morning. we'll see you later. thanks it's good to be friday we're down another 100 now triple digits. i don't know are you going to have some popcorn or what did you call it? >> skinny popcorn. bethenny frankel. >> it's like air i need the movie butter popcorn. make sure you join us next week. fry-yay! "squawk on the street" is next good friday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber fed chair powell's remarks that 50 basis points are on the substantial for may. the 2-year yield at 2.8 this morning. road map begins with the fed's hawkish pivot and the investors reaction

confirming a larger than usual rate hike is on the table next month. and american express sticking with the 2022 guidance and verizon losing fewer phone subscribers than expected. and snap's, quote, "challenging quarter." the social media company missing sales of profit expectations it does forecast, as well, disappointing growth ahead and start with the markets and the fed chair's comments on rate hikes yesterday here is what he said as part of an imf panel discussion moderated bizarre are a eisen. >> look at the last tightening cycle which was a two-year string of 25-basis hikes from 2004 to 2006, inflation was a little over 3% inflation is higher now and our policy rate is still more accommodative than it was then it's appropriate, in my view, to be moving a little more quickly. i think there's something in the idea of front end loading whatever accommodation one

thinks is appropriate. it points in the direction of 50 basis points on the table. we make the decisions at the meetings and make them meeting by meeting i will say that 50 basis points will be on the table for the may meeting. >> jim went on to say that goods pricing is rolling over. they won't count on help from the supply side. >> it's not rolling over at all. he should go 75. he should get it over with like a 94 cycle and a couple of 50s. reverse it why this is a surprise to anybody is because -- i don't know what world they're surprised. the prize is he's not going to 75 inflation is out of control. everything other than i don't know used cars, which has come down carvana did a big offering today. used cars have come down. >> it's a big piece of cpi. >> right you need -- absolutely without the new chips, you're not going to have -- other than

tesla, enough cars to sustain the decline in used. there are -- we're starting to get demand destruction from things going too high. when you see double digit for proctor and kimberly this morning, you know that everyone is passing through everything. that has to stop take a look at ppg it's important with home depot. i think, david, i don't know if you painted a house. i don't know if you had a house. >> i've had a house painted. but i have not participated in said painting. >> it's really hard. >> yes. >> but it's getting too expensive. and ppg -- an interesting quarter they're talking and did a number i get that i'm going to go to home depot this weekend and home depot -- everything is getting too expensive. it's getting too expensive we're at the moment the fed does

a strategic 75 and 50/50 you'll knock it back and see we're okay i think jay has to be a little more aggressive. people are concerned that he's doing 50 they out of their minds? >> keep using the word too expensive. as if there is some price -- >> there isn't. >> there isn't so far demand has yet to be made. >> it's about to happen. >> when we get to the too expensive which you can't device necessarily. >> okay. it's so weird the proctor call which was the call of the century. it was they're putting price increases and people are trading up. >> yes. >>well, that ends. >> when? when things get to be -- >> july 17 i don't know i'm just saying we're in a very crucial moment where a lot of companies keep putting through and everyone keeps taking it there will be the moment they said the fed taking it will cause a recession. i'm not going to do my deck. it was upgraded today and a weird upgrade.

but i've got to tell you, i see we're on the cusp of exactly -- with the kpepgsz of oil service, and travel and leisure, we're on the cusp of winning this fight. >> who is we >> the u.s. government. >> u.s. government >> me and jay, because we're buddies, you have to be more aggressive you have to hit it like when you have a swimming pool, you have to shock it with chlorine he should do 75. get it over with i mean, look there's a piece today written, it was a good piece of research, are we getting closer to pricing in a recession? we're not. we're not because it's going to be 507 here and 50 there come on, jay >> o'tamera said 75 in june and july fed swaps are swapping in a fourth fed half point in september. you think it makes sense >> yes we have to stop the inflation.

we have to stop the steel and aluminium cycle. we have to stop the supply chain issues we have to slow the economy. take a look at the downgrade at union pacific. we have to make it so they can find the people they need. csx needs to find the people they need. we need people and jobs. >> lance indicated yesterday from union pacific they're succeeding in finding adequate sources of people to employ now. >> they got downgraded saying they can't do it. >> they're in a better place he claims as they were, you know -- >> yeah. i think we're -- >> that's wage inflation, isn't it >> they have a union deal, as he pointed out. said they're blocked in for that. >> you have to stop that you center to break the cycle of higher wages and higher goods. the goods cycle is nine and the wage cycle is five. >> then you have to destroy the man. you won't be able to fix the supply chain which is behind a lot of this.

>> yes, you can. you need china to stop -- you need china to take it. china has a level of that's is extraordinary. they have they would rather lock up our country than use our j&j. >> you need russia to stop the war. >> you need russia to lose the war. >> by the way, the supply chain problems were occurring prior to either one of the events. >> absolutely. i want to slow things down so that the economy can catch up. and that's what j&j -- >> so you slow demand. period. >> you don't end it. you slow it. >> have you ever been in a plane crash? >> no. thankfully. >> i was in a plane and the wheels didn't open it was negative. got hit by lightning and we were flying into newark u.s. air we couldn't get the landing gear down and, you know, you bounce and everybody's head hits. you bounce and bounce and stop right before the end of the runway and everybody cheers

you cannot believe you lived it's the greatest thing on earth. jay powell. >> we're heading for a plane crash? >> it wasn't really a crash. see. >> doesn't it sound like it was normal. >> it was interesting. no one wrote about it. i was on it. i was typing away. your typing is bothering everybody. if the plane lands, i'm going to be late. if we die, what does it matter everyone is praying and stuff. it was an interesting situation. >> what does it have to do with the fed policy >> it's called soft landing. a soft landing that goes boom, boom, boom, stops. hey, we went out and had barrels of mezcal. >> there was none then. >> but, no, i'm saying i've been in this. you can't end it by the way, the plane does go. it was really -- almost frightening. >> collateral damage on the plane? what happens to stocks >> well, didn't do it.

you know, they got hurt. but in the end, standing ovation for the pilot. that's jay all right. jay, with listen to me, you foa up slide down the things and boeing had a second system that got hit by lightning it was all dark. boeing has two planes. people forget it because it's so awful. it's a soft landing. it's not like airplane -- they picked the wrong time. >> right we've speen dramatic change. >> yeah. every day we're trying to price it in. growth has been hit badly. of. >> i'm not against her

i'm making a point based on a price. >> carl -- >> rates -- >> go up. >> okay. >> stocks? >> they -- it's 94 everyone is going to give up on stocks at a certain price and it'll be the greatest buying opportunity in years we haven't gotten to the give up everyone is saying, oh, i like this or that airlines are good. because, i mean, you can take an airline to a mexican state i would say is not necessarily one you want to go to. >> because there's no other place to go. what do they want? a board resignation? can't get into disney. they have some tax. >> you have some top 100 housing markets flirting with negative prices for the year. you have gap cutting guidance on too much inventory reports about nvidia cards on third party resellers.

