points, but again that comes after a gain of 930 yesterday. s&p futures off by 31, the nasdaq off by 131, and tell me if i'm correct, tomorrow is the jobs report, right can you believe it's that time of the month already >> no way. >> yes way >> there it is >> cinco de mayo get ready. >> don't forget that >> that does it for us today we'll see you back tomorrow. it's time for "squawk on the street." good thursday morning, everybody. welcome to "squawk on the street." i'm david faber with jim cramer. carl has the morning off let's look at futures getting ready for the market open 30 minutes from now a bit of a reversal certainly from that very strong day yesterday. that's kind of where our roadmap starts, of course, with that fed-fueled rally and where stocks are going to go from here as you saw, of course, looks like we are going to be down at least at the open.

plus funding secured, investors including larry ellison backing elon musk's twitter buyout to the tune of more than $7 billion in equity. takes his commitment down a lit. and pressures for e-commerce marketplace this morning, disappointing guidance there sending shares of shopify, wayfair, etsy, ebay all sharply lower. a sad face let's start with the markets after yesterday's fed-fueled rally and 50 basis point interest rate hike at fed chairman powell's news conference he was asked for a 75-point basis points hike is on the table. >> 75 basis point is not something the committee is actively considering what we are doing is we raised 50 basis points today and we've said that, again, assuming that economic and financial conditions evolve in ways that are consistent with their expectations, there's a broad sense on the committee that additional 50 basis increases

should be on -- 50 basis points should be on the table for the next couple of meetings. >> that sparked a rally for sure >> not sure if there's an algorithm. say 75, buy the market but remember the market was really teetering at that very moment when our own steve asked that question. and it was almost as if there was something here or located in norad which said no 75 buy and the market does work like that because there's not a lot of players do people -- not a lot of players. what happens is somebody comes in with $100 billion, i don't know, $250 million, boom >> you can move things quickly. >> yes >> what has changed after yesterday? anything >> what has changed in. >> yeah. has anything really changed? >> i think we all like 50, 50, 50 we don't like 50, 75, 25, 50

>> okay. >> i also think it's interesting, the banks don't go up maybe people feel the banks go up, you're almost done you're supposed to be biography them here because this is the beginning of when your checking at makes nothing and you make a lot, take 2%, and banks clean up you have to anticipate that. all the changes, the banks should be better people feel calm >> you're saying nothing really has changed is what i'm hearing. we know the path we know they're going to continue to aggressively raise rates for a long period of potential time here until either there's soft landing or we're driven into a recession. >> right people are checking off certain boxes of commodities that have peaked clorox, fragts freights peaked,m oil, good for colgate, that's peaked amazon truckers laid off that's peaked. >> talking about that weakness in trucking for over a month

>> what people have to recognize is it isn't like they peak and then go back to where they were in 2019. they were up so much even if they peaked and were down 30%, they're still too high >> right have price increases outpaced people's ability to afford them? anheuser-busch had a good quarter. >> molson had a great quarter. incredibly confident, no tradedown. kellogg, no tradedown. where are the people trading the answer is the consumer is still feeling very good. there was a tyson trade-down yesterday saying people are not going to buy beef. >> clorox did benefit from the pandemic, from the focus on cleaning every surface you possibly could >> people change their attitudes. >> i want to listen to your interview last night with the company's ceo. >> self-reverential.

>> we have a long history of giving that value to consumers and we would expect that to continue nooechb a period where the consumer is under a lot of stressed we've seen that in recession before in 2008, our categories were resilient and we grew the vast majority of our brands we feel confident in our ability to attract consumers, give team that innovation and superior value and we believe they'll continue to choose us with our brands and brand superiority >> the ceo of clorox >> first quarter of organic growth coming this year after many quarters of no organic growth >> very young. >> i'm focused on -- >> i don't know. i can't help but just notice >> so innovations they put through, okay, are innovations for people who shop and say, oh, that sounds better than what i have like, we used the trash bags that smell good to counteract how trash bags -- say you've

just had a lobster dinner for people, you get lobsters >> okay. >> lobsters don't smell that good when they're dead you use the scented trash bags. >> what does that va have to do with the fed's path on interest rates? >> no. i'm talking about being able to outrun price increases if you provide value added. if you're doing the same thing, amazing ly kellogg is doing the same thing and is able to outrun some companies haven't been able to outrun but some have. samly beauty did not outrun. costco offers such a great value, they did it once again. i just find that you want to see who has a brand that's good enough you know, whose brand actually shines, this was an incredible one, i was blown away. what is probably the worst food for you? >> deep into the least the worst food for you spam

>> no. hormel had a great quarter hostess twinkies blow-away number one of the original spacs. >> back to the fed we have 18 months ahead of us -- >> doughnuts and a coffee? i have seven every morning >> the clhocolate doughnuts you and i will eat anything sweet. 18 months, a serious head wind, is it going to pressure asset prices we have a lot more rate hikes ahead of us. we sit here with multiple compression, the likes of what we haven't seen in quite some time a lot of comparisons being made to 2000 in part because it's the first time the fed raised aggressively but also -- all that capital that came in in the last few years that may have resulted in overcapacity in certain stindustries >> eahere's what happened e mers -- >> we'll talk about them.

>> as a class, they've been cut in half, e-commerce. most stocks i follow have been cut in half. most have been cut in half i mean, is that the experience the chance to buy? i mean, look at what happened to the people who -- you know what happens? i did a piece on this for "mad money. wow, i like -- i'm going to buy oakley you're on a street corner if you bought oatley. i like meat that isn't meat, beyond meat. fine, you're beyond money. everything that was -- i love certain shoes. warby parker, i like those glasses. david, what was done to the american people about what -- i'm not even going china >> i hear you. >> i mean, china the average chinese -- stock -- >> we have a long list from regulators by the way of all the companies that are on that -- >> to david, i thought that --

