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 outlook, and why bullard

is not ruling out a giant rate hike. >> plus, masks are out a federal judge overturns the cdc's requirements for public transportation with airlines quickly moving to make masks optional and apollo, well, it's going to be there potentially if musk follows through to help finance a deal we'll talk about what's going on, the latest on twitter and musk and everything else coming up. as we said, the imf just releasing its latest world economic outlook saying global economic prospects have worsened significantly since its last update in january, in large part due to the war in ukraine. the organization now forecasting global growth of 3.6 this year stay tuned for sara eisen's first on cnbc interview with the imf's chief economist in the next hour, even as bma another growth target cut for china because of the lockdowns over there scl i don't know how they're going to be able to do these numbers.

europe is much worse than we realize, and they need about 6 million barrels of oil just to have their numbers they're lucky to get half that china, the lockdowns claim that china is going to be open, but a number of chips -- listen to the jb hunt call you understand not only is china shut down, but the ships are just piling up they say you can't see the water, and, david, you know, we're the string you remember the bank of america call we're the -- like we're the strength in this world, and if you have board get its way, we're not going to be the strength of this world. >> why not >> you take rates to 3 and change, and then suddenly you've got our country losing its principal growth, small to mid-sized businesses growing we know housing is going to be crimped. in the end, david, if everybody takes rates up and the war

doesn't end and the chinese, they took the j&j -- they just took the j&j vaccine they won't because it's totally political. it's available you know it's available enough to be able to handle that country. >> i think many of us are somewhat mystified at the continued chinese policy of zero covid. it doesn't seem to make sense, even based on the data they have in terms of serious outcomes it's bizarre that they would choose to lose as much as they are in the economic side, not to mention -- not to mention just upsetting a lot of people who were stuck in their apartments for days and weeks at a time and stockpiling food if they're lucky. >> i am hearing tales of people who are locked in, who are basically kind of just ready to -- >> it's kind of weird. >> i want to know what you're hearing as well, though, on supply chain overall i mean, obviously we know with shanghai there are issues. you know, the sanctions against russia, what comes out of that

country, and whether it's coal, whether it's anthracite coal, whether it's oil and gas, whether it's wheat from both russia and more importantly ukraine. >> corn. >> and corn, that's food, but again, that's part of the supply chain. it's part of inflation things don't seem to be getting a lot better. >> i'm going to count er that. >> j&j had huge packaging pro problems they say it's easy now, j&j arguably is powerful, but they tell me that everybody was cut short, and you know, carl, if j&j is seeing an ease in packaging, that's going to be the beginning. now, j.b. hunt contradicted the numbers that i got from when i talked with the people from uber, but that's because the spot rates are down. they admitted that, but the loan rates are up again, that's supply chain, but what will happen is if they get the number of drivers and they're trying so hard to find

more drivers it's impossible to find drivers, and you get the packaging better from j&j's outlook, second half's going to be better. >> in terms of volume? >> inflation. >> in terms of inflation >> inflation and look, i thought that diana, her numbers today were all about multifamily, not about single family so that's slowing. i continue to believe that jay powell is going to be able to have have a soft landing and i think that that's completely counter to what i keep reading, but what i'm reading is company after company is saying, look, things are easing up, but at the same time, the inflation rate not really going down, but if they ease up, that's going to make it so they don't have to keep continue to raise prices. we need a cessation in raising prices >> there does appear to be the appetite on the consumer part in evs to pay up for rising prices. you mentioned bullard who

appeared to say a 75 basis point hike is not completely off the table. here's what he said. >> i would point out that the 1994 cycle where we raised the policy rate 300 basis points in a year, first of all, that one was successful and did set up the u.s. economy for a stellar second half of the 1990s and in that cycle, there was a 75 basis points increase at one point i wouldn't rule it out. >> so he wants 35 by year end, and we're going to hear from powell on thursday you think he blesses that? >> i think powell's being given a lot of air cover by bullard. he could do 50 and we can have a sigh of relief when you look at the interest rates that go up pretty much every day. and when i look at what's happening, the consumer, according to brian moynihan who's on "mad money" tonight is so strong, that if you want to

slow this thing down, you got to do what bullard's saying this thing's a juggernaut. >> that does lead to stories like the one in the journal today which basically says hot economy, rising inflation. the fed has never successfully fixed the problem. >> that's the armageddon story >> all right, but i mean, janet yellen was quoted as saying it will require skill and also good luck one doesn't always have to rely on good luck >> soft landing. >> oh, no, tit's the u.s. economy. >> and they had bob reuben in '94. remember you crushed the euro, and you crushed the dollar >> yeah right. >> and you've been talking about. there was a time when you thought inflation was going to be transitory. i think at this point we've all given up on that. >> you also didn't know that a war was going to break out, right? >> look, the war is central to everybody's thinking because, you know, look, they made their bed with the russians, and now

the eu is just completely hung in the meantime, they're financing the work they're financing the ruble. it is rather amazing i got some statistics about the war. we are a business. >> yes, we are jim >> we sent 40,000 shells to ukraine. now, in 1972, the -- a town called anlock with 47,000 shells in three weeks 100 shells fired every 24 hours. you get 22 days of hard shelling for one city ukraine's fighting in seven cities, so don't think that our country is necessarily making it so that ukraine will win. >> we have given them $3 billion worth of arms in a very short amount of time ap pretty big number. >> that's like a day you're fighting in seven cities. >> i get it. should it be 30 billion? >> again, we don't need to have this conversation here it's not really germane. >> it's germane if we have to

figure out when this war's going to end. >> it doesn't seem like anytime soon. >> that's my point so therefore you have this destruction of the european economy. i don't even know how they -- no giant inflation, you got the big chemical companies there i don't know what they're doing. what's their feed? >> i don't know. what do you hear about steel i mention that because the price of anthracite coal has gone up. >> i'm shocked. >> russia basically is the largest single exporter by far, a huge amount, no longer. >> no one's buying the stuff. >> what's going to happen with nucor? >> scrap is really hard to come by >> took it for the club, the trust. i left a lot of money on the table. it's unbelievable. once the cycle starts going, this is a super cycle, david the only one i've ever seen. >> carl mentioned the price of

