something he doesn't like in the stock. the hedge fund investor pulls the plug on the investment he said the valuation was attractive six months ago. florida lawmakers want to end disney's special status over the don't say gay law. we will speak to one of the people behind the effort it is thursday, april 21st, 2022 "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc live in times square i'm andrew ross sorkin along with joe kernen and melissa lee. becky is off today let's dig into the news that joe

mentioned. the dow up about 202 points. nasdaq looking to power higher 135 higher s&p up 31 points let's show you treasury yields if we could. flip the board 2.87%. we have not moved that much. let's get to the story that joe mentioned. bill ackman dumping the stake in net netflix. the loss on netflix reduced the year to date returns by 4 percentage points. key quotes from the letter, in the light of recent events, we lost confidence to predict the future's prospects he says one of our learning from past mistakes is act promptly. that is why we did so here in january, ackman disclosed a purchase of 3 million netflix

shares which made him a top 20 holder of the stock. he is one of the guys who, i think, is always trying to swing for the fences of offences sometimes he hits the ball and hits a grand slam and sometimes he whiffs. >> he is a guru. >> ackman, he's young and h han handsome he has the eyelashies he has more money than just than anybody. when you win a battle title -- you know who wins a battle title? .345 i don't think he would lead in home runs. >> he could be a babe ruth in that regard. >> he can pitch. is he is1 out of 3

i don't need someone to tell me netflix is worth something and valuation that cheap and be wrong. why did we not see it? i knew there was nothing to watch. why did i realize i'm not paying this if you raise prices i'll let the service go. i can't imagine letting netflix go because hope springs eternal. >> you don't want to un-sign >> i want everything hbo max. >> i don't think i appreciated it for a different reason. there was so much money floating around at this moment in time. the yolo everybody buying the subscriptions left and right it didn't make sense to me look, maybe this is deflationary >> bowling alleys and mini golf. there is so much to do

>> the price >> the world is option up. mini golf. >> bowling alleys are hot? >> activities away from the basement are going to come back. we were stuck for a long time. what was the other one i saw recently so many sometimes you see crappy earnings we were making hay during the pandemic and tesla. i'll tell you this, every other car is not one of the nice cars. it is the crappy onese s it is the crappy oneseones crappy car. >> model 3 >> yeah. >> it's not crap >> some day every car that goes by is like that and no one is drying don't you see how depressing your existence will be at that

point? everyone sitting in a white model 3 without a steering wheel. we are shuttled along. we're almost numbers at that point. do you see >> i see by the way, you know you know it is working for them is the hertz deal i went to hertz. >> you liked it? >> the tesla >> at the supermarket, i have to drive around the charging stations there are always cars at the charging staketions. it makes sense at the supermarket. >> that's why they put them there. >> my idea was the waffle house. every waffle house should have a charger. >> at the bowling alley and mini golf >> for everyone. >> you don't like mini golf? >> i love mini golf. i thought the highest class and coolest thing is the sign of success. i met somebody who had a bowling

alley in their basement. i thought they made it >> that's when you made it >> a bowling alley in the basement >> it is not easy to get good, i don't think. have you ever gotten 200 >> no. >> me etither. >> the poor man's version of that is the skee ball machine in your home. >> we are so off i'm not taking the wrap. >> you have the -- >> you participated. not my fault >> i'm getting a participation trophy right now >> move on tesla shares are up 6.7% in the market phil lebeau has details. >> reporter: melissa, this is the quarter where you are a tesla investor and say expect.

they beat on the top and bottom line this was not just beating by a penny. on the bottom line, by almost $1 auto gross margin. increased margins up to 30%. estimate was 28% in the fourth quarter, it was 29.2%. and with regard to production in china, they did talk about that. they have restarted. it is limited. they expect it to accelerate as they come out of the covid restrictions that are in place in china h here is elon musk talking about production >> vehicle production in q2 is similar to q1, or slightly lower. we may pull a rabbit out of the hat and be higher. q3 and q4 will be substantially

higher you know, it seems likely that we'll be able to produce over 1.5 million cars this year >> reporter: as you look at shares of tesla, we should note that elon musk on the call, says they have an outside shot of increasing deliveries by 60% last year was 900,000 vehicles increase that 60%. 1.4976 million approximately the estimate on the street is 1.49 it is not far off from what the analysts are expecting one note, if you thought that elon musk would go a whole conference call, including half hour with questions, and not mention twitter, you are correct. word did to the come up once not once during the call last night. guys, back to you. >> that was a surprise to me,

phil not one single analyst would ask him about that and whether or not he would use his personal stake in tesla to borrow against for the twitter deal only because that would actually impact shareholders. when you are on the call, you mentioned the phrase which was interesting to me. he was never as optimistic as he was about tesla as at that moment in time it struck me as really if he is going to say that with a free pass to throw every single potential headwind out there as a potential reason why they may not hit 50%, that was really bullish. >> reporter: extremely bullish if you went to the call hoping to get more details regarding the acceleration of production in germany, you have a little bit of that. you also got vintage elon. he loves to sit there and say

robotaxi is coming we will show you next year and then mass production in 2024 we will invest more money in the humanoid robot we think that is a bigger business than auto business. typical what we have come to expect from him over the last several months that's what we gotgot. a lot of that on the call. >> to answer joe's question. that is why the margins were strong snx was better than analysts expected >> reporter: right the model y, joe, is driving things right now you may see a lot of model 3s where you are, but the model y is really the accelerator in deliveries in the u.s. the production in austin will focus on the model yoirks. they y. they will build in austin for the eastern half of the u.s.

there is a big wait time for the model y. that is where you will see acceleration in deliveries as austin gets up to speed. >> i don't see too many of those. >> why >> i don't know. they look like the euro -- the tiny thing everybody had for years because of $8 gas. >> let's ask phil a design question the vehicles have not had meaningful styling upgrades in a very long time do you think they decide they need to do that or have to do that or want to do that anytime soon >> reporter: they gave no indication they plan to do that any time soon. talk to anybody in the auto business it has been this way for more than 100 years at some point people look around and say that looks stale and old. if you are tesla, you run that risk you know, the model s and model

x, they have tweaked them. they look similar to what they looked like seven or eight years ago. >> phil, thank you phil lebeau. we have more on deck phil is back with the conversation with the new american airlines ceo robert isom and coming up, crypto in focus. with bitcoin above $40,000 a lot of stocks related to crypto in that sector haven't been faring well what's up with that disconnect what does it mean about bitcoin? we will talk about it with the executive director of the blockchain association u ay tuned yoare watching "squawk box" on cnbc >> announcer: this cnbc program is sponsored by truist wealth. where meaningful relationships matter most. nice suits, you guys blend right in. the world needs you back. i'm retired greg, you know this.

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cryptocurrency and related stocks are difficult divurging coinbase and robinhood are down. we have kristen smith. executive director of blockchain one is a digital asset the other is a stock

right there, that is a big difference is one the tail and is -- are either the tail or dog or is th tail somewhere else? does one wag the other i don't know if that happened. >> they are certainly related. whether or not one is wagging the other is unclear i think you pointed it out correctly. bitcoin and ethereum and cryptocurrencies are commodities. those markets are driven by very different factors. some common factors as the stocks when you have a company with a management team with competitors in the marketplace, there are several factors you don't get in the underlying commodity markets. they tend to fall and rise together, it will never been perfectly correlated that is okay the bigger point, though, is

that individual investors want to have some exposure to crypto as part of the balanced portfolio. i think what often happens is the stocks like coinbase and robinhood and others that you mentioned are used as proxy for crypto the real way to get exposure to crypto is have a more direct investment that is why i'm hopeful we will see a bitcoin etf and etf's based on others. there really is a huge demand for investors to get exposure to crypto. >> how does beta compare crypto has a higher base than bitcoin? >> i think they are valuable this is like owning a piece of the internet in the 1990s. this is the first time where you can actually have a piece of the underlying network upon which all of the new einnovation is

filled i think everybody should own a little bit of crypto you don't want to put your entire life savings in it, but this is an important asset class. i think giving people more options to invest. >> how do you value crypto stock to float would a crypto related stock and you use normal metrics you don't know if you have a lot of the normal metrics you have in terms of earnings per share when interest rates go up, stocks contract. the same thing happen with the underlying crypto asset? not necessarily? >> the underlying crypto asset, you have tlo look at the number of people building on top of the network and applications on top of the net woke.

t network. there are analysts looking at the assets in different ways i think that's going to start to be normalized over time and invest ors will understand how o judge. when i look at my personal decisions, i look at what can this network do and enable you have to think about these things as investing for the long term because that is where it goes. >> kristin, i know people like to analgyze to the 1990s i think in the 1990s, if i bought into palm, palm was the next big thing i remember rim bac

b blackberry i can go down the list that seemed to be the next big thing. ios did not come along until 10 or 15 years later. what is to say that this operating system you are buying into today is the operating system a decade from now >> that is why thereis risk involved, andrew you are right. these are like operating systems. these are giant super computers. they are powerful. they are decentralized they may not all win out i think that is where this speculation comes in which of these is going to be the one that developers are attracted to there are only so many developers in the world that have the understanding of how to build on top of the blockchains. they have lots of choices where they want to go depending on on the features for the certain

blockchain there will be winners and losers that's okay. that's what markets are for. in time, that will sort itself out. it is a big opportunity and there is a lot of amazing development. >> there's a windows in there somewhere. >> yes >> kristin i like that. own a piece of the internet. money. fluctuating itself thank you. >> you said joy yesterday. >> joy on -- not are sarcastic you will note if it is satellite-radar task particular. coming up, fallout over the don't say gay law. disney in trouble of losing the special status stay tuned you are watching "squawk box"

