and fast food news we have an update on mcdonald's proxy battle with carl icon. we'll tell you about a possible move by the largest shareholder of wendy's as well it's wednesday, may 25, 2022 and "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm becky quick with joe kernen. andrew ross sorkin is reporting live from davos. we'll get to andrew in a minute but we want to look at u.s. equity futures the dow futures down by about 2 points s&p up by 6 points, the nasdaq up by 13

i guess the good news the nasdaq has stabilized but it comes after a decline yesterday. big concern about what's happening there. looking at shares of snap in a second but the treasury market, the ten year sitting at 2.749% so yields continue to shrink as people push into treasuries as a safe haven. check out what's been happening with shares of snap, another story we're not seeing a bounce back but at least a stabilization perhaps. but again, stock is up by just 1% after a decline of 43% in yesterday's session. the company's profit warnings sending shock waves through social media stocks as well. pinterest down by 23%. facebook down by more than 7% and twitter fell by more than 5% so that continues to have just a lot of questions about whether this is a snap-specific issue or a more broad issue of recession

coming and lower ad sales across the industry andrew >> that's the question here the last 24 hours. lots of big tech companies talking about the economic ram fig fications of the macro environment for the advertising industry as an indicator of where everything else is headed. we have a big line up today in davos. in a few minutes we have pfizer's ceo joining us on set we have cisco's ceo chuck robins as well. might also talk about china, which is a big topic here in davos. and north ireland chairman glen hutchins on the markets, the economy, maybe a little crypto, fed and more, becky. >> andrew we continue to watch what's happening in terms of the economy whether there's a recession or not we've heard from retailers and it's a tail of two cities.

this morning shares of nordstrom are higher, the earnings beat estimates and they raised their full year outlook. the ceo said the company has experienced a surge in demand from shoppers refreshing their closets for long-awaited occasions. the stock up about 9.6%. that stock is still trading below levels from last week. before we got the reports from walmart and target walmart and target each had their worst day since back to 1987 but again, this is the question that we keep trying to figure out where we stand in the economy, what consumers are willing to spend on and what they're not. urban outfitters seeing a slight rebound after last week's plunge the ceo said rising cost offset the revenue gains they had seen. that stock up about 3% right now. this story has been in the back of my mind.

the shortage of a lot of stuff you need for ev. it's going to get worse, i think. the ceo of stellantis is verbalizing that a new industry warning, speaking to media after announcing a $2.5 million ev battery plant in indiana. he expects shortages of the batteries and raw materials needed to make electric vehicles in the coming years. it's going to slow the availability of evs well into the year 2028 in his view. stellantis is the world's fourth largest car maker formed by the merger of fiat that made sense if you made fiat you want to call them something else fiat chrysler and france based psa last year. we even talk about sending up, you know, bruce willis and ben affleck -- it's going to be hard

to get everything you need, it's difficult, the mining, it's not that clean there's a finite amount. and we need, if we go to 30, 40% evs, it's just not -- do we have the -- >> you're not talking about a supply chain issue that can be cleared up in the next year or two, he's talking about out to 2028 at this point long-term problems and hurdles to overcome. >> running out of fossil fuels to not having enough of this stuff. we all need to do zoom >> on another topic -- >> need zoom, can't go anywhere. >> i'm headed to do a panel in a bit on the metaverse maybe that will be the solution. >> there's your answer. >> in the world of autos, lyft planning to slow hiring and cut costs. i should say auto adjacent in this case. the ceo announcing the measures to staff in a memo yesterday

it's looking at a dropoff in optimism for tech stocks zimmer said there are no layoffs at this moment planned >> one of the tech companies not laying off, that's good to hear. apple's development schedule for the iphone is slowing down because of china's lockdowns the issues are affecting one of the smart phones for release later this year. the company has told developers to try to make up for lost time. the giant has warned that the china lockdown could impact revenue by up to $8 billion on this quarter stock's flat right now you know, apple is one of the great signallers to what's happening in china a lot of folks will be watching that when we come back, the ceo of

pfizer will be joining me here in davos on day 3. the company rolling out a big announcement this morning to sell back drugs at low prices to poor countries we'll talk to him about that and what it means next as well as where covid stands, monkeypox, and so much more right after this this thing, it's making me get an ice bath again. what do you mean? these straps are mind-blowing! they collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery. and you are? i'm an investor...in invesco qqq, a fund that gives me access to... nasdaq 100 innovations like... wearable training optimization tech. uh, how long are you... i'm done. i'm okay.

welcome back to "squawk box," right here in davos, switzerland. covid cases are declining, but now monkeypox is making headlines. joining us is the ceo of pfizer. it's great to see you, albert. i want to get to those issues but i want to start the conversation with the announcement you made here this morning about offering different drugs to lower income countries at much lower prices. >> thank you i'm very excited about it. what we announced today was that pfizer will provide all the protected medicines all, to all low income countries plus low income countries graduated from this status ten years ago.

so 1.2 billion products we'll give at cost today i stood together with the president of rwanda, malawi, there are other countries together with us that they signed already a letter of intent to be the first five countries to pilot this. >> tell us, though, about the thought process. as an economic situation, in terms of how you think about it for pfizer is this going to cost you? these were not huge markets for you to begin with, is this to prime the market in the future how should shareholders think about it >> we are doing the right thing. i don't think stockholders need to worry about it's about making a dream happen in 2019 when i took over, in january my team made plans for the next five years that we made public to the company, one was by 2023 we will reduce by 50% the number of people on the planet that they cannot afford their medicines. today we are going to achieve

that by handing 1.2 billion people that couldn't afford a single one of them but now can be afforded to all of them. >> let's talk about covid, rates are increasing in the u.s., but what do you see happening? the good news is the death rate is lower but i wonder if you think there's going to be an up tick in the next vaccine this fall? whether people are going to take it, given what's happened here >> i think people will take it i think they're waiting to get a new updated vaccine. it's a mistake now not to take what's new i think in the u.s. we're peaking and other countries have peaked and come down and we'll see the waves for the near or medium future. >> you said the near future, in your mind, when you think of covid-19, what does that look like to you? >> i think if people are asking when the virus will disappear, i don't think that will happen i think the real question is,

when can we get our lives back i think we can get it now. because i think we have the means, the vaccines, we have the means, treatments, no one should die. >> how good is the next vaccine going to be against infection? >> i'll wait to see results. we have not seen it yet. i think we're going to do well. >> when do you have to make the choice to go ahead >> this is something that the fda will recommend to us they have already scheduled a committee of experts where they are going to discuss how the new vaccines for the fall should look like and then follow these recommendations. >> it's based on ba.1, not ba.2 does that matter >> i think there's no big difference between ba.1 and 2, maybe big difference for 4 and 5. we'll test for that. >> there are lots of reports about people taking it and it's saving lives but also the

rebound, people taking it and then getting it back and getting it worse what do you think is really happening? >> first of all, i didn't think they are getting it back and worse. i thought that getting it back it's always mild from any source of information we have so far. the only data we have available are from our clinical trials over there we were testing we were certain if someone had the virus. on the other information, people are reporting. it's very, very low. i'm still getting this anecdotal report the report is it's saving their life in the first time -- >> part of the question is -- >> -- better impact. >> people are now taking it wildly, not just necessarily people who are at risk at severe disease and the question is whether that change it is dynamic in terms of what you're seeing. >> i don't think people are taking wildly. people are taking after it is