evs. >> 10% of those sales were ev this month >> last month. >> that's pretty good. i'm happy about that. >> that's getting there. larger than it's been in the past. meanwhile we do have a federal judge in florida striking down the national mask mandate covering airlines, airports, public transportation saying the cdc overstepped its authority in issuing that order. as a result the tsa no longer enforcing the mandate at airports nation's airlines have ended their requirements the white house calling the judge's ruling a disappointing decision but clearly the major airlines, jim, are applauding it something they've been pushing for for a while. >> one of the things we have to remember is over and over again, airlines we heard -- airlines are safe, pretty safe because the air circulates, and the airlines had to phil la boese made an excellent point, they became police people and that thank heavens has ended. don't forget also that there's a -- the whole experience of

flying had changed because of the masks. like you were afraid to order a drink. david, i think this is -- oh, you're going away on a long trip. >> yeah. >> well, without a mask, it might even be pleasant. >> yaeeah, although it i can certainly choose to wear one, and as you said many times, if somebody next to me is coughing. >> you always want to carry a mask, but remember, the thing about the masks that we keep getting wrong. you need them to stop. you don't get that much protection you need them to stop. so what you do is you bring a mask for them. >> mask policy continues to befuddle me at this point. >> it's about aerosol. >> i know, you're at a meeting somewhere, everybody has to wear a mask, and then you go have lunch and everybody takes their mask off what's the point >> how about young people, they carry on like there's no -- they have a better time during the -- >> uber also today making masks optional it reminded me of the day we sat here and wondered whether the

handshake was dead it's about two years we literally said are people ever going to shake hands again. >> i've cut the number of handshakes in half. >> that is not the way you transmit the virus by the way, nor from surfaces. >> it was in the air the whole time. >> but why not do a fist bump anyway i've always said that. it's the way you get a cold. and these days a cold does seem to be a symptom that is, you know, potentially covid and then you get the test skpks you find out i have it even though i don't feel sick and i got to stay home for five days. >> do you talk to yourself like that >> i do. >> i didn't know that. >> i mutter to myself now a lot, mumble, that's what my family says become a mumbler. >> i'm a mumbler. >> i'm mumbling. >> i wander the subways mumbling, people leave me alone. they stay away. >> you're frightening. >> when we come back, i got a new twist in the twitter elon

musk saga, it involves apollo. we'll get some details take a look at the premarket a bunch of names to get to, lockheed, halliburton, hasbro, and a call on roadbl blocks, facebook, don't go away. voya. well planned. well invested. well protected. trading isn't just a hobby. it's your future. so you don't lose sight of the big picture, even when you're focused on what's happening right now. and thinkorswim® is right there with you. to help you become a smarter investor. with an innovative trading platform full of customizable tools. dedicated trade desk pros and a passionate trader community sharing strategies right on the platform. because we take trading as seriously as you do. thinkorswim® by td ameritrade

. welcome back, may have seen the story yesterday in "the journal," way overplayed in my opinion, butl leslie picker

reporting on it for us as well yeah, apollo might want to consider financing a must bid for twitter. that doesn't mean much of anything, does it? why, yeah, they have a huge credit fund, and jim, we've been talking about private credit funds lately, remember financing lbos whether it's blackstone or blue owl or aries or apollo. this is a huge product area for private equity or for alternative asset managers more appropriately. >> i am so glad you framed it this way >> of course everybody's happy to get their name in a little marketing. >> they put up a shingle, look at us. we can do this. >> apollo's not going put equity in this, maybe combine yahoo, and then we throw in money it seems unlikely. if he actually is ever asked to provide financing specifics, perhaps apollo would be there behind his mountain of equity,

which gets back to the bigger issue, which is the more i report the less i believe there's anybody else that really could show up here private equity is not real that's also marketing. i'm sorry, orlando bravo, good for you. you're not doing this deal i mean, come on. equity check would need to be 30, 40 bil the rates of return don't work for you. what are you going to do seven private equity firms no and strategics, disney, no way, salesforce, i'll leave it to you. >> huh-uh, no way. >> no way. sna snap. >> are you kidding me? >> okay. i'm out of ideas elon musk, it's all yours. actually figure out if you can pay what they want you to pay, i'll be starting with a 6. >> i keep hearing the best and final is the big sticking point. he's best and final. >> if he's best and final at 54.20. >> he's talked to the board a lot. >> i haven't heard that he's talked to the board a lot. i heard there's been some back

and forth. but really all it comes down to is the board saying show us your financing. the world's richest man, he can do that. is he really going to choose to put that much of his net worth at risk? >> maybe >> has a plan, can't doubt musk, right? you really can't the man sends giant rockets that are going to go to mars soon it's incredible. that's what the board's got to figure out good luck finding somebody else to step up here. the stock's reflecting that to a certain extent. >> bret taylor wants a process oriented guy. >> chairman of the board and salesforce, the board is filled with heavy weights this is not a hack board. >> no. >> although dorsey doesn't seem to like them that was weird. >> i wish that musk would just -- there are people who just say, this is what i'm hearing, if you want to come at

us for not having created any value, you get the company they've created no value >> they haven't. >> and meanwhile, musk, a good piece by matt winkler, old friend at bloomberg. >> which elon musk appreciated >> number one in this, number one in that, greatest of all time and he's like a kid so i just think that if you think that jack dorsey ran two companies. >> by the way, you're paying for it, and then it's over and it's a private company. the only constituency that should matter is shareholders and getting them the best price, and i don't know -- i believe that they don't think 54.20 is the best price to your point, management thus far has not been able to perhaps fulfill the ambitions of so many shareholders that say this should be a far more power and feel profitable -- not powerful, profitable company >> they are working on something -- >> musk came after them for their ownership, as a present of

net worth they probably own more twitterer stock than he does >> musk, he points out, they're not users. they don't use it so they don't know the experience of it. i think one of the things they are developing is you'll be able to block certain words so ican take the words of late george carlin and block them >> i know. >> seven words >> seven words >> beyond muting a word on your feed >> i can make it so that word can't come up. >> cannot come up. >> so why would you do it? jimmy chill says thank you >> if you're agrawal, either way, either you sell or you're going to have musk on you, even if he sells, and the stock goes back into the 30s, he's still going to be on you. >> they don't know what to do. to some degree musk is like your worst nightmare, he tweets around the clock every minute that you're an idiot you would eventually say i don't want to be your partner. >> it's so distracting >> if you did that every minute it would take a lot to make me

not be your partner. >> i got up at 3:30, he's tweeting he's attacking people and then praising people. >> he replies, he's active with the replies. >> that's the point. >> he actually goes to his mentions column. my kids say, dad, why do you not hang yourself? like, if i had like a brooks brother's tie. >> oh. >> what? >> your mentions column is horrible >> i try not to look >> you can't because -- >> frightening you know, there's people who might have jeffrey dau mer, the mention column is probably worse for him. >> kwe'll get cramer's mad dash, the countdown toll opening bell is here in about eight minutes don't go away. after another for 75 years.

