allegations following the business insider report that said spacex paid $250,000 to a flight attendant who accuseds musk of sexual misconduct. and president biden arriving in south korea we will tell you what to expect from his asia trip it is friday, may 20th, 2022 and "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc live from the nasdaq market site in times square. i'm rebecca quick along with joe kernen and andrew ross sorkin. we made it it's friday. thankfully this is a heck of a week if you are watching the markets thankful they will close for two days after today however, u.s. equity futures are harply in the green. dow futures indicated up 260

points s&p futures up 40. nasdaq up 172. this is after declines yesterday. the gains we're seeing today for the week, it has been a heck of a week. the dow down 3% week to date nasdaq off more than 3.5% for the week. if you are talking about down from the highs down 15% for the dow 19% for the s&p 500. down 29.75% for nasdaq there you go let's see what is happening with the treasury yields they are higher this morning the 10-year yield is 2.846%. r andrew. let's talk with the wild story. elon musk reporting that the

business insider reporting that musk paid $250,000 to a flight attendant over a sexual misconduct allegation. we have not received a response. musk responded on twitter about the article. saying the attacks against me should be viewed through a political blens this is the standard despicable playbook nothing will deter me from fighting for a good future and your right to free speech. the alleged incident by the alleged business insider never happened there was a lot more to the story. of course, this will become another piece of the soapcontins hard to know what to make of the allegations. free speech is an interesting thing. clearly ndas signed.

curious how people think of that in the new environment that everybody is talking about we should -- should we have a thing called today in elon >> we've had that for a while. >> we just report whatever the news is? >> i think we had it for a while. >> we need a bug a sponsorable segment. >> i don't know if it is today in insider not today in elon. i don't know i know nothing i'm like sergeant schultz. i know nothing. and president biden arrived in south korea this morning where he was set to tour a samsung chip factory he is expected to speak hathis hour and the benchmark rate for loans in china was cut which was

unexpected this is after the rate was left unchanged this week. this move could bring relief to the troubled housing market. china is walking a fine line and easing too aggressively could spark capital flight in search of better returns elsewhere. lockdowns put a damper on new loans from businesses and hous households. shares of palo alto network is rising after the company came in with earnings of $1.79 a share. that beat the street by 11 cents. back it up not at ross yet. revenue beat and palo alto raised dguidance for the full year a rise in russian cyber attacks led to the palo alto services. the ceo was on "mad money" last night with jim cramer. it is a gain of 11%. for all of the stories we heard

through earnings season, this is one with significant upside and companies are desperate to protect from the cyber attacks this is where it is showing up on the opposite end, ross stores shares plunging comp sales came in below expectations the ceo said the quarter started with stronger sales and under performed during the balance this is what happened with all of the retailers april was a tricky month colder weather and a lot of them have talked about that being a problem. you had really quickly changing consumer patterns. things buying were different from before. ross stores is the end of the consumer and more pressure felt there. that stock down 28% which is similar to what we have seen with shares of target this week after they wound up with more inventory and higher inflation

pressure big question is when those pressure get passed on to consumers. that is what we are waiting to see. meantime, applied materials of $1.85 missed estimates. the quarter guidance was short of expectations. the ceo gary dickerson said the company is constrained by ongoing supply chain issues. add that to the list of companies having similar problems shares of deckers outdoor is rising the company of ugg shoes and hokka running shoes. becky and i are on the hokka shoes. earnings are $2.51 per share much higher than the $1.32 revenue beating and guidance for the full year better than expected so good for your knees, becky. >> it is like running on yoga

mats lots of cushion. >> they're ugly. >> nothing attractive about the sneakers if i could wear them all day long, i would. >> you see the trash they looked like they were chewed up by a dog. >> golden goose. i think -- can i say this allowed? i think that women can wear golden goose sneakers. i think men should not >> i wouldn't say that i don't know if i would say woman. without defining it. >> shredded jeans? >> that is exactly what it's like can i talk about palo alto that was a big beneficiary it got to 630. it is a great result today it is down to 43437. one thing i know, he is

brilliant, but hits the ball so far. >> on the golf course? >> yes he is incredible golfer. i only played with him a couple times. that was a real bright spot for earnings >> this week >> yes that's my contribution he hits it really far and straight when we come back, we will talk about that question one more time. is it time to buy the dip? we will talk about potential investment opportunities as we prepare to close out the wild week on wall street. the futures are higher dow futures up 282 the s&p is up 43 we will talk about the pain at the gas pump with former energy secretary rick perry you are watching "squawk box" and this is cnbc

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jablonski. sylvia, do you think we're nearing a bottom or does it matter >> good morning. i think we have been near the bottom for a few weeks now i felt wednesday as close. closer to the bottom than not is my sense nasdaq down in bear territory. s&p down 25% or more and indiscriminate selling there are a lot of factors and wednesday put us into a tail spin this is an opportunity to get into the market. i said that for the last couple of weeks i strongly believe that dollar plus averaging over the past month will payoff in the future. >> you think we're closer to the bottom than the top. it doesn't matter if this is the bottom if you are looking at quality stocks one stock you like is amazon it has got caught up in the fray we thought there was a big issue that was amazon specific until

we heard from walmart and target what do you think of $2,190? >> i liked amazon at $3,500. i think amazon has a great growth story and highly discounted right now at 35% year to date. they had that $118 billion of new growth last quarter. 7% growth is not what we expect from amazon. a lot of issues are resolveable. they have built up inventory and too much staff they have to sort that out they have the right of the electric vehicle that will change cloud growth is stellar. consumer discretionary sales are down they can sustain i think amazon does so many things and i think they have pricing power. the long-term prospects for cloud are huge it is a great buying opportunity

at these levels. >> does your thesis bake into the idea of we're on the verge of the recession the costs of passed on from amazon and target and walmart will likely happen that and the combination of the federal reserve doing to hike rates pushes us into recession or does that matter? >> i thoi think there are other things that matter inflation comes down and in the coming months, that gives the consumer confidence and less cash hoarding. the shipping costs and fuel costs that amazon faces will impact margins on this in terms of the fed, if the market kind of continues to crash and you get impact of consumers not spending and we do have higher chances of recession, then i think they have to pause at some stage. that, perhaps, changes the story here if you look at spending, it is interesting.

spending on the airlines and cruises and hotels and casinos is sky rocketing there is pricing power there prices are outrageous. the consumer remains strong. that is important to note here i don't think we will have recession this year. i think it is a year away if not more. >> does your buy recommendation on amazon rely on us not falling in recession >> if there was a recession, that is a fair point i think that would change the story. i do believe it is a high quality company and even if there is a recession and you are willing to wait it out longer, say three to five years, given recession, i would recommend the company as a buy without recession, you see price appreciation a year now. >> you like shares of tesla. they are a little higher this morning. there are so many questions given what elon musk is going through with twitter and other noise out there at this point. is his attention going to get

taken away, his time and attention with the s.e.c. or other lawsuits, because of this? >> noise is a great way to describe this. this is impacting the stock price and some things with twitter is doing a disservice to tesla stock. long term, there is a great story for tesla. expecting 50% increase in sales. once you getchina reopened, they will be in a better spot there. i think it is a great tech company. they are ahead of the game in terms of every other ev maker on the planet ev is a small part of auto sales now. it continues to grow and having that leadership there is just very much beneficial to tesla's growth short-term noise will be there it is a great time to buy a stock when it is pulled back on the story he will sell more shares or lose his attention i don't think he gives up his attention on tesla i don't see that happening long

term >> sylvia, thank you. >> thank you how to manage your financial life if you get paid in crypto that special report is next. we won't tell yyou how to manag other parts of your life you're on your own. as we head to break, look at the pre-market winners and losers in the s&p 500. >> announcer: "squawk picks" is sponsored by wisdom tree the modern alpha pioneer as a main street bank, pnc has helped over 7 million kids develop their passion for learning

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it's one thing to invest in cryptocurrencies, but trying to live on a salary paid in crypto? that could be tricky as you realized lately. cnbc personal correspondent sharon epperson has more >> reporter: alisa joined a crypto wallet company that pace employees in bitcoin >> it has been a very steep learning curve for me. >> reporter: she never owned digital currency before this job. now she is paid in bitcoin on the first of the month based on the salary in u.s. dollars. >> if it is $50,000 and i make 25,000 per month, i receive half of the bitcoin on the 1st, the company sets the ri price. they will say this is the exchange rate for bitcoin. >> reporter: employees convert paychecks into dollars with the company covering the conversion fee. this single mother of two has gone all-in with crypto.

she exchange bitcoin for dollars to pay day-to-day expenses, she found a lender who will let her pay mortgage in bitcoin and keep 10% of the bitcoin for retirement >> i'm long term i'm not watching volatility on the day-to-day i'm here for the next five years or decade or two decades that's where i see the opportunity. >> reporter: howell has worked for the firm for seven months. the company's ceo j.p. richardson says this is a way to make virtual currency more mainstream >> i love telling people only invest what you can afford to lose because this market still is early even though we believe in the future of the market, early days and it is still volatile the price is up and down >> reporter: bitcoin has been a roller coaster for investors price reaching an all-time high above $68,000 last november, but

losing half its value since then financial advisers caution to balance crypto with other financial goals and not get in over their heads before investing in crypto, ask do you have sufficient emergency savings arnd disability and life insurance and do you have enough for retirement >> take a breath before pressing buy and consult with an adviser to say is this the right thing >> reporter: keep in mind there are fees with exchanging bitcoin to dollars and tax implications to consider as well. mach managing your finances with crypto does not offer much oversight, becky. >> maybe someone managing their crypto life and do you need to think about anything else?