prices being down 30 to 40%. it's happening. >> it's happening. gaming is slowing. someone upgraded the gaming. it's funny everything is slowing. that's what has to happen. you need everything to slow and you need people to leave the market you need people who are running the market they have to get out all the people who are holding on, like 1994 and 2000, blow them out you have people going to cds that's how you have to bond them. >> okay. >> remember boom, boom, boom, and then clap. >> three booms and a clap. >> three rate hikes and then a clap get off the plane, and you're

feeling great for a long time. >> can we go to the tequila? that part? >> yes it's going to be something to talk about i'm not kidding. you need the fed to get on the case. >> 50 is the new 25. that's what you think. >> yeah. jay let me down. [ laughter ] don't drag it out. 75, 50, 50 and then the third bounce was a little softer. and the plane stopped. >> and then we can applaud. >> that's called a soft landing. that's what we need. soft landing means it ends before the rumbling. >> understood. understood. >> okay. >> yes got it you can talk about cathie wood not being the best i know you like that i'm telling you, if i hear a bad

word about cathie wood i'm out. >> i just pointed out we'll keep an eye on it it could be making a new low that's all. >> she's the best it's ever been shut up. >> we'll get to the earnings of the morning including amex and consumer demand, snap, verizon take a look at premarket here. s&p is going to try to avoid another losing week. it's going to be tough with the futures. we'll be right back. [sound of helicopter blades] ugh... they found me. ♪ ♪ nice suits, you guys blend right in. 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]

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am exposted a quarterly beat results driven by a jump in card spend. verizon q1 in like but the for full year they see wireless service revenue growth at the low end of 910 as for axp you said it would be important q1 up 35 fx adjusted. travel up 121. >> yeah. look, these are the people who basically said, look, i don't care sell if they would read the report, you would know what is happening is millennial's and again x. they love the cards. there's been a radical move among the group of people who had never really gone an gravitated to american express to saying listen they want it. they want the platinum i thought it was a premarkble quarter. one of the best.

people are so negative they don't bother to read it boomers were the lag participated. >> yeah. restaurant is up 74% i mean, look, when you're seeing with steve is people are going places and doing things. no longer sitting home and playing video games. the intention is incredible. the number -- billings are way up it's a whole new generation that is using it and loving it. so i say, hey, listen, go ahead and be stupid and sell and i'll buy it was a remarkable quarter. >> as for verizon, almost every metric was almost exactly in line. >> yeah. i mean, it's rare to say that at&t had a better quarter. but i think at&t had a better quarter. >> it did. >> and, by the way, the stock

this year, you know -- >> no. we know about plenty of competition in wireless. that will continue, of course. we haven't heard from t-mobile as of yet. we'll see. it would be the outperformer thus far in the group. >> you know they got the low end of the range for us. >> yes. >> that's why the stock is looking like it's going to go down. >>well, wait a minute. >> yeah. pointing out. >> yeah. the obvious. >> yeah. shut up, david. >> that's my mom who likes to talk to her, as well they have a separate thing going. [ laughter ] >> she was a smoke show. >> we'll be hearing from her in

a minute he's gorgeous. >> thank you. >> unchanged >> unchanged in 25 years >> yes. >> i wish i could say the same about you. >> all right to carl. >> positive things. >> all right nice to have a couple this half hour. >> yes. >> amazon. >> yes by the way cnbc along with the rest of nbc news will celebrate the inspiring america event. we'll feature businessleaders whose companies thrive while they do good for the benefit of others inspiring america the 2022 inspiration list it includes interviews with nay then -- nathanchen

none better. none better. david we've been here together a couple of times. >> yes remember when we were told to -- >> be quiet or shut up. >> yeah. we'll get cramer's mad dash and count down to the opening bell in about 10 minutes. keep your eye on yields. but so is your sound engineer. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

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trading session. schlumberger is a name you want to focus on. >> 1983 i went to m.i.t. to interview for schlumberger to get a job. they quizzed me. he said you're too stupid. i thought it was interesting well, you're too stupid. >> yeah. i was too stupid anyway i feel like the days are back. schlumberger has the pick up they raised their dividend big they're looking for multiple years. every place in the world is starting to drill again. and i thought i was worried about this they have a russia but, you know, david, i have to tell you, you're seeing increases. you know, let's take in africa okay some of the places are drilling like crazy i wish i were there. >> right any jeenigeria. >> this is an example of what is

happening. schlumberger -- it wasn't worth it to drill in a lot of places if you thought it was going to be a consistent increase they raise the dividend. i was quite surprised. it was a statement of confidence if people want to own a stock and they're not worried about the fed, may i suggest you own schlumberger it's back. >> all right there it is. >> too stupid. how about saying i don't know if this is the right place for you. >> it happens. it happens even you an opening bell coming straight ahead. don't go anywhere. 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.

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keeping an eye on shares of twitter this morning they ended the day higher yesterday. after we got a lot of detail on how elon musk is going to finance that $54 unsolicited offer to purchase the company. we went through it a bit yesterday. take a step back and think about how far we've come in a little over a week in terms of at least

making his bid seem more serious, i guess, that's what you cehave to say. including details on financing we has 12.5 billion for margin loan and $21 billion in equity and financing. you can lump them together, essentially. they come from the same place. it's selling tesla stock or leveraging tesla stock then he's getting $13 billion, as well, in actual financing for the deal it goes back to the math that would never work for private equity there's chatter that private equity firms might want to join him as a minority partner putting up some percentage overall to take part what might be a transformation of twitter as for twitter's board, well, it probably already has a more valuable company on its hands. it continues to be a belief, i think, they're not going to say yes to 54.20 we don't know. we're waiting. we would expect to hear

something. you also point out mentioning and requiring -- and subject to that as unlikely as it is, they can get the deal done quickly in terms of reaching and signing a deal there's the language from the 13d. it took me awhile yesterday to note was different than previously where they said no longer subject to business due diligence. they floated the idea of a tender offer we've tried to point out you can't close said tender but put pressure on the board. you have a tender out there. let's say a large percentage of shareholders choose to tender into it. you can't actually close it because of the poison felt but that is sending a signal to the board that says most of your shareholder support has been at thisprice.

