thank you so very, very much as we said, green arrows for the first time in the morning that we've had in quite some time we'll see how things open, guys. but make sure you join us tomorrow, "squawk on the street" begins right now ♪ good morning welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david farber. we're going to hear from yellen and potus today on inflation and financial stability. ten-year yield below 3%. we begin with the bounceback stocks are poised to open higher after three days of heavy selling. >> plus, we have a biotech deal this morning pfizer is buying bio haven the price tag, 11.6 billion. and peloton shares are plummeting yet again

the company posting a huge loss. the ceo admitting that, quote, turnarounds are hard work. carl >> we're going the hear about more of them i'm sure. the markets are looking to rebound after yesterday's sell-off some chatter that we're waiting around to see if this thing has legs this morning. >> i think that there was a big capitulation at the end of the day. we saw a lot of stocks just crumble and it continued in the evening with a couple companies that we didn't know had financial difficulties they will deny, of course, that they have them i think that the conference calls were very contentious for upstart. i want to point out, the big nasdaq stocks have been crushed. they've been crushed and crushed. they're at an interesting level. >> certainly the numbers -- there's a basket of names, david, from last night you mentioned peloton. jim mentions upstart

we can probably through plug in there as well and novavax. >> these are stocks that are being -- they're still being pushed down. the cathy woods stocks are just annihilated. she's given it all back. when she buys something, it is always right and people are tired of that people are very tired of that. and i think it's really important to point out that a lot of people who were negative on the market are -- just feel for a trade it's worth it. just a trade i think it's important when you get these situations where you're chattering with people who are really good that you like and they say it's a trade, you don't want it make seem like they're drawing a line in the sand. bio haven, i've had them on a number of times. this gets rid of my migraine in 15 minutes i was getting 27 migraines a month. but this thing changed my life and i've had him on -- i've had

vlad on a number of times. pfizer bought a stake. this is a miracle drug that most people are not aware of. when you have this m&a -- >> we're going to talk about this we're going to talk about this deal after our next break, jim because i think we still want to focus on the broader market as well you're right, they got 30 billion in cash and they're putting it to work and i want to hear a lot of your thoughts about this deal because we do have that. we also have a hostile in prolodgeous. i had a couple of conversations with some old friends who are asset managers, run hedge funds, and, man, it's not easy out there. nobody is going to feel sympathy for them, but you mentioned some of the names and yo go on from

there. ark, of course, you mentioned. snap, you know, amazon, again, everybody comes back to just really wondering what the message was there, what is that going to ultimately mean even for the fed's march forward in terms of rates. amazon may now be putting on the secondary market some of their warehouse space. what is that saying in terms of where inventories may ultimately end up here and the bigger picture in terms of whether the fed is going to keep raising as we start to potentially see weakening demand >> well, look, i think that -- unfortunately, i think the cpi -- there's a couple of percentages in autos and then you have oil that are not great. i really feel that trying to hint -- trying to hang your hat on the cpi may be a mistake. but i also think that we've got so many people who have decided that it's over

david, the capitulation yesterday was extraordinary. it was reported last night, except for cisco, you can see the nasdaq tape bouncing look, as my friend david tepper said, it's a trade, it's a trade, it's a trade. i agree with that. i came in this morning and i just said, you know what, this is overdone. now, that doesn't mean, carl, that they aren't going to continue to press things down. but there was definitely a combination of margin calls yesterday and shorts really went overboard. and using a lot of etfs that are very foreign to people i think that you end up with saying, all right, well, i'm -- bring down every bank or we can say, look, peloton, these were all companies that started -- got to get back over there and there's a lot of companies, if you look at the stocks in the

nasdaq, the bottom -- of the russell, they're all -- they may not be worth anything. and that's very valuable to think of because there's so many companies that help you manager your medicare, help you try to get drugs that are cheaper and everybody is in that business. it's not a business when everybody is in. >> i think we're going to talk with david from goldman this morning, talking about equities starting to show value and a lot of your communication on twitter yesterday was about looking for places -- >> absolutely. we were buying yesterday and we were buying because when you see give-ups, that's how you get a bottom look, amazon, i didn't like the quarter. but that doesn't mean the company is worth nothing we have a lot of companies that are doing okay give you a classic one cloudflare they reported a good number,

okay and what happens, people say, well, it shouldn't go down that much you get ring central coming out and saying we're going for probably growth. you have a lot of companies that are switching their positions saying we're no longer going to lose money and nobody cares anything and that's wrong because they will care eventually but you have to go through the pain of a firm, the pain of good rx and you recognize that people -- bitcoin, where micro strategy has its margin care and you just say, i can't take it anymore. there's a lot of i can't take anymore. if it's 2,000, which i don't think it is, then this could last longer. the companies that are being given up on tend to be profitable. >> that's the tone of the fed's financial stability report and that is liquidity is dried up in oil, housing is susceptible to

stocks crypto, stablecoin -- >> they broke terra. look at kb holmes. they reported a quarter that everybody said would be down a lot and it wasn't. every homebuilder is going to have to cut ambanumbers. i guess what i'm saying is that the economy is not falling apart because the consumer is strong, but the consumer took a real dip. you know that from upstart the consumer took a dip in february they start using the term vintage loans. that reminds me of bear stearns. i know bear stearns is controversial for me i said you could keep your cash in bear stearns. the company validated everybody who had cash in it when you start talking about vintage loans that are bad, you know that sounds like

yesteryear >> we're not there yet, certainly. that's going to be an interesting interview tonight at "mad." >> didn't know he had any real credit risk. honest to god, i thought he was coming up with this platform i didn't know he was going to keep the loans i didn't know the loans might go bad. i didn't know he was going to double down and auto refinance new autos still going up in price. the call was shocking because the analysts were, like, are you -- credit risk loans on your balance sheet? it's one of those calls where you said, wow, what a nice guy in the middle of it, he says, we had a good quarter no i mean, it doesn't work like that you don't take loans in your balance sheet, the loans may be shaky and then tell us you had a

good quarter you own it david, this was a non-own. people are adopting his strategy >> and that was reminiscent of, oh, yeah, we happen to old it on our balance t. vintage. >> don't worry about those don't worry about them, they're fine they're -- >> the vintage is fine and so i go out and say, listen -- >> we only took the -- we only took the bottom tranche, don't worry. it's going to be fine. it's a waterfall. >> anei got a vineyard, a bad vintage doesn't work you don't bottle a bad vintage >> that tells -- that chart tells a lot of stories there that was owned by a lot of hedge funds. i remember when it went public, everybody loved it you've talked about it a lot everybody was marking their privates up on that as well.