>> she found a mortgage lender that was going to accept crypto payment, but then the loan was sold to another servicer that is not going to accept crypto she has to come up with another plan for the mortgage. you have on to think about if you are going to have the transaction fees and that could be costly if you are changing crypto to dollars and will you have an employer like she did that will cover those costs? there are so many tax issues to consider you need to work with a tax professional who is familiar and really well versuseed in cryptod manage your financial life that way. >> i think i would point out it is not a currency at this moment you can't have a currency that fluctuates that rapidly. just like i would not invest my money in equity, have a cash cushion so you don't get caught up in the market down turn in any of the markets

>> so very important some financial advisers say it is equal to gambling others say it is the future. you want to understand it. maybe 1% to 2%, no more than that, of the portfolio should be crypto there is a wide range of belief >> i would advise to make sure you have enough to meet your cash flow needs. you don't want to be held hostage with any market. equities or commodities or crypto you need to know you have enough to pay the rent and groceries without being forced to sell at a price you can't afford. >> that cash flow is critical. >> sharon. great to see you thank you. coming up on the other side of the break more about crypto in the 8:00 hour with former s.e.c. chairman

jay clayton. first, the pain at the pump and the inflation and fallout from small businesses. before we head to break, look at the s&p 500 winners and losers >> announcer: your money, your future is sponsored by fidelity investments. make smarter decisions so you can enjoy more of...this. this is the planning effect. okay season 6! aw... this'll take forev—or not. do i just focus on when things don't work, and not appreciate when they do? i love it when work actually works! i just booked this parking spot... this desk... and this conference room! i am filing status reports on an app that i made! i'm not even a coder!

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good morning welcome back to "squawk box" on cnbc live from the nasdaq market site in times square checking the futures they're up 300 points on the dow. dow and s&p are close to bear market territory less close this morning in the pre-market session nasdaq is interesting. nasdaq turned in a pretty good session after all was said and done not much of a percentage again, it is watching crypto yesterday. crypto recovered and held up above 30 the nasdaq seemed to -- it is a

gauge. one thing is not causing the other. both are speculative sentiment at this point. ten then the ten-year which hasn't been the issue with the violent moves in the stock market that gets people maybe feeling a little better with treasuries. the yield goes down to 2.2.86%. crude. we have talked about gas prices. it depends where you are there are places in the mid 5s and $6 if we talk about the national average. >> national average. >> when we get to $5, that will be notable some people think the demand structure is above $5. i don't know if that is true with so many people wanting to travel >> let's talk about the next story. i think this is the same issue of people wanting to get out

we have talked about rising prices an interesting piece about rising rates for teen baby sitters. after two years staying home, parents are returning to office jobs and social lives and competing for part-time baby sitters. they want to get out and go out on the weekends. amid the tight labor market, teens are getting better snacks. asked to do fewer chores and commanding better rates. the site is citing numbers and says average rates are $18.05 are. that is up from $14.02 from 2020 it cites rates of $30 an hour in places i cannot say this surprises me at all on the mothers chat list that we have in our town, there are people saying anybody got a sitter i need one tonight urgent people trading back and forth. i would assume the teens can ask for just about anything. >> you saw the quote.

>> i want sushi. >> order anything you want for dinner you can have anything you want delivered. >> you can watch anything. we have all an of the services. >> you could order anything. >> i used to make $2 an hour as a babysitter. >> 2 >> 2 sometimes they would pay me 3 or up to 5. i would only charge $2 i would get more because i do dishes >> you want one you trust. >> i can remember that >> yeah. when we come back, home sales continue to cool in april as prices hit new record highs and mortgage rates climb details next. reminder, you can watch or listen to us live anytime on the cnbc app

time for the executive edge. home sales in april dropping for the third straight month rapidly rising mortgage rates and record home prices are cooling the u.s. housing market. nation association of realtors -- practice that.

realtors >> not realtors? >> or nuclear. prices rose 14% in april higher interest rates restrained activity to pre-pandemic levels. in the meantime, let's talk about the nfi. the small business future expectation could hit a 40-year low and inflation is to blame. joining us to weigh in on the inflation of small businesses is john hall bryant he is getting ready to host the first global forum on digital assets summit in atlanta later today. i'll talk to you about that in a moment given where we are in the crypto landscape i can't imagine when you were planning that that we would be in for a crypto winter john, speak to the issue of inflation and what you are seeing on the ground when it

comes to the confidence that small businesses have right now. >> you know, i thought i would come in the normal time and just say everybody is depressed everybody is distressed. the average consumer is feeling this deep in your chest because the pressure of all of the rising prices offset income. andrew, this is weird. we have been tracking black and brown business sentiments in operation hope it is optimism which is set or rising in spite of the inflation. it is different from what you are hearing from mainstream majority businesses. one, people see great opportunity more than they see great concern. they had a vc moment silicon valley moment during the

pandemic after george floyd the ppp money. for black and brown neighborhoods, it was venture capital. you have the $52 billion from corporate america that committed to and recognized inequality and created the opportunity for a hand up. they took off like nobody's businessl like somebody believe in me. inflation in the black neighborhood is like saying it's tuesday. we have been dealing with overpriced bread since i was a kid in the neighborhood. that is is not enough to crush my spirit. it is like a ukrainian resiliency god bless what the people in ukraine are doing. it is the optimism in spite of what is coming at them that is what i'm seeing, andrew. it is extraordinary. black and brown businesses still

believe. >> still believe hang on for a second i want to bring in former congress member from florida and msnbc political analyst. i want to talk about the impact on small business. it is funny. there is a unique sdynamic that john is speaksing to >> andrew, that is right it is higher costs like production costs and borrowing costs. that is a serious situation created by monetary and fiscal policy it is hard to say, especially for those of us who worked in government in the past and say well, let's develop a program or come up with a bailout idea. the sad thing for now is the best thing we can do is normalize the stable fiscal

policy that means certainty for the future we know the 2017 tax cut did help a lot of small businesses and get small businesses advantages because we recognize they are the backbone of the american economy congress can work in the coming year or two to extend the cuts and make sure on the expensing and on the benefits for pass-through corporations that were passed in '17 that we keep the policy measures so the small businesses feel more confident and invest and hire for the future >> john, we talked about taxes before and what should happen with taxes are you on the same side with carlos on that >> yeah, actually, i'm having a joe moment right now i do believe that small businesses need more certainty

i think if anybody deserves a sense of not only a break, but sense of even slating, it is the small businesses creating the jobs and opportunity that we want to come back. by the way, i'm sure we will disagree, i can afford to pay a bit more in taxes. i would be happy if i knew it was going for a good cause this country gave -- i'm sorry -- invested $5 trillion? where did it come from taxpayers. it came from you and me. we should have gotten that you take it out. you have to be willing to put it back in. this is greatest experiment on the planet earth america. we should invest in the business that created the business which is this country. we agree, but disagree i actually think that small businesses could be cut a break and should have certainty, but i also believe that people like me and you and joe and others should pitch a bit more in

intelligently to ensure the success of the incredible model. i still believe optimism is out running cost of living i believe it >> carlos, what do you think of the idea that actually from the fiscal perspective we gave too much money to small businesses during the pandemic? twitter will light up that i said that. there is a view that it is actually one of the things that led to some of the inflation we're seeing right now >> well, andrew, i just think that is obviously true these days there is no such thing as free money. we're paying for all of the money given out now. look, i think probably too much was given under the trump administration i can guarantee you that once the biden administration came in just weeks after congress passed the bipartisan basis additional relief package, they passed the american rescue plan

a lot of people say that contributed to inflation certainly the fed policies have done so as well. we have to remember in the future the instinct for congress is let's deliver relief. sometimes that does more harm than good. i agree on revenue we need more revenue instead of taxing income, let's tax carbon pollution something we don't want and use that to extend the tax cuts to help small businesses and individuals who got some sizable cuts as well across all income levels >> john, before we go, you are doing crypto today and crypto has moved, as you know, so much lower. i don't know where you are these days on the future of crypto and future of bitcoin and ethereum and nfts and the like. that's the conversation that will take place where you are

today. >> i can't believe you let me get a pass on the last question. let me say that. i actually agree with him. i agree with your comment of to much money how much water do you pour on the forest fire? we were on a death spiral in many ways. biggest pandemic since who 1125 years you have to put the fire out was it too much? probably you keep pouring until there are no embers. that is another conversation for another day. it is easy to say in hindsight it is too much we're still here as far as the cryptocurrency, you couldn't have better timing for it the discussion of prosperity or protection in reality, you want both of the te tony said it best on the mystery of this. he said if somebody can tell me why the price goes up and other price goes down, i'll buy some

is this an asset or currency or stable stablecoin which is not so stable the comptroller and i believe you have to bank on this because it is part of the future you don't want another country to take the first mover with the digital assets pushed to the side you have to have guardrails because people are on suicide watch, andrew, i said this on r reddit when stablecoin was hit this is not a game some people can afford to lose 10% of the investment. speculation. fine this lie that this is the anecdote to all your problems. that's a lie we need to call it a lie we need to say this is an opportunity, but it has to be properly sorted. an opportunity to be properly sorted.