recommended. and it is recommended for people that they are having high risk and the high risk is well defined and there's a lot of americans that they fall under, half of the americans almost are falling under the high risk definition of the approval that we have gotten i think rightly we are taking it and saved a lot of lives. >> talking about high risk, where do you put monkeypox in the risk category and what does that look like how does that play out in your mind. >> i don't have all the information in if front of me, what i know i wouldn't worry too much doesn't mean we should relax we should monitor and see where the situation goes clearly doesn't worry as much as other viruses, including covid so it can become a pandemic, so you never know and clearly there are solutions for this one if needed. >> i wanted to ask about the reputation of the pharmaceutical industry if we had this conversation before the pandemic, the

reputation was down in the dumps as you know, but recent polls suggest it hasn't changed. what do you think? >> i'm surprised what you say, we monitor this very clearly and we see that after the pandemic, not improving, skyrocketed i think there's a reputation because we're tangible provided to society, a reason for our existence. we explain to all that the position to bring to societies is strong. that doesn't mean that we will hold this high position just by doing nothing. we need to earn this trust every day. things that we did, for example, today for access with this initiative will take us -- will give us a nice boost and it should. >> finally let me ask you this, as you know there are debates here at the world economic forum and during the pandemic about i.p. the i.p. discussion has gone on forever. in a way you're trying to solve it today but there are others who said you should give away the

intellectual property, literally give it away to others to manufacture and the like you said early on in the pandemic that would be a mistake for lots of reasons. we're now in a very strange environment where there's too much vaccine in certain parts of the world but other parts of the world there's not enough that's where i was going to bring you. what do you make of that, and also related to that, china? >> let's start with the first one. right now they're available hundreds of millions of doses free not at low cost, free. and the u.s. government is providing those hundreds of millions to 92 countries in the world. they have difficulty to give them, so that's another profound proof that there are other things that need to be done. what we should worry to create medical infrastructure in the countries so they can do vaccinations they were not in a position to organize vaccination campaigns and there was hesitation in these countries higher than

others. >> was that something you knew was going to be the challenge? >> i told many of the people raising the issue of i.p. i ensure them we will have in few months hundreds of millions available. but the problem will be people will not be doing it so they should start educational campaigns and start building infrastructure on the ground unfortunately maybe i didn't insist much, they didn't do it, we all should share the blame but countries were not ready to receive vaccines china. >> yeah. >> what do you think we were talking about the apple news and you are seeing a lot of companies that do business in china, the slow down is real there are not enough people vaccinated there they are not using your vaccine for the most part your anecdotal reports about things happening, what do you think is going to happen >> i know our vaccine is not registered there so it cannot be use. our medicine was registered in record time and they are using

it and they are ordering right now. and, you know, everybody worries about, first of all, the health of the population there. and we -- i wish them the best >> what do you know about their vaccine? >> i don't know much because they haven't published much. so we haven't seen peer reviewed magazines, articles a lot. >> albert, thank you appreciate it. >> thank you guys, back to you. >> andrew, thank you so much when we come back, fast food news, an update on carl icon's activist company against mcdonald's and we'll tell you why wendy's shares are soaring in the market "squawk box" will be right back. dave doesn't need a posh virtual receptionist, because he cloned himself.

while his clone watches the phones, dave can work on his code. and lead his team. dave trusts his clone like he trusts himself. so, in summary, we're going to sell the company. who's in favor?... perfect. but if cloning isn't an option for you, just get posh. virtual receptionists who can answer and transfer your calls, because you can't be in two places at once.

mcdonald's looks poised to prevail in a proxy fight with activist carl icon, that's according to a wall street journal report that shows salties are far ahead of icon in the vote who nominated two directors to the board icon has challenged the fast food chain over its supplier's treatment of pregnant pigs icon's campaign was considered a long shot as it didn't present obvious financial upside to shareholders and he had a tiny stake in mcdonald's, meaning he needed to convince a large portion of shareholders to support his cause. >> it's actually his daughter's cause, i think. >> and pregnant pigs are at risk of being bullied and hurt and injured by other pigs out in the general population so they put them in these small areas. so it's a -- >> jane wells did a package

where she went out and talked to farmers in iowa because in california they have said that they have to follow these rules. and iowa farmers, some of them said forget it we do our best we're trying to take care of them. others said we could do better. >> i think you can always do better >> yeah. shares of wendy's in the meantime surging in the premarket after a filing revealed the largest shareholder is exploring a potential deal with the fast food giant the fund holds a 19.4% stake in wendy's. they say a deal to enhance shareholder value could include a major acquisition or merger. when he speaks, people listen, especially with that almost 20% stake. wendy's shares are up by more than 10% this morning. andrew >> thanks, becks i'm going to be taking off for just a little bit for a panel here at the world economic forum. it's focused on the metaverse.

maybe we'll bring you a little bit of that as well with chris cox who runs the metaverse project. and we have special guests including kchuck robins and gle hutchins e sd i just a moment back from thnaaqn new york city. we're coming right back.

good morning and welcome back to "squawk box. we're live from the nasdaq market site in times square. looking at the markets this morning, not much happening. saw a pullback yesterday, nasdaq down about 2.3%. this morning indicating up by about 27 points after a decline yesterday. dow futures are flat down by 8 points s&p up by 5 points. joining us to look at the market and the technical aspects, katy stockton

katy, we have come down to support levels you've talked about for quite a while and they've held at this point last time you were on you said, yeah, they might for a while like maybe for the summer. but more lasting lows might be in the offing at that time so this is not -- this might be a respite but not a bottom still feel the same way? >> yeah. same way you know, i actually don't think they'll hold through the summer months market right now, as you can tell as characterized by weak, inte intermediate and long term momentum what has changed is we've seen short term momentum improve incrementally with the backing and filling, which is what i call it, that day-to-day volatility we've been suffering through. it's yielded a consolidation phase in the major indices, and that has happened near key support levels for the s&p 500, we've been watching about 3815

and support for the nasdaq 100 is essentially in line so there's no wiggle room to the support levels if we saw down side follow through that was meaningful, meaning we spent more than just a day below these levels that would mark another breakdown and another breakdown would increase risk yet again. >> at this point you just don't know >> you know, nobody knows. we're trying to put the odds in our favor here and be respectful of momentum. i'm sure you heard tom demark speak recently about signals that the down side is exhausting itself we've seen some extreme moves. that's carried over to some of the sentiment gauges we track. we have an extreme in terms of an oversold condition and rather than seeing that as something we want to buy into, we're recommending that our clients use that strength that we do get it, as a selling opportunity and

otherwise keep in those losses to manage risks. >> and the correlation with crypto has not surprised you it surprises some people, it's like one to one almost the same thing is happening there. you can put bitcoin -- everything you said you can insert bitcoin and be kind of the same story >> i would say that volatility has been lower for bitcoin and in a way that gives me more confidence in the fact that we should see some kind of oversold bounce here for the equity market i think we'll see something worse from bitcoin if indeed the market is ready to breakdown yet again. looking for a short term bounce even to carry over to bitcoin and that would be welcomed by sellers i would imagine. because there's a lot of people out there that missed the breakdown, rode the stock prices lower and now would be eager to reduce exposure at a high erprice, i think. >> the recent move in bonds and

