streets. dow futures now indicated off by 170 points again, after a decline of more than 1,000 points yesterday. s&p 500 futures are off by 28 and the nasdaq down by 122 we've got a lot of ground to cover the rest of the day. that does it for us today. right now it's time for "squawk on the street. ♪ good morning welcome to "squawk on the street." i'm carl quintanilla with jim cramer futures are wobbly following the jobs number for april. 428,000 is ahead of estimates. wages is up. we're going to start with the market's wild ride a day after that major sell-off resulting i the dow dropping yesterday's moves erasing the big gains from wednesday's fed-fueled rally

keep in mind the dow and the s&p are higher for the week. s&p, jim, needs 4132 to end what would be a four-week loss. >> well, yesterday i think a couple things happened, one is that there were some people who just got blown out large accounts we have to remember when you see the market continue to go down after 2:00, when you're supposed to try to -- last chance for collateral, that means that there are brokers who are saying, listen, you didn't put more money in, well, we're selling. we're selling everything you own. now, when you're -- when you get that, you're not selling companies that are high-yielding companies that are doing well. you're selling hub spot, you're selling bill you're selling shopify you're selling coinbase. these stocks have come down so much that if you bought them on margin, then you're done yesterday was a done day we used to see a lot of these in 2008, 2009

whoever owned those stocks and borrowed, they're finished they're now off. and i think people have to recognize that there's a big cohort of people who own nothing but those stocks because those were the beat and raise stocks when i look at bill or a hub stop, those are the two principal ones that you have to watch, they reported numbers that before november would send their stocks flying up, but after november, crushed their stocks they're going to be crushed again today with numbers that weren't as bad the losses weren't as bad as expected that no longer works it doesn't work. >> right there are some this morning that are trading relatively well after results. dash is up, block is up, draftkings is up. >> block made money. and gross profit of 1.3 billion -- >> revenue missed, though.

>> revenue missed but they made money. profit of 624 million. that's a real company. doordash, that's a tougher one when you're coming out with numbers that are based on the number of people that you serve, i don't want that. i mean, that's -- that was not what i wanted to see from doordash i don't know whether that stock will be up at the end of the day. it certainly was up 5 when they first reported when they start off by saying we had 400 million total orders, that's old style that's pre-november. that's pre-november. pre-november, that stuff worked. ever since the fed said it was going to tighten, none of these things works so, you know, if you're in that stock and you're doordash, he says, he's doing a good job. terrific i don't own the stock, but he's doing a good job i'm not talking about fubo here

which is a $3 stock. i'm saying there are real -- pe these are all real companies but the amount of money that they're losing makes you worry i had shopify on last night. that is a fabulous company they made a very big acquisition. the second biggest after amazon. but they're not doing well because they're not making money. >> so are you of the mind that when it comes to tech selling, this bofa note this morning looking at the nyse composite, jim, and everyone is looking at the 100 weekly moving average, looking at past recession and crises, it breaks below hard and we're basically there now, getting to that line. >> what you want to do and what worked when it broke in 2007, 2009, was to look for companies that had decent yields, good dividends, that became accidental high yielders

i used to call them ayhs stocks that have come down so much that they have a great yield. you want to look for those for protection you need protection in this market because the ten year is what's calling the tune and it makes a ton of sense to short the ten-year i used to short bonds. it's a very dangerous thing. obviously you owe a coupon between the bank of england and the fed taking off the 75, what they're saying is, we're going to let that ten year or 30 year float. and they can't be anywhere near these levels when you have an unemployment level like this the unemployment number is smoking. people are saying it's less, but, geez, this is the kind of number that jay powell says, why did i say that about the 75? >> yeah, there was a lot of that discussion on wednesday night. why would he -- because of what happened on thursday and -- >> that was jay's -- you know, i've been liking jay that was his first real mistake when it came to this

i know people say, he started too late remember, i'm of the opinion that he was, like, president xi who thought omicron was going to be bad and doesn't want to back down and sticking with the omicron ban. >> we did say average hourly earnings, 0.3, we were looking for 0.4. if cpi ratifies, he could look smart next wednesday. >> he could. but we need a new pool of talent let's take -- there are engineers that are going to be laid off everywhere, because all the companies i've numbers -- you look at a company like facebook or metaverse, they have the pick of the best southeastern engineers who are being laid off everywhere and they are being laid off. they don't need to hire junior engineers. most of the companies i'm talking about, they're not going to be hiring they're going to be firing because they have no access to the capital markets to be able to bring -- to getmore money - as they kept losing because they

thought that's -- people wanted them i used to bring these guys on. you're loosing a ton of money. the market wants us to grow, so we have to lose. no no, now the markets wants them to make money. look at what these companies -- a lot of these companies are -- you know, here's the definition of hub spot. cloud-based marketing and sales platform we have -- including one called s salesforce i looked at bill.com, they digitalized your back office, they're expensive. but they have hundreds of thousands of -- they don't make any money. toast. i mean, yes, terrible name i know the product well. and even though candidly there's -- i got a guy that came in at -- i had to give up. they said, rip that out. rip that out

we'll give it -- you a point of sale system. what's the cost? no, just rip it out. what kind of business is that when they'll -- they don't even want to charge you. >> right. >> what i don't hear you saying is that although it sounds like you're looking for consolidation in cloud and consolidation in fintech, that they won't be the beneficiaries of mna. >> they might be a lot of these companies -- like hub spot after this decline, there's a $15 billion company. now, they -- they -- you know, they were supposed to do 241 consensus next year and they're going to do 242. that's a disaster. everyone wanted them to do 260 what we saw in this market was everybody -- what we saw in this market yesterday is the beginning of the day the moment started in november. so what you want to do, you want to look at where stock was

january 3rd of 2020, well before the pandemic, then you want to look at -- >> why january 3rd >> prepandemic. >> ahead of the march collapse. >> so you take a shopify, which is a really good example it happens to be an unbelievably good company so you take a look at shopify and it was -- it was -- around 400 before the pandemic. then it went to 1,684 in november and now it's back to 400 makes sense. when i talked to finklestien, he says we're back on the trend line whoever lost 1,200 points is not here today they're doing something else i don't know what it is that they're doing. but they're not owning stocks now because they don't have any money left. >> you did talk to harley last night -- >> i love harley.