>> all right >> the chinese, there's a law against showing people what the numbers are. the chinese government has a law against numbers. >> i want to move on to twitter because we have some interesting news >> twitter is a cliffhanger. >> we have some interesting news of course if you haven't seen hit the morning, in a filing, elon musk has detailed all of the equity commitments that he has taken in for his purchase of twitter. >> honeycomb >> $54.20 a share, some $44 billion. he had a $12.5 billion margin loan in addition to $13 billion in straight financing. he's raised over $7 billion from investors and he's going the meaningfully reduce the size of that margin loan makes sense. it's coming from the same place. it's tesla's stock that backs the margin loan up -- >> and made money. people who made money on tesla >> it's tesla's stock he was

selling to fulfill his guarantee of raising the money now it comes down. he's got $27.25 billion in equity going in, the margin loan gets reduced to $6.25 billion. what's interesting here, jim, i have a few things to share in terms of what happened >> yeah, please. >> he handpicked these investors and it ranges from, you know, a billion dollars from larry ellison to $5 million from honeycomb, which, by the way, is a hedge fund that invest with him in spacex in 2013 and twitter when it was private. runs the gamut some people wondered this morning where's mark andreyson i thought he would be here he is. a.h. capital management. >> i was going to ask who that was. who is aaliyah >> i don't know. you have bin talal, the prince roming in with $35 million >> motley crew. >> you may have jack dorsey rolling in. >> really? >> they are talking to dorsey

about the possibility of him contributing his shares immediately or prior to the closing of the merger. let me give you ka couple thing. he did a live video presentation to groups. morgan stanley set it up but he did it he handpick who had he wanted in, is my understanding. >> there were more people who wanted in he didn't take >> i'm not sure that's the case. i did get the sense this is over, he won't go beyond the $7 billion in additional equity when he was targeting between $2 billion and $4 billion with musk, especially with my reporting you start to wonder we'll see because it can change, but that is my understanding >> what did he show them the pay tweet thing? >> they have a 29% ebitda margin, way too low in his opinion. they have 70,000 software engineers. >> every quarter 7,000? >> that's the number i was given from somebody who listened to -- >> 7,000

>> correct and he believes that the code is subramani subpar and under him it will be a magnet, too many engineers not doing enough, and it could be a double over the next three years. he built a trillion-dollar company in tesla without any marketing. amazing, isn't it? >> airbnb had that >> he's telling people he'll be ceo for a short amount of time after close and then pick somebody to -- >> kind of like howard shultz. >> maybe >> kevin johnson so let's go over some things this is a parlor game everyone wants to play. brookfield >> yeah. >> right here. >> yeah. >> smart guys. >> v they're very smart. you want to invest with brookfield finance, just taking a flier >> i don't know. to me the names that stand out are sequoia. that's an important investor listen, he wanted outside investors. he may have wanted them in part

to take down his overall -- >> where's ventures? >> i don't see it. >> i see ellison >> why did you expect that dell would be there did you hear that was a possibility? i didn't. >> no. i'm looking for valely smart people who have a lot of money. >> marc-andreson larry ellison? that doesn't get your attention? >> michael dell is a smart guy i'm naming people -- never mind. >> never mind? okay >> i'm just saying it's -- >> what do you think >> it's a crew of people that i would have expected to put a lot more money in. if it's handpicked, i get that >> it was maybe -- it may be originally told he was looking for two to four and went up to seven and doesn't want to expand beyond that. he decided who he wants to be in there. >> you know who wasn't in there? safeway. walgreens. >> are you referring to

elizabeth holmes is that what you're doing here you are. i got it >> no. >> schultz is not in >> look, i'm just saying this is not the last that i would put -- not the list i would put together for a big deal. it's not list. i would say fidelity, take it down take it down, fidelity >> take what down? >> take the whole field down >> oh, please. everybody wants some exposure. >> that was just another -- >> jim, we're passing over the more interesting part of this, which is what is he going to do with twitter and how is he going to change it how many of those 7,000 software engineers is he going to potentially lay ff how many people is he going to be able to attract he does attract great talent what does he do with the platform >> keep the cfo? >> i have no idea. >> here's what i have to say about their numbers. if you look at the margins, they're awful. if you look at the modernization, it's hideous. you could go in there and you could literally say, listen,

anyone who's building their business, you have to pay per tweet. just what i told you, like, you know, when -- >> by the way, he didn't give update prod jexs he gave projections, just so we're clear. >> if he's running it, i want to send him a check because he -- he uses twitter. >> some of these -- >> did you ever see how many people on the board tweet? >> not many. >> most don't have twitter handles. >> it's true >> musk knows about what works he knows you can build your business on twitter. >> yes >> so why shouldn't you give twit err pter a piece of your business that's what he's going to do >> we'll know soon enough. it will take a little while to close. apparently that's the number he was comfortable with i thought he was going far bigger number, i heard as much as $14 billion that was wrong

i didn't share that on air because i didn't have it hard and i'm glad i didn't. it wasn't the number >> you have gray hair. >> i do. unlike that clorox ceo she's like 30 years old. >> she's doing well. organic growth brand-new charcoal david, lots of different wipes. >> let's take a break. >> no. >> yes >> we haven't even talked about shopify. >> we're going to next in fact, it says it right there. when we return, a rough start for ebay and shopify we will fill you in. >> musk? >> she's 42 years old, the ceo of clorox. >> it doesn't matter >> of course it doesn't matter i think it's good. it makes sense to me she could be in the job for 20 years. there's look at futures.

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and start-up deliver $2.1 billion. >> a lot of money. >> shopify's harley finklestein will be on "mad money" tonight >> josh starts ouf with the call saying one of the real certainties has been uncertainty. you could say it is the new normal. >> yeah. >> i don't want to hear that i want to hear the new normal be exactly what i heard from airbnb he said he thought we'd make $100 million in cash flow. that's what i want you have issues. they claim that strike, remember they had that stwrike of certai people who didn't want to use it the opening did hurt t what were the best categories? wedding, fashion, tote bags, passport cases basically -- >> we've gone through many of

these stocks that were pandemic plays. >> this is a pandemic. >> they have had complete turnarounds. >> spending more money it's going to survive. >> oh, yeah. >> it was a great -- >> i am looking at some notes that say while directionally consistent, the magnitude of the slowdown seems worse >> true. >> and the company effectively took down margins largely due to its own investments. keep investing, silverman made clear. >> yeah. look, i just think that it's a hard -- i will call it a hard own. shopify -- >> shopify, q1 revenue, at least i see here, missed by 4% most key line items below expectations from the analysts that follow the company. there's silverman talking about those turbulent times. we've moved on to shopify, guys, so we'll do that at shopify revenue, jim, up 22%, but again seems to be below what

the consensus of analysts who -- >> shopify actually mirrored amazon amazon didn't do that well in that class you start thinking, you know what happened to shopify >> amazon was kind of a seminal moment in quarterly earnings, wasn't it? >> so amazon was bad >> bad b-a-d, bad >> i happen to like amazon folks are not not going to use amazon my wife uses shopify and it's a great fulfillment place. >> it is but subscriptions at spotify, revenue up 8%, that was a miss >> e-com, we're out, we're shopping i can't wait to see home depot and lowe's people are going out they don't want to just sit there and order anymore, david wayfair. >> wayfair, tell us quickly.

