things have been shaping up well if you get a look at the boards. the dow futures are indicated up by 433 points. nasdaq is indicated up by 288. the s&p indicated up 72 points right now. strong numbers after the so/so session. s&p off 15 points. the nasdaq as andrew mentioned down by 1% a decline of 142 points. that is a 1.2% drop. check out this morning good numbers as we are hearing from the retailers. if you are keeping an eye on the treasury yields. things are still where we were yesterday. 10-year yielding 2.908%. earnings just out from home depot. big dow retailer we have been waiting to hear from the home improvement retailer earning $4.09 a share for the

quarter. compared to $3.68. revenue at $38.9 billion analysts looking for $36 sales for higher up 2.2%. analysts have been looking for a 3% drop in sales they were going up against strong numbers from the year ago period people had pretty tight expectations in terms of what to think. joining us with his reaction is brian nagel. senior analyst from oppenheimer. the company is raising the 2022 guidance total sales growth of 3% operating margins of 15.4% diluted earnings per share growth expected to be in the mid single digits. this is better than most investors were anticipating. how about you?

>> good morning, becky we are just digging through the numbers now. this is very solid report from home depot the real key here is that sales dproeth. growth. a lot of concern of consumer spending we have one of the world's largest retailers showing better than expected sales and the tone of the release what they set in q1 and guidance and they expect this to persist through 2022 >> the ceo ted decker gave color around this. he said the quarter is more impressive because we were comparing being against last ye historic growth. they continue to effectively navigate the challenging and dynamic environment. they will give us guidance that is better than expected.

they must see something that is more than a fleeting moment. >> ted's comments will be very well received by the markets i talked to clients in anticipation of the report, they he were looking for a softer print. with the weather, we had a slower start to spring as i said, any type of pressure related on to housing. we are not seeing it it is a great testament to home depot. it also shows the strength in this broader home improvement category >> home depot shares are up 3.8% i like to look at lowe's shares, too. obviously, this is helping them out, too up 2.7%. is this a case based on the comments that this will be helpful for lowe's this is a sign of the strength of the consumer?

>> definitely. lowe's today is a much run company than a few years ago. i think of lowe's andhome depo are two better run companies i hear positive comments from home depot and my assumption is it bodes well for them we will hear from them tomorrow. the concerns in the market about consumer spending and home improvement spending will put those fears to rest. people are spending on their homes despite what is perceived hits >> i want to point out for everybody listening at home and not seeing the numbers this is helping the overall markets. dow up 400 points before the numbers. now the dow is indicated up 515

points you have the nasdaq now indicated up 300 points in the futures. s&p futures up 77 brian, morgan stanley took the numbers of recession up from 5% to 20% elon musk says he thinks we're already in a recession what do you think? >> it is a great question. i'll answer that this way. as i talk to our clients, equity investors and stock investors are all on recession watch it is well telegraphed in the press that it is likely the u.s. economy will head into recession. that is the narrative. to answer your question more specifically, becky, i look at home depot results here. here is one of the largest retailers in the world in what is a largely discretionary category there is no sign of recession

with the guidance that home depot is giving. just as ted decker mentioned in the comments i think it was a 1.7% domestic comp that comes on top of the strong q1 last year to answer yourquestion, no home depot's results today there are really no signs of recession. it doesn't mean it couldn't be around the corner. we are not seeing that >> brian, it is brian. dow futures 411. the stock is down 35% from the 52-week high down 28% this year the forward pe is down 18. where did everybody get it wrong on home depot? >> well, brian, i want to make sure i answer that well. on today's print, the bears are wrong. this is a strong report. what has happened here is and it

goes back to the comments with equity and investors watch home depot is viewed as a discretionary play susceptible to slower economic environments. that is why home depot stock has done what it has done. the market is betting on recession or slower economic activity the way the market is looking at this is if we have a recession in the united states, it will be driven by the fed taking action to suppress inflation. that could happen outside the housing market that is the playbook we are not seeing that right now in these results home depot is basically for the moment easing the recessionary concerns >> brian, what numbers did you have for lowe's? will you take your numbers up for them when do they report?

>> lowe's will report tomorrow morning. we were basically modelling lowe's similar to home depot that was a low to mid single digit type comp decline. i'll see if i can get around to updating my numbers. i would say -- >> just add 10%. >> home depot essentially comp store sales numbers beat expectation by 4% or 5%. from negative 3 to plus 2. rough numbers. that would be a similar dynamic at lowe's. the only thick to keep in mind is they are skewed to outdoor category to the extent the slower start to spring. i'll go back to what i said before lowe's is a better run company today. that company can now manage around the near-term disruption. >> quickly, who else would you

like around and say in this universe this is probably good news for the other companies >> well, you know, i think the broader -- home improvement is uniquely discretionary retail. it speaks to the strength in the consumer spending. we will hear from walmart in an hour i don't follow walmart we will hear from target later this week. some plays on home improvement floor and decor. those are other companies that typically which has strength in home depot and there is benefit there as well. >> brian, i guess we will see you tomorrow morning thanks for doing this on the fly. let's look at the futures before we move on if you build a board with target and walmart and home depot and

lowe's the dow futures jump significantly on the report from home depot which is a dow c comp component. up 4.4%. lowe's up 3.7% you have best buy and target walmart. we will hear from them in an hour and the dow jumped up 507 for the dow futures. s&p futures up 75. the nasdaq up 287. in the meantime, elon musk said his $44 billion purchase of twitter will not move ahead until he has clarity on how many fake accounts are out there. he responded to a post that said, mufsk may be looking for another deal with 25% accounts being fake or spam

he wrote 20% fake spam accounts while four times what twitter claims to be much higher this is my offer based on the twitter s.e.c. filings being arrest rat this deal cannot move forward until it does. the spokesperson for twitter did not immediately respond to the cnbc for comment >> the negotiations is taking place on twitter >> the whole thing is taking place on twitter you have to decide that twitter has been running a fraud for possibly a decade or longer or elon musk is trying -- >> it's not fraud. it's not their fault that bots sign up. >> they file s.e.c. filings saying they have less than 5% of their users. >> the s.e.c. filings say they could be wrong >> the other piece and the

reason i argue it is a fraud, if this is the case, you have advertisers who are buying against the audience that's what they do. elon musk made the point yesterday that when you think about who the advertiser is -- these are brand advertisers. not click through and buy the products dtc, direct-to-consumer, advertising. this is an image campaign. if the people you are quote/unquote you are advertising to doesn't exist that's a problem by the way, if the s.e.c. should go after elon musk for what he is doing, you want the s.e.c. to go after them and maybe the ftc, too. or this is part of some grand terrible and maybe evil negot negotiation. which is it? >> also, what is a bot what if it is somebody that was

real all of you, hi, thanks for tuning in. but what if they never deleted it or log in once a year when he came out with that 5% number, i thought that's incredibly low this is my opinion here. >> that's not his number it is their number it's the twitter number. >> i get that. people asked me in the past about twitter. most people in america are not on twitter it is a media thing. i would say my personal take -- i would say 40%. we could have a twitter audit. and you see 60% inactive huge numbers. >> in any event, here he is. does he drop the deal? >> twitter fell 8% yesterday down 3% in the pre-market. >> he is dropping the deal at the former price does he take the deal at a lower

price? i think he would be happy to take it at a lower price maybe. >> could you see, andrew, google being interested in a twitter? i know there is antitrust issues >> too much. >> as ea hypothetical they never succeeded >> the answers is no the premium that elon was offering before made no sense to any rational economic buyer. yes, if the price were to come down to some, you know, irrationally low level or rational level, you would find lots of buyers >> should we do a twitter poll will you pay, becky? >> will you ask the bots >> they will say no. they won't pay would you pay for twitter? >> i pay for twitter already. >> you do? >> i'm on the blue >> it is $2 a month? >> $2.99 >> would you pay $50 a year for

twitter? $100 if it was clean? no anonymity >> he's not providing that he doesn't offer that. >> i'm doing at 6:10 in the morning -- stirring the pot. >> elon musk, if he is going to charge, he might charge nbc universal or cnbc. maybe he would charge people/personalities i don't know i don't think his plan is to charge more broadly than that. >> do like a cameo a private ten minutes with andrew ross sorkin maybe he has ideas >> he needs to start an only fans, my friend. >> keep your clothes on. >> nobody wants to see that. that's a negative value right there in my case a whale. washed up on shore all right. we have more to do we are just getting started.

coming up, united airline shares are taking off we will show you what the company said about the quarter it was good news you want to hear it. in the 8:00 hour, the first on the cnbc interview with the ceo scott kirby. stock futures right now are looking good dow futures are up nearly 500 points thank you, home depot. big numbers there. nasdaq up 270. looks like a nice tuesday. i speak for erodevyby on the desk and say you're welcome. we're back after this.