>> and you talked about being a prepandemic story, then a pandemic story, and what's come since. take a listen. >> i think we were a pandemic story. but we have very much transitioned to a reopening story as retail and commerce rebalances and the proof of that is that our total point of sale grew 80% this past quarter and we continue to gain a market share globally the trust that we built with merchants during the pandemic, we're using that to help them take other solutions and those that came online want to use us for offline as well. >> that sounds good unless you're a bearish consumer. >> yeah, i think that people don't want to do as much e-commerce, but more importantly, what harley's lever to is new companies that need the back office. they're number two correctly, i think they don't want anyone to come between them and amazon they are the -- they are excellent at what they do. they're great at fulfillment

but do i want to own the stock i don't know i'm going -- when it comes down from being a $40 billion company, it's still too big. it's still too big when you get a company -- think about this you're adobe, all right, and you want very much spotify would be great for adobe. but it's a $51 billion company shopify is a crowned jewel of canada they can't do that if that stock were to go to 100 when i owned it from a travel trust, then adobe will call them adobe will call them and say, listen, we'll offer -- we'll offer 30 billion this is very high. this is a $51 billion company. >> yeah, it was number two in some of typical canadian etfs. it's fallen to somewhere in the top 15 still a relatively -- >> when you look at etsy, which did not have good things to say,

and you look at amazon -- >> look at under armour this morning, or even wayfair so come degree. >> i'm glad you mentioned under armour under armour did what jay powell needs to hear, too much inventory, canceling orders. you need to see the housing stocks, those companies saying, we are not building anymore homes right now because rates went too high. that's when jay powell wins. but the fact is, is that when he put no 75, he made it so we're not cooling it fast enough and if we don't cool it fast enough, we're going to have runaway inflation. >> we're going to get half a dozen fed speakers today bullard is late tonight. is he the key, given his reputation >> he's doing it again remember when he did that friday night thing on xm radio.

i got so mad you know what, he's best in show >> bullard >> yeah. >> we'll see what he says at 7:15 >> i might disagree with him he's really smart and jay has to listen to bullard. jay would never have taken the 75 off the table he hurt the cause. >> right we'll talk a lot more about a busyday in fed land. you saw the ten-year, 312 this morning. we'll get further into the jobs ers lo afuer the'a okt tures. don't go away.

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. futures are moving lower this morning after yesterday's sell-off let's get to bob pisani. nasdaq futures down almost 1%, bob. >> and it's kind of -- the market is in a terrible mood we had a good jobs report. if you want to think of -- are you worried about slowing jobs no the numbers were in line with expectations maybe a little bit above are we concerned about inflation? average hourly earnings, 5.5%. so the report itself was fine. it's the market is in a terrible mood take a look at the future. we were at 4126 when the jobs report came out, we went up to 4150 and then we sold right into the modest little rally. sell rallies is sort of the general mantra that we've had. what's the risk to markets right

now? number one is that inflation is going to remain at high levels it doesn't have to keep going up it just has to remain a persistently high levels and then you start getting margin erosion with a lot of companies. that's one concern the other big concern is that the earnings estimates are going to come down you might think, we're already doing that, right? we're reducing the stock market numbers coming down. the earnings estimates aren't really coming down what we're seeing is a multiple compression and that's a different phenomenon just take a look the three things that move stocks are, one, dividends, number two, earnings expectations, are they going up or down, and number three is the multiple what we've been seeing here is a multiple reduction it's what you're willing to pay for a future stream of earnings. it goes down when interest rates go up and when economic outlook deteriorates that's what we've seen so far this year. the dividend is still 1, 1.5%. we're seeing higher numbers for earnings growth this year than we saw on january 1st.

we're expecting 7, 8, 9% earnings growth. that's 2 or 3% higher. earnings numbers are going up and it's the multiple that's going down you put these numbers together, it's down 13 that's about what the s&p 500 is down this year you see how this works, this kind of calculation. the worry here is that earnings may be the next leg to drop because the analysts are behind the curve on this and that's the concern that we've got right now. just for earnings now, we're most of the way through earning season the concept here is peak everything there's been speculation that this summer is going to be peak travel, these numbers are off the charts from the bookings now we're seeing it with peak real estate. zillow today they made it very clear, they had good numbers, by the way, made it clear, higher mortgage rates and very low inventory for sale for homes is going to slow activity down. that's peak real estate. remember, zillow hit $200 in

february 2021, and now it's back to where it was in 2018, 2019, even the middle of 2020. that's a round trip. the other concept, here is something dear to my heart, peak concerts did you see live nation, incredible numbers from them absolutely people are going to concerts and paying anything at all 70 million tickets told in 2020 through april. they sold 98 million in 2019 those are phenomenal numbers concert bookings are up 44%. this is compared to 2019 and we're only through april so far. fan revenue, 30% higher than in 2019 boy, do i know that. carl, because i'm going out and buying tickets i can't believe the prices so i -- this also is peak concert as well. people are eventually going to start pushing back against these high prices. however, i am going to see the who at madison square garden we'll all sit there and wave our canes in the air and we'll try

to light our lighters and our depends will catch fire. oh, no -- we're going to go. we love rock 'n' roll. >> as long as his voice holds up, bob, which has bob pisani -- >> bob is so right look, we used to value companies at -- seven times sales. but it's 141 times earnings. now we've switched, right? we used to look at snowflake and say, you know what, if you look at it times sales, it could be six times the out years. now it's 1,000 times the earnings i mean, we've switched we've looked toward -- we were looking at sales and that was fine if they sold at 7, 8, 9 and now we're looking at earnings when you look at earnings, the stocks are overvalued. they're making money making money when it's at 141

times earnings we can't rationalize it. we're looking for companies that sell below 19 times earnings with good dividends. and those exist. but a lot of them are in the oil patch. oil is making people a lot of money. >> nowhere near where -- that gap is closing a little bit. >> for my travel trust, we want to get to 12. >> 12. does tech have to suffer as a result in terms of a wait? >> there's nobody that makes a lot of -- these guys are the only guys who are making money, where the earnings estimates are going up when you listen to people come on air, which looks like the oil is going to go down. russia is being taken off the market where is the oil coming from the only place you can have it, saudi arabia has a million per day that it could put in, but they're not.

>> the comments this week -- do we have -- >> he's so good, scott. >> by the way, we should mention, nat gas got close to nine this morning. the diesel inventories are disturbing >> one of the large positions we have is coterra. 50% natural gas. take a look at that stock yesterday. it was fabulous. who is going to be the answer to the natural gas problem in europe it's going to be united states i have semper on tonight look at that stock look, you can't -- if you own the company that you've been valuing on sales, hoping that nine times sales is okay, you're going to lose money, so sell that stuff go put your money in some of these solid companies of which

there are many s&p is up. we'll talk more about that after the break. we did get a little bit of relief in futures after the jobs number came in relatively strong and afternoon hourly earnings where light. ofhaba rhte tt ckig now. opening bell in seven minutes.