let's look at that stock >> wayfair missed. geez, they lost $1.96, i was looking for a loss of a dollar >> these to were all beneficiaries of the pandemic in a huge way they've all come down sharply prior to this quarterly report, and they're all getting hit again. >> how about all the people you had to bring in to put together the wayfair stuff? what are they doing? >> i don't know. all i can tell you is i'm so tired of reading bigger loss than the loss that was anticipated. give me illinois tours, okay i want a tool company. >> wayfair, awful. ebay, not of this group, certainly the best performer they lowered their fiscal year '22 guidance, down 10% to 12% year over year

they had been looking for 5% to 8% they benefited from -- >> but ukraine what do you think the biggest thing selling on ebay is right now? ooh i don't know. >> trading cards >> declining consumer confidence, macro headwinds, and getting europe as we might expect >> look, these companies all have one common theme, and it's different from what people are thinking you're not making things at home anymore and selling them because you're going out you're going out >> every night >> every night they go out you see there's covid at work, but they can go to a 300-person event but covid at work. >> maybe you'll go on wednesday. maybe thursday unless it's raining. >> right >> then you're home, but you go out every night. >> every night you go out. >> every night >> but you do not make needlepoint and sell it on etsy anymore. >> no. >> and you don't get the fulfillment from shopify and if you're ebay, you've already gotten rid of everything in your house.

what's left? well, what's left is bookings. david, you didn't even cover bookings >> does it occur when you hear the music that we can do bookings later >> i'm deaf in my right ear. >> maybe save it for your "mad dash" coming up. opening bell is five minutes from now please stay with us. a lot more "squawk on the street" for you straight ahead

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travel iscoming back, and we're all pleased. we're going through a hard time for 2 1/2 years with people not being able to travel way they wanted to. this is something i think everybody feels pretty good about. >> that was booking holdings ceo on "squawk box." that is the focus for the "mad dash." we'll take you right to the opening bell, about a minute and a half away. >> numbers are extraordinary 150% since twaint. pretty amazing booking, hotels doing well >> expedia did not do well and these guys did

>> some companies are -- what i like about this, david, is the trajectory april was better than the previous two months. it's going like this they're going to western europe. they're not afraid obviously, the problem is in eastern europe, not going there. i was blown away, david, about how this economy has shifted from buying things at home and watching video games to just saying, you know what, you only go around once in life i'm going somewhere. and by the way, that was also a theme of brian chesky, who for airbnb, where people just go somewhere every weekend. david, your description of not going anywhere, i'm not going to work it's rainy, i'm going to go to biloxi penn national. david, people are going places, but they're not spending at

home [ applause ] >> they are going places >> wayfair when you were trying to have an office at home, at one point you used wayfair now you have everything. >> you got it. [ bell ] celebrating a recent ipo, a recent biopharma, a novel vaccine. >> moderna, novel vaccines we kind of went away from novel vaccines when everybody decided to add operation warp speed. it's coming back by the way, the biotech companies -- >> they've been crushed. >> yeah. >> they have been crushed. i had a conversation about this yesterday with some i'm close to who is an investor in the sector he pointed out as well the fda has got toen more aggressive

with clinical holds, something to keep an eye on, jim and for curious reasons. but that can cast a pall even on new antibiotics, apparently, where they've done that. backlash as a result of the biogen -- >> that fiasco >> something to keep an eye on is the fda not moving things along and/or being more aggressive these clinical holds, even when it appears there may not be a reason. i had them didn't write them all down i didn't take the notes. >> the amgen -- >> got to take the notes >> david, you're on to something. take a look at 1-800-rats, you know, they test -- >> they do the testing. >> the stock was at $460 in cement and now it's at $250. you usually give them a test it's hard to run a test yourself i'm running a test myself, it

first of all costs a fortune second, it's very hard to get a test done during a period where people are afraid of covid so you keep redoing the test it is just a monster to try to get it right now that's something to watch. you should eventually see more consolidation as the big dog who is don't have a good pipeline. look at pfizer they have a gigantic loss of exclusive ti coming up >> on what >> just a lot of different -- >> compounds >> biogen, a tremendous company, which has a drug, a lifesaver for a lot of people, a migraine company. i am shocked they come home and they buy it why? because the loss of exclusivity is just a nice mare. bristol-myers has a big loss of exclusivity coming up. >> on biotech, something else as well appears to be, again, back to this idea, so many companies have gotten funded because of the amazing amount of liquidity

available and capital available. >> right >> so you have a lot of companies that are -- it's called competitive density, sort of going after the same -- >> competitive density >> going after the same -- >> i did a course. it was kindergarten in competitive density. >> no. >> kindergarten on suicide in competitive density. >> something that malone would say. like, you know, it's a ris condition. competitive density. but what it means is you have a lot of different companies going after the same thing not all will win but -- >> multiple miyoyeloma >> this year, that's a broad index. >> those guys got smacked. >> yeah. >> it's incredible how much money has been lost. people keep saying, the market is hanging in there. the market is hanging in there it ain't hanging in there. it's getting -- every day a new stock gets annihilated

shopify was a thousand-dollar stock. >> yeah, it was. >> you need a microscope competitive density? get a microscope company to find some of these stocks think about the money that was lost a lot was government money being -- >> the largest canadian company, which is not a great company to keep, because so was nortel -- i could go through a few of them blackberry might have once been, right? >> i'm going to give you a great example of a company that is terrific to, does great stuff in terms of experiential measurement. it's called qualtrix, symbol xm. it's at $18. people love the product and it loses money. if a company loses money, there is no price people will pay for it anymore by the way, david, ebitda is -- >> you're saying that many

months ago. >> yes, for my investment company, which has a meeting today at 12:00 it will be explosive, fiery, and fun. >> okay. >> i said in the november meeting, if it doesn't make things, sell at a reasonable price and return capital forget it. it's done. and, david, i got that one real right. >> you did >> in twitter all people do is thank me. >> no, they come after you because you've said something about virtually everything at one point. >> not competitive density that's new one >> there's a lot of competitive density. there is a lot of green on my screen >> you were out there -- the milken people. >> yes, like 3,500 milken people >> the only one is kroger. >> what does have that to do with anything? >> it's not exactly -- they're not solving anything. >> kroger? >> well, i mean, like, yeah, trying to solve a -- >> it's not up now