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time for a mad dash. we really didn't get to j&j's earnings at the top of the show, so let's do it now >> all right, i love this quarter. i'll tell you why, people have to look underneath the hood. this is down 6.5 when they reported the amazing thing about this is the tremendous growth in med tech it had been very weak, particularly during covid. now, david, you remember that when your kids were little, they didn't just become 17, 18, do you remember the song head and shoulders knees and toes >> yes >> hips up 11%, knees up 8%. those are major market share gains, and then david, the consumer it's being valued, the consumer unit, if you value the way smith klein is valued, the thing would be up huge so i really like on a breakup basis. >> it is breaking up. >> i know, but i'm saying it was down six, okay and that was just stupid,

stupid, stupid. >> we sometimes forget it is a long way in the future still for the split, but that is happening, correct >> but the valuation is too low. david, you often tell me, you often say sotp. >> sum of the reverse. >> in this case you can actually do it and it means something because at some point you're going to have a separate company here of consumer. >> yes i just think that you have things like contact lens up double-digits. did everybody decide they're nearsighted? come on. there is growth here that shocking the only place that is a little weird, china china has become -- when you speak with people in business about china, it's almost as if they've chosen to have kind of a slower gdp, not giving them the health care. >> it's -- they did settle for almost 100 million with the state of west virginia for opioids. >> opioid is pretty much behind them remember, they were really the distributor of our friends -- your friends at perdue

is that -- can i call you that >> no. >> and again, i like the packaging. their cancer franchise, thank heavens, multiple nigmyeloma. >> you don't have any parts yet, do you, no knees. >> i got my original stuff >> you're all original >> i can write the -- without setting off the metal detector. >> no, i don't set off the metal detector. >> all right >> is that like a veiled reference to how old i am? >> no, what great shape you are, how well preserved we've got an opening bell coming up 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 - in the last two years, we quadrupled our team

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the opening bell is brought to you by knewnuveen, a leader income alternatives and responsible investing. keep your eye on lululemon, it's going to open higher. truist goes to by, and increases that target from 390 to 495, jim largely on the idea that upper income consumers are where you

want to be in an inflationary environment. >> it dovetails with exactly what brian moynihan said, the upper scale consumers. got an analyst meeting tomorrow. when i speak to them, i just keep realizing it's a bigger market, bigger market, bigger market this is what hybrid has done this is the preferred dress for wealthier, upper middle, and you know, the price point is much higher than everybody else's, and no discount, so i continue to believe that the stocks will buy this people haven't come around >> got some other calls, increases on capri, tapestry as well >> no one knows people who actually do supply, they actually look at whether business is better, tracking better for them. boy, this march is a really interesting -- some guys are doing so much better it tends to be companies that cater to the wealthy >> right >> and yet, we know if you listen to brian, to bank of america, people are spending

again, but it seems like that a disproportionate number of the rich people are spending traveling, buying things everybody's traveling but the rich people, i guess they can't buy car so they're buying everything else. >> a big part of the delta quarter was the premium business >> wait until you get rid of the masks, david you'll be able to, you know, have a cocktail. >> you already do take your mask off to have a cocktail. >> no, but you feel defensive. >> maybe you do. >> you sip a diet coke the entire flight. >> the whole time i have a diet coke always it's like hey, what are you doing? i got a diet coke. don't make me put my mask on >> that reminds me the milken conference last october they had monitors going around seeing if you had a fake cup of coffee. they would pick your coffee up to see whether it was empty. if it was, they were like mask on it was l.a it was l.a. >> to be fair. >> you got people wandering outside with nobody within 300

yards of them wearing masks. >> i think it's going to matter a lot. i was on a flight to o'ha ka. >> i've been on a lot of planes lately, they've been full every time mask mandate doesn't seem to be inhibiting anybody's desire to travel. >> david akron jammed. >> by the way, we should mention airline stocks are going to lead you this morning on the prospect, i guess, jim, that people will have even one fewer reason to not travel. >> i think so. everyone as soon as you get into the airport, you put the mask on, it's a chill factor. will you look at that? that's ridiculous. oh, come on. i mean, like double the number of people who are going to fly they don't have seats anyway >> got to be more capacity, and they also may be employee constrained. we've had a lot of reports about the need -- elaine becker yesterday joining us talking about the job fairs, any of the large airlines were holding to try to find employees. >> listen to the j.b. hunt call. i mean, they have like job fairs like around the clock to find

truck drivers, and it's not necessarily because people are afraid they'll be replaced by machines, it's just that people, they're not here where are they where'd they go? >> i don't know, jim >> that's crazy. >> i'm tired of this stuff >> ridiculous. i mean, come on, do you know how many downgrades there were today? i mean, i was like other than -- jeez, other than capri and tapestry, i've got david because this is for the investing club, i don't know if you remember, i have 29 negative pieces of research this is crazy. >> you said street's been really relentlessly negative, nxpi citi cuts to neutral. margin expansions largely played out. they got from 240 to 190. >> what kind of call was that? they can print money >> ooh and then there's always like ooh, pcs, pcs, okay, so everybody bought a pc.