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activist investor carl icahn calling on wall street's blackrock -- i'm sorry this is not funny. joe said something during commercial break. >> it happens a lot. >> not so much let's talk about carl icahn. he has support from mcdonald's suppliers to treat pigs more humanely with the interview, icahn accused blackrock of cherry pic picking issues they care for the small gestation crates they use to house pregnant pigs icahn has been pushing mcdonald's to get rid of crates for years.

a vote is scheduled for next month. >> pregnant pigs are at risk for other pigs that was the idea. >> for the crates? >> yeah. you can imagine. it's like a coach of an airplane that space is at a premuipremiu. not a lot of space i said this before what gets me is animals are better than we are a pig is not much different than a dog. i don't like the idea. >> do you eat pork >> i do. >> okay. these are all pigs that become mcribs >> i know. i know they are wonderful creatures they are wonderful creatures i don't know about cows. i guess, they are, too i don't have the same relationship with a cow. i know pigs are sweet animals and a lot of people have them. dogs you know, german shepherds are alike.

they are people. they are amazing i get teary. not so much with a lot of people i do with my -- >> don't give a crap about the people the dogs and pigs. >> gordon gekko. they're so pure. they are they're pure they're pure we talk soaring commodity costs on alcoa first quarter results. during april -- don't you remember cooper? during april, financial literacy month with our cnbc contributors anthony scaramucci >> financial literacy means to me, safety, security and

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quarterly results out from at&t adjusted quarterly profit which excludes results from the now

spun off warner media unit that is 4 cents above consensus. this is a messy quarter to try a analyze the market share you see revenue above. what will drive this stock it will be the way the company adds customers with the focus on telecommunications and broadband. some of the numbers at first blush look like they're solid. highest first quarter post paid phone ads. $691,000 $5.3 million that is the best in the

industry according to the company with the low turn at 7.9% near record levels there were different seasonal things involved. you look at cash flow and everything else for the company. we mentioned -- i don't know you think they're happy that they're not -- i have allergies. sorkin, you think they are happ they don't have the other issues with the streaming >> with the multiple >> just trying to manage that business i would rather -- if you needed to focus, would you rather focus on a couple of things? >> never owned it to begin with. maybe. is there any question? >> even direirectv they were trying to build scale. >> if that is the measure.

>> this is the stock for the time value stock. the dividend payer et cetera. >> this may be its moment. >> right exactly. >> right among the other reports across this morning. dow with adjusted earnings pep beating the 2.06 alaska airline reporting a loss for the first quarter. smaller than predicted it was above estimates alaska air was cutting capacity for the quarter due to staffing issues that stock up 4% pre-market. coming up, this is fascinating. why taxpayers could be the ones hurt in the disney battle with florida over what's been called the don't say gay law. details are next followed by the interview with the state lawmaker clashing with disney you do not want to miss this conversation it is coming up right after the break. you are watching "squawk box" on

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then let's take back our market share. checkmate, chess heads. girls, i said “bedtime”! florida state makers looking to pass three bills in a special session. one to impact disney's special

status in the state. it could hit florida residents in a surprising way. robert frank has more. good morning, robert >> reporter: joe, the bill passed the state senate in florida and headed for the house. it would eliminate the disney special district in 2023 disney should not have special privileges, but removing the district could leave florida taxpayers with a higher tax bill it may benefit from the district is regulatory control. it doesn't have to apply for building, zoning and planning permits of s permits. it has tax benefits. it pays for sidewalk and sewer and other infrastructure residents would have to pay for those services which means higher tax bills disney pays $300 million in five years and then $400 million in

sales taxes from ticket sales. the worry is the debt. the special district has between $1 billion to $1.76 billion in bond debt. this could be transferred to local governments. that could total $1,000 per county taxpayer. the bond terms prevent the state of florida from altering or impairing the special district or the rightsof bond holders we could end up with a situation where the bond holders could challenge this in court because the covenants are broken a lot of financial repercussions here for taxpayers that we are now starting to understand joe. >> that is wide ranging impacts. i don't know, robert, what is the likelihood that this actually becomes law and stays this way what do you think? >> reporter: it will become law

that is likely disney will reapply for the special district in 2023 if it meets the terms at that point that the governor and legislature finds acceptable, it can restart the district we could see the pause or reapplication. i have little doubt this bill as written now, will pass >> then there is the -- where did i see it the iger-chapek saga continues "the wall street journal" post >> we asked that >> are there rumors iger could come back? he is like a child he is young. he's at the beginning of his career 67 >> joining us right now to continue the conversation.

representative randy fine. he filed the application to eliminate the self governing status representative fine, thank you for joining us >> glad to be here. >> tell us why you filed the legislation to begin with? >> well, when disney kicked the hornet's nest, we looked at special districts. we found six were created before the florida constitution was put in place they have all sorts of weird things in them disney had the right to take land outside of their district they had the right to build a nuclear power plant without state oversight. they hdid not have to follow safety codes this was not just disney, but five other districts in the state. >> representative, legat me ask you this you are a conservative you believe in free speech you have been outspoken about free speech. >> absolutely.

absolutely >> here's the thing i'm trying to reconcile it appears -- and i think based on what you said in kicking the hornet's nest -- this is legislation that is in retaliation for free speech, no? >> no. i believe in free markets. the state of florida for 55 years has given disney special privileges that competitors down the street don't get universal doesn't get the improvement district to regulate neither legoland or bush gardens. people wanted to deal with the special district for decades disney had the political power to prevent it for decdecades. what changed is bringing california values to florida floridians said you are a guest. maybe you don't deserve the special privileges anymore >> that is why there is -- fair

to say this is retaliation for their speech is there any other way to look at it in that context? >> i don't think that is fair to say. i think the issue that people wanted to tackle for decades is now possible to be done because -- >> because of something you said >> you said they kicked the ho hornet's nest. it is a cause and effect relationship you looked at revoking special district status. >> i think what they did is we want to bring california values to national weflorida. we want to misrepresent laws we want to tell floridians how they should live their life the california way floridians said we had enough. you are a guest in our state you are not owed the privileges that competitors don't have that no other company in state of florida has. we will look at them we are not just going after disney

we are going after every special district there are six created before 1968 when you kick the hornet's nest and people look at things, they identify issues they didn't know about. in tallahassee and washington, we find a problem and tackle it. >> what message do you think this sends to other businesses that are thinking about relocating on to florida and to the extent they would be relying on any instance on certain laws that are in place today what those laws could potentially look like in the future? >> we're in good shape a number of years ago, florida got out of the business of providing special considerations to companies we don't do that anymore this is an artifact of that time where one company in the state is allowed to secede from the rest of the state and govern itself no other company in florida in any industry has this right. so, i think this is something that makes sense to do in

general. because of the way disney has behaved, there is the political will to do it. people have tried do this before they have just been unable to. >> how do you deal with the issue of the cost to taxpayers this district has 1 to $1.7 billion which would be transferred to the local jurisdiction how can you make the case that floridians should foot that bill >> it is a great question. it is not true >> not true? >> it is a local government right now. the taxpayers of the district already owe that money it would go to other governments in place the revenues go along with it. des disney is taxed by that improvement. those will be paid on osceola county the taxpayers could save money

because you have duplicative services >> representative, if disney could leave florida, would you be happy >> of course not nor will they. i think it is fair to say why should disney be able to govern itself when competitors do not i'm not only in favor of free speech, but in favor of free market this is crony captitalism. you are a company. we are giving you perks. >> it so happens you and i are in agreement on one thing. from the policy perspective, i don't disagree with you. it may have been poor policy originally to make the agreement. it may have been the right policy to bring disney to florida at that time the question is do you hang on to it? the question of this moment is whether it appears to be -- not

appearance, but it is -- retaliation for perspective they put for the publicly they are obviously not making the laws in this regard. clearly folks are unhappy with what they said about it. >> when my 14-year-old wants to go to disney world, he gets special privileges and he is on his best behavior to make that happen disney has not done this here. because of that, it has created the political will that has been done for decades disney has gone out and intentionally alienated floridians by misrepresenting legislation that a number of overwhelming people support. they angered the people who hosted them in the state the people are saying the time for the special privileges is over. >> you mentioned good behavior, representative fine, it sounds like if you invite a business to

come do business in your state, they have to fall in line with your political views in your state. did i get that right >> no, i don't if you ask for special privileges and ask to treati us better make us exempt from safety and zoning codes let us secede from the state you shouldn't not n't come to voters there is no don't say gay bill in florida it doesn't exist disney has gone out and said they will make it priority to override the will of the florida voters that is not something a good guest does. >> representative fine, we very much appreciate you coming on the program. i imagine this debate will continue we hope to have you back and continue the conversation. >> happy to do it. >> you bet coming up when we return, an exclusive interview sand deep tve with the commodity swings