it's down. >> kroger, when you interview kroger -- >> i didn't interview kroger >> i'm sorry okay >> all right can we move on, please >> let me give you this group that had not been getting killed cybersecurity. they have what i call the tailwind of a lifetime and what's happened? >> they had high multiples >> killing russian generals. the stock gets hit it's also a javelin. javelin is 45 pounds way too heavy. >> the state department says we are not offering evidence to specifically kill russian generals >> it's good we have intelligence >> do we have competitive density? i don't know >> all i can tell you is the president might see a javelin but not nearly as good as the one i use. >> were you in a war at some

point? twitter shares are up almost 4%. >> holy cow. >> one of few names. i see bristol-myers up twitter is up in part because investors obviously feeling more confident about the ability of mr. mus tock complete the deal, having reduced overall if you lump in the margin loan backed by tesla stock and the test la stock needed to sell to raise the $21.5 billion, now we has $7 billion less with a bunch of investors >> if he can stop selling -- >> he reported earlier he'd give detailed presentations in terms of what he saw as potential projections for this company once he takes over, what he believes it can do as a private company, and indicated he most likely would take over for a short period of time after close as ceo and then hand the reins off after that to a chosen successor. so all of that shared with you this morning but interesting, and it does appear, at least based on again what i'm hearing, that he's done raising outside equity

jack dorsey may roll is billion dollars worth in, so another billion less than musk has to pay. that's not clear that's happening. >> he has a plan that's going to involve -- if you make money, then you have to share the money or pay he's going to be able to analyze, use more efficient intelligence, doing to very well, and he can use direct message function in order to be able to identify where people are. so if you're american express, you can see it in guadalajara. can i switch for one moment? >> you go where you want, please >> research we're getting. >> thank you >> we're getting research, and these are scary times. fisker, morgan stanley, which is lenny bruce, i'm sorry, adam jones, first quarter inline, reservation strong, more capital needed who's going to give them more capital? they've been annihilated it will be like twitter.

>> it still seems like there's an opportunity to raise capital. >> we're kind of at the end of that phase. >> we are. >> you earn 3% doing nothing >> we are. but look at carvana. they raised a nice amount of capital from apollo and aries. >> didn't talk about the ka far ray in the coal mine >> tell me >> when you have to pay 10%, that's a lot you have to sell a lot of cars and how did you do it? how did you do in the equity market 80 let's see -- oh, my. it's at 5. -- 55 that's okay. the family took that huge thing. >> there's another look at carvana. that is not going in the right -- >> if you were in it, how do you feel right now >> that's bottom as you like to say. >> a great company

fabulous company >> when i think about the period of a year and a half ago where it was trading at, what, 40 times revenues what's snowflake now i may be wrong in that >> it's not inexpensive. >> still not inexpensive because in many ways the poster child for the -- >> money winner. >> run by a guy you love, great at executing >> here's why people like snowflake. >> endlessly confident >> $1.2 billion in sales then next year, $2 billion in sales. the year after, $3 billion in sales. >> okay. >> if that projection is right, you should be buying stuff you should be buying it, david >> yeah. >> pick some up. >> waze know, i can't do that. we can't own individual stocks you're talking the proverbial wind, yes. >> yesterday i was speaking to

ed green >> hes dupont. >> brought in other asset, raised the multiple, has $11 billion left he's going to buy back stock it's down to $67 from -- 86. and no one wants it. at 19 times earnings we eep hearing, it's so expensive and dangerous. the proven ceo who's made you money time after time. i old say bet with him >> and you do that you bet with ceos. you're a believer that ultimately they prevail and you have confidence in them. >> i'm betting with howard it's starbucks even though i like k.j >> i thought you were not that happy with howard. >> i was unhappy the way that -- he wasn't mentioned in the conference call. you have a pretty good job >> that doesn't mean you don't think that schultz is going to be able to create balance here

>> say china comes to its senses and decides instead of having four people hospitalized because of omicron they let people go out. >> that seems very much unclear right now. >> say they come to their senses and decide -- >> stop, stop, stop. >> from the west, by the way, chinese, not from us, you want to be in starbucks the optionality is down five, plus a point with howard saying i'm really back and i'm going to fix it and we'll stop it with the unions because they don't know what they're doing. it was an amazing conference call amazing. and i felt like if china comes back, maybe goes 8%, 9%, you have $100 like that. meantime, a 2.4% yield >> a very good way to potentially play a china reopen. it may go the other way. you could even more lock ddowns. >> i think if you listen to the late doctor, saying you can't

contain a novel virus. >> the chinese are not listening to that. >> they are. >> no, they're not. >> but i do know this -- they have biontech, the ability to end this madness one day they're going to say we're going to use biontech, everybody back to work >> mrna. >> yeah. david, your pills work >> paxlovid and then -- it's still good the market is there and it has higher effectiveness but some drug interaction the antivirals we don't talk about them that much they work. they're good to have unfortunately, because this thing is never going away and it's moving to the animal population, the white-tailed deer, you never know if it's going to come back, you want these things around. where's the level, jim what's the level going to be want to give me your best imitation of david costin?

>> 8%. we're still oversold >> finally from me, you know, because i did interview mark rohn earlier this week up 3%. adjusted net income, $915 million. about $52 a share. and obviously they talk about the recurring nature of their fee base that's the wrong one sorry. there it is. same one changed it to an apology see that $10 million, 52 cents a share, strong quarter aum up to $513 billion, $31 billion of inflows at apollo i have these guys on my mind because all the alternative asset managers were my guests. >> the market likes eaton, it likes emerson.

>> okay. >> it likes illinois tool works. >> that sounds good to me. >> real companies. major real companies that have adjusted, some involved with electrification of batteries, others splitting up to create value, emerson these are real companies with real multiples, 10 to 19 times earnings returned capital decent did i have denld. that's what people want. they don't use adjusted gap. i sold that today. it does not include rent >> well, yeah, rent doesn't really figure -- >> david, there's accounting things going on right now. >> yesterday we spoke about lyft >> he is so busy trying to figure out the chinese we have companies in our country that if you do nongap, david, they're basically not including, like, uniforms at their restaurant >> it's a very good point and an important one, one that we'll try and stay close to. all right.