here's the norwegian cruise, raised the price target but keeps it in neutral. thank you. midland is downgraded, they're printing money printing. >> oh, yeah. abm. >> but there's got to be some concern there, doesn't there about food shortages >> corn's at $8 a bushel. >> we may not be talking enough about what could be coming because it's still early days. >> i'm worried about famine. famine breeds revolution. >> right thankfully that won't occur here we still could have shortages of certain things. >> if you're china and you're the government, you're thinking, well, you know, let's not be too hard they're at zero covid. too many vaccines. that is such a political move that it's frightening that you would let that happen to your people, that you could solve this. >> you think it's pride messing with them? >> know it's pride dealing with enough people who are just saying look, j&j, look at this, what'd i tell you, it

was down six when i got in this morning. t it's a smoke shell. >> that's the number one dow component this morning, even though they did suspend their vaccine revenue guide. >> the chinese, i mean, i shouldn't be laughing. the reason why this thing, people didn't understand it is because people didn't -- they acted as if it was a really important quarter on earnings. it has nothing to do with earnings >> right, but the breakup kind of came and went and obviously it's a long time in coming the same way that gv -- these are going to happen over a long period of time it just didn't seem to grab the attention and/or generate a lot of excitement amongst investors. >> i'm an increasingly positive about the ge sum of the parts because of the energy business and what has to happen in europe that's like the only company that's really benefitted from -- and they're not profiting. >> right wow. >> no, no, again back to the point, i think there was an

expectation when they said we're going to become three companies, that would be viewed as a positive. >> david, how come you've not mentioned american campus? >> i'm going to. i'm going to do it as a faber report stay tuned there's a lot going on with that deal beyond just the deal itself >> can we come to netflix which is going to report tonight >> it is amazing having worked together for so many years >> russian prune juice. >> ice pick. >> fad >> netflix which by the way, jim, has traded down for 13 of the last 15 earnings. >> that's good we want -- you know, finally they've wrenched out the expectations. >> my god, the stock's down 44% for this year. >> david, everybody's got us streaming. isn't that the point >> yeah, but i guess going into this quarter, our expectations solo that there's very little they could do to make people run away even more. >> i watch more on hulu than i

watch on netflix. >> okay. so that is indicative of what? >> i'm saying this water cooler talk is not as much netflix. you always have to ask hey, what is that on that's on apple. you know, apple. really hulu >> so in your mind, there still could be downside, i'm just drawing from your inference here that you watch more huhulu >> what i'm saying is the stock is down every day because people just say, hey, i've got -- i don't have enough time -- remember when we would always come on and say, listen, the real enemy is time well, yeah time to be able to watch my hulu shows and my netflix shows >> b of a over the weekend said you can't even call it a covid winter anymore, it's underperformed, qqq's by 36% since covid began. that seems strange, right? >> that is incredible. you've got -- it's right up

there with zoom. hey, david, i have zoom on they've got some things in the pipe. >> do they >> making white board available. >> they've got the artificial intelligence, like doing a sales call, and they can hear when you're saying yeah, you know, uh, yeah, you know, when you say uh. >> they cut that out >> you can learn not to say it. >> i see all those things that we do to extend our -- while we're thinking about an actual word? >> nice, very nice >> so good >> okay. thanks for that. >> no problem. i think that zoom is still -- it sells at 30 times earnings people looking far down year next year. can't buy a stock with a down year, so they have to come up with something how are you doing over there with peloton >> what? >> no, i'm asking about the covid stuff? >> yeah, well, we're looking at zoom, peloton, docusign, i'm thinking about all of them none of them have done very

well. >> no, because the pandemic is an epidemic. >> yes, apparently a lot of them were owned by hedge funds. we maybe have not talked enough about the terrible performance in the first quarter of so many hedge funds. >> oh, my. we're talking about double-digit declines these guys are -- instead of making hundreds of millions, they're only going to make like tens of millions. >> i know, it's terrible fundraiser time. >> what's the biggest winner consistently other than tesla? pro lodges. >> really? >> i got them on tonight, amazon warehouse, you know how like in "the graduate". >> warehouses. >> exactly how do you mean >> right >> well, blackstone got that memo, might be a good time to transition to a faber report this morning as we take a look at who will be the guest on "mad money" tonight as well, because the blackstone reit, they've been very active in that area. as jim mentioned earlier, active again today with the purchase of american campus communities.

that's a $13 billion transaction, and it's two of the blackstone funds it's both the b reit, which identify talked about a bit but want to talk more about, because it's such an important product in the real estate industry as well as also their blackstone property, it's a core fund targeting like a 7, roughly a 7% return but there's a look at american campus this morning. of course the deal did represent, what was it, a 14% premium to yesterday's flows >> stop and go. >> it had been going up, and by the way, the cap rate 4.25%. a couple of interesting things to note here on that cap rate. that was a cap rate that might have prevailed at the end of last year before rating moved up appreciably, and yet despite that move up in rates, you're still talking of cap rates of 4.25%. by the way, that's before capex, that's before sg&a you really talking aboutreturn in perhaps the high 3s, something along those lines.

student housing is what the key portfolio is here. usually does trade at a spread to traditional rentals there may be more risk, of course, because if you lose the tenant you're not going to get a new one, right kids come for the semester and/or the full year but again, the fact that asset prices have really not come down despite that ramp up in rates is an important one here, as well as the overall growth of this b reit what a product started not that many years ago. still taking in roughly $3 billion a month it's one of the largest reits out there. this is perpetual capital being put to use talking about a 4% dividend. there has been capital appreciation, high net worth individuals approached by their broker, it might go something like this. yeah, a 4% ividend it's blackstone, it's real estate they're the experts, look at what they've done. it's an inflation hedge. you don't have enough real estate in your portfolio, and boom, every month that adds up to 3 billion more a month going

into this thing. that's why they need to spend it, and by the way, starwood's got one called the s reit that takes in about a billion a month. the numbers are staggering in terms of what's come in here and what will continue to, and what it's meant really for the prices, therefore, that they're willing to pay and again, they aren't the most aggressive investors here. they use some leverage perhaps in this deal they won't use any leverage maybe they'll put leverage on at a later date it would appear they have positive leverage right now. maybe they think rates are going to come down it's been an interesting asset class. not a publicly traded reit, but one of the largest out there, and every month getting bigger and bigger with bigger investments and big deals like this one that they are at least a part of. they're not the sole buyer they're buying it with the other blackstone fund. >> you can't give up on things just because the justice department and ftc are tougher

this company had the stickiest parents because it's parents paying for kids. they tend to pick areas where it's nice dorms, basically dorms that parents are paying for. and carl, one of the things -- i mean, i recommended this stock two weeks ago. >> wow, good recommendation. >> thank you >> i thought coming out of covid this thing would -- people would come back to school. but i mean, i didn't think it would like get a bid it wasn't that long ago that people were staying at home, so it's gutsy a gutsy move, but i do think that i've always liked anything that involves parents paying for kids, having done that. >> the helicopter very dynamic enrollment trends are still questionable, right? if you look at chegg, for example. >> don't you think that's why that's amazing confidence in people returning you know, david, i look at these reits, and we had ventas.

