cnbc we are live from the nasdaq site in i'm rebecca quick along with joe kernen and andrew ross sorkin. s&p is down by 61. nasdaq down by 233 if you are looking at percentage drops, the nasdaq tech is leading the way. the dow down by 1.2% s&p futures off 1.5% the nasdaq down 1.8% that is after the major indexes ended the week with modest declines for the week. dow industrials down by 9.5% s&p down by 13.5%. nasdaq down by 22%

there's a modest decline for the week last week, but the declines the friday before. you add this up and you are talking about pressure that is nothing with the treasury market. yields are rising significantly. 10-year yield is 3.193%. you are talking about mortgage rates at the highest we have seen in 18 years the 30-year at 3.294 t then cryptocurrency. it plunged over the weekend. down again this morning. bitcoin is down 3% below $34,000. $33,455. pressure across all of the coins. you are talking about significant declines these markets never close. that was painful over the weekend. >> 50% down on bitcoin from the highs. >> if you are talking about the

new money, that is in at $47,000. anyone who got in late, lately >> katie stockton said 27,500. >> the selling is the fact of bitcoin or ethereum is so leveraged up on other things in the market or leveraged up on bitcoin and had to get out to cover things the opposite way? what is happening here >> i think there is selling taking place people have been blaming the retail investor for a long time. maybe the retail investor lost interest if you have big hedge funds that were all in the same trade and all leveraged and all had to sell stop blaming retail. talk about the supposed smart money blowing things up. >> you see quality names go down when crappy ones go down

you have to get money somewhere to cover. >> sell the winners to payoff the losers >> it makes for a dicey market we're in right now across the board. >> if you are talking about total positions for the s&p 500, you are long if you are talking about leveraged positions, you are net short. leveraged shorts when the s&p 500 breaks down. that is probably what was happening at the end of last week >> is it breaking news on the weekend, you have time. after a two-year run, the tech sector is feeling a post pandemic hangover. the top thing. a summary. let's talk about this. is that what it is it's what we do. let's talk about this. this is happening. i'm glad they noticed. technology is definitely pulling

back after -- and who knew it would be a boone it seemed to be bad for everyone the markets sold off and we got scared what was the gdp for one quarter? jobs and unemployment. who knew all the people staying home and these things would happen even our parent company. broadband. everybody got broadband during the pandemic no one needs it? >> you pulled a lot of growth forward. people who bought all these things and got the broadband and computers. you pulled forward. >> across the board. >> i was out at the mall this weekend. there's no sign of recession in sight. crowds i waited 35 minutes in line to pay. 55 people in front of me and

four cash registers. the other flip side is they can't find workers i was in omaha for five days they never cleaned my room once. they said they would not bring food out or open the restaurant. same thing four cash registers open on saturday >> i bet your room was still okay >> not really. it looked like a tornado went through. >> really? >> i did have a lot of time. long days up there >> maybe it is me. my room would be okay. i just don't like things out of place. >> you are ocd >> tornado hotel room is always a tornado >> it wasn't -- >> becky, because we both stayed at the same hotel, there was an option i didn't do it >> after three days, you had the option after three days if you figured out how to reserve it.

>> someone has it tto come in >> it would be embarrassing after three days let's talk about uber. people making reservations to get an uber. they may have to pay more. that may be what is underneath this the ceo telling employees that the company will cut back on spending and focus on a leaner business this is according to the email obtained he spent several days meeting investors in new york and boston after the earnings report. it was clear that the market is experiencing what he is calling a seismic shift. he says uber needs toreact accordingly. he wrote the average employee at uber is barely over 30 you spent your career in a long and impressive bull run. the next period will be different and require a different approach to address that, he is saying uber would slash on marketing and incentives and treat hiring

as a privilege uber is the latest to warn of a l slowdown in hiring facebook last week announced a lowdown in hiring. robinhood is cutting its work force. it suggests that free cash flow is going to be the name of the game i think profits will be the name of the game. this goes to how much will you pay when you get in the car. it is interesting to addressable market grow, grow, grow, grow to maybe not. maybe the market doesn't matter as long as you make money doing it in your own little corner of the universe. >> profits matter again. this is the refocus of wall street across the board. i think you can say that about anything with the companies we just talked about. any of the companies that did well during the pandemic show me the money. >> what does the medallion go

for? >> $1 million? >> there are plenty of times when we goiare going to d.c i say let's take a cab >> $80,000 >> it's not coming back. >> i don't know if this is acc accurate >> there was one point where i remember the cover of "the new york post. $1 million. >> $100,000 in 2020. >> the demise of the taxi is greatly exaggerated? >> oh, no. >> it's not. okay not prsurprisingly, i have not moved into the new paradigm. either my wife or son has to call me an uber.

>> not call you an uber. book you an uber >> i don't think it is on here here is draft kings. >> you have evolved. you can do it if you want. >> exactly i'm in a losing streak i don't want to talk about that. stupid on this "squawk planner. planning their week. several data points on the way we will get the latest read on inflation on wednesday the latest consumer price index. jobless claims and producer price index on thursday. we have the latest read on import/export on friday. this weeks earnings, we hear from palantir and sofi the big report is on wednesday that's when we hear from disney. with the varied and sundry businesses you can draw conclusions with other companies with what happened to disney and all of

the other stuff. a lot happening in florida as we know >> the consumer. this will give us a good read on the consumer and what is happening with the parks and media and streaming side. when we come back, gasoline prices soaring over the last two weeks. one thing that is up we will dig into the big moves in the energy sector next. huge line up we will talk tech with alexis ohanian and we will talk to neel kashkari and then then thomas peterffy >> announcer: this cnbc program is sponsored by truist securities this is lisa. she's a posh virtual receptionist.