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welcome back could be a good day for the stock market dow futures up 400 a company raising the second quarter outlook citing strength and travel demand. united airline charging a rev-par up 20% to 25% from the 2019 levels. that is from the prior forecast of 17% ceo scott kirby will join us in the 8:00 hour. we are were moaning and groaning yesterday, andrew, during commercial break that the airline fares. >> people are paying them. >> a lot of money. >> i get the feeling that will stick around for a while they probably have a good idea of who is booking out for a

while. it could change. we heard yesterday from iryanai ceo. if covid comes back, it could change things. lordstown ability to stay in business for another year. that remains in doubt for securing of funding. that is from the ev maker chief financial officer. lordstown needs to raise $150 million in capital before it executes on the plans for 2022 the company revealed a deal to sell to foxconn. the market cap is now below $500 million. coming up, intel shareholders sending executives a message voting against the pay packages we talked about pat's pay package. we will talk about that story

next tomorrow, i'll report with a huge lineup of guests. jorn pyne and jay pefske and geoff yang and david solomon >> announcer: this cnbc program is sponsored by baird. visit bairddifference.com. hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire to adapt in a fast changing world, matchin you could hire aption. professional pit crew. go, go, go. sorry. nope. okay. fresh donuts - hot coffee! they deliver real time data and business forecasts when you need it. i think it was fine how it was. (air tool sound) to help you stay ahead of the curve... or you could use workday. the finance, hr and planning system that helps cfos make better decisions faster. on the other hand, we had a great fourth quarter.

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salute to veterans memorial day terry bradshaw: hi, i'm terry bradshaw rocky bleier: and i'm rocky bleier. col. greg gadson: and i'm col. greg gadson. terry bradshaw: on this memorial day,

our heartfelt thanks, to all of our military veterans for their service. col. greg gadson: we honor our veterans, and those who no longer are with us. rocky bleier: to all of our military serving around the world, thank you for defending the many freedoms we enjoy. terry bradshaw: tune in to salute to veterans for discussions about the issues our military veterans face daily. salute to veterans presented by sap, navy federal credit union, verizon, visit us online at www.salutetoveterans.org welcome back intel shareholders voted against the compensation plan for the exec executives the vote is advisory it signals this intel investors

are watching the ceo pat gelsinger. he took over as ceo in 2021 and received $178 million. later that year, that included $178 million in stock and options. he won't receive any of it if the stock trades lower than when he took over >> that's binding, right >> which >> the shareholder vote? >> it is advisory. it is not binding. all right. when we come back, we will unveil the latest disruptor 50 list the latest shaking up the tech world. that's next. and tomorrow, brian cornell will join us after the company's earnings report. and warner discovery ceo david zaslav will be here. this is all tomorrow starting at 6:00 a.m. eastern time during may, we are

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good morning welcome back this is "squawk box. we are live from nasdaq market site in times square dow is indicated up 480 this

morning. s&p futures up 69. nasdaq up 258. dow futures were up at 6:00 a.m. eastern before the numbers from home depot at that point, they were up 400. you saw the big jump after home depot. the shares jumped following the quarterly results. the company is raising its full-year outlook. they were looking for a decline in store sales they were up 1.76% home depot shares up 4.3%. that is a dow compocomponent. other retailers is higher. lowe's is up 4%. home depot made comments that sound like the consumer is hanging in better. target will release earnings tomorrow that stock is up .50%. walmart, releasing numbers in the next hour, that stock up 1.1% >> reading the twitter

background material. as one does. >> it is like a drama. it really is it's a great book. >> by the way, responding to elon musk. >> starts on page 41 today, the 10th annual disruptor list faster growing private companies and challenging to be the next tech driven ipos julia boorstin breaks down the top five for us. >> reporter: number five guild education. it works with employers to offer debt free tuition so employees can earn college degrees on the job. in the last year, it added target and waste management and hilton and others to the growing list of partners number four, canva

a graphic design platform taking on tech types like microsoft and adobe. canva has 75 million users monthly. it creates presentations to social media ads from flyers to digital content. number three, lynn ackineage los it serves big name customers like walmart and mcdonald's. >> using technology to drive a better supply chain is critical. >> reporter: number two. brex $12 million fintech to lend to thousands of start-ups this year it expanded into spending management software and number one flex t f flexport transforming a $1 trillion industry by moving cargo on ships, planes and trucks and

rail flexport uses data to calculate greenhouse gas emissions >> the numbers of ships has come down >> reporter: ryan peterson called attention to the port of long beach dire delays recommending ways to overwhelm the bottleneck in what was called the tweet storm that saved christmas. that was the top five. you can see the full list on cnbc.com/disruptors. in a year marked by broken supply chains and inflation, it is fitting the logistics is the most common category on the list in addition to flexport, there are other logistics companies. flock freight and convoy make supply chains more efficient also is zipline and air space. both handle the business of time critical logistics for transporting medicine and

org organs w andrew >> what do you think we were betting -- if we were betting -- you want to bet or no >> betting on what i won't take a bet until i know. >> which is the winner >> the number one is flexport. the question is what are we talking about here which one goes public first? the highest valuation? >> that. if we were to do this straight as an index, in terms of valuation from the beginning to the end, who would be the winner >> we have done an index from those who graduate and go public 80 have gone public in the past ten years. i'll tell you, the index out

performed the nasdaq since we started this in 2016 last year was worst for the d-50 than for the nasdaq. what is interesting here, andrew, the valuations and private companies are higher than for the public companies in similar spaces because of the contraction in the tech stocks in particular. i think that a lot of the companies on the list you see here will wait to go public until the tech market rebounds a bit. >> julia, it is brian. great stuff. let's talk about gopuff. it is actually a grocery delivery company i thought delivery companies were out of vogue? people realize there doesn't seem to be a lot of money in bringing stuff to people does gopuff have a different value proposition than instacart? >> gopuff is expanding fast. as people are going back to grocery stores more, they f

figured out quick delivery times for not just groceries, but things you might stop by a pharmacy for or go to the convenience store. they figured out how to do it efficiently by using all of the data to streamline the logistics. and a company that does the same thing in mexico, it they have bn able to improve delivery times and not manage inventory i think what is really interesting is these companies maintained growth despite the reopening of the economies and that's why there is so much momentum >> i mentioned the first thing on the gopuff web site is alcohol. every high school dream. >> the meme tomato julia, do you know >> the what? >> the meme? >> the meme or mean? >> mean. they now started selling pizza

they created their own brand >> a restaurant? what is a mean tomato? >> a ghost kitchen you order from home because you want pizza with alcohol. they will not want -- >> i want the pizza with cannabis not as much alcohol. >> what state are you in >> new jersey. >> julia boorstin, thank you we'll send you some pizza. congratulations, by the way. >> i think it is called the mean tomato coming up, the co-ceo of brex it came in second in the di disruptor list that is coming up in the next hour of "squawk box. when go whale watching investments by the biggest investors in the world we will show you what berkshire

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welcome back the dow yesterday was up, but only by 26 points and s&p and n nasdaq closed lower.

this morning, dow futures are indicated up 475 points. getting help from home depot they were up before home depot released numbers home depot numbers were better than anticipated everybody is trying to find out what is happening with the consumer we don't look to be heading into recession. home depot shares are up and a lot of other retailers that are reporting this week. nasdaq and s&p up signifsignifi. home depot coming in with better than expected numbers for the quarter and raising guidance for the year. 13fs are coming in that gives us a snapshot of the investors buying and selling in the first quarter. among the big, berkshire hathaway and warren buffett purchased citigroup and allied financial. and celanese markel and mckesson. all of these are coming up

berkshire sold almost all of the verizon stock and exited the small position in wells fargo. in the meantime, dan loeb sold out of its positions in alphabet and disney of off loaded all of amazon and 70% of microsoft these are big moves. >> 5% pop for citigroup in the pre-market i'm assuming on the buffett news we were chatting in the break, andrew, mid-sip. paramount. >> citi is an interesting one. >> maybe.traditrading? he is not betting on mortgages do we think these are his or others in terms of the size? >> it could be with the positions. it could be todd it could be ted. >> did he tell you in omaha,

becky? i love watching "star trek" or "halo. >> i feel it is not him. it is hard to know. >> it doesn't seem like it. >> hard to follow. he has loved banks that explains citigroup. citigroup has been unloved for a while. he has a huge position of bank of america one of the four biggest in the portfolio. it is number two or three d depending where chevron is right now. >> when we talk to andrew's point the 13f from berkshire hathaway how much can -- do we assume it's him does he always have a say? does he have a veto power on anything odd >> some of the things are todd and ted and he doesn't know until after the fact they all talk. they have lunch. they hang out. they trade ideas it is helpful for all of them to

think about what the others are thinking >> if you remember the whole controversy around it on ac activision it wasn't his stake. >> it was todd or ted. >> he got into it later. that is a separate situation the point is we often times take away an extraordinary amount >> apple was not him originally either it was brought to his attention and turned into the huge play he put into the three of them and charlie munger trade ideas and talk about what they see and think. it is a lot of brain power. >> not to dunk on our coverage because i love our coverage. some of the 13fs, you don't know if they hold them or, b, with the synthetic instruments built on the street, i her ar from my guys this could be an artificial

long position. >> not in berkshire. >> 100% not berkshire. >> and david tepper, that is laughable. >> not for berkberkshire >> berkshire doesn't use those instruments. >> they believe in it? >> it is the old filing. you don't know where they are right now. that's valid some of the changes they made to the portfolio and buffett did rapidly. when he likes something, he gets in quickly. >> we call it whale watching >> maybe this is a situation of star gazing. the light that left that star left a long time ago. >> i feel star gazing with you guys >> and all we see behind us in beautiful times square >> yeah. that's not good. the fda reached agreement

with abbott labs to reopen the shuttered baby formula plant in michigan the fda will review progress at the plant in sturgis, michigan it was shutdown after babies fell ill and two actually died abbott maintains there is no conclusive evidence that links the formula to the babies illnesses. the fda is relaxing rules over overseas manufacturers it could be weeks before the products make it to store shelves. we have more to do on a busy tuesday. stock futures are looking in the green on this 5/17 day. nasdaq futures up as well. more than 1% coming up, we'll talk about buying opportunities that may be in the market right now. later on, we will have a really interesting conversation with john catsimatidis. he is a billionaire known for

groceries. we can talk about food inflation and he also owns an oil refinery in pennsylvania. he said there could be shortages of certain types of fuel this summer we'll talk about inflation and energy and fuel. a lot more to do futures are soaring. we're back right after this. what's on the horizon? the answers lie beyond the roads we know. we recognize that energy demand is growing, and the world needs lower carbon solutions to keep up. at chevron, we're working to find new ways forward,

through investments and partnerships in innovative solutions. like renewable natural gas from cow waste, hydrogen-fueled transportation, and carbon capture. we may not know just what lies ahead, but it's only human... to search for it.