>> i saw debbie here, and there's a tremendously undervalued reit the yield's low, but there's been a lot of talk -- there's been activists and activists are pretty much everywhere what a pain in the butt they are, and do they accomplish anything >> sometimes they do >> name me some. >> come on, there's plenty of examples where they have accomplished something, certainly getting a company sold is something you see often in fact, zen desk, for example i've done spotty reporting here and there, the question is is it real they get hired to sell stuff and zen desk is about 5% >> that's expensive stock. >> yeah, remember their deal to acquire mow mentive died i did that story on director kyle bass. we'll see. they haven't scheduled the meeting at zen desk, and a lot of people were waiting for that,

and they are in a fight with jana over director if they were to try and outrut the proxy fight by selling the company, there's an activist that had an impact. >> they're losing money. >> we haven't mentioned hasbro, it is a miss, but revenue is ahead and they raised the full year guide, jim. >> hasbro had issues with like supply chain people think maybe it's easing i don't know we know that they lost their ceo and so people feel that maybe it's just time to lose the company. >> yeah. putting a number on the revenue h hit from russia, ukraine, about $100 million. >> there's a lot of companies who were doing a lot of business there. david wer didn't know. >> sap just announced plans to exit after all this time. >> in the end.

as the war -- i was reading a lot about chechnya and the war there. they kept getting rid of their generals and trying to get tougher and tougher and tougher. and in the end they just levelled -- they leveled it twice, in '96 and again in 2000, but when putin came in, when he -- because they lost the first war with yeltsin putin said i don't care if you kill a lot of russians so during the war there was a sense of, wow, we're killing our own people, but putin didn't care so we're seeing a bit of that putin again. >> yep, we're definitely watching tragically the situation in the east, what they're calling the second phase of this offensive. >> right >> dow is up 200, and we're back above 400, good morning, bob pi pisani. >> about even on the advance decline line on the open it's getting a little better in the last five minutes and i like what i see because some groups that have been in a little bit of trouble in the last week are looking a lot better the transports have stabilized

they were down around 240 just a few days ago, and they've been looking a lot better another group looking better in the last two days are bank stocks goldman's had a nice couple of days put together. that always helps. another group looking better is hole building stocks remembering what a disastrous first quarter we had on rising rates and concerns about high prices they have also started stabilizing. three important groups have looked a lot better. energy has been the leader throughout the whole year. not surprised it's taking a little bit of a break today. what's not taking a break is halli halliburton, this is one of those stocks on the perpetual new high list. it's down a little bit, but it was up right at the open w what a quarter they had. the top line numbers who are about in line with expectations, you want to look at some of the commentary there's a good reason that oil services have been the market leader look at some of these comments,

a multiyear up cycle is underway this is from the earnings release. they're seeing higher prices they're seeing very strong customer demand and a sold out equipment market what's that mean they are the equipment market. they're the people that are selling the equipment. they're saying they can't get this stuff out there fast enough to meet the demand that's a pretty strong statement. when the equipment maker says we have a sold out equipment market, that's a bullish comment. then of course they talked about supply and demand, significant tightness across the entire oil and gas chain. it doesn't get more bullish in terms of the commentary than that of course the market knows this. we've been talking about it for weeks now, and the stock market from the very beginning of the year is reflected the belief that this is going to be an amazing number we're seeing earnings estimates 200 % higher than the same quarter from last year halliburton up 80%, transocean, baker hughes, schlumberger these are the guys that sell the equipment that gets the oil and gas out of the ground.

oil and gas equipment manufacturers. that's the key story here. elsewhere, i want to note we always talk about inflation in terms of commodity costs and inflation in terms of companies that make things, and yet, we're even seeing inflation in the insurance space, believe it or not, having a nice chat with my old producer this morning about travelers numbers, and here's what they noted here these are renewal premiums this is what they're charging above -- beyond the existing policies business insurance 9.1% higher bond and specialty insurance, 12% higher for the premiums. homeowners policies, 12% higher. autos, there's the laggard right there, that's interesting, only 3% higher. i guess my point here, carl, is that we're seeing inflation right across the board, even in a service that you would think doesn't have a lot of commodities or anything associated with it, but does have things like, for example, labor costs associated with it pay attention to that,

travelers, by the way, is down today even though they did raise their dividend carl, back to you. >> thank you a reminder, you can get in on the cnbc investing club with jim. sign up and find out more at cnbc.c cnbc.com/jointheclub take a look at the check out treasuries we did get to three year highs the long bond above three today. we'll be looking for some commentary later on today. we'll be right back.

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by the way, best bank earnings of the quarter >> easy. just easy. eve got to hand it to them, a lot of it is how much they spend on technology way before everybody else did i'm just fine. zelle me they all like this "mad money" at 6:00 p.m. eastern time the imf cutting its global growth forecast. dow is up 260.

good tuesday morning welcome to another hour of "squawk on the street.

dow is up 300. yields are up. oil is down about four bucks big time declines after yesterday's rally as earning season continues to heat up. >> it is heating up. we're going to start with -- we're 30 minutes into the trading session. we're start with three big movers >> johnson & johnson the company lowering fulls year sales outlook travelers beating consensus estimates. those shares under pressure. down 3% now. we will end with jb hunt those earnings kcoming in before

street forecast. overcoming that to post growth in all of its segments even as we are continuing to see and there was some commentary on the call around some softness in the trucking spot market potentially a return to normal, if you will. those shares are down fractionally >> yeah. we've been focused on that for the last couple of weeks trying to answer those questions. we'll turn back to the broader markets and the economy now. we caught up with jim bullard yesterday who said he would not rule out the possibility of 75 basis point rating steve, i'll leave the rest to you. >> good morning, david showed himself to be a hawkish member of the fed and one of the more bullish he believes the fed should raise the fund rate. he thinks the u.s. will still

have above trend growth and dec declining unemployment >> i would point out that the 1994 cycle where we raise policy rate 300 basis points in the year first of all, that one was successful and did set up the u.s. economy for a stellar second half of the 1990s one of the best periods in u.s. macro economic history i wouldn't rule it out but it's not my base case >> bullard said the fed is in new inflation fighting regime and it means what it says. >> what we need to do is establish inflation expectations at 2% and show that we're going to do what needs to be done to get inflation to 2%.

