them, not the cdc. >> but in consultation with the cdc. i mean, this was not like the d.o.t. were sitting around were sitting around -- therapy constantly talking about the cdc. went this went in effect in february '21 it was because the tsa and d.o.t. had been talking with the cdc remember for a long time during the end of the trump administration a lot of people were saying put some masks in effect in terms of a mask requirement for airplanes, and the trump administration was like, no, we're not doing that so this was in consultation with the cdc. though, technically the authorization to tell airlines that passengers had to wear masks, that came from the d.o. t. >> and then the other question is if airlines so chose as private industry to require

masks, could they? >> good question i'm not sure i know the answer to that. you know, it's a private business to a certain extent, and so i've been to a few places arb andrew, where they still have a sign-on the door saying please wear a mask i can tell you this there's not a single executive i've talked with in the airline industry who has a desire to implement a mask mandate on their own >> phil, we have one of the representatives of the flight attendants union she just wants things to be calm and orderly. and i'm wondering most of the or some of the altercations we saw are about i guess people wearing masks that were trying to tell other people you need to put on a mask is that still going to -- are there going to be -- well, certain people we won't mention any names insisting that -- >> hopefully we don't see as much of that >> will there be people wearing

masks insisting people next to them wear a mask if they're in a center seat or something >> joe, you get 175 or 225 people in a steel tube -- >> there's people that think their drink took too long, but i'm talking about the altercations caused by either wearing a mask or not wearing a mask >> i don't think we'll see as much of that there's more than 4,200 unruly passenger incidents last year. the vast majority of those related to either you're wearing a mask, you're not wearing a mask, why aren't you wearing a mask, somebody pops off at somebody else. that's what most of those incidents were >> i've got one for you because i just had this experience on a plane. i'm very curious where all three of you stand on this >> there's only two of us.

>> i was on a flight last weekend, guy hacking -- i'm coming back from seattle -- >> was he shedding covid wildly? >> who knows, but he was wearing a mask and i was wearing a mask so i felt marginally better. let's say you're sitting next to somebody -- by the way, in asia culturally oftentimes people would wear a mask when they were sick this -- our society, unfortunately at least in my mind is not like that. and so i think it actually creates very interesting issues. >> two kinds of people in the world. >> so you would love that guy. >> i wouldn't love that guy, but i'll take my chances i'll be okay >> okay. this to me is where it gets interesting. >> i've got three dogs they lick my face. i've got every germ known to man. >> if you think about just the

economic costs of illness and sickness in america -- >> then get rid of sugar and fat and everything else then leave people alone go ahead, phil >> phil, what do you think >> i agree with you. joe, i agree with you. i do agree with joe on this. andrew, end of the day it comes down to this don't get into some of these businesses they want to wear a mask, let them wear a mask if they don't, leave them alone. >> i think we would do better as a society if -- if like you were ill would you wear a mask. i'll ask both of you that. if you were ill, knowingly ill would you wear a mask, do it that way, and then we'll -- >> with what >> knowingly ill >> with what a cold, flu >> you have bronchitis

what are you doing >> i'll try to avoid breathing directly on people i hope i don't have any flatulence >> i'm with joe, try not to omodthe on seby. i'm probably not wearing a mask. >> "squawk box" coming right back i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. i'm so glad we did this.

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dow component travelers just out with quarterly earnings, and again we're seeing an instant reaction adjusted profit of $4.22 a share. the consensus was $3.57. revenue was also above analyst forecasts. results were helped by a drop in catastrophe losses although travelers also saw a drop in investment income during the quarter. the company also announced a 5.7% dividend increase >> let's do a little cyber security because, boy, there's a lot going on right now multiple government agencies including the fbi, department of energy and homeland security issued a warning citing russia could be behind a dangerous new malware effort joining us right now is the author of a new book, out today. it's called zero to ipo.

over $1 trillion in advice from one of the world's most successful entrepreneurs this warning coming tout of washington and your own cyber security issues that you've been confronting literally in the past month, but let's start with what we're hearing out of washington how serious is this? what do you know about it? >> well, good morning. thank you very much for having me i'm thrilled to be here. you know i think what's happening across the world, and you've seen this over the last number of years is as folks are moving more and more critical information online both as in the private sector as well as the government, that's attracting a lot of interest in this case you got it from nation states. as you said i think the biden administration over the last year has emphasized the need to enhance a lot of the digital security and information security that's happening, and this is just a continuation of that you highlighted some specific agencies that are focused here but it's really across the

entire federal government. fed ramp is a very important piece of that and certainly you see a lot of multipractical authentication, the very basics everyone needs to put in place is what we're talking about here for government >> what happened in your own compromise your system was compromised. what exactly happened? can you tell us? >> first, let me say the octa service was not compromised. look, as a global leader in identity we know what we do is critical infrastructure for all our customers and we take every security event very seriously as this was one of those. what happened and we just published the final report this morning publicly of closing out the investigation. a third party call center we used was breached. incidentally they did not use the octa service they used a competitor service

perhaps it would have been different had they used octa and it turns out there was a very minor breach. there was a hacker who had access to one machine, who viewed data, just viewed the data of two octa customers for 25 minutes we're in the business of trust and trust. >> the book mentions elon musk a bunch of times i'm curious before we get into it what you think he's attempting to do with twitter? >> first as an entrepreneur i

think it's great clearly there's not a lot of governance going on based on what we're seeing with the board. brett taylor, the chairman is doing a great job, but i don't know what the rest of the board is doing to help him out i think there's a huge amount of value unpackable in twitter. if you think about twitter it's about what information you're interested in and what you'd like to follow and get really invested in. if you can separate that from that ad business problem they have, i think that's a huge opportunity. and frankly i'm very excited to see what happens here. >> single best piece of advice for entrepreneurs watching this morning. >> i've got three of them. the first one is time is your most precious asset. there's a lot coming at you whether 1, 5, 5 240u7b people as we have now at octa. number two is keep the main thing the main thing there's a lot of people going to

talk to you about a lot of different projects you're the one that has to decide what you want to focus on and make it a priority but the ceos of today's startups are all technologists and they don't know a lot about sales and they need to get out and talk about potential customers and how they might use their product. coming up, the debate over returning full time to the office rages on, and the office monsters are at the forefront of the push to have employees back in the office. we'll break down who the monsters are and whether or not to push the return to the office and whether that's going to succeed. and a rough morning for chinese tech stocks sliding overnight in trading reaction to new regulations from beijing this time targeting the country's lucrative live streaming sector offici

officials now banning any stream of unauthorized games on websites "squawk box" will be right back.