let's get to bob pisani now and get a look at what else is going on in this market this morning bob? >> what's going on is we're giving back a significant part of yesterday's gains, tech weak, microsoft is weighing on the dow, apple weighing, but so are the banks, goldman significant weight, honey well as well look at the sectors. the art fund on the downside this morning as well and energy you know, oil is at $110 right now and energy is flat to down pseudo th -- today. tech notable to the down side. we've been talking about these incredible travel numbers. jim mentioned booking holdings it's the trend that matters. april bookings for room nights up 10% compared to april 2019, not april 2021 you don't want to do that. april 2019 was the peak. it's up 10% compared to that number that's how strong these numbers are. jim referenced that. important to understand the

strength of this as for where we go from here, enormous debates overnight about what's next for stocks and the slight curveball i think mr. powell threw the market here i think the key point here is powell may have taken 75 basis points off the table, but he's not taken inflation off the table. sustained inflation is the issue. it's going to erode profit margins. the question is how sustained is it at this point multiple contraction is what's happened this year we've gone from 22, 23 forward to 18 to 19 forward numbers. is that enough will earnings estimates start coming down? that's a key story powell might talk about a soft landing, keep treasury rates down, keeping the multiple from declining more the other major component is earnings look at the s&p 500 this year. how to you get to down 13%, 14% like we had on monday this week? a dividend of 1.5% growth. earnings growth is still positive, believe it or not, 3%

to 4%. multiple has contracted. it's how much you're willing to pay for the future stream of earnings that's the speculative component of the market. it's determined by the interest rates and expectations on the economy that's why the s&p was down 13%, 14% on to monday because of multiple contraction the issue is if we see earnings estimates come down. they have slightly but i'm surprised how strong the estimates remain for 2022. cathie wood yesterday making comments about indexing saying people who are engaged in indexing are misallocating capital. a strange comment for her to make she's an active manager. the track record has not been good for active managers s&p, dow jones, a big study every year, one in february, we reported on it, 79% of active managers in 2021 underperformed their benchmarks 79%. when you include ten years of active managers, 86%

underperformed their benchmarks. why? because many active managers are terrible the funds close. and they lose money. they charge very high fees that eat into the overall return. this is one of jack vogel's main comments when he ran vanguard, about the high fees for active management when you account, david, for the high fees as well as the poor stock picking and the difficulty of actually stock picking correctly year after year, that's why active management consistently underperforms david, you know this as well as i do, this has been studied academically for decades now, a strange comment from cathie yesterday. back to you, david >> and you've been following it so closely for so many years it's always the same story, unfortunately. >> peter lynch is saying enough of this. averages for years i know that firestone beat --

these are just very good -- >> warren buffett has done a pretty good job at it too. >> my i.r.a. i could show you how much for my kids >> i'm going to give you a bond report now stay tuned here, i didn't mean report, so stay tuned. there's a quiz after this. let's look how treasuries are faring there it is. yields ten-years above three. >> that's it go home, marcus down >> don't go home in the future we'll travel to incredible places with the help of magical technology. but what about today? ♪♪ i can't wait for what tomorrow will bring,

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you can see nasdaq is down 2.2% amazon, for example, on a lot of the weakness, buffer certainly the megacaps are down. we're back after this.

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♪ good thursday morn, everyone i'm david faber with morgan brennan. carl has the morning off much the nasdaq will catch people's attention, reversing many of the gains we saw late in the session yesterday. morgan >> 30 minutes into the trading

session and e-commerce stocks are getting crawford today, despise the online marketplace beating -- inflation and return to pre-pandemic shopping facts are at play. it's a similar story at etsy, the company says consumers have less disposable income and many more places to spend it. we're going to end with wayfair, active customers down more than from% compared to a year earlier. those shares, david, are down 17.5%. we're going to turn back to the broader markets, giving bay the gains from yesterday

steve liesman is still in d.c., it was his question to help spark a rally when the fed chair answered it. what do we know now? >> i'm going to have to ask powell another question. there's a lot of discussion whether fed chair powell took off that 75 base rate hike off the table. some are predicting stability, others are criticizing it for putting the fed further behind the curve. here's what the fed chair said >> 75 basis-point increase is not something that the committee is actively considering. >> that sounds dovish. and then one wrote -- waiting this long to normalize policy increases the odds the fed will ultimately have to engineer --

and now we see it peaking, christian from evercore -- while praising -- warned, quote, it's too much too soon in economic space for the fed to allow financial conditions to ease very substantially on a sustained basis, as this would work against the needed cooling economic activity to bring it under control. the danger here is powell has to backtrack and remind marks that the fed is not really its friend right now. >> steve liesman, thank. good setup for our next guest. alan blinder, and paul mccully good morning to you both alan, i'll start with you. is the fed still behind the curve? >> sure. they know they're behind the curve.

they know and they have said they have a long way to go t i think this remark about we don't have 75 basis points on our mind, you know, is fairly innocuous. i think the markets made much too much of it how many of us thought they were seriously contemplating 75 at one meeting? practically nobody, i think. >> paul, how do you see it especially giving some of the financial conditions tightening that we have seen within the markets, specifically fixed income as of late? >> i think that mr. powell did a really good job. i actually applaud him taking the 75 off the table, for the simple reason, the key issue is, where is the terminal rate going to be? the forward market is already pricing 2.5% if he hunt taken offed 75, i think that you would have seen a

further ratcheting up of the terminal rate. that may be necessary over time, but right now i didn't think it was necessary. he didn't, either. i think he wants to consolidate financial conditions where they are. he doesn't want to ease them, but he didn't want them to get tighter right now. he wants the market to focus on a predictable path toward that the terminal rate as priced right now. >> alan, i want your thoughts on that what is neutral? i ask that, even though this was the sort of takearm, was that despite the biggest rate hike in more than two decades, it was taken with dovish tone, at least in the near term, but longer term that full rate of neutral estimates seems to be expanding from a fed perspective how do we factor that in it still seem pretty hawkish over the long term potentially

there's an difference in the way economists think of neutral. we economists think of neutral as a real -- take on the the inflation component. markets tend to focus on the nom nat rate that's what traders trade on it depends on what inflation is going to do. if this idea that the term nat rate might be 2 1/2-ish, something like that, makes perfect says if inflation gets down to two. if it doesn't get down to two, or takes a longs time for inflation to get down to two, that 2 1/2 peak number that people have in their head is probably too low i want to emphasize it's go aheadwork, more like 3 1/4, 3 1/2. eventually they don't need to get there this year, but any

means. >> we have fred mish kin on yesterday, he was very negative in terms of his expectations of the fed engineering a soft landing. he said it won't bess as bad as the '70s, but it's going to be bad. what is your take? >> i think they had a sporting chance, a good chance. i think it's cavalier to say they can't achieve it. it's going to take some clever maneuvering, and also, quite frankly, a lot of good luck. but i think it's doable. so i think the bearishness about their capacity to actually achieve a soft landing or a softish landing is overstated. i think rick is focusing on traditional sort of brain works, and obviously neutral would be higher as alan just commented. for right now.