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ferential ne aluminum prices are down from about 20% from mid-march highs still up 150% in the past year joining us now for more is roy harvey the alcoa president and ceo. tell me what is going on in north america in particular in terms of you getting aluminum to

where it needs to be you're having a problem here, i'm wondering what the trajectory has been in recent weeks and whether or not that's improved >> let me start off with a basic overview what's happening particularly we over the space of the end of last year and coming into this year there isn't enough production to be able to supply all that material to our customers. so our value added books for commodity material as well they're full and teeo be honest we're tryingt find every kind of metric ton we can. it's how you produce and that has a lot to do with going up the river and the availability of rail cars, very basic thing like that. because we have the customers, have the material to produce and

now we need to get it back to customers. the great thing about the shipments didn't go out in the first quarter you can get them back again the second quarter. it's something we have our dedicated teams able to work through the issues, and i see a lot of improvement there and we're getting those shipments out and i see very robust demand across our main markets. >> on the call you sort of sounded a cautious note i thought when you you said we just saw the imf bring down their expectations for economic growth are you concerned at all that this sort of inability to get that supply out to customers in a very timely fashion that in that effort to sort of ride out that supply chain snarl that you'll miss some of that demand and that demand will actually start to fall by the time you get the supply chain issue

worked out >> i don't see a significant issue there. the fact is that aluminum sort of crosses all these different end markets, and so it's very -- motive is important in commercial transportation and consumer electronics and everything and so when you look at how we're working to produce aluminum and use our logistics system to get aluminum where it needs to be, i think it's helping us to make sure that we can keep those supply chains flowing. and stow we look across the economy right now and there is uncertainty because of the russian invasion of ukraine. there's uncertainty that exists and therefore that creates some caution that's happening with our -- the consumers of our metal. but at the same time the end consumer is still buying as much as they have before, and so it's a matter of working through those issues and making sure we can get our material where it needs to be. and because aluminum is so critically important to today's economy but then also the future economy because it can play such

an important part of decarbonization as an example i really think the strengthen and demand here in the short-term is going to continue and we're going to find ways to make sure our customers get the products they need. and with the type of characteristics they need to be very successful in their production as well >> have we seen peak inflation, roy? have ewe seen the peak in aluminum prices? have you seen peak inflation when it comes to the other costs you deal with? >> we're still seeing inflation continue across our cost structure. we're seeing that happen both on the energy side and you can see that very clearly in the european energy market we actually had to at one of our plants in europe you tend to see those cost inflations lagging by about 60

to 90 days what's happening in the aluminum market. have we seen the peak? i think that depends very much what's happening in the broader macroeconomy we're seeing a lot of strength in aluminum specifically because we're having supply issues again, i think we can get the customers what they need but i wouldn't say we've reached peak aluminum because we have such a good view on forward structure >> good to speak with you. coming up surging air travel demand and confusion over masking on airplanes we're going to talk about all of that with the new ceo of american airlines. much more "squawk box" ahead what if you were a gigantic snack food maker? and you had to wrestle a massively complex supply chain

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welcome back to "squawk box" right here on cnbc we're live from the nasdaq market site in times square. and melissa lee is in for becky this morning take a look at futures as we break down some of the tesla news, aluminum and netflix news.

s&p 500 up about 36points. joe? >> and american airlines just reporting and phil lebeau joins us with the numbers. hey, phil. >> hey, joe. it's getting to be a broken record when it comes to the airline industry q1 results for american much like their competitors better than expected. smaller than expected revenue coming in, about a half billion dollars better than expected at $8.9 billion the guidance is what's going to get people interest in america this morning the company saying not only did it swing to a profit in march it was expecting profit in q2 they haven't given guidance in q3, q4 expect them to forecast an a profitable 2022. they're looking at revenue up 6 to 8% in the second quarter. think about that 15%, you rarely

see that type of an increase for the airlines when it comes to revenue per available seat mile but that's america's guidance for the second quarter, pretax margin up 3 to 5%. the ceo of american airlines this is his first quarterly earnings report. we'll talk to him not only about the numbers, more importantly about the guidance for the second quarter, the incredible demand out there now for people who not only want to fly but pay up when they're flying, and also, yes, we'll ask him about what's happening with the masks. they're not mandated right now but there's a lot of confusion out there with the number of travelers. guys, i'll send it back to you >> pretty big gain there, phil, almost 10% >> not surprised >> meantime a lot of other stocks in the news to tell you about this morning and guess who's looking at them? dom chu. >> an early morning.

shares of at&t right now higher by just around maybe 2% or so. you can see now about 1% roughly 75% of premarket share volume helped along by amongst other things a 2.5% rise in its core wireless revenue business. now, at&t also added roughly 691,000 wireless customers that pay a monthly bill, so we'll watch those shares up about 1% next shares of dow up in the premarket right now on relatively thin tradeal volumes. this is the industrials better than expected profits, also revenues as well dow was able to weather higher input costs bypassing along costs to customers, maintaining margins. up about 7% over the last year and you heard from phil about american alaskan air 3.5% the airline operator reported than a smaller than expected

loss much like american on better than expected revenues. alaska did point to a particularly strong month in which its posted its highest ever cash sales month in its company's higsry a very good trade here for those airline stocks and end with a quick check on dd global which is negative premarket after being negative yesterday and negative for the better part of the last year. you can see there. we've got a report from bloomberg citing sources familiar that certain chinese officials say they're not satisfied with proposed punishments and revenues for didi global and that along with a nikkei report that says it's going to suspend its food delivery business in japan from sources there. down 0.5% in the premarket trade right now. i'll send things back over to you. >> thank you very much, dom chu. >> how will the rest of earnings season play out for investors? what's the right moves to make

let's get to the head of the investment strategy group at goldman sachs and also goldman's chief investment officer for consumer wealth and management and in any environment i guess things are working, there's things that don't seem to be in favor, and then maybe there's things that are not going to be in favor anytime soon. let's start with what's working. what looks good just globally right now? >> good morning, joe, and thanks for having me. it's a very important question in terms of what has been working but most importantly what will continue to work for our clients. we've had a cup of key investment themes. the energy sector has been an area where we have tilted the portfolio towards both the energy components of the s&p as well as partnerships, and it's obviously worked very well last year the energy sector, for example, was up 55%. this year it's up about 47 compared to the s&p down about

6. most importantly our expectation is we're going to continue to see that out-performance relative to the s&p 500. we expect the energy sector, for example, to be up somewhere between 10% and 20% from here versus the s&p probably up about 6. we expect mlps to be up around 10 to 20% again versus the s&p and our view is valuations are favorable, dividends are very attractive, and for people concerned about taxes, the tax advantage distribution yield of mlps very attractb obviously there are times it's a very volatile sector to be in, for example, during the pandemic we actually had some of those recommendations and those sectors were down about 40%. but our view it's a very good place to be with a base case assumption for crude between 10 to 100 and $120. so our base case that's about the price range we're going to

have another key theme we've had actually for a lot longer is overweight to u.s. equities versus emerging markets specifically also china. if you think about u.s. equities down 6 this year, china is down 19%. if you think about last year, u.s. equities up about 29, china down 20. and we think this is going to continue for a very long time. you could actually go back to the global financial crisis and u.s. equities are up sort of since inception of the trough of the global financial crisis, up about 740% chinese equities up only 175%. that's a huge gap, and our expectation is that will actually continue for quite some time as you know we've had a theme of u.s. preimminence for well over a decade, and that translates to our third area we think is working and that is the u.s. dollar u.s. dollar is up about 5%,

obviously better economic growth, a federal reserve that is tightening policy fast than any of the other major economies, and we think that is supportive of the dollar our view is we're probably going to get another 3 to 5% of returns, and we think the reserve status of the dollar is going to last and very sustainable. when there are people out there who ask whether the reserve status is in jeopardy we make a statement there is nothing going to compete with the dollar whether it's other currencies, whether it's rmb or crypto currencies >> it sounds like in terms of energy you're kind of agnostic i think because it's been a great sector to me, and in your view will continue to be so when you say energy you're not really talking about renewable energy you're talking about the energy that we still -- the legacy energy almost.

so if you were heading an esg, the focus fund you might not be seeing these things, i imagine >> well, obviously everybody's focused on climate change and global warming and all the issues we have to worry about. but at the end of the day the world consumes about 100 million barrels a day of crude oil, and that's not going to disappear anytime soon and when we're talking about the energy sector weir talking about hydrocarbons we're talking about the major energy companies you just talked about the airlines you talked about steel companies just before. these are all companies that are very energy intensive and use a lot of energy. yes, our view when we talk about the energy sector is oil and gas. >> you're not talking solar, not talking hydrogen maybe you'll be talking about nuclear at some point, i'm not sure, but that's a long process. i just -- i heard that and it'd

be hard if you were trying to do the best job you possibly can for your clients globally, it'd be hard not to recommend something like that so i see the quandary that a lot of money managers are in right now if they decide that they want to talk the talk of esg i don't know how you do it the -- how much of your global perspective is based on inflation and central banks around the world and their reaction to it >> we do believe that inflation let's say in the u.s., for example, with the last print we got for headline inflation around 8.5% has most likely peaked obviously we need to be appropriately humble nobody expected inflation numbers core or headline to get to these types of levels but our view when we look at the three key drivers of inflation, so we would have something like the supply constraint goods such

as cars, for example, the vehicles used in new electronics, et cetera, then we have wages and we have housing we do think that the goods component, inflation, will come down and we're going to see that coming down through the course of this year and the rest of next year. and that's going to be significant. we also think that there is a chance, not a high chance but a pretty good chance that wage inflation is going to stabilize around these levels for a little while longer but then start declining as well because, in fact, we're beginning to see an improvement obviously in labor force participation. and what's remarkable is we have seen an amazing increase in the unretirement of people 55 years and older. in fact, the level of unretirement is above average and you have about a million people out of that group that is unretired. and so when we're talking about the labor force participation we have to recognize there's a lot of noise from the pandemic, and

we need to see that clear up and our view is that we're going to get more people, and so you're going to get slow, very gradual decrease in wage inflation, and then finally housing. and between higher home prices and basically higher mortgage rates with fixed emergency rates about 5%, you are going to see some pressure on demand as well. it's going to take a couple of years, but our view is generally inflation will be headed down. and that gives the fed some flexibility, but across the board we're seeing central banks raise rates and we're going to see balance sheet reduction. >> sharmin, thank you. great to have you on as always goldman sachs head of investment strategy >> big time. >> we're just getting earnings results off black stone. the private equity firm reporting distributable earnings of $1.55 a share that compares to consensus

estimates of $1.07 it was the best quarter in the black. stone history. the president john gray will join us to talk about the quarter in the next hour this has been a monster performer. it's outperformed the s&p 500 and its peers for the past quarter as well as the past 12 months it's up 50%. coming up bill acumen cancels netflix, the story and other headlines next >> netflix canceled him and then he canceled them back. >> yes netflix canceled a lot of people yesterday. the garden state turns into the weed state today recreational marijuana sales being legalized today. we'll have a live report from a dispensary and what it could mean for the pot stocks. and take a look at the pot stock sector there we are we'll be right back.