[ opening bell ] [ cheers and applause ] >> that's the problem. >> they're advised by goldman. >> yeah. they have to get it together and start talking. >> but you're doing it

you're talking about people who are so overmatched by this man. >> who isn't >> that's the point. my offer stays at this price until next friday. then it goes down to 45. it's an exploding offer the way we had it with goldman sachs you have 45. and then 46. he's going to do that. he's going to give an exploding offer. that would be great. >> i know who he is? >> yeah. a lot of our viewers may not. >> no. >> okay. we'll watch if it gets political and it has been political in some ways. it's water technologies celebrating earth day at the

nasdaq frontier airlines celebrating earth day. we've been watching the airline stocks jetblue and hawaii cut by deutsche on near term challenges. >> yeah. >> amid the backdrop of travel. >> i think the united story is a great story. phil lebeau, do they asked phil what to do i think they did i'm not kidding. the new guy at american was like, phil, tell me what to say. [ laughter ] united airlines is doing so well american is doing incredibly well they said there's structural issues for jetblue you don't need them. you don't need them. go buy united. buy delta. >> to your earlier point about inflation, labor costs are troubling. that's the problem at hca. lowering the guide er visits up 14. >> it's hard to train people remember when the railroads fired, fired, fired.

now they have to find people to load a coal bin. >> right. >> we lost the ability to train people. >> in cleveland, dave, they'll build in cleveland they'll build the $20 billion worth. because they have a great work force and they have jay powell. >> you're all about ohio this week. >> i am. >> i'm going to the cleveland game tomorrow. >> right cleveland versus the -- >> yankee -- the guardians. >> mets are 10-4 i want to let you know 10-4 remember this moment. >> no kidding around, man, that pat gelsinger plan, sometimes i'm critical of pat. >> what did you make the piece on nvidia saying it could be

text next casualty as we talked about signs of rising inventory, the price of gaming cards coming in. >> a couple of years there was etherium overload. they had far more chips than the channel. the stock had a tremendous reset. we cut our position at nvidia for a travel trust it's blocked in. i don't want to get back in it yet. and so much more than a situation now. it's an industrial play. it's a play on high performance. but, of course, when you have a stock that is high in value, everything has to be perfect the stock will be down and selling everything selling everything everything. >> it's interesting they're not selling snap that stock is up. >> it was very good. >> that is up. maybe a bit of a surprise. we're talk abouting a stock that is still down and came into the session down 49%.

voe voeg, gq, nike has a campaign to reach the 13 to 17-year-olds it's an extraordinarily good quarter. and evan spiegel is so grown up now. i mean, he's like -- like regular call think talked about a big pause in advertising right after ukraine began. >> yeah. actually ukraine hsh directly. i will say i thought that quarter was spectacular. it doesn't matter. >> what about the impact from apple's changes in privacy and the ability to track -- >> not as bad. >> it wasn't as bad for them last quarter. >> no. they seemed to talk about it this quarter. >> they're trying to do things that are -- they are ar. >> yeah. >> augmented reality. >> yeah. it's so good

their lens programs are so good. they're pivoting radically and i just thought it was a very exciting call. it's like so many companies in this market, it wasn't worth what it's telling me haven't we noticed that meta goes down every day? >> i did not today. it's up. for the year down 45 along with faang. netflix down. >> i don't like faang. >> microsoft down 16. >> i don't like faang. >> i like lulu. >> netflix will probably be still cheap. it will reverberate for a long period of time speaking about a broken stock. it's up today. for how long >> it's 9:36. >> it was followed by cnn plus yesterday and adding to concerns about subscriptions in streaming, right >> right there's an area in the economy

there's employment there's people -- netflix spending at least as much as $20 billion on entertainment obviously cnn plus was going to spend as much as a half billion. i said many times there was expectations when zaslav took control of the company it was not going to be something that lived for long. i think there was a lack of a belief in the ability for the thing to actually go on a real subscribers. there's that question for services like cnn plus the numbers are so anemic, no offense. how can you not but sit there and go why are we doing this they're not. >> the heyday is over. that stuff is over. >> that stock has been under pressure not because of cnn plus but, of course, what we saw with netflix earlier in the week and the profitability overall and the direct to consumermodel.

direct to consumer is going to be expensive and long-term rates return perhaps not quite the same. >> no. kimberly clark. >> yeah. >> pricing certain things are working they have name brand products. people are premiumizing. >> right. >> they're not premiumizing anything plus when it comes to -- i was watching last night something called tokyo nivice i was talking into my thing. >> how was "tokyo vice". >> i don't know.

>> that's kind of the thing. people are talking about that shift. is the buck shot strategy of content working against them >> i think it absolutely is. >> you mentioned you like lululemon. gap we mentioned briefly they cut the guide old navy nancy green is leaving too many promotions and too much competition. it's gone from 35 to 11 in a year. >> and the bad weather it's too cool. the spring didn't go right i got to tell you, it was a terrible old navy did pretty good i thought that old navy was doing well but remember they brought all the stuff from air freight and they didn't sell it. they have some pictures of inventory and you can't -- there's no place and we used to have no inventory a year ago now we have too much

that's bad management now. >> it's the exact opposite of calvin mcdonald. >> yeah. the ceo of lululemon. >> yeah. we talked to him yesterday. >> yeah. you were here. >> i was i listened to him yesterday. i got two minutes. kohls. i wanted to talk about that, as well. >> go ahead. >> and meeting is may 11th remember you know this guy. >> yeah. >> coming up with the 10 directors. even though had he presence on the board. they continue to fight strongly against that and there does appear to be a real process underway. certainly they said that yesterday. they submitted their deck to iss. of course, which will be making its judgment about whether, if any, the directors being

proposed by mr. does kin should improved by shareholders they said the board continues to work with goldman sachs. they said goldman is engaged with 25 plus and they have held meetings with kohls management they got some support, as well there you go yep. showing you that now we'll move on. earlier this week, we find strong evidence that the incumbent board is committed to choosing the path it believes has the highest likely hood of shareholder value creation further more, we're confident the board is employing an independent rigorous process. >> of course very serious. i want to throw one other thing out, there's plenty of potential bidders here there's plenty reported on it. whether it's sycamore, whether it's hudson bay. simon properties and brookefield

together they took jk penny out of bankruptcy. >> yeah. si put a call in to david simon. >> he doesn't return calls now. >> the key to that that no one is talking about the key to kohls is amazon an amazing tie. >> they're not going to complete the process prior to the annual meeting. they'll there to vote on the directors prior to knowing where things stand. >> i have a nice one. >> i'll be out of the country. >> i guess that takes care of that. >> guys, we're back to 43.62 lowest level for the s&p since the middle of march. we're actually now below the -- 50% retracement of the february low to the march high. we'll watch that technically take a look at bonds, as well. big culprit yields up across the board. two years gone from 21 basis

points last september to 276 back in a minute (fisher investments) in this market, you'll find fisher investments is different than other money managers. (other money manager) different how? aren't we all just looking for the hottest stocks? (fisher investments) nope. we use diversified strategies to position our client's portfolios for their long-term goals. (other money manager) but you still sell investments that generate high commissions for you, right? (fisher investments) no, we don't sell commission products. we're a fiduciary, obligated to act in our client's best interest. (other money manager) so when do you make more money, only when your clients make more money? (fisher investments) yep. we do better when our clients do better. at fisher investments, we're clearly different. [sound of helicopter blades] ugh... they found me. ♪ ♪ nice suits, you guys blend right in. 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.