>> what is properly sorted mean? we did a segment with a woman who is taking her entire paycheck in bitcoin. >> that's just silly i think bitcoin -- bitcoin is not a currency hello? it is a gym membership it is based on hype and use. there is no asset underneath it. it made its way to an asset class. by the way, i believe it has a place in the future. again, people betting rent money and income and net worth and retirement it is soul crushing. knock it off stop saying it people who believe in this and saying it is the anecdote for everything it's not you will lose. nfl players getting their income in bitcoin what are we doing? knock it off >> john, carlos, thank you both, gentlemen. i appreciate it. good luck, john. >> god bless you

coming up, crypto exchange ftx announcing plans for zero commission stock trading on the platform we dig into that story next. >> announcer: executive edge is sponsored by at&t business at&t 5g is fast, reliable and secure our best deals on every iphone - including the iphone 13 pro with 5g. that's the one with the amazing camera? yep! every business deserves it... like one's that re-opened! hi, we have an appointment. and every new business that just opened! like aromatherapy rugs! i'll take one in blue please! it's not complicated. at&t is giving new and existing business customers our best deals on every iphone. ♪ ♪

ant . crypto exchange ftx is making a bet on retail investors by planning to offer zero commission trading on their platform and it comes after ftx ceo bought a minority stake in

robinhood last week. joining us now, fintech.tv founder. what are we talking about here two, three years from now, what does an investment firm look like in your view? is this the future >> hi. thank you for having me. yes. i think the future is about having to be able to do different asset class, especially between tokens and equity at the same time. and i think we talk about token, you going to have a lot of individual customers' accounts and actually be able to have savings and trading from your one, one-drop exchanges, and it's already here, actually. i don't think it's the future. >> and do you think eventually that this company will own all of robinhood >> i mean, you know, it's very funny, because i was thinking in my head, comparing it to twitter, sam already has 7.6,

but at the same time, if you look pat what ftx is doing, it's doing what robinhood probably was already doing but couldn't figure it out. >> but ftx plr annoulready announcing that they're not going to do the most controversial system, they're basically looking for just adoption, a huge adoption of being asset class owners to be able to use stablecoin and have exposure to every token and i feel like whether they own ftx completely or not, or sorry, robinhood or not, they're actually going to have the biggest ftx, and maybe robinhood won't be important enough after that >> it's interesting, so many companies including blockchain or bit coin as almost the center of a lot of their strategy, and

even a company like block, where jack dorsey recently said look, bitcoin, it's going to be a bitcoin-centric future for, for something that you wouldn't think necessarily would use bitcoin. so given the pull back so being people are, you know, jumping on the bitcoin is worthless or headed to zero, no clothes, the emperor some companies are moving forward without even thinking about that it really is at this point like a bitcoin, like a speculative nasdaq stock, is that, does that have to change or >> no, it's a bearish market back in 2014, 2015, and the first time it happened, it was literally embarrassing to say you believe in bitcoin but in '17, the second time it

happened it was like oh, you had something, maybe it disappeared. now i truly believe this is the time people are going to build you are going to see more announcement because the valuation is dourngwn, the prics are better, and slowly this is going to trigger and believe me, in a year's time, you and me would be talking about how everyone and every big bank and institution is jumping back or jumping for the first time on the bandwagon. i truly believe that >> we're seeing more and more adoption, obviously, but it's certainly, bitcoin is still correlated with speculative assets hows to that change? what would cause that to change where it's not a sentiment indicator of money being cheap or of speculation in all different markets? >> every currency, every commodity, anything and everything which is associated with value, a storage value or

cost, it is basically a speculative currency today, like even bath rolls or tissue rolls can be a big speculative currency, which we saw during covid time. believe me, it is actually very, very much driven by the economic trade of this world. it's a basic supply and demand every time we see traditional movement in the market, we see cryptocurrency moving up we saw that during covid times when there was a lot money getting printed, and we suddenly start inflation and more and more people really believing in cryptocurrency so i truly believe there is a whole correlation between the socioeconomic triggers across the glow, related to the currency prices, but of course everything is speculated it has profit associated with

it >> thank you hopefully have you on again soon it just progresses forward, got to have micro strategy not going to change a thing in terms of the amount of bitcoin, i wonder about el salvador >> it's the time it's the time to buy >> you've got to, when you watch it, eyebrows are sort of raised at this time it's crazy thanks >> thank you when we come back, dr. scott gottlieb will join us to tackle the rise in covid cases and talk about the spread of the monkeypox and whether you should be worried "squawk box" will be right back.

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still about two and a half hours before we're set to open but right now we'd open higher s&p up about 40 points and the nasdaq looking to open about 163 points higher. a couple big headlines after multiple days and weeks, starliner launched it has no crew aboard. but if successful, a test flight with crew may be held bit end of the year one test flight had failed to reach proper orbit, another scrubbed because of damaged parts. american airlines has won a court victory over sabre it was found to have been involved in monopolistic behavior an original claim was brought by american airways the cdc has given its

backing to a covid booster shot for children 5- 11 the booster could be given at least five months after the initial round of covid vaccinations or shots. we will speak to dr. scott gottlieb ab gottlieb about how this news could affect the covid front let's get to dom include and the market movers. >> we'll take care of business first. this is not interesting, but we do have some earnings reports coming out first of all, a company that some consider a bellwether, this

is deere those shares are bouncing around between losses revenues came in below estimates. it did, though, raise its full-year forecast for certain aspects of its operations. and by the way, the shares just about flat, but they did say they see bigger picture tailwinds for farmers in the farming industry, despite the fact that those farmers are facing rising input cost and whatnot, but they think the fundamentals are there to keep on doing well. they went from up to about 2% or 3% to down about 1%. the big story in the premarket right now has got to be ross stores within the s&p 500 by far, by far the worst-performing stock in the premarket trade to far. after the bell yesterday it came out and posted a disappointing report for both earnings and revenues

it also said that current quarter revenue in same-store sales could come in below estimates. they're facing tough comparisons this time around last year remember they had stimulus check, a lot more spending from the consumer during the pandemic. maybe now not enough to make those comparisons work ross down about 26% in trading right know and a downgrade of sorts but not really it's amazon, a stock that's been pummeled in the recent selloff, right now, amazon has been removed from the focus list for best ideas list. they still do maintain a buy rating on the stock, and get this, a $4100 price target which does imply a 90% upside. but they think it a's one of th best ways to play the sector

overall. they remove it from the focus list those are some of the big movers right now. i'll send things back over to you. >> i thought you were going to end to something that was -- you said let's get to the interesting stuff at the end >> you're one of the hosts of the show so you have to direct the conversation i just answer the questions and talk with you guys >> oh, no. >> thank you, thank you. it was good to play early yesterday. and i was thinking, wow, this is going to be 20 under then something kicked in the wind, it got dry >> we spoke about the fact that mcilroy, i'd love to see him do well there was pa a photo of him wit his daughter he apparently told his daughter, he said, he goes, hey, look, this is when daddy was good. and it showed a picture of him back then. it was kind of endearing to me

we've interviewed rory he's a great guy if would be fun to he sao ee hid well my big thing yesterday, i couldn't take my eyes off john daley. that was the big story line yesterday. >> he can still play had a lot of thoughts. rory hit a dry 360 on that par 5. you saw that >> 16th hole by the way at southern hills is a 523-yard par 4. for the non-golfers out there -- >> and it's a 625-yard par 5 rory, in recent years, his first rounds, he hasn't been under par usually. that was really different. he was really relaxed. i don't fknow whether, you know it's only one day. i wouldn't want to be chasing mcilroy. >> you still got tiger and

jordan, and you still have that dynamic at play for some of these groups out there right now. i was surprised some of the other players didn't do well >> they played later and it looks like it really got difficult. but it's fun i've actually been at the main bar at st. andrews i've sort of hung out with mcilroy, not just interviewing and his taddad was there. >> i remember that picture you showed me. >> it was cool >> i can't believe, timing because he's not that big. >> how we're approaching our grip, swings >> i don't know. i'm beyond worrying about it when we come back, elon musk calling esg a scam, after tesla was removed from the s&p gloebls esg index. we will talk about that and much more before we head to the break. let's get a check on the market

this is morning. tgif in a big way after this wild week of the markets this morning you're getting green arrows and pretty tedecent once the s&p futures up about 97. >> you're going to need these ines as gas. nasdaq off by about 3.5% we'll see if this holds. "squawk box" will be right back. n top performers today, so you can have more success tomorrow. ♪ one thing leads to another, yeah, yeah ♪ 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.