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the opening bell is brought to you by nuveen, a leader in income, alternatives and responsible investing. let's get to cramer's "mad dash" ahead of the opening bell. >> this is the conundrum that has faced a lot of investors draftkings did much better than i thought. people are looking for a far lower than that. the gap net loss is down big, okay sales at four times sales but losing money how do you value it? do you value it as last-man standing do you value it as a company that is going to be growing so fast that you don't need to worry about the losses so when you speak to him, he'll

tell you, because he is very good, he's got 2 billion in cash he can wait it out he's got the best app. so what do you pay for it? stock is at 15 it's so tough. he's not going to tell you, hey, you know, the bottom is right here what he's going to tell you is he has a enough money to win and so at a certain point, you want to own draftkings i just don't know what the point is and remember, you're starting to talk about companies where they're close, they may make money a couple years for now but no longer -- people don't want that anymore. so, i mean, i think that this is a great example of a company that is fabulously run, that is doing everything right in a market where there's incredible competition, and i don't know whether i want to own that stock or not. >> you haven't made up your mind. >> no. >> they did tweak up their revenue guide, but that's very

little for the year. >> but at the same time if you believe in gambling, i mean i like a company called supergroup but if you believe in gambling, then you should buy draftkings if you think it's going to take every single state and that there's no doubt about it, they're the winner, then you buy draftkings i don't know i don't -- it's a four times sales. remember, i want things that are by earnings. and it's going to lose money in 2024 unless he comes on here and says, you know what, we have put pen to paper instead of thinking we're going to lose $2.25 in 2023, we're going to break even and in 2024 we're going to make money. if he doesn't say that, how do i value it i'm not going to value any company times sales anymore. it's not working. >> part of that would be appearances saying we're going to slow down our hiring, like some of these memos have

indicated. >> mark zuckerberg is smart. he can hire 100 junior engineers or ten senior engineers. he's worried about getting the best talent. there are -- this zillow call, bob was so right bob was so funny on the depends things it comes in a box that has no label on it. but when you look at what bob is talking about with some of these companies, i have no idea -- like, zillow starts the call -- i don't know if you were on the zillow call. they started the call by saying we know people are still eager to move, market conditions are making it difficult. the net result of all of these factors is the total transaction value are softening. wait a second, i thought that the housing market was good?

>> web traffic to the app and the website, down 5 year on year they did add to the buyback. >> they did. jay needs that jay needs to push this over. baby that me-- maybe that means% mortgage rates the 20-year goes higher and then jay cools it they stop building homes the average home is up 25% year over year. that is not -- they should not let that happen. that's just too much for americans. >> by the way, the supply of existing homes near a record low and if you locked in, why would you move and then jeopardize that, right? by the way, there's the opening bell we're back to 4126 at the big board, the american swiss foundation celebrating its 77th anniversary at the nasdaq, celebrating an ipo pepgen

t. >> there's been very few biotech and very few innovations and what you're hoping is that the ones from 2020, 2021 start seeing them being bought by glaxo looking for growth this is not the market for them. it might be the market for the big drug companies -- >> by the way, we'll keep our eye on, for example, j&j on some of these new restrictions out of washington. >> there's an opportunity. j&j aaa balance sheet. they're going to split into three. they had a problem with their vaccine. that's the kind of company that i want to buy today. i want to buy that. >> pristine balance sheet. >> i want to buy j&j let it come in, buy it that's what you buy. that's a great american company that makes things, do stuff, gives you a great dividend and doesn't sell at an unreasonable price. it's not heaard.

you say the chart looks bad. it gives you a bigger yield, so to speak but they're splitting into three companies. the split is going quite well. all three divisions are doing well and that's being brought down by the ten year but that's a bargain >> it's not the worst-performing dow component, because that one would be nike, i assume on the underarmor -- >> the under armour one is devastating. looking for six cent, one cent this is the beginning of the -- we have too much inventory how many retailers are going to say we have too much inventory, now that we know that the -- the e-commerce companies have too much inventory. >> it's not being helped by president xi who doubling down on anyone who resists their covid -- their zero tolerance policy with no sign that it's having any impact. >> none. and then the scientists i speak to say given omicron, you can -- look, remember what happened with omicron i came in here, i tested

negative in the morning. i got a pcr test at 11:00, i tested negative. and at 5:00, i got it. i tested positive. how do you stop that if you're president xi the answer is, you can't just give everybody a vaccine that works and make sure that they stay home for a couple days or even if they give it to people, it's going to be mild. i got my fourth moderna yesterday. it says that i should get it in china, if you go out and you're tested in the morning and you're fine and you go into a factory, you could infect the factory because you can get it in the afternoon they don't tell you that but i got it it was unbelievable that i got it i didn't have it, and then i have it. >> cases in new york city, up 32% in ten days. we're going to watch it -- >> get your vaccine and you might not even know that you're sick >> that said, tesla, according to bloomberg, is going to start looking at adding a double shift

in shanghai. they're making it work with a lot of government support. >> they're amazing if you look at what cathie wood owns, tesla is her company because look at the other companies, she bought a lot of spo shopify yesterday. coinbase she bought roku. that is certainly counter because of streaming she bought some zoom keeps selling the twitter. i don't know, maybe that was a good call. you look at it and say, wow, she got out of zillow. but she got into robinhood she's buying all the companies that i'm saying, i don't know what to do because i don't know how to value them. but she would say, innovation is on sale. but, you know, so are under armour sneakers. >> she also argues we're headed for deflation.

>> she's in deflationary mode. if the fed were to say 75 is on the table, she might win but how long can you say you're headed for deflationary when we're still inflationary and the answer is, until you run out of money as she would say, it's an etf, i don't have to worry. >> i'm glad you mentioned coinbase because coin and microstrategy were down double digits premarket. does bitcoin need to suffer other -- the way others in the covid bubble have? >> we found -- we thought that bitcoin was a great hedge to inflation. it turns out that bitcoin is supernasdaq. now, he's been very right, made a lot of money on this the fact is, it's trading with the nasdaq i don't think you can disagree with the correlation. >> yeah, it's almost one. >> yeah. if you were hiding in it -- if you look at how many -- at what

people are doing at robinhood, how many people are opening -- look at square i mean, square, which, again, had a good number and is a very, very well-run company. they had remarkable numbers of people buying crypto just remarkable. good luck, i guess good luck there. millions of people i don't know a lot of people buying lucid too. adam jones doesn't like that >> yeah, with the -- with a price hike coming in june according to some reports. >> 10 million accounts in block. it's no longer square. adam joe -- he doesn't like lucid. he's saying that there's -- my god, this is so 2000 reservation momentum there you go

this is time it's the -- what's the price -- what's the price to reservation on end and this is when you have to say to yourself, you know what, the world is really very rocky but what does that have to do with the price of earnings ratio of bristol-myers which is up today? and the answer is, nothing >> by the way, s&p now below 4100 so obviously we were -- are below yesterday's intraday low, jim, of 4106. >> it's perilous, but it's early. market is getting very oversold. i think you can buy the companies that are accidental h high-yield high-yielders, those are not a problem. >> would you say a sub 4k print is inevitable? >> yeah. mike would have been wrong had

jay powell said, you know what, the numbers are too hot. we're going to do 100. >> 100 >> yeah, get that out of the way. remember, 1994, i made a lot of money in 1994. and i shorted and when they got up to the high, went long. and that's '94. >> let's get to the jobs number. labor department says job growth accelerated. joining us from the white house, first reaction from the biden administration is labor secretary marty walsh. mr. secretary, good to see you again. >> thank you for having me today. >> good number, 12 months above 400 k. everybody is celebrating that. why did hourly average earnings came in a little bit light any thoughts >> we've seen good job growth