all right, welcome back. the recent selloff has prompted many investors to look for alternatives what is by using a search. joining us is vanair tipit

you know what people want before maybe they know what they want, because you see their search trends what are you seeing investors looking for now? what are they interested in? >> thank you, brian. great to be back here. well, we do know a lot about what people are looking for. and in times like these, it's fascinating to see what the data says first, i would say people are looking for more things. they're searching for more investments. we've seen an uptick from both consumers and advisers who are searching and asking more questions. turns out that relative to what we have seen before, there are three big trends one, there are more searches, believe it or not, around crypto coinbase, funds that are buying more bitcoin it appears that there is a

bounce-back trait question on the platform, which is fascinating, given all the rhetoric the second trend we see is that exposures around climate change, carbon transition, esg, continue to hold their share of searches. and lastly, i would say people are more sensitive to returns around active funds, large cap growth funds with high returns income funds with more returns word returns specifically being asked around many as much as >> do you have an indication, based on the volume of searches, not just what they're looking for, but how much general interest there may be in markets? because we know a lot of people may have gotten blown out. you wonder if new investors got blown out or are just going away do you have a sense of the macro, the macro interest in the markets? >> yes, you know what's

interesting, brian is that when, a year ago, magnify had just reached about a million search results. we are crossing hundred million search results, so not just in the past four weeks, but overall there has been more interest on, on searches and questions being asked. now with respect to financial advisers, we are seeing a 50% uptick in questions that people are asking that's not translating into as much action as it did during let's say bull markets but currently, there are definitely more questions being asked and uptick in both searches, questions and just discovery has gone up. >> what about crypto what are they searching in terms of crypto? how interested are they? or did that plummet when crypto prices plummeted >> it appears that from the searches, there is interest in identifying funds and fund managers that hold significant

crypto-related holdings, coinbase being an example. and in particular there are searches asking are fund managers increasing the holding of fund base or increasing the holding of crypto. whether a kacathie wood. >> it's truly interesting. i mean, it does show that things, when they go down in price, it's supposed to be if you liked them at 40,000, bitcoin, you should theoretically like it a lot more at 30,000, how many of these searches, vanay, do you think will access a large-cap growth fund, do they then transact through that or what do they call it, window shopping for lack of a better term? >> window shopping, and i would

say a bit frozen inmarkets suc as these and this is why, in some ways, i think the industry has more to do in helping people navigate from search and discovery to action in fact, the way we built magnify on the platform, it's less about trading, more about investing and more about education. so you'll see some fascinating new features we'll be releasing over the next few weeks that will help people navigate these sorts of markets >> vanay nair, of magnify, looking forward to what you have to hear in the next couple months and whether or not people are still searching for those things great to have you on have a great day >> thank you >> take care coming up when we return, stock futures up sharply this morning. take a look at where things are. but also take a look at crypto prices right now because bitcoin is up about 2.5%

over $30,000 we're going to have more on that throughout the morning and a huge line of tomorrow. target ceo, brian cornell will be with us warner bros. ceo, and i'm going to be reporting from kiowa island

welcome back to "squawk box" right here on cnbc, i'm andrew ross sorkin. we have a lot of green on your screen it's almost an anomaly these days but we have big, good news coming out from home depot and now walmart results as well. >> theiis is going to be very important. courtney, what are you hearing >> hi, becky, so kind of a mixed quarter, a large miss for profit, the retailer reporting

$1.30 adjusted compared to $1.48 per share. estimates were looking for $138.9 billion and walmart doesn't typically adjust guidance at this time of the year lowering profit expectations for the year u.s. comparable sales growing more sam's club growing more than 10%. walmart's net e-commerce sales, 1% down sharply from previous growth rate trends, still up 38% on a two-year basis. ad sales, a new business, worth 30% globally i did speak briefly with cfo briggs there was the higher cost of

fuel, higher covid costs, related to being overstaffed the employees returned more quickly than expected. and biggs did note that the second quarter is off to a strong start which is why they increased sales guidance for the rest of the year the customer, overall, seems okay but ak mocknowledges there's soe behavioral changes there's big demand in higher-priced items. while they are seeing increases of store brand lunch meat, they're also seeing sales of patio furniture now that the weather is warming up. a mixed result commentary and numbers here, becky. >> this is really important, on many different levels, because

walmart is the largest employer in the united states, the biggest retailer that you see anywhere and what we're talking about, what we're trying to figure out here are two things. one, how's the consumer doing? it sounds like overall the consumer's still strong, but it's cing with the cfo told but how there are behavioral change. does that mean people are trading down from mname brands o house brands? >> yes, and he gave the example specifically of the lunch meat and also interestingly, moving down to the half-gallons of milk as opposed to full gallons of milk >> i'm sorry, go ahead >> no, no, exactly i think that's interesting, too. does that mean they're going to be drinking less milk? or they're so price sensitive that at the moment it feels better to buy a half-gallon than

to pay for that full gallon of milk >> two things we want out of this is the health of the consumer, one, and second of all, how corporate profits are going to be holding up wethought walmart was going to be one of the companies that had the supply chain underity control, because it's so big and powerful, it can move around things if they are seeing problems with supply chain issues, maybe spells a warning signal for the rest of corporate america, what they're going to be dealing with, what the profit situation is going to be like, that's why the stock is down by more than 6% this. but we should also put it in context. they got in trouble when they didn't have enough staff, they were overstaffed and they dealt with that. we've never seen a situation where the management there has not been willing to say we are willing to spend and we are

going to make sure we see our way through this they've had the backing of the walton family. it does raise a question whether this is going to be a huge signal for the rest of the companies, whether they'll be able to deal with inflationary pressures. that's what i think you see with the stock. >> and what i think is interesting is that walmart did go ahead and cut the guidance for the year when it comes to profitability because of what they saw had this quarter, but they raised their guidance for sales, which is not what we've seen from a lot of other retailers. then also, lowering guidance that is not what walmart did here i do think they do expect that if consumers are going to be shopping, they can be the ones that will attract them it's just going to cost them to be able to do so they say they're doing their best to work with their

suppliers. and that's the first line of defense when it comes to the cost that they are paying so they can hopefully pass on the best possible price to the customers when they come to the stores >> operating volume was 4.5 billion. gross profit was down, not a lot, but about .4% they were able to secure inventory. obviously their supply chain is bigger or better than everybody else i think you look at home depot, blowout numbers. walmart, pretty bad numbers. do you feel, courtney, in covering retail like you do, that we're starting to see the split, that if you're shopping at home depot, you're probably a homeowner. maybe you've got a little more disposable income. that inflation, it's the biggest tax. it hits the lower income more than anybody else.

we're all paying the same for milk are we seeing a split in the consumer >> yes, i do there's always caveats with that i think the home depot numbers are very impressive. one thing i always come back to with home improvement is that we've been told that two-thirds of home improvement spending is not discretionary, meaning if your washing machine break or your dishwasher breaks, you got to buy a new one there's not always a lot of planning with that it's not always upgrading your kitchen tile to be more in vogue or more fashionable than before. more than half of what walmart sells is grocery, food items those are by nature lower margin there are so many caveats within the numbers, but i do understand your point, brian, but it is a good one when we're looking at a home depot customer versus a walmart customer they may be different but they may be the same.