welcome back to "squawk on the street." rick santelli here with the last set of breaking news on this wild week our april preliminary read on s&p global pmis on a manufacturing side, zoom, zoom, zoom 59.7 much better than expected. that's the best read since september. remember these are preliminary these will change in a couple of weeks. but on the services side, a completely different picture expecting 58 and end up with only 54.7. that's the second weakest of the year outside of january when it was 51.2 finally, the composite read expected to also be around 58 is a miss, as well. at 55.1. essentially following our final read on last month at 57.7 that equals our january read

so i guess the big story here is manufacturing seems to be doing a bit better we know about supply chain woes. it seems those service side the biggest slop of the economy dragging their feet a built. don't change the channel "squawk on the street" will return in two minutes. you can watch movi es through your phone? and y'all got electric cars? yeah. the future is crunk! (laughs) anything else you wanna know? is the hype too much? am i ready? i can't tell you everything. but if you want to make history, you gotta call your own shots. we going to the league!

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shares of albertson. the company in late february said it was exploring strategic alternatives i noted because the stock is down there was a 50 million a 15 mil that jp morgan traded last night. to thursday's close. what is interesting here, it was off a convert, there is a lot of convertible shares out there, or shares that could be converted about 101 million shares total i think. we don't know who it was at this point. we may get a final that clarifies that but the point is that anyone owns that, knows the company quite well and doesn't think they will get a premium based on some sort of takeover. a lot of doubt that there is ever a take over for albertson's any time soon at the end of this so-called process and that's adding to that. >> that is very interesting

they were a great performer, but i didn't get it. >> we didn't get it at the time it was announced. >> it is curious. >> interesting >> meantime, let's get to robert frank, florida lawmakers passing this bill to dissolve disney self-governing status. things which changed when it comes to the gop, robert joins us. >> the house yesterday passing that bill. the governor desantis expected to sign it in the coming days thax would remove disney's self-governing district. despite a 50-year partnership between florida republicans and disney the political contributions in totaling $50 million between 1996 and 2021 and two-thirds going to republicans two to one from republicans to democrats. disney corporate pac gave $300,000 to republican legislatures who supported this bill including more than

$100,000 to the friends of ron desantis pack. a team of 38 lobbyists in tallahassee, state capital, more than any other company over the florida chamber of commerce and many call it a front man for mickey mois. on issues, disney has helped to defeat kroess and gambling and improved state laws on sick leave and employee gun possession and the carve out state law. it received $570 million in tax breaks to move the 2,000 employees from california but now the governor has made disney his foil in an email to donors he said he was ending disney's sweetheart deal preserved for decades by the power. and if you told my a year ago that desantis would go after

disney, i would say you're crazy. but this is the new reality. this is a new sort of world order for the republican party and business as we talk about the culture wars >> yeah, it is something of course the disney ceo bob chapek is caught between, as you say, that side and his own employees. who want a very different sponsor demand a different response when it came to the actual beginning of this whole em brogue leo in terms of teaching in the school, lgbtq. >> and they're crushing. >> and a lot of people are unaware of the special status until this came into the for over the last couple of weeks. it is not significant. and you detailed that for the company from the profitability or avoidance of certain taxes and the like

>> why, carl hiason called it a tax district but the point was not to avoid or limit taxes but they do get tax benefits, this was created when roy disney saw the swamp in the floridas in the 1960s and if we want to build what we want, we want full control. so the benefit is full control so the so much taxes the tax eck wig-- equation and getting that billion dollars in bond debt, that is a big unanswered question because there is so many complicated things that are tied to this district that we don't know what will happen when you tear it all up. >> some chatter about legal challenges as well but a lot of discussion that maybe that doesn't get you very far. we'll watch it, robert. >> there are stakeholders who support gay rights and i think bob chapek is doing a very gutsy

thing. >> really, i mean, lake buena vista is not anaheim. >> and one of the key reasons when disney was working with walt, i don't want to recreate what we had trouble with in anaheim. >> and bob chapek is taking a brave stand. like the stand that marc benioff took. >> and with all of the different constituents as a ceo and the fact that you're going to antagonize somebody. >> and he's chosen to -- not to antagonize his workers which i think is terrific. >> robert, thanks. >> great story carvana. this is a used car company, they did a big secondary last night $80. if you're in it, you're doing well the garcia family bought one-third of it. he's the ceo they needed the capital and they got the capital so they live to play again >> certainly auto inventories

aren't showing any signs of improving. >> no. and look all of the railroads have said there is still not enough inventory watch ford with the electric f-150. i think they have a couple thousand of them i the maverick it is pretty good. it's a hybrid. gets 42 miles from the gallon. my wife took it from me. i haven't been able to use it. >> to see how many they could make. >> i have area 51 paint. that is the color. area 51. >> what color is that? >> it is very mysterious. >> tonight >> i'm going out and make some big predictions on next week which is the most important week in earnings. next week is big and i'm talking the possibility of a bottom baseon the worst sentiment i have seen in ages led by the nasdaq, maybe not be real but i have to tell you that the sentiment is so horrible that i have even people who hate

me on twitter are getting bored hating me. can you imagine? >> i think it is b of a that said i'm bearish and i'm still miserable. >> i know. yogi and booboo joining me gentle ben, we're all coming in. i have never seen -- it is not since '94 or 2007 and 2008, people have given up good see you later. >> we'll see >> this is when the people who came in who make fun of me, you know what, enjoy it, partner enjoy. enjoy. >> jim, we'll see you tonight. "mad money" at 6:00 p.m. eastern time >> we below 4360 as the s&p is still on track for the first losing april in about a decade don't go away.