the ten year, should we take solace in that we didn't go to three and a quarter, we went the other way is it merely the rush to safety because of what's happening everywhere else or is there some type of change and what you feel for where the ten year is headed >> you know, it came into that resistance three and a quarter on the ten year and it was a natural place to see this kind of pull back so it seems though most like a technical move and it does give us some solace in terms of there's somewhere to hide. so treasury bonds have been acting better, of course, than the equity market and we've seen the down trends there really stabilize. i think the indication we have suggests that it could last for maybe two, up to four months or so so we welcome having an opportunity to invest somewhere that feels a bit safer, having the equity market in terms of the down side momentum having alleviated there >> all these things are affected

by inflation and inflationary expectations so where can we look for your technical analyst of how long lasting and how bad this is going to get do we look at commodity indexes or specific parts of the spectrum of commodities that we follow what are you seeing there? >> it won't be predictive in terms of telling us when it's going to end unfortunately but we can identify the prevailing trends which are largely higher. there are some areas, like lumber prices that have pulled back but we are bullish in the metals complex, bullish on crude oil still, natural gas the energy sector keeps working. and as much as it looks like it might be a bit stretched in terms of the uptrends we welcome something to do on the long side of the market. so we're respecting trends there and obviously that does impact

the inflationary data going forward. >> can you follow mortgage rates? >> i can, and i do >> when will they -- i saw an article, because of the tight supply, it's unclear where -- what level of mortgage rates you need to see this demand cool off. it's really almost 18% price gains and it -- people still can't find a house and they're willing to pay up. >> yeah. it's really amazing. and obviously there's the correlation there to treasury yelled so we translate our biases there to the mortgage rates. i do think it's an extreme move and obviously it will correct at some point but it doesn't necessarily seem imminent. >> when it's all said and done and we're talking to you in 2023, will you be calling? will you be saying that the s&p and dow are maybe in a cyclical bull after being a cyclical bear of 20% or more

we still haven't closed at 20% losses in either but figure we will. >> i figure we will. i'm looking at this as a cyclical bear as you mentioned within a secular bull. and the cyclical bear has room for down side follow through on the back of an oversold. we're looking for a bottom to be established closer to september or october based our indicators and some people say that would make a lot of sense and that's great too. so we're hoping to see signs of a bottom that are long term in nature but right now we don't have them. >> 3400, 3500 on the s&p is the terminal bottom. hopefully it's not terminal. >> the 3500 level is about a 50% retracement of the up trend off the pandemic low i think that might be a little bit conservative in terms of establishing the end target for the bear cycle 3200 is the secondary. i know >> do you have to say these

things it's what you did last time. i'm trying to get you to go -- >> we appreciate it. we want to hear what you feel. >> 3200 might be conservative. what's aggressive? >> i think worst case scenario should be about 3200 that's a secondary level below 3500, based on an important retracement level, which you know i love. so that to me seems like a natural place for this to end. but if we see signs of down side exhaustion that are long term in nature before that we'll get vocal on that and i'll keep you posted. >> we try to listen to people who look at it from all angles jeremy segal was on yesterday saying he thinks we're closer to a lot. is there anything you see in your charts, you're watching that say he could be right in this scenario? >> to look on a bright side, i don't know how bright it is. the high growth arena has become oversold from a long term perspective. and that carries over to the small cap benchmarks like the

russell 2000 index and emerging markets. we have long-term oversold conditions in those areas. doesn't mean you rush out to buy them but it could create a bit of a floor and even start to improve their relative strengths we've seen seen inkings of that so looking for stabilization in the deeply oversold areas of the market we're not seeing that in ernest yet that could be the first step the catch is the major indices are heavily exploosed to the long-term index. >> if someone said at a cocktail party, which side do i diversify stocks you would tell them, what, add to it as the summer progresses, do some selective buying hang in there we may get to 3200, but the specific areas

you feel are more -- show more value or have less down side, what would you tell people >> if you recall we launched an etf in mark called t t.a.c.k. it has exposure to alternative asset classes. so it invests in them at a time when the market isn't firing on all cylinders. right now it has a little piece in energy and then some treasury and gold exposure that counts for about 50% of the fund. that to us is the way to do it, the way to navigate through these difficult markets in terms of down side volatility for the major indices, there needs to be a way to limit draw downs and the best way to do that is looking at alternative assets. >> katy stockton we've had some time and we used it well with you this morning. thanks, good to have you >> thank you

>> still to come this morning, the ceo of fin tech company chime will join us with his read on the consumer at this point. and later we'll talk to mark mobius and a reminder you can watch or listen to us live any time on the cnbc app 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.

let's get to a developing story this morning, a mass shooting at an elementary school in uvalde, texas 19 children and two adults and the gunman dead. wendy joins us this morning. this is a story the whole nation is watching. what can you tell us this morning? >> reporter: becky, good morning to you somber stormy night in texas, a fourth grade teacher who was shot protecting her students has survived. but with others still in the hospital the death told could still rise here. another mass shooting in america, this time shots fired and lives lost at an elementary school. >> there was a massive incident

at robb elementary school. >> reporter: according to the texas department of public safety, 19 students, second through fourth graders and two teachers were killed governor greg abbott said the gunman abandoned his vehicle, walked into the school before midday tuesday, armed with a handgun and possibly a rifle and then opened fire police swarmed the campus. >> they locked down the school really quickly and they started evacuating children out through breaking windows and pulling children out through the windows and getting them to safety. >> reporter: but the school not the only crime scene. >> in addition to that, it is being reported that the subject shot his grandmother right before he went into the school >> reporter: the gunman identified as salvador ramos, an 18-year-old resident of uvalde, investigators say he is among the dead and acted alone the deadliest school shooting in

texas history. >> my heart was broken today >> another community pleading for prayers for more lives cut tragically short >> reporter: investigators are still searching for a motive but texas rangers confirm the suspect bought the two guns either on or just after his 18th birthday that's the latest here livein uvalde, texas. back to you. >> wendy, thank you very much. again, this is a story the nation is watching we're waiting to hear more and continuing to think very deeply about all the families affected. when we come back we'll get a key read on the consumer from the ceo of the fin tech company chime. the federal trump administration commission is launching an investigation into the ongoing baby formula shortage and whether mergers within the industry contributed to the problem

the agency will also crack down on what they call price gouging here in the meantime, abbott says the fda will allow the release of 300,000 cans of a specialty infant formula for children in urgent medical needs. and starbucks is selling its juice brand to bolthouse farms details of the deal are not being disclosed. starbucks looks to focus othn e growth of its core coffee business and improving its stores we'll be right back. lanning eff. this is how it feels to have a dedicated fidelity advisor looking at your full financial picture. this is what it's like to have a comprehensive wealth plan with tax-smart investing strategies designed to help you keep more of what you earn. and set aside more for things like healthcare, or whatever comes down the road. this is "the planning effect" from fidelity.

dave doesn't need a posh virtual receptionist, because he cloned himself. while his clone watches the phones, dave can work on his code. and lead his team. dave trusts his clone like he trusts himself. so, in summary, we're going to sell the company. who's in favor?... perfect. but if cloning isn't an option for you, just get posh. virtual receptionists who can answer and transfer your calls, because you can't be in two places at once.