inflation expectation will adjust and actual inflation will follow behind. most of that doesn't have very much to do with the labor market >> if bullard is right, the fed could have a quick and relatively painless fight against inflation as long as it's tough now many are skeptical about this painless part, as you know >> steve, sarah is on the desk with us. we're not letting us speak until she interviews the imf chief economist. she had a question i will ask you about the 75 basis point reference i knead in the intro to you did you introduce that as an idea to bullard or did he bring it up on his own >> i think i might have introduced it and he said it's not his base case, but he wouldn't rule it out he is trying to convince the markets that fed is serious about inflation.

he is the one who brought up the fed had done it previously in the 1994 rate hiking cycle then. i don't think it's the tip of his tongue it's not something he's ruling out. the dkey is acting fast and figuring out where to go >> find out what the chair thinks in a couple of days steve, thank you airline stocks among the big gainers as the federal judge over turns that cdc mask mandate for travelers. we have the latest reaction. >> it's been 14 months that we have been forced to wear a mask if we're in an airport or on an airplane the tsa last night dropping the

requirement that you wear a mask when flying. that came after a federal judge yesterday, in florida, invalidated the mask rule and says the cdc does not have the authority to mandate a nationwide mask rule, if you will as a result, once that happened, the tsa said take them off the airlines quickly said we're no longer requiring them you know who is relieved about this, the flight attendant union. here is the president of the union this morning >> we've been enforcing this mask mandate since it was a federal mandate but for over two years now. we needed people to understand they could be safe on our

planes there's a sigh of relief from the flight crew. >> you know why there's a sigh of relief. there's been more than 4200 unruly passenger incidents since this went into effect on february 1st of last year. actually, that 4200 was just for last year. it's not including the first four months of this year many believe we will see fewer incidents. don't forget we'll be talking with the ceo of united airlines after the company reports its q1 reports tomorrow afternoon do not my our first interview on fast money we'll be talking with scott kirby. not just about the mask mandate going way but the state of business that's tomorrow afternoon on "fast money. david. >> phil, thank you we're keeping a close eye on shares of twitter. yesterday a story from wall street journal got some people's attention. not really that much there

it focused on apollo somehow they would be involved with musk. the focus for apollo would be o the use of its private credit fund they would be providing that with his equity in front of him. it doesn't appear they would be a equity provider. they are also some efforts made by others out there to think about any assets contributed to twitter and some fashion would it make sense to contribute yahoo, is there some synergy sure people can be creative. you can be creative on how musk can get it done. not for tesla shares but his

ownership or some of it or even spacex the key will continue to be the back and forth between the board of twitter and mr. musk in terms of trying to see whether he's willing to improve on his offe and willing to offer specifics on how he's going to finance as you take a look at the ownership stakes there some of his tweeting yesterday talking about how he owns so much more and be able to save 3 million bucks year as a private company. won't have the public directors any longer they probably own more than he does of twitter given his worth of 260 billion dollar or something like that. financing still remains an important component of this. you do want to understand how he is going to go about trying to get the money together how he's going to raise the money. what it's going to involve and the risks that would be involved with the financing

as for private equity, just doesn't pan out or pencil out or any other implement you might want to do to do the math. that kind of, morgan, becomes part of this process it's not clear what return musk is willing to accept here. he seems to have broader ambitions in some ways he is an incredible businessman. we don't want to indicate that he would not figure something out that would be both beneficial for his pocketbook but also sort of fulfill the ambitions he might have should he succeed >> that's right. he tends to be long term in his thinking he takes big bet and does things that maybe other folks say aren't always possible. just get a quick check on the markets here

with all the major averages bouncing hire, the s&p is up 1%. the dow is up 329 points on what is a busy earnings day stay with us before we board. excellent. and you have thinkorswim mobile- -so i can finish analyzing the risk on this position. you two are all set. have a great flight. thanks. we'll see ya. ah, they're getting so smart. choose the app that fits your investing style. ♪♪

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>> it's technology it's consumer discretionary. it's communication services. getting to your point, the reason why we're focused on those three sectors is because they are a huge consequence to the overall market and because they are by far, by a decent amount the worst performing sectors in the s&p 500 so far this year in 2022. if you look at the etf, some of the main spider etfs that track these ones, the spiedser consumer discretionary the three most consequential sectors you could argue out there. if you take a look within that technology and communication services there's certain parts over the course of the last dup l -- couple of weeks that have started to under perform

sger net r as for the ones that may have held up better, though they have still declined, check out some of these ones. cyber security has been holding up well. down about 3% now. cloud computing is down roughly 4% if you look within that trade, everything is generally down but certain points in the market have held up better. check out cyber security 5g networking etfs and cloud computing have done well back over the you. >> certainly areas that are less reliant on the hardware supply

chain. dom, thanks. joining us this morning, sarah, along with the new imf chief economists >> good morning. good morning to the new chief economist of the imf first interslew siview since tah job. boy, what a time to take on this role and to offer this report which is pretty down beat and depressing my first question is how much is the war in ukraine from russia to blame for this lower forecast for the economy? >> first, thank you for having me

it's really a pleasure the sanctions is the primary force behind the revision in the report by far, the driving force here is the impact of the war on ukraine and russia on european economies, more broadly around the world through higher energy and food prices. s >> i guess you're assuming they can pull off a soft landing. what makes you think the fed can do that when we're talking about

eight to ten rate hike >> we're tweeting the rates close by the tend of 2023. we're looking at significant tightening already in our baseline we are facing an environment that is very unusual in way and just coming out of the pandemic. that is unprecedented event. then we have on top of this, a war on the european continent. another thing we haven't seen in quite some time. we are mostly seeing the effect of a tightening of monetary policy and some softening of demand as you point out, there are very important downside risks inflation could be coming up more strongly than what we have seen up until anprotecting in o.

there could be additional wage pressure feeding into prices and inflation further down the line. all these things are additional downside risks >> right it's really hard to forecast inflation in this environment, isn't it, whenyou have supply chain as a major driver. is the supply crunch getting worse because of what's ha happening in china and how can you tell where inflation is going? >> we are anticipating some of the supply chain disruptions will ease over 2022. that's why we anticipate inflation pressures and moderate throughout the rest of 2022 and into 2023. as you point out if we have another downside risk is stronger slow down in china related to omicron lockdowns we're seeing some of the numbers coming in yesterday. there are signs the economic duty is softening quite a bit in

march in china that could lead to further lockdowns, further supply chain disru disruptions. all of these things are downside risks but are not part of our baseline baseline anticipate some lockdown and some supply chain disruption but relatively limited and temporary. sd >> what is the probability of an out right recession in china with major financial hubs like shanghai being pretty much sealed off for the past few weeks. they are still dealing with the property debt grie sis there we are revising china ease growth to 4.4% this is below what authorities are aiming for.