throughout this year -- sorry, good wage growth throughout this year i can't specify on a one-month period why that number dip it shall i think it was 0.2%. overall we're happy with this report clearly we're looking to the future and i don't think that this is -- this kind of momentum won't be able to keep going as far as we're going to go back to some type of normal reporting and normal economy eventually here with the growth gain. but we're seeing it in the manufacturing sector we saw some great growth we were happy about that we saw good growth in retail as well not just the commerce side or the online side, we saw it in the stores so i mean there's a lot of good things in this report. clearly we know there's still much work to be done as we continue to move forward here. >> the other head-scratcher is labor force participation which we were beginning to see signs of momentum. it made sense that labor supply was improving. but we came in there light as well. >> this is the first time since may of last year, we saw that number go down

obviously, i asked for a deeper dive to look at those numbers to see if there are specific regions of this country that we're seeing participation lower than others. clearly in the hospitality area we saw a little less participation that we would have liked, that region is not -- that area is not fully recovered yet. again, when you look at the reports, it's hard to go month by month and really -- i wouldn't say panning be as concerned about it this is a long-term recovery or rebuilding of america. 95% of the prepandemic workforce is back to work. that's a positive sign >> mr. secretary, look, in another time, this would have been an absolutely great set of numbers. i am now in the camp that the working person is beginning to get hurt by inflation pretty badly. i don't know how else to get that inflation down. is there another solution that you have to make it so the

working person doesn't get hurt by inflation. >> i can't disagree with what you said at kitchen tables across america, one of the biggest issues is inflation. it's the cost of gas, it's the cost of food, it's the cost of everything that they have today. we all know i can spin this, we know why it's happened, because of the pandemic, supply chain issues but the president has been laser-focused. he's going to ohio today to talk about creating more opportunities for manufacturing, to do more supply and more building here in america, be more dependent on america. that will help us long term. the short-term issues, we're working -- the fed is work on it the president supports the fed policies one issue that i wish congress would support, the president's slate that is going to be appointed at the federal reserve. we're working on supply chain questions, doing everything we can within our power this is -- and this is not -- you'll talk about this all day today. this isn't just an american issue. this is a global issue with inflation. yes, we're a little higher than

other parts of the country but we're more dependent on foreign imports which we shouldn't be >> mr. secretary, let's take an industry that punches well above its weight the american dream, owning a house. housing prices have gone up 25% year over year and mortgage rates are going up is it not ironic that we actually need to see housing cool off so that americans can afford to buy a house again? and yet to do that, it would require layoffs and slowdown in housing. how do you deal with this really difficult balancing act? >> i think there's another way of bringing housing prices down, that's increasing supply the demand is there and i certainly know that in my former job, one of the things that we had was pressures on people being able to buy a home particularly first time homeowners they weren't able to be priced out of communities in boston, it's happening across the country and as a nation we

haven't made a major investment in housing in a long time and now is the time to think about re-evaluating that and making major investments in housing, not just on government housing, but making the private sector housing and that would take us all to go around the country and look at the zones laws when i was a mayor, we put together a plan to create 69,000 new units of housing that number started at 52,000 and we quickly shattered that number that's a supply-and-demand issue. >> but the big homebuilders would you tell you they're giving it all she got. most of the big homebuilders, they're doing everything they can, but they can't finish the homes because they're selling homes that don't have dishwashers and don't have washing machines because they -- because of supply chain problems >> that's today. that's today the supply chain issues are today. but back three years ago, we were trying -- we didn't have -- there wasn't good housing policy

in this country enough across the country in cities and towns and governments all across the country. and part of that is the federal government issue part of that is also a local issue. when you thought about pre pandemic, the amount of people that were moving into urban america, the numbers were probably the highest in the history of your country -- not since the beginning. but in a long time and that trend still continues today. so we need -- we need to really think about housing policies that work so we can create opportunities for moderate, low- and middle-income housing. those the space that is we need to think about it's not caused by this administration that has been a lack of housing policy for a long time in this country. >> mr. secretary, appreciate it very much, talking both the job market and housing and how the two are related. we'll see you next time. thank you. >> thank you. recession fears continue to mount and rock the market. this is what legendary investor lee cooperman had to say yesterday on overtime.

>> i don't think we'll have a recession in 2022, but we could have a recession in 2023 and the recession is typically proceeded by bear markets and you're seeing a lot of the market now, homebuilders and the banks acting very poorly so i think it's a time for caution. my 68% exposure is recognizing that i'm basically a taxable investor i don't go in and out. i try to protect my basis. >> reminds us of what bofa have told us about this morning average decline in bear markets, 37 average duration, almost 300 days. >> you have to read the great peter lynch who says, look, in those times, you can't run out you don't know when these things are going to end you have to just ride through. he performed better than everybody when he ran the magellan fund. i'm not telling people i -- i did a very long club talk yesterday where i said the get out now crowd, that's wrong.

the reposition to companies that are going to make it through this period, but buying them slowly, is right he said you're buying into a bear market. i think lee is looking for companies that have a good yield, that can pay that yield, that are a good balance sheet and doing well and that's imperative. and that's what peter lynch would do there's a great interview. he's done so much charity work at bc where he went. he said, look, you have to ride through. but ride through with some cash and don't get your head blown off. don't buy the companies that i've been saying -- look, i went to walgreens yesterday i don't remind the stock, walgreens, to get my vaccine i had gone to cvs before and cvs was so built for this that i felt like to buy other stuff when i was at cvs. and cvs has aetna. cvs is a very good stock here. it was a bad stock until covid but you want to look for things

like you want to look for companies we've all heard of. >> would you throw cigna in there? >> cigna had a great quarter that's a great business. when you're about to have a slowdown, that's a great business you still have to pay them a lot of money when you get your -- when you get your vaccine, they ask for your health care requirement it looks like a bargain for you. remember, it's not a bargain they make a lot of money. >> you think about cigna and things people need versus a wayfair today, jim down almost 13. >> see, i have no -- what's the raise on debt for wayfair? i mean, you know, that was a great stock when you were stuck at home. but they're supposed to lose $5 this year. $2.65 next year. they sell at -- i don't know how do you -- what's a company worth? if someone could tell me i remember before the pandemic, they were restructuring, they

were very worried and then wayfair is a way for people to buy furniture if you're staying at home. and now it's done. we've bought all of the things we need. >> peloton is one last story they're looking for a minority investor, maybe take a 15, 20% stake. >> it's not where you want to be i think you want to be in kimberly-clark >> peloton down 12 $15 as a new all-time low. >> what do you do with a zoom? you let cathie wood buy it you don't buy it the investing club, you can always sign up and find out more at cnbc.com/jointheclub. not just about the daily updates, but these meetings he has, pretty incredible use the qr code if you need to. we want to check the bond report the ten-year did get to 3.12

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dow heat map still has some components in the green, but they are some of the usual suspects procter, mcdoncdonald, merck we're just about 15 points above that we'll get stop trading with jim in a moment. wealth plan across your full financial picture. a plan with tax-smart investing strategies designed to help you keep more of what you earn. this is the planning effect.