on monday, bank of america ceo brian moynihan warned us about the possibility of a

recession, given the pace of consumer spending and the tight job market the fear is going up but the reality is nobody is saying there will be a recession in 2022 or 2023 yet. >> what is brian moynihan saying >> we think the economy is no og there's going to be a recession. we'll have to see if they can get the balance right. >> after yesterday's big retail selloff, things are looking a bit different. major retailers like target, walmart and bed bath and beyond are down on 52-week highs. chris, thanks for being here, for those who aren't familiar with chime, why don't we talk through. are you offering banking services to people left behind traditional banking services people who make up to $100,000 a year, often living paycheck to

paycheck what are you seeing in terms of what your customers are doing right now? >> and before we get started i want to send my deepest condolences to all the families in yew auvalde we have tons of members there. our hearts are bleeding today, and i hope we can figure out as a country a way to solve this crisis and allow our kids to be safe at schools. >> i hope we can, too. >> we still see a very healthy consumer i think the market turmoil has not yet made its way into the sort of average, every day consumer we're seeing robust balances, robust transaction activity, people spending again, going out to restaurants we're seeing higher amounts of total transactions spent on

fuel, not surprisingly >> right you have to spend more when it's at the pump. >> and given the current low unemployment rate, we're still seeing very robust levels of direct deposit of people's paychecks into chime accounts. it will be interesting to see how the next stix to 12 months play out >> were you big winners during the pandemic how many users do you have at this point >> as a private company, we don't announce our active user base publicly, but that trend has remained consistently, opening up hundreds of thousands of new accounts per month. from a business perspective, the advertising market has really opened up quite substantially. so we're seeing some of the best performance we've seen in recent times. you've seen that in some of the results of the social media companies and so forth >> i was going to ask you about

that how do you make your money early paydays for those with direct deposit they can go negative balances. no credit checks that seems to work well when the economy is booming, not so well when there is a recession. how do you make money? >> we partner with banks that hold our members' deposits in fdic-protected accounts. the way we make money is not through net interest margin or big deposit collection and lending. it's really more of a payments business our users use us for their every day transactions and we make a small part of that transaction from visa when the card gets used at the point of sale. it's very much aligned with the consumer

we monetize when they use us as the primary bank account and not have to rely on fees >> i get that, i think in times of a downturn, again, it's a lot tougher if you're not doing credit checks on people before you give them credit cards the consumer has been flush, the consumer's still really flush. the reason we've seen the turmoil is there's a concern that there's a recession around the corner how do you think about that, especially when you're doing it as a software company and not a bank >> keep in mind that most of our transaction activities come from debit cards. the money that's being spent is good funds we're not extending credit to the vast majority of our users this is non-discretionary spend. so even in difficult times, the

business model is really resilient. people still have to put food on the table, buy groceries and go and pick up food and all those every day transactions continue to happen. so it's a resilient model even as we face potential headwinds in the economy >> should we think of you more as a visa or mastercard type of company? >> well, we partner with visa as our primary network. but we're more like a consumer fintech that monitors our relationships primarily through the point of sale and transaction activity and revenue we earn from visa when the card gets used avevery day. >> you've seen gas go up have you seen more spending or higher ticket prices when it comes to groceries? where is the consumer spending less or is the consumer spending more and keeping up with the rising

prices in. >> inflation is a tailwind people are naturally spending more, and a lot of consumers, hopefully, will continue to earn more as well we're seeing broad, continued strength in spending across the board and haven't yet seen any sort of down turn because most of our spend is non-discretionary, every tday transaction. >> you have an ipo that has been extended to the second half of the year >> we never announced an ipo we announced plans to become ipo-ready, which we've been successful at. as you may be aware, in the second half of last year we raise add substantial financing round, so we're very-well financed we have no need to tap the public markets anytime soon, and i prefer being a private company and being able to focus on the

needs of our members as we let this market settle down hopefully over the next 12 months or so >> you would not be the only company thinking that today. chris, thank you for your time today. we appreciate it it's good to see you >> thanks a lot. later today we're going to get the minutes from the latest fomc meeting we'll have the latest on the fed straight ahead ♪ music ♪ ♪ dream, dream when you're feeling blue ♪ ♪ dream, dream that's the thing to do ♪ ♪ music ♪ when you see value in all directions, you add value in all directions.

accenture. let there be change.

good morning i'm becky quick along with joe kernen andrew is hosting a panel at the world economic forum in davos. let's look at the futures. things are under a little bit more pressure than we had an hour ago dow futures are down by about 100 points, the s&p down about 7.5. and the nasdaq, dlooking down

about 19 points. the yield has been coming under pressure people looking at this as maybe a safe haven the ten-year now under 2.8%. we do have a couple corporate headlines to bring you starbucks is selling its evolution fresh juice brand. the deal is expected to close later this year. it comes as the ceo, howard schultz focuses on improving operations at the stores nordstrom shares are up sharply. this comes in contrast to some other big box retailers. they are raising their forecast after a quarter that saw sales jump near 24% and exceed the pre-pandemic levels. the company says it has not yet seen inflation impact consumer spending people are looking to get back

out there, fancy clothes for fancy events and that stock is up by 10%. high gasoline prices will not keep americans off the road during memorial day weekend coming up. 39 million people will travel 50 or more miles by car this weekend, including joe it's close to pre-pandemic volumes, even as gasoline prices are higher by about 50%. prices are up here, prices are up on airline tickets. if you want to travel, and people do, they're going to have to pay >> i'm going to be clark griswold, starting tomorrow. more than 50 miles >> all i can think of is christie brinkley. >> yeah. i'm not worried about that it sounds very romantic and fun right now, and that will last tomorrow, like about 45 minutes, and then it's going to be like -- >> talking about two hours out of it. >> then it's oh, my god. it is fun.

i do >> car rides for about 12 hours. >> stuckeys love when i mention them, flying js, and it is romantic there's a lot of crowded areas in the united states, but there's a lot of open space as well it feels, sometimes it is a little invigorating. it is. the minutes from the last fed meeting will be released later today and the markets will be looking for any clues about how high the rates could be going. steve liesman joins us i understand people buy bonds when there's flux in the other markets, but 275 is not supposed to be where we are, steve. >> joe, we have come down quite a ways we're going to look at the minutestoday from the fed's early may meeting. is any helight they can shed.

how high will the fed go three views, the neutral view, 2, 2.5%. the a, 2.5 to 3.5% and then there's 3.5 or higher, which is a lot above neutral, the one the market fears most minutes of the fed meeting will be scrutinized. meanwhile, market pricing as joe was just talking about, has sharply brought down the estimate of how far the fed will go into the middle category. the terminal rate is falling from 3.41 from the august contract, it's now at 295 for the july contract. about 50 basis points has been baked out of the outlackook forh fed. citi writes about the minutes. particularly hawkish would be if

officials are relatively dismissive of the tightening a couple more meetings, following which the fed should showdown its hiking pace that would be in line with those who want the fed to stick around after september. even an ambulance with a siren on slows down at intersections joe? >> thanks, steve does anyone remember japan and 20 years of begging for any type of price firmness at all inflation is no bargain either, it's not good for anyone i'm trying, to i wish theres wiwthere was a silver lining. i won't say transitory, but maybe it doesn't get to the

worst case scenario that people are talking about. >> you're going to have to have help from the transitory camp if you're going to bring inflation down one of the only good things i've heard in a long time is maybe some of the retailers may have overordered, they may have excess inventory, and that could mean mark downs ahead. that could be an expected decline in goods inflation ian shepherdson is writing about this, that you are going to have a summertime decline in goods prices, the chinese lockdown that's going to hurt us. you still have russia and ukraine and the impact on food and commodities that's going to hurt us and wages that are rising and that's also going to be additional pressure it's unclear, joe, just how far the fed has to go. you let people who have a good argument that you have to get to 4.