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get unbeatable business solutions from the most innovative company. get a great deal on this limited time price with internet and voice for just $49.99 a month for 24 months with a 2-year price guarantee. call today. the price of the gallon of gas surging the last two weeks rising by 14 cents the national average is $4.30 a gallon the price of diesel is soaring that is the real shocker when you are at the pumps up $2.41 from last year. let's get a check of crude prices $107.60. down 2%. still above $107 joining us now to talk about it is amrita sen. amrita, this is something where

we are still seeing lockdowns in china and prices are picking up. is this indicative of us of the lockdowns are not going to last or indicative that the global demand is so strong anyway >> i don't think it is indicative of what is going on in china the biggest thing we have seen from china is the change in refining and export policy which took place last year china has included refining in the energy reduction target for 2025 that's why they are limiting the amount of products they are exporting which is why the market tightened up. what you have seen in the west, we have closed 3 million barrels a day of refining capacity in the atlantic basin mostly in korea and australia as well then it is meant we are, although demand is above 2019 levels, regardless of what is going on in china, it is a strong demand in the rest of the

world. global refining is 3 million barrels a day lower than 2019. that is causing the tension. this is not going to go away any time soon. china's policy, although they have capacity, would change anytime soon to give markets the products it requires sdp >> what does it mean for consumer notice united states? i always think of us as independent having our refineries here. if the global prices go up, will they go up here? >> although the u.s. has refining capacity, the price of brent crude and product markets work on trade. if there is a shortage in one part of the world, there will be from different parts of the world to address that. even in the u.s., we have seen refinery closures. you should look at the base that came out and talked about shutting the refinery in 2023.

we have record high refinery margins. that is talking about shutting down capacity. that is telling. it is doing so because running a refinery doesn't jive with the mandates that is the real problem demand is very strong, but individual companies have different targets and refining tends to be negative when it comes to esg that is the real struggle. we are going to be in for real shortages in refinery. right now, maintenance that is why product prices are so high. seasonally prices should come up a bit. ultimately, we are constrained and will be more constrained forward forward if they remain shut >> the esg mandates are still driving this i'm shocked by that. the biden administration has taken a hard turn and realized that is not the best thing to do when you are trying to fight higher prices for consumers.

who is driving the esg mandate at had this point? >> absolutely. there are contradictory signals from the market and shareholders even governments in the short run, you are right. governments need to support oil and gas. they are also talking about 2035 and renewables and not just u.s. europe refining a 15 to 20-year horizon. it needs the investment to work on the payback period. that is the challenge. as an industry, we are very, very poor at predicting demand we under estimate demand it keeps coming up stronger. that's where the issue comes in. when you are forecasting and government agencies say you won't need oil in 20 years time. it is difficult to justify that in inve investment shareholder pressure is still there. >> amrita, you may not be the right person to ask about

gasoline prices. 14 zecents in the last two week. that's not necessarily dependent on crude one of these days, it will get warm not this weekend not last weekend there will be a summer driving season i think with planes as crowded as they are, isn't driving and covid still around, isn't driving pretty did >> yeah. >> where could gas prices go by july, let's say, amrita? they could set new records, i would think. >> they absolutely will wand i'l tell you why the problem with the shortage of refining capacity, the tighter of the two markets is diesel right now, diesel prices are still higher than gasoline refiners are prioritizing making more diesel.

gasoline prices need to go up further to incentivize refiners to make more gasoline. that's the problem we've been saying this for a while. this year is a fight for refinery yields between gasoline and diesel and jet let's not forget jet planes are crowded i'm in singapore right now the flight over was completely packed you are seeing that travel is starting to pick up. you have seen prices high as well >> the draw -- people in my family the draw of the open road is back i hear how romantic it is. do you not remember last time or what a two-day drive i checked ihg. holiday inn and stuckey's and flying j's it will be an unbelievable drive. people want to get out now i'm considering another 1,400 miles. >> it is not a terrible drive. >> it is fun >> fun with the family

forced time together >> you forget about the incredible leg cramps. >> you have other drivers. >> i have cruise control i don't share other drivers. >> that's your own dumb fault. dummy. amrita, i saw the saudis cut the price of oil for asia. they are cutting it for asia but to the other places? why? >> they have cut it across the world. not just asia. this is the monthly price. it is a very formula price every month it goes up and down depending on the regions we had oil prices come up pretty much everywhere. depending which region it is supplying, the prices came off it is following that formula there is nothing more to that. last month, they increased it to more than what they should have based on the formula it is because oil prices have come up.

they adjusted the selling prices that's all it is >> okay. amrita, thank you for walking us through this it is good to see you. >> thank you andrew >> okay. let's talk about the box office when we come back because it was a huge weekend at the box office talk about people getting out and about. we'll show you how much the latest marvel movie brought in we will talk about it next don't miss the fed psintrede ne neelkashkari he will talk about where the economy is headed. >> announcer: this cnbc program is sponsored by ibm. ibm. let's create transacti against thousands of compliance controls with the help of ai. now you're making smarter decisions faster. operating costs are lower. and everyone

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the summer blockbuster season is off and running. the latest from disney's marvel winning the box office "dr. strange love" in the multiversus of madness debuted at $185 million. the global total to $450 million, joe have you been to a movie theater? >> no, but my wife and son go all the time they come in the city and he is a big film buff. he sees every oscar contender. they have been going -- i have not, but i was going to ask if you saw "power of the dog. this guy is talented benedict he goes from that to "power of

the dog" to this the totally different roles. i think that's what an actor should do. take different roles. >> i love him as dr. strange i didn't see this one yet. he's very good >> he was cool in "power of the dog. he was a bad guy you haven't seen that yet, sorkin >> i have to add it to my list >> do you remember what wanda sikes said about it? >> falling asleep. >> she said i've seen it three times and i'm still only halfway through. >> i have a list of things i'm powering -- "tehran" is back on >> that was awesome. there are only two episodes out. i didn't want to watch the second one i wanted to save it. every friday

>> we are always talking about anything on netflix. "anatomy of a scandal. >> i didn't like it. no i started to watch it. no for some reason, we didn't like it >> how many episodes >> we didn't get through the first one. the very end of it i stopped watching "succession." it was too weird up in the high-rise at the window stocks up for a big decline at the open chris verrone joins us next. may is asian american pacific islander month here is one of our cnbc contributors. >> my advice to the community is don't be afraid to stick out