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can pay that dividend, well managed, and an accidental high yielder. that's what i want i don't want to give up. that's a really bad thing to get out now. you have to reposition and getting out of the stocks that are selling. >> we know may is going into a weaker season, but we've done well out of last fed meetings. >> i think semistocks are very bad, but i don't think it's bad here, provided you're buy company that are making stuff, doing things, the old days. >> you think that the tone of the market changes earnings frequency will fall off the cliff next week. >> no, and we'll be able to go back and look. i think you do need to be sure you've got some used

dupont, 2% yield, but the stock was at 84, now it's at 64. they changed the company, made it much more secular, less cyclical another four points. at 60, buy it. i've got one you buy right now, sempra,'s dicey on materials, but they have the answer for rare materials for gm. they have a great deal, and sanjay talking about who is on the hot seat, the semiconductors have been or rend out. micron sells at seven times earnings just be aware, you do need some yield. as we are approaching the intraday lows of the year here. >> i want to wish everyone good luck and happy mother's day. >> see you tonight at 6:00 p.m. >> thank you.

a lot more on the sell-off and how you should navigate the volatility, when we return ? or is it a feeling? a freedom, to live our lives the way we intended. through the ups. the downs. all of it. this is financial security. from long term care planning, to annuities and life insurance, lincoln helps you plan, protect, and retire. this is lincoln financial.

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good friday morning. welcome to another hour of "squawk on the street. i'm here with morgan brennan david faber has the morning off. no relief for the bulls. we're down another 450 on the dow, awfully close to intraday lows of the year we're a few points ahead on this friday, morgan. >> we're giving up the gains we had seen for this morning. here are three big movers. we're going to start with zillow group, citing an uncertain real estate environment that stock is down 11% right now, down something like 70.over the last 12 months another name, virgin galactic, after the company said delayed launch of the commercial flight service until the first quarter of 2023. they had expected to launch the end of this year citing labor and supply chain

issues it's down 12% right now, down more than 80%. finally doordash posting a larger than expected quarterly loss, but revenue coming in above estimates. stock's still until pressure nonetheless, do not miss tony xu next how on "techcheck," with you, carl. meanwhile, morgan, the u.s. added more than 400,000 jobs in april, the 12th straight month of gains like that tease liesman has more on the numbers. >> the job didn't pass the new test, providing relief for the concern about inflation. here's the headline, up 428 one of the few we've been close on the estimates, so maybe that's a good sign, revised down

the prior two months before 39,000, unemployment rate not meeting expectations there's the big concern, down 0.2, there was a slight exit averages hour earning was not bad. it was below expectations, over at bmo, they're saying policymaker will take some modest comfort, but it knows that labor demand is far too strong and market conditions too tight to be consistent with pride stability. here's where the jobs were, provided wide we have the nurses and doctors coming back to work. that's a good sign, manufacturing is strong. there's transportation and warehousing, as we start to revive the transportation network in this country. retail is up as well

the fed and the markets, going to have to wait a bit longer for any real sign that the employment situation is easing more people joining the workforce and wages do not threaten greater inflation a lot of jobs, guys, but not a lot in the way of inflation belief back to you all. >> six fed officials are expected to speak today. we're seeing the incredible volatility we have the strong employment gains, is this a strong for concern for the feds, or is it a sort of relief as it continues to tighten >> i think right now the fed would give a lot for a larger participation rate and lower wage gains i don't think you're going to get there with the big job openings tolar out there the jolts report we got for job openings, and all the a note you

grout is saying there may be some weakening in the job market i'm going to let that sit for a while before i make a big deal out of it. so we want to see if there's a concern about some weakness, some softening it would be great if we could get down to a 200,000 level, and then the fed -- the markets i think could relax and you're not going to get this wage push and inflation. >> steve liesman, thank you. where account investors find opportunities? let's bring in scott kronert and john stolfis

scott,i'll start with you we'r currently -- do you stick with that target? it's been not only a whiplash week, but an incredibly tough start to the year. >> it's a fair point i would say our 4700 target implies some degree of soft landing in the underlying nick circumstance we know we have fed tightening ahead. we were looking for four 50 base-point moves we've got gotten one in addition to march, so it's still premature to say how that would impact underlying economic conditions earnings growth has lee main strong, so i think what is critical is you do get the fed moving back toward a night rule policy benchmark if we can get there with some

slowdown in earnings, but, again, soft landing type earnings, i think there's a path forward to the up side from here we've been most focused in navigating this volatility by playing themes such as quality, those companies that have some built-in inflation resistance, if you will, with strong balance sheets, answer strong profitability characteristics as well what i would point out here, what we're looking at, in our work, anyway, is a recession scenario, mild recession scenario, which in our view would take us down to, say, 3650, if we look at the risk to the upside soft landing end of the year target, the market is betwixt and between, and the more we go, we think it sets up for some relief as the year unfolds. >> first, john, i want to get

your take on the market action you have seen, especially given the fact it's not just stocks selling off steeply, but bonds too. >> good morning, morgan. this reminds us a lot of 2009, when you're coming out of a major uncertainty as well, and that gives a good opportunity for the bulls and the bears to stave off against each other in our case we were bullish in '09 and wildly quoted as so. you know, when we look back on it, we have to require the market declined something like 25% in the first quarter hit a nasty bottom on march 9, and then proceeded to rise 60% to the end of the year, leading at the end of the year, the s&p was up 23% for the full year we're not going to suggest that history will repeat itself, but

right now we're in a position where both in the bond market and the stock market, there's a lot of voices saying what have you done for me lately and what are yougoing to do with today, tomorrow or the next day. this is a three steps forward, four steps back, five steps forward, three steps back kind of environment you're looking for progress, now perfection the fed is doing its job it pivoted in the fourth quarter, very much like it pivoted in the fourth quarter in 2018 on the mickor image of what's going on. we think effectively you want to stay positive here and avoid projecting overly any tiff negative. >> that was certainly powell's points on wednesday. you mentioned 2 1/2 to get inflation back to target clar claret is talking like 3 1/2, and how much does the market need to hear from the bull lars

hawks tonight about whether the hardwood is getting chopped. >> the discussion is an evolving one. i would say 2%, 2.5% is where we've been thinking about it there's been discussion you need to get closer to 3 to sort of slay this issue. i think our view from an equity perch has been that, as we went into this year, we were completely expecting to see gradual supply-chain improvement, when combined with some demand destruction, would do some of the fed's job for us. we haven't seen some of varies obvious issues, in terms of extended supply chain impacts. so i think what's happening is that the timelines being pushed out, but the basic thesis hasn't