i think it's prudent to give mr. powell and company the benefit of the doubt. >> it's interesting. you say they're going to need good luck. i'm curious. what would represent good luck, in your opinion? >> the absence of more and more shocks our country has been hit with shock after shock after shock. if we could just have a period that didn't have shocks coming over the transom, i would consider that to be very good luck, particularly from the standpoint of loosening up the constraints on the supply size, and two for the housing market to actually lose some of its irrational exuberance. >> just to piggyback off of that, all of the noise that's contributed to the inflation picture in general, how long is

it going to take do we even know, for these higher rates to begin to tamp down demand, slow economic growth, and actually have an impact on inflation? >> from what we know from past experience, given the craziness of recent years, there's always been a big question mark how much you want to rely onpast experience, but what past experience has taught us is that it takes, you know, a year before you see even impact of tighter money on inflation, and probably most of it takes two years or more. the fed understands that and will be patient. the political system will not be patient one little bit about that, and market traders on trading desks will not be patient from one day to the next day. so there's this very large gap in time horizons

if i could put a slightly sharper point on paul's point about shocks, which i agree with completely, it's food and energy those are the big deals. lots of things are going on, but energy prices have been soaring, food prices of late have been soaring. most of that is not in the price index yet, but it's coming i think the biggest good luck we could have, this would be good luck in many respects for the world, is for the ukraine -- the war in ukraine to end quickly, and things start getting back to normal. >> it's such a keypoint, especially when you get to the peak inflation debate that the market seems to be fog countriesed on, for better or worse. great way to start the hour. gentlemen, thank you for joining us still to come -- david, i think you have more news for us on twitter >> thank you, morgan

we'll take a quick look at shares of twitter,g given that news, the stock getting chloroyou to the deal that of course has been agreed to under which mr. musk will buy the company. in fact that's become a fairly tight spread at this point there's going to be time for him to get the various approvals firms but he has raised roughly $7 3wi8 onfrom a series of investors that will reduce the effect of the margin loan he is taking on. that is no longer the case it's down to $6.25 bill billion.

it does makes sense he would want to reduce the marginal loan, because you obviously are paying interest on that. this came together over the last ten days morgan stanley led the effort for mr. musk, but it's my understanding from those familiar with the process, he had the last say on who would actually join him. he did want outside advisers, was particularly targeting a raise as also as $2 to $3 billion. ultimately he did choose he wanted in, and perhaps may have said no to others who wanted in. notable investors including larry ellison at a billion, marc an dries en, and print bin tallal, from the saudi kingdom is rolling in

some shares, and there's a possibility that jack dorsey, twitter's founder will roll in as much as a billion into the new coe. in presentations made over the last week, i'm told musk was quite detailed in miss presentation in terms of projections, in terms of his expectations foss company, pointing out that he believes ebitda margins are well below where they should be, that they have too many software engineers, that he will be in a position to attract much better talent, what investors believe may be a double over the next three years, perhaps them twitter reentering the public markets at that point. many investors had been along for the ride on spacex, and as you know, they have done quite well if they invested in any period of time the last few years. >> that's right, larry ellison is a director of tesla

set sequoia has led the previous rounds elon musk's companies that haven't been made public, lab eval or dfj. it's notable that they're not among the list it does speak to the fact he has this group, this contingent, both in terms of workers, and engineers and in terms of investors that go with him, basically across companies and across projects. that playbook does seem to be playing out here again, where twitter is concerned, david. >> yeah. well, listen, he's a money maker. it's as simple as that you know it well following spacics as close as you have many say it's even above the $100 billion value

by the way, we did report that he probably will take over as ceo, at least he seemed to tell people that on these presentations for a period of time, but then find somebody to take over the day-to-day running of twitter, as he obviously will still control the company, giving his equity check. still to come this hour, the fed trying to curb inflation as clothing and food prices continue to rise we'll talk the pulse of the consumer with the ceos of both hanes brands and kellogg's both out with earnings this morning. another check on the markets. it is a down dade after the rally yesterday, with the dow down 1.6%, 555 points, s&p is down more than 2%. the nasdaq the underperformer. we still have a big show ahead

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names, including some of those faang names we follow. as we move back toward a post-pandemic normal, if you will we'll continue to keep an eye on the sell-off david? yeah, much of though being reversed, as you point out with that nasdaq in particular, of course, many of moss e-commerce companies, including amazon now down 5.8%. let's go to hanes brand. shares you can see are now down more than 20% for the year steven, always good to have you with us. you know, we have a good view of a number of different things from you i think on the conference call,

you said you were taking a wait-and-see a bit, but you certainly had good demand in the first quarter. what's the wait and see about them >> david, thanks for having me back and good morning. we had strong first quarter, and was pleased with the results underlying that, we had more demand than we could supply. we're still seeing really good consumer interest in the brands, consumer spending has really continued. when you look underneath consumer are responding to innovations, to brands, responding to people vetting behind that. we expect that demand to continue that said, there's certainly pressure, the inflation we all know is out there, we kind of have to wait and see to see exactly how the consumer responds, but as we look forward, we're seeing a good lineup for back to school, about 18% more inventory back there. we had good solid bookings for

the back half, so we're cautiously optimistic, i would say about the consumer, but how they respond to the significant inflation out there is still yesterday to be determined. >> yeah. so, again, the jury out on whether they're going to change their behavior, but you certainly want to be prepared if that is in fact the case >> yeah, absolutely. we're not stopping what we're doing. one of the key parts of our three-year strategy, which w call our full potential plan, is to invest behind the consumer and invest in the business we continue to invest in media, spending on you are our brands, product innovation, so we're leaning in with the consumer, and making sure that we're there to meet their needs and be prepared for the back half of the years. >> things you can control like accelerating -- logistical challenges were other things you

noted in these earnings that are continues to have an effect. is the worst over d. do you th think, or potential play out and potentially gaining steam, with everything we're seeing with ekoran and the china covid lockdowns? >> i certainly hope -- the supply chain is definitely still disrupted. an average container from china to the west coast is about 73 days that's what we saw in q1 norm after before covid was 35 days, so it's 2x the ports out in l.a., they're still 40-plus ships out there at anchor or slow steaming their way in covid is still disruptive. at the same time we're trying to take advantage of the

disruption, and executing or plan faster and faster in the back half of this year will tell us a lot about how the consumer behaves if the consumer stays strong that will help us work through it. >> have you been able to restock? >> we are still trying to restock. if you think about our results in the first quarter, in our champion business specifically, we missed 40 million opportunity just because we didn't have the inventory. that business goes up to a 14% growth in the first quarter, there is more demand than supply so we're working through that. we have a lot of inventory we call it intransit in our supply chain thath that should hit and have us ready for back to school. inventory, having enough of it to immediate consumer demand is still a challenge. >> you point on the cotton is

roughly high single digits of cost of goods sold you're locked in this year no way to predict next year. is that a concern at all for you? >> we have managed cotton pretty well it's important but there's a lot of other costs out there the frontline we are seeing in the back half, first is 12 weeks ago when we released our earnings we saw an incremental -- now our team did an amazing job. was line i our p & l for the back half is locked in >> what about passing along -- are you able to do it?