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looking at that actually earlier. down today but pushing the up limits of what we've seen in the past six months or so. still $100 a barrel even as the biden administration just backtracked on a promise to not issue anymore leases to drill on federal lands. let's get more with brian sullivan right now things are opening up a bit more but not throwing the gates open completely i wouldn't call it that way. would you? >> no, i don't think they went over the gates necessarily let's get to the news and we can chitchat the white house resuming selling leases on federal land they're going to sell leases on 173 parcels. that's about 144,000 federal acres, and to joe's point that is much less than we had opened before, but it is something. and by selling any they

basically reverse their previous ban. remember the president saying on the campaign trail he'd ban new drilling on federal land, so kind of reversal of that they're going to do it on less land, and they want to raise more money from it, saying we want to give more money back to the taxpayer and the governments. remember you buy a lease, you've got to pay a royaltiy y back toh government about a 50% job. we'll see if that dissuades anybody. i know i'm doing this on a tuesday. i probably should have done it yesterday. the news was res leased about the resumption of sales friday night after the market closed. i mean we're going into passover we're going into easter. it was clearly designed to maybe not get a lot of notice. it finally got some pickup by the way, environmental groups they're not happen as well saying you're backtracking on your ban and once you start drilling for oil you don't just

turn that back off by the way, this does fall on november's deal and the administration at the time blamed that on a court ruling that effectively forced them to reopen offshore leases by the way, joe, to your point not a lot of land but new leases are being sold for drilling on federal land, and the news dropping like a pin late friday night into a holiday weekend >> which is kind of interesting, brian, because there has been a clamor from a lot of people that we should be doing this. i mean it makes economic sense near-term to do it and it just is telling that the people that, i guess, you're sort of -- i guess we can surmise the people they're worried about alienating are once again the far left that they're worried about that group seeing that they're just barely opening a little federal land,

backtracking the slightest bit and we're learning more about that than say, look, we're doing some concrete things to try to address these high energy prices it's just weird, very weird time i would sell that if i were biden. >> yes, it's not weird at all. it's actually genius now you can say we have more federal lease sales. >> because aoc might see it. >> the press release, by the way, was a word salad, joe honestly i'm reading the release on the department website. i struggled to understand what was happening because there were a lot of other things which was fine, but it wasn't like we're opening these leases necessarily. there was a lot of discussion about climate, which they're going to do and a major campaign promise and a lot of people want them to stick to those promises

they made. is it enough to bring down oil and gas prices, probably not but they can say if they criticize gas prices to say, yeah, we've done something we've opened new leases to federal land now, i don't even know where those leases are, if they're good, if there's oil on them, if they're economic we don't know, but they can say we did this. on a friday night. read the press releases. i literally it was like a bunch of words mixed up. took a while to figure it out. >> perfect i'd be disappointed if it was any other way, brian thanks still to come at least 44 chinese cities are under some form of covid lock down. ware going to talk what it means for the global supply chain next and as we head to a break a quick check on the marketsthis morning. the dow actually positive even though a couple of dow call ponents initially were trending down on earnings down on earnings "squawk box" will be

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welcome back to "squawk box. i'm morgan brennen lockheed martin out with earnings results this morning. posting a mixed q1 gab earnings $6.46 per share beat revenue just about $15 billion coming in light. top u.s. weapons maker reaffirming full year guidance, though i spoke with the cfo who called it, quote, aed start to the

year the guidance includes no impact from ukraine he says there's increased demand for assistance like the javelin missile but lockheed is a long lead business so translation to sales will hinge on large part how quickly production can ramp. for the f35 program between international demand germany, finland, possibly canada now and recently dod requests he feels, quote, confident in the ability to deliver 650 fighter jets per year over the next three years that is notable since the stock had sold off on fears of fewer aircraft just a few weeks ago. lastly on shareholder returns key for defense investors. lockheed completing half of its $4 billion share repurchase plan in q1. i asked if that will be boosted and only two months on the job saying, quote, it's under

evaluation noting the stock is undervalued relative to peers. shares of lockheed martin down about 1.5% but we'll have more on the company's quarter later when the ceo joins me exclusively on the exchange. andrew >> thanks for that coming up the war for twitter teeing up as big money private equity firms look to get involved we're going to talk about it and later we're going to speak with sarah nelson. her organization represents nearly 50,000 flight attendants at 20 airlines going to start going bare faced today a lot of them. her thoughts on the mask mandate being lifted for public transportation, what it means for flights and possible flight attendtsn e olan ithwhe industry

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new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today. with at least 44 chinese cities under some form of covid-19 lock down fears are spiking global supply chain disruption will go from bad to worse. joining us now are tired air force brigadier robert spalding. his new book is war without rules, china's play book where global domination. thanks for joining us, and i guess, general, if i were to take one thing away it's the

comment that you made that you believe the ccp, i guess, and i don't think you're talking about the chinese people, but president xi and the, ccp believe that almost everything is a facet of war at this point and a kind of a means to an end in what you see an as advantageous attempt at global foundation for china, for the ccp. >> war without rules basically is documenting they talk about george soros and george soros is this great evil villain who goes around pillaging the world, and they believe that's a form of war that's a form of financial war so trade war, financial war, economic war, political war is really what war without rules is about. really if you think about what i

learns growing up in the military -- well, what the chinese communist party basically used is finance, economics, politics, media to achieve political outcomes >> whether china is going to ever push back against russia and the invasion of ukraine. but if you take it even a couple of steps further it might surprise a lot of people you actually say whether or not the pandemic was caused intentionally by china, that they exploited it. they shutdown their own economy but let international flights export the virus to the rest of the world. you say they pressure the west to accept climate change policies but have no intention of adhering to those policies

themselves you accuse them of exporting opioids or fentanyl to show that a lot of the deaths in the west is because the west is weak and society is somehow flawed here they're incendiary accusations >> yeah, i think when you look at the way they look at competition or conflict, it is how do we use the natural tendency of our own population to achieve outcomes? it's also about the people making the product and making money on the product in chine raw if the most part and i've lived there, anything goes as long as you're not creating problems for the party