the question is how quickly they can get their elderly population vaccinated so they are protected and omicron is not as much of a risk finally, i have to you about europe because that's a big concern for american companies and a downgrade for growth what if it gets worse. what would that do to the european economy that would be very significant one. the numbers are quite dependent on russian gas gas comes to pipelines and there's no short term substitute in countries like germany or more dependent and other

european eastern european countries. we have analyzed an adverse scenario. >> we thank you for your time and the projections. thank you. >> thank you for having me

1:00 p.m. eastern. panelists include the head of the imf, the head of the federal reserve and a number of other key voices on the global economic stage you can watch it on cnbc pretty much a dream panel for me couldn't be a better time to talk about it. >> i should say so it's much watch tv, sarah. looking forward to it. as we head to a break, we're keeping an eye on haliburton demand for oil service equipment remains high shares are up 2% now it's on pace for its fifth straight monthly gain. we'll have this conversation even with crude and futures reading lower today. mo ahead, stay with us

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let's get a check on crypto this hour back above 41 k down 10%. john, great to have you back on the show let's start specifically with the trading action we have seen in the crypto currency access themselves we talk about how volatile bit coin is. it seems to be trading in a pretty tight range these days relative to history. >> that's exactly right.

that's why some of the stocks are performing worse it's been muted. price activity has slumped here. you have seen trading volumes which companies are more levered to we have seen that decline more that's why you're starting to see some of the performance in the stocks in term of the crypto asset themselves, they are very much still pretty correlated here with text stocks you seen that and the crypto assets as well. >> i guess in terms of break out

what's the great catalyst. >> it's a great question with some tech sectors, we have a broader market for the last six months or so it's hard to tell what that would be if we see a better handle on inflation, you might start to see some big step back in for crypto assets. on the institutional side a lot of institutions are doing the work on the retail side you've seen some momentum fade that can start coming back on the retail side. you should start to see some more folks step in and start bidding here there's certain parts of the crypto sector that have done well which is a asset that has

done well. a lot of different sectors in the overall crypto economy have been in a bear market. i think investors are starting to look to put money to work >> are there buying opportunities here or is this something you remain processed on >> i think there's buying opportunity here i think both of those are attractive companies especially at these valuation levels. these companies are down to three, four times revenue. i think these are quite discounted here at these levels. they are solid core businesses they have strong fundamentals. trading volume has come down a little bit here. i think if you're still excited about the crypto space, it's been over the next year or so

we'll see continued growth and adoption in this economy those are attractive places to get involved with. >> all right thanks for joining us today. >> thanks for having me on it's time for a news update. >> russia is starting a new offensive in eastern ukraine foreign minister said the goal is to quote fully liberate the areas in the donbas region that claiming to be independent republic ukraine's president said donbas will be defending promising to quote, not give anything -- give away anything you yukrainian. the school is mostly in a shiite

neighborhood that has been targeted the biden administration will announce today that climate impacts will have to be considered before federal agencies approve major projects like highways and pipelines. that according to the new york times that says local communities will have more involvement. the trump administration have dropped the requirements of a environment law. now back over to you he's one of the biggest bears on the street. we'll check with mike wilson with the dow up 400. best day of the month. zero-commission trades for online u.s. stocks and etfs.

and a commitment to get you the best price on every trade, which saved investors over $1.5 billion last year. that's decision tech. only from fidelity. wealth is breaking ground on your biggest project yet. worth is giving the people who build it a solid foundation. wealth is shutting down the office for mike's retirement party. worth is giving the employee who spent half his life with you, the party of a lifetime. ♪ ♪ wealth is watching your business grow. worth is watching your employees grow with it. ♪ ♪ i'm dan o'dowd worth is watching your employees grow with it. 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 our next guest called for a 13%

market downturn. s&p falling more than 2% since then mike, welcome back it's great to you again. >> thanks. it's great to be back here now you're paying attention to neg ative earnings revisions an the way prices might respond to that >> that's right. had this sort of narrative, fire and ice. the fire is pretty obvious now the fed will do what they need to that's why rates are moving up so much. that had a dramatic impact on certain parts of the market. they are more expensive. the multiples have come down now the market seems

confidentable. inflation is an elixar now that's probably a head wind as it starts to eat into cost. we think there's chance of this earning season and support the call and that leads to the next overall market >> would you say that you seen more signs about the latter.

>> it's actually sort of mixed there's plenty of companies that haven't seen either. that's why we held up is we haven't had the evidence yet under demand disruption side or the margin certain cases and those stocks have been punished we would be wrong about that i think we'll be wrong is more of the timing than it is on that actually happening i have more confident we will start to see more demand disruption and more margin pressure but it may not play out until the second or third quarter. >> mike, where will it in your opinion play out that has yet to be fully recognized in the market >> it should start to see some

of that pressure because of logistical conconstraints. those are three areas that could feel the effects >> mike, what does that mean in terms of more defensive positioning in. >> we're staying away. it's worked so well. that is thesis has played out really well. they will come in hard and that will further support the

valuations of the defensive sectors. health care, reits and staples if you want to barbell that with some cyclical is probably energy is the one that still looks pretty good. we think you can create 4,000. it's sort of fair value for us that's 16.5 times earnings, 17 times earnings which we think is a generous multiple given where rates are now. quite frankly, we have been dead wrong. we're dead right about multiples coming down. the earthquity risk premium conu to compress.

that's our job that's are we'll be within the market >> always good to see you. >> thanks. lockheed martin reporting results. the top u.s. weapons maker reaffirming full year guidance be guidance does not include impact from ukraine. that's a lonely business and higher sales would hinge on how quickly production can ramp.

lastly shareholder returns, key for defense investors. completing half of it ts share repurchase plan just in q1 we will have more on the quarter and three defense more broadly amid what's been a fraught geo political landscape given everything playing out in eastern europe later today with jim taiclet. he will join me exclusively on "the exchange. shares of lockheed are down to about half a%. almost 1%. this really kind of tees us up for defense personings in what has been a very strong start to

the year for the sector. >> yeah, speaking of earnings and the opposite of a strong start. let's get a check on netflix this morning it's set to report after the bell it's been one of the biggest laggards although turn it around in today's session. talking about it earlier on squawk on the street it's down. we'll see what the quarter holds after 4:00 today we'll be right back. m fidelity. you're a one-man stitchwork master. but your staffing plan needs to go up a size. you need to hire. i need indeed. ou do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