you have to do 2 or 3% inflation. you could make that argument larry summers hasn't backed off at all and then you have guys like bostic, let's get to september and stop and look around, what's really interesting, joe. i'm just looking at the curve here the market is baking in a rate easing in the second half of next year f yo if you look at the januarile, it's lower it's baked into the back end of the market >> the elusive soft landing. it's like a unicorn maybe, to go just to the right amount where you don't kill the economy but moderate the price increases i guess can be done. >> i think of it like the

gymnasts in the olympics who stick the landing. >> stick the landing that's rare, too >> yeah, but then you get a gold medal, right >> yeah, you do. i can't imagine any of those things the balance beam is what gets me thanks can you imagine doing a flip and landing on that thing? it's like you're just asking for, anyway. thanks can you imagine trying to do that >> easily. i used to take gymnastics, so. anyway, some data on the state of the housing market just released let's get over to diana olic looking through these numbers. what you have learned? >> we just got the weekly applications report. another drop in demand, and this after a report yesterday showing a far wider drop than expected in newly-built homes i want to take a look at what was a red hot housing market

huge gains in home prices are simply pricing buyers out. take a look at what has happened, just basically to the $300,000 house in just the last three years. in may of 2019, a 30-year fixed and then the rate of 4.33% the monthly payment, just $1192. than is not including taxes and insurance. now in 2020, that same house, 5% more expensive, but mortgage rates fell at the start of the pandemic so the monthly payment actually dropped by 2021, we're really surging. prices up 15%, but rates dropped even further, so the monthly payment only about $100 more then you fast track to this pay with prices up another 21%, and mortgage rates surging the monthly payment is now almost $800 a month more than it was in 2019. supply of homes for sale is rising a little bit, but not where we really need it, which is on the lowest end of the

market, becky >> that's the question we keep coming back to at what point does it stop people from buying houses, and you have to compare rent increases in what we've seen over that period of time, too. >> exactly rents are surging, so you're looking at more people who want to buy they also have gotten to the point where they don't want to catch a falling knife. they just don't want to buy when they think prices have peaked. usually prices will follow we'll see if that happens over the next couple months but so interesting how quickly in one month this market has really turned. >> great to see you. coming up, snap's warning, sending shockwaves through the digital advertising world. big names like meta, facebook, twitter, all falling we'll speak to flow code founder tim armstrong about the warning and the landscape. and then we'll talk about investing opportunities with mark mobius.

"squawk box" will be rate back indeed you do. indeed instant match instantly delivers quality candidates back in two seconds, eric will realize (laughs) they're gonna need more space... gotta sell the house. oh... open houses. or, skip the hassles and sell directly to opendoor. wow. get your competitive offer at opendoor.com

what's it like having xfinity internet? it's beyond gig-speed fast. wow. so gaming with your niece, has never felt more intense. hey what does this button do? no, don't! we're talking supersonic wi-fi. three times the bandwidth and the power to connect hundreds of devices at once. that's powerful. couldn't said it better myself. you just did. unbeatable internet from xfinity. made to do anything so you can do anything. whoa.

social moedia giant snap ha its worst day tuesday. names like meta and apple all

down consider bably after their 52-week highs. let's bring in tim armstrong, the former ceo and chairman of of aol is this really a sign that there are going to be a lot of problems when it comes to everybody in the social media universe are advertisers pulling pack or not? what do you think? >> yeah, becky, first, great to see you, and i think the nasdaq 100 is roughly down 28%, 29% this year. if you look at the snap-specific results, i think that's more individually about snap and what their guidance was and things. if you take a step back from tech as an investor, i mean, one of the things that you have to do is step back in the batter's box at this point, even though

it's really hard and there's probably going to be a lot of fog on the economy when you look at the overall tech results right now, the average after the stock market has had corrections of this size, and i think we're in the top seven corrections of all time right now the averages going forward are typically three years, like a 35% return over the next five years typically. 80%. so when you look at tech as a macro play, i think the tech stocks are down enough now where you can start getting in the batter's box and looking at different companies very carefully. the balls are slowing down can you start to see people's results, even though i think it's very bad news across the board for tech over the past three, six months, you're in a good place to invest and when you're dialing into

where ad is going, you see alphabet down less than the a. t average tech stocking. when you get further away from things like search and some areas of social media, the results are less clear and so i think you're going to see the winners win more and the places where there's less clear r.o.i., we see the consumers out and about doing things, werehether it's concerto sports the consumer sentiment is not as negative as wall street. hopefully it holds up. i think it's really about the winners winning. and as an investor, it's about, you've got to be in the batter's

box whethen the stock market is down this much you don't have to swing at every pitch. >> that's a really interesting perspective on this. is part of the problem apple's change in privacy meaning that some of the smaller players are not going to be able to crib say consumer information off of it, so they're not going to be as effective? is that a big part of this or is user engagement part of it >> user engagement at the big platforms got pulled forward about five or seven years. so i think there's going to be some natural burn down on engagement as consumers start to go out to the real world more. the results side, we have partnerships with almost all of these companies and do tie advertising with them and content partnerships and i would say apple's change in our results for the

non-alphabet-related properties probably went down by 20%. in some cases more so i think the issue on the data side, number one, i said this last time i was on if you're a ceo, i would walk right into my cto's office today and ask, show me our crm database and our first-party data and most of the companies we see a flow code for instance, they're not keeping track of their first-party crm, and they' they're not keeping track of their data in the real world as much that's number one. number two is i think you have to think about your customer acquisition channels i don't know if there will be recovery in the social media sector, places where data really took a hit but i think customer acquisition costs are going to continue to

go up based on the platforms that got hurt by apple's changes. in a strange way that's going to push advertisers back to the things they have a lot of clarity on, which are lakeike t alphabet world and i think clarity on data, crm and customer acquisition is going to be a big focus for investors going forward. that's what they are worried about in the tech sector apple's changes didn't help that >> i don't want to get bombarded all the time i don't want to give you my information. i'm traying i'm trying to think about where this plays out i get way too much junk mail and spam sent my way anyway.

there are companies i can think of, small companies that maybe was on and i followed their ad to the retailer that i wanted to b buy from and i didn't want to give the company i never heard of my information. so if they gave me the opportunity for apple pay or amazon pay, i did that some of those companies wouldn't exist if it weren't for those other companies at that control the customer that's not going to change, right? >> i do think one thing will change long-term, becky, and you brought up something very specific on the consumer experience, which is friction. you know u, the companies that e introducing a lot of friction, there's not a two-way exchange, apple has done a very nice job

you're kind of trapped in that ecosystem. and over time, there's a new ecosystem developing right now where you'll have a healthier direct relationship with corporations >> i don't want a direct relationship with a bunch of corporations the give-and-take is i wouldn't have bought those things if you made me type my information in again. >> and, again, becky, i think the change is going to be over the next five to ten years is the same ease of use in frictionless technology that you feel in apple, and web three will allow you to have that same frict frictionless experience. there's no going through third parties on things. i see it in our business in web three, and you're going to be a happier consumer, not a less-happy consumer in five years, with these changes.