and even better if you're creating a benefit for the party. to see americans having trouble with fentanyl when there's absolutely no fentanyl situation in china, so you have to wonder if it's coming out of chinese factories and we that and going around the world why is there not a fentanyl problem in china, so when you realize you can lock up the uyghurs, you can do forced organ harvesting of religious dissidents, when you can dominate hong kong wrash and when you're threatening to invade taiwan and you wonder they can do all those things but they can't stop fentanyl from flowing into the united states, you have to wonder what's going on >> general, yowl say even exploiting the covid pandemic by causing the west to pull back on civil liberties, and that that was in the back of china's mind, that you make that -- go ahead >> right, so you think about today and we believe and it gets

repeated in media often that the lowest amount of deaths in any country is china despite its population of 1.4 billion. and the number stops in april of 2020 at 4,600. so 4,600 for a population of 1.4 billion, and that's been used time and again by western media to demonstrate how successful china has been in stopping the virus >> you think the u.s. media is complicit with china would you say corporate america and multinationals that have a huge vested interest in china, they're also complicit with ccp and allowing this to happen? >> absolutely. it's about financial incentives, and that's what we're really talking about. if you can align financial interests with the interests of

a state, i fundamentally believe this we went after the assets then elites in serbia, but here we're talking about aligning financial interests so that they do things positively for your benefit without you having to coerce, but coercion can be a thing as we saw with the nba. >> with what you're telling me and we'll get back to the supply chain issue, that's a very powerful economic tool that we've let ourselves sort of be lulled into thinking we were always going to be able to depend on parts of the world to supply things, and we probably need to rethink that and bring a lot of it back to domestic production it seems like there's no way around that. >> absolutely. moy own company we've focused on

sourcing our supply chains from in the country or with our allies and partners. i've talked to other investors who invested in startups who can't actually bring their product to market because they relied on china for their supply chains so this is a challenge it's going to be a challenge going forward and why we have to invest in our manufacturing base even here in the u.s >> even with what we've seen with putin and ukraine, you think that china represents a much greater threat to the west than -- and to the world how will we see that manifested? taiwan mostly as far as your opinion, it's only a matter of time china moves on taiwan >> i really believe it is. and xi has already said it he's not going to leave it to the next generation. what he's using the war in ukraine for is to understand how sanctions might be used against china if and when they invade

taiwan so they're trying to figure out how do they ensure their economy is insulated from that attack. and, you know, it started with tearing up the trade deal during the trump administration and not fulfilling, you know, the phase one of the trade deal, but it's gone even further. they're using the belt and road initiative, their energy relationship with russia to really insulate their economy from outside attack when they decide to move on taiwan so i think they're very good at what they do, and for us, you know, thinking of war in this way is just alien. >> i just wonder in your view -- once again i keep saying that -- in your view the west needs to wake up because you could say we're sound asleep at the switch >> i am seeing in the last couple of years people are starting to wake up, but, yeah, for the last couple of years i think we're asleep and starting

to walk into something we don't understand when the chinese think of strategy it's fundamentally different but it's their way and we have to understand it >> i guess it doesn't help when a year or two ago if you even mentioned it was a product of a lab accidently or not, it's totally banned, you couldn't talk about it. as i say a very incendiary book and might have to take a look at it thank you. coming up a debate over returning full time to the office it rages on, and the office monsters wants employees back to the office check out shares of johnson & johnson this morning after their results this morning off now about a point. j&j earned $2.60 per share, but revenue slightly below forecast. "squawk box" coming back with a mon just a moment.

i didn't know my genetic report could tell me i was prone to harmful blood clots. i travel a ton, so this info was kind of life changing. maybe even lifesaving. ♪do you know what the future holds?♪

welcome back to "squawk box. the latest on the fight over the future of twitter. private equity far apollo mana management has now been holding talks about financing the potential take over of the social media company that's according to sources familiar with the matter, but they said apollo isn't interested in being part of a

consortium acquiring the company. it's not exactly like they're going to partner with him and invest in elon musk fully. of course the other question is who comes out of the woodwork to try to buy twitter separately? does someone try to compete with musk prices have gone up a little bit. we're still far from $54.20. of course i think all the action is going to happen tomorrow. >> i do. >> 4/20. >> it'll be exactly two years since i've been sitting here april 20, 2020 >> mark the anniversary. >> we should i like it here i like we're in a punch bowl i get to see everything, i get to monitor i want to ask you a personal question, and that is given the

offer to take the -- the totally facetious offer to take tesla private that we saw, i think people are quick to think if this is similar, which makes me think that musk would like to show them you think i'm kidding and we might be underestimating his revolve here i can't make a good rationale for it on him to do this >> i'm going to throw the wrinkle into this. >> do you think he walks away eventually and sells it. >> i think if he can't get it, it's obviously a very elegant way to gelt out. >> and inflict pain on the board, pain on shareholders. >> i'll tell you where i think this is going, and i don't know if this is in the marketplace yet. and it's what jay referred to last week. i think the sec is going to

bring a case against elon musk for the last thing and then for his comments at the ted conference last week where effectively he denounced his settlement which is against the rules, by the way, potentially even criminally because it was the judge's order. if that were to happen all the banks -- >> you like the judge's order. >> no, i'm just saying all the banks, private equity firms and others regulated by the sec, their lawyers are going to call them and say i don't actually think right this moment is the moment we want to be partners with elon musk given he's going to be in this compliance mess with the sec i think that's going to be the next wrinkle in this story we'll see. >> that's -- i think that's overreaching for the sec i don't think they're going to go into -- >> i thought you're a law and order guy. you got to do what the law says.

>> that's a gray area. >> what's the gray area? >> he's never supposed to say the word >> that's what the settlement says it's the equivalent of an nda. by the way, that's one piece of the settlement the other piece of this is the passive to active change he made in terms of his stake. i don't know anybody who looks at that and thinks that was done improperly >> red tape. that's like the fine print >> i mean, here we are trying to have credibility in the marketplace, right i'm not saying we. i don't know if we have credibility or not, but you want a marketplace credible that has rules around it for reasons. if you decide that the walls don't matter then the whole thing is a sham. you're saying it is. no, i'm going to err on the side of -- elon >> you can just break all the laws and rules

>> he got me with the flamethrower >> i don't understand you. you talk about law and order all the time >> no, i don't if i talked about law and order i'd be about the southern border >> i think we should being about that let's have a different debate, though, right now because there is one taking place about the return to full time at the office it rages on as covid cases still surging in some areas of the country. at the forefront of the push to have employees back at the office wall street firms, jp morgan, morgan stanley, bank of america, goldman sachs joining us now is a wall street reporter for the new york post maskless, bare faced, no rules for this one are people coming back or not really >> it's funny, there are people

coming back. but particularly at goldman sachs they're quite vociferous about their complaints they're telling us it's a quote-unquote hell hole to work. they say they're being bullied to come back, that their managing directors have spread sheets and they're keeping track of peoples attendance. they complain their bathroom breaks are being timed i don't think this concept of the office as surveillance tape is anything new. joe, i'm sure back in your day if they wanted to sneak away to dinner they had to leave their blazer on the chair, the light on, their book open, the computer on, joe in your case maybe an abacus. i think it's important to note despite all these complaints goldman sachs received a record number of internship allocations. >> are you in your parent's basement right now, lydia or where are you? where's your hover board >> i wish i had free rent.