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good morning welcome back to "squawk box. we're live from the nasdaq market site in times square. here we go again look at the futures. dow is now indicated down 480 points s&p off 70. nasdaq down 265. the dow we mentioned first because the points are the biggest. that is significant. down 1.5%. nasdaq is the biggest on the percentage basis it is indicated down 2% this

morning. that comes after thesteep losses we saw over the last six or seven trading sessions. if you were watching the treasury market. people are not believing jay powell you can see the ten-year yield at 3.189%. mortgages now at 18-year highs crypto collapsed over the weekend. it is continuing the downward trade this morning down to $33,162. you are talking bitcoin potentially breaking below $33,000 at this point. again, these are big moves these markets are open all weekend. you did see all of the cryptocurrency down signif significantly. that continues this morning. joe. thanks join uing us to look at the chas and where the markets s are heading is chris verrone

chris, let's start with whether you see any signs of any type of capitulation or stabilization or making a short-term or in inter intermediate-term bottom do you see any metric that tells you we are getting close or are we in free fall? >> joe, i think it is too early to make that call. this is a market that is probably borderline oversold in a down trend, that is not enough you need legitimate signs of capit capitulation i want to see vix above 40 i want the stocks making lows of 50%. we have not seen those conditions yet it reinforces the idea that in weak trends, the bar has to be higher to make an oversold call. i'm not convinced we're at that point yet. >> everything you are describing

would take a lot more down side to cause people to get that way. i'm trying -- would it have to be a quick, sharp, significant decline? would it be an alteration? what worries me is if it happens over a period of a month or two in drips and we never get there in terms of sentiment. >> i think when with you look at the survey data, it reflects stress which strikes me as the street running long s&p futures. when we juxtapose positioning versus words, words are bearish. when you look at this over the course of the spring and summer, our gut says you get capitulation it will take time. you can bounce here and there. let's not forget a lot of resistance on top of the market.

4,300 on the s&p 340 on the qqq that is very formidable. in the market or in the down trend, resistance matters more than support support cannot be relied on. it is resistance >> that is interesting what markets should we be watching in terms of what is correlated the ten-year yield is something we are watching closely. suddenly there is a whole asset class called crypto which did not exist in previous bear markets in 1987 or the '90s. that is correlated is everything subject to the same sentiment >> jo, e, when you look at rate closer to 3. dollar up. oil up rates up that is not the best environment for risk i go back to the speculative

assets have returned to where they were pre-covid. we have seen it with the ark stocks and the faang bitcoin would have to go there as well. s&p would have to go there as well ultimately that is where this is he headed 3500 on the s&p. that brings you back to the pre-covid ramp levels. you talk about rates one thing that is notable here if you go back to the and alog 1994 stocks were sideways all year. it took the fed doing 75 basis points in the fourth quarter in '94. i think the chairman removing 75 points, the bond market is laughing it will have to come back on the table to arrest the bear market bonds. >> the pendulum swings that we

deal with. i don't know what this negative pendulum swing ends. now we delve into fundamentals you look at the easy money and where the fed was for the last five years or eight years. however long central bankers flooded the system with money. we did get pretty frothy in hindsight with nfts or art or collectibles or cryptocurrency or technology. that sentiment got bullish the ark. c cathie wood is on tv what does that mean for the pendulum swing the other way you have to have something pretty ugly. >> i think when you look at this and what we have called the qe era. the last 13 years.

anytime a market got down 15% to 20%, there was one call to make. buy them all that is what is different about this we will not have the liquidity response on the other side at a minimum, there is enough damage done to the asset classes and stocks and important groups where it will take time and time and time to repair this. you know, when you are talking about stocks like google and facebook and jpmorgan chase and amazon in bear markets or returning all of the gains post covid covid, it takes time to fix that november is midterm election it would be early for the market to bottom in the election year august or september is when you get the midterm bottom i think we have time in front of us i'm not convinced we have seen the capitulation higher dollar and oil continues.

we need sentiment to get more flush. >> chris, you said bear market the nasdaq in a bear market. the other averages are not do you think this this is a turn is this a cyclical bear market or instead of a bear market inside of a cyclical bull? >> i think this is a cyclical bear market. those are dirty words. not easy to say. we are used to the last 10 or 13 years down 20 and the next move is up. i don't think it has to be structurally fatal we are working through something here i look at 40% or 50% stocks down 20% in the s&p, if we don't call that a bear market, i don't know what else to call that at the end of the day, there is time to repair this. even if we are too pessimistic here which i think we have to repair the damage done in the last six months. >> nfts.

ark. i forgot the meme stocks you have two kinds of apes ame apes and bored apes. think of the stuff going on in the last couple years. the reddit trade >> meme stocks are down. >> from the highs -- >> i think is important about that, joe, when you lose the speculative corner of talk abouk even once the lows are in, the stocks don't come back in as leadership it took seven or ten years before tech returned as leadership in 2010 or 2012 even if the lows are in on this stuff, don't expect it to return as leadership here. >> you mean, i get don't expect the speculative stocks to come back as leadership

you are talking about amazon, microsoft, alphabet, meta. you don't think those come back as leadership? >> i don't when you look at the one shark that we have been showing in our work the qqq relative to the equally weighted s&p the top of the market versus the average stock. that's been topping here for 18 months think about all of the different macro regimes. rates up rates down curves steeper curve flatter. qqq continues to peak versus the average stock. i like the average issue and continuing to be skeptical of the top of the market here >> we have you and katie stockton on at the same time to see if we can get you to the almost complete depression thanks, chris. >> thanks, joe

>> thanks. >> keep an eye on the markets. dow implied down 523 points. pressure is increasing when we come back, ceo is soaring with the gap of executives and the workers widens we will bring you new pay data. and don't miss our inter viw with minneapolis fed president neel kashkari. i'm so glad we did this. i'm so glad we did this. i'm so... ...glad we did this. [kid plays drums] life is for living. let's partner for all of it. i'm so glad we did this. edward jones

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isn't far in the future. we're building it... now. ge. building a world that works. welcome back to "squawk box. the wealth gap between ceos and the workers continuing let's go to leslie >> reporter: good morning, andrew ceo pay is soaring while worker pay is growing vast majority between worker pay and ceo pay is a problem that is according to the survey

in 2022, the average ceo to median worker pay is 225 to 1. average ceo pay jumped 31% in the last three years while median worker pay gained 11% according to just capital survey, 87% believe this is a problem. 70% believe there should be a cap. industries with the highest pay gaps include restaurant and leisure and health care and internet many frontline workers from the pandemic those with the lowest pay gaps are banks. the pay is too high and spans all affiliations in the survey and spans democrats and republicans and independents saying ceos are overpaid for solutions? 85% say one way to reduce this

is by raising the minimum wage guys >> leslie, how much is this data based on shares that were effectively given as compensation over last two years that we saw rise does this reflect where the market is today? that is not to say there is not a massive gap. i imagine that gap has come down >> reporter: absolutely. a relationship with the market performs and what ceos get paid. a larger basis for ceo c compensation is stocks as shares rise, they get paid more this is on the employee side of things, a lot of temporary employees were re-hired during the pandemic when that happened, their wages were lower than they were previously if they had been employed the whole time. that is according to equal

you have the two issues helping to stretch the wage gap. it will be interesting to see what happens next year as we do see more of a volatile market. next year meaning 2022 when we get the annual meetings and see the ceo compensation >> leslie picker, thank you. a lot more coming up we will talk about stocks as they are poised for another selloff this morning you are looking at red on the screen dow off 560 points nasdaq down 317 points we will talk about potential buying opportunities amid all of the red on your screen right now, look at the biggest pre-market decliners in the s&p 500 and the dow. what if you were a global energy company? with operations in scotland, technologists in india, and customers all on different systems. you need to pull it together. so you call in ibm and red hat to create an open hybrid cloud plat