changed that much to this point. >> where can investor it is find opportunities, potentially make some money what should they be avoiding >> we have found good places in the grumpier value and garpier growth, in essence, companies that have good cash flow, a good idea, are deeply embedded in the lives of both business and the consumers, and have cash flow to support a dividend when it comes to value, those companies that are indeed investing in technology to make themselves a much better consideration for investors, and improve their business via investing in growth technology to become more efficient right now we have seen relative outperformance of that barbell, growthier and garpier growth

since the start of the year. >> more information for our viewers, john and scott, thank you for kicking off the hour with us. as morgan said, it's been a wild few days. kristina partsinevelos has more on some of the outsize moves we have seen. >> it's about the viciousness of the selling that has investors talks. yesterday was the worst one-day plunge since june of 2020. today we are headed for the fifth straight weekly decline which could be the longest losing streak since 2012 amazon laos roughly $300 billion in market cap since last

thursday microsoft and apple basically flat on the week alphabet meta up, lu lu element beening descaler, data dog, keep in mind as they continue to trade at higher multiples, with the ten-year treasuries, they names get hit. they also don't pay much in the way of dividends the big question is, can they companies may more money than they did in the past 12 months there are bright spots array up 31%, and then some of these chip companies, too. super micro, western digital, along with novavax, roku,

they're all headed higher on the week so it looks like at the moment we're at more of a stock picker's market, but the nasdaq extending its losses let's bring in wedbush joe colina to talk about the week we've had and the weeks to come. a lot has been made of relative strength in cloud, or at least enterprise demand. i wonder if you think that's at risk now, if asset values and budgets get a harder look going into the second half good morning thanks for having me on. i think one theme of earning season has corporate cloud demand has been robust so i think cloud demand is not going away we'll still see shifting to the cloud in the years ahead, but

clearly you want to stick to a more valued names in that basket i was looking at my screen yesterday, and snowflake was probably the most inbound that i got from my clients. there were three stocks that were trading north of 40 times sales -- snowflake, cloudflare, and look at them today there's just no appetite for these stocks still trading at elevated valuations just kind of amazing how quickly, you know, sentiment has shifted since the powell and fed took a different path in late q4. >> right is there a good explanation why inflows have been so strong relative to the price action

>> with cathie 'arkk, sheen generated a lot of alpha from her earlier days, and benefited mostly from covid and the policy that followed. i looked at the headline yesterday, arguably the scariest thing i saw all week, maybe all year, they saw the most inflows of the year back on wednesday before she crashed with another 9% yesterday i don't know if there's some funky hedging involved in that, but when she speaks, money tends to pump into her portfolio right after. i think it's her performance speaks for itself. she's lagging the nasdaq, and there's clearly an utter lack of risk strategy and process to the types of names she's investing in again, there's no appetite for pretty much every name on her

radar, maybe other than tesla. >> joe, given the fact we've seen this 18 0-degree reversal, you have the ten-year trading above 3%, new recent highs as of this morning you see yields continue to move higher is there anything that changes that reversal we have seen in sentiment? are there actual specific names that are going to be able to weather higher names, no matter what, that they should just buy into right now >> in terms of where the ten-year will go here, we need to see more signs -- we need to see evidence of peak inflation hopefully we can enter some disinflationary phase, but right now i think powell did a good job on wednesday, but i think the market is telling you

there's still a lot of uncertainty out there, and trying to thread a needle where the consumer is slowing. like, you know, on the e-commerce specifically. within tech, i think look back a decade we know that value has massively underperformed on a multiyear basis, and i still think that's a good place to be on the near term we'll probably see more mean reversion, going back to 212, whatever that may be ibm, but it's been working, oracle, cisco. i think you want to be defensive. hopefully we get a pop into the cpi next week, but i think you don't overthink it or not be too cute. we had a discussion with jim, how the use cass -- does it need to correct the way we've had seen other covid bubble names correct? >> it's funny, i think i read

that last night, or had it in my note it feels like every other popular part of the market has popped, whether it's e-commerce, streaming, video games, et cetera, where bit counsel was around $10,000 in march of 2020. so there's room to the down side we know there's a lot of retail taking it on the chin in other investments. you look at the chart. buy the diplomat and the crowd has been in hibernation. you continue to see rallies sold in these assets further out on the risk curve if you do get a real kind of liquidation in the crypto side of things. eye pretty bearish on the crypto and these other high-flying tech stocks

>> joel, appreciate it always good to see you. >> thanks for having me on take care. it hack a volatile week. more than 100 billion wiped off the crypto market. we'll take a closer look, in the meantime, another check on the market, trading lower right now, averaging now all on track for a lower we'll. we've seen fresh 2022 intraday lows hit as well the s&p currently down 0.8%, 41.12 is the level there the down also 270 points stay with us you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria.

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obviously a tough 24 hours for bit count. continues now to move lower, down 20% hi, kate good morning, digital currencies are at the -- bitcoin is now flat this morning. it will rallying, and lower just an hour ago, it has been trading like an exaggerated version of the nasdaq still tightly tied to some of the high-growth names. it's not showing up so far as an

inflation hedge or at least a short-term safe haven this week. the world's largest cryptocurrency had fallen back, stuck at the 36,000 level, and we seeing it log po 40,000, and analysts talking about 30,000. a lot of traders tend to look at the futures market there's a boom in open interest, that was almost completely wiped out just a day later, as traders closed out their positions more people are looking for downside protection, not necessarily selling, but looking for shorts some of that action in futures markets could show peep looking to hedge a bit, and they call it a, quote, ominous sign for broader risk assets. take a look at ether, xrp,

solana, they have been trading lower in sympathy, and not only are they hit be weaker prices, there's a bigger pictures of investors moving out of the unprofitable tech companies. block as well is seen as a crypto proxy, but didn't get a lot of earnings, and then the cryptomining stocks, they use high-powered computers to create new bitcoin, those are also selling off. kate rooney, thank you dom chu is looking at energy. >>. >> how about for the year? it's far and away the betts performing sector, and only green one on a year-to-date

basis, though. wt tism crude and brent crew futures both -- still up on the day. the curious one last quarter natural gas. we are down right now, but earlier this morning, just a few hours ago hit the highest level in 14 years. the energy sector spdr is up on the day right now. take a look, though at the natural gas trade overall. it's one to watch. if you see the way that chart shapes up, again, we are just off the 14-year highs. for natural gas, that's a key level that traders will be looking to see if they can be taken out again. the etfs attract some of the big sector moves there check out what's happening with the stopper that tracks energy, oil and gas exploration, xop is

up 40%, and the invesco qqqq, and then one other place to look is right now, oil prize versus alternative energy and solar stocks in times past, when oil prices have surged, interest and investments into alternative energy have gone along with it, because if oil prices are so high, it makes it attractive for look for our sources not the case this time around. t.a.n. is down 12% over this year to date the u.s. oil fund is up 83%. that move may be triggered more by fear of interest rates, because the solar strokes, they're not as attractive when interest rates go higher, it may by a difference this time

around carl, back over to you dom, thank you. don't miss our exclusive with goldman's chief economist jan hatzus stocks are trying to erase a fair amount of their losses. kashkari is on the tape with the medium post, saying if supply chains improve, maybe we only need to take policy back to neutral, which in his view remains 2% remember, to get even for the week, yoneu ed 4132. we're back in a minute ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it!