>> can you afford all your apps for your iphone because you're certainly entitled to them obviously. >> oh, if you want to pay for them i'd be happy about that >> hey, lydia, the question though is do you think these employees who feel there's a surveillance taking place to the extent that's the view are prepared to leave their jobs and go elsewhere a lot of people are very highly paid and in this case maybe highly paid to show up at the office >> no. i think they're very eager to complain but whether or not they're going to walk away is an entirely different question. we've touched on this before sort of generational divide, andrew a lot of senior bankers say they're not necessarily requiring it at other firms. they want to set an example for people say see it as a team sport they want to be there to train folks, and the other piece senior management isn't talking

about publicly is if they have kids, and for them going into the office is an oasis you have children, andrew. i'm sure there are days you say thank god i don't have deal with drop off, i can go into work and focus on my job. >> the truth is i haven't done drop off in how many years have i been with you, joe, in the morning? >> long time >> lydia, it's great to see you. i'll take on the wrath of the calculators and abacuses >> remember the ancient emperor -- coming up the tsa pliing enforcement of masking pliing enforcement of masking onubc investing strategies witt designed to help you keep more of what you earn. this is the planning effect. we'll be right back. [sound of]

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to support heart and muscle health, and energy production that starts in your cells. address one of the root causes of aging with tru niagen, researched by the world's top scientific institutions. good morning big day for earnings results out from dow components, johnson & johnson and travelers. we'll bring you the highlights frp and mow more masks a judge rules the cdc went too far when it required them on public transportation. airlines already responding. and what was really going through elon musk's mind when he

made his bid for twitter probably no one really knows for sure, but if someone does it might be the musk whisperer. walter isaaczen, we'll speak with him in the next few minutes. as the final hour of "squawk box" begins right now. good morning and welcome back to "squawk box. becky's off. a big day ahead of us. we started the show in the red let's show you the treasury

yields we're getting closer to 3% president bullered saying he wouldn't rule out the possibility of a 75 basis point rate hike in the current cycle bullard pushed his case for reaching a 3.5% federal funds rate by the end of the year. >> the hawkish shift of the fed since last november has caused shifting in the markets and we'd be following through and there may be corners of the market that haven't been adjusted yet and they'd still have to adjust. >> to reach the 3.5% rate hike by the end of the year bullard hoping for a half point rate

hike at all fed meetings this career >> let's get over to dom chu now. he joins us with some of the day's top morning movers rejoins us i should say, dom >> you mentioned johnson & johnson before we talked about a bit last hour. let's talk about travelers right now also a dow component this is obviously a very big property casualty insurance related company. those shares right now moving between gains and losses but right now down about 2.3%. travelers down and they did announce an increase in their quarterly dividend payments to 93 cents per share per quarter and it was 88 cents prior. keep an eye on travelers and the dow component there as well. also some news out with regard to wal-mart and plug power

the reason you're seeing plug power shares up 6%, wal-mart just about flat right now is these two companies have linked a deal with plug power plug power will supply green eke logically friendly liquid hydrogen to wal-mart for them to lift in their centers and that deal is helping to propel plug power up in premarket trade right now. the ten-year note yield is still the top searched ticker out there. wti crude is drifting lower on the list down to number 9 right now but then twitter, bank of america, tesla on big moves yesterday tied to earnings so those are in the top ten and as always the rest of the top ten on my twitter feed at the

domino >> thank you, sir. at the domino. meantime johnson & johnson out with first quarter results this morning. meg terrell joins us now with the highlights meg? >> hi, andrew. a bit of a mixed quarter for j&j. as a stock sinking this morning but really kind of coming back a little bit since then in terms of the business units of course pharma is the biggest. you did see the miss coming from that segment and particularly from the covid vaccine as well as a couple other medicine medical devices which has been hit hard by the pandemic coming in as well with a beat on the quarter and consumer products also coming pretty in line company did note external supply constraints affecting their skin health and beauty segment in particularly, but they do see that getting better along with inflation through the rest of the year they say if it doesn't get better that is something they'll have to take in. taking down their actual

guidance and saying they're taking the covid vaccine guidon out of the picture completely because there is a global supply surplus and demand uncertainty we asked the cfo joe wolf this morning if that is specific to j&j and perhaps can be extrapolated to the rest of the co covid vaccine manufacturers. here's what he told us >> i do think it's a phenomena across all vaccines manufacturers. they have limited capacity in terms of refrigeration, in terms of administrative getting shots in arms, and so that's created a bit of a backlog there >> and you are seeing vaccine stocks down a bit this morning moderna in particular almost 3%. novavax, 3.5%. affecting the whole space.

joe? >> thanks, meg coming up the mask debate is back on, i guess, as a federal judge says passengers don't have to use them anymore onubc ant. pli we're going to talk to the head of the association of flight attendants next. stay tuned "squawk box" will be right back. your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

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powering possibilities.™ welcome back to "squawk box. the futures are now all green across the board the s&p is now up about 6. dow was the first to turn positive, up 37. and there's some dow components don't know whether they've turned around at this point, j&j and travelersch and crypto currencies were back above 40,000 earlier and a little bit of a risk going back almost 41,000 got 38 and change yesterday. so i think katie stockton, 40,000 held would you still say at this point? >> at the moment it's holding in but back to our main story this morning, a federal judge striking down the nationwide mask mandate on public transportation phil lebeau joins us now with more phil >> andrew, the masks are off in airports and on airplanes. all of the airlines have

essentially suspended the enforcement of a mask requirement. that's because the tsa has officially dropped that requirement. they did that after a federal judge yesterday invalidated the cdc's ability to enforce a nationwide mask mandate. by the way, this had been in effect since february of last year so if you do a lot of flying and i do a lot of flying, you got really tired of having a mask on and that was the requirement, no longer as you take a look at the people on the planes you might be saying wait a second maybe i want to wear a mask. if you want to wear a mask on a plane no one is going to say anything to you. that is your right, your choice to do that we talked to airline executives this is what they've been pushing for. talking to about his belief it was time for the masks to go >> i feel very strongly the mask mandate should be lifted and let individuals including our own employees make their own