>> let's bring back that board you had home depot without very strong earnings, raising their guidance on just about avenue measure for the year that stock is up 3.3%. lowe's is due out tomorrow that's up 2.5% walmart and target shares were higher target, which will be reporting tomorrow is down by about 2.1% as well. so people are looking at these as dual trades for the situation. pretty important what it tells us about the consumer and maybe important to point out that walmart does not think that the consumer is really starting to spend significantly less but did say they saw consumers trading down from premium brands these are the first two big reports that we're getting

courtney, thank you. i know we will be hearing a lot morefrom you as this continues >> one last thing to you, becky. e-commerce, net sales growth up 1% >> they've had phenomenal comps all the way through. >> that's not good, 1% >> the numbers that they've seen, their e-commerce was so strong during covid and beyond same story with walmart, with target of the they've had incredible comes on e-commerce we've been expecting those comps to come down >> 38% on a two-year stack, but only 1% year-over-year. >> isn't this an amazon story? >> no. >> why isn't this an amazon story? >> this is mostly people coming to pick up they order online and bring their car and pickup. >> this is target. >> probably walmart, too >> you can do straight delivery, too. >> you can talk to brian about

that >> all the growth is straightforward. it's an amazon story we saw the story with amazon >> the e-commerce stuff was straightforward. you saw huge gains over the last couple year. >> walmart doesn't like it, walmart down 6.5%. >> and two dow components. >> let's get to duke-it-out dom chu. i don't flowknow what i meant by that we always fight on the golf course and you always win that fight by a ton >> i wouldn't say a ton. but i also have to hand out a lot of handicap strokes. to your point and to becky's and andrew's, the retail conversation is going to be front and center so far. you mentioned the home depot numbers. with regard to the very impressive report from home depot. better sales, better comp sales, raising four-year forecasts. now overyou will a, remember the

home improvement trade has seen this peak and then ebbing of it over the course of the, just the last several months here, and a lot of that was the difficult comp that we had this year as people start to spend a little bit less, given the fact that this year over last year, there's less stimulus money, less, you know, overall kind of government pmoney being poured into the financial system due to covid. it is still down about 5%. they're well off the highs that we've seen over the past 12 months also twitter shares, have to watch what's happening there, because their kind of constant news flow coming out of elon musk, now it's about this contingency about whether or not there are too many spam bots on twitter's platform we know the ceo has been trying to address some of those things

himself. but the majority are computerized bots. it still has twit ter shares under pressure we're at 36.64 by some probability measures, they're handicapping a less than 50/50% chance that this happens. something to watch there as well if you take a look at the overall theme developing in the market right now for certain key parts. one thing that you want to watch is unit ed airlines, about thor tetter than expected big deal, though i'm sure there's going to be much more with ceo scott kirby coming up later this morning on this air so something to of what there. awatch there. then the industrials

caterpillar. j.p. morgan chase, these are the dow components and then chinese internet, to kind of close things off j.p. morgan in march said many of these companies were uninvestable they kind of raised their ratings ona slewough of differen names. jd, pinduoduo. and i though that was a lot to get through, brian, but there's a lot of stuff happening right now, andrew, i'll send things back over to you >> appreciate it we're going to keep our eyes on it a lot of green coming up, the tenth annual disrupter list we'll hear from the first brex and oil prices on the rise this morning if you want to buy

a barrel we'll show you that price in a moment bp closed up over 2% this morning. with the kickoff of the summer driving season just around the corner we will hear from the ceo of red apple group that own supermarket assets all that and more in just a moment

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welcome back to "squawk box" th this morning coming in at number two this year is brex, a financial services company helping other companies with spend management. we're talking to henry, co-founder and co-ceo of brex. good morning to you. nice to see you. congratulations for making number two on the list oh, so close to number one tell us for those uninitiated about the business i remember when you started effectively as a credit cart business for small businesses. >> yeah, for sure. super proud to be number two and super proud for the number one being a brex customer, too so super excited about that. i'm proud of our customer. as you mentioned, we started our

first product was a startup, and we were disrupting the traditional industry of credit cards by giving limits to startup companies and technology companies that couldn't get access to it and as we evolved, these companies grew to be a lot larger than when they started, including brex, and they started having new needs that's when we went into spend management software and also global, helping these companies not only scale their spend management they were trying to add more controls, more bureaucracy and make the company slower. our software tries to increase the speed of the business while creating a culture discipline in a global scale that's the next step for us, and i think that -- >> explain this, for those who may not understand it.

if you were to sit around on a monday morning with a white board and write down a list of your competitor set, given what you guys are trying to do now, who would they be? >> i would say the biggest competitors are, like, american express and the other big bank that is d banks that to credit cards >> what is the difference between your product and a concur or an expensefy on that side or on the other side a business card from am ex-? >> absolutely. the beauty of our product is the integration between the card and the spend management software. the fact that you have both together, it is very special the fact that we can do a lot that they can't a couple features that are very easy to understand that we do and others don't is for example

managers don't need to approve every single expense they only need to approve things out of policy. they don't have time to look through every expense. with brex, we flag things out of policy you look at two or three things in order to approve them, right? which make which make it is much easier we can automatically gather receipts this thing about going to a restaurant or spending on amazon and having to deal with receipts, that's over. and number three, all of this globally, right? not only in the u.s., but if you're hiring people in canada and europe and over a hundred countries, we can do that. >> i like the idea of not having to hold onto receipts. in terms of raising capital in this environment, thinking about ipos and the like, how do you think about it now that we seem to have, we're looking like

we're going to be in a much more challenging time right now than we used to be. >> yeah, so we don't have any ipo inside, obviously. but one thing we're announce forgt first time publicly is we did a tender offer in which our existing investor bought shares from employees to give them some liquidity to weather the storm we're super proud of it and something we hope to keep doing in the future and i think is a good bridge between now and going public >> appreciate it congratulations. look forward to following your progress >> thank you so much >> and be sure to stick with us on cnbc all day, flexioport wil be on at 11:00 this morning. when we return, companies get acquired every day but up next, we'll bring you the

story of one private equity firm enriching over employee. in the meantime, check out the futures. we're still talk ing about big gains. walmart, very different story. the nasdaq component taking a hit. "squawk box" will be right back.

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welcome back private equity oftenseen as th enemy. buying companies in middle america. >> in the otherwise sleepy town of arthur, illinois, a life-changing surprise for the hundreds of workers at the locally-based garage door manufacturer chi they are getting sold for $3 billion to steel manufacturer

nucor, but it's not just the company's private equity owners who are cashing out. so are the truck drivers and f factory workers and the office worker it is a payout of tenure and salary because jamieson her 18 year, she'll be bringing home 5.5 times her annual salary >> word asking not explain how my mind was going n a hundred directions >> reporter: employees received envelopes with their bonus details. on average, they received $175,000, with the most tenured earning more than $750,000 the eye dive idea is the brainc pete stavros >> my father was a construction

worker for 45 years. >> reporter: his dad enjoyed his job but couldn't create wealth on an hourly wage, but once he got into business school he started studying the topic of employee ownership, and as he rose through the ranks of kkr, he started studying it in the firms he invested in now they use it in all their buyouts >> it's not just the money it's the fact that as we said to everyone today, you earned it. it isn't charity t's not a gift. they put an unbelievable amount of productivity in the business. >> reporter: new corps will include their own profit model and the employees we spoke with say they have no plans to take their money and run. i am all in with chi, simple as that >> they're going to have to wheel pea me out of here >> reporter: in the meantime, jamieson has big plans for her money. >> well, we're going to disney

well, i've got, i'm going to pay off my house i'm going to pay off my cars, and we're going to give a little bit to the church and help my kids a little bit. >> kkr first invested in chi in 2015 and will make ten times the equity invested on the deal. the best deal since the '80s shares at the largest u.s. steelmaker did slip on the announcement yesterday >> really cool story and by the way, ronda, i hope you have a good time at disney land or tdisney world but the intro said it all. this is an unusual story, right? you cover private equity you think other firms are watching and listening maybe they're going to learn a little something from this is this good pr is not the worst

thing in the world >> exactly they absolutely are. and pete staff rose started a non-profit called ownership works, and he's actually gotten his fellow private equity peers on board and have commitments to have at least three portfolio companies by 2023 installing this model for future buyouts the these are all the big private equity firms apollo is one of the signatories to this. silver lake. the list goes on in this commitment to share in the wealth, the generation we have seen in recent years where buyout equity has been so lucrative. it's nice to see some of that is trickling down to the rank and fire workers >> i saw in the journal story that there are some people who have multiple people working at the company. one guy's going to get $750,000 across the family.

congrats to them, congrats to ronda. awesome piece, feel-good piece leslie, thank you very much. >> good morning. >> good morning. >> and i like how ronda's spending it, too >> little to the church. socking some away. still to come, we're going to talk crypto regulation and more, with co-chair of the problem solvers caucus and tomorrow on "squawk box," brian cornell will join us after the company's earnings report, and this will be more important than ever. we'll see what he's thinking about inflation, the strength of the consumer also warner brothers discovery ceo david zaslov will be here, too. will there really be spending on content? and andrew will be speaking live to david solomon lots tta ao lkbout with the markets, all tomorrow at 6:00 a.m. eastern time.