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here's your cnbc news update the assault by russian-backed separatist on mariupol is

intensifies. there's speculation that vladimir putin wants a complete takeover of the port city on time for victory day, its celebration day for the defeat of nazi germany. there are efforts to try to rescue residents who are still hiding in the plant. severe weather moved through alabama last night a dollar family store mare hit by a tornado more storms are possible stretching from alabama to virginia officials at ohio state university are warning students about what they're calling fake adderral pills that contain fentanyl the alert comes after the death of one student and the hospitalization of two others. those officials aren't explicitly saying that the fentanyl is responsible. well off the lowing -- on

the heels of this medium post from neel kashkari he says he's confident that the fed will do what it needs to do to bring inflation down to 2%. bob pisani has more. bob? >> it's calmed things down a bit. about a third of the dow is in the green. we've rallied about 50 points. in times past that would be a crazy rally, but definitely off the lows, multiple compression is still going on. if the look at the test, the cathie wood ark fund, people keeping taking the multiples down, higher rates, slower economy, and that's continues to go on. consumer discretionary, again,

issues around slowing economy. that's been a group that's had a hard time. oil 108, 109, 110, still doing pretty well, a lot of new highs this week. consumer discretion, i just want to show you, disappointing numbers, besides etsy, underarmour had dispoint china exportius, that's been weighing on nike and the dow virtually all week a disastrous day in megacap. apple is flattish. some of the big names like amb is also holding on amazon had a horrible week if up to look for the star, an unlikely group the companies you call they will low volatility/high dividend, there's actually as etf for this is these companies have generally

shined this year as people look for defensive stuff that still pays a decent dividend this was an obscure corner of the investment world these kinds of stocks have done well since then. you heard carl mention it earlier. 4263 was a 52-week low we're not there yet. we've had a nice down, but that was an issue about an hour ago the two things i keep emphasizing, number one, inflation at persistently high levels that's not going away with anything that mr. powell said this week, and concerns about earnings reductions. i've been mentioning, this is a multiple compression it's gone down from about 20 to 21 to about 18, now the next leg down could be earnings production that's what we're looking for in the next couple weeks, carl,

back to you. >> thank you, bob. joining us on set this morning for the first time since 2020, very early 2020, chief economister jan hatzus what a pleasure you have to you back. >> it's so wonderful to be back in person here thanks for having me >> we're thrilled. great to see you on the jobs number, your forecast was not that far off. the curiosity of nfpr and wages, what do we think today >> i think it was a mixed report the payroll number was somewhat stronger than we had expected, but maybe the more important developments are unemployment rate is stable, the ratio is a bit lower, the u-6 rate is a bit higher, so i think there's some evidence that the labor market

is stabilizing and the wage nuismers have decelerated. we're nowrunning at 4% or a bi less that's still higher than what is ultimately consistent with 2% inflation. i think itunder scores that the fed definitely has a significant amount of work to do, but we're. >> the up tick in claims got attention this week, and powell was asked about the ratio. he didn't say there was a target, but you think directionally it's moving in an area they would like to see? >> vacancies are still extremely high we got another print earlier this week that showed another increase there are 5.5 million more vacancies than unemployed workers. it still shows this is a very,

very tight labor market. i think also underscore the fed still has work to do, but i think the signal we got from powell i think are consistent with the data. 509 base-point moves over the next couple meetings, very little considering to 75 basis points i think that's highly unlikely, and the slowing rate of increases. i think we are making a bid of headway. >> the wage piece of the puzzle here, it isstill growing, but it's still not keeping pace with the rate of inflation. whereas the markets are so focused on the idea of peak inflation, is the real question peak consumer? >> you're right. i think income broadly, real income of consumers is very weak in 2022, and high headline

inflation well above the rate of wage growth is one reason for that, and the end to all these one-off payments from the government in 2021 is another reason so we do think, you know, real income this year will be down sharply. now, there's also a very substantial amount of pent-up savings, so you can't completely extrapolate one for one the decline of income to weaker consumer spending, but i do think consumer spending will only grow slowly in 2022 >> just to go back to the fed and the path that's been laid out over the coming months, there's been chatter about whether the idea whether powell should have taken 75 basis points off the table, since perhaps there are signs we haven't seen the worst of inflation yet. how do you see that? >> i think it's quite reasonable

to take 75 basis points off the table. he can keep doing 50s, if necessary. if the fomc keeps going 50 basis points every six weeks that gets you to much higher fund rates before too long. i think it's reasonable to expect that after that you switch down to 25s, but if inflation surprises on the up side, you can keep doing 50s i think that's, you know, a pretty significant tightening if that were to over kurt >> cpi next week, i think the street is at 0.2, which would be the lowser over the year >> we haven't finalized that, but i do think that sequentially inflation is slowing on we're now comparing with these very large increases that we

have in the second quarter of last year, and, you know, i also would say if you look at the last couple prints, statistical measures of the underlying trend, you know, we have seen some moderation. i think we're still above the levels -- well above the levels, but we're not quite as sky high as we were a few months ago. so early days, but moving i think in the right direction. >> finally, powell was also asked about the impact of lower equity values on the consumer. very started to look at that, as to what spending might do just because of what the stock market has done >> i think the stock market is likely to be, you know, a small drag on consumer spending growth the big drats is from our income fac

factors equities are held quite predominantly by the top end of the income distribute butte, whereas for the broad group of households, it's really more about income, but i think it pushes in the same direction the broader point is that the fed's goal is to tighten financial conditions to a degree that slows the economy to a trend or probably low trend growth rate in order to create some loom, and thereby bring the economy to a soft landing. as powell said, it's going to be challenging. it's a difficult situation to be in, but that's what they'll be aiming for. >> got to get lucky. that's what they keep saying it relies on a bit of luck as well thanks for coming in always good to see you, especially in person.

after the break, ceo of draftkings, that name is down about something like 70% over the last 12 months, but first a look at the base laggards of the nasdaq 100 for the year, a led lower by netflix we'll be right back. stay witush alright, so...cordless headphones, you can watch movies 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,