>> i didn't know they were going to make small loans and disappointing performance and take them in. >> by the way, first trade on ipo day in late 2020 was 26. almost a complete round trip to the first -- >> that's what i think we're going for is round trips where you have a good rx, they're losing big accounts and it's just -- teledoc and -- look, there's been a huge number of companies, carl, that came -- i was looking at one of them that's too small to mention on the show what do they do? they look through your medicare to find out which plan is good they prey on the fact that the government's medicare stuff can't be understood, but that's -- there's other companies that do that so you look at them and they all -- these companies have so much competition that all the teledocs -- i have to tell you, these companies they're not worthless. it's that you don't want to own them it's a very big difference.

let's talk peloton really quick. wider than expected quarterly losses and a letter to shareholders, the ceo says turnarounds are hard work. it's challenging, emotionally draining, physically exhausting and all-consuming. it's a full-contact sport. they're thinly capitalized, jim, relative to the size of the business. >> free cash flow is negative 747 million. we were looking for negative 222 million. that's a big delta i like saying that because it makes me sound smart how about about this miss? get me more greek letters. the thing is a disaster. i like the guy because he's got to raise money but it's a disaster. everybody has a disaster on their portfolio. everybody. and you can't asterisk it. listen, i had -- i also had -- i had bio haven.

no bio haven, i got -- >> what about that guy foley didn't he have a lot of margin debt i mean, he must just be -- >> i saw him -- >> what happened to the houses >> i don't know. but i saw him in newport we were both having a real good time i guess i was having a better time in retrospect but it had -- have you had any of those espresso martinis >> jim, there are investors who are looking for those names who haven't given up as a result of that huge take-in during the pandemic and the resulting giveback as well -- >> warby parker. did you know that prescriptions went up 21% in 2021? is isn't that going to come back down i don't know but we may not have seen the last of this >> everyone was home for weber everyone was home for traeger. but then i have clorox, they're

doing well but, i mean, when you look at the race of the bottom on the -- on the grills, wow i mean, obviously, i'm going -- my friend jim stewart is going to be at the party this week, and i got a traeger and a weber. i don't know i'm probably going to end up building a fire, melt those darn things traeger, i'm looking at my -- i'm looking at my trades manager. he's like traeger, weber it's a race to the bottom. look at them they're unbelievable >> yeah. >> what are you going to grill with >> i'm not kidding i look at these things and say weber was a good company everybody -- what, david you like the one -- what do you use when you barbecue? >> i'm back in covid i got my -- i'm looking at that thing i had outside that used to keep us warm -- >> you have covid? >> yeah, yeah.

>> i'm out of here >> actually, i probably don't have it anymore. i've been on medication for four days i feel great >> thanks for giving me covid. i gave it to carl. it's something you give to people. >> i didn't give you covid, thankfully. >> i've had four shots and i had omicron. >> i tested negative i have ba.4, ba.5. i don't know this is so contagious i probably could give it to you right now. >> stay away from your mother. >> staying away from everybody >> tell her i said hi. >> i'm coming back tomorrow because i'm going to be negative. >> i'll give you some of this, this nurtec is worth a fortune. when we come back, pfizer's deal to buy the rest of bio

haven that it doesn't already own, we'll talk about that with jim and david. take a look at futures here as we got a busy tuesday stacked. "squawk on the street" continues in just a moment

welcome back jim, of course, was talking about that fairly large deal, over $11 billion that pfizer is doing this morning acquiring biohaven, a key product that i'm going to let jim talk about. it treats migraines.

nurtec is the name as much as 3 to 4 billion over time pfizer did a deal already to distribute xus outside the united states. that was back in november. they follow it up by an acquisition of the entire company. this is not the kind of deal where it's a phase two drug and you're wondering, well, is it going to succeed or not? but you're getting a discount, perhaps, on something that could be a blockbuster this is an existing drug with a huge potential market with some competition as well from the likes of abbvie and lily that they're getting into here, pfizer and, of course, we know they've got a lot of cash with which to diversify some of their product portfolio, don't we? $148.50 a share is what they're paying they will phenomenon it, high class, right all that cash coming in from the

vaccine, pfizer has 30 billion of it expected to close in early 2023 they did that arena deal those were more typical of the earlier stage biotech or mid stage with you're taking a chance to a certain extent here, jim, what they're really just saying is, i think at the biohaven front, we'll take a nice premium, and, by the way, you guys know better how to compete in this worldwide market where we really need a big salesforce that can go and market up against some of these other big competitors. >> yeah, well, there's 30 million people who need this it's a remarkable drug if you think that you have one coming on, especially because of weather, if you take it 15 minutes before, if you have one, take it, 15 minutes after, i was one of the early adopters of this i also have the shot am

abbvie is not being marketed correctly. i have migraine problems i was the chief spokesperson and i was trying to get abbvie to really push, but that was a drug and they didn't get it but the -- this guy who is the ceo of biohaven was most forthcoming to me saying, look, this is the drug that could be a $5 billion drug very quickly but you needed someone like pfizer because no one believes me when i say how great this thing is carl, when you have a migraine, people take bufferin, excedrin those are the equivalent of the placebo versus this thing. i live by this i had a really bad migraine -- i'm at the end of my shot which lasts 26 days. i had a bad migraine this weekend. whether i use my wife's medicine or i use this. but it was 11:00 in the morning.

i can't drink it that early -- >> what's covered? what's not covered >> this whole thing. this is a miracle drug and people don't understand -- david, you know, it's so painful to meet people who have migraine, and i say do you take nurtec and it's like, no, i take excedrin migraine. you could take a bottle of that. if my dog barks, i want to kill my dog if i could be up in the third floor and my wife is putting stuff in the dishwasher, i have to jump out the window i can't hear that noise. i take nurtec and plop, plop, fizz, fizz, what a relief it is. >> ask your doctor about that -- >> david, you'll love this all the people getting paid by nurtec to say, i take nurtec i said, i'll talk about it

it's like, well, he's not asking for any money. no, i just want -- i wanted my life back. boom. >> just like ironman all over again. >> i got an ironman -- >> someone sent me one. >> there's a broader takeaway here biohaven overall has been crushed lately and the index that you look at doesn't give a sense some of these smaller companies that got funded that don't belong in the public markets, forget about them. there are some really well-known names and i got a few of them here these are names that have been on -- >> did you see what happened to seattle genetics >> yes >> that's clay siegel. >> i mentioned them in part, jim, because -- >> merck. >> people are thinking that big pharma may come for them at some

point. maybe they get a bid today as a result of -- as a result of pfizer stepping up here and saying, yeah, we feel good about buying something. >> biohy biohaven never said to that pfizer wouldn't buy the rest unless they're in stage two, they're -- they could be nowhere. >> right that's the painful lesson of trading in some of these names we'll get cramer's "mad dash," futures holding up here. even as you have oil still in the red and nat gas off 5%-plus. more "squawk on the street" in a minute i'm dan o'dowd and i approved this message. tesla's full self- driving technology.