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welcome back take a look at futures looks like we'll be opening in the red this monday morning. dow off, nasdaq down as well >> let's zero in on some stock picks or get some hints on what to avoid joining us now is sylvia we've got to look at the issues of the morning dow issues down another 550. the nasdaq, decline of another 318 points this is big concerning issues for people who have lived through the volatility we've seen through the next couple of weeks.

what would you tell them >> i would tell them not to look at their accounts today. if we look back in history, this has happened about 20 times in the past eight decades or so where we've seen a bear market times like this do pose opportunities. it is time to look for companies that grow in cash environments if you are investing in the market, you would take those

losses there are buying opportunities and facts out there. that is calming advice you like some of those big tech. why? i think some of these big tech names made me cry. like a cross section of future we need that to advance whether that is in web or cyber security all of these are massive investments companies are making and they think they'll payoff

over time. i don't think they'll be shopping at amazon and losing in the cloud. passing on at the consumer when some of these things shake out and i don't think they will. i think tech has been hit the hardest. it is one of the sectors that pops first and gives that draw down there painting back to another time we want to understand like getting out there. you see consumers are spending it is impossible to get a flight and hotel room the consumer is really flush other opportunities and places you might buy right now. >> i heard your story about the mall and waiting in line

i had similar experiences just waiting for flights. pent um demand is still at prepandemic high so putting up liquidity in the market corporate securities are wrong having some strong consumer. travel and open consumer discretionary. >> thank you common voice will be a concern and the futures are watching.

>> coming up, we'll talk to reddit aetnd g to the post and retail training. "squawk box" is coming right back

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welcome back to "squawk box" here on cnbc take a look at the futures we are in the red this morning nasdaq looking like it would fall over 300 points and would open down about 78 points. uber to slash spending and is now deliberating about adding new workers saying the ride hailing and food delivery company needs to become a leaner

company with a seismic shift of investor profits and the idea of growing and in the market. meantime, starbucks is denying charges of unfair labor practices at stores in buffalo, new york a number of claims of retaliations against pro union employees. they are saying those allegations are false in the

meantime. joining us now is dan ives of wedbush security. guys, we've heard a couple of different views already this morning. hearing a second bear market and someone else said, no, this is a situation where it is a great buying opportunity i know you are saying people should be buying these things. do you have conviction on all of these now? >> you look at enterprise. cloud, microsoft when we stress test our model, we are buyers here we are going to be the haves and

have notes of tech you want to be playing advertising software we were bullish and hand holding. it is just fearful of an environment going back to 08 and 09 from the names in our playbook >> we just talked to uber. they are saying, look, things are going to be different. there is not going to be a situation of seeing those losses you look at shopifies and they are making money >> that's just it. you look at names like microsoft

and palo alto and apple across the board. you cannot just sit here and say tech is done i think you have to separate it. a lot of people are yelling fire in the crowd theater these are names that step out in the brutal market. >> would you with conviction be able to say, yes, i'd like to jump in and buy here >> with the midsingle digit earning and was somewhere close to 38,000. if i was thinking of 15% for the year this has come to be what i

expected given that macro environment. given the balance sheet and the eating inflation that is a long way of saying, yes, we are getting to the inflation point. i think what i want to lookfor are companies tethered to enterprise updating because they are doing things and these are the companies that give us not just the top line but sustainable double digit these are companies at quite lean multiples right now >> look what is. >> you look at visa and master card of the world, these put up

20%, 30% i turned positive on them expecting travel and entertainment spending to step up the consumer i do worry about in the back year but all of those that did travel in that condition will get a way through. >> that's a little different from what we heard from sylvia consumers have so much money would you not buy some of those names? >> depends on the time line. i expect we'll see something less than the 8% cpi

that will generate once we get in our aggression and the back half and draw down the spending, i i worry about the duration driving up and becoming more expensive driving those to go up >> talking about the fed a lot of that is driven by jay powell's comments. the market is driven one way by his comments and the other way what would you like to hear from

him that is the variable here across prices and tack we are seeing pieces throughout the year% i think that's the varible not as many people are talking about. that continues to be in tech and is stripping supply by 28% that is the biggest dynamic. >> let me add to that. supply chain, yes. i talked to a restaurant owner who said he's never seen anything like this he had 15 people that were supposed to show up for training and 10 don't show up or call >> for tech companies, hiring engineers right now is almost an mma battle to get tech engineers. that continues to be an issue. >> weigh in on that.

we are hearing from companies saying we are not going to be paying as much or will step back when you do that on a tight labor market, you risk losing some competitors >> yes, there will be some places where employers just don't have a choice. we saw 11.6% inflation as long as we have 7 million more job offerings and people looking for work we have to remember, wage inflation is as a big a supplier they will start to abate someone if inflation is going to stay high >> thank you both. coming up, a look at the

energy market. natural gas rising again this morning. regular gas up 14 cents this week we talked about that so jeff did have some interesting thoughts check out the shares as long as no one has seen you do it. adjusting earningst. a a02 share. "squawk box" will be right back.

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find rewards like these and so many more in the xfinity app. oil also adding to the concerns although down a little bit you can see 107. joining us now from goldman sach we always try to get some insight this is no one year.

let's talk about gas not just natural from those levels in an earlier discussion about how that could hurt the supply where are those prices headed in july in your view? china has been locked down the last three or four weeks part of this rally is that china is slowly but surely coming out

of lockdowns let's not for get the hit. you are still at $107 a barrel right now you have to ask what happens when you come out of lockdowns by the time we are in july, we'll see the full extent of it. >> planes are fum.