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welcome back to "squawk on the street." draftkings down about 70% over the past 12 months, beating estimates this morning on earnings results despite inflation, that which does not -- does not seem to have any impact on consumer demand, also raising full-year revenue guidance at the midpoint joining us jason robbins. great deal to have you back on the show. >> thanks for having me back. >> walk me through the warp,

especially given the fact this has been a driving headline for the results, the fact you aren't seeing any inflationary pressures on customer demand, continues to show signs of growth across key metrics right now. >> that's right, we have not seen any impact. our quarter-over-quarter numbser look great our cohorts are incredibly healthy. we saw a number of cost efficiencies, and there's several efforts underway, which allowed you to beat top and bottom line the past quarter >> a good guidance doesn't factor in a launch in canada, or the golden nugget purchase that closed last night as well. >> as we noted on the earnings call, 'em with a new launch,

with that investment, we'll still be better where we guided to, and obviously we'll have significant acceleration on the top line from both of those things i think golden nugget will add a ton of synergy, ontario will obviously contribute meaningful contribution profit. >> now, i know in the states where sports betting is already alive as well, it's been very competitive, very promotional. we have a number of states here in the u.s. set to roll out this type of option as well walk me through the competitive landscape and what that means in terms of marketing and in terms of investment for draftkings >> well, it's really rationalized quite a bit we have seen a dramatically different competitive environment, and that a lot of what we deem to be -- or media

purchasing is not happening at much we sort of stuck to the same playbook, two to three-year paths to profit 5b89 in states, but what we're seeing, through some efficiency opportunities, identify it as well a rationalizing, we may have an opportunity to pull both of those things in. as well as faster path to profitability we launched, largely do to a much quicker developing and higher use of the -- higher adoption for the population of the states we have launched recently. >> speaking of new stays, jason, do you think it's going to push states who have held out toward maybe taking another look at legalization, or is that at the state level, is that too hard a needle to move right now >> i think it certainly adds, to the attractiveness, which states

are in search of new revenues, and they don't want to raise taxes on their citizens. they have companies voluntarily willing to pay taxes to help raise those revenues that i think is an attractive value proposition, but certainly more so in one where states are not flush with cash as they have been the last year or two. i think there's a number of factors that affect what happens in every state, but in an overall macro level, i think that will help gain more momentum. >> last time you were on with us past in february, you were asked the question about it's a wild market right now and more of a reflection of the market, not the company's performance. given the fact that the stock is till down, and i wonder what you think it will take for investors to buy into this strategy that

you're laying out? >> well, i think for us it's less about what it's going to take for them to buy in, and developing a more consistent track record for delivers on the things we said he would do. delivering on what we said we were going to do market cycles make certain types of sectors go in and out of favor, but over the long run the companies that get the best multiples and do the best are the ones that deliver on what they say they'll deliver on. that's what we're focused on at our investor day last march we promised 2.1 billion in ebidta we continue to march towards that goal. we've repeatedly said we're well capitalized and inflationary pressures are having no impact smart investors will catch on, and really we can only control what we do, which is to deliver strong execution, generate great results and run a great company and deliver on the promises we

make. >> jason robins of draft kings, thanks for joining us this morning. >> thank you. take a look at markets here, continuing to try to unwind some of the early losses, now down, dow is now down less than 200 points on the heels of this median post spike. cashkari saying if supply constraints unwind quickly, might need to take policy to go to neutral or modestly above it. a quick programming note, this weekend nbc news presents "inspiring america," the 2022 inspiration list, featuring interviews and stories of people who make a difference and lead by example one of those people is oscar winner rita moreno >> was he at that point, or as you reflect on your life, was he the love of your life? >> oh, he was the lust of my life. >> marlon brando was the lust of your life. >> my husband was the love of my life marlon was the lust of my life and that part of it was exceptional.

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welcome back to "squawk on the street." checking in on the nasdaq composite, only down about half a percent after dipping below 12,000 earlier in the session to a fresh interday low, the lowest we had seen since late 2020. we're extending losses from yesterday's selloff in general, and a tumultuous time for tech joining us now to discuss, co-founder and former nasdaq chairman and ceo, bob grifeld. great to have you back on the show i want to get your take in terms of what we've seen with this dramatic selloff where tech is concerned. >> sure, well, one, thanks for having me, morgan. i appreciate the opportunity really this is a come plex question two ways, fed raising interest rates that commonly cited as a reason why tech valuations are going down when you consider discounted cash flows over time. so i have the great opportunity

to be involved with, on a board of a number of different fintech companies in that universe i have to say this the raising of the interest rates have had zero, and i mean zero impact on product development, product innovation. it just doesn't matter if you're trying to build the next great widget, the fact tha the rates went up a half a point doesn't matter at all. that's not a valid impact on valuation. but the other side of the story when you think about technology companies, right, you have to start with the base metric is what is the earnings, what is the cash flow? the young tech company says that's not good enough for us because we're growing very fast, we have these investments, one final chart, you need to look at the business this way. what's important to note that is a valid way of looking at the businesses and it's important to note most times those stories have great validity to them, and

tech has grown dramatically over the year now with this raising interest rate environment, we are not in story time anymore, we're in show time. so i think we'll be in show time for a period of time, and that clearly will have an impact on tech valuations. >> so just looking at the public markets, then, we'll start there. do you see this as a shift back to fundamentals? and if so, what does that mean for the more speculative tech names that have gone public in the last year or two, that might not even -- not only be unprofitable, but prerevenue, and have fol fallen so much already? >> yeah, so that's a story they're telling, and those stories are going to be difficult to receive by investors. and when you look back at the dotcom era, the bursting of the bubble, and it stayed that way until 2004 then nasdaq 2003, with zero ipos in 2004 google came public, and that really changed the

narrative. but it took four years for a company of the quality of google to change the narrative to list into a company that had high growth aspirations, and certainly they deliver over time. >> to go back to the point you made about fintech, we've obviously seen the ipo pipeline largely dry up this year i know boush and lomb is expected to begin trading today, the second big ipo since we saw tpg go public in mid-january which speaks to how quiet that activity has become. is there any incentive right now for these private companies, particularly in fintech, or tech in general, to go public or does it just make sense for them to sit on their hands and wait given the fact interest rates aren't necessarily having a big impact on their product development? >> tying them all together, if i'm google, and i have the google business model, i can go public at any time, investors will see that, see that's real but clearly, for a regular

company, the burden of showing me is higher today than has been in the last five years so the you're an ipo where you have a story that has some holes in it, that's not public, that's not perfect, then it's going to be difficult time to go public after i say it's a full and fair evaluation in this period of time when you see the markets change, they generally change by having really the perfect candidate to google come forward that changes the narrative, changes the viewpoint, changes the way people have the mood about things bausch and lomb to go public, that's ha high burden for them to carry and it's not a normal one a company can. as i'm saying, we're in a show many period of time, stories will be listened to, but they're going to be risk adjusted, certainly a lot more dramatically than they have been over the last five years. >> bob, nangs for joining us today. the & s&p is moving back

towards the flat line. going down fractionally. turning positive again on the week the nasdaq 100 flitting between gains and losses that's going to do it for us on "squawk on the street. have a very happy mother's day to all the mothers out there "techcheck" starts now good friday morning, welcome to "techcheck," i'm carl quintanilla, with deirdre bosa and jon fortt. the nasdaq is trying to recover losses this morning after falling more than 5% on thursday as you know, now down about quarter of a percent the ndx wrestling with going green. tech stocks and valuations have had lots of volatility, mike santoli will start us off with perspective as we try to hold gains for the week on the s&p. >> yeah, carl, a little bit of pressure being taken off yields coming in a little bit but there'