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>> announcer: the opening bell is brought to you by nuveen, a leader in income, alternatives and responsible investing. let's get cramer's "mad dash." >> i have something positive cisco just blueew the numbers ot restaurants are back people want to hear this they want to have some negative story, but people are going out

or else cisco wouldn't have these numbers. it sounds like some people are going back to the office >> it's a cisco market, jim, it's a mondelez market >> how about general mills yesterday? hershey is having a blowout quarter. there are a handful of companies that are doing well. cisco -- the travel stocks just don't go up and yet they should. people are still -- airbnb is getting crushed. >> we didn't talk about, for example, norwegian, record bookings back above prepandemic levels. >> don't forget the governor didn't want -- the governor of florida was anxious to not have him be able to test people you want to have a -- easy come, easy go attitude toward covid. but the ceo stuck by his guns. royal caribbean is up too. i feel like in the end as

someone who wants to go on a cruise, covid is everywhere. give it a rest >> it's gone through this show, right? david, you, me -- >> david tried so hard to give it to me, but i was so immunized, he couldn't take me down david, are you there >> i'm here. the last thing i would want to do is to take you down or carl i tested negative after the show on thursday. i know -- >> i test bid the -- i had a pcr negative at 11:00. >> i went to a conference and i didn't wear a mask the good news is, guys -- this is where we have to re-establish where we want to stand on things once you have three shots and you're very likely to be not going to the hospital, thankfully, and i took the antiviral and feel pretty good, ready to come back as soon as i get a negative test. my buddy has influenza and he

can go any where he wants but he's way sicker than i am. >> do you think they blocked you just now david, you're zero you don't have a zero covid. you have a four covid. >> there's the opening bell, guys and the realtime exchange and the big board, urban air mobility company celebrating its listing. it's paramount global celebrating the new season of "rupaul's drag race." >> i happen to like that program. my wife watches it all the time. a spac for a flying car, isn't that what we need more than anything else in the world right now? a competitor to -- >> brings back those -- >> archer and joby sometimes i think back on those -- on those presentations and on the -- yeah, we're going

to trade at -- our 2027 ebita, we're going to be up from 26 to 27 it's going to go up 500% it's going to be a big year for us that '26/'27 year >> bofa is -- >> i'm trying to get ahold of the commissioner of the sec who is never a big fan of those made-up projections which cost people trillions, may i add. trillions of dollars in losses but you know what, david, cathie wood, when she buys something, it's long term so shut up >> by the way, a lot of people paying attention to her new position in gm -- >> in general motors i'm so sorry for mary barra. >> kiss of death >> well, i -- you think it's some sort of lazarus thing

>> she did unload some more tesla, some more twitter, but 150 shares of gm. >> she likes draftkings. i was going to tell her that stocks stop at zero. >> by the way, negative five -- >> as far as tesla goes, these reports that shanghai which reopened, toyota shutting some domestic production because of supply chain related to china. >> i've been dealing with supply chain issues there are supply chain issues on the grid appr there are things going wrong that no one ever thought would go wrong it's interesting, like upstart, the february vintage no good, people didn't expect that we would have credit problems within six months of having too much credit, did they?

>> no. and i would have to think that maybe a one-off, would i be incorrect in thinking that this is a misexecution here by this particular company. >> they're going to say that hear what he has to say tonight. >> but the problem is, did you know that they were taking interest -- that they have -- >> no. >> it's not thornburg, okay. it's not my friends at bear. you'll get your money back, certainly not recommending the stock, by the way, recommend the stock shorting on that friday 33, but that's not often talked about by the late roger ailes who is the man who nailed me on that he fired me and i continued the business >> brady will be a commentator for fox when he retires. >> tom brady >> yes we'll see. if and when he ever retires.

>> how about tony romo, the most self-effacing guy. >> thanks, jim >> roger tried to destroy me, what can i say he said he hated me more than anyone else in the world people felt like he tried to help bomb a hospital on christmas day in vietnam -- >> you got your revenge. here you are. >> duke realty is going to be your gainer this morning prologis is saying that the duke people just didn't want to deal with what it turned out to be what would have been a very positive deal. david, point-blank, if amazon has too much warehouse space, tis it the right thing --

>> yes. >> it is tell me why. >> i don't know. that's a great question. because now we're in this period where we're starting to wonder about termination of leases on some of this warehouse space, whether or not amazon may be overwarehoused as they indicated during the last conference call. but to your point, jim, prologis approached them in november. 0.65 representing a 20% premium and they were told, basically, that was not compelling enough for duke to really care much about and so they told them to leave. they came back in march. they came back in april. they came back in may and now they're going public >> prologis is an excellent company. the number one stock performer the issue here is, they're out

of warehouse space they need it but they do have amazon. so does -- where does jazssy pul back from? certainly maybe staten island. david? >> no, i don't know where they pull back from i don't know if they really can put anything on the secondary market and sort of lease it for a period of time i think the larger takeaway simply is a company that knows inventory management better than any company in the world didn't quite get it right what happened is really the question, jim? did things change in a dramatic fashion that they did not anticipate >> yes yes. they would tell you that there was pull forward there and they didn't expect it. i have to tell you, i'm looking at -- the letter to me, it just -- the deal makes so much sense because they really do need the space, but -- and he would tell me, i have to tell

you that he would tell me he doesn't need amazon. there's so much demand i had logistics on, there's so much demand to get these warehouses we don't understand what happened to amazon because that was the worst quarter of faang other than netflix. >> there's a piece on office space demand expected to fall it leads to the view that i.t. budgets will continue to drive demand for enterprise hardware and software -- >> yes american electric and power said there's a substantial increase in the amount of electricity that's being used because of work from home and that's -- as all that kind of stuff there are people coming to me yesterday and saying, you got to be aware of apple. they could have as much as -- that's what tim cook said, really that's what tim cook said. >> although, there have been reports that they haven't been able to let their engineers get

to china physically, having to rely on livestreaming to the factory floor. that's of concern, right >> right need the digital twin from nvidia we need xi to say, you know what, maybe this -- we did it. we won and we need pursuant to say, hey, we did it, we won we need two guys who lost to declare they won, kind of orwellian, "1984". the speech was well attended, putin's speech in the meantime, the aid package that biden is sending over there, they're sending the works. somebody got religion there. i wonder if the pentagon is running it and no longer the national security of council. >> two-thirds of residents of kyiv and returned.