>> let's not for get the back drop the still higher savings credit and wages are going higher also looks much greater. those numbers you are talking about are also greater the capacity to produce these also curtails. think about this you have those really high margins and are shut down for maintenance. their pull on crude supplies is

going to be significant all of the system used to produce fuel as you are pointing out. the other thing i think of people love trucks the f150 and how many vehicles are out of the suv people are going to get sticker shock when they pull in with their suv and it will be $100 to fill the tank. people will see that

and this will ripple through the basis points look at natural gas here at $9 let's look at food at 750 a bushel corn if it is normal, you end up with eight plus and you can go well above 10 the supply of food coming out of russia and the black sea has curtailed significant off the ukraine/russia situation the food territory is tight. and the metal story is a function of rebound of chinese

opportunity. it is not rebounded to oil and gasoline it is the entire commodity complex. >> this all seems a little concerning the labor piece today about nurses that need 15% more money given what they've provided us with during the pandemic i'm sure they deserve that this really is feeling like a wage price spiral we've seen in the past not just the minute the supply chain eases interest rates could double, couldn't they? >> there is too much that could resolve itself these are under investments in

capacity to produce many of these goods. i'd like to point out this is not a long term solution and moving these long term amounts of money if anything, money continues to leave the sector our free cash flow yields 70%. the bottom line. if you want to solve the situation on this basis, you've got to put money to work >> a whole tool they have. it may have nothing to do with inflation but must be structural based on what it supplied.

>>. >> you may have five years of major cap x. think about 80 to 81 all of that came on line then. >> so there could be a good out look online. this might not be the case >> making that investment at a much higher cost because interest rates will be higher. >> think about it. we haven't even started the cap x. once you start spending, you get inflationary costs once it starts to go up, it creates inflation within the sector next year will be the first big boom

you get the inflation that comes out of those which then pushes you higher and you need more capitol. >> last week, saying if you are trying to increase supply and destroying demand, you are making it more difficult to be productive about what needs to be done to address the problems. >> i think it goes to this point. this is not the 1970s all over again. you can't look at the 70s and say this is the same or look at the solutions and say this will fix it >> higher rates might not work at this time >> that's the problem. good week to spend money that's the answer here investment >> thank you okay coming up, billions in art

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welcome back sharp decline in cryptocurrencies will that impact the art market. art sales holding up strong. a picaso that went for $22 million. the most expensive piece expected to go the 1964 andy warhol portrait of marlin other versions are owned by

hedgefunders and collector peter brandt this one being sold by a swiss art dealing family the proceeds going to family also selling a rothko. and a big picaso expected to bring in $60 million we just have never seen a market like this where you've got prices so high in the art market and so much accumulated wealth uncharted territory. >> how anxious are people. given the nft market, where they

are not related at all imagine you tried buy one of these. sotherby started to pull that market. >> great question, there was a time when people thought nft owners would create new owners. those have just tanked these warhols and picasos. it only takes two billionaires who would want these there is so many parts of the art market, nfts one of them

that became so leveraged and speculative. again under these masterpieces prices got crazy, so they are going to come down looking forward to see you tomorrow with the results of this auction becky. still to come, reddit cofounder joining us to talk technology, crypto and much more >> at 8:00 a.m., catch neel with >> at 8:00 a.m., catch neel with usgame plan... you go. no, you go! and call audibles... double our investment in omaha! omaha! omaha! omaha! or you could use workday. omaha. the finance, hr and planning system used by over half of the fortune 500. for a be-agile-like-an-mvp world.

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check it out the yield on the two-year note we've seen the push significantly higher in the last couple of weeks. let's bring in mike, director of fixed income at research advisors the question is can things go much higher or get worse

we all know where inflation is economic growth is solid 3% makes a lot of sense to us. >> you don't believe him or you think it will be a lot more 50s that can get to that point >> whether or not they do 75 is more relative. the ultimate rate they'll have to hike to and the rate they need to get to is significantly higher than the rate market as

well as what the fed expects. >> you look at the amount of variable rate mortgage how much long-term debt would go the fed would have to hike significantly higher we are going to 75 or 50 this will be a cycle where economy will handle it we are seeing a much higher rate too. >> what is broken here is something the fed can't fix. it is supply chain and a lack of investment people can't keep up with demand. for the fed, there is a strong way to do this is there any way to destroy this >> they've real lir not done

this like in the past. i think we are going to have a very difficult time. you are right. almost laughable they'll be able to do so keeping unemployment at record levels. to me, it suggests they don't fully appreciate the gravity of the problem here that is going to be a long slot. in order to bring down doe mand and come down enough to hike inflation. seems like that doesn't happen this year you are going to have to tilt things higher. that will not only be a 2022 issue. it may only be a 2023 issue. they are back enough

>> we know the economy is not a market if they are going to bring the economy down what does that do for the market there? >> that's a good point that profit cycle and economic cycle. profits peek on q 4. dp growth is up on 2023 and 2024. so much of what is driven in equity those long durations in play looking at tech, private equity, crypto long duration assets globally not just the fed but globally unwinding. everything works on a driven low growth environment is likely to

be the opposite of what works going forward. we have the market we think there could be trouble ahead. as far as the overall broader market, i think that's a longer term discussion that might be tied with the economy. >> that is the number one issue with clients is what do we do with fixed income. what do you tell them? do you buy these here or look at corporate bonds? >> that's a good question. we are in a 40-year bull market leading up to 2020 maybe the over/under is getting

control of inflation going forward. you could be much longer in bear market which makes things much harder you have to be creative and use all of the tools at your disposal in order to make money and do what a fixed income is meant to do. look at argentinian corporate debt there are places to get return in fixed income. fed risk has done really well on the year you've seen a little widening. you have to be tactical here >> you like high yield here keeping place with inflation >> short maturity high yield has

a pretty good yield about 7.5% or so. it has no default, little default risk at the momt the fall should hang around 0% in the last 6 to12 months as well what concerns me is what we are seeing any volity will widen spread with less volatility if you were to get that, those

are quite strong the i bond has zero risk >> that's what i was going to say. that doesn't help you if you are doing 5,000 a year >> another amount if you use your tax return. maybe they could lift the level of that. >> thank you still to come, an interview you can't afford to miss, minnesota fed president will be with us. and you can play the cnbc fantasy stock draft challenge. get $100,000 virtual bucks trade into w and play for free we are right back after this i love it when work actually works! i just booked this parking spot... this desk... and this conference room!