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welcome back to "squawk box" th this morning elon musk calling esg a scam, saying exxon slated top ten best in world while tesla didn't make the list esg is a scam that's been weaponized by phony social justice warriors joining us to talk about this is martin whitaker. it's a fascinating issue a lot of people on wall street have been talking about it over the past couple days what was your reaction to the s&p taking tesla out of that list >> well, when i saw the reasons for it, which they've been pretty transparent, it sort of reflected what we've been seeing in our own rankings, you know, of the russell 1,000 companies tesla's done quite well on b

beneficial products, but it doesn't do so well on worker treatment, discrimination, h worker rights. he mentions exxon, have improved that performance they have he a fallen to fallen of the rankings. >> a lot of people look at esg and invariably look at the e, environmental. and the question is whether that e is worth more than the s and the g in certain cases and then of course they look at an oil company and say how is it possible an oil company is on this list? >> yeah, yeah, i understand that i can't speak to others'

methodologies, but we don't decide what that is. we ask the american people and to that on a representative basis, across all political ideologies, race, gender, et cetera you look at the top three issues that we measure, fair pay creates jobs in the u.s. and support accountable to stakeholders so, you know, we see broad agreement on those issues, and we just try to let the data do the talking. so i feel good about how we approached it. i can see, esg has, you know, been developing over the 25 year i've been involved in the space. it's moving towards more standards, more consistency. more confidence in the data, but it's not there yet it's got a ways to go, and i think what you're seeing -- >> you see the argument that people are making. >> sure. >> tesla would argue, not wrongly, i would argue to you that tesla's had a greater

impact on the automotive industry and all of the climate-related issues than just about any other company in the business now i don't know, maybe you gave them credit in previous years and they're are not supposed tt credit now i have to think this is political activism taking place. >> look, i think i can understand it, totally but if you're judging a company on one thing, you know , it's climate or product as you say on esg, maybe you come to a different conclusion, but esg doesn't do that. certainly just capital doesn't do that. you have to look across a range of issues that make a company great. and tesla's a great story a ton of jobs, really well on customer treatment, things like that.

but there are other areas where they can improve and if they really want to be a leader if elon really wants to be an american business, you know, leader for today, for the 21st century, you've fwootgot to do little bit more than one thing >> i was talking to an investor yesterday about this, and esg should be thought of more as the representation of a risk profile of a company over the long term, that's actually what it's measuring, that all of the sort of specific pieces, the environmental, the social, the governance, that's the true measure, and he said to me, look, actually, tesla's a risky company in that regard it may turn out to be a hugely-successful company 350 years from now, or it may get bought, or maybe it doesn't exist, but due to the daily headlines you get from elon t has a high risk profile, do you

agree with that? >> yeah, i do. esg, you should look at it as a set of metrics that measure how well a certain company's managing certain risks, things that the market doesn't really have a strong handle on. you have this whole esg industry with data and rankings that gives you a sense of how well a company is doing, and a lot of that is disclosure so if you don't disclose on what you're doing, you're going to get dinged it does not do a good job of measuring impact, when you look at the actual climate impact, we do a great job that may be true, but i think we need a different set of impact counting and measurement to say, okay, does a company really do a great job of responding to or alleviating climate risk or inequality or community health, those kinds of things of the. >> one final question, one of the things you've long talked

about is that customers drive a rot o lot of this and customers want to support a company that has a quote-unquote high esg rating. do you see all the controversy around twitter and elon musk's connection to that and who knows what else, do you think that will actually impact the business from a consumer standpoint? do you think there are people seeing these different headlines arond sayin actually, i don't know if i'm into this company the same way i might have been before >> i think we separate from the ceo. what we two is measure companies. >> but tesla is elon i mean elon musk is the tiegz, is the marketing department of tesla. when you buy a tesla, i think there are a lot of people there to support tess lla, what tesla represents, what elon musk represents >> i would say this,

expectations of customers and workers are shifting people want to know more what's behind, how is the product made, do i feel good you said customers want companies that do well on esg scores i'm not so sure about that i think customers want companies that align with their specific values if you buy a tesla because you think it's a great product, good for the environment, and i love how it treats its workers, or i know that i'm creating u.s. jobs when i buy this product, those are the things that matter to you, go right ahead. i think as long as a company has a good handle on what its stakeholders really want, it will do well >> martin, we can leave the conversation there, we appreciate it very, very much. >> thank, andrew coming up, covid cases on the rise again dr. scott gottlieb will join us to talk about that and the monkeypox. and check out shares of vf

corporation. the company behind the apparel brands like northface and vans and timberland, basing its expectations that inflation will not get worse. share up about 2.3% this morning. and here is today's afterlath lack trivia esonquti what year did big box retailer costco go public paul is about to suffer a shelf-inflicted injury. luckily, aflac will help cover his unexpected medical bills. aflac! maybe you could use the money to buy a step stool. i have a step stool. so why are you climbing a shelf? the stool's on top of the shelf, isn't it paul... (shelf crashing) yeah... ♪ ♪ aflac! what if “just an idea” could become a family tradition?

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welcome back to "squawk box," everybody. here's the answer to today's aflac trivia question. what year did costco go public the answer, 1985 adjusting for stock splits, the ipo price was $1.67 a share. shares of palo alto networks are rising revenue also better than expected, and palo alto raising earnings for the year too, the ceo said a rise in russian cyber

attacks has led to a rise in palo alto's services across europe he was on with cramer last night. meantime, applied materials earnings missing estimates by a nickel the company's ceo gary dickerson saying the company is constrained by ongoing supply chain issues add that company to the list down about 1% in the free market share of deckers outdoor are rising, the parent company of brands likie ugg shoes. and hhoka running shoes was

better the cdc recommending pfizer booster shots for children 5-11 nky x he cdc calling monkebo anmoeypox an arising issue rick perry will be our guest. "squawk box" lob right back.

i'm dan o'dowd and i approved this message. tesla's full self- driving technology. the washington post reported on "owners of teslas fighting for control..." "i'm trying..." watch this tesla "slam into a bike lane bollard..." "oh [bleeped f***]" this one "fails to stop for a pedestrian in a crosswalk." "experts see deep flaws." "that was the worst thing i've ever seen in my life." to stop tesla's full self-driving software... vote dan o'dowd for u.s. senate.

new cases of monkeypox were reported in the uk, spain, portugal, italy and the united states this week it's pretty rare occurrence for a virus that's largely confined to central africa. the united states reported its first monkeypox case of the year on wednesday a man in massachusetts in the meantime, the biden administration surging americans to put covid-19 personal protection measures back in place following research that shows a third of those in the united states live in areas of rising infection joining us to talk about all of this is dr. scott gottlieb he serves on the boards of

pfizer and illumina. and let's start with covid this is going to impact a lot more people at this point. covid back on the rise hotspots in the northeast. the expectation that it may come back in the south at some point, too. i hear the guidelines and recommendations. i don't see anyplace places thae putting back mask requirements or stay at home thing. >> that's right. it's going to be thhard to get compliance with these kinds of thing. it's spreading to other parts of the country. you look at parts of the midwest, minnesota, the great lakes region, wisconsin, the mid atlantic, san francisco, miami, you are seeing rising numbers of cases. there's two schools of thought right now. someone a model at the white house was showing that we're going to have a wave of infection this summer from this

b.2 variant. there's other people, including myself, who believe that this b.2 wave is going to start to decline as we get into the warmer months. we're going to have a low prevalence summer, and then we're going to have to contend with these variants later this fall and that this wave will shortly pass it does seem to be peaking here in the northeast we have not had a wave of infection in any summer. it's hard to imagine why we would have it this summer, not withstanding this is a more contagious variant people who were recently infected with b.1 should have pretty good protection so we should get a seasonal backstop but there are two schools of thought, and it is a bit uncertain. >> scott, the news yesterday from the cdc, just the idea that you should be giving a booers shot to your kids ages 5-11. i look at that and i think, well, i don't know

do i really want to do that as we're heading into summer if i think it's going to be a bigger issue in the fall? >> people need to judge their circumstance a lot of camps have required kids to get it before they come to camp. it's going to afford you five, six months of protection it's not going to be, they're not going to be initially eligible for it. so the sequencing does work out in terms of getting the shot now and getting the shot in the late fall that might be reformulated to protect better against omicron. a lot of parents have head the decision not to vaccinate 5-11 yi 5-11-year-olds after thanksgiving we saw a rise in vaccination rates heading into thanksgiving, and after thanksgiving it fell off, and we haven't seen a pickup in vaccination of 5-11-year-olds. >> what abouthospitalizations?

it seems that things have gotten so much milder that maybe more parents h parents have concerns about vaccinations rather than hospitalization from covid >> hospitalizations are down in many parts of the country although are you seeing them pick up in the northeast because there is a lot of infection around i think a lot of this mildness, some of it is the inherent mildness of the particular strain but there's a lot of immunity in the population and people who are getting infected now are people who have been exposed in some way they're not immune naïve individuals. some children still are immune naïve upwards of 75% of kids have been infected with covid. i think that's probably high there are still kid whose are immune naïve and vulnerable. for them, vaccination can be very important >> what the heck is monkeypox, and do we really need to worry about this >> well, look, i think now that

there's been community spread it may be hard to snuff this out. i don't think it will be a major epidemic there are so many cases now that are disconnected it is spreading in the community and it has a long incubation period there may be a lot of people incubating the virus, there are probably a lot of people who went undiagnosed or misdiagnosed because doctors weren't looking for it it does suggest the spread right now is pretty wide >> that concerns me. i mean, what is this thing what happens if you get it >> well, look. it could be dangerous. the case fatality rate for the particular strain that seems to be spread someis 1% to 4%, it's disabling virus that can last two to four months you get fever, lymph adenopathy.