isn't there increasing chatter what victory would constitute if someone wants to call it >> i don't ever want to say anything positive about putin, but the division that is in the factory, they are -- they were valid nazis. you have to understand that there are a -- it's absurd the guy who runs -- zelenskyy is jewish, there's a division they're trying to wipe out and they're unbelievable soldiers. but i think that without a doubt, the russians -- if they get -- if we send them a javelin from l-- it's like the battle where they had one these things are incredible, these javelins i could take out a tank. if i could take out a tank, who

couldn't take out a tank don't you think? do i look like a tank killer >> here we go again. no, you don't. >> look, david, i take two nurtec and i can wipe out a t-34. let's get back you back to your core competency which is talking about the market the nasdaq is up 2%. how should we be viewing this right now. we're only, what, ten minutes into the trading session is there anything to be taken from this rally after the what's happened the last two sessions. >> we have to try to figure out how much of the -- out of it was selling -- if it's done -- just for trade on trade but what i really do like, frankly, is that they got to a lot of stocks yesterday that had been just holding on

and they were all blown out. it started with palantir goes to upstart, goes to peloton should it really go to apple does apple have bad -- is apple that bad amd had a blow-out quarter 5g is winning, except for intel. so why shouldn't you buy those stocks david, why shouldn't you buy right? buy a food stock >> i hear you, but the question will continue to be is there going to be a revision even in the likes of apple apple is down half as much as the nasdaq comps apple instead of the index, you're doing better. it's done better than the s&p which is down 15-plus percent. >> someone came up to me, he

goes, inhave invidia is only 30 earnings >> exactly isn't it funny, jim, how many times you referenced 2000 and i do make it -- it does make me wonder, we keep looking for something that's an analogous period, maybe that's it. it took a long time for investors to get around to the idea that, wait a second, those multiples are not coming back any time soon. i can't remember when nvidia was trading at 60 or 70 times. forget it doesn't exist anymore. >> that was the tone behind the iac letter last night. that valuation shthe framework will last not for months but years. as a result we'll have the chance to buy controlling stakes in growing companies once again. >> remember april 17, 2000, that was the move into coca-cola. of course, everything ultimately did go down.

but there was a trade out of -- i was recommending serious stocks and someone was attacking me on twitter. which i love, by the way, it makes me so happy. this trade bottomed in 1999 take them to march 15th but that was a greatest run and then, david, do you remember there was a hedge fund that had to cover at the top and that was it i don't know if you remember that the nasdaq leave it out, sorry -- >> i think i do. what was it? will you remind me >> there was some tiger -- >> here we are again with a different tiger, chase coleman's tiger down 44-plus percent probably even though than that from my understanding, raising some new money >> raising new money

>> i remember -- i remember the -- van wagner, right >> how about ammorendo >> yes, that guy he reneged on that commitment to the opera. i don't know if he ever made good on it what's his name? all right. all of which means what? we're still dealing with multiple revision that's going to go up for many more months to come -- >> the companies are coming down have money 330 companies went under during that period, david, because they had no money and they were all hoping that their stocks would keep going up so they could pay down whatever they had and they ended up with nothing. >> all true. all true although there had been plenty of business models funded over the last two years that are never going to see a dollar's worth of profit. >> i think that's true

yeah we have a lot of companies -- well, you know let's talk about amc as an interesting opportunity. >> i mean, you got -- the smaller than expected loss revenue was ahead. and most importantly, according to some, per customer revenue exceeding pre-covid levels. >> adam aaron is a man who appeals directly to his minions and gives them something and talks about the short squeeze and how things are better. but he's got a different kind of conference call. his conference calls are directed toward people who used to be in the business, they called them mean people during a period and at one point he says, i know your anger directed towards the short sellers is evident we should call for -- why don't we use the sound bite? >> we've got it. take a listen to what he said. >> your ire and anger directed at short sellers is evident.

i hear your suggestions that we should call for more market regulation by government or we should take more company action. not surprisingly, much of the advice that comes in can flex with the advice that others of you share. while most comes inconstructively, come comes in with hostilely or laced with threats. most is well intended but some might be hurled at us with an intent of harming me or the company, possibly even coming in from short sellers or others motivated by bad intentions all i can say to all of that is this, i greatly appreciate that you care so deeply >> he did have three reasons why you should go. dr. strange, dr. strange -- i'm sorry. four dr. strange, dr. strange

go see it. that's interesting that's not what i'm used to seeing from a ceo. we had the ceo from mattel, he's not saying buy uno. >> "dr. strange 2" cracked the top ten. the question is whether parks will be enough to distract them. ads might be appearing by the end of the year. >> well, look. that's an example of a company that's not going under, whose stock indicates that it is it's about $380 per customer if there was no antitrust, somebody would buy them. now with antitrust division, it seems to be anticombination. david, you know netflix could be worth more than it's selling for. >> yes to the right acquirer. it's hard to imagine them

allowing big tech to buy it. brian as always been brave >> going with the brian there, huh? >> yeah. i'm going with the brian i'm going with the brian known the guy for a long time -- >> brian roberts we work for brian roberts, by the way. i don't know if you know -- >> yeah, we do i tend not to emphasize it because my paycheck is signed by brian. >> we're off the initial highs but all sectors are green and most components are red. >> the 29 of 30 are up microsoft up 2 .5%. let's clook at the sectors the three most beaten up sectors, tech, consumer discretionary and communication services are rallying modestly consumer staples holding up well, actually, kroger, one of

the few negative stocks, clorox. in terms of what's bouncing nicely, again, stock that is have been beaten up in the last couple of weeks, nvidia has been almost cut in half this year, mosaic was down more than 20% the last week or so. even nasdaq i noted exchanges on trading volumes going forward. norwegian cruise line, good bounce for them overall. no guidance but a strong booking outlook for them carnival bouncing as well. everybody is trying to figure out what the bottom is everybody is looking at technicals and there's all sorts of papers flying around that people look for for a bottom i don't see it here if you're looking for extreme readings about 20% of the s&p was at a new low yesterday. we've seen much more extreme numbers in the past. closer to 50% back in 2020

the multiple people say, oh, it's getting cheap that's about average i wouldn't call that cheap i would call that lower, but not cheap. a lot of people look for extreme levels in the vix at 40 and over we're not there. we closedover. i would say that very elevated, but not a panic mode a lot of people say, well, some people will start looking at growth sectors to buy into again. i don't particularly see that happening, either. this is a big one. this is a big basket of growth stocks no, we hit a 52-week low yesterday and there's outflows from this. sang think for another good indicator. this is a bask of about 60 ipos, it's young growth tech and biotech companies, and basically a two-year low yesterday you get what are called bull traps. these are situations where you

get false signals to buy it's not just a growth trap, it's a bull trap, and it traps people the buyers fail to support initial rallies off the bottom, and oftentimes if these bear markets, the technicals are not always reliability that's where people get trapped. the big example is the great financial crisis it was soul crushing, because we had a first initial drop, where we downed about 50%. just about thanks given 2008, all of a sudden we started rallying we had the same situation, people said indicators are bottoming, we rallied all through december, and then started january 2009, we dropped again, another 27% drop, and carl, that was really soul crushing for everyone. the baby boomers actively sold at the bottom. they couldn't take the second final leg down a lot of people, carl, got out of the market, and some still

haven't gotten back in the point is, be very careful about these situation. if this is a genuine bear markets, you can get some of these false signals. >> bob, back to you. >> that's kind of like with dave tepper, yeah, i think the nasdaq can hold, but i think it's a trade worth pursuing what you can do is -- you can buy good stuff here, and get out of the stuff that's been killing me you might want to just use some as a source of funds this is an opportunity, it's day one, i was using minus six on the oscillator, but i don't want to give anyone a sense, which could be the 2008 how quickly they were demolish i mean, come on. david looks good there

i'm going to buy the panthers with him. >> you would have to shave, but yes, a good look for both of you. >> he owns the panthers. >> we're off the initial highs, a quick reminder, you can always get in on the cnbc investing club with jim. >> we're trying. we're trying. >> as they've got the ten-year still below three, the vix close to 33.