are you worried about it >> we're always worried about it we took pricing, active wear pricing will hit in the summer, roll through the back half of the year, but we think about pricing to how much a consumer can tolerate we don't just pass it directly through. we're thoughtful about where we can take it. we do it differently by brand. we keep the momentum and the growth behind the brand as we go. >> steve, always appreciate the update. >> thank you, david. great to be here. shares of booking holdings moving higher oday reported better than expected quarterly profit and revenue with expectations for a busy summer travel season ahead we've been hearing that a lot from the travel-related

companies. shares really speaks to the shift from goods to services we'll be right back. stay with us

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welcome back to "squawk on the street." check out the moves to the energy crude climbing again today, hitting a new six-week high. the xle, though that is been hovering around the flat line this morning the surge in oil also helping one of the group's biggest holdings, which is conoco phillips the product is falling slightly short. innend up near 40%, and the energy complex reese mains under close watch in general also taking a bit of a breather this morning no natural gas as well,. eak ghhee going to take a quick brlit re don't go anywhere.

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ing thisr. this is your cnbc news update the world health organization releasing new data, nearly 15 million people died by covid that's more than double the 6 million deaths officially reported by countries around the world. the head of the u.n. agency calls that number sobering an international donors' conference at warsaw has raised money to the support ukraine quote -- we will win to egg. for the first time since a new flare-up of severe knee pain, pope francis used a wheelchair in public

he had an audience of group of nuns until today, he had beenable for walk from the entrance to his chair. let's bring in senior markets since 2020, i should say. let's bring in mine santoli. mike, i'm just looking at the nasdaq, which is leading the losses we're down almost 4% to say it's a volatile market is an understatement here >> if it already is highly stressed, tightly wound market there's often a rethink, though i would not have expected it to disgorge just about all the gains we got yesterday one element is the overall market is not yet stress tested. i think also this idea that we

did have a very slight dovish surprise from jay powell yesterday by taking that 75 basis-point hike off the table it still leaves us with another 100 basis points of hikes almost certainly over the nest couple months he razz let way directs most of the rhetoric toward -- when it comes to the nasdaq all rallies are in a confirmed down trend, just when you thought we priced in the post-pandemic hangover, a lot of these earning reports are not -- so, so treasury yield, nothing says those things aren't compatible, but right now we're testing that rally from yesterday

amazon itself is down 10%. my question is where do you look for leadership >> it sounds kind of like an obvious answer, but yesterday energy was a great upside outperformer it seems like for now, the inflation beneficiaries are? favorite for the overall market to get comfortable that the fed is not too far from its goals and will not have to force a recession. so i think that's where we are a lot of folks feel like it's plausible that we get a soft landing, that it's plausible one of past peak inflation there's some confidence of that. still a trading range markets, but one that spent a lot of time at the lower end than the other.

we are in at somewhat narrow ra range. >> we have, so far, you can't go back to the textbooks and rules of them that say the most violent one-day rallies hat in bearish markets. that's true yes, so far it's not given way on the down side a lot of targets are below 4,000 on the s&p >> mike santoli, thank you let's bring in barclays'

maneesh into the conversation. we spoke last week, that we're tes testing. >> i think the up side is limited here i would say the short term, the risks are still to the down side so there are certain elements which are bullish as you mentioned, that was a gap in how fast it can hike also the claim that the economy was very well bullish so for

those bullish estimates, including the fact that positioning has been very bearish, you look all of them show a lot of bearishness, but if you you dig in more, there's limits of caution. he said he would not deviate from the path. he the second thin i would say is the it's a double-edged sword. this means the fed has to push higher, harder, for them to really change any behavior china's pmis were pretty awful

over the weekend, we caught in hike from the p.o.j. the fact that they're forecasting a potential recession if things continue as they are some clair from the fed, but still risks to the down side >> the questions i keep coming back to. is how should investors be positioned here? >> the moves are so dramatic. >> almost simultaneously with equities, what do you do >> it's a tough call there's almost nowhere to hide the total run was not bad, but very close to what cash delivered for you.

we do have a lot of pain in financials recently but i think they're well positions for a high rate then within the technology sector s if you were to find a play to high, we liked to be selective. we think that story has legs

>> okay. so we'll end on an optimistic note what are some of the factors you would be watching for to know the worst some of the washout we have seen in recent weeks is o over. >> i think you really need inflation to sort of start coming down. we do expect that good spending to revert. if that happens quickly, you could start to see some easing and, of course, leaving aside -- some progress it's unlikely.

but if they were to come out with some strong measures to support the economy, which they have done in very tiny steps, that should put the floor under the markets. >> david >> as we head to break, we'll check out is the biggest laggards of course, the guidance is what has concerned investors. we're back after this.

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take a look at the dow today, reversing yesterday's gains. we're down just about 700 points, or down 2% right now, led lowerly salesforcics nikes and microsoft. one component in the green,

amgen. meantime, cnbc and survey monkey out with an exclusive poll eight in ten small business owners say just 6% say the current state is excellent. sign up at cnbc.com. potential home buyers may have gone watching, and we are in one of priciest housing market

diana olick joins us to explain. >> david, the fed raised its rates, but mortgage rates ticked down a bit on the news it dropped back a little after the presser. analysts reacted, saying even though rates are higher, they may plateau around this level and potential home buyers could be more willing to reenter the market home sales have been falling for the last five months as rates rose of course, we still have a supply issue, which will keep home prices from falling though we are hearing there's far fewer bidding wars than six months ago.