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the bad guys is the winner of the truly moving m picture award.k, oh, stop! you making me blush. it's an action packed animated adventure. show the world that you're more than just a scary stereotype. everyone will love. is this wagging? - good right? good friday morning. welcome to another hour of squawk on the street got near 1% declined on the dow and s&p after yesterday's down side reversal as some of the corporate earnings today fail to inspire and of course on the

heels of a fed that is getting more aggressive, morgan. >> and that that is right. we're 30 minutes into the trading session. all earnings related starting with american express, reporting better than expect profit and revenue for the first quarter. results helped by increased spending by millennials spending on travel and entertainment especially strong. still shares are down about 1% plus another dow comment, verizon, those shares are sliding. results in line with estimates but the telecom seeing the wireless service revenue growth at the lower end of prior guidance and those are down 4.5% to 5%. and kimberly clark getting a boost. the consumer products scompany said it was raising the full year sales forecast. those shares are up 8.5% david. >> thanks, morgan. well it is a highly eventful week for the fed speak and

pricing in a more hawkish outlook when it comes to rate hikes. steve liesman joins us and he will tell you, you're going to tell us where it is all going to be going exactly what going to happen >> exactly, david. so take out your pencil and i'll be telling you precisely the outlook here here is what happened. markets have had enough of the fed constantly upping the game on rate hikes and decided to begin pricing the outlook for the most hawkish possibility, leaving the question as to whether they remain behind rhetoric or caught up or still more to go lou crandall telling me this every chapter in the communications narrative has been more aggressive than the previous one we're in a world of permanent policy pivot here is the fed speak this week. it began with jim bullard, i asked him, you could do more than 50. and he said 75 is possible not a base case. along comes san francisco fed

president mary daly yesterday saying they're going to deliberate whether to 25, 50 or 75 basis point hikes not ruling out 75. then they get powell and daly and evans saying rates likely need to rise above neutral that is 2.5% this year and the result, the market this week begins to take seriously even the outlying possibility of a 75 basis point hike. the december fed funds contract, that is one way to follow all of this rise bee saad the two nif year note to trade now at 274 adding two more quarter point hikes for the year inside of the trading when they view the imagine, there is probability built in for a 75 basis point hike in june but some think that powell has let it grow out of control a they write this episode exposed the problem arising from the fed's leadership fail aur to

put por of a framework and structure around the larger units of hiking. and he's calling to coral the framework and offer it at the may press conference and i told you where i thought this was going i think the market misunderstanding the chance as a 75 as i've heard it said, i think it is likely fed chair powell would see how a couple of 50 basis point hikes in the market and whether inflation tarts to come down. only in the late summer or early fall, if inflation is not behaving, might the fed employ a 75 basis point hike. >> we will see, steve. b of a, 75 is the new 25 steve liesman, thanks. these rising rates continue on pace. joining us today jason helpstein and steven cahill. good to see you, happy friday. jason, we're going to talk some individual names like snap but are rates once again rising in your universe of metrics that

will drive your coverage >> yeah. i mean snap is interesting because it is only trading at a slight premium to the peers yet it is probably the fastest growing digital media company right now. and actually has potential to meaningfully get bigger if they could execute on their initiatives and fend off tiktok. >> but my question was we were just talking about macro and the fed and rates. to what degree is that overpowered micro corporate fundamentals. >> i think there is definitely concern on the fundamentals, particularly starting in europe and do we get spillover here so i think a lot of the fed has been priced into a lot of the tech names and really it is the update from the companies and how weak the outlook is, that is driving the stock. so on snap, i told you last night that business rebounded after the ukraine war, but they

were still taking a conservative outlook because of the message from advertisers. >> and steve, i'll put the same question to you, i realize it is an incredible week, just in terms of the moves that we've seen around the streamers starting with netflix and then going through to the other media names that you do cover. how much are rising rates and the macro environment and inflationary pressury that were raised around the netflix results are factoring here. >> we certainly see it showing up in the way different stocks react to these catalyst. netflix is a good example of a growth stock that i cover. there is a lot more story and a of long-term potential and when that long-term is suddenly seems to be at risk in a rising rate retirement, where risk is suddenly a lot more expensive, you see the reaction like we saw earlier this week. which is violent we cover some stocks that are also much more in the value camp they have a lot of free cash flow they don't have that sort of long-term narrative to them.

and those are the stocks that are certainly working a lot better year-to-date. these are stocks like fox or some of the tv broadcasters that we cover because there is just a lot less to change in the story so it is more about the earnings. >> so then would you be telling investors to be steering clear of some of the streamers and focusing more on the value plays? >> yeah, we would. we published a note on this last month actually saying that exactly. that technically in this rising rate environment, we feel a lot more comfortable in well understood businesses where the business itself isn't changing we also think that inflation is going to be good for a lot of advertising companies in the advertising market we saw that in the name like omni com this week so yes, we're taking a little more of a value centric approach here. >> jason to bring it back to snap, given the fact that it is trading higher this morning and bucking the broader market trend. despite results that weren't that great, i realize the daily

average users got a lot of attention here, i mean tiktok seems to be the boogeyman. it came up around netflix earlier in the week and we've seen it come up over and over again where meta is concerned. is snap able to counter tiktok in a way that some of the other platforms aren't >> it is still early and if you look at some of the estimates in the public domain for tiktok, i mean, people are forecasting that they're going to have a business that could be as big as twice as big as snapchat this year potentially outside of china so you can't kind of -- you can't dismiss tiktok as growing incredibly fast. question is where is the money coming from. is it coming from paid social budgets, is it coming from -- facebook, from snap, youtube, is it coming from linear tv, given how bad -- i've seen a comment on this given how bad tv linear

ratings are down i think all snap can do is show look our daily active users aren't lowing down much and they're telling that the business is still growing quite healthy and their still early in theirinishives it around augmented reality and maps. >> and just on faang and in netflix and meta, i see that being bullish on growth tech is contrarian what does that provide for apple and amazon in the coming weeks >> and unfortunately those aren't in my covered universe so i'll speak a little more broadly on some of the growth names that i do cover and a name like disney i think jim cramer said this just an hour or so ago it doesn't feel good to be a bear right now even if being a bear is right. and i don't think there has been worse market sentiment in the last decade that i've worked in

the market than what you see right now. so the highs are going to be lower and the low rerz going to be lower and some of the up coming prints i have are roku and spotify. they feel like they're at all-time lows this week and if their prints are disappointing they could go lower so i don't think we've tested new support levels for things that are really growth driven >> we still have a lot of wood to chop in the coming days jason and steven, thank you, have a great weekend. >> thank you >> you too. as we go to break, let's get a road map for the rest of the hour including a look at gap plunging today cutting the sales guide exiting the old navy and we've detailed. >> and plus an interview with the ceo of freeport macmaran >> and it is earth day the astronauts will make their way back to earth this weekend

and nasa administrator bill nelson will join us ahead of that splashdown. we've a lot more "squawk on the street," don't go anywhere inclue iphone 13 pro with 5g. that's the one with the amazing camera? yep! every business deserves it... like one's that re-opened! hi, we have an appointment. and every new business that just opened! like aromatherapy rugs! i'll take one in blue please! it's not complicated. at&t is giving new and existing business customers our best deals on every iphone. ♪ ♪