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and when you book and pay throug you're covered by our happiness check out angi.com today. angi... and done. dow holding on to a gain of about 313 points what's on mad today? >> you have an upstart on, kind of at the head of the class. cisco, and then a very

controversial stock, crocs, it's got some china exposure, but holy cow, they're doing well this is the problem of the 2000. it's just the multiple keeps going down, down, down i like it, but at the same time i feel like i'm spitting in the ocean. i think the nasdaq is at a level can you cover, but you may have to go back after a bit of bounce can i stalent 10:00? >> yeah. >> you said to hydrate your portfolio, stay away from people with covid, and keep going >> we'll see you at 6:00, if not before when we come back, treasury secretary yellen about to testify on the il. we're back in a moment

good tuesday morning welcome to another hour of "squawk on the street. i'm here with morgan brennan david faber has the rest of the morning off. janet yellen is testifies on capitol hill when q&a begins, we'll take you

there biff the dow is up. >> here are three big movers, peloton is plunging, reporting a larger than expected loss, as demand continues to soften stocking down 18% right now, down more than 80% over the last full year of trading must biohaven agreeing to be bought by pfizer shares are up 70% right now. biohaven shareholders will receive $148.50 per share in cash you can see pfizer is also trading up. we're watching some of the so-called meme stocks. amc getting a boost from popular movies like "the batman. still down year to date, though.

carl all right. stocks are trying to avoid their fourth straight day of losses. s&p closed at the lower level in more than a year yesterday our next guest is still holding that target for year end, joining us on set, goldman sachs chief strategist david koston is back great to have you. >> it's been too long. >> yes, it's good to have you back how does your forecast hold? >> it's a challenges is earnings have been better than expected, earnings -- the first quarter up year over year 10%, and up around 5%, so better earnings, being the finance environment has changed. both nominal yields, 1.5, now 3%, real yields negative 1%, now about 25 basis points to the positive credit spreads have widened, all

of these are part of the tightening financial conditions that was anticipated, just been much more than we had expected so sort of a scenario analysis of a recession, not in our forecast, but that would put the market like 3600, but much higher in a more benign environment. the market seems to be trading those rates for a long time, 42 to 4600, it's been pretty challenging. talking to portfolio managers, they've been sort of a different mind of some believe the -- others believe that the fed, it's not inevitable that there's a recession, and the fact that the fed can slowly tighten conditions, and we can kind of avoid that. >> certainly what william said this morning, there's a path to a soft landing we had your college on jobs friday last week he's holding to his view of peak inflation.

it can peak and plateau, or peak and back off how does that matter to how the market feemts? >> the numbers are 11, 6 and 5 11 million available positions, there's 6 million workers looking for jobs, that's a deficit, therefore there's more jobs than people, that's about 5 million. the idea economically thinking is the tightening financial conditions have to cause companies to pull back on some of the open positions. from an equity market point of view, if you achieve that, financial conditions will have already tightened sufficiently to let that happen and the equity market t. therefore would be matching more of the earnings trajectory looking forward into next year. that will be the positive argument or the central case that we're assuming is that earnings will be driving the market looking forward i think then it leaves the idea,

carl, inside the market where does one invest? >> so, david, it's morgan. where does one want to invest? i guess just in terms of more broadly the market action, what are the signs to watch for, in terms of a bottom? >> so, the key strategy -- one is dividends morgan, the idea of companies looking at their cash flow, and distributing it to shareholders i think is a key aspect. if you think about the overall equity markets, you have earnings, sentiment, money flow and positioning that would drive the multiples. when you're looking at dividends, it's the capacity of a company to actually pay the dividend, cash flow, and the propensity or willingness of management to distribute it in that fashion if you look at some of the companies, amgen, pepsi, united parcel service, those are also companies that the goldman sachs

analysts -- but the idea, the intuition is where there's a concern about valuation, dividends aren't -- that's not a variable it's basically the payment of those cash flows the market trades in the swap market as though there's different cuts in 2023 and 20 th you're view is there's 10% dividend growth this year and 9% next year. another would be thinking about the stability of growth. so we've been discussing just a minute with carl, is the idea of how stable the economic environment will be. if you're looking at companies where there's a stability and ebitda growth looking over the lost decade. that's prima facie evidence before the pandemic and post, and those are the attributes we

looking for now. >> some of the action after names there, i'm sure the viewers will appreciate that does it have further to fall, or what are the key factors you'll be watching for? >> the deal of rates, real rates in particular. so we have real yields now basically around 25 basis points, a significant move in the last eight week's lone, and the view of tempering that, and real yields staying in this area that would be one variable, morgan, the idea of nominal bond yields as well, having having them stay in this vicinity i think that's a key impact. inflation would be another variable we get a print tomorrow among others and the idea there's been slight moderation, that's another variable, so rates and

inflation would be the two drivers that we're looking at. right now, the earnings front have held up extremely strongly, companies both on the top line and on margins have been pretty effective in managing through what's been a challenging economic backdrop. >> there's been a couple calls from some of your peers around the streak one of them was to go long the ten-year, targeting 2.25 is that too extreme for you? >> that would not be consistent with the view we would put forward. the idea behind that is if the fed's objective arguably is to tighten financial conditions, an equity market that rallies a lot, or bond yields that come down a lot is antitheantithetic

>> arguably, it's been painful, and our view is that's at a level where there's still attractive value in the market, looking out over the intermediate term. one other thing i saw yesterday was an idea to short -- is there a risk in chasing dividends? >> there is, so a group of stocks we look at with a share income around 40%. the typical company right now on average is around 30%, a bit less, that's a share of net income think of where the first adjustment would be, it would be buybacks dividends are likely to be more sacrosanct that's been a big sort of demand for shares right now.

>> if not one of the biggest david, appreciate that good road map for what's already been a crazy start to the year >> thank you. well want to check in at the hear, the treasury secretary talking about labor challenges. >> 12% of the u.s. workforce, how would investing in child care strengthen our nation's labor market and unleash our capacity for economic growth >> well, i think the ability of a family to access affordable child care is a critical prerequisite for women to be able to participate in the labor force. the united states does less than many countries in making sure that women do have affordable child care the president has made proposals

that would serve to make child care more affordable i think he's made proposals for universal access to two years of pre-k and i think these proposals would certainly boost labor force participation. >> $13,000 on average of costs a year for child care. it is for many family prohibitive, so i agree with you. finally, i just hope -- we had spoken in the past about my efforts and legislation to create a capital increase for intraamerican development bank we are facing china's challenge throughout the hemisphere. the one thing that could be helpful is the intra-american bank i don't believe that we are working together as i had

envisioned i would ask you to have some personal attention to it thank you. senator toomey >> thank you secretary yellen, i've been encouraged that the administration has recognized the importance of stable coin regulations and it's the responsibility of the congress to define the broad parameters as you know, i released a discussion draft of a bill that would protect consumers by establishing new disclosure requirements, among it would also a new federal license, so i would like to ask, if you can confirm for the record here, that it is still your view that it is important, i would argue even urgent, for congress to passion rlegislation of the regulation of stable coin?