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animals. he's nominated two directors to the mcdonald's board with a vote to come at the annual meeting on may 26th amazon has launched a new service that lets other retailers use the amazon shipment fulfillment network they'll be able to orderimes on other retailers websites and use payments and shipping information stored in their amazon account and bill ackmen is cashing out of netflix with a lot less than he sold in netflix tumbled 35% yesterday following its quarterly earnings report leaving it with loss a about $400 mill. the stock, by the way, is lower again this morning premarket >> it's a $100 billion company now, and what point would

regulators allow a big media company to buy a netflix if they so choose? or a tech company. >> it's apple who has a lot of cash for me the issue is how would they pay for it? they'd have to lever up even more >> that would be one of the biggest acquisitions ever. >> it would be a huge check. >> that's the question, i don't think it's an apple deal i don't think apple wants this in part because -- >> they have the cash and they don't have to raise debt to -- >> maybe if you're an amazon or maybe if you were a google or alphabet, but i don't know if the regulators would allow that. they looked at that mgm deal with amazon. >> there's so much -- if there was a time to do a deal it'd be now given how many streaming services and apps there are, right? i mean. >> they pointed out they don't even have some of the -- certain legacy streamers have more stuff just in the can that aren't --

>> you're saying the library prch their library are going to be netflix originals which are things effectively created in the last decade, which are a problem. >> is there a single netflix original -- >> how much of the price tag would be for intellectual property not as much, the algorithm, customer base, the information >> look, as you know for the last decade every media company in america was dreaming of being netflix, wishing they'd bought it, wishing they'd own it, thought if they had that kind of scale they could make hay. there is a pendulum swing to all these things, and the question is this the moment >> just because a stock goes down 35% doesn't mean it makes it a take out target it could mean the stock is no longer what it was

>> it was already down 35% and then it went down another 35 >> right but we weren't having that conversation two days ago. >> i don't like watching the, you know, this is suggested for you to watch >> like the crime series that's in english >> i've got 15 of them previously watched each one was previously watched for eight minutes. >> have you watched anyway any of the elon musk docs. >> like going to space that's on my list. >> it's on netflix >> you've got to be in the mood for a doc. >> really? that's my default. >> the night stalker doc scared me >> to be continued more to come >> i hope so yeah coming up could your summer flight be at risk? because there's no fuel for the plane. brian sullivan's got that story after the break. speaking of planes american airline's new ceo is going to be

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now the answer to today's aflac trivia question. what billionaire ceo created a video game called "blastar" at the age of 10? the answer, elon musk. he later sold the code to pc & office technology magazine for $500 >> i figured that was -- the other day just reading about, you know, it was complaining being on the spectrum and not having a lot of friends, and when he was young he wrote a lot of code constantly and i'm like writing code when you're 10, video game code when you're 10. that's some potential. >> imagine what he could do for twitter. i just wanted to throw that out there. >> i have. >> what happened yesterday

i thought yesterday was the day. >> it doesn't mean tender is the night. i don't know what's going to happen could your summer flight be at risk because there's no fuel for the plane? brian sullivan joins us now on a jet fuel shortage right when we all want to fly. >> by the way, lonely is the night destroyed billy squire's career the video of him ripping off his tapg top and doing the dance, true story guys, if you're flying this summer come back to me after this segment they're googling it right now. if you're flying this summer double-check on your flight not just because of crowding or staff shortages at the airport but because of jet fuel and whether or not your plane is going to have the gas it takes or needs to take off there is growing concern about regional shortages of jet fuel particularly here in the northeast. remember we already had a scare in march in texas when austin's airport warned passengers there

may be a problem with jet fuel supplies their jet fuel storage tanks, by the way, the same size they were they were in 1999. seems like bad planning but that's just me jet fuel inventories from philly to boston are at or near record lows since the data began being collected in 1990. the latest numbers we have, by the way, but reports and sources saying numbers now look the same as they did in january jet fuel supplies here in the east coast are down for a couple of reasons number one, strong demand for flying and two, reduced output because refineries, some have switched over to diesel fuel which is in shorter supply and more profitable because of russia's sanctions. while jet fuel shortages are not likely everywhere, there are some airports that are already potentially running low. specifically philadelphia,

boston logan and albany new york andy, he and i went back and forth yesterday, told me jet fuel as recently like yesterday being trucked in from ohio to albany in philadelphia and from lower virginia into boston guy, trucking jet fuel from that far away seems odd, so i asked andy if that was normal and he said this, quote, it's about as normal as rain in the sahara so the fact these airports need to get fuel from 1,000 or whatever more miles away is a bit of a warning sign for the summer because demand as we know is only going to pick up little better in the midwest and west coast, but here in the northeast if we see demand pop and refinery output now pick up, you may want to double-check on that flight especially in philly, new york, and boston as the bearer of your good news, i'm brian sullivan back to you. >> looking at tight supply and

what that means in an already inflationary environment and with demand soaring, what are ticket prices going to do based on that? it almost reminds me of surge pricing. i figure you'll be able to fly, it'll just cost you. >> well, we hit $7.50 a gallon a couple weeks ago, joe. it's kind of a short term anomaly. but for a couple of days jet fuel costs because of just a confluence of things hit these insane records we are still well elevated my point is this remember that philadelphia refinery that blew up in june of 2019 it produced 350,000 barrels a day of refined products. a lot of that was jet fuel wasn't a huge amount, but it's enough on the margin that it may matter here. and, you know, hopefully we'll have enough. isn't it nice to talk about something other than masks on the plane?

>> i don't want to talk about billy squire ripping his -- but i do want to ask you why jay wright suddenly retired last night? is he really retiring? he was just in the final four. did you see that >> all my buddies went to nova they're all wild cats. i've got to dig in >> what happened ask someone. >> i care about is the hokies, by the way watch the billy squire video when you see it -- >> i want my time back if i do that >> i'm rick rolling y'all. just check it out. you'll thank me later. >> you've got no insight on -- it's hard to be a coach, i think. still to come our exclusive interview with american airlines ceo is straight ahead. plus tesla shares zooming higher, up 7% right now as the company beat on both the top and bottom lines

we'll talk to a tesla bull in just a bit stay tuned you're watching "squawk box" on cnbc

welcome back to "squawk box" this morning american airlines out with results earlier this hour. i want to get straight to phil lebeau who's got a special guest with him this morning. phil >> andrew, thank you very much robert, ceo of american airlines hey, coming out of the box with a quarter let's forget about q1

because i think everybody knows it was better than expected results but still a las loss but it's the guidance for q2 you said something before we went on that stood out you guys are expecting record revenue in the history of american airlines? >> thanks, phil. american has been around for 96 years. we're looking at a quarter at record revenues. it's a tremendous turn around. >> we knew this was pent-up demand but how much do you look and say how long does it extend beyond that? >> people have been cooped up for a long time. they want to get out and explore. they want to make connections. for us as we take a look out to the future, demand is going to continue we've had three years where airlines have had no growth whatsoever while the economy has increased considerably we've got to make that up and actually more, so i view demand as being robust far into the future >> and on the corporate side that's an area where you believe

it's not just that, hey, it's getting back on the road if you're a corporation or road warrior, it's about establishing relationships again, right >> look, we're only back 90%, 80% right now. as we get out there people are going to want to get out and visit. i'm a new ceo. people want to come and see me it's the same thing in the rest of the economy people have been cooped up too long relationships have faded and they need to be re-established >> how much of this domistic demand do you see translating into transatlantic first and then ultimately as other parts of the world open up, do you see the same trajectory in terms of growth and revenue >> we do every time restrictions has been pulled down demand really returns. while we have strong domestic ipleisure and travel right now i expect travel demand to come back >> you'll do whatever the law

is, but how much does the confusion that may be out there is it more of a drag on the passengers who are out there and they're not really sure what to expect >> look, i care about our customers and i care about our team member. now, of course we're going to do whatever regulatory but we can't have a patchwork of restrictions we've got to do something that makes sense, and right now we can't have our team members -- i'm glad the mask mandate is down, and i'll tell you what, we're going to be on top of it >> are you confident we see better behavior now that the mandate is gone? >> i'm certainly hopeful it puts our team members in position they're out there serving as opposed to enforcing >> we've talked about this in the past doj want to review it, and at the same time the airline you guys are partnering with in the northeast, jet blue, is pursuing a merger with spirit. does that merger, that potential merger, does that change anything with regard to the northeast alliance >> look, that merger is somebody else's business.