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take a look at john deere. now up nearly 30% closing at a

fresh all time hype yesterday. with global food shortage concerns front and center, fertilizer companies have been out performing mosaic surged to 100% so far this year. trading to its highest level since april of 2011. analyst say the key will be watching how much crop farmers plant in the coming weeks in countries like turkey we're already seeing export put on butter and other food products now we'll send it back to you guys >> thanks so much. coming up later, don't miss revolution chairman steve case he is live from the emerge america down in miami giving us thaug thaugts onoughts on tech volatility dow still up almost 400. it will be your best day since

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we talked a lot about it

namely inflation at it s highest levels in 40 years. shopping for groceries and other every day items as well. both e-commerce retail says higher fuel costs are the main cause right now. worse, but it is certainly not getting better yet joining us now is box co-founder and ceo. good to have you you know, our viewers may not be familiar with your company to begin with, but it would seem, moving all those boxes of goods around, probably got more expensive. are you able to pass that along to your customers, particularly given where you are in terms of the gestation of your company? >> yeah. first and foremost, i hope folks will be more familiar now that we're a public company first and foremost, when you look at what we try to do, we definitely try to make the costs better for us so we don't have to pass along costs. whether it is using our own

homegrown software, transportation management system, using multiple carriers, all these different things we've been innovating on so we can be prepared for this moment. >> what about the actual costs of packaging i mean, itwould seem that's another area that potentially has gone up significantly. is it? >> yeah, so, i mean, you're seeing it all across the board one of the things that's more difficult to do is for us to make our own boxes we write our own software, trying to deliver our own packages we're not going to make our own boxes. you'll see some inflation there. as mike wilson said before, certain industries are going to see demand destruction for us, i think when it comes to consumer packaged goods, you'll see more of a demand shift when you think about what we do, buying in bulk, we have a great private brand, i think you'll see consumers shift as the prices get higher and higher we certainly don't see the price abatement any time soon. we'll do what we can to keep them low. >> we know that ecommerce and

deliveries to the home really exploded and kind of turbocharged during the pandemic as we move past the pandemic and as more people go out and look to shop outside of their home, are you seeing a slowdown in the rate of growth, or is this a trend that continues to fire on all cylinders? >> that's a great question, morgan we talked a lot about it on our last earnings call what you find about boxed, because we are a wholesaler, pre-covid, we were 25% b2b, actually as folks go back into stores, potentially, what you're going to see is a reexacceleration of the b2b business last year, the business was up over 50%, off, albeit, lower baseline because of the demand destruction of the b2b business throughout covid but we're starting to see the recovery there it's the stickiest customer we have, the most profitable customer we have even as folks rotate back into stores, i think b2b will come back for us in a really big way. >> interesting so in terms of the b2b business, i mean, what are we talking about in terms of customers

there and how quickly that's growing versus straight up consumers? >> yeah, so that's definitely growing at the current rate faster than our consumer business again, you know, our last earnings call, over 50% growth in that business so we're definitely looking forward to seeing, hey, what happens in a post-covid world as people come back not five days a week to the office but even three days, one day a week it'll force offices to restock their pantries we certainly saw that in the sliver of hope right before delta hit and right before omicron hit. hopefully as we go into a post-covid world in '22, you're really going to see major reacceleration in the business >> are there categories where you are simply unable to get supply at a reasonable price, where you're telling customers, no can do? >> yeah, carl, so it's really sector by sector you know, as we moved into fresh foods with our most recent acquisition, you're seeing some of those prices rise beef is up over 15% across the

industry year-over-year. there's certain things like that, where there's nothing we can do but pass them along -- some of the costs along to the customers. when you get to the fresh foods, that's where you really see some of those aspects, carl. >> chieh, it is david again. i was unfamiliar with your company until your appearance, you became public via spac, i guess, last june what would youdefine for our viewers as your core competency, given what seems to be a crowded competitive landscape with companies that are doing similar things >> we have to further differentiate. so i wish you guys were on the floor when we did ring the bell. but, unfortunately, it was in the moment that you guys weren't in the studio yet. but as we go further, we have to further differentiate, as you mentioned, with our software and b2b business we not only have a retail business, of course b2c and b2b,

selling the packaged goods to home and offices, but also we've extracted the technology and have begun to sell that across the world. so when you find out -- when we found out last year that we started that business, i think the world found out pretty quickly it was real. our first year of business, selling software, was last year, and we had a $20 million print on that business for the first year we were selling software in 2021. >> all right chieh, we'll stay tuned. appreciate it. thank you. >> thanks, david as we head to break, with the dow up 1% this morning, check out the biggest gainers on the dow. led by boeing, which is up 3%. disney and j&j, which reported earnings this morning. we'll be right back. hybrid work is here.

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welcome back we've talked quite a bit about elon musk, and we've talked quite a bit about the airlines now, we're going to discuss them together spacex reportedly has been working with delta to conduct tests of the space company's satellite internet service starling, according to the "wall street journal." a report citing delta ceo. the purpose for startling to capitalize on the growing demand for better and more in-flight

wi-fi. this is something musk and other executives at spacex talked about for quite some time. and for airlines like delta that have been looking to boost that service for passengers, especially business travelers. to be clear, satellite operators like via sat and intelsat are in the business of providing in-flight wi-fi to airlines. it is estimated the number of connected aircraft could double, to as many as 20,000 by the end of the decade. spacex, as of march, had a quarter of a million subscribers, including enterprise clients the federal aviation administration must certify spacex's equipment installed on commercial aircraft. the s.e.c. already granted permission to test the startling service. spacex has starlink satellites in low earth orbit already, as it continues to grow and roll out global service another launch is actually on tap for starlink this week, as

well we'll continue to keep our eye on that. major averages all trading higher this morning. that's going do it for "squawk on the street. "tech check" starts now. good tuesday morning welcome to k"tech check. i'm carl dierdre bosa is in hollywood we'll start with netflix, down 40% since january. could today's results lead to a turnaround is a buyout of twitter imminent apollo enters the bidding in some ways. later, is robin hood over our undervalued both sides of the debate after a crypto expansion abroad. our feed begins with netflix just hours from reporting results for what some are calling here a make or break quarter for the stock. s julia borston with us on why and what to