>> i'm happy to confirm that the president's working group issued a report, concluding the current statutory and regulatory frameworks don't provide consistent and comprehensive standards for the risk of stable coins as a new time of payment product, and urges congress to enact legislation to ensure that stable coins and such arrangements have a federal prudential framework i would urge bipartisan action to create such a framework we would look forward to working with you i would note that there was at report just this morning in the "wall street journal" that stable coin known astech terra usd had experienced a run and declined in value.

so i think that simply illustrates that this is a rapidly growing product and that there are risks to financial stability, and we need a framework that's appropriate. >> i appreciate that i do think it's important to note that the stable coin to which you refer is aalgorithmic stable coin. so i think that's an important distinction, but i'm grateful for your point i hope you will agree to work with me and my colleagues who are interested in getting something done do you think we could shoot for a goal of getting legislation done this year >> i think it will be highly appropriate. the outstanding stock of stable coins is growing at a rapid rate we need a consistent federal

framework. i look forward to working with you and members of congress to devise legislation that would accomplish that. >> great thank you. let me move on to the fsoc's focus on climate change. i've observed that i think seven of the recent ten meetings have been about climate change. do you subscribe to what i think is the administration's general paradigm for this, that the risk for the financial system comes in two categories, one, physical risks associated with severe weather, and transitional risk, which is an evolution away from fossil fuels do you describe to that paradigm, or do you think there's another category of risks? >> i would agree that those are the main risks. >> can you name a single financial institution that has

failed as a result of a severe weather event in the last 50 years? >> i'm not a ware of -- >> i don't think there has been one, and every single year we have blizzards, hurricanes, wildfires, and sometimes they're horrendous, and some of them have been recent, but we've never had a single financial institution fail, much less the entire financial s i think chairman powell acknowledged there's really no physical risk that's even remolly imminent i don't see how that's much different from the facta consumer preferences change in all kinds of products and services so i guess i would urge you to

consider that risks like cybersecurity -- i think you would acknowledge that cybersecurity poses a much more imminent risk to financial institutions than either physical risks from severe weather or climbed ate change i general? >> i think both create risks. >> but i said imminent. >> cybersecurity is certainly an imminent risk, one that the council is very focused on the treasury department has special responsibilities -- >> i understand, but you're choosing not to acknowledge that cybersecurity is a more imminent risk i think that's kind of surprising, because it's obvious to most people it's a realtime continuous risk to every financial institution in america there's constant bottom bartments of attacks

climate change does not pose that kind of imminent risk. >> i think climate change is an existential threat to our globe and our future you can see that countries -- it is a long-term risk, but it is becoming notably more severe, and you can see a growing number of countries take significant steps to address this risk financial institutions themselves have voluntarily decided that they need to align their portfolios with a framework of net zero by 2050. that's really in the absence of any requirement that they do so. i do believe that transition risks are very real as more and

more countries adopt frameworks that are meaningful to address climate change we could see significant changes in asset valuations that pose risks to financial institutions. >> well, there's a lot we disagree on there, but my time has expired. i think senator warner is with us remotely? >> i am, senator toomey. let me follow up on a couple items. one, i like forward to working on a rational approach to regulation around noble stablecoins, but crypto generally. i think very recently certain companies that were maybe companies in the software business that have gone out and way overleveraged themselves to buy bitcoin. unfortunately their value is disappearing as we go through this transition in the market.

two quick things, there's an awful love of the folks in new mexico experiencing the fire would say that's a visceral, real human risk. i think on a broader basis and i would hope our colleagues would all look at this if they don't get appropriate range, you may have wide swaths of the indians population not even being able to live with the level of heat exposure, and if you have a dramatic meltdown in the economy, i think that will will be unfortunately maybe the first direct, immediate physical risk coming about from climate change i hope we prove to be wrong, but that seems where we're headed. secretary yellen, i think i want to get to a couple questions

one, secretary yellen, i commend all of you tightening sanctioning on putin's actions first, any macro idea of how we're doing in ratcheting down on the russian economy two, i was interested in seeing treasury's announcements saying on sunday we'll go down to the service level. doi fear that putin and other oligarchs are setting up companies that we could have leakage of getting away from sanctioning. >> i go black to the contribute cryptoarenas that are based abroad they are not sources of leakage.

can you talk about some of the things that drove you to your sunday additional regulations? >> on a macro basis, i think our sanctioning are having a severe impact russia as acknowledged that their economy is clearly in a recession. it's forecast that it will contract at least in the 10% to 15% range this year. inflation has been running probably around 20% this year, and russian firms that have been sanctioned are finding it almost impossible to gain access to goods and services that they need in global markets this includes major defense firms that are unable to buy semiconductors and other

components that they need to restock their defense arsenals, as they use up equipment in ukraine. >> could you speak to the accounting issues and leakage of nonamerican cryptoexchange. >> yes. >> in terms of oligarchs getting their money out? >> yes we took the actions on sunday for service providers to make sure -- i think some of the oligarchs use these services to figure out ways to shield their money from sanctions we wanted to clamp down and all of the things we're doing

through the repo task force, exchanging information globally with our partners that have greatly enchanced our ability to -- >> let me interrupt. i know my colleagues have gone a couple minutes over, but chairman brown may be coming back and cut me off, so i want to get my last piece in here one of the things we've been doing on the intel committee is bringing in different industry sectors, and talking about the real challenge that china poses in terms of economic policy, in terms of technology, in terms of intellectual property theft. we recently had in some of the finance industry, while concerned about russia, it was like the light went off, suddenly saying, my gosh, we could have the same kind of essentially decouple with china,

should president xi increase belligerent actions and try to follow the putin game plan if he attacks taiwan, do you think the sector is appropriately building in risks of china taking aggressive action, and what might be our reaction in the west to that >> that's a difficult question i probably can't answer in the time i have. i think you're raising an important issue. what i see is businesses in the financial commune are becoming of more aware of the risks they face in investing in china i think this is something that really demands or intense focus going forward. >> thank you. >> thank you, senator warner senator scott is recognized. >> thank you for being here this

morning. some of your comments i found troubling, in response to bob's questions. just for clarity's saying, did you say that ending the life of a child is good for the labor force participation rate giving someone -- let me just quote what you said, ultimately increasing access to abortion and reproductive health care allows for our labor force participation rate to continue to increase, that denying women access to abortion increases their need to live in poverty. as a guy who was raised by a single mom who worked long hours to keep us out of poverty, i think people can argue about pro-life or pro-abortion, but in