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for just $49.99 a month for 24 months with a 2-year price guarantee. call today. shares of free mort mcmoran are lower after a first quarter beat yesterday after an out look for copper supply it is not common in the industry to see this type of growth in copper production. and joining us now is richard.

great to have you. on the earnings conference call you said the supply is challenging, the supply chal can't be solved simply by higher prices explain what you mean by that. >> well, typically commodities, there is a saying that higher prices are solved by higher prices and lower prices are solved by lower prices but with copper, it has factors other than just having a sufficient incentive price to invest that is blocking supply some of that is geology and where copper is located and there is environmental challenges so even with a price that is strong in today's price strong, i expect it to be stronger, that

doesn't necessarily mean there is going to be a way that you could move supply coming on market because of the other factors. >> you went on to say as well there is a real absence of new supply development which is what you're getting at here that would be necessary to meet estimated demand increases so as you said you expect prices to continue to go higher there is not the ability to actually meet the demand that is out there currently and/or develop sufficient supplies. >> it just takes such a long time, david. ours have a very long-term business and as we go forward, there is significant new elements of demand coming for copper most notably with carbon reduction investments. but as we go forward, demand is going to increase absent some black swan economic events and so there will be a need for more supply and that will lead to scrap recovery and some substitution and eventually people will be

inventive to invest and but it just takes a long time so in that environment, i feel very confident to even higher prices even though today's price is very strong >> well give our viewers as to how long is a long time andond the call you called out the u.s. in particular as sort of creating even more delays when it comes to building new mines >> so, david, you're talking about start to finish for a known resource in terms of development of five to ten years you know, people in the oil industry talks about months to have a supply response in our industry, it is literally years. and i think we have as good if not better of an undeveloped resource portfolio than others in the industry. and we're very positive about

copper but it is just going to take that long to develop it government policies are an issue. in the u.s., where we are significant growth opportunities, we benefit because our projects are very difficult to get community acceptance for a new green field mine in the u.s. and elsewhere so we have a position, community support, government support, we work hard to achieve that by doing things in the right way. but it's just a challenge. that is a double-edged sword for copper the fact that supply development takes so long is very supportive of prices. but the fact are that it does take a long time. >> richard, it is morgan i understand the supply side of the equation but how did the demand side and i ask that as we've seeing weakness within china, whether it is the real estate market or the covid

lockdowns here in the u.s. where copper is tied to the ism manufacturing readings and that is still in expansion territory but coming off the peaks in recent months, how do you see that piece of the equation playing out, at least in the near term? >> morgan, you touched on a point i raised in the earnings call yesterday i'm personally surprised is too strong of a word but it is noetno noetd -- it is notable that today's price is so strong because of the reasons that you talked about china consumes 50% of the world's copper with inflation cost and demand and supply side issues an the consequences of russia/ukraine deal. you would think those would lead to a lower copper price today than what we're experiencing and i think that is notable. because those headwinds are likely to be transitory.

so as the world goes forward, and particularly as people start spending more and more money on lek r-- on electric cars and buying everything because of 5g, artificial intelligence and new construction development, i've been around a long time and i've seen this copper song for more than 20 years and i don't think its ever been better >> richard, you know when it comes to oil, we talk about the structural impediments to more production, whether that is labor or regulation or just the time that it takes to get things moving but i wonder, in copper and medals, how much is driven by the fact that we went through this cyclical crazy time, where demand collapsed in the case of oil prices went negative and it is just this hot stove when does that memory sort of wear off. >> carl, good to hear you again after all of these years

it is -- there is some similarities but significant differences between oil and copper the world has tremendous oil reserve opportunities and there is issues relating to the production and development copper is much more of a scarce resource so it is much more of a scarce resource and when you develop a new copper mine, you think about what that does to the area where it is developed. these are massive developments i mean, so it has a big impact on the community and so it results in opposition for communities often to new mine development. so there is things that, while there are similarities in the oil situation, there are some important differences. but probably the most important difference is the long-term nature of our business we're working on projects now that will be generating copper

beginning in ten years but it will last for decades beyond that. but there is a gap and, you know, morgan pointed out that there is head winds to copper demand right now. but as those things get resolved as we go forward, there may be new headwinds, but if you could foresee a future of where some of those get resolved and some of the supply chain issues get dealt with, china deals with its property markets, et cetera, i honestly believe we're headed for a very positive time for copper producers and freeport's copper company in the world. >> and another at least short-term problem would be labor in the u.s what are you seeing there in terms of the ability to get workers and how are you dealing with it? >> yeah. you're right david, it is more an issue in

the u.s. we just had new labor contracts in indonesia and peru. about a third of our copper comes from indonesia and a third from the u.s. and a third from latin america. the u.s. is a challenge and we're having to take steps to recruit people and pay people to attract them and invest in living facilities and recreation facilities so it is a -- it is really an ongoing challenge in our business and we're like other companies but our minds are located in very remote rural areas and that creates even more of a challenge. fortunately we've got great company, we're able to pay people we have great morale and a great future so that makes the job easier for us. but no question it is a challenge. >> yeah. and finally, the stock price outlook does seem to have at

least chilled some investors what your 19% increase in copper sales in '21 and only 12% this year based on everything i've heard you say for the last few minutes i'm surprised it would be a down year in terms -- in terms of copper sales >> well you're surprised, david, listen, our copper sales were up substantially from -- in the first quarter from last year we beat our guidance some people are pointing to lower sales, our outlook is down 1% business as complicated as ours, that is not a major change we have had a great quarter. i've been doing these quarterly earnings releases for 20 years i i thought i had gotten over being surprise, i thought i had gotten over it i woke up yesterday morning with as good of a quarter as you could possibly have, the strong was trading strongly, over $50 a

share, we've gone from $5 to $50 in two years so i woke up really excited and then to have the stock trade like it has is just a reality bites. these are macro situations there is nothing in our company report or outlook that would warrant that kind of move. but the market is the market you know, we're -- you know as well as anybody how persistent we are i'm a real bulldog about those things and have a long-term business so it took a long -- had a couple of drinks last night and got um this morning and ready to go back to work. >> all right and you are a bulldog, i know that as well listen, surprises are what makes life worth living. so richard, always appreciate it thanks for take something time >> surprises makes life better though, david, i'll tell you that >> richard adkerson.