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welcome back to "squawk box. we haven't gone down past 500. we'll be watching the pre-market session. down maybe 200, 300. there are some of the dow

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>> welcome back to squauchl. futures in particular. there are a bunch. looking at 5%. join us now for the latest on tech investing and social media reddit and 776 cofounder let's start with what's happening here how do you see this?

do you see this shake out at the family office right now? >> i am very grateful to be doing early stage investment in these days you can argue that tougher times help found amazing companies in that regard, it is business as usual it is clear multiples have done pretty high nothing about this shows technology will be a bigger and bigger part fundamentals of software will do i still believe in business cycles and this there is a very

long and bright future ahead especially when p it comesto technology marking down the public market on the later stage, it is a good little dose of sobriety you can talk about how unprecedented it has been.

we've been encouraged to really cash in and get profitable i don't spend a lot of time when i go in and spent a lot of time. do i think there is an opportunity to get deals for sure the north star for me is 10 yoorz out providing infrastructure and economic activity and software technology >> where are you on crypto we are just watching it fall the average person got it in they are now net losers. >> i've been in crypto now over

ten years. i seated coin base in 2012 i've been a long-term hodeller i've seen a lot of opportunity i think i'm a little more numb to it. it is these times, i'm more excited to be in these companies. it weeds out the speculators those building the next generation companies that are doing really well. you hate seeing all of this red

that is a volatile asset >> those founders we have to cut back we have heard from uber and heard metawill be quick to hire. when you are doing that in a really tight labor market do you riskfalling behind these have been a high thing.

we saw things get super inflated those folks looking for ways where they'll start an opportunity in this best time because it gives folks a chance to seize an opportunity they may not have taken otherwise on that aspect, that will work a long time. are they going to spend on everything else? >> this is a hot take. most of us in tech are not thinking of folks who are going to companies like that

the folks are really hungry and motivated tend to be distracted. looking for other things flex work home issues i don't think we'll go back to a world where people are forced to be in an office. that's not what the best people want and it dictates i do think a lot of trends will dictate here >> as social media afficianado

i don't know if you saw the supposedly leaked details for twitter. he thinks twitter could reach 928 million and quinn tuple to $900 million at that time. what do you think? >> i've said here before running a company like twitter a community-built platform very different than one that deals with the laws of physics moving away from membership and revenue could he do it a lot of people have lost a lot

of money betting against elon and i'm not interested in taking that bet >> you are in new york making a different bet tonight. tell us why you are here. >> the robinhood foundation is an amazing group i am from new york, born here. child care has been a big issue. i just invested in a chord blood bank investing in the 776 corporation. i want this to be my legacy. we'll have a lot of fun tonight and i hope do a lot of good for

new yorkers. >> thank you for a lot of us and all the work you are bringing. >> sure thing. we'll head to break with a big check. down 500 to 437. nasdaq significantly weaker. down 287 we'll be right back.

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good morning welcome back to "squawk box" on cnbc u.s. equity futures under some big pressure we've come off the worst levels

of the morning indicating down 430 points nasdaq down 285. s&p futures comes behind all of the volatility we've seen. treasury yields continue to decline. 3.289% putting a lot of pressure in places for mortgage prices. then there are cryptocurrencies with crypto falling below 34,000 looking like it could fall below 33,000 bitcoin at 33,067. and fed president's saying policy has tightened a lot is it enough neel joins us right now.

has it tightened enough. we don't have the ability to fix supply we can only bring demand down the question is how much will we do ourselves getting our fed back i'm not confident of how much we'll burden >> you realize you can't fix those situations in your mind, is that a situation that does not get

fixed. still continuing to give demand. maximum employment and stable prices >> what is your base case they would have shorted them out. on top of that, the invasion in ukraine, the lockdown. all of that bad news and the way

it applies working to rectify the supply chain. meanwhile, the american people are paying prices that are much too high that does not absolve. >> saying, look, the only thing that can fix this with what the government is saying and what they've hampered out if we don't have a massive employment and bringing about the natural resources, this is not a problem that can be fixed. the reason from those years of

cap ex spending. what do you think about when you look at energy prices and the concerns there >> on friday, the minneapolis and the dallas fed are cohosting i conference to really drive at the questions you are raising. i'm sensitive to that. the famous quote that the best cure for high prices is high prices i think the longer prices will stay high the more confident seeing these high prices even if they are higher prices

themselves. >> dovish too long and you support five or six rate hikes. >> what you are saying now, the fed will miss on. >> trying to understand those things and the way the energy sector was created that has not hit fairly for energy prices. they wanted to put in a lot of spending for build back better then there was the fed for qe

buying so much paper and price discovery how do you think the fed missed so badly? >> the supply of workers and labor has not recovered as fast as i thought it would. >> there is still trillions on the balance sheet not spent down yet. how is all of this being funded? this to me was a lot more

sustained. these balance sheets were sent back down. >> i said there's a possibility that it has been pushed to a higher level and we'll have even more work to do to bring it back down where we are not perfect. we are never going to be perfect. >> i wish they were. if the data comes back better than we'd expect over those months, the monetary policy added back in the spring

of2020 >> you want capital deployed to ease it is a difficult and blunt tool. >> you sure you want to do this? >> those terms are still very, very low i do think it is more a lack of confidence where energy will step in and also the regulatory environment. >> the fed has a dual mandate.

also focusing on the market. worrying about a series of other things the economy. >> is it fair to assume focused on the inflation piece is it fair to say you are not paying as much attention. >> an slutsly. i never focus on the stock market as a goal >> ultimate lirks our duel mandate we are surprised i took that view because we were

undershooting on both sides. we want to keep it strong ideally, those two things will be at 2% you don't focus too much on the market but you do focus on the price impact and the wealth affect or lack of the wealth affect. given some of the other markets and assets the wealth has.