decisions and take personal accountability for their health onboard our planes the air onboard our planes is the cleanest air you'll find anywhere >> take a look at the airline stocks i'm not sure this is going to add more passengers, more people saying i'm going to book a flight now because i don't have to wear a mask but it certainly will make the flying experience much more enjoyable for millions of people there have been more than 4,200 unruly passenger incidents that was last year, and almost all of those were related to the mask not every single 1 but a vast majority related to the mask requirement. one passenger getting in the face of another passenger or yeing at a flight attendant because the flight attendant said, look, you need to put on your mask. what's the future hold now the mask requirement is gone, tomorrow we get the q1 results and you don't want to miss our

first on cnbc interview can scott kirby. that'll be tomorrow night on fast money i'm sure like he like all the other airline executives is thrilled this is gone. i have to tell you over the last several months it's been very clear people were getting really tired wearing the mask especially with the case count dropping as much as it has in the united states. >> phil, as you know the count continues to rise, though, where we are in new york and the northeast and across the country ba.2 is acoming. interestingly when i asked you and joe the question if you were knowingly sick and you would wear a mask to protect others. interesting i ran the poll on twitter. you can still participate in this for 24 hours. the question is if were to use

transportation, plane, train, et cetera, while knowingly sick, so you're getting on knowly sick perhaps just a cold, bronchitis or possibly covid, what would you do close to a quarter of the group says they're not wearing a mask. 77% right now saying they would wear a mask. very interesting cultural thing. and the question is is there any lesson over the past two years that would have been learned by this at all? obviously we talked about how in asia one of the things people do when they are sick to be poloit to others -- >> you understand before the pandemic --i was around, you know, there were 60 years where i had never worn a mask. you don't -- you think we need to change society where if you have a cold you should wear a mask if you leave the house? >> i think if there's any lesson of this pandemic -- >> that's the lesson >> it may be we should take on some of the other cultural norms

in other parts of the world, that by the way -- you can go look at the data -- have less severe illness across the board. >> i haven't picked up a mask in a while already. >> i think there's a cultural distinction between the west, specifically the united statesed and everywhere else. and i wonder if -- if we've learned nothing about health or anything during this period i think that's a sad outcome you don't think? >> andrew, let me give you the counter to that. people say you shouldn't shake hands. shaking hands is exchanging germs. i've seen everybody go back to doing it i've seen people go back to doing it >> i know they do. i try to go in >> these are people that follow you on twitter 25%, i would have thought it would have flipped 75% say you are bonkers. >> if you were sick you would go on the plane and be happy to

give it to everyone else >> that's not how i view things. i'm sorry that if i have a cold i'm not going to go wear a hazmat suit. >> no a hazmat suit -- >> i'm not going to wear a mask. >> you're sick >> i'll try not to breathe on people >> that's impossible if you're sitting next to another person >> i don't want to live in the world you're describing. >> by the way, that whole world exists in asia that's what they would do. >> i haven't even visited. i have nothing against asia. thanks, phil no, i've not been. in my life it's one place i haven't been my wife had. thanks, phil for more on the mask ruling let's bring in sarah nelson, international president of association of flight attendants representing nearly 50,000 flight attendants at 230 airlines

sarah, one thing phil said and i'm trying to glean from your notes passengers were cheering and phil said a lot of crews were cheering. where you were, was it like everything else in this country where half of the crew was cheering and the other half was booing were most flight attendants -- >> look, joe, we've been enforcing this mask mandate for over two years now, and we put that in place -- let's not forget the airlines put that in place without any support from the federal government because we needed to -- people to understand they could be safe flying on a plane. now, we've had certain litigation factors since then. of course, the vaccine, more access to proper pe, more access to testing but on a plane we have to have the spirit we're all in this

together and you have to wear your seat belt it's not just about you but about protecting everyone around you. same idea. the only reason this has been an issue is because it was so politicized. so i want to be really clear you asked me the question, where do we stand? we do not take a position on extending the mask mandate, and the reason for that is because you're right it's split i have members and i have actually a lot of passengers i'm hearing from this morning who are begging us to even go on strike to stop this. people are really upset about it and i have other people who have been waiting and really excited for this to go away. i have to say going into the summer months for flight attendants it's hard for maybe someone flying a couple hours on a flight to wear a mask, and

that's when people who have been on the front lines wearing a mask for 14, 15, 16 hours and having to enforce with other people grumbling all the time. so there's absolutely a sigh of relief from flight crews but there's also people really concerned, people who are immunocompromised, people who are taking care of kids who are under the age of 5 at home and haven't had access to the vaccine yet. so we have a set of rules that are federal, that are not state by state because there's a recognition that there's a connectivity there, and you've got to have one set of standards. so i have to say i'm with andrew on this one. i think if there's anything that we've learned from this it has to be about common courtesy and recognizing that you may not have the same situation that other people have if someone asks you could you please put on your mask i'm immunocompromised and i'm going for a medical treatment, the only way i could

do it was on the a plane, you know, i want to get there sifly to be able to get this treatment and not have greater risk when i get there, these are the kinds of things we're dealing with on the planes -- >> sarah, if someone has an n 95 -- if someone has their own n95 snuggly over their face why doesn't that protect them individually, and why would you need the entire plane covered in masks if someone has what you're describing has a tightfitting n95, why does everyone else have to wear one? >> i'm not arguing for the entire plane >> the person next to them >> what we're saying is common courtesy, that's what we're talking about. i want to say just one other thing, joe >> you really didn't answer my question, sarah. why if they have a tightfitting -- if the person is worried is free to wear --