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the nasdaq is up 2%. helping is home depot. $4.09 the quarter. it blue oew out the eps number. analysts were looking for 36.7 analysts are now predicting a 3% drop in sales. analysts, they whiffed walmart will be putting negative pressure maybe on the dow today. their problem came in at a buck 30, that was below estimates sales were better than expected, but walmart's bottom line was hit by various inflation pressures as well. tomorrow, i know you got target on walmart may have been impacted by gas prices. gasoline prices are hitting a record high across the united states, all ahead of course of memorial day weekend this $5 a gallon gas already exists in many places, but for the majority of the country,

joining us now is red apple ceo best known in the grocery and food business, john, but you own united refinery in north central pennsylvania i saw comments you had made recently about concerns about shortages. do you believe that we could have diesel or other refined fuel product shortages this summer >> well, my people from western pennsylvania, western morning have been sending me signs of various truck stops and gas stations saying we're out of diesel we have no problems in our company, because we're on a pipeline to canada, and canada's giving us unlimited supplies so the problem from canada not a problem. the problem coming in from the col colonial pipeline, the product coming in from europe, saudi

arabia last month did 7.3 million barrels, this month 7.2. russia, we've cut them out venezuela, can't replace them. we're begging iran to give us some oil the and my position has always been that the united states, canada, and mexico should sign a treaty and have north america have all the oil, we have 100 years worth of oil so we should be energy independent. and i believe at that point we can bring down the price of crude oil from 110, 114, whatever it is today, down to back to 60, $65, which is normal if we do that, inflation goes away >> i want to point out something to the audience. the irony is we're looking at

$115 crude and $4.38 national average for gasoline the big strategic petroleum release actually rtstarted yesterday. it was announced by the president march 31st i don't want to get into the weeds about colonial pipeline. is there anything besides that, what you just mentioned, the potential treaty idea that can bring down oil and gas prices in the near term? >> if we can turn on north america, just that alone, canada, alaska, has 100 years worth of oil there's no reason why we should pay the russian, spay the saudi arabians $114 a barrel you don't have to. we're making americans poorer, and we're making them richer i mean, it just doesn't make any sense. >> well, you know red apple

group, your holding company, john, you've got quick fill, convenience stores, you're in the food business as well. we saw the walmart numbers this morning coming in much weaker than expected. i know the dollar volumes of gas stations will go up because the price of a gallon of gas is higher, but can you talk about houg how much the price of gas influences your consumer >> the prices at the grocery stores are going up like no tomorrow you're talking about a $5 gas rate right now but that's not true. it's going to go to $6 or $6.50, because it's based on $102 oil now it's 114 as the price of oil goes up, it takes 30 days to go through the cycle into the stations. then the price had will go up ih gas stations

and the price of diesel going up, everything is delivered to walmart, our supermarkets, convenience stores, everything is delivered by diesel fuel. you saw what happened to factories. the factories are run by diesel fuel hea there is a shortage of diesel fuel and the surprise going to the moon. >> we have two choices the two choices are we open up north america and bring the price of crude oil down and give relief to the consumer or the fed, the fed is going to raise interest rates and destroy our real estate market you know anybody who wants to buy a house at 5.5%, 6% interest i don't. >> there are only so many ways can you tackle inflation the fed is going to be front and center to this and we're getting to the point where these are the issues that matter most. you're front and center with gasoline prices as you see it and grocery prices as you see

it those are the two that are going to affect every american, especially those at the lowest end of the income branckets. they need to see relief. you have jeff bezos in a twitter war talking about what causes it and how you can fix it what do you anticipate seeing out of washington to make it more difficult to operate, what can they do? if you don't want the fed to raise rates like this, what levers and what tools do they have >> we can solve that in one press conference not make the north american crude oil industry the enemy of the people if we open up north america. if we open up canada, open up alaska that doesn't mean the atlantic ocean which the chinese have taken care of. >> i hear your point, but a press conference is not going to solve this there are a lot of different pressures there. esg investors, oil companies

that don't want to spend more capex, because their shareholders are sick of getting burned by more capex coming. a press conference isn't going to make this go away >> well, you know, it's going to help a great deal if they know they're not the enemy. they'll spend the money. they have all the money in the world. >> i'm just in agreement but john, i think long term you might be right, short term, it's a very hard thing to think that's going to tame inflation >> they'll raise interest rates and destroy the real estate market >> unfortunately, that is the alternative. i think it may be the only option this may sound fatalistic, but that's sort of where we are, don't you think? >> well, you know, washington, we make a decision, for whom do the bells toll >> red apple group ceo, united

refining you've got your finger on the pulse of a lot of different things as a consumer as oil is at 115 bucks a barrel. >> thank you for having me coming up, congressman josh got heimer we'll talk about what we just talked about and more. check out shares of take-two interactive. a miss in its bookings they point to a history of conservative guidance. "squawk box" coming right back

all right, welcome back, everybody. we've got to talk about the two big retailers out today. walmart is now down about 7%, a dow component. that is putting pressure on the dow, even though the dow is up indicated by 400 points, thanks in part by what we heard from home depot walmart reported profit of $1.30 a share. that's the bad news. the good news is sales at the company were better than

indicated. the bottom line was hit by a lot of different inflation pressures. that's pretty unexpected not something you would anticipate coming from walmart they were dealing with higher amounts spent on things like, bottom line results were hit by three different things higher product, higher supply chain and higher employee costs rs acosts, and all of those ate into the profits. a lot of the nainflation was coming in gasoline and gross prigrossry prices first of all, u.s. comps were up by 3%. the number of trance, a were flat but the amount spent on each visit was about 3%. they think the consumer is pretty much hanging in therapy point. we thought the walmarts of the

world would be above some of those inflationary pressures coming from the supply chain it cost more for employees they said they were overstaffed and they have addressed that i don't floknow if this is goino be too much of a selloff home depot raised its guidance for the rest of the year after a slow start to the selling season >> can you not overstate the impact of gasoline prices. i filled up my car yesterday it was $103. >> how many gallons does your car take >> all of them. >> it's the kind of car he drives >> it took all the gallons but it was $103. >> but you have to put premium in it. >> it's an older car the premium was not that much more expensive than non-premium.

>> 20-gallon tank? >> who cares about the premium if you have a ford f-150, the 25-gallon tank, you're going to spend a hundred bucks of non-premium. >> walmart's always trying to pass on the lower costs to the consumer this is not a comment yet on the consumer everybody's waiting to see when the consumer really gets pinched hard bit higher costs, when and if it pushes us into recession >> you don't just turn a refinery back on because these things are, they're dangerous. meantime, when we come back, we've got congressman josh gottheimer he can talk about this and crypto regulation and more later, united staairlines ceo js

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another crazy day? of course—you're a cio in 2022. but you're ready. because you've got the next generation in global secure networking from comcast business, with fully integrated security solutions all in one place. so you're covered. on-premise and in the cloud. you can run things the way you want—your team, ours or a mix of both. with the nation's largest ip network. from the most innovative company. bring on today with unbeatable business solutions from comcast business. powering possibilities™. in washington, money can mean power, so perhaps no surprise crypto executives have invested more than $30 million into campaigns since the start of the 2020 election cycle. in a new article, we focus on a democratic congressman

he wrote an op ed, calling on his colleagues to invest in crypto checking on the price of bitcoin this morning it's been up it's been down, and this morning is back up above 30,000. this is all in the wake of last week's drop in crypto. investors are watching to see if the digital currency markets have leveled off our next guest is calling for stablecoin regulation. let's bring in congressman josh gottheimer thanks for being here today. >> hi, becky, thanks for having me >> good to hesee you. stocks go up, crypto goes up and down. >> last week was so concerning because it was such a quick drop and because it seemed to have so many implication for other areas of the markets

seems like people had to sell some of their winners and were long on margin where is the regulatory perspective at this point? >> i think you're exactly right. what was very concerning about last week with terra and thethe was the quick run on the market. what so many of us have been concerned about, innovators and entrepreneurs, how do we give more certainty to the market place and ensure that when you have a stablecoin it's qualified. it should actually be backed by u.s. dollars or equivalents, so you know what's behind your stablecoin and that consumers who are in the space don't suddenly find themselves with nothing in a matter of second. our legislation either says it can be banked or non-banked if you want as a cryptocurrency to define yourself as a stablecoin. but you have to be backed one-to-one by u.s. currency, and

it defines regulators, the occ it's causing a mass exodus of companies out of the united states to other countries. they're playing ground for their new companies in bermuda and bahamas or france and not in the united states. we want to make sure that we have this market, that jobs are here, that the innovation is here but i think that it requires legislation. that's exactly what we're working on >> josh, which of the stablecoins actually would qualify under the constraints that you've laid out in this legislation? it was a surprise to see tether under so much pressure last week because it was supposed to be the biggest and most reliable. >> part of the concern right now is that it's unclear, even as, you know, the tether claims has claimed that they're actual ly backed it's unclear i think that's exactly the kind

of requirement we need to put forward and for people to be qualified and that's how they're going to define themselves rs and they're actually going to have to show their investors where those resources are. you know, it's crazy right now that you can actually develop a stablecoin and not be backed by anything then people go into it, and suddenly, they read these websites i hear from my constituents all the time about it. the websites say don't worry, if there's a problem, it's insured. but there's been theft, hacking, terror issues, and there's literally nothing there to protect them those are the kinds of things we need to be vigilant on it's very exciting, and we want to make sure we have the pole position >> we've had two presidents working through papers on this issue starting asearly as december 2020. why does theiris take you so lo? where are you?