and you have vesicles for two to four weeks it's a significant virus i don't think it's going to be widespread in terms of an epidemic in the order of covid for sure, but we could get low-level spread there are anywhere from 5,000 to 10,000 cases in the drc. there are cases that are endemic, and now that it's spreading in europe and appear fossappears to have gotten into this country, they're going to try to vaccinate, it's not a vaccine that a lot of people are going to want to take. not a widespread epidemic at this point, but this low-level persistent spread, cases popping up here and there, outbreaks that could be, you know, a risk to individuals and certainly a headline risk. >> hey, scott, i just wanted to go back to the issue of covid

peaking in the northeast right now. a number of big corporations in new york city planning or were planning to bring people back full time, oftentimes five days a week in the office some of them scaling that back some not apple on the other coast reversing its plan a little bit. what are you advising ceos in this moment over the next two or three weeks about how they should be approaching this, for those dare i say white collar workers this the office with a mask on or not and how you see testing m this environment working or not working. >> rook, i would say watch the numbers. if the proposition that this is going to be, this isn't going to be a big wave this summer is right, you should see week over week declines in new york. so you're seeing it in the tri state region you want to see continued declines i think if we're two weeks from now and we see sustained

declines in case, we could go ahead with plans if you, if you continue to see rises in cases in the tri state region or it doesn't level off, i think that second possibility that there is going took wave of infection this summer starts to be more realistic. i don't see that unfolding i it is a model out there. we need to take it seriously >> okay, scott, thank you. obviously, we appreciate everything as much as i miss you, i'm glad we don't have to talk to you every day now. >> thanks a the lo > . coming up, rick perry on pain at the pump and later, rethinking esg. and gurelations. and former fcc commissioner jay

claypool will join us. "squawk box" will be right back.

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tamping down on inflation. here's jim last night on mad money. >> he needs to act and act now he can go big, do 100 basis points, and he should, because we need to break the back of inflation before it becomes too great on the economy everyone should understand the urgency of the situation >> cramer said the long earn the fed entertains smaller rate hikes, the more likely the u.s. economy will see a crash landing and continued surging inflation, and i'm sad to say that i'm in agreement with jim, but i also think that by doing that you will also -- look, i think you're going to get a recession no matter what you, do frankly the question is how long can you play this thing out? and can you somehow make it marginally softer or not, and i don't know i think the idea that you can somehow land the plane and it's

truly soft seems almost like an impossibility at this point. in this is back to watching inflation numbers like this. and by the way, inflation, cpi numbers already above 8% if you listened to what we heard from walmart and target this week and other food production places, inflation, there is more of it in the pipe. it's still working its way through the pig. we haven't seen the highest levels yet you're likely to get more, and i think jay is there >> you mean working its way through the pig. >> what did i say, snake working its way through the pig? >> i don't want to think about what's working its way through the pig. i think the pig is working -- how would you like to swallow a pig whole? that's a pretty big snake. >> how wide can you open your mouth? >> they have those -- did you ever

ever own a snake, cosorkin >> i want to know how would you handle inflation >> why do you care what i think? >> i'm having a conversation i'm serious. >> after what we've seen of powell, we've had others on many, many times, it's like, yeah, we need to pull back we've needed to pull back, and i don't know how bad, i think the whole notion that after what the fed has done up to this point and now we've got to destroy the economy to sort of, you know, cover their tracks for being way too profl gat in everything that they've done, yeah, i guess it just doesn't seem, that's why i didn't comment on it, it's like, yeah they do need to do that. probably was a mistake when he told leisman we won't do 75. >> i don't think he didn't say

he wouldn't do it. >> where's your vigilantes where are they in >> the reaction in the bond market is kind of demanding more until the last couple of days. >> it's a very tough job when, when to the only tool you have to tackle inflation is to kill the economy. it's just not the way to -- >> but that's what the fed, it's a very strange thing to say you have to kill the economy i was going to say after steve liesman asked that question and he answered it, two things happened he did clean up those comments in an npr interview later where he suggested that it wasn't off the table. >> not npr it was market place. >> market place is on npr. >> yes, but it's a separate company. >> and then, and then ben bernanke, i don't know if we showed the tape. he actually said that he did not

believe 75 was off the table at all. so i think you could be headed there at least >> i think what, honestly, i think what powell said at the point when liesman asked him is it's not on the table right now. he changed his mind pretty quickly after hearing other numbers that came through. meantime, the ten-year yields came down this week, which is pretty crazy all right. there you go ten-year, 2.87% for the ten-year yield right now. when we come back after this break, former energy secretary, rick perry, will join us to talk about oil and gas prices in fact, oil prices i think this morning are around $111. check out the futures, too dow futures indicated up by about 265 points the s&p futures up by 42 the nasdaq ending up right now by about 180 points. t os tll see if this holds as we

geclero the open and then the close on this friday "squawk box" will be right back.

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former energy secretary, rick perry. also former governor, too. i'll go with mr. secretary you got any sure-fire ways to help americans as we approach the summer driv driving season? >> i feel like telling somebody that we're in mile 21 in your first marathon and the next five miles are not going to be good i wish coyi could tell you that there was some good messaging here i don't see anything that the administration is doing that's going to relieve this, not in the short term, and i don't even think in the long term so this is going to be a brutal summer we saw this coming but, you know, i don't want to get too political here this morning. but this is what we should have expected with this administration when they were

running for office and they said that they were going to go after the oil and gas industry, which is what they've done, whether it was shutting down the xl pipeline, stopping these leases, and diesel prices, you know, that $4.50 plus is pretty tough to swallow at the gas pump but if you're a trucker, i think they're over $5.50 a gallon for diesel and the diesel side of this is really the interesting part of this from my perspective that's heavy crude that you have to bring into the united states, and it comes from the gulf, from alaska, which are the two places that got impacted by the biden administration and now they're down, asking venezuela, a country that's run by brutal dictator in maduro, to help bring this heavy crude in so they've lost the russian market because of what's going on in ukraine, anyway , it's jus an absolute mess and the

american people are going to pay a massive price for it, not only in the price of gasoline but inflation. i listened to your session earlier, and, again, there's just not many good stories out there relative to the consuming public they're going to pay a massive price here over the course of the next months to come. >> there's elections, they come too quickly, sometimes maybe not. maybe not quick enough we got another one in 2024 what, i don't know whether the secretary of energy at this point is going to do, i don't know what the plans are there, but if you were secretary of energy again, how do we prevent getting closer to what europe and germany sfais facing right ? is it an all of the above strategy right now what concrete moves, whether it's the current secretary of energy or the next

one or the next administration or this administration, what should be done because we use so much energy. whether you're powering the grid when you have a strong economy, a strong global economy, can you measure it you can just see it on the dot charts, how much energy needs to be used. so we need it, whether it's hydrocarbons or nuclear. what do you do how do you induce us to not be afraid to produce? >> well, and i think that's the, we have to stand up and tell the truth. and the truth is that fossil fuels are going to be the way that you energize, so to speak, that you power the world it's not, and this isn't just the united states issue. when you look at what's going on there's one tenth of the world that does not even have one electron of electricity.

i miean, it's just, the idea tha people stand up and say we're going to be at net zero by 2050 is either just the grandest lie that's ever been told or these people really don't care about people when you, when you look, and i'm talking about global here. i'm not talking about the united states yes, we're hurting, but thayer a there are people dying, literally dying in africa where they're having to cook with wood or cow dung, and the particulate matter that is caused, the death because of that, the lack of fossil fuels around the globe, that's a stunning admission from my position, i would call them on the left, who say we have to get rid of all fossil fuels by 2050 and these are the same people against nuclear power, which is zero emission, and big h

hydroprojects, which zero admissions you have to either admit that you have some other agenda you can't just stand up and say fossil fuels are bad because of the emissions and they're killing the climate or admit that you've got another agenda here, and i don't flowknow whatt is, but stand up and say we've got to have all of the above wind and solar are fine. but right now they're only 3% of the power in the world so the idea that we're going to make any quick changes and a transition's going to come, but you can't get there. you absolutely cannot get there unless you have nuclear and particularly nuclear i think small modular reactors are the real answer to both the proliferation of power around the globe and addressing the emissions. and at the same time, we can do things, like carbon capture and

sequestration to deal with theque missions, but this idea that we hate fossil fuels, which is the biden administration's story, is tragic >> mr. secretary -- >> for people right now. >> mr. secretary, i'm curious, if trump was the president today, what you think the difference in the price of gasoline at the pump would be. given the demand and given everything that's happened >> that's an interesting question, you know theoretical, we, i don't think we be in a war or be participating in, with ukraine against russia i don't think putin would have ever have gone into ukraine. we would have been continuing to sell massive amounts of liquefied natural gas into europe i think we have been opening up markets probably in india as