>> because the studies show that the people directly around you if you're both wearing a mask, there is a higher level of protection >> but doesn't work for the individual wearing the -- it doesn't work >> what i'm saying is, okay, maybe, if they wear it the entire flight, they're looking forward, not adjusting that at all, so i'm only talking about common courtesy here, joe. i'm obviously not a scientist and won't pretend to be -- >> let's say covid's gone and the same immune -- if the same immune compromised person is on a flight and covid is gone but there's still normal germs that are around like the common cold or if it's flu season should everyone be wearing a mask from here on out? >> two things here, joe. i'm going to answer your question one, it was not right that we would change in a moment's notice yesterday because there were people who got on the plane

with a certain set of rules they decided to wyoming a ticket with that certain set of rules and mid-flight or when they were landing those rules changed. so there vd have been at least a 24-hour period given more notice every flight attendant knows when you start out flying you have to get your air lights underneath you, and one of those things means you're going to get all of the viruses, and you're going to get incredible -- an incredible immune system so the idea people would say i'm going to go on an airplane sick is pretty offensive to me. that's my workplace. and so you're bringing that, and you have a greater risk that i'm going to be subject to your germs. if you knowingly do that and so i'm just talking about common courtesy here i'm not talking about extending mask policy or anything about this i think andrew's point about what have we learned during this time about how we're just

thinking about each other, and i think what we have learned is that there are some people who have decided this is a political hot button to keep us divided and keep us thinking we're at odds with each other when my experience as a flight attendant and i think a lot of flight attendants would tellioyou a vast majority of people come to our aircraft to have a safe flight and to be courteous it's only a small handful of people that cause problems i'm not saying you not wanting to wear a mask is cause problems but we're traveling in the air in a metal tube and you can't get out and walk away. you don't have that choice so i think it is important we think about each other and just consider what other people are telling us >> sarah, you are describing a world where you always have a mask along with you. >> i want to be very clear i am not. >> yes, you are.

>> i am not because the airlines have masks >> there are people that have incubation periods for a lot of different germ, a lot of different flus and where you don't even know you have it. basically you're saying if you're ever sick you either shouldn't get on a plane or you're going to need a mask in reserve. or if you ever even feel something coming on, you better have a mask. i don't see the world, i don't see the united states -- >> why shouldn't we? >> -- we should always have a mask with us >> the airline should have a mask in the plane and say you're coughing all over the place, you should wear a mask >> what if you have no symptoms -- >> to the extent you know, if you know -- >> i have to tell you before coronavirus -- this is actually one of the things flight attendants had to deal with that was an area of conflict. we would have what andrew is describing, someone's on a

plane, coughing all over the place and everyone is uncomfortable. we do have masks on the plane. we had them before coronavirus, and in many cases flight crew would go up to that person and say, excuse me, would you please wear this mask this was an issue before coronavirus, and this is not about extending this mask policy it's more about how we're recognizing we're looking out for each other and not bringing our own problems or viruses to other people knowingly. >> right it's -- in practice i understand common courtesy. in reality i don't see a masked country for the next ten years in the united states >> that's not what we're talking about. >> it's a slippery -- i don't see how you can -- it's either all or nothing because you never know who you're next to and we do all do have immune systems,

some of them not as good as others but i've have colds, had flus -- >> i'm saying if you know you should put a mask on don't you think that's a fair thing to do, if everyone's really not wearing a mask? >> i think if a person is worried they should put on a tightfitting n95 and i don't think we should be pointing fingers at everybody else, you gave me this, you gave me that. >> i think one is selfless and one is selfish >> someone said you can get a respirator and you can carry that around. >> look, we have laws in this country interestingly. if you spit on somebody that's considered assault in this country. there are states, by the way, if you have hiv -- this is interesting, if you hiv have you spit in certain states it is a -- it is like a legitimate major assault. why? because you could actually be

hurting somebody materially, right? >> right >> and the point is there may be people sick who could be hurting others and we don't need that >> people are free to wear tightfitting n95s. i just don't think you're going to have 99 people -- >> i'm not suggesting we should be masked all the imtime i'm just saying when you're knowingly in that tuion siatand you could hurt somebody else -- >> i've had sniffles it might be allergies, it might be -- >> put your mask, on my friend >> put your mask, on my friend we'r imagine a community where millions share ideas and trade stocks, crypto and beyond. this to the moon? in other words... etoro.the power of social investing. this thing, it's making me get an ice bath again. what do you mean? these straps are mind-blowing!

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welcome back to "squawk box" on cnbc. we're just seconds away from march housing starts and the futures as you can see are now in the green rick santelli standing by at the cme in chicago rick, the numbers, please. they should be out any second. >> any second, yes these are the march reads, joe expecting 1.75 million on starts seasonally adjusted annualized units you have to go back to 2006 we look at permits, 1,873,000 seasonally adjusted annualized units, also better than expected and if you look in the rearview mirror some subtle revisions these are really strong numbers.

and if you consider that the conventional wisdom of the day is bite your fingernails,phobes. mortgage rates for 30 year are back over 5% oh, my god however, inflation is running 8.5% therefore it actually makes sense to pay back your mortgage in cheaper dollars don't forget the inflationary impact not only of the dollars you're paying your mortgage interest back with but also the innotion if inflation is higher than the rise in rates it's something to consider as an aura alternative if you can get the money together in the beginning and if you're wrong you can refinance when rates go back down ten year notes haven't closed at 3% or higher since november 2018 having closed at 1% or higher in boon yields since september 2014, and they're hovering at 93

basis points it's truly incredible the reversal there at the highest yields since the summer of 2015. and that underscores i love the bullard steve liesman segment. for all the blah blah blah they raised a quarter of a point, letting the market do the work they ignored and, and thank goodness the market isn't too lazy to take that on joe, back to you >> thanks, rick. diana oleck joins us now what do you think? >> i just want to say the mortgage rates are definitely having an effect on the builders when you break out single starts in permits versus multifamily the big gains are on all the multifamily said that are not affecting by multifamily single family permits down about 2% for a single family starts. and that's because we saw the 30-year fixed start the month of march at 3.9%, end it at 4.67%

now we're at 5.25% you're looking at a change of $250 more on a monthly payment for a $400,000 home, which is the median price of a newly built home the builders are seeing that i spoke to a builder yesterday he said buyers in our backlog are having trouble qualifying at these latest rates so that's what builders are looking at going forward on the single family side obviously still very bullish on the multifamily side, and that's why why you're seeing this big discrepancy in the starts. >> that's why. what time is it, 8:33. more about masks -- no, actually, we're going to speak with an authority on elon musk walter isaacson is up next when jury box returns

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tru niagen is proven to increase nad, to support heart and muscle health, and energy production that starts in your cells. address one of the root causes of aging with tru niagen, researched by the world's top scientific institutions. i'm dan o'dowd and i approved this message. you are watching actual videos of the tesla full self driving technology as recorded by the drivers. from turning too tightly and hitting a pylon... [ expletive ] to swerving toward a pole. jesus. watch the bicyclist on the right almost get hit before the driver takes over. sometimes it seems the tesla doesn't want the driver to take over. i'm trying. this driver had to hit the brakes when the tesla didn't understand a detour sign.