not just the changes at apple, but i think there's going to be a whole new fleet of companies developing around frictionless, high-value companies and one thing i'd say to you, if the companies you're dealing with, with apple are paying a 30% tax in the app store, if you are in a frictionless atmosphere and you got some of that 30% back, you'd probably hikelike t. >> i don't want a direct relationship with all of these companies. you're not going to give me back 30%. you're going to pad your own profits with it. if it's 10% discount i hear your point, tim, but i'm not convinced that i want some of those things, and i do as a consumer appreciate some of the privacy standings that are being given. and i get it there's nothing, there is no such thing as a free lunch, and we've gotten used to what we

think are free lunches in a lot of cases, but it's come at an expense of what we're willing to give up with privacy >> what i'm saying is there's ways to do the aggregation for you that companies can do that are still going to be highville high value you won't feel the friction. you'll have to trust me on this. i'll come back in three to five years, and we'll have the conversation again i think the challenge is going to be doing it in a way where you don't feel any hassle. >> i don't feel like i'm getting ripped off and a company that i trust. we'll keep following this. good to see you, tim armstrong >> good to see you, becky. >> coming up, chuck robbins. we'll talk supply chain woes, china. and in the next hour, north island chairman, glenn hutchens

joins us live. i saw him on the floor the other night. >> at the celtics game >> yes, and it's a huge, huge game tonight, and i don't know what the hell he's doing over there. >> maybe he's sleeping rate after this interview >> maybe time now for today's aflac trivia qstn.ueio what is barbie'sofficial birthday the answer when cnbc's "squawk box" continues 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! how will your business adapt to change? you could hire an office full of peyton mannings.

what's up, peyton? good morning, peyton. hold for peyton. they'd huddle.... welcome to the peytonverse. such a visionary. game plan... you go. no, you go! and call audibles... double our investment in omaha! omaha! omaha! omaha! or you could use workday. omaha. the finance, hr and planning system used by over half of the fortune 500. for a be-agile-like-an-mvp world. workday. for a changing world.

now the answer to today's aflac trivia question. what is barbie's official birthday the answer march 9, 1959. on that day, she was unveiled at the new york toy fair. >> la-ti-da. still to come, mark mobius on where he sees global opportunity and the best ideas for a volatile market. plus we'll talk to cisco ceo,

chuck robbins, live from davos stay tuned, we'll be right back. (vo) while you may not be closing on a business deal while taking your mother and daughter on a once-in-a-lifetime adventure — your life is just as unique. your raymond james financial advisor gets to know you, your dreams, and the way you care for those you love. so you can live your life. that's life well planned.

dick's sporting goods releasing quarterly results.

hey, court >> hi, good morning, becky dick's sporting goods putting up a better than expected quarter, handily beating consensus. sporting goods retailers' comparable down. the industry was lacking for mlooking for a 11% drop analysts estimating the fullf full-year profit to be 1256. really all that dick's sporting goods says here is that it reflects the impact of evolving macro economic conditions. inventory, too, up more than 40%

compared to a year ago so got to listen to some details, the commentary from executives on whether this inventory was planned, is it re-establishing pre-pandemic level or are things just a little dislocated. really pretty dire guidance when compared to the street >> you have to assume that this is very similar to what we heard from walmart and target where the inventories are up sharply part of that may be that they were trying to pull stuff forward, as you mentioned, before lockdowns in other praiplaces or the supply chain. in the case of dick's sporting goods, you know how people were out buying anything and everything for outdoor stuff, for sporting goods for inttheir kids everybody was going camping.

they were hanging out outside. if you bought three new coolers that you took to the beach last year or you bought the beach chairs or you bought, you bought all their is stuff last year, a this could be another case of the consumer changing so quickly. obviously, the market can't figure it out either we heard from nordstrom that they are up, the shifting consum consumer and the retailers not being able to keep up pace >> last week, last week it seemed like maybe we starting to pick up patterns with walmart and target sort of operating m the same sub sector, running across the same issues, but then we had a low result from tjx

it's just so tough to figure out exactly what the consumer is doing. these retailers are working their way through it and frankly, i'm not sure how to forecast in this environment this becomes even trickier as things change to try to figure out and anticipate how things are requesgoing to change. >> the only thing they can do is forecast it's going to get more expensive. i got an e-mail from target that 40% off on all their patio furniture. we're going to have to discount this stuff to get it out we know gas prices aren't going down it's going to be worse than you're thinking right now. i don't know how much, i agree with you i don't fknow how much can you anticipate the stock is now off by almost 19%. thank you, and we will check in with you >> thanks, becky quick look at the fouutures

the nasdaq, week after the snap-in social media angst veteran investor, mark pmobius we got a technical look at things from katie stockton earlier, mark. and probably, i didn't see it, her basic contention is that we may have an intermediate bit of stability here but an eventual 32 or 3400 level on the s&p. would you be a buyer of anything in the united states right now as far as equities, mark >> not yet i think that we've got a little ways to go i think nasdaq and bitcoin are leading indicators, and they're down into bear market, 30% down. so i think we're going to get

tare there with the s&p it may be time to lkook at individual stock, but best to keep cash on sidelines you have mexico and brazil doing well whereas most are moving down it's now pick and choose where's the best prailace to be >> the headlines, it's across the board. it's hard to imagine what we're dealing with and watching. and let's just talk about, you know, we've still got ukraine. you saw the taiwan comments the other day. george soros and, you know, george soros, but making comments that we're on the cusp of what could be a global conflict that ends in, you know, something horrific

davos, the mentality is very, very pessimistic and sort of downbeat is this good for sentiment in that it create as opportunity to buy some of these things or why can't we just look it straight in the face and athings a say things are really troubling in the whole world right now. >> russia could do anything at any time, and of course the u.s. is not going to give in. they're going to be supplying ukraine with more and more weapons, so that is going to go on and it's just a problem, you know, the real issue is, is there going to be a mistake being made, and therefore, we've got to run for cover and probably the best place to be is where you're not going to get possibly hit that would be asia, africa, latin america, places like that.

but otherwise, it's very, very pessimistic situation. and of course you can tell by looking at the market, all the defense stocks are up. dramatically, in the face of really what we're headed into a big bear market. that tells you something >> so with that in mind, what are your least-troublesome regions to be investing money right now? mark >> well, the bottom line is that the consumption is not going to disappear. the u.s. is going to continue consuming and importing. maybe on a lesser level, but they will continue to do that, and these countries like china, india, brazil, et cetera, bigger economies, they will continue to consume. so i think there's going to be tremendous opportunities in this bear market, so it's going to be

an opportunity that probably can't be missed within the next month or two months. so we just got to roolook at wh the markets go i think things will move down more, but now ale's the time too thinking about what to pick up >> what are your favorite areas? we used to talk about spamming the globe, when we talked about hormel s spamming the groenlt. >> tech, is going to continue to hit these companies around the world. and companies supplying the technology will do very well that's one area. because of covid, everybody's aware of health and health measurements, so that's an another area we are lwill look t in some of these countries hlike