well this, this recession that we're facing would not be happening. i think the globe would continue to be growing. there would be substantially more peace around the world. and, you know, i think president trump had a really great vision for the country , had a great vision for the world, frankly. people may not have liked his style, but his policies were great. >> doii do want to read you some data the biden administration in the first year approved 3,557 permits for oil and gas drilling on public lands. that was biden's first year in office in trump's first year in office, first year, back to back approved 2,658 new permits so how do you square that data insofar as this argument that

somehow president biden was doing less than president trump when it came to allowing drilling in the u.s. >> yeah, here's how i would address that when you are a business and you are getting signals from government, which is what, the government sends signals all the time the biden administration clearly sending signals that we don't like the oil and gas industry, and those people making decisions about whether we're going to go drill more, whether we're going to risk more capital, they got the message, and the message was we don't like you, and we're not going to be helpful to you. trump on the other hand -- >> the biden administration approved a thousand more permits than trump did >> let me, let me correct you here the point is that people didn't know how trump was going to

governor they they didn't know what his policies were going to be on the energy side of things. but after he got into office, he started putting his policies into mace, and the oil and gas industry got very comfortable that this guy was going to move forward with us, and we became energy independent at that period of time and the sidea that trump and biden that you're trying to draw a conclusion to is absolutely and totally false. >> all right, mr. secretary, the, i don't know. i can't figure out whether, whether, you know, for a while i thought that the biden administration, and i saw a lot of ro khanna, other democrats, about everything happened, they were pressing the u.s. to cut back even more on hydrocarbon production they were pointing to europe and using actual numbers saying this is what europe has done on hydrocarbon production we've cut back a lot in this country but not as much, and we

immediate need to cut the spigot off more. and that was a badge of honor. there were bragging rights now that we immediate them, suddenly, it's like us we we never tried it's amazing to me it's hilarious but anyway, secretary, we have to run thank you for coming on this morning. good to have you coming up, a rough week for investments and the markets. plus jay clayton will be joining us to talk esg investing the latest financial regulation and etwhher it's woke division we'll see. futures take a look. tou up 289 points. ou up 289 pois . s . . .

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good morning, welcome back to "squawk box" here on cnbc, we're live from the nasdaq market site in times square. i'm becky quick with joe kernen

and andrew ross sorkin it's friday. hooray it has been a rough one. you have the dow and s&p both down this week the nasdaq down by 3 p.5%. but this morning some green arrows if you're looking at the year-to-date, i don't know why we're showing this on a friday if you are looking at year-to-date off the highs, down 15% from the all-time high for the dow, down 19% for the s&p. so we'll steal a little thunder. here's what it is for the year a little steeper declines if you're looking at the all-time highs set in november. if you're looking at the treasury market, you're going to see the ten-year below 3%. that's the big reversal.

we'd been above 3% until we heard how bad some of the news was from some of the retailers, and the ten-year now at 2.875% elon musk responding on twitter to allegations of sexual misconduct, a report in "business insider" states that musk's spacex paid $250,000 in severance in 2018 to a flight attendant who accused himof sexual misconduct. cnbc has reached out to spacex for comment but hasn't received any response but musk himself responded hlate last night saying the attacks against me should be viewed through a political lens, but nothing will deter me for fighting for a good future and your right to free speech. musk also said the alleged incident referred to by "business insider" never

happened >> fascinating i miean, it's hard to know what the truth is it's a new risk profile for the company and whether's political or not, given the attention that's been brought to bear with twitter and the amount of people who may be unhappy with how he's behaved or whatnot, even in that discussion, creates all sorts of a risk for all the businesses, i imagine. meantime, let's get more on today's big movers, dom chu joins us >> this report coming out of footlocker so athletic apparel, shoes and whatnot. a mixed report coming out from footlocker that did report profits that beat expectations, but revenues fell slightly below the mark but sailles at established

locations fell with all of that on balance, you sig see the shares up about 2.5% you see a market downtrend. we'll see if anything can change about that, but footlocker, that's the reason why those shares are up. also, if you take a look at some of the bigger macro themes we're seeing play out. a decent move in any of the agencies after china cut a key benchmark lending rate tied to the housing market for the second time this year. that active liquidity inducement in the market over there has led to gains the shanghai composite is up 1.5% the nikkei closed north of 1%. the kospi up by 1.75%.

generally speaking, the asia pacific side is green. and it's carrying through into some of the u.s.-listed equities here that are in those chinese companies, right if you hook look at some of the gains in the nasdaq 100, many are in that. as you watch what's happening here, we talk about how bad it has been for many tech investors in the u.s., on a relative basis, yes, it's bad, but not nearly as bad as it has been for some of the chinese tech investors. so andrew, yes, a bounce today, but still so much ground to make up for the losses that we've seen in the likes of pinduoduo

>> thank you for staying on point. becky. a few other movers, applied materials of 1.85 fell by a nickel the company is constrained by ongoing supply chain issues, a phrase we've gotten pretty used to that stock only off by about 75 cents right now. less than .75% but if you check out shares of ross stores this morning, they are under a lot of pressure. the ceo, barbara rentler said the period started with stronger-than-expected sales numbers. april was really a tough month the weather was cooler than

anticipated. consumers maybe starting to stop spending especially in the lower income stratas because were you not getting the money handed out by the government as it was before in some stores, the inventory wasn't right ross stores are down by 25%. check out deckers. the parent company of ugg shoes, tev teva sandals, and hoka running shoes. they reported earning of $2.51 a share. they were only looking for $1.32. if you continue to get these tale of two cities when it comes to retailers who had the goods, places where consumers were willing to spend deckers outdoor up by about 16%. >> thank you for staying on

point, becky coming up, companies are facing stepped-up pressure at this year's round of meetings. leslie picker joins us, and jay clayton's going to weigh in after the break as we led to that break check out the shares of deere. although revenue missed. it raised its annual profit outlook, setting a jump in worldwide crop prices and nothing runs like a deere, we'll be right back.

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and with three times the bandwidth, the gaming never has to end. slaying is our business. and business is good. unbeatable internet from xfinity. made to do anything so you can do anything. welcome back to "squawk box," everybody. watching what's happening with futures this morning, okay, maybe a little better on a friday, especially if you are bullish on the markets dow futures up this morning 279. the nasdaq up by 177 get us out of this week already, it has been a rough one. this is about the losses yesterday and then a little more some too we'll continue to watch it as we get closer to the opening bell the. esg remains in focus this year at annual meetings.

a just capital study found that companies are boosting their disclosure >> good morning. annual meeting season is under way as companies deal with esg it is contributing to a jump in k disclosures, looking at three factors, a linkage between esg risks and collusion, in pay met risk and a formal board schedule to discuss environmental health and safety measures. almost one fifth of companies repor reported all three factors in 2022 the industry with the highest proportion of companies disclosing all three data sets was oil and gas, followed by utilities and then energy

services and chemicals the thinking is that companies seen as more pollutive have been targeted after tesla got booted from the esg index, elon musk took issue. these esg rankings, as you guys have been discussing a lot on this show have become increasingly controversial, especially in recent months, guys >> we're going to continue the conversation, thanks, leslie now for more on esg, let's bring in jay clayton, a cnbc contributor. you speak in measured terms. but i get to read through some of your comments you've heard leslie say we've gone from a tenth of companies to a fifth of companies that are

talking the talk ing the talk about esg. two, three, four years from now, do you think we'll be at a half or 80% like so many things, the pendulums swing. there are other pendulums we've seen swing in recent year as a lot of us have noted i don't know if this is in the same category or not is it inexorable or we go to full esg mania in two or three years a lot of people think if you take care of shareholders and customers, the rest is going to take care of itself. >> let me answer that, joe and i think what we've heard this morning, i've had an opportunity to hear a number of your guest over the last hour, is trying to tie these factors,

actually, back to financial performance, performance for customers, rather than looking at them in isolation and what i would say is, that's wr long overdue what are we trying to achieve with esg investing, and i focus on the e are we trying to reward companies for having a good energy policy? or punish companies for not having a good energy policy? you want to feel good about who you are investing in i'm talking about this from the retail investor's perspective. are you trying to drive capital to one industry and away from another in order to effect energy policy, to change our energy mix or are you looking at our energy policy and actively investing to try and forecast where the transition. >>in is going and make

returns. when they pick a product as to which one of those the manager is trying to achieve >> back to my question are we at -- and this is a just capital survey that we just saw. just saw are we at maximum esg whatever you want to call it? are we at the top right now? or are we going from a tenth to a fifth? are we going from a fifth to 100% or back down to where people say yeah, i remember that fad. which way do you think we're headed pendulums swing both ways. there are a lot of things in society right now that some people think have gone a little bit too far in one direction in terms of insanity? >> i think we're going to take a turn, joe. i think the idea that e

investing applies to all companies, across whatever index you want to choose, whether it's the s&p 500, the russell, there are a few industries that really have an impact on e. you would think that that's where we would focus >> why don't you want to talk about the s and g? if you saddle a company with solving all of the e and ss and gs >> it really kind of flies in the face of both academic and a practical understanding of company performance over time. to try and rank a company on those scores on a combined basis and that allocate capital accordingly doesn't make a lot of sense to me active investing, trying to find