>> that's a good question. the wealth affect is part of that many of them are much stronger balance sheets than before the pandemic pushing us into the higher consumption. so, yes, stock prices have come down household balance sheets continue to be so strong some

things are just starting to soften just a hair. >> how did you want them to come down for example >> i'm not looking to drive prices home. >> that seems very, very robust. with the opportunity to soften

some what as we return back to a more normal type of economy. those are a number of things we are looking at seeing things softening to get to a more sustained environment. you can say the problem with housing as prices grow that's why you see these where you added to the balance sheet where somebody will borrow

those. their costs will go up anyway. we don't know whats that going to look like >> you can see it. you are right. just over the course of this year 30-year mortgage rates have climbed. by that measure because of what people were saying with credibility and price adjustments and those rates i'm confident we should start to see a softer housing market and why inflation is so problematic. it is lower income americans most punished by policy prices

affecting those as well. if we have to do so much with those recessions and putting it at risk. we know letting inflation stay at these very high levels, it is not good for anybody it is really hard to step in what can the fed do if anything to get back into the job market. what do you think the fed can do if anything on that?

>> looking at the market prior to the market year after year. that is still true i still think there are people working on the sidelines it becomes easier for families in general the other thing we are seeing profoundly is a reshuffling of workers and people moving away from the toughest jobs. you see people don't want to work any longer in long-haul trucking that is difficult because people don't want to be away from their

family for a week. or child care. that is tough work for very low wages. if walmart is paying $15 or more an hour, people are saying, well i'll go there higher wages are bringing those back in >> who else do you talk to where you get your information >> one of the things we talk about, we had a lot of global companies here like 3 m and general mills for example. i talk to a lot of them.

those companies have said to me, their companies are wakamole trying to shift around. >> they've said, it is not going to be in 2022. >> it will by in 2023. saying this is all going to be ahead and they are guessing on when things will get better. >> thinking about where the economy is going over the next two or three years >> thank you it is good to see you today, sir. coming up next, another take on inflation this time, administration from

washington interactive brokers this time around futures are lower this morning >> stay tuned. you are watching "squawk box" on you are watching "squawk box" on cnbc matching your job description. visit indeed.com/hire (driver) conventional thinking would say verizon has the largest and fastest m5g network.r job description. but, they don't. they only cover select cities with 5g. and with coverage of over 96% of interstate highway miles, they've got us covered. what the world needs now... is people.

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well cob back to "squawk box. we are almost 3.2. >> maybe we were briefly down 419 well over 500 for a while nchlt a tweet this morning from our colleague he points out the dow is at 32 or was at 32809 happy monday we know one is an index. one is a cryptocurrency. >> you just said on the other hand for john. >> i did

a little context on the s&p 500 has lost the round nasdaq is also down first time in almost a decade the dow has been for six straight weeks that's only the worst run in the past three years uber planning to slash spending and to be deliberate about adding workers according to a staff email said his company needs to become a leaner shift of seismic. >> and company palantir the

company with a softer than expected current quarter revenue did beat forecast. current growth seen ahead. and rivian shares would slide through. ford plans to sell $8 million. as the insider lockup period is expiring. >> on a morning when stocks are set for another big fall salesforce down by 2.56% stay tuned, you are watching

"squawk box. this is cnbc

>> minneapolis fed president with us moments ago. joining us now, from the bind

administration member of general council expected to give a major speech. we went over six weeks or so fed will be in a tightening mode for a while. >> what else can the administration do to soften this blow and other things you have proposed to say, maybe not with

this stuff >> thanks for inviting me and teeing up that important question >> our job as dispatched by our president is to do everything we can on the task force dedicated to this. is to help ease pressures on the supply side reducing deficit and supply under each one of those buckets, when it comes to transportation and logistics.

our work at ports and trucking have worked to he deuce port time those are the buckets we are in. we can help from our side of the equation. >> you are still proposing some version of build back better there are people who say that is the wrong thing for right now. are you urging him to go a aide with that forgiveness?

this is really a reference this year, if you look at the more fiscal stance and lowering the deficit we thought it would come down 1.3 trillion that has taken a lot of logs off the fire in 2021. the shock from the pandemic crisis is shifting in reverse big time largest historical reduction on record.

$1.5 trillion in 22 >> tax reets, that doesn't mean we are not in some way with the picture. is it time to be hastening when we are not there yet in terms of cost and supply we need. it seems like the administration never changes tack on anything regardless of what is staring them in the face >> there's a lot to unpack there. the fiscal government stance in the economy whether putting on the accelerator or the break at the same time, you can't

argue we are putting logs on the fire when things are coming down there is no question they are pushing back against inflation whether our work in the ports and the strategic reserves or ethenol and what was provided there. >> child and elder care, that would help increase the labor

supply. >> the summer driving season and then after that, the election season i wonder if you are seeing any clouds gathering. >> how would you advise democrats to reemt you know we may get to $6,000. when people fill their suv, that drives things home $120 >> this is not just the economy. with real tale winds

we can't for get those. >> we got a jobs report. over800 million jobs arms and tech really get people to where they are last year, 5.4 million to get places started we have strong tale winds and head winds our job is to absolutely watch those to gauge the negatives and be realistic about the underlying strength so many households are coming into this period with. when the imf marked down global

growth maybe they are right. maybe they are wrong i do expect the trend this year to trend to above trend growth on gdp >> all right we are looking at some concerning market trends that has to be on the radar screen it all seems related to the infrastructure picture that is a tough time so good luck >> thank you >> we'll see you again in a couple of weeks. okay, joe. we have a lot coming up. how retail investors are fairing in the latest round and what less ones they can take in the past interactive brokers with us. so much more watching "squawk

so much more watching "squawk box" on cnbc ♪ ♪ to be... unstoppable. that's why the world's largest companies and over 30 million people rely on prudential's retirement and workplace benefits. who's your rock?

welcome back to "squawk box. futures point. straight over to cnbc senior

market commentator who joins us. mike >> really, more of the same story. outlast week at the lower end of the range where we are gooding to open right now is about 40/50. that gets you below your lows. trying to quantify zaktly what likely or plausible down turn risk might be or even if we do get a wild bit it is technical valuation. gets you to the minus 28% peek

level. minus 5 to 8%. u.s. dollar index at the high. mostly euro about the euro declining. it is a financial tightening story. >> and of course quantitied to take a look at bitcoin relative to nasdaq, relative to gold bitcoin is tracking nasdaq step for step this year holding the value. for people who own bitcoin own tech and disrupt what you own compared to what else is market if you are going to cash across

the board, it pressures somebody else who also owns >> how much do you think it is of folks losing money on bitcoin and having to sell out of things in the nasdaq or vice versa? >> i think it is impossible to disentangle that it is important you have a lot of cross ownership or same motivations. people who like momentum or disruption or like the idea that software will have this value short term will be valued in a way not sustainable for new buyers to come in and take this selling pressure >> i don't know what direction the cause at runs. sitting at massive losses concentrated in a lot of the big digital names. i don't think they are necessarily in poin but it shows you the linkage is in the

stress coming up, jim cramer's new take as we get set for trading on wall street and where retailers are focusing their attention. stay tuned "squawk box" will be right back. your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire this thing, it's making me get an ice bath again. what do you mean?