>> next hour on check tech, don't miss janet yellen and christine le garde that kicks off at 11:00 a.m. eastern. but first chinese tech stocks rebounding including jd.com and alibaba. but they are still tracking for weekly declined still firmly in a negative territory oa n year-to-date basis as well we'll be right back. stay with us ♪ ♪ nice suits, you guys blend right in. the world needs you back. i'm retired greg, you know this. people are taking financial advice from memes. [baby spits out milk] i'll get my onesies®. ♪ “baby one more time” by britney spears ♪ e*trade now from morgan stanley.

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it is been a rough morning for gap, even despite the tough tape, the company cut the sales growth out look down almost 19% this morning courtney reagan has the latest >> hi, carl, it is been more than a rust morning. bmo capital points out gap lowers guidance and misses estimates most more than most peers but the warning still leading investors to sell. the global apparel retailers said revenue will fall more than initially expected citing both macro economic dynamics and execution challenges at old navy the brand responsible for more than half of total sales and profit margins will also likely be squeezed due to higher

discounting at old navy. old navy ceo nancy green, she's leaving too. this is just the latest sting for the company. garnering price cuts from morgan stanley, deutsche bank and jp morgan and telsy advisory group. and they doubt that gap could deliver on the previous earnings guidance when the full quarter is released. now old navy has been the stand out brand. in 2019, the company announced it would spun out into its own public company remember that. that plan was aband onned in early 2020 for forward progress for the company as a whole, banana republic and the namesake brand have been lagging with all of the hype and sold out collaborations with kanye west at the gap investors are losing confidence in the gap the company has lost more than half of the value in the last year, well ubd performing the

xrt and while supply chain issues plague nearly all companies, gap paid $320 million to airfreight inventory last year and it failed to excite shoppers didn't sell very well. bmo capital notes it has less cash on hand that it did pre-pandemic sales weakness compound that concern. morgan. >> that is quite a stock chart courtney reagan, thank you. as we head to break, the dow is trying to break a three-week losing streak, right now not successful with the dow down about 3% right now here are the biggest laggards on thein determine for the ekwe salesforce and disney and chevron reporting earnings we're back in two. this thing, it's making me get an ice bath again. what do you mean? these straps are mind-blowing!

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i'm bertha comes and here is your stash tash news update. in jerusalem, a site that is holy to both jews and muslims and medic say that two more palestinians were wounded in clashes that lasted for hours. across the middle east and beyond, thousands protested the latest confrontation between palestinians and israelis. demonstrators marched in jordan and the gaza strip and as far as bangladesh back home in philadelphia, the city has once again ended its indoor mask mandate. just four days after it went back into effect officials credit falling covid hospitalizations and a leveling

off of new infections. and a hockey legend from the 70s and 80s has died lefleur was a scoring machine behind five stanley cup champions. four of them in consecutive years. hockey hall of famer guy lafleur dead at the age of 70. he had suffered with lung cancer back over to you. >> thank you very much for that. it is a tough tape this morning. dow is down 400. all components are red except for dow chemical and vix above 24 and every sector is red exception for energy we'll see if that does anything to help equity this is afternoon but at this point, 4346 means the ral from the february low to the march high has been cut by more than half. >> well rising inflation continuing to hurt home buyers as well. 30 year mortgage rates hitting 5% for the first time since 2011 and yesterday rates climbed even

higher to 5.11%. that is according to freddie mac. glenn, great to have you back on the show. >> thank you for having me. >> let's start with mortgage rates and then i want to talk about rental data which red fin put out later in week. when you think about 5.1%, 30-year fixed rate and from just the beginning of 2022, huge jump and means a big dent to affordability. how are you seeing this play out right now at red fin >> well buyers are becoming more discerning, tours industry wide are down 45% year-to-date and purchase applications are down 14% we were at a historic high in 2021. there was still an inventory shortage and still seeing bidding wars but instead of 12 bids there are three and homes that ain't so pretty are now sitting on the market for the first time but still beautiful homes, well priced homes, are going very

quickly. so it just depends on the market and the coastal marts it is getting softer in the sun belt, still pretty hot. >> what does this mean for the spring home buying season that is now taking shape? >> well i think it will be a reasonably strong home buying season sales volume is still limited by inventory. so prices will be stable i don't expect them to go up 10% or 15% but we do expect them to go up 5% year-over-year from the 15% year-over-year gains we started 2022 with. so i think it is going to be a fairly stable market where inflation, interest rates are scaring home buyers but you still have millennial trends and migration that is driving demand, especially the migration to the southeast >> let's talk about how all of this is funneling into the rental market right now. i mean, just earlier this week you released data showing that the median monthly asking rent

increased 17% year-over-year to a record high. do you expect those types of price increases to continue as well or are they going to start to moderate too? >> they have to moderate i don't see how you could have a 17% gain on a 17% gain if you look at a place like austin or portland, rents are up 40%. and i know that mortgage payments are also going up by nearly that amount so right now the cost of housing is through the roof because america as a site hasn't figured out how to help builders create more inventory than they have to date >> i'm curious, though, glenn, you're still relatively optimistic what would change that given your obviously are citing certain impediments to the market at this point >> i'm relative optimistic about prices i think they'll remain stable because there is just not going to be much foreclosure activity for people buying homes or buying them to live in them or to rent them out they're not just trying to flip them so relatively optimistic about

prices but on sales volume it is a significant step back nufd wight 2022 compared to 2021. there is no way we're going to hit that high water mark that is where i think the market is shifting. we'll see fewer sales but with rela relatively stable prices. >> glenn, b of a over the weekend looked at your market by market data, median sale price in cities like boston and chicago and philly and they asked maybe there is just a baseline percentage of homes in the u.s. that no one wants to buy. >> well, i mean, that is always going to be the case that there are some homes that sit. but mostly even in the coastal markets, days on market is fairly low so, i've been surprised, san francisco, los angeles, these california cities where many people are leaving are still selling homes relatively fast. that is even true in boston and chicago. people are moving south to warmer climates. they're also trying to avoid

taxes. but we haven't seen the kind of price free-fall that you saw in 2008 or in other market corrections. it is nowhere near that level. and i would tell you if it was i've been through that before. >> well glenn kelman, we appreciate your insights thanks for joining us today. >> thanks for having me. good to see you. bye. >> you too [ laughter ] >> as we go to break, check out some of the biggest laggards on the s&p for the week no surprise that netflix is going to top that list wbd in there as well first during april we're celebrating financial literacy month and featuring some of our cnbc contributors. here is anthony scaramucci with how financial information could help protect you from inflation. >> financial literacy means to me safety, security, enjoyment it is very important for people to feel that their in control of their environment and they're able to pay their bills.