india, consumption is moving up, particularly in the property area it's time to look at construction materials that are, you know, moving, areas at that are very important area for india, and some of the other countries. >> do you, at this point, think that china will become, over the next two, three, four years, more of an enemy, are they a frenemy at this point? even we've got to get, can't we all just get along i don't know they're going to do what they're going to do in terming of human rights and everything else we can't afford to just say all right, we're not going to trade, we're not going to yimg port, we're not going to export, that's not really option i but there are certain things that could get us to that point

if president biden's serious with his remarks the other day >> there are certain forces that work in china that work in the u.s. you have people who want chinese goods who could go out of business if they don't get chinese goods. on the other side you have chinese exporters who want to trade with the u.s but you have the military very concerned about the military power of each side so, and taiwan, i think from the viewpoint of the americans, it's not negotiable but for the chinese, it is dpoeshable and they want to get their hands on taiwan. this is a major, major sticking point. if it comes to the bottom line, the u.s. could impose incredible sanctions on china, importing less or at least putting a strict tariff or high tariffs on chinese goods, and that would be the beginning of the end in my

view so this is something to watch very, very carefully the bottom line is china continues to export, america continues to imforport from chi. we have to watch that very, very carefully to see if the u.s. begins to react in a different way and if china becomes more aggressive regarding taiwan >> where are you rate now? >> i'm now in dubai. i just got in from london. >> i always like to ask you that vicariously. i'm in times square. i hiklooik it here. >> nice and warm >> coming up, cisco kroechlt chuck robbins. new projects means new project managers.

you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today. this is lisa. whose resumes on indeed match she's a poshteria. virtual receptionist. when you're busy, she'll answer your calls and assist your clients. you can't be in two places at once, let posh answer. posh virtual receptionists. what's on the horizon? the answers lie beyond the roads we know. we recognize that energy demand is growing, and the world needs lower carbon solutions to keep up. at chevron, we're working to find new ways forward, through investments

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

welcome back to squawk i'm right here from a panel at the world economic forum

we're going to bring you highlights about that panel about the meta verse but up next, cisco ceo, conhuck robbins. we'll ro we'll rook at the futures. dow off about 171 points s&p off about 21.5 points. we're coming to you live from davos, wz.

when it comes to cybersecurity,

the biggest threats don't always strike the biggest targets. so help safeguard your small business with comcast business securityedge™ it's advanced security that continuously scans for threats and helps protect every connected device. the choice is clear. get unbeatable business solutions from the most innovative company. so you can be ready for what's next. get started with a great deal on internet and voice for just $49.99 a month for 24 months with a 2 -year price guarantee. call today. another crazy day? of course—you're a cio in 2022. but you're ready. because you've got the next generation in global secure networking from comcast business. with fully integrated security solutions all in one place. so you're covered. on-premise and in the cloud. you can run things the way you want —your team, ours or a mix of both. with the nation's largest ip network. from the most innovative company. bring on today with comcast business. powering possibilities.™

welcome pack to "squawk box. tech seeing hard times as this month's selloff continues. and supply issues. joining us right now on set is chuck robbins, cisco ceo it has been a tough couple weeks. you have been living through the tough times yourself, and here, the mood, i hate to say it at least from my perspective, seems almost downright dour. where are you? and also, since you last reported your earning, what are you towactually seeing? has anything changed in. >> relative to davos, last time we were here, we all optimistic. i don't find it to be all that dour, i think there's a lot of uncertainty right now. i haven't heard anyone, that's

not true i've heard a couple say they thought we were going to go tru through the recession. another thought we in end times. >> talk about the business >> we're not going to talk about our current quarter. we haven't seen anything from a demand perspective that would signal that we're heading into some recession we're not seeing it. and i think that sometimes we tend to create these situations, especially if you have, if you have a high number, a huge number of business leaders who brief we're going into a recession, what are they going to do? they're going to start cutting spending and everything else which leads us into recession. >> but you come leehere and hav

meetings back to back to back with many of your clients. >> i do. >> do they say they're in a holding pattern >> no one said that to us. >> talk us to about the plsupply side >> everybody says how's business and i say we're building a backlog. supply side has been challenging for sure we did earning, the russia is independent. but we saw the first month of it, and he woulwe saw the apple. however, we've been in the midst of these problems for so long. we've been doing a rot olot of on our own you get into august, september,

i think there's different non-semi-conductor aspects i think we should see a gradual improvement starting in the fall >> we looked at this apple news and everybody asaid oh, goodnes. if they're having problems how prolonged? >> that's what we don't know we were very cautious with our guide for next quarter while they say they're opening june 1st, we don't know what that means we don't fknow when that would imply we're getting our components we'll see. >> have tarehere been conversatn with the government? >> the chinese government? >> yeah. >> no. we have a lot of redundant suppliers, and the problem is generally power supplies we're just like everybody else,

waiting to waiting to see when they open up >> one of the things likely to create inflation for the next several year is the de-globalization that's taking place, saying, okay, we can't be, china can't be our only supplier, we need to set up shop in india, mexico, we need to do stuff in were sill how brazil. that as a that's a conversation i've heard a lot. >> it was designed for efficiency and cost. and now we have to design it for search efficiency as we can, but resiliency, more security. and redundant sources for these components we're also having torook look ao we design our products

time to market, low cost, which you pick a component supplier for a product. you build it in. if they have a problem, you're in trouble what we've seen over the last 18 months just forces us to change everything about it. we build a product now, we're going to build two versions. >> how much more is that going to cost? that's the inflationary question >> the inflationary issues today are unrelated to that. ly you have incremental costs. the issue now causing inflation. if you look at the macro electronics industry, these components are going into everything and the price increases because of the demand into the suppliers have just been extraordinary >> right >> and so's not, it's just, because they can so that's what's causing a lot of this throughout the

entiretry. from that really is what the heart of what i'm trying to figure out if these are not just covid shutdowns and china delays, this is a big picture demand, that's a problem that's going to take a lot wrolonger to focus. are we talking three to five years or longer than that when you get your arms around balancing supply, when the demand has gone to the roof. >> you're right. it is an issue of demand but if you lock atok at what's g on in the macro environment. i think if we do have demand softening in addition to having capacity begin coming online later this year in 2023, we could see it normalize a little sooner in the short term, it's been easy for the suppliers to charge whatever they want because you just have to pay for it. >> i have a quick semi-conductor

question for you you saw the comments by president biden about taiwan >> i did from >> what do you think's going to happen >> that's a good question. the whole world is looking at capacity for semi-conductors given the jgeopolitical dynamic, think we're going to build more diversity for semi-conductors. we've got samsung, global foundries, others who are getting into this. and i saw yesterday spain announced a massive investment in creating a semi-conductor industry in spain. so i think it's a capacity issue, and i think that's going to be built out hopefully before anything they were talking about occurs >> great to see you. hope to see you back home state side thanks becky, back to you when we come back, we're going to talk to north island

chairman, grlenn hutchens. the picture has got and little worse we were down marginally, now the dow futures are off by about 112. s&p futures down by 12 the nasdaq down by 57, even after the steep declines in tech stocks yesterday stick around you're watching walk box, and their is cnbc. your data. and start crunching a year's worth of transactions against thousands of compliance controls with the help of ai. now you're making smarter decisions faster. operating costs are lower. and everyone from your auditors to your bankers feels like a million bucks. let's create smarter ways of putting your data to work. ibm. let's create