i'll tell you this robert hayes and the ceo of jet blue they called me as soon as the news broke the northeast alliance is top of mind and a priority for all of us >> with that alliance the doj review what's your argument to them if they come back in the next few months and say, look, we don't think this is good for competition? >> we're ready the northeast alliance has done nothing but produce the demand and 60 new destinations. the competitive response is what you hope for, more competition, better price for our customers >> brian sullivan before we came on talking about potential shortages of jet fuel. i know you already checked during the commercial. you guys are not in jeopardy of seeing a shortage of jet fuel, but do the increases that we're seeing with jet fuel prices right now, are you expecting -- and i know you can't forecast price, but are you expecting that to be the case at least

through the remainder of this year >> there are a lot of constraints out there but as far as service goes americans are always ready we figured out ways to make sure our flights are taken care of. the industry has proven we can be profitable and that's what i anticipate going forward as well >> talking about being ready and having reliabilityia sent a message to your employees about a week ago you essentially said, look, we're ready for the summer, let's make sure we execute. what did you learn from the snafus you had last year >> first off we're ready we sized the airlines for the resources we have. if there's one truism in the airline business it's if if you have an on time flight food tastes better, service is more friendly, that's what we're focused on we're going to be the most reliable we possibly can that's our focus returning to profitability. >> do you get there being a little more judicious on your schedule >> this year we had 12,000 more

team members than we had last year we already have the largest schedule of any airline, so we're going to be in great shape. >> any concern about the fact the regionals are not flying, because they don't have the staffing right now you've got a number of regional flights you are unable to fulfill. >> right >> how long does that last >> we don't have the regional aircraft flying the summer right now we would like. that's up side to us but there's a supply and demand aspect to this as well we have to make sure that there's -- people want to be attracted to business and that comes with the appropriate wages and work life. and you know what? over time, this is a fantastic opportunity for people that want to come in and fly planes. they can make a lot of money and they can have a great career path >> guys, go ahead. >> phil, it's melissa here and phil, you know this is my

favorite question to ask of airline ceos how do you view full forward of travel spend this year since people were so pent-up in terms of wanting to get out and go someplace? >> hey, melissa. you know, great question i'll tell you what, you know, there's pent-up demand no doubt about it, but i see this is something that is long lasting over time people want to make connections and no matter how communications have changed and how often you can, you know, transact over video, people want to be together i see this as something that is going to continue long into the future >> you're forecasting record revenue for the second quarter i know you're not giving full year guidance but do you expect that type of revenue in the fourth quarter as well >> that's what we're focused on. >> ceo of american airlines. forecasting record revenue for

the first full quarter you'll be ceo. i'll send it back to you guys. >> pretty amazing. we're live in times square, though, phil >> that's true old habits break hard. >> they do i know you've been here and we like it when you come here i hope we get to see a lot of mr. isam on "squawk box. coming up, cannabis sales go live today in new jersey joins us now with a preview. as far as an investment, do you go for one of the cannabis stocks or just mortgage a house and putting on young brands, taco bell. what do you think the better, i'm thinking young brands, what do you think >> joe, i'm certainly not a financial advisor. i am in one of the very first stores that began legal record cannabis sales here in the state of new jersey. we're going to look at what all

th.sanxcitement could mean for bo u. d canadian stocks. that and much more coming up on "squawk box.

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.

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business and long lines are expected today there are lines there, frank >> good morning, melissa there are absolutely lines as people lined up behind me, people outside as well the opening of legal recreational sales in new jersey getting a boost at least in the premarket right now. u.s. operators they trade over-the-counter so we're going to have to wait and see until after the opening bell their stock responds, all the excitement we're seeing in new jersey what we can see as you mention is literally people lining up to be among the first to buy the bud. right now we're at the rise dispensary in bloomfield, new jersey there are about 100 people waiting for the doors to open at 6:00 a.m. this morning most people saying of course they could have bought cannabis illegally, but they were excited to see what this store had and just to be a part of this story. new jersey now the 18th state to allow adult use of recreational sales. in total around 250 million americans live in a state where

they can buy adult use cannabis. they have licenses to sell here in the u.s. while again canadian operators cannot sales are forecast to grow 28% here in the u.s. this year because u.s. stocks have been under a lot of pressure retail investors hold about 70% of cannabis sales and often trade on sentiment analysts feel it could collectively lead to a rally he hopes what we see today is also a canalist for reform or legalization which would allow cannabis stocks to get access to institutional capital. >> it's another step in the right direction. american capital markets are addicted to growth and this is a monstrous growth industry. so fund managers and other people in wall street we bring them out here to show them what's happening, it's going to put the momentum and pressure on the exchanges to let us list >> obviously a lot of excitement about new jersey opening governor phil murphy tweeting not too long ago about the excitement of the market opening, but also the importance of just some other social equity

and other reform issues that have impact people in some communities and have some people imprisoned actually for cannabis while we're also seeing it become a major u.s. industry what they're hoping or saying at least they want people to stay it is federally illegal to cross state lines with cannabis. back over to you >> frank, this has been a big disappointment for a lot of investors out there. over the past year one of the etfs is down almost 60%. margins are a huge issue for thisistry, frank, and i'm wondering if you can speak to that because growers are also facing inintermissionary pressures like higher input costs, wages as well as energy >> you really hit on it, melissa. and at the same time the prices for cannabis are going down double digits both in canada and the u.s. so much cannabis is now being grown, and there's not enough markets to really push it out

to while 250 million americans have access, some from the medical market, some in the recreational market, some people a little hesitant to just get out there and try because it is federally illegal. up in canada one of the big issues is competition. about 50% of the market is controlled by the bigger players like an aurora, canopy and till ray, but then the other 50% there's literally thousands of smaller companies, some of them selling at a loss just to stay open so some different market structures here and some of these companies make investors kind of hesitant to put their money in cannabis. >> frank, thank you. coming up when we return tesla shares they're rallying, this after the electric car maker reported record quarterly profit we're going to talk results, elon musk and so much more after the break. we're coming right back.

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this phone? fewer concert tickets. this phone? more concert tickets. and not just for my shows. switch to xfinity mobile for half the price of verizon. that's a savings of over $500 a year. switch today. welcome back to squawk tesla shares are higher this morning after the company reported earnings that beat on the top and bottom lines, revenue jumping 87% from a year ago and deliveries topping 310,000 vehicles for more on this and tesla's outlook i want to bring in annalist give us your expectation at this point. you saw the number sounds like they were even higher than you thought. >> yeah, we did see they beat

expectation on the top and bottom line. i think one of the key take-aways is that we heard they planned on producing a custom built robo taxi vehicle. so this is a car without a steering wheel or pedals and they plan to get production of that car in 2024. of course tesla has been saying they want to launch a totally fully autonomous vehicle some time this year we expect them to start a robo taxi business, a ride hail business with full atonmy, which could be very profitable and the fact they're planning on producing this vehicle means they're fully committed to this vision, right? you can promise something if you're just delivering it on a software basis, and if you're late on that promise people just keep on buying full self-driving you still make money if you're late on something and you're dedicated hardware to it, that costs money so i think this is an important step and a critical thing to think about in terms of their

commitment -- >> how much of the ininvestment do you think at this point in the ball game given the evaluation is around a 2024 rollout of an autonomous taxi? >> we actually just published the latest version of our 2020 expected price target for tesla. and our expected value is around 4,620 per share. this is an extremely profitable business it totally changes what they're doing. it turns into a recurring revenue model instead of a one off sales model and we think it could be profitable. of course that's two years later than elon musk says they will solve for fully autonomous driving. so i think this could be huge. >> speak to the skeptics who would say the following. elon musk has promised autonomous driving year after

year i believe starting as early as 2018 within the context of -- he would say it's coming 12 months out speak to the skeptics who would say that autonomous driving can only really happen meaningfully on roads across the country if they use lidar in terms of a technology that so far elon musk says that he does not want to use? >> yeah, you're absolutely right that we've seen thim promise things in the past and fall short of those time lines, which i think is exactly why the midpoint of our estimate, again, is two years later than they expect to solve fully autonomous driving. i do think the commitment to hardware is important here so being late is really going to matter more. but in terms of lidar, of course wemo and cruise are using lidar on their systems, and in wemo's case actually they've commercially launched something for consumers. when we look at -- if we take a

step back and look at deep learning most of the most impressive ones we've seen in that space have been driven by these large models that require a lot of data feeding into them. so that's the advantage that tesla really has they have the option to pull from billions of miles of customer data. so it's a camera focused approach but a lot more data than peers >> the thing i've never understood about the decision to not use lidar is you ever drive a car into the sun and mean you're driving down the road, the sun is coming at you and it's very hard to see. i'm not a physicist, but it's hard to imagine -- camera can't see anymore than your eyes can see. and given that tesla has effectively not to use lidar and also not to use radar at this point, right they're simply just using

cameras. and when you talk to people in the industry and i know you do, that live in this space they sort of sit there thinking their mind will be blown if in fact -- and elon has blown peoples minds before, but, there is a genuine skepticism among engineers about whether it's a feasible approach >> yeah, there is skepticism i totally agree. and you're right that we drive with our eyes, and thank that's actually one of the cases for cameras, right we already allow humans to get on the road. and i think when you think about the data advantage think about the experience the car is getting to train its system. you can think of this as a much more experienced computer because it's seen a lot more than its competitor systems have of course this is a differentiation between tesla and peers. i also think it's possible peers using lidar will have a hard time scaling their systems past

the small areas they've launched today, past a particular city, right? it took wemo over a year to get out of phoenix and move into san francisco, so i think that's the advantage tesla has. they see roads from all over the u.s., not just one specific city you're driving your fleet of prototype vehicles around. >> tasha, real quick, twitter. do you want him to buy it or not? >> yeah, i think there's a question as to whether or not it'll happen of course the idea of free speech while great might conflict with his current business model, so i think that's an important thing to consider so ultimately i think we'll see what happens there >> but good or bad for tesla and by the way, for spacex for the other business >> i mean, hey, look, people have been saying for years, hey, he's stretched too thin. he has so many businesses, neuro link i think ultimately we've heard elon musk he sleeps on the

factory floor. tesla is cleary a very important company to him i think that he's -- it's hard to bet against this guy. he's kind of accomplished the impossible, and he's been able to spread himself across all these businesses so far. and really the proof is in the results, right we just saw them beat on earnings, so i think that's what to look out for, actually execution. >> appreciate it very, very much thanks so much all right. coming up private equity firm blackstone out with numbers. plus the latest read on jobless claims we'll bring you the numbers as soon as they cross at 8:30 markets right now are solid, advancing, big move in the nasdaq tesla related