where is the ftc where is the fcc i mean, come on. >> as you know, i don't speak for the fcc. i've been pushing them to come out with rules of the road here. and the action took steps. but the reason we're working on this, and i'm working on democrats, not just republicans. you can find it on my website. we got to pass this thing the and part of what's been very frustrating is that people actually don't, they're looking for every excuse not to do something. i'm saying we have no time here we cannot wait we need to give this certainty to prevent exactly what happened last week. >> how strong do you think the lobbying is of the crypto industry is around you right now? we just read a report in terms of how much lobbying and how much money is pouring into the crypto industry in washington. >> there are not that many

coming and sitting down and giving us their eideas. but basically, they're coming to us and saying, hey, we need to be regulated here. that's what they're coming and saying, we need certainty, we need guardrails, we need direction. the problem is you've got committees that are fighting over jurisdiction, about who should oversee it. the sec is actually not -- they're fighting back and forth instead of taking care of the consumer my legislation says the occ, but frankly, i don't actually, i don't have a dog in the fight. all i want is the certainty that people deserve to protect consumers and let innovation happen >> always a pleasure to have you, thanks for joining us attitude >> thanks, becky coming up, united airlines ceo is going to be with us we're coming right back with a big hour ahead

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good morning, everybody. welcome back to "squawk box" here on cnbc. >> we're live from the nasdaq market set in times square joe is off today u.s. equity futures on fire. and we me mean that in a good way. dow futures up by 365 points believe it or not, that's off the best levels of the session we've been up. s&p up by 60 points, the nasdaq up by 230. and treasury yields picked up a little bit yesterday right now it looks like they're trading at 2.917%. that's a little higher than an hour ago and another big hour ahead on the show in just a few minutes, we'll be speaking with united airlines ceo scott kirby on his company's raised revenue guidance, and mohamad el erian will join us a

half hour away diverging stock reaction from two retail giants made up the business story of the morning of the courtney reagan joining us on walmart and home depot's numbers. they couldn't be more different. but we have to remember the companies, they are very different. one's got a lot of contractors non-discretionary spending. >> the other, a little different. >> yeah, very, exactly to the point. so home depot did put up stronger than expected revenues. it's also increasing its outlook for the year walmart's profit missed by a wide margin. the widest since at least 1992 and walmart doesn't typically adjust its guidance at this point in the year, but it is increasing its sales guidance but lowering profit expectations for the year and to your point, brian it is hard to exactly compare home depot and wall maumart anda

clear read on the consumer up to half of their customers are professionals, like contractors and plumbers two-thirds of all purchases at home depot are non-discretionary, like replacing a broken washing machine. inflation is pushing prices in the grocery aisle higher profitability did get hit from the higher cost of fuel. aggressive inventory purchases but then dee lake-effect snow some of those inventories, and higher covid costs related to being overstaffed as employees returned from being sick faester than anticipated there's some behavior changes from inflation

while walmart is seeing some trading down and increased purchases of half-gallons of milk, it's also seeing good sales in the newest gaming console or patio furniture now that weather swarpswis warming up walmart increased sales guidance for the year a lot of cross currents happening here i really want to understand where some of these strong sales came from and what inflation looks like there >> you wonder how much is the contractor business, to your point, people doing home remodelling. i know refinancing has crashed but it was red hot a year ago. if anybody out there who's tried to get anything done in their home knows, if you want something done in november, you should start now because most contractors around here are backed up for six

months to a year and good for them so you wonder, i wonder, how much of this home depot boom is really still that lag from the refinancing boom that we had about a year ago, courtney be interesting to hear that. >> yeah, that's a really good point, brian we talk a lot about home price affordability. as houses get more expensive it gets some out of the market but a lot of things that you have to fix in your home are fixes. things that break. maybe you have leaky windows or leaky roof or you have to replace a dishwasher or washing machine, and if you have to do it, you have to do it right now. there's a lot of different cross currents going on, too, at a retailer like home depot >> both dow components going to be duking it out in the dow today.

looks like home depot has the advantage. thanks for joining us, court meantime, let's get straight over to dom chu. he's going to join us with some of this morning's other big movers in the premarket. >> let's talk about the tech trade. we got an interesting call over at wolf research who've tagged four companies specifically. i'm talking amazon, alphabet, the parent company of google meta, the parent company of facebook and booking holdings. these four names were mentioned specifically as wolf research's top picks for the second half of this clear, and they cited among other things, strength of balance sheet, diverse revenue streams. also a valuation push and their ability to generate cash those are some of the reasons why traders will be keeping a close eye on these things. the biggest premarket mover right now in the entire s&p 500

is paramount global. the second or third best performer is city, due in no small part to this whole idea that berkshire hathaway warned buffett new purchases of paramount global if you're wondering why paramount global is up 9%, 10% in the premarket trade that's what's driving it, the regulatory filings and then the big thematic trade, the nasdaq overall, the semi-incumbenters. if many of them are semi conductor names. kla corp so generally speaking, 3-plus percent gains.

that's the big thing driving the upside in tech right now in the nasdaq futures, andrew we'll keep an eye on those >> talking about some of the 13-f filings that we've been seeing, a new crop of them coming from some of the biggest fund managers. leslie picker joins us with more she's zeroing in on those funds that took significant losses in the first quarter. >> hey, andrew, yeah the volatility of the first quarter created widely disparate numbers. with the recent 13f filings we're starting to piece together how managers reacted and for many that meant pretty heavy selling, tiger global was down 34% during the first quarter of the year according to a source and based on the firm's 13f, it appears that they sold

down quite a bit of tech portfolio. air be tiger pared back melvin, which was down 21% in q1 pared back a lot of their portfolios as well melvin sold some of its advanced ah auto work and bath and body works. in an important reminder that these positions are as of the end of the first quarter, afc theas of the end of march >> i want to go back to the buffett stuff. i know it's off topic, given what you just talked about what's your take on that stake, and we've been trying to look,

you've been looking at paramount up 10% this morning on that news >> yeah, the buffett effect alive and well and i think it's a perfect metaphor for what we're seeing in the market. you have these rising on the coattails, and riding the surge on that first-day pop that we've seen in recent years for ipos. now you see things coming back down to earth and a lot of managers selling their holders as they contend with losses in their portfolio. on the flip side of this, you have warren buffett who has said repeatedly in recent years that he doesn't really see many opportunities out there, given the prospect for potential return on his investment, making a lot of new moves and a lot of big moves during the quarter, it's this quintessential time. where the growth investors are the ones who are really suffering in this environment. >> leslie picker of the thank

you. we've got a lot more coming up this. >> mo, post pandemic, we're going to talk airlines as companies look to grow what's next for the business of flying after the break we will be speaking with united ceo scott kirby on his company's brand-new guidance and up tomorrow i'll be reporting live from kiowa island we have a special lineup of guests so much more you're watching squawk on cnbc

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to jurassic-themed at-home activities. join over 3 million members and start enjoying rewards like these, and so much more in the xfinity app! and don't miss jurassic world:dominion in theaters june 10th. all right, welcome back to "squawk box," everybody. the best show would just be the commercial break actually the best show is the futures. dow futures up 367 the home depot numbers trumping the walmart numbers in terms of retail, but a lot of optimism right now in the markets shares of united airlines among that optimism. they're jumping their morning. company raising the company forecast, expecting the bus iest summer since before the

pandemic air travelers. phil lebeau joining us let's bring in scott kirby ceo of american airlines bring brian was talking about the revenue forecast there is breaking news you are bringing back 52 of your 777s that were grounded but now the service bulletin has been r resolved >> feels like the last piece of the jigsaw puzzle fell into place last night about midnight. i'm really addressing theis issue. fis initially, you're going to fly them domestically. then you start adding them into the international routes,

correct? >> yeah, so today we'll start doing engine runs and testing them out and mostly flying them as spares for the next few weeks because we haven't sold tickets on them and gradually start introducing them to the international network. the atlanta network is going to be something like 25% larger >> you'ved added >> the 777s are a huge part of that >> it's a double edged sword, not for you, but in trips the people say i've booked a trip, but i feel like these fares are ridiculous and that the airlines keep charges higher and higher fares. are you seeing any resistance at this point? or is this a case where people, i got to go, and i'm buying even though it's more expensive than i thought it

would be >> the short answer is no. we're not seeing any resistance. our jet actual prices, if today's prices had lasted a fll year, it would be $10 billion. >> i know the smaller businesses are going like gang busters and have been for several quarters now. larger corporations, are they traveling as much as they used to >> so we're seeing a hockey stick recovery in business travel our revenues are about back to 2019 levels. the number of passengers a little bess sinless since price. small businesses came back first. but we see it also with big corporations once think start traveling it's gradual and then a huge increase as people realize how important it is, how much they took it for

granted in we see it at internal meetings and all sorts of things, really ak sell ragt. >> you know the argument out there, now that we've been doing zoom meetings, we're not going to have a team meeting or sales event, we're not going to do that service we used to. do you boy uy that? >> i never have bought that it turns out companies are doing more of those already than they were pre-pandemic. you're in a virtual world and not in the office every day, that cultural connectivity gets lost, and those events where you get everyone together, then the person becomes more important. and we see companies doing more of those kinds of meetings than pre-pandemic already >> as we see, i don't want to call it a surge, but we're seeing more covid case around the country. is that equiimpacting the way it