ok. here it almost hit a truck. obviously, i had to take over. and here it swerves into an oncoming lane. look at that! often, the tesla doesn't know what it wants to do. what is it doing? or just doesn't know how to turn. jesus, oh my god! tesla's full self driving software for drivers and pedestrians, it's unsafe at any speed. tell congress to shut it down. welcome back to squawk jack dorsey taking to the platform he used to run to criticize the media and social media. started when cnn's brian stelter tweeted an article from "the washington post" criticizing fox news host of tucker carlson and carlton commented he's selling doubt. dorsey responded and you all are

selling hope after another user claimed he was defending carlson carline explained he wasn't defending anything later he criticized the advertising model for media including social media also, by the way, seemed to be criticizing his board at one point. a lot going on at twitter these day. and the latest on twitter itself private equity firm apollo management has held talks about financing a potential take over but apollo isn't interested in being part one company saying it would be really just financing that would potentially come in the form of preferred equity joining us now to talk about all of this and about the man himself elon musk, walter isaacson, cnbc contributor and author extraordinaire, upcoming author about a book on elon musk you've been spending a lot of

time with him over the past week what do you know >> well, he certainly is passionate about certain missions and one of the his missions over the past year has been expanding the realm of free speech, which is acceptable discourse. he's been very annoyed with things that have happened on twitter and social media as you know he's somewhat obsessive and fanatical about his use of twitter and social media. but i think it's not just expanding the notion of what is permissible speech he feels twitter is a product that needs to be upgraded significantly. he's a pretty hard core person when it comes to running his companies, working 24/7. and he feels that the twitter gang has not really kept itself abreast when it comes to subscription -- >> on the free speech piece i think there's a lot of people who don't either understand or know maybe nobody knows, but you've

talked to him. some people say, well, he's going to bring former president trump back on the platform, for example. he would let lots of conversations about either politics, health or other things that have been either i don't know secensored or down ranked o they're not showing up on the algorithm otherwise. what are you seeing him do exactly? >> on the algorithm i think he wants to make it open source so people will know exactly the components i think he has ideas about even using people who use twitter to help operate or down rank things when it comes to banning people from the platform he said that he's not in favor of permanent bans, that there could be time outs and that basically twitter and other social media should follow the laws of any particular nation but not

necessarily be more stringent than those laws. so if it's legal speech put it on >> there are questions about some of the laws and elon's relationship to them this relates, if you will, to both his attempt at now a take over of twitter going from a, quote, passive investor to an active investor to a take over artist all in the course of one week what do you think is the potential legal liability for him in that regard, and last week his comments at the ted conference i think almost universally any lawyer who had looked at his previous settlement and the restrictions around speech, and we can debate around whether there should be restrictions around speech, but that was the settlement. it appears he breached those >> well, he probably will not be able to get somebody on your show who's less of a fan of the sec than elon musk and he feels that a gun was put

to his head when he had to settle that time that he tweeted out that financing was secured to take tesla private. he felt financing was secured, but he was forced into a settlement and elon musk is not the type of person who's got a deep, strong belief to bite his tongue and certainly what we're witnessing with the sec he's certainly passionate and enraged about some of the things the sec has done >> what about some rules going from a passive investor to an active investor and at least by all appearances breaching the settlement agreement i raise this issue because as banks and private equity firms all regulated by the sec consider whether to partner with him or finance him, it may or may not become complicated we'll see if the sec decides to pursue additional cases against him because compliance lawyers

at those other firms may say to themselves, this is problematic. >> yeah, hefiled the disclosur he needed to and certainly you could make the case some of the disclosures when he was acquiring the stock weren't done in a purely timely fashion the law accounts for that. they'll be fined if indeed he did it wrong i don't think there was any purposeful at least watching him. he's sometimes a little bit more focused and a little bit less calculating than people would suspect. so if indeed he did something wrong as he may have in terms of the timing of the filings of the acquisition of the stock, which he started back in january, and then i think he truly changed his mind about whether or not to join the board i don't blame him. i think he thought what's the up side of joining the board, so that made him a different type of investor and certainly needed different disclosures.

>> walter, help explain this about elon i think there's a sense he's sort of a political enigma ipso far as on one side he's spent most of his career at least thus far talking about the climate, talking about climate change he has a lot of liberals and progressive democrats who have rooted for him and his success in large part because he's taken the mantle on for tesla and the like and he appears in the last two years i think he's always bip a libertarian of sorts but specifically when it comes down to free speech or a sense -- or at least a sense among some that he would be much more open to information, in certain cases misinformation being exposed how do you grapple with that >> i'm old enough to remember when liberals and progressives

were very much in gav of the side of free speech, and i think you're right it's very hard in this very binary polarized period of the american politics, which everyone needs to be on one side or another indeed he sometimes calls himself a centrist, but he believes in free speech. he's very opposed to certain types of regulation, overregulation, and that comes from his desire to build factories in the united states, but he's very much doing more on climate change >> when you lose walter, you're definitely -- content moderation, walter, has become like a code word for what liberals in the past would have -- their hair would have been on fire if it was tried

there were times i was very uncomfortable with some of the positions they took. everybody needs representation no matter who you are in this country. you can't get mad at the lawyer that represents someone that some habe s thing, and that's what i used to think of about the left, and it's totally switched in my view in terms of intolerance and cancel culture and everything else. i don't know whether you call elon musk or peter teal or i don't know who you want to talk about, a free speech libertarian. but they just seem they could be a centrist in terms of what used to be known as first amendment rights >> i think on the free speech rights musk is on the side of more free speech i think he would call himself a

centrist i think people on both sides -- >> is that a continuum suddenly? i thought free speech was absolute >> no free speech is absolute. you know that. >> they've been block things that don't even come close to being free speech. and you look at who's left on twitter and what gets someone banned, and it's obvious that the people making the decisions needed a wakeup call >> hey, walter, before we go on, i know we've got only 30 second. i was struck by elon's comments about mark zuckerberg. did not like the idea of a single person potentially for generations being able to control something like a facebook, and yet the irony here is here he is trying to take control a single individual would own and control twitter. do you think his long-term plan would be to own and control it

himself or something else would happen >> i think his long-term plan is he would have a decentralized governance of it certainly tesla is not structured that way even though facebook is. >> okay, walter, it's always great to see you and get your insight on all this. it's great to have you back as isoap opera continues. thanks coming up, we're going to check in with jim cramer and find out what he's watching this find out what he's watching this morning. (vo) this is more than glass and steel... find out what he's watching this morning. and stone. it's awe. beauty. the measure of progress. we're coming right back. where cultures and bonds are made between us. where we create things together. open each other's minds. raise each other's ambitions.