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and it's easier than ever to get your projects done right. with angi, you can connect with and see ratings and reviews. and when you book and pay throug you're covered by our happiness check out angi.com today. angi... and done. good morning elon musk has more reasons to dance today. tesla reporting record profits to start the year, and the stock is zooming higher in the premarket. bill ackman now saying no more netflix. dumping his stake in the streaming giant. we'll tell you what he said about the investment gone bapd, and hear from the private equity

giant on deals and state of the markets. blackstone's president jon gray our special guest this hour. you've got to hear what he's talking about and looking at the final hour of "squawk box" beginning right now >> good morning and welcome to "squawk box. i'm joe kernen along with andrew ross sorkin and melissa lee. becky is off today u.s. equity futures at this hour are indicated sharply higher especially nasdaq. treasury yields under control, below 2.9. we've not just pushed through right to 3%. kind of wish those cars were ready now. >> the fully autonomous taxi

>> did you see the lines at the dispensaries am i supposed to drive around like nothing is happening -- the pot smokers the accidents they cause because they're going 20 because they're pettrified >> going slow can be just as dangerous. >> it can. are you okay >> you know me i'm not into any of this kind of stuff. >> there was a time -- just my luck, too, now it's legal. i just can't -- it makes me wonder have we thought this through? if someone is definitely just baked, can you tell? can you pull them over and test for that and say you're not going to be doing this >> it's hard to test for that, though >> i know. so have we thought this through? you sure this is okay, sorken?

did you see those lines at the dispensaries >> i don't like the secondhand smoke. i don't want to be walking down the street with my kids and have pot smoke -- >> another reason. >> i mean that's forward thinking >> prepared for all contingencies. shares of tesla surging after the company reported a record profit. automotive revenue grew 80% over last year. the company cautioned production would be constrained for the remainder of this year by shortages of computer chips and other parts but it does expect to increase deliveries musk himself saying there's a good shot in his words they hit 60%, which is greater than the 50% the company has been talking about in terms of annual increases. we'll have much more on this

quarter a little bit later this hour >> we're coming off i don't think what you can describe as anything less than a terrible day for netflix. netflix was just a dvd rental business back then and blockbuster was the big time competitor forecast now with a loss of 2 million subscribers in the second quarter, the stock slashing $50 billion off -- >> yesterday >> now down more than 62% this year and the s&p 500 of course dragging so much of the rest of the industry down with it. and mr. ackman as well >> probably 300 billion. what was it at 70? and so at 700 it must have been above 3 or 400 so losing 50 billion yesterday,

but down hundreds. meanwhile hedge fund -- the guy who runs the hedge fund, bill ackman dumping his stake in netflix. he said the loss has reduced his firm's year to date returns by 4 percentage points. key quotes from the letter he says in his words in light of recent events we've lost confidence in our ability for the company to predict future prospects with a certain degree. in january ackman disclosed his purchase of more than 3 million netflix shares which made him a top 20 holder of the stock i don't know which day he bought, but i think at the end of last year it was 602, 603 and the very first trading day it was january 3rd or something it

was 597. and that was right at the beginning. i don't know when ackman bought in january >> we were talking yesterday about the rerating of the stock. on its way, sort of in between the two categories and you have to wonder now whether growth funds that could spell more pressure and part of what we're seeing so far in the premarket. let's get to dom chu >> it has that more value tilt than some of these movers here especially when it comes to the earnings reports we're going to start with transportation stocks and union pacific in particular up 1.5% right now. the rail giant coming out with both profits and revenues that beat analyst estimates

they were driven in part because of volumes they saw, more transportation volumes and also because they got more money from the fuel surcharges they were able to pass onto their transportation customers value-ish, i guess you could call it private equity, blackstone i know you're going to be talking a lot more about this story coming up with jon gray later this hour reporting better than expected results for profits and revenues driven in large part by strength in operations tied to its credit and blackstone shares up 4% right now. and then the value side of things when it comes to energy although these days value may be something of a different way to quantify because energy has had such a massive run up. well, exxon and chevron are still driven, yes, by energy prices but this morning an interesting analyst call coming from rbc capital markets where they've

upgraded exxon mobil and then they are downgrading chevron from an outperformed to aect is a sector performed upgrade for at rbc, downgrade for chevron. those are some of the big value names to watch andrew, we'll send things back over to you. >> at the domino, thank you, sir. a lot more on tesla and its electric vehicles for this quarter. we're going to speak with the company's former president but next, dom mentioned blackstone and its premarket jump the company's president going to join us right after the break to dig through those earnings out just a short time ago and so much what he's seen in the marketplace right now. youdon't want to miss it "squawk box" coming right back after this

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that's a savings of over $500 a year. switch today. this is elodia. she's a recording artist. 1 of 10 million people that comcast has connected to affordable internet in the last 10 years. and this is emmanuel, a future recording artist, and one of the millions of students we're connecting throughout the next 10. through projectup, comcast is committing $1 billion so millions more students, past... and present, can continue to get the tools they need to build a future of unlimited possibilities. welcome back to "squawk box. take a check on the markets here this morning we're looking at a higher open across the board s&p looking to add 41 points dow looking to add 262 and the nasdaq looking to be up

181. take a look at crypto currencies, and we're seeing also higher trade there. bitcoin up by 3.2% >> let's talk what's happening in the market right now because blackstone out with first quarter results just a short time ago and the stock it is jumping. take a look at this stock this morning. it is up over 4% company reporting distributable earnings per share well above analyst estimates. the stock has far outpaced the s&p 500 over the past year for more on the new numbers and the company's deals this week to buy american campus communities for nearly $13 billion and really where we are in the market and the economy always want to talk to jon gray he's here, president and chief operating officer at blackstone. good morning to you, jon >> good morning, andrew. it's great to be here. >> congratulations this is quite something, and a quarter, by the way, where you know so many other companies have struggled tell us what's happened and then i want to get broad about where we really are and what you're

seeing >> well, we really had an extraordinary quarter. as you mentioned it was a tough backdrop but our business model is pretty simple deliver great returns for our customers and they'll allocate more capital to us we managed to deliver positive performance in virtually all of our strategies led by our real estate business. what we saw was also big in flows from our customers, almost 41% year on year and what's driving that i'd say is two things. one on the investing side we've been really focused on rising rates, rising inflation and investing in good neighborhoods that can perform through that challenging environment. and so for us logistics were strong, energy infrastructure and a bunch of travel related companies we invested in and then i would say we continue to broaden our platform.

we are benefitting from growth and retail, insurance, our institutional clients. and that broadening is making us a more resilient company and a faster growing company and so we're very pleased with the quarter. >> so, jon, what is the house view about blackstone right now where this economy is headed over the next say 12, 18 months given what i think everybody imagines is a going to be a rise in interest rates? >> so i would say the house view today economically is mixed. i would say on the ground in terms of economic growth what we're seeing are positive results. our companies are seeing very strong revenue growth. that strength is particularly highlighted in travel which i mention. we have clients in the office. we're also seeing strength in

technology companies as cyber security, cloud migration, all those big trends continue and obviously energy as well the challenges in inflation and what we're seeing there i think, unfortunately, is more persistent we're seeing it obviously in terms of shipping, transportation costs, energy costs. fortunately, we don't own a lot of industrial companies, but the one area that's impacting really all businesses are rising labor costs. and we're seeing that now not just at the c suite but all the way through entry level employees. our portfolio companies are talking about the scarcity of labor, the cost of labor and my concern is that as companies respond to that, as they raise wages, of course, they'll then start to raise prices and so the idea that this inflationary pressure will go away quickly, that seems tough to us. so the good news is strong economic growth. the challenge is inflation