>> we're not out of woods yesterday, not only are mortgage rates way up, but home prices are 34% higher than at the start of the pandemic. that's largely due to fed-induced record low rates for the past two years that has increased the monthly mortgage payment by about $1800 since the start of the pandemic. amazing increase thank you, the sell-off picking up steam, s&p down 2.9%, 4176 the nasdaq leading losses down 4%, the dow down almost 2.5% energy is the only sector in the s&p that is hanging on to, depending on the moment, some gains. we'll be right back. stay with us

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. welcome back to sidewalk on the -- sidewalk on the street. the dow just losing more than 900 points, down about 856 points, barely hanging onto gains for the week kellogg, as the broader market moves heavily to the dunside ceo steve killain joins us post results to discuss the quarter and how they're continuing to battle supply constraints and high cost of inflation shares are up about 4% steve, great to have you back on the show we've been talking about all hour and honestly for days and weeks now, all of these you been certainties from a macro level and how they're impacting companies, whether it's cost increases and commodity prices increasing, whether it's transportation issues or labor issues, or now the situation in ukraine, you're navigating those as well, yet you reaffirmed your full year guidance what gives you confidence to do

that >> i think the history of with a we've been doing gives us confidence the team has been navigating all these incredible challenges that you just outlined, extremely well, and put together new processes, and basically ways of working that can make us more agile than we've ever been we're by no means complacent, but we've been able to meet some elevated dmabd it comes down to two things, the strength of our people, the new processes they've put in place and the fact that we're very, very lucky we've got brands that are so beloved, and consumers are, you know, continuing to gravitate towards them in these very difficult times. >> as we see this earnings season play out, it is really speaking to the shift from stay at home to consumers going out how is that materializing across your brands as well? >> yeah, so we continue to see elevated demand at home, relative to 2019, which we've always expected. and you can see that because more people are still working at home, and having in-home

occasions than they were pre-pandemic however, relative to last year, people are back on the move again. so mobility's increasing, and we've been, you know, targeting that mobility through packaging, through our brands, we're seeing brands like, you know, nutri grain, up over 20%, it's on on the go item. rx bars are solid growth, on the go item. bringles snack stacks, we can barely keep them in production, they're on the go item we're leveraging both, the continued at home occasions but also the new mobility occasions. we've got the brands that meet in a moment very well. we've been targeting that. >> steve, it's david i can remember an interview we did some time ago where you certainly seemed to dispute the notion that inflation would be transitory you've been right. what did you do to prepare the company for that, given you believed it would be here to stay, and what are your thoughts now when it comes to inflation >> yeah, thanks, david i wish i wasn't right, but we

clearly saw inflation, and we still continue to see inflation continuing, we don't really see a dropoff in the future. so when we first saw it coming we prepared ourselves based on the types of packaging that we were going to target, the whole procurement program, our hedging program, you know, we really just accelerated a lot of things that, you know, we saw happening into the future to prepare ourselves. and not only just to prepare ourselves for the inflation, but the availability of supply is incredibly critical. so even if you're willing to pay for it, it's not a certain thing that you're going to get it. and so our supply chain, our procurement teams, have been really working very agile way, in a very proactive way to make sure we can get supply it's around the world. we've got a big business in africa that procures wheat from russia and ukraine that's not available anymore they've been very agile at looking at all four corners of the world where that wheat is going to come from

it's about agility, pre-planning, and not taking anything for granted we do see the inflationary environment continuing, unabated for some time. >> well, given that, i wonder, are you concerned at all that some of your consumers may eventually start to trade down to less premium products, so to speak? >> david, we watch it very, very closely. in our categories private label that has very low penetration and we're seeing really mixed performances on private label throughout our businesses and throughout the world we're not really seeing it growing very much, but we don't take that for granted, either, you know, we watch that gap, we make sure that we're continuing to innovate against our brands that we're advertising against our brands, we're maintaining our relevance for our consumers, so that they don't want to trade down, and, you know, at the heart of all of our pricing, and productivity programs is the consumer, you know, we don't want higher prices, we absolutely don't but we have to obviously protect our margins, so, you know, we watch it very closely. we try and maintain our

affordability as much as possible, because the consumer is under increasing pressure around the world, you know, that's just going to grow. i mean, we see it obviously with household budgets coming under increased strain, and we forecasted that that's going to become more exacerbated as time goes on. >> steve cahillane, ceo of kellogg, thank you for joining us. >> thanks for having me. let's get over to bob bissani as we have a significant selloff. reversing much if not all of yesterday's gains. >> round trip, that's what's going on s&p 500, when powell started the performance at 2:30. 4202 complete round trip and then some 30 points below that for the entire market. apple went from 160 at 2:30 yesterday, to about 166 with close. all the way back down. sew see that, 160. a lot of market looks exactly

like this. more speculative stif cathie wood ark fund was about 48 # or so, 230 yesterday. right back down to where it was, 230 yesterday, roughly $48 why is this happening? well, powell might have taken 75 basis points off the table but inflation didn't go away inflation wasn't taken off the table. energy, a big thing here today, you see energy moved up, the energy stocks moved up yesterday. sold off at the open didn't make sense to me. oil went from 103 to 111 there's your inflation concern right there. and energy is sort of flattish today with the overall market down that's the big issue so what's next for stocks? i think the key point here is sustained inflation, and we keep oil here at 111. 112, 15, 120, is going to be a problem for margins overall, for the stock market multiples have already contracted to reflect the higher interest rates and some of the inflation concerns, now we're going to see concerns about some earnings sitting out there,

david, that's a major question believe it or not, david, earnings estimates for 2022 are higher now than they were in january. that's a little hard to figure out right now, most people believe that the analysts are going to start lowering their numbers finally in the next couple of weeks to reflect the greater uncertainty levels bottom line is, powell might have taken 75 basis points away, but inflation has not gone away in the markets reflecting that today, guys, back to you. >> well, bob, i'll keep you here for a moment if i can. you mentioned the ark innovation, etf, it did become a barometer for the levels of speculation we saw moving up a year ago when it comes to the mechanisms of etfs, should there be any concern on the part of investors? >> no. in fact, etfs have worked tremendously, the argument against it was, well, they might work fine now, but wait until we get volatility, and the underlying stocks will become difficult to trade then the etfs will be a problem.

in fact, the tail is wagging the dog, essentially we've seen bond etfs with underlying bonds that are sometimes less liquid, trading very well in this environment, david. >> it's an important point, of course, given so many bond funds have been absolutely crushed, just like the broader market nasdaq down 20.4% for the year that's going to do it for us on "squawk on the street," "techcheck" starts now good thursday morning, welcome to "techcheck," i'm deirdre bosa, with jon fortt carl has the morning off "techcheck"s, getting slammed, the nasdaq down as much as 4%. e-commerce names, shopify, amazon down more than 6% speaking of earnings, the ceos of both mar mount and expedia, they're ahead this hour, only on "techcheck," jon, it's a big show. >> yeah, dee, that selloff is whether we're going to start, after a brief post-federally