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welcome back to "squawk box. this morning want to get down to the new york stock exchange. jim cramer joins us now. we can talk your own adventure, where do you want to go? >> okay. this j&j quarter was magnificent, and the reason why it was is the med tech business had been quite weak so the numbers they put up would make it so med tech when it spun off would be the number one in the group. so those who were selling it i think don't realize that there's a division that wasn't doing that well that is doing well, particularly right now with hips and knees, which is doing terrifically musk, i don't know, when you look at the value creation, what twitter's put up, it's pretty much of a no-brainer you know it is the greatest industrials of our time. masks i was on a plane, the decision came down we were afraid of the crew

>> fascinating, so okay, that's, by the way, totally different than some of the videos that you're seeing online when some of these things happen midair, so nobody took their mask off? where were you traveling from and to maybe this is an east coast -- >> from houston to newark, and you know, it's one of those things, andrew where you're very -- especially if you're next -- you mentioned someone who's hacking. i was next to a big hacker and i started thinking maybe this mask thing is not such a bad game this guy was coughing and hacking his darn fool head off >> joe, you don't want to offend the hacker. >> jim's had a lot of opinions on the pandemic. i haven't agreed with all of them i hope we get back to the point where someone wants to wear a tight fitting n95 you can wear that forever and i think that that will protect the person

that needs protection. i don't think that the other 99 people that don't want to wear it on the plane needs to we have the wear the mask. >> why don't we allow smoking in the planes. >> what's that, jim? >> that guy should be wearing a mask, not me i want him to stop, you know, his phlegm coming my direction. >> right but if you had an n95 on, a tight-fitting n95, you wouldn't be -- right you'd be immune to it anyway you can protect yourself, i think, and we all have -- most of us hopefully -- >> scuba tanks. >> what's that >> scuba tank. >> but if we can't live in a society where each of us has to individually protect -- i mean, that's -- >> that is kind of where we live. >> i don't think so. i think we live in a society might as well have smoking on the planes then. you can wear the mask if you don't want the smoke coming at you. >> the day will come when people aren't carrying masks around and

don't have a case of masks ready pull out because they have a cold the day will come where we're not going to be wearing face diapers. >> jim, we'll see you in a couple of minutes. >> that was different. >> we want to remind everybody about jim's fabulous investing club u n eck yocachit out right now by taking your phone and pointing it at the screen. we're back after this. ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq,

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i'm dan o'dowd and i approved this message. you are watching actual videos of the tesla full self driving technology as recorded by the drivers. from turning too tightly and hitting a pylon... [ expletive ] to swerving toward a pole. jesus. watch the bicyclist on the right almost get hit before the driver takes over. sometimes it seems the tesla doesn't want the driver to take over. i'm trying. this driver had to hit the brakes when the tesla didn't understand a detour sign. ok. here it almost hit a truck. obviously, i had to take over. and here it swerves into an oncoming lane. look at that! often, the tesla doesn't know what it wants to do. what is it doing? or just doesn't know how to turn. jesus, oh my god! tesla's full self driving software for drivers and pedestrians, it's unsafe at any speed. tell congress to shut it down.

netflix is out with first quarter results after the market closed today one metric investors will be watching closely, subscriber growth netflix has missed expectations when it comes to subscriber forecasts, six out of the past seven quarters, and joining us now andrew urquitz, he is an analyst at jeffries. is that likely to change if we become inured to not having quite as much subscriber growth as people would like but still pretty solid results? >> well, so i think we'll get there, probably not this quarter. this quarter could be really messy. you have a price increase in north america. typically when you have price increases you get slower sub growth, higher churn you also have russia, you have to pull about a million subs or

more out of your model for russia, and the broader impact to europe could be negative from russia ukraine so the sub numbers, what everybody's looking at could be pretty messy this quarter and that guide for next quarter could be equally messy once you get through that, yes, there's a lot to like here. >> so andrew, what was more representative of the inherent value of a share of netflix stock when it was, you know, when it was up above 600, near 600 or where it is right now it's the same company, isn't it? it's the same world basically. we have this discussion about stocks all the time, but what do you think? where do you come down >> this is a great textbook example of how to value a stock, right? when it was 600, everyone thought this was going to grow at 20, 20 million subs a year. get the 500 million quickly, generate lots of cash. now all of a sudden that trajectory has changed 10 to 12 million subs, can they generate cash, too much

competition. you have to increase content spend and so the stock is where it's at today. you know, it's going to take probably six to nine months to figure out whether competition is going to impact content spend and what those future cash flows will look like. >> do you at this point think that if you spend enough money the great content will come or is there some magic elixir to get the lightning in a bottle? i don't have anything i'm rushing home to see on netflix right now. >> yeah, we're in the camp that they should not increase content spend. all of our survey work and whatnot says that, look, everybody subscribes to netflix. it is a zeitgeist. you do want to have it in case there is that queen's gambit or squid game type of show to be able to talk to everybody about. we definitely think it's at the top of the food chain as far as subscription models go, and people won't unsubscribe if the content doesn't improve, so to

speak, and so we think they should slow down content spend management hasn't been very clear about that we're going to sit and wait. to your point, we now have so much choice. it's not quite clear how important content is anymore. >> so how many streaming services will survive? >> more likely how many will people -- is there one or two that everybody subscribes to, right? netflix says we want to get to 500 million subs that would indicate that netflix has to be that subscription service that everybody subscribes to. we think it can be, but it may take a while to get there. but again, there's a lot of competition and choice out there today. >> how do you like cnn plus? >> got a lot of people. >> are you one of the tens of dozens >> of course not i subscribe to cnbc. >> good answer, really good answer >> i read a story that i think we published it, maybe somebody else did up to 100,000

subscribers now. >> i thought we did the 10,000 >> we did the early 10,000 one, now it's up -- >> i think it's 100,000 plus, yeah >> still need more we'll see. great, thanks, andrew. we got to go make sure you -- andrew's -- >> you know what i'm doing. >> reaching for the mask. >> here it is, here it is, people someone's got to do it >> i don't even have one with me make sure you join us tomorrow, "squawk on the street" is next good tuesday morning, welcome to "squawk on the street." i'm carl quintanilla with jim cramer, dave id faber j&j, lockheed, hasbro. yields close to three-year highs. road map begins with continued economic headwinds the imf lowering its global growth