>> do you think the fed lands the plane without a recession? >> that's very tough as you know when the fed starts to move at the very least you get some shocks because there are business models built on a lower rate environment so i would expect more volatility i think, you know, there is enough strength in the economy here to absorb higher rates, but the combination of the shocks from energy prices out there and the overall level of inflation puts pressure on the economy so i guess what i'd say is near-term i think there's enough strength to power through. as you look out a year or two, that becomes more of a question mark >> over the past couple of years you've gotten more invested in tech and the like. we've seen in the public markets obviously tech valuations come down markedly. it's unclear i think in the private space especially in venture capital land whether a lot of funds have actually

marked there portfolios properly given where we are in the valuation spectrum do you think they have >> well, it's hard to speak to other firms and what they've done we have a really rigorous process here at black. stone. and i would say for us as we've invested in tech because we started as a cash flow oriented private equity firm, we really invested in growth companies that had positive cash flows for the most part, that were less speculative, and those are the companies i think will hold up you're seeing that in the market the differentiation between tech companies that are fast growing but positive in terms of cash flow and more speculative. and so i do think there will be a bit of a rerating downward for some of those companies, and that will put pressure on march, but it make take a little more time >> would you ever have interest in buying twitter with mr. musk or by yourself >> you know what

i don't comment on individual transactions, but i don't think that's likely for us >> by the way, similarly, another big piece of news that i think everybody's trying to make sense of in the media world, and you know how the number of investments in media with stags and the like you bought reiese witherspoon's business what do you think of netflix and if you think if there's a rerating in some of these platforms? >> well, the shift to streaming i think will toip. i think about my own children. i don't think they're going to buy the kind of big cable packages all of us have been used to, and i think streaming will be am the mode where most consumers will consume media, but there's a finite population in the world there's only so many streaming firms people are willing to sign-up for. it is a more competitive field and moving into a more mature state. i think the reality on content,

though, is the importance of great content has not gone down. these companies need great content to attract eyeballs certainly versus my childhood when you could watch three or four stations. there's now unlimited really universe of shelf space to provide content. we invested with reese who's an incredible entrepreneur and talent we invested in a company called moon bog that produces the cocomelon franchise. so we still like the content sector, but there are forces of gravity, and in streaming now as business matures we're seeing that >> hey, jon, i know you said you can't discuss specific deals, but you seem to have given the twitter-musk thing some thought because you had an answer ready for andrew you said you don't think there's anything happening anytime soon is there anything that makes you

say that >> my comment was about blackstone specifically. so i don't have any view as to the likelihood of the transaction. >> okay. hey, jon, the other expertise you have is in particular in real estate both on the residential side and commercial side and you just did this campus deal what do you think is going on? and investors is a very broad question, but right now i think there's a real focus or question mark about the future of cities. you're wearing your tie, but how that all plays out and people spending more time enoffice, what's your best guess if there's something transformational happening here, or would you say it's a blip >> i think a bit of both i think workers in many companies will have more

flexibility therefore they can maybe live a little further away, in some cases remote locations. that probably will be an increasing reality on the other hand, i think these great cities will recover. and for investors willing to be a bit contrarian, i think there's opportunity. but i do think older office buildings face some real challenges, you know, from an ob obsess lessance standpoint and also the fact they've got long-term leases and their rental demand isn't as great i think residential housing in cities is probably a better place. i also think hotels in these cities want to come back because people want to travel and get together i think it's definitely too early to call the end of these great cities i think they're going to have a recovery, but on the other hand we've seen some trends that i think will stick

so it's i would say a bit of both >> okay. well, jon, i think we're trending on the right direction. i hope to see you here and do it in person soon great to see-on on what was truly a great quarter. coming up we're going to dig further into tesla's blockbuster earnings report and speak with the former tesla president of sales on the company's revenue and future of ev "squawk box" coming right back

hedge fund caught on the wrong side of last year emphasis game stop short squeeze considered something of a do over melvin capital has been speaking with investors about a plan under which the firm would return their capital while giving them the right to reinvest that money in what would be a new fund. stop laughing for a moment you can laugh in a moment. when the new fund debuts this summer people could put their money back in what platkin wouldn't have to get people back even on investment melvin was down 39 purse last year, down at least 21% this year people think he's committed to a return focus on shorting stocks. >> i have seen this -- >> you've seen the movie 100

times. >> on american greed it usually involves moving to another city and changing your name but in this case -- >> you just change the variation -- >> a different fund. so he's never -- when you lose 60% you need like 150 to -- >> that's why you can never get back, that's why he's shutting that thing down and starting over >> to be fair shorting stocks now is a much better -- >> how do you know >> because the fed is pulling liquidity out of the markets >> that's not going to fly >> it is going to fly because it happens again and again. >> you know who is so happy about this just the gamestop ape out there they're just loving this they stuck it to the man >> but in this case, did they?

>> they did stick it to the man. in a crazy way call me in a couple years because this may be -- >> everything in cycles. coming up the latest read on jobless claims and bring you the breaking data. "squawk box" will be right back. flexshares etfs are built with advanced modeling. to fill portfolio gaps and target specific goals. strengthening client confidence in you. before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully.

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welcome back to "squawk box" on cnbc. we're just seconds away from new jobless claims data, and ahead of that we're looking at a higher open across the board with the dow looking to add 257 points rick, the numbers, please. >> well, melissa lee, a couple of seconds of course we'd be looking at initial continuing claims and i do want to remind people that the initial claims are getting very close to the all-time lows. here we go, 184,000 on initial claims that is a few thousand higher than expected. sequentially following 185,000, but that probably could still see revisions. so 184,000 takes us back to the late '60s. and something interesting here 1968 we had 162,000. that's the all-time low. we're getting pretty darn close. continuing claims always a week

in arrears 117,000, another post-covid low. this takes us back to 1970 under 1.3 mill yp or so, you get down in the 1969 areas. and the all-time low from 1969 actually on continuing claims is a whisker under 1 million. so these are stellar numbers now on philly fed which is an april read a bit on the light side, 17.6 so that is on the weak side. not as weak as it was in february when it was 16. the high-water mark of the year last month at 27.4 of course we see after that 20-year bond aupgds, stellar 20-year bond option yesterday we're hovering around 310 in a 20 year. it underscores there's a lot of issues going on with regard to selling of treasuries but

there's also a case to be made of buying. >> rick, stick around. we want to bring in steve liesman at this point. what do you make of this all >> philly fed is okay. definitely a miss. look, the jobless claims are the high frequency data we follow to see if there's any weakness in the economy. we're not seeing it yet. yesterday the book was really interesting. it tells us in general companies are passing along these price hikes to consumers and having success doing it there were a few mentions kind of worth noting that consumers in some cases seem to be bombing at some of these high prices definitely on the lower income scale, was noted as well as small businesses that's something worth watching. at the same time robert hum, our

ace earnings what do you want to call it maybe guru, is noting this really weird phenomena going on out there which is that companies are reporting that consumers are trading up i terms of quality of goods and buying more expensive things p & g was out there, several other people yelp showed there were more searches for higher dollar restaurants. i have a lot of sort of thoughts as to why this might be going on it may be that prices aren't rising so much at the higher end as they are at the middle and lower end of the scale, and many people are finding more value. it's like i don't mean to make this trivial, but it's like the popcorn in the theater that the large bucket is only a dollar more than the medium if inmedium goes up and the higher doesn't maybe people are trading up

bottom line so far consumers seem to have the money to both pay the inflation and keep growing. we're looking at 3% so far and change for the second quarter. we've not seen despite the -- the tightening that's out there in the economy, we've not seen much of a drag in terms of economic activity. >> the trading updata point, steve, are interesting to me and i'm wondering how recent that survey was done. >> did you see that report from robert >> yeah. and maybe in terms of restaurants it's just that it's a higher end consumer and they can afford it because inflation hits lower end consumers much more >> absolutely it does. one interesting fact about that which was in a report that i read last week was if you are a low income consumer you may already be buying, for example, the store brand or the lower cost brand, which means you have no place to trade down to, so

you're 100% right it does affect lower income people more why people are trading up, you know, wages are up and for some people wages are keeping pace with inflation. the total wage bill, by the way, or wage payments to workers is keeping pace higher than inflation though not on an individual basis we have put 1.7 million more people to work so far this year, so that part is going okay the inflation part not going okay and just by way of thinking about the fed here, it was mary daly previously one of the most dovish people on the federal reserve who said yesterday the case rate, 50 basis rate hike at the upcoming may meeting is complete and solid with quotes around both those words. >> i think that's already in the market, right, rick? but i think the notion is if the fed's purpose in raising rates is throw some grit into the wheels of the economy, and we

don't know how that's going to shakeout of the labor force. hiring and wage increases won't slow as well >> yeah, i don't know. the demand for labor certainly outpaces those that are willing to join the labor force. i really don't think it's a problem. i think if you move from things like food and restaurant into other areas that tesla's earnings pretty much showcase exactly the dynamic we're talking about. when you look at their margins and how they've widened out at a time of inflation, the fact they've been able to not only pass it on but do a little bit more than that really speaks volumes. so the whole dynamic we observed like paying cash for houses. i know interest rates are going up, but i know qualifying becomes a bigger issue but let's not forget how much cash buying is going on that surcomvents a lot of that ire.

i think there's big differentation going on here and how it's affected by inflation >> the message from tesla, proctor & gamble, the airlines, for instance tells us pricing pressures aren't affecting consumer behavior at least of as yet. let's get back to where we were talking about tesla's electric quarter calling it an electric quarter because that's what it really is phil lebeau joins us right now as we're looking at that stock good morning >> hey, andrew, it's up about 8% premarket, and here's the reason why. look at the numbers the company reported yesterday way better than expected in terms of earnings per share. a billion dollars better than expected in terms of revenue the street was expecting them at 28.9%, a little bit of a contraction from the fourth quarter. oh, no, they came in at 30% straight on. by the way, that's ex-government

emissions credits that the company sells. a lot of people expected him to address -- at least have a question put to him last night about his interest in twitter, what it might mean twitter never came up once he did say robo taxi production, he expects it to begin in 2024 remember he's been talking about robo taxis going all the way back to 2018 as you take a look at their annual deliveries elon musk does believe they have a chance of increasing their deliveries by 60% this year. that would put them just a shade under 1.5 million vehicles talking about the importance of increasing and getting production to china back up to speed. >> they really had significant challenges through the covid shutdowns, and nonetheless able to output a tremendous number of high quality vehicles, and we're already back up and running.