used to? >> i think we as a country have gotten to covid as being endemic. things like sick calls and, you know, our airline or at faa facilities or tsa or fuel vendors or whatever, but it really is not having any impact on demand. we're learning as a society to live with covid-19 as an endemic disease. >> becky go ahead. >> i just want to say thank, because you're always upbeat, optimistic, painting a real picture ofwhat's happening but it is great to see us smiling and talking about what's going on yesterday we had the kroeceo of ryanair on look, the ceo made tough comment saying he thinks manmagement ned

those shape up or ship out is your experience just different in this entire process? >> look, it's important to all of us at aviation, particularly, it's important to the country to get boeing back to a normal pace of doing business. they're our largest exporter great, great job technology investment. they're one of the innovators, not just a company but of the country. and i think they are on that process, and the faa is, they're working with the faa, maybe it's taking longer than some of us would like, but it proves the process works. what we got last night proves that that process works. it can befrustrating at times, and i can understand why ryanair would get frustrated at times. we have the best safety record in the world and we put safety first. and if it takes a little longer than we'd like, so be it

we know it's going to be done safe and right when it's all said and done. >> pilot shortage. very i have to ask youabout this we are seeing more and more comments from the pilots in the airline industry saying we would grow faster and have more routes but we don't have the pilots that we need >> that's the structural change that's really going to equipment pimpact the industry at the start of the year they were going to try to hire 13,00 pilots >> did the retirement lift get lifted >> i don't think that's the solution at united, our age 64 pilots, 36% of them are unavailable to fly for sick the medical requirements are

really, really stringent pour being a pilot. we're already at 36% by that age. extending the age i don't think is going to be the answer. >> you are launching a new marketing campaign i can't remember the last time i saw marketing campaign from any airline. good leads the way >> yeah. >> why is it that you say this is the time for a full-on marketing campaign >> for the timing it really is out of, we are out of the tunnel we were in this long, dark tunnel going through covid even with fuel prices up $10 billion year over year, we're going to be almost to 2019 profitability level, and we've got the 777s there's all these good things that are happening, and that feels like the right thing, too. we're ahead of maybe where other people think, and the future is really bright. the future is positive what we realized during covid is the united brand changed good leads the way was sort of an organic outcome of everything

that we did. sustainability, diversity, vaccine requirements, also when it met the customers on airplanes. all t thousands of little things i get a lot of e-mails now calling out individual customers. >> it used to be hey, i have an issue. >> i get three or four a day from people who find my internet and thank some employee for going above and beyond that really have a changed environment. >> book now if i'm flying in the fall >> you better book now >> believe me, i know that we tell other people that. scott kirby. thank you very much for joining us we'll send it back to you. >> that's excellent. scott, look out, a lot more people are going to be looking for his e-mail address online. when we come back, we have new retail sales numbers, plus

mohamad el erian plus a huge lineup tomorrow. brian corps noel had been l arcornell will be here alstting tomorrow at 6:00 a.m. eastern time. "squawk box" will be right bac new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today.

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coming up, break economic data we're going to get april's read on retail lesas. don't go anywhere, "squawk box" on a big tuesday with futures up we'll be right bac sure! ...after homework. thankfully, voya provides comprehensive solutions, and shows me how to get the most out of my workplace benefits. what's the wi-fi password again? here... you... go. cool, thanks. no problem. voya helps me feel like i got it all under control. because i do. oh, she is good. voya. well planned. well invested. well protected. what if you were a gigantic snack food maker? and you had to wrestle a massively complex supply chain to satisfy cravings from tokyo to toledo? so you partner with ibm consulting to bring together data and workflows so that every driver and merchandiser can serve up jalapeño, sesame, and chocolate-covered goodness with real-time, data-driven precision. let's create supply chains

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. welcome back to "squawk box" here on cnbc, we just seconds away from april's retail data. you like that, becky, seconds away oil and futures have been going in opposite directions for a while. not today. crude oil is up. wti crude is also on parity with brent. which is usually a couple bucks more rick santelli standing by. rick, the numbers please, my friend >> yes, well, on the headline number for retail sales you see advance, look, there will be changes in the next couple weeks, expecting up 1% up .9 of 1%. that continues a streak of four positive retail months in a row, but, you know, 2.7 was january 1.7 wasfebruary. the trend hasn't been going higher, unfortunately, we strip out autos, it drops a bit

when you strip out autos, you gut retail sales to some extent. we're expecting up .75 of 1% we all know retail sales is not adjusted for inflation on the control group, and this number is used to input into higher up the food chain economic data points, we're expecting up .7. and we ended up 1% that is quite strong, up 1%. that is the second-highest level of the year, 3%, we started out in january versus expectations, three out of four are better one is a close tie the revisions in the rear view mirror are coming in they're all very, very strong. 1.4 versus .5 on headlines

we tripled it. all the metrics are much, much stronger in the rear view mirror when you have four-decade-high inflation, thank goodness retail sales are reflecting stronger and do better than the compensation for inflation interest rates are moving up again. they went from guns hot to guns cold maybe we're getting a bit lukewarm but i give you an easy metric. the high yield close for twos is 20 basic points higher even though they're moving higher, they're well off their highest levels back to you. >> we know the consumer has been strong, rick we got 2.3 trillion in excess household savings or whatever was according to goldman sachs, a lot of people had saved up

money in the last two year >> i don't know, that's an old number, brian. >> we got to talk to goldman sachs and see what they think about that consumer debt >> i'm back dated. it's clearly below that now. and to your point, consumer credit, credit cards up 21% year-over-year and rates are resetting higher like you just heard from united airlines ceo we know the consumer is strong now. how much longer can they keep spending with inflation at this level? you know you kind of wonder, will that just drain wallets over time? >> maybe they should learn from our fearless leaders just keep spending no matter what, right? >> well, except this is our money. >> yeah. yeah it's our money when the government spends it, too. >> you know what i'm saying, our leaders, they spend somebody else's money, this is us this is kind of our point. >> very true, very true.

thank you. here to talk more about the retail sales numbers and where we are in the markets, mohamad el erian good morning we're looking at these walmart numbers. we're looking at these home depot numbers and trying to make sense of what they mean for the larger economy, what do you think? >> what they mean for the larger economy is what the retail sales numbers tell us, which is that this economy remains relative strong that the risk of recession is there but low. but the growth is coming down. so this is a slowing economy, but this is an economy unlikely to go into recession unless we get another policy mistake or market accident. >> when you say another policy mistake you're suggesting that another mistake has been made. ben bernanke already saying there was a mistake that has been made, what would you think would be the next mistake to be

made >> there have been three mistakes made, your interview with ben bernanke pointed them out. it's very unusual. i don't think people realize how unusual it stofor a former chait say this but the mischaracteriszation of inflation. and they haven't been as brutally honest with the world as they should be in terms of the difficulty of soft landing this economy so that is what's going on the next policy mistake i think is going to be not to get stuck in the middle between dealing with inflation expectations properly or alternatively, dealing with the recession risk properly >> the walmart numbers are fascinating of the because it's the macro translated to micro, andrew when you hear about supply

chains, when you hear about cost the interesting thing about the walmart numbers was the fact that they had overstaffing that is new, and that is something to keep an eye on. >> go back to what the fed has to do or not, and i'm trying to understand you think a recess can be avoided. and i'm trying to understand how you think that can be the case whether that's 50 basis point rate hike and that will work you think? or you think something more has to happen? or you think that would be the mistake? >> i think that first and foremost they have to fully restore their credibility the they still haven't explained to us, unlike the ecb, why did they get the inflation call so wrong. and until they do that, until they convince the market place that they have a better visibility on nainflation, the market macplace is not going to believe them like they should.

the market place overpriced how many hikes we're going to get. so re-establishing credibility is really important, and they haven't done that yet. >> what's your sense of the possibility of stagflation that seems to be where ben bernanke think this is is all headed >> i told you last week, it is my baseline unfortunately. lower growth and higher inflation. >> you want to weigh -- oh, brian. >> >> hey, mohammad, it's brian. you're probably going to avoid this question like the plague but i'm going to ask it anyway jeff bezos going after the white house, suggesting that if we had done some of the spending plans, build back better, whatever, the inflation would be worse and that manchin saved us. do you agree with that >> i'm not going to avoid it

to your disappointment >>. >> good. >> i think there was good and bad in what jeff said. the bad is to blame the biden package for inflation. this inflation was triggered by supply shock that was beyond the biden administration control followed by the failure of the fed to contain inflation expectations so pointing the finger at the biden administration i think was unfair what is, but the good is when he pointed out that taxing large corporations is not an inflation issue. that's a fiscal policy decision. and in particular, it is a redistribution decision. do you tax those making super normal profits as the economists call them in order to protect the most vulnerable segment of our population that's a fiscal policy issue >> i want to you weigh in on crypto because your view of crypto i think has shifted over time. it's evolved

i don't floknow if it's evolved again. you were a strue skeptic and for a lot of us as the train started to leave the station, maybe it was a real phenomenon, not just a phenomenon but here to stay. as things have moved back, i wonder if your position has changed. >> so the three elements of my position, one, those who claim that cryptocurrencies will be a global currency are wrong. it's been not. second, those who claim that crypto and the crypto innovations are going to be increasi increasingly part of the financial system, particularly the payment ecosystem, they're right. and the third view is that unless the crypto world and the regulatory world start communicating better, which

they're not, i listen to both sides. they talk in different languages completely they don't hear each other unless they start communicating better, we are going to be left behind in a global race to incorporate the innovations that come from crypto and that's important because the leaders right now, china, the leaders in that race will also influence global standards those elements have been consistent over time, and what we really need to focus on is this third element to make sure that we can manage the risks of crypto, unleash the benefits of crypto and do this in a leadership way >> what does it say about the value of crypto, and in particular we look at bitcoin and ethereum on a daily basis. >> the value of crypto is

balanced like every other, they were helped by these predictable and massive liquidity. now the good news for crypto is the same good news for bonds is we're starting to see the re-establishment of more sensible correlations. but we still at an early stage we need the liquidity effect to bepriced out before we see crypto and bonds play the role of true diversifiers >> when you look at 30,000 on bitcoin, does that seem like a fair value is that a real price? it goes up from here down from here >> wrong person to ask don't ask me that's not a point i've gotten right in the past. >> thank you for making us smarter this morning appreciate it.