the end, framing it in the context of labor force participation just feels cal loused to me i think finding a way to have a debate around abortion in a meaning for the economic stability of our country is ha harsh, and i'm just surprised that we find ways to weave into every facet of our lives, such an important and painful reality for people, to make is sound like it's another 0.4% added to our labor force participation as a result of the issue of abortion, to me seems harsh. >> well, i certainly don't mean

to say what i think the effects are in a manner that's harsh what we are talking about is whether or not women will have the ability to regulate their reproductive situation in ways that will enable them to plan lives that are fulfilling and sat satisfying for them. one aspect of a satisfying life is being able to feel that you have the financial resources to raise a child, that the children you bring into the world are wanted and that you have the ability to take care of them in many cases abortions are of teenage women, particularly low income and often black, who aren't in a position to care for

children have unexpected pregnancies, and it deprives them of the ability often to kin their education to later participate in the workforce, so there is a spill over into labor force participation, and it means that children will grow up in poverty and do worse themselves. >> thank you let me just -- i'll simply say as a guy raised by a woman in abject poverty, i'm thankful to be here as a senator secondly, we can have a real conversation about increasing child care tax credits and have a conversation about the opportunity to have a more robust system around the issue of child care, of earlier childhood education, we can have a conversation about financial literacy there's a lot of ways to address the issue of the child that's

here that to me was an unusually piercing comments that you made. i will say, on my prepared question, in face of persistent inflation i think caused in many ways by the $2 trillion package in early 2021, followed by 1.2 trillion package that both combined let to an overheating of our economy, slowing growth caused by a backlog pipeline driven by too much demand followed by a lagging labor force participation rate, people aren't coming back to work, but we have millions of jobs office, atrophying the muscle for work seems to be endemic in this current biden administration's approach, coupled with government debt that's now over $30 trillion and growing fast.

how do we justify the build back broker or build back better plan, and saying that more money in the economy will help us reduce the inflationary effect >> the american rescue plan that was 23409 the build back better, was designed to mitigate what at the time seemed to be the most significant and worrisome risk facing the economy, which was that unemployment would stay high, the labor market would remain weak. especially low-income households would lose the roofs over their heads and be unable to put food on the table, and be permanently

scarred by the pandemic. at the time, forecasts were really quite dire, including those of the congressional budget office and outsiders, and no one really knew just how significant the risks were the american rescue plan was a large package. it was targeted at the needs, particularly of those severely affected by the pandemic when you look at the state of the labor market, as you described, the fact that it is so strong may be overly strong, overly hot is, in a way, a sign of the success of that program and mitigating what could have been an great depression, a risk we should not have been willing to take. inflation is clearly a problem -- >> i think chairman brown will tell us both we're out of time let me finish with this, just to perhaps -- >> statement not a question,

correct? >> perhaps, be to say what i said the $1.9 recent attitude plan followed by the infrastructure plan, with another bill for more spending, that i believe two already passed and have overheated the economy, and having a third package on the table to once again to continue to provide more stimulus to a economy that can't take the stimulus already provided. >> if you look at the president's budget, you will see that it is fully paid for there's higher tax collections, and that the budget also incorporates substantial deficit reduction. >> thank you, senator scott. senator smith from minnesota, from her office?

if not, senator castro from her office. >> in response to senator scott, one, let's not forget we started down this path of the $1.9 trillion tax cuts for the very wealthy, that have not been paid for. mea colleagues forget that's where we started here. the rest of bipartisan, and the infrastructure plan, it's paid for and it's long-term vermss. two, i want to associate myself with senator menendez's comments about abortion restriction it's true there's studies that show that, i would ask senator scott this question -- you can't know everyone's circumstances, i appreciate his circumstances, and he is very proud of it i think that's fantastic, but why impose your experience and circumstances on others until you walk in their shoes?

that's all we're asking. secretary, i want to start with the cryptocurrency, we need a regulatory framework for -- it was noted last week that the market is now larger than the subprime mortgage market, which triggered the global financial crisis nobody knows that better than us in the state of nevada he says -- $1.3 trillion market shows strikingly similar dy dynamics, about 10,000 cryptoassets now my schedule, madam secretary, is one financial risks posed by cryptocurrencies is the concentration of ownership do you see any risk because high net-wlort individuals hold almost two thirds of the bitcoin

supply >> i'm not sure if the concentration of holdings among high-wealth investors, if that's true poses in and of it/a finance risks, unless those investors hat to be leveraged so that a decline in the value of the assets with trigger financial distress, which spills over to others, but certainly i think there are many risks associated with cryptocurrencies, and the president has asked the treasury and fsoc to look at those risks. we will issue a comprehensive report shortly the president's working group is also -- has already described the risks we see in connection with one form of cryptoassets, which is stablecoins, and there

we see run risks, which could threaten financial stability, risks associated with a payment system and its integrity, and associated with increased concentration, if stable coins are issued by firms that already have substantial market power. so we definitely see significant risks here >> thank you let me jump to something else that's impacted us in the state of nevada, which is affordable housing, our nation is short 5 million homes, especially for working families, seniors and so many others should be a top priority s can you address the risks to or economies posed by the increase in non-bank mortgage companies providing residential home financing

>> well, it's certainly true that non-bank mortgage companies are playing a very large role. they tend to be quite dependent on short-run financing if there's volatility in the markets, i do see some risks relating to the role of non-banks in the mortgage market. >> thank you the administration has taken a lead in assessing climate risks to financial stability through some scenario analysis and disclosures, can you talk a bit about -- how the financial regulatory agencies learned from those disclosure requirements? is that what you're referring to in some of the reporting that's been done? >> well, a number of central banks around the world, i think the bank of england is most

advanced, have been 50e68 waiting the risks to key financial institutions by looking at how they would fare with their losses and financial position would be, if particular climate scenarios were to play out, and looking at different scenarios, one where there's a gradual imposition of policies to address climate change, other where there's very little action, and then a great of action they design these scenarios, and then use them to assess risks to financial institutions many of our supervisors are looking to do similar exercises. it makes sense for fsoc to work jo jointly on trying to collect the data and translate those

scenarios into concrete assessments into risks of the particular financial institutions. >> thank you, senator cortes-masto >> thank you, mr. chairman madam secretary, first of all, thanks for coming in, and sharing with us in front of these committee today. the federal reserve wrote in its most recent supervision and regulation report released friday, and i quote -- the banking system remains strong overall with robust asset and activity would you agree with that statement? >> yes, to the best of my knowledge, certainly. >> thank you with regard to what we're doing right now in russia, i just want to discuss it a bit. up until now, bondholders have only been allowed to received sovereign payments because of a special rule by your department in late february, the exemption

authorizes u.s. persons to receive interest, dividend or maturity payments on death. treasury secretary janet yellen talking about some of the effects of overturning roe, call for regulation on stablecoins. ylan mui has been monitoring and joins us with more. >> yeah, carl, the ostensible point of the harriearing is to lawmakers as some concerns the report also lists inflation and the fed as another big risk, and things got testy when the ranking republican on the committee, pat toomey, accused the administration of using regulation to influence energy