output in our markets involve as very deep dive oon idiosyncratic basis. lumping a few of them together, i really don't know people who do that and achieve attractive returns over the long term >> okay, so we're at a fifth or staying at a fifth back to the original question? >> i think we're at a fifth and we're going to go in a more rigorous direction on each of these. look, on g, we have had a huge g transition sar sarbanes oxley there's been a tremendous transition in g. i do not see, you know, a whole lot g coming the u.s. is by far the most rigorous oversight in the world for public companies i don't see a lot here

on s, e and s are very different. they're very different across industries look, i see focussing in the energy industry, the construction industry, the agricultural industry on e transitioning in where we're going. it's pretty darn clear that if you're going to do that right it has to marry up with our energy policy and our energy policy is not something that can you sort of dictate by what i would say is allocating capital our energy policy involves national security, our labor policy it involves our place on the world stage economically so, you know, we're going to start to incorporate e investing with our overall energy. we need more clarity >> we got to go i think. but you're still avoiding the s. is providing a good -- >> oh, no. >> is provide ago good standard of living for an individual and, you know, hopefully running a, i

mean, there are laws against behavior that, you know, that society doesn't want beyond that, does a company have to try, or does a ceo have to weigh in on and try to solve all of the issues that society is facing at any given time and to constantly be talking about talk being the talk about social justice? >> look, the ceo, she or he has to understand how to engage the workforce, have a happy workforce, have a workforce that is, that is committed to the mission of the company there's what all successful companies do that's the lens, now you do take into account what's going on in society to achieve that, but that's the focus you have to have a company mission first. focus on this incorporating all of the factors that are going on in our society long-lasting, well-performing

companies have been able to do that >> all right, jay, thanks. they wrapped me a minute ago we have to do all three. there's an e, s and a g. you like southern hills? i know where you play sometimes did you get to watch any of it yesterday? >> the thing that heartened me most is it looked like rory was free wheeling it playing without fear >> i've seen you swing it doesn't look like mcilroy's swing. you both use a club. i noticed that anyway, thank. >> looks like i try harder and have less effect >> okay t's it's good to have you on when we come back, we're going to talk inflation hedges and what the world's richest people are buying to protect against rising prices.

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welcome back to "squawk box" this morning the rich are pouring money into the most-prized collectibles, art and cars as a hedge against inflation. but are these truly safe havens? robert joins us with the answer. >> good morning. sotheby's and christie's wracking up sales of over $2.5 billion it started with the marilyn portrait that was the most expensive american work ever auctioned. and a monet was above its estimate phillips sold a basquiat it was a 50% gain over its snael

2015 my favorite was the sugar shack, 1976 painting that was an album cover for marvin gaye. cars also breaking records, sotheby'ss selling a 1955 mercedes history does slhow that art prices do rise during inflationary times ap andrew? >> is it just the top of the market or what about sort of mid and

lower parts of the market? >> what's interesting is the lower parts of the market when you had paintings estimated at $100,000 to $200,000, a lot of them went up into the seven figures. so there kind of wasn't a bottom of the market over the past two weeks, because the prices for everything at the bottom just rocketed so we've never seen consistently across the board from top to bottom, just super strong prices, super strong demand, and just everything selling. there wasn't a lot that didn't sell >> except for the nfts thank you. >> except for the nfts, yep. all right, when we come back, futures pointing to gains for stocks but not enough to erase this week's losses so far, the dow down by about 2.9%, almost 3%. the s&p is down by just over 3%. the nasdaq composite down by

3.5% guess what, we're looking up this morning and we're watching shares of amazon this morning, too citi has removed the stock from its focus list but citi also says that macro economic risk has already been priced in. and that it still rates the stock a buy. to stock is up by about 1.5% this morning. we'll be right back. miss allen over there isn't checking lesson plans. she's getting graded on her green investments with merrill. a-plus. still got it. (whistle blows) your money never stops working for you with merrill, a bank of america company.

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facebook's products harm children, stoke division and weaken our democracy. teens blame instagram for increases in the rate of anxiety and depression. it's not great when your customers are voting with their feet and deciding to kind of walk away. facebook's parent company meta dropping more than 26% last week... that is more than $230 billion in market share value. when will there be accountability? how many more people need to be harmed before mark zuckerberg listens? i'm dan o'dowd and i approved this message. tesla's full self- driving technology. the washington post reported on "owners of teslas fighting for control..." "i'm trying..." watch this tesla "slam into a bike lane bollard..." "oh [bleeped f***]" this one "fails to stop for a pedestrian in a crosswalk." "experts see deep flaws."

"that was the worst thing i've ever seen in my life." to stop tesla's full self-driving software... vote dan o'dowd for u.s. senate. welcome back to squawk tesla no longer holds the top spot in cathie woods data compiled by bloomberg suggests roku. the the, arc scaling down. that compares to 5.79 million a year earlier let's take a look one more time at the future this is morning. they are higher.

3% or more dow futures up by 273. the nasdaq up by 175 let's talk now with senior portfolio manager, you're canadian, so you tend not to get too worked up about things one way or another and your take on things right now, you're not in the recession camp why is that? >> well, i don't think we're in a recession yet. for sure we're not going to be able to sustain the growth rates, much of which was artificially generated through that march 2021 stimulus that was enormous and probably unnecessary in retrospect. we're for sure slowing down. i think the impact on the consumer on high energy prices, number one but two, a massive move in

mortgage rates from the end of december to today, you know, in the private survey as we see in real estate. there's a real slowdown in traffic. so i think that everything we're sort of seeing and for retailers you now have the two of the largest employers in the united states, walmart and amazon, talking about too many workers, and the bottom of used car prices seem to be popping, you saw ross with inventories up nearly 60. you don't get rid of excess inventory by raising prices. we are well past peak inflation. certainly, can you see it in the cpe. people can yell, scream and cry about it so i think that holds back aggressive rate hikes as the year goes on, and that's sort of what the ten-year sginis beginng

to tell you. obviously, the big risk is what the fed decides to do. they could put us into a recession. they've certainly done that in the past a fed mistake is certainly a concern. but the data is showing that inflation problems are waning. >> you point to some of the things we heard from the big retailers this week, but we also heard from walmart and target and other stores, too, that inflation is an issue, and by the way, they have not been passing all of their costs on to the consumer yet, yesterday we talked to one who said if they pass on, north of 8% is not the high watermark you're going to be talking about double digit inflation and that looks really likely when you hear this is things like delivery, transportation, the infrastructure that those big retailers are dealing with,

not to mention the food costs. makes me think maybe we haven't seen the peak in inflation >> i think we have the reality is there's no general theory of inflation. economics is much more of a social science than it is an actual science like physics. and so the problem is econo metrics, and economics gone from generally right to precisely wrong. and i think, you know, consumers only have a certain amount of income, even with two or three, growth in wages. the stimulus was an artificial boost in income that was transitory, not permanent. so they can't pay $6 for gasoline, 20% more for groceries and clothing and airline tickets and things like that given that wages are up and jobs are better, you're seeing excess inventories which had be cleared by cutting prices. you're seeing a big slow down in

housing in terms of affor affordability. >> real wages are down because of inflation >> right, that's why you're seeing these retailers like target and ross, the inventories are way up where are the supply issues in i certainly don't see them that hearkens a price cut. >> i've talked to a lot of these companies, and i will tell you the supply chain issues were that they were ordering stuff that was coming in late, so they got shipments late for some of these things they were trying to get ahead of it and were wrong in some of the calls. they were buying stuff that consumers wanted maybe a few months earlier and they changed their buying patterns it is a bit of a mess. but if the supply chain, we

thought they were immune to those things, they are not >> but anyway, so either way, there's only a certain amount of money that the consumer has. even if the wages are falling, right? so there's going to be a choice. it's not, money supply is what causes, increase in the money supply, at the end are the day, you saw a huge surge with that stimulus, but there's only a certain amount of money to be spent, in terms of filling up the car, grocery ies and things like that. i think we can muddle through what is here but you had a lot of, we've lived in policy hell for a little while so whether it's lockdowns or things like that in 2020, we talking about

negative $37 oil and no one could ever buy an oil stock again. and here we are near $120 a barrel for oil we have all these things that seem to change very, very quickly on the ground. so my belief is look, we're not going to grow, not at 11% like last year. and the consumer has been hit by high rates, even though the fed funds rate isn't high, that mortgage rate has had a real impact on the consumer overall so i think we're into this slowdown, and that's fine. that's good. some of the supply complain issues are certainly there in technology and semi conductors, but in some other areas, they're not. slower growth ahead. more normal growth and you've taken the other side of that, and that's okay >> what to you like as a result. if that's how you think things play out, where do you tell people to put their money right now? >> i think growth stocks have

taken it on the clhin since november if you look at a sampling of the biggest stocks out there, it's the cheapest almost, they're cheaper now than in the lows of 2002 you have to go back to 1980 or 1973 to find a point in time where growth stocks were this cheap and had underperformed by th this amount. so in an area where we're growing by a more moderate amount, into the recession, i've been doing this for a long time. and i don't know if they're going to go up today we've had seven weeks of decline for the markets which is the most since 2001. the nasdaq lost a trillion dollars of market cap. i don't flow whaknow about the e days or the next five months the opportunity over the next five years from here is