>> thank you all right, coming up, we're going to get jim cramer's first take on the day ahead, plus what we learn from this morning home depot up very nice. also look at more mainames on te way as well. l'ock futures up 356 on the dow. ois at 114 you're watching "squawk box. we're back right after it's an entire trading experience. this with innovation that lets you customize interfaces, charts and orders to your style of trading. personalized education to expand your perspective. and a dedicated trade desk of expert-level support. that will push you to be even better. and just might change how you trade—forever. because once you experience thinkorswim® by td ameritrade ♪♪♪ there's no going back. this thing, it's making me get an ice bath again. what do you mean? these straps are mind-blowing!

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welcome back to squawk we find our good friend jim cramer this morning. walmart, walmart, walmart, mor home depot which one is more reflective of the economy? >> i think home depot is i'm very disappointed myself i can't believe i let these guys buffalo me like this this is a terrible quarter execution terrible kind of surprised. >> it sounds like you think this is a walmart-specific situation, not some kind of large signal about where we are >> exactly >> why do you say that >> the execution here is so poor that it's embarrassing how about that

>> you don't make, maybe, you don't buy the argument, brian, you made it a little bit that home depot may be catering to a different crowd and actually walmart may be catering -- >> they have a really good ceo they handle supply chain well. they handle labor well they executed very well. they're a great american retailer i don't mow know what's going o walmart. they should be doing real soul searching. >> how much could be gas prices? you are a business owner as well and the retail sales number we just got, 36.9% jump in spending at gas stations, and that's not because people want to be jerky for coffee that's got to be hitting more than walmart >> no. didn't at costco look, amazon overexpanded and got it wrong these guys overexpanded and got it wrong

inventory numbers, i can use the word curious some people don't get it right some people don't make the playoffs walmart didn't make the playoffs they have to rethink this plan they had it when mark laurie left they had a decent level of dct two quarters ago i don't know i mean, look, sometimes we have to call people out as embarrassing this is real big business. people make a lot of money in this business. and we'll call out someone for missing a playoff on game seven, and we'll say that they didn't do a good job, but not in this business and i'm calling these guys out u and by the way, jazzy, too i don't fknow what got into jazzy. i need these companies to do better whether they do bertter i'll be

happy. thank goodness i sold some look at these numbers >> on the overstaffing, they admitted they screwed up they said they fixed it at this point. do you believe them? >> yeah. hey, listen, they did badly. i wouldn't even preannounce them if i were them they did badly they did embarrassingly. let's call it like it is they embarrassed themselves on the deal home depot, a good number. >> i want to throw two other names at you paramount global, citigroup, what do they have in common? warren buffett or at least berkshire hathaway >> citigroup, i've been trying to figure out the tangible difference i haven't seen that since cal fed. maybe warren buffertt knows something. timeout global is a pimple

it's nothing >> dr. pimple popper is a good show, though >> i guess 5%. i think she's trying hard. she's got a bad hand but the fact is, is that the book value is way too big from where their common tokstock is and we need to know what's in that book. we need to know if thwhat's in t book i want to see that book, hook, line and sinker. when you see disparities like this, that means one company's doing better than the other. >> lowe's is up on the strength of home depot. it has a new ceo, too. do you think that's the last trade? home depot did well, so lowe's will too >> home depot's got more pro maybe we need that for

innovation purposes. lowe's has the gardening scene these are two key weekends for lowe's >> what about target it's down today because of walmart. >> brian cornell's done a really good job he's been very, veryvery, very and i think that brian will do a good job i don't think you'll see inventories balloon. i don't think you'll get a sense -- that the consumer is weak there look, i'm disgusted. i told a lot of walmart higher for my trust >> i didn't get the sense that walmart had bad numbers for the consumer it looked like the consumer was good their comp store sales were upt a transaction was up too execution issues -- >> versus kroger kroger executed very well. albertsons executed well, not as

good as kroger this was bad execution there ought to be a big meeting, get it together and should say, okay, look, we're not doing as well why is it? we were making a comeback, what do we do wrong did we have the wrong merchandise? did we misjudge the consumer what happened? >> jim, one more topic i got to get you on musk this morning seems like we are either in some grand -- renegotiation or we've got a deal that's not happening. what do you think? >> he must really hate brett tailor he's torturing the man, the chairman he's torturing the whole company. i don't know he's pulling the wings off flies. i think only musk can be as belligerent, deliberate and just downright disrespectful. but he's musk. this is a real board these are real people.

they've accomplished things in their lives. they're not fools. and they deserve to be better. you know what, he's musk they're not clowns i've dealt a lot with twitter and they have real issues, real engagement issues. they've always had bot issues. but they deserve better. they are not a bunch of clowns >> jim cramer, we will see you in just a couple of minutes. appreciate it. and we should mention don't miss a double-header tonight on "mad money." stay tuned you're watching "squawk" on cn le.bciv

♪ since they released earnings this morning, we've been shows you charts of walmart and home depot and these are two divergent stocks right now walmart down and home depot up

home depot beat on the top and bottom lines and raised their estimates for the full year. walmart missing on the bottom line estimates and cutting its profit forecast as well. joining us right now, retailers like target that are yet to report and this hour's retail sales data too is the ceo and chief research officer at telsi advisory group what are your thoughts >> i think it was a miss on execution. you look at home depot, they were able to manage through the headwinds of inflation and they raised the guidance. i think we're seeing bifurcations in how companies are lapping last year's results and i think on the apparel side, we're beginning to see a little bit of a moderation in sales and promotional levels tick up i think it's going to be each company for its own as we go through this earnings season and

bottom line i am seeing consumer spending moderate and earnings guidance is being moderate rated also, except for companies like home depot. >> let's talk about that overall consumer because that's pretty important for the economy, for the market overall are we getting to the point where the consumer is really getting hurt by inflation? where are you seeing a moderation in spending >> i'm seeing things like in jewelry, a longer sale cycle to buy wedding rings which is surprising given there are 2.6 million weddings this year you're hearing about companies on the core resilience side, you've seen a moderation on the other hand, tapestry, the occasion and celebrating occasions, tapestry sales are good, luxury goods and seeing an acceleration in north america. everyone else is seeing a pace at moderation if you're catering to the middle to lower-income

consumer. >> home depot up on strong numbers, lowe's up on the thought maybe they'll catch some of that. it's every company for yourself, where do you come down on lowe's >> the strength of home depot is impressive you're going to see good numbers from lowe's but, i think it's hard to catch up to them. >> can i take the other side of cramer for a second? it's not the other side of cramer there's operational problems at walmart, no question whatever is happening at walmart, if you strip out some of the operational issues, you're going to see a larger issue about the other small businesses, the rest of the economy, and you're going to see it in all the numbers. maybe not lowe's, maybe home improvement is going to be a separate category, a higher end category i'm starting to think that actually the walmart piece might be representative of what's happening out there. >> it could be and it's going to be very interesting to see

look at national vision last week, the lowering consumer who does not have insurance, their business slowed in just getting eye exams and glasses. we're watching that low-income consumer guide carefully for adjustments in spending. >> and a lot of costco sells gas too. i wonder if they're benefitting from that. >> target out tomorrow you said this could be different, meaning you think it could be better than walmart -- >> i think it could be better than walmart the innovation that you're seeing in target, what you have with ship, the new stores, i think there are revenue drivers that could make it interesting for tomorrow. >> always good to see you. thanks for the instant reaction. we hope to have you back very soon. >> thank you very much. let's take a quick check of the markets. the futures have been higher through the course of the morning. the dow futures are up by 413 points the nasdaq up by 230

the ten year has been ticking flightily higher on the yield. it's trading at 2.953% that's a little bit higher that does it for us today. brian, thanks for being here. >> so you guys in two years. right now it's time for "squawk on the street. bye-bye. ♪ good morning, welcome to "squawk on the street. i'm scott wapner with jim cramer let's take a look at futures because it looks like we are going to open higher this morning. s&p would open higher by about 63 the dow more than 400-point gain and the nasdaq about 250 points. our road map this morning starts with a really good consumer checkup. walmart with a big earnings miss while home depot boosts its outlook. musk's bot battle, thr