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let's get down to the new york stock exchange. jim cramer joins us with more. we were talking about what is

happening this morning just the idea of the foreselling. is it an opportunity >> we are putting a little money to work. not big, becky look, all your guests this morning, dan ives on the other side look, there is just more down side why get in you have been working remember the dow was down 510, do you think we'll see that again >> the market hasn't even opened yet but watching what happens and just wondering maybe the bigger question, maybe we are getting into a bare market is this going to be a cyclical b bear market.

>> i think the s&pj will be more they will come down and growth will be up year over year. s pretty hard to find that growth more than anybody wants >> looking at whatuber was talking about. in this market and how we expect them to make money we've known that was coming. this revaluation of looking at things the idea that even markets themselves will look at that you may think we are not going to spend as much on new hires and getting back to these things it seems like a hopeful thing to think we are going to cut back to spending when it comes to new

hire, spending >> the top 10 worse performers in the russell are all companies trying to figure out whether it would be better to go for property i think the problem is, they don't have enough money to go to property they have enough for revenue and would do an equity offering. these are all going to be races. races to get there before the cash runs out. that's what i'm worried about. it is not a great market there are blue chips coming down to real value. other things they are figuring out how do they make it? >> we are talk about how retail investors were the ones getting hard hit and making these bets out there. looking at these hedge funds that all got in the same bet and levelled up.

retail not having as much fun but these are the hedge funds. >> you are so right. we know it is not those guys driving it down. the hedge funds liquidating.debt it is hedge funds. this is a weird moment, 5/9, maybe there are some may lockups, but becky, this is such a bear market for anything that's growth. we just have to get it over with >> david, with his story over the weekend about rivian and ford planning to sell 8% of what they had when the lock up expires last i looked rivian was down this morning. >> they need it for lithium batteries. i confirmed this they need it to make uv. but i think that -- remember, was it 120, and they weren't able to hedge? >> right, right. this is a morning where a lot of people are going to be looking

for advice, they will be with you coming up in a few minutes. >> there are stocks coming down for no reason and some that deserve to come down we will have to pick and choose. more deserve to be come down than don't that's the problem. >> i think people will be listening to hear where they can find some safety this morning. >> i will do my best. >> on that note we will see you in nine minutes. we want to remind but the cnbc investing club go to cnbc.com/join the club or point your phone at the qr code on the screen. welcome to your world. your why. what drives you? what do you want to leave behind? we'll be right back. what do you want to give back? what do you want to be remembered for?

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welcome back to squawks. take another look at futures as we get close to the opening bell on wall street many investors enjoyed outsized returns during the pandemic but they are getting hit during this current sell-off in a very big way. joining us now, thomas peterffy, founder and chairman of interactive brokers. thomas, great to see you, but obviously not on a day like today, or this past week, frankly. what do you see from the retail investor are they holding in?

are they not are they trying to buy what are you seeing? >> our customers at interactive brokers have started to ease up around -- in the first quarter and put on many hedges against long position which is they of course couldn't sell because they have very large profits that they do not want to realize in their individual holdings but they have put on hedges in the form of futures and spyders. and so -- also in the option markets. you know, the action mostly is in the option markets lately, where people are putting convconver c -- putting on vertical spreads.

so interactive customers have not lost as much money as the market overall has but, you know, i think on the long run for th, for the um tee time, the sudden euphoria of the fresh money turns into unpleasant periods of having to cope with the inevitable inflation. on the i thinkd -- issue -- the deficit spending is he we have some ways to go on the inflation front. this market is reminiscent of previous bear markets, first in the 1987 market went after a very powerful bull run, stock valuations went to historic highs, inflation was moving

higher, and the fed began to tighten. second, the 2000 dot com bust, where stocks were tide trading at very high prices even though they had no earnings and similar to the meme stock buy up, they had in reasonable prospects for even having any earnings >> is it your sense that there is a v to this do you think this is like an l >> it is an l. >> you are talking about '87 and '99. first of all, where are we, even, by the way that's the other thing some people are looking at these prices who are saying, at some point, have you i be buying? >> at some point, definitely but i don't think yet. i think from the point of view, the market is going to be an "l"

but there are certain stocks that people should be doing their work on now and getting prepared to buy them as they are coming down. and yes, mostly in the technology area. but just like in the 2000 dot com bust most of the technology companies are not around anymore. so you have to be very careful which ones you are picking >> right can you explain what do you think is happening with crypto and bitcoin and just the correlation? are you seeing that? and is the nasdaq the dog? the tail what do you see? >> obviously, crypto is highly correlated with the stock market because same money who have money in the stock market are also the money who have money in crypto so, you know, when they have margin calls, they have to lighten up

so they sell wherever they have, you know, not -- the losses are less there, and there are no big tax consequences, right? so, yes, it's basically the same bathtub. >> thomas, sounds you are still bearish. what would be fair value to you? >> i would say about 3500 on the s&p, 36. 35, 36 you know, at around 15 to 16 time earnings. >> we will keep our eyes on all of it. thomas we appreciate you being with us this morning thank you. >> thank you very much >> you bet. take a final check on the markets this morning as we mentioned, red across the screen looks like it's going to continue that way. what did you say, joe? >> i didn't say anything i think that's another 15% on the s&p, isn't it?

>> yeah. >> what are we down on the high now? >> we are already down 13%, maybe, from the high at this point. yeah that's a ways. >> significant yep. he's right. >> if we go another 15. >> yeah. >> keep your eyes -- bitcoin, $32,000. >> 32,9 or something. >> we have got to run. make sure you join us tomorrow by the way, happy mother's day belatedly, to everybody, including becky. >> thanks. >> i didn't do that. "squawk on the street" begins right now. good monday morning, welcome to "squawk on the street," on j carl quintanilla and jim cramer. on a week where macros are going to take the wheel amount of lot of fed speak on cpi on wednesday. futures under pressure a