tremendous >> yeah, i wouldn't argue with that we've seen stocks come down an awful lot. and if there are quality names that you liked 30% ago, why don't you like them now. >> sure. >> why don't you like them now, it's 30% cheaper. >> right >> yeah. >> you should like them now if you liked them before. >> and so much of that has occurred since the beginning of may. and then you bought stocks, you know, a stock we own that's having a good morning is palo alto who the hell knows why it was down that much everything has been trading as a basket, whether it's expensive technology swabs, macro has dominated the trading and there have been so many babies thrown out with the bath water. there is a whole lot of dog

poo-poo. >> that's some ugly bathwater. it's got babies and dog poo in it >> i haven't had a dog poo in the bath, but indusvery had a b poo in the bathwater there are secular opportunities that are down a lot. in give me an another couple of pacific names. palo alto is one you think is a baby that shouldn't be getting thrown out there are a lot of issues of growth companies getting hit with supply chains versus growth companies that are not in that position is this a hardware versus software situation >> certainly in terms of software, you're looking at software companies down to prices we saw in 2019 and multiples that are 25, 20-25%

below the lows of 2020, and a business model especially in sas which proved itself to be in the last down turn yeah, i think that for sure in that case i'd be a little more wary on the semi-conductor side. but overall, it's very much stock specific at this point in time whether that's in retail, you know, there's a lot of carnage over the last few days in retail the consumer staple stocks which are supposedly the most defensive, were crushed. not everything in the consumer discretionary staples area deserves that. i look forward to some of the restaurant companies, lululemon, when you talk about forward multiples in the 20s, it's been a long time. and i own that and palo alto

i should disclose that is the world going to go to hell in a hand basket and are they going to collapse? i think there's a fairly long runway for growth. at these multiples, hold the multiple and continue to execute, and that's what we're looking for leerhere, and they' come way, way down when i look at a cereal company trading above a microsoft, you have to shake your head and say, well, that's the opportunity for longer-term investors. doesn't mean tomorrow -- tomorrow's saturday. it will be a fine day. but it doesn't mean monday's going to be a great day tor necessarily august, but five years from now you'll be pretty happy. >> noah, thank you and that was fun we'll see you later. coming up, in case you missed it last night, jim cramer is calling on jay powell to act big and act now. he will join us now to talk

about his call from mad money last night >> he needs to act and act now with a much tougher stance he could even do 100 basis point hike, and he should, because we need to tackle ilaonnfti before it becomes crippling on the economy. everyone should understand the urgency of the situation (vo) iphone 13 on us. on any unlimited plan. for every customer. with plans starting at just $35. all on the network more people rely on. ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪

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jim cramer joins us now, got a lot of attention last night with your call at this point for the fed to constisit up and take noe >> i remember watching you guys when target came out and obviously walmart. i was aghast the amount of inflation in the system that they had to eat is extraordinary. and i just think home depot was able to put price increases, they were put through giant price increases. we got to break that i think powell may not understand this. we got to break it and break it now. this is the week where you realized it is inflamed and not going away and i was just kind of, look, i was shocked. i just didn't know that it was as bad as it is. and i think that powell's got a, maybe he doesn't read these, but becky, it's in every aisle the inflation's in every aisle

in double digits, too. >> do you think after steve's question, and then remember we got one day bounce, and then it's just been, everything's hit the fan since then do you think the market realized that and, do you think he should have gone 75 back then >> yeah. >> or at least you think the market would not be where it is if he had been, done more? >> i think the market would be higher i think the market would, you'd start recognizing that the long-term value of some of these tech stocks is in tact because we're fighting inflation i think it was a terrible thing. i think powell totally brlew it this is the quarter where you realize, you know what stocks are not worth as much as i thought because we're not fighting inflation, and that was that moment where you had that little relief. but we don't want relief

we want the end of the endless spiral for the people who work very hard and got a 5% increase and going and paying 9% for everything as it is, gasoline, and brian's covered gasoline so well, but that's inflated, but boy, i hope powell goes and reads that target, that was devastating, just devastating because you just saw it, it's out of control >> right, and by the way, the retailers didn't, the big retailers, didn't all pass it on this time around, but you can bet they are working on it right now, because they can't get hit again like they just did with the shares down, 27% for the week >> every company is going to raise between july and september. everybody feels they can get away with anything everybody has prices that are just so unbelievable and they're just getting worse and worse, and powell's like maybe we need to do 50, let's keep it at 50. why did he say that?

if jay powell is listening, which he's probably busy doing something. those conference calls, every single one of them shows you that we have a run away train of inflation. and that anybody who think weisk it with 50 basis points is silly. >> we're going to see some tough negotiations between the big retailers and the packaged goods companies, the food companies, and beyond about how much of that gets passed on and through the pipe, where stuff stops, where it doesn't that could be interesting for the stock market too, who has the bigger flex here >> big tug-of-war. we saw the collapse in the transports, i think that's, again, because people recognize, that we're going to have to go 100, and that commerce is going to slow, look at united parcel,

look at fedex. we have to go 100. people are going to start realizing that jay powell is wrong and he will switch direction. he has to. things are bad >> how much of that has worked its way into the market, how much of that is what we've seen this week in big declines? >> a lot of people went out of highgrowth because they think jay powell will be too growth and a lot of people wanted out of the cyclicals because of what's happening in china, the chuck roberts interview. >> which was a great interview, by the way >> thank you this was the week where you had the brian cornell interview, basically just said, look, guys, we've lost control and i hope that jay powell understands, we've lost control. >> wow explains a lot of what we've been seeing this week. i don't know what it means for the week to come but jim, thank you >> he's got to come out and say, you know what he's got to do,

be becky, he has to come on air and say, it's hotter than i thought, i can no longer take 100 or 75 off the table. it was hotter than anybody thought. it was hotter than brian cornell thought, hotter than doug macmillan thought. >> it tells us something about how quickly things are moving. and you mentioned hot, it's going to be 96 degrees this weekend. >> april was a terrible month in this country, a horrible month >> rain every day too. >> when it's 96, the plants will all wilt >> unless it's raining and gets watered. >>t i have to get a sprinkler system april was horrible i'm talking to jay stay focused >> sign up to the cnbc invest club to find out more or point

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hour i should say, to the opening bell futures are looking up, 200 points up on the dow, s&p 500 up about 34 points. let's talk markets with the chief investment officer of santo global advisers as well as a cnbc contributor good morning to both of you. we're all trying to figure out what to do on this friday morning. ryan dietrich writes this. the s&p 500 is about to be down seven consecutive weeks, first time since a record eight in a row since 2001 the only other time in history was eight in 1970 and seven in 1980 is it possible, is it possible, despite jim's call for 100 basis points, that we might have reached a bottom anybody want to take that, anyone want to vote in favor of that

brenda >> well, i think it's hard to know exactly when the bottom will be felt here. i will say we're in such an extraordinarily unique moment in history, i want surprising there is a lot of uncertainty out there. if we do start to see inflation come down, and we're hearing a lot of signs now, especially in the retail sector this week about inventory starting to build up, including in the goods sector, that should flow through in terms of discounting happening and potentially have a positive impact on inflation, meaning causing it to come down a little bit so i think that is what it's going to take in order to move the market here and ultimately allow people to step back in when we do have a clear sign that inflation is beginning to come down. i can't say it's going to be next month but given the signs we've seen in the goods sector, it suggests it could be close. >> do you agree, or do you think this is a sign actually that we

have runaway inflation >> i think if you look at the recent data, inflation is very strong and we're all hoping that inflation comes down but right now you still have supply issues in china you still have a war going on. and you have prices going on if you look at stocks that are supposed to the strong ones, they got sold off. i'm not sure we stop bleeding yet, i think there's some more bloodletting to go it's different than in the past, we're still in a rising inflation environment. if the outlook is a year or longer, there's definitely some great opportunities. but right now things can get a lot cheaper especially as we're looking at the fed to raise rates. to jim's point, is the fed rate going to be 100, it's going to be more than people expect and

the fed is not going to back off. people are reacting seven weeks in a row to the uncertainty. >> why are you so convinced that inflation will come down quicker? >> i think if we look at the health of the consumer and the health of the labor market, those two things are incredibly strong and stronger than they were pre-pandemic by many measures. so i think, you know, in our view, that will allow us to avoid a recession, which everyone is talking about right now. and certainly there are risks, particularly if the fed does act too quickly, and also if we look at what's happening with financial conditions, they're absolutely tightening giving what's going on in the stock and the bond market. we continue to think the backdrop is strong now, it can't stay strong forever in this environment. but i think the significant shift in spending pattern could result in excess inventories that we're seeing and that could

in turn start causing inflation to come down a little bit. >> brenda, sarat, thank you both a quick final check on the markets. have a great weekend, we'll see where things stand i'll see you from davos, switzerland next week. >> see you on the airwaves >> it's supposed to be raining there. no snow. >> oh, no snow, that's good. safe travels, see you next week. good friday morning. welcome to "squawk on the street." china cuts a prime rate, hong kong up 3% overnight plenty of earnings to watch on what is likely the seventh consecutive week lower for stocks a decent open, china's central bank makes an unexpected rate cut as growth there crumbles >> and shares of amazon are down 30