>> by the way, china production basically the same in the first quarter as it was in the fourth quarter. remember they shutdown at the end of march and basically been shutdown for the first week of april, slowly ramping up elon says when you look at the second, third and fourth quarter second quarter is probably go going to be in line but they expect a big acceleration in the third and fourth quarters. watch tesla stock today, joe it's already up 8%, and usually it doesn't pop this much after earnings but these numbers are far better than anyone was expecting. >> joining us now john mcneil, ceo and a former tesla president. thanks for joining us, and you like all of us probably thought, wow, that's pretty amazing to

su su surcomnavigate the supply chain issues >> the supply chain issues they're very adept at looking around corners they've got incredibly bright people on their supply chain but the chip shortage that should slow down most auto manufacturers didn't slow them down >> the sales number just nominally and the growth was, you know, almost out of this world. almost like a spacex double the legacy producers. >> you're absolutely right during my years at tesla i can't tell you how hard it is to double a business at this scale in hardware, and tesla's been doing this for years, and now they're at this scale still

growing at 87% and as you said their profit tripled to $1.1 billion, but their gross profit margin at 30% "x" credits is double gm and ford's they're not only executing at the top line but executing at the bottom line as well which is really impressive. >> are you you going to see shanghai become more of a headwind than it was >> i think in the very short-term you're going to see sha shanghai hit the second quarter. cars are less costly to produce in shanghai, so it will be a short-term issue, but i think for long-term investors it's just a blip. >> to talk about robo taxis, it's an important future product. but do you think he's being

overly optimistic about when it can happen or this time we have a better idea when he could actually deliver something like that? >> i've seen this movie up close during the time i left and the robo taxi challenge is a very hard challenge. however, what a lot of people don't understand is a robo taxi is worth about $250,000 worth of profit so if they're successful, that completely changes the car business from a one-time sale where you're making 8 to $10,000 a prufer car and producing a car that can produce a profit. that's the goal. what a lot of peopledon't understand is elon when he makes these statements in public is largely intending to motivate his entire team and point them at the next hill or horizon. i think again for long-term

investors that's not where i'd place the value of this company. we're in the very early era of electric vehicles. exrobo taxis, exrobots, it's a very acontractive business >> bears on tesla will always say now is the time when a lot of legacy makers, a lot of auto evs are going to hit the market, but what they don't recognize at this point is some of the manufacturing capabilities you mentioned being able to rewrite the software on chips and also have the 86-80 in-house made shells. and they wrote how they simplified the process, fewer parts in the cars, cast larger pieces which makes it more cost-effectively, et cetera. do you think the legacy auto makers have going to be able to catch up on any of those fronts?

>> michelle, i thinkyou put your finger on a very important point. the battery production is going to be a constraint for a lot of ev manufacturers tesla has that in-house where their competition doesn't. so they have an advantage there. and then as you said about a third to a half of a footprint of an ev factory robots that are welding the chassis or body together tesla has figured out a way to smelt aluminum and use all the smelt in the plant, and then pour essentially into a mold the chassis of the car, the body of the car. the that's a huge manufacturing advantage and cuts their floor space by about a third and most importantly cuts out thousands of expensive robots in the process. they've got a manufacturing process advantage but i think most importantly they've got a battery cell advantage really

going to play to their favor >> does elon, does he sleep at your -- i'm not sure where he is but maybe he's on the factory floor, but you've seen him up close and personal i'm not twitter -- what do you think he's thinking in terms of why and it's not finance or -- do you actually put $43 billion of your own money up just for everybody to have a free speech town hall platform >> i think two reasons one is a business reason and that is twitter is essentially a marketing platform that he uses at very high -- at very high efficacy tesla's marketing budget is exactly zero while gm spends $2 billion. elon could get product messaging out to tens of millions of followers instantly and for me

in term of a being a distraction i can tell you during my years with elon he's a very demanding but also very effective manager and leader and you see that in the way they're executing. he's had two jobs for the last ten plus years, and tesla stock is up 21,000%. you can't argue with the result. >> hey, jon, quick technology question we were talking about lidar before those autonomous taxies he's building right now or says he'll build before 2024. he's planning i believe still on just using cameras there's a lot of steptical engineer out there that's the appropriate approach we had a viewer send us a picture of a tesla with lidar on top of it, looked like a test

vehicle in boston. do you think ultimately this can be done simp lay with cameras or do you think perhaps if this picture is indicating anything maybe he'll ultimately add lidar? >> andrew, i think the technology around lidar when tesla started working on autonomy in 2014, 2015, was really brittle they broke all the time and lidar was expensive. that may be tempting for the tesla engineers to deploy. however, there's the old story about cortez burning the ships so his soldiers didn't have any other choice but to fight. elon has sort of done the same thing. he's burned the ships on lidar, and so we have to make cameras work and his mantra was the human being has two eyes, we can make a car drive. this car has eight eyes and we should be able to make this work it's a huge cost advantage if

they can make it work, however i wouldn't 100% rule out lidar in the future given the decrease in cost and increase in liability >> are you an elon whisperer >> i don't know about my interpretive abilities, joe, but give me a call and i'll try to help >> coming up jim cramer's first take on the markets thrpg. "squawk box" will be right back. with the right balance of risk and reward. so you can enjoy more of...this. this is the planning effect. ♪ ♪ so you can enjoy more of...this. connecting to opportunity is just part of the hustle. ♪ ♪ opportunity is using data to create a competitive advantage. ♪ ♪ it's raising capital that helps companies change the world.

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bill ackman speaking to scott moments ago about getting out of netflix scott joining us on the phone. what changed since january, you think, scott i guess i don't know what changed? i haven't found anything on netflix in awhile that was worried about the content and the quality of some of the offerings. >> i think, joe, what changed is the trajectory of the business it was clear to me in listening to bill in the conversation that we have, he was as surprised by the results as anybody else. so that gives you an idea of where his thinking was he said this might work with someone with a portfolio with smaller positions.

when you have eight or nine investments that are large, it's hard to have a dispersion of outcomes can be so wide. i think that's sort of reflects the uncertainty of netflix's business moving forward. i don't think anybody knows the appropriate evaluation of netflix today and where the stock should be priced or business is going. i think everybody was shocked by the results, including him, he decided it was better after three months even after a loss, which i said, it was better to get out now and, you know, as i tweeted at the end of the thread, ting reflects, in some respects, this new, if you will bill ackman is able to make the decisions when the guy in the past probably would have doubled down and, frankly, yesterday when i saw the huge slide i was thinking to myself i wonder if

he's buying more the old bill would have bought more and told you all the reasons why the market was getting it wrong and netflix was going to go up in fact, that's not the case. >> a lot of lessons can be learned, scott number one, when stocks become totally overloved where you can't even find them a market perform rating from the analysts community or just almost becomes dogma of the future for the company is great that's one sign to worry about number two, if $700 stock comes down to $550, it doesn't mean it can't go to $200 it seems cheaper but that doesn't necessarily mean the evaluations is suddenly better i think that's the proverbial falling knife. it fell. and it's falling again today. >> i think you nailed it, joe. and i think the problem is that nobody knows what the right price is is$200 now the right price for netflix based on you know what

is really a 180 from reed hastings on the direction of the company. in terms of an ad-supported model. something they swore they wouldn't do. >> how frustrated was bill with netflix management in terms of, you know, when they disclosed, how they disclosed, and the direction they gave prior. >> i think it was more surprised and frustration, andrew. really i didn't get a sense from talking to him that he was, you know, angry with netflix management i'm sure he's frustrated who likes to lose a few hundred million dollars. nobody, obviously. i think he made it clear he has a great amount of respect for reed and the management team there. they have a track record of figuring it out. right. so it's not like this is the first time the stock declined. it might not be the worst decline in the company's history. i don't have it in front of me

in prior instances where the stock declined, they figured it out. they might figure it out this time he won't wait around to see when the timewill be. down to the new york stock exchange jim, just -- when reed hastings finally admits maybe an ad-supported might work, does it

make you go oh my god that's horrible we would have never admitted that before or say, look, he's looking at reality and that's a positive for netflix or negative because the old model is called into question. >> if he uses it tactically smart. i can see incremental $100 million in operating income. no one really cares about earnings per share they're pretty good. i think eric went here and they're insis assistance it doesn't matter whether people -- your cousin took your user name somewhere or they didn't need ads out of sync of what happened in terms of the pandemic i think they have to regroup and think about what to do as a crisis for a company

we only have 45 seconds. what did you think of at&t that was kind of, i mean, it's hard to figure out but that might be setting up for a company that is in good place. >> i've been critical about them until after the split. i've been okay about them but they did better. they had wireless. they did the wireless $691,000 versus $437,000 and that's pretty good. the stock deserves to be higher. that's right. >> all right we'll see you in, actually, in about two and a half minutes that's it for us today we have about 10 seconds to go "squawk box" today. "squawk box" today. >> ♪ ♪ >> i'm not here tomorrow n.

the world needs you back. i'm retired greg, you know this. 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] e*trade now from morgan stanley. hybrid work is here. it's there. it's everywhere. but for someone to be able to work from 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. anywhere. even here. that's because nobody... and i mean nobody... makes hybrid work, work better. 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. a. good thursday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber we'll get to tesla, airlines, and the host of others adds fed chair powell gives us one bit of fed speak this afternoon before the blackout begins vix below 20 road map begins with tesla's record quarter crushing expectations. continuing to cautious about ongoing supply chain