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more than 50 companies and verses are joining forces to push congress to pass the innovation and competition bill once lawmakers return from recess next week elon moy is in albany, new york, and has more for us. >> well i'm at one of the mosted advanced nano tech universities in the world it is operated by ibm along with companies like samsung and applied materials and universities like sunni. they have invested $15 billion over the past 20 years in this facility it is where ibm developed his two nanometer chip technology. but despite all of the cutting-edge research happening here, the u.s. hasn't been able to reap the full benefits because we've fallen so far

behind in fabrication. and that is why ibm ceo told me he has been vocal about going to washington for help. >> the u.s. could correctly take credit forr --inventing in the s and 70s so the fact that we lack manufacturing and we lack the leading edge nodes here is to me horrifying >> congress is working on a $52 billion package to shore up the domestic semiconductor industry this lack of benefits, if it is named a official research hub that, could mean more federal funding and more jobs. critics are calling this a handout. but krishna said the u.s. has got to compete against countries that are heavily subsidizing the industry >> if you look, there is a lot of our current government aid. would you not call it a handout. because it comes with strings.

you must do this and in a certain amount of time to speak to the critics. okay we could live without that or then it may be much slower and much later than we would all like >> and guys we know that technology does move so fast that the chips are being tested and developed here are the ones that are going to be powering or devices and all of our smartphones over the next five to seven years carl, back to you. >> wow, smack in the middle of a debate about public/private investment into those industries thank you very much. >> we have a big show coming up on tech check. don't miss our interview with janet yellen as well as la garde at the top of the hour with the dow clone to seson ls.siow down 480

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bitcoin having a tough year so far as you know but not nearly as bad as some of the publicly traded crypto related companies. kate rooney has more on that this morning. >> for most of the last year crypto and stocks have been trading together but not so much any more the crypto stocks are decoupling with a lot of names performing three to four times worse than

bitcoin. a sliding crypto prices, that is not great for the companies but they're getting hit by a lot of other factors. let's start with the mining stocksch these are the firms running high powered computers to issue new bitcoin with names like marathon digital androt block chain, down an average 40% and bitcoin mining is capital intensive and higher energy costs and political risks around the environmental impact of this business there is also been limited supply of chips out there that these companies need and concerns about higher rates making it a bit more expensive to borrow. chris brenler covered this sector at da davidson and said it doesn't help that there is never been institutional support for the crypto sector but he does see some upside, the stocks are now cheap and mining is still profitable with roughly 80 percent gross margins at this point. a company not as profitable, coin base, that is the largest u.s. exchange, it is off about 45% this year.

getting hit by a slowdown in trading and investors have b beebeen worried about micro strategy and jack dorsey, they hold bitcoin on their balance sheet but they're down double-digits and microtechnology is down double-digits. finally, bitcoin great scale trust, it is a way to track it without having to buy it directly even that is underperforming, trades at a discount to the original asset and is looking to convert to a spot coin gize when we come back we will talk with bill nelson as the as-1 makes its way back home

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welcomeback to "squawk on the street." just getting a check on the

markets as we are at session lows the dow is down 500, and the s&p is down 3% and the nasdaq is down about .7 of a% -- percent we are poised for a slow week. meanwhile a private mission to depart the i.s.s. ahead of space ex-mission -- spacex. mission. >> both missions are powered by spacex joining us now is nasa administrator bill nemson. -- nelson. great to have you back on. >> great to be here. >> given the fact we do have a pretty rich cadence of human

space flights afoot, how does this bring us to a commercialized low earth orbit where more people are traveling to space and working in space? >> big time. it's gotten cheaper to go to and from orbit private business, the commercial industrial is realizing that there are businesses to be established in space and that is happening as we speak. the cost of getting a pound to orbit is just going to get lower and lower as we get more efficient. this is -- we are basically taking commercial business off the face of the earth and putting it up in space >> i know it's still very early, but how do you feel about the research coming out of this

mission? >> that's their own private business we are doing things together and it's our hope that we keep the international space station going for another eight years. and then we want to de-orbit the iss, and we want there to be a commercial space station or stations of which nasa would become a lessee. and we would do our continuing research, let it be a commercial operation. nasa can concentrate on our mission. we are going back to the moon, by the way, this year. and then we are going to marches. -- mars. >> let's talk about that the sls is making its way off the launch pad in the coming days after repairs after

setbacks during testing. what does this do to the ability of nasa to put astronauts on the moon by 2025 >> we think it will be june or july we should launch. that should not affect the landing on '25 we are going to have the second mission that will be a crewed mission that will orbit around the moon for 30 days and then a year later, which would be 2025 we will have a crew that will land on the surface of the moon. >> so i'd be remiss, because it is earth day, if i didn't ask you about the work that nasa is doing. so much of the climate research that actually happens is from or linked to space. whether it is climate research or earth research, how is that

incorporated as well >> most people think of nasa as space, but nasa is the point of the spear on the environment, climate change, on understanding what's happening to our climate, because all of those assets up there and the great observatories that we will still put up are measuring very precisely and eventually a 3d dimensions that is happening to our planet we could tell a farmer his corn crop has a shortage of water, but his wheat field next door is

okay instruments on preventing fires. instruments that tell us the level of the ocean and instruments that we will put up later this year of an instruments called swat that will tell us for the first time the level of fresh water, the lakes and rivers and streams and reservoirs all of that is happening as we speak. >> administrator nelson, we appreciate this time on earth day. thank you for joining us with so much afoot in space and on earth as well. thank you. >> thanks, morgan. >> another check on the markets with the dow down about 520 points, 1.5% every sector is in the red in terms of the dow, every component in the red led by v

verizon. >> not getting a good response to their earnings. twitter up about 4.5%. maybe people looking at the package introduced by mr. musk there are plenty of doubts, but he seems to be addressing them as we head into the weekend. that's going to do it for us "tech check" starts now. >> good morning. today, bend, don't snap, a miss on sales and profit. what results mean for consumer internet stocks. and disney is on thin ice. the stock is near a 17-month low. and a special day on cnbc. don't miss a live interview with the secretary of the treasury. >> you don't want to miss that one. we