policy >> you're choosing not to acknowledge that cybersecurity is a more imminent risk than climate risk i think that's kind of surprising, because it's so obvious to most people. >> i think climate change is an existential threat to our globe and to our future. you can see that countries -- its a long-term risk, but it is becoming notably more severe >> one area where republicans and the white house might be able to work together is on stablecoins. there's a lot of concern over the lack of transparency and underlying assets. both sides said they want to work on legislation that would create a sensible federal framework. that could happen this year. morgan >> where i was going to go with you is the stablecoin discussion we just heard. obviously there's a huge down

draft in those assets right now, increasing focus, increasing attention and discussion around regulation, and what specifically could actually come out of this discussion, in terms of that. is there anything meaningful, in terms of shaping those regulations? >> yeah, there's a lot of attempts to create really significant and financial legislation. senator toomey has already put out a framework for what it would look like. one area of disagreement he said he had is that the treasury department and the white house would like to see any sort of backers of stablecoins be ensured depository institutions, what exactly term does that mean, what accounts as a so-called idi. that's where some of the details need to be hashed out, but there's an effort to come up with legislation, but like anything in congress these days,

getting it across the finish like, even thought start of the race, is going to be difficult. we're turning back to the markets, which are trying to rebound today. the nasdaq is up now in today's trade, but it's still down more than 20% for the year. the latest example peloton is plunging after reporting a loss, down 90% joining us now, brad slingerlin, and adam contends her. aaron, i do know you cover peloton. your take away from the results this morning and how it has become emblematic of the post-pandemic shift we have seen in the tech stocks, deplanned for their products and

valuations >> yeah, i don't think there's any big surprises. growth has been slow, a lot of the concern was demand was pulled forward and growth would slow, which has happened now i think they are taking a few steps to remedy some of these issues, cutting expenses, you saw them raise subscription price recently, and clear out some of the inventory that's at high levels, so we do think that free cash flow should improve, as some of these remedies take place, but there's still seeing demand somewhat weak in the current environment, which will take time to work through in our minds. >> brad, just to broaden this out a bit, you would have been investing in tech stocks you've seen a number of cycles the fact that we have seen such prove-based selling within tech

more broadly, your takeaway there, and is it the baby being thrown out with the bathwater? >> i think that's exactly right. we've seen a lot of these corrections. they're very predictable in terms of there's a panic where they sort of throw everything out at the same time >> what you always want to focus on is two key things >> one of the things that's been thrown out

there's nothing more -- it gives you leverage in your business that you didn't have before it's not a fact, it's been around for close to 50 years now. it wasn't something that just popped up during the pandemic. so we're seeing a lot of companies with opportunities out there, as companies are blog treated as a fad, but these businesses are growing, investing, with a lot of opportunity ahead of them. obviously the note to employees as uber, saying hiring will be more deliberate just conserved

cash >> definitely from a few startups, haven't heard that too much from the larger companies you're going to see hiring start to slow. and those are the companies that investors have seen as more defense in this environment. so, in light of that, aaron, what are the names you like? if there are names you like at the current levels right now. >> we do like google here. when you look at google's search business and youtube, we think that's valued at 15 times earnings but with reasonable multiples.

woe like amazon. we think that's getting close to that point them we like godaddy, and trading at sub-15 sometimes free cash flow >> aaron and brad, thanks for joining us today >> thank you coming up, a big show on "techcheck" today. don't miss our exclusive at 11 the dow has gone red el 4once again bowk. stay with us

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. major averages, the dow is flitting between gains and losses right now, really hovering near the flat line, currently up about 30 points the s&p is also moving closer to the flat line, hovering around 4,000 mark as we head to break, though, shares of upstart holdings are plunging, more than 60% right now after the artificial intelligence powered lending platform issued week q2, saying

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welcome back to "squawk on the street." stocks trying to rebound on today's trade. bob has more on what's moving. >> we briefly went negative on the dow, and we're not negative on the s&p, but we're pretty close to it.

the high print on the s&p put up the interday for the s&p was right at the open, about 4068. we're 60 points off of that. we're still up 12 #, but quite a move to the downside, not a lot of conviction in any of these rallies, that's been the problem the past month or so taking a look at the sectors, it's not necessarily tech, which bounced off of the highs, banks, that's a new low for kbe, the bank etf that started moving down this is even with the ten-year has been notably -- the yield has been to the downside today the vanguard real estate etf down here, reets are at 52 week lows industrials, sli, 52 week low, retail, xrt, 52 # week lows. started higher today but drifted lower. no particular news going on. the tech, the xlk, still up today, all of the majors, big

mega cap names are up, but too, just again, not enough buying interest, that's the problem not like this is heavy selling pressure these stocks are all up, nvidia cut. it's not that there's intense selling today, it's just that there's not a lot of buying interest that could be just as big a problem because it's hard for the stocks to keep the rallies going. this is what we were talking about earlier about these old bull traps mega cap tech on the upside here, bouncing today, stocks have been beaten up, mosaic down rather dramatically, 30% in the last few days, bouncing nicely nasdaq and ice, i noted yesterday, 52 week lows, here are concerns about trading going forward and a lot of retail trading, no bounce there, it was up in the morning, now not, carnival, up modestly, norwegian had pretty good numbers overall, some guidance, not there, but talking about bookings being strong, and they were all up a lot more as well so you had this problem here,

guys, and that's that there is not a lot of interest in sustaining the rallies at this point. there's not sufficient buying interest, this is why it's hard to get these rallies going, what we need is clarification on the big three, on the inflation front, on the fed, on what's going on in russia and ukraine and on the big lockdown in china and we don't have clarify on any of those, that's the problem for the markets. >> of course we don't know when we're going to get clarity as you talked about in your trader talk, there's been so much discussion on wall street about capitulation, have we seen it is this the moment in your trader talk, you talk about what does the bottom look like, and sort of warning on being able to call a bottom. i just want to hit it at that for a minute, too, it's really key context. >> the problem here, and this goes back to this idea of the bull traps, you can look at technical indicators and say we're oversold or the market's cheap, it may be true. but it doesn't necessarily mean we're at a bottom. if you're in a real bear market you can get these rallies in the

middle that trap people into thinking we're coming off of the lows, in my trader talk i'm talking about what happened at the end of 2008 and early 2009, when a lot of people did exactly that, and the market dropped again. morgan >> bob, thank you, with the s&p dipping back and forth under 4,000 right now, that's going to do it for "squawk on the street." "techcheck" starts now >> good tuesday morning, looking at "techcheck," i'm carl quintanilla, deirdre bosa and jon fortt. stocks are trying to avoid their fourth straight day in the red brief test at the bottom this morning's rebound disappears this hour we're going to talk about tech opportunities at these levels though. our first guest likes chips, saying there's a discount to be had. paul hickey of the spoke joins us to start the hour paul, good to see you. before we get to the chips, you did say today's trading would be instructive. what's it telling you so far >> what we'r