good morning, and welcome to "squawk box" leer on cnbc. we're live from the nasdaq market site in times square. we've been watching the u.s. equity futures right now it looks like things are a little weaker. dow future s are off. the s&p off by 17. just concerns about what's to

come next. were t whether there's a recession on the way. the ten-year yield is now at 2.727% it continues to drop 30 years at 2.9% >> retail earnings out this morning. a sector we've we've been watching as we track u.s. consumer spending and the health of the consumer. we're going to start with exporting goods. the company announcing a weaker than expected outlook. dick's did report top and bottom line, and comp sales fell less than expected, it's not helping, the stock down almost 15%. on the other side is express the apparel retailer raising its outlook. its latest quarterly number adjusted 10 cents a share loss was better than what was

forecast andrew, are you back >> i'm back. meantime, more of today's top business stories to tell you about. this one is involving twitter, getting ready for the company's annual meeting today and this one's going to be a doozy. the elephant in the room of course, e-lon musk's offer to bu twitter. the big question will be whether he continues to buy. he may want to pay significantly less than the price tag. they remain committed to the deal at the agreed-upon price. the other big news, apple saying it wants to fire, to speed up the development of new iphone components, this according to the nikkei source. it says because apple's source has been hit hard by covid

lockdowns in china, that's impacting the stock and make ago rmakeing a lot of people think what's next 43 strategyists put the median s&p forecast for the year end at 4400, becky. >> we'll see i mean, we've talked to katie stockton this morning. she said worst case scenario, we get down to 3400 a rolot of back and forth. speaking about those markets, let's talk about the potential opportunities for investors as they try to figure out if we're near a bottom. joining us is sawrought sethy.

and sarat, every data point we hear, we come up with a new fair yoe scenario it's important to take as many of those data points and put them together. >> this is a complete mosaic period we're seeing j.p. morgan coming out, hey, things are good, things are getting better, credit's not that bad. and then you have snap the next night. and retailers, wehether it's walmart or target or nordstrom >> winordstrom. go with strong balance sheets

with companies that have much more of a cash flow duration people were buying things during the covid. now it's happening in software, hardware and industrial goods. look for where dollar's going to be demand and what the consumer has not been buying. >> it's hard to figure out where the puck is going when you're dealing with the consumer. it's confounded some of the best operators we've seen >> it's a very challenging time in the market, very choppy and the rae aeaction to negativ news so much is going on. everybody's talking about recession. i think that's premature, becky. what we've learned is that the consumer is changing their behavior they are not buying goods. this he are buying services. that's actually pretty good.

so we root for that, actually. we are learning that inflation and high interest rates are having an impact, not only to the consumer but the company they can't forecast properly what do we learn about the economy, the data points and the economy still has a rot lot of momentum. business investment up 9.2%. pmis, everybody was saying that t they missed yesterday. but all that's numbers were really very good in the month of april. now swrwe have to see going forward. i fknow everybody's focussed on walmart and target s cha nel, they beat

and nordstrom said their design an and shoe business helped because people wanted to buy for an event >> what do you make of dick's. they came out with guidance that d disappointed they have inventory at 40% levels what the heck happened >> a beneficiary from stay at home how many tennis rackets do you need how many ice skates do you need? and that kind of thing they're the goods part of the economy versus services. >> the goods part of the economy was still stocking up, assuming consumers were going to be spending like that a rlot longer the patio furniture they bought last year, they already bought it you point out that the negative

implications is more than you've ever seen if your car >> i own target. i think that is sprabsolutely a buy. the stock is down 35% in a couple days. costco tomorrow is going to and very good number they're going to hold up pretty well i do own tjx i'd be buying it all yearlong. i don't want to own a lot of the goods companies, but i think there are special pockets. i am more in the camp of you want to own some of the reopened names, and that's the services piece. >> let's take the same question and put it to the technology stocks, especially the social media stocks hit so hard after snap said that its numbers aren't going to be nearly what

people were anticipating is it fair for that to get spread out we have a lot of folks on both sides of this argument tim armstrong thinks it's more snap specific, that you're going to have strong advertising, but it's going to the companies with the biggest ones those are being sold off, too. >> i think as you get negative news in the advertising area facebook and google, facebook's already been punished. google has so many other parts of its business, when you lock at cloud and youtube you want those snap was looking to break even. i think you're going to see opportunities here, especially in some of these large-cap companies that are becoming cheaper and cheaper that are hugely, they're going to be buying back shares we saw companies coming back to

the market to buyback shares you're not going to see a lot of m&a. cap is going to be used to spend more but buyback shares. the carnage is there, and i think if you're a long-term investor, you're going to be rewarded quite well the next couple years >> are you buying any of those names right now? >> i'm buying google s sum of the parts is much bigger to stephanie's point, the reopening plays, like deltas of the world. those are really sold off. the demand for those products is just huge. there's eras tisity. the consumer wants to be out there. >> sarat, steph, thank you both. >> ta >> thank you. >> thank you

we have a historic bet on crypto from a venture capital giant. we'll be joined after the break to talk about very big news this morning. a multi-billion dollar crypto fund and grlenn hutchens and what to look for in toy'das fed minutes. t stay tuned

another crazy day? of course—you're a cio in 2022. but you're ready. because you've got the next generation in global secure networking from comcast business. with fully integrated security solutions all in one place. so you're covered. on-premise and in the cloud. you can run things the way you want —your team, ours or a mix of both. with the nation's largest ip network. from the most innovative company. bring on today with comcast business. powering possibilities.™ this is xfinity rewards. our way of saying thanks, with rewards for the whole family! from epic trips... to jurassic-themed at-home activities. join over 3 million members and start enjoying rewards like these,

and so much more in the xfinity app! and don't miss jurassic world:dominion in theaters june 10th. welcome back to "squawk box. the futures right now still indi ind ending lower nasdaq down after it was quite weak yesterday what's the temperature over ta there, andrew in. >> it's gotten warm. i know you guys saw he eme eati pizza yesterday. >> four meals a day, it's pizza. >> four meals a day it's pizza how hot has it guys or warm now.

i took my blazer off we think it's about 60 degrees here at that's what everyone's saying >> at that's nice. from it it's gotten nice we're going show you a panel that i hosted about the meta verse a couple minutes ago which included chris cox take a listen to what he had to say. >> you want international standards. especially for things that are cross border, terrorist content. we are operating in turkey, where there's an a lot of defending. you wantto wrrecognize you will

have service companies operating different companies with different rules. some are going to be way more open ended some are rated r some are pg and some have more or less strictures around safety and integrity. tare there will probably be a rating system like we have for film or music. so a young person can have some sense of what the rules are if

the 1 t t thespace they're going to walk into >> also asked whether the meta verse could be used in a pplace like davos >> there's an empathy that you get in a 2d meeting. >> you pmay not have to make the trip at all when it's all over related to all of this, when you think about the meta verse and web three is the world of crypto they are raising the fourth and now largest crypto fund ever, $4.5 billion joining me now,a ariana simpson. it's a big one, but it's coming

at a time when crypto, as you foe s know so well and the world of nfts, when was at that happening, and what the conversation dialog has been like over the last several weeks. >> thanks so much. this is our fourth fund, 4.5 billion, which brings the total investment to 7.5 billion. we think at that speaks to the z of the opportunity we view web three as the next computing platform and major technology platform. so our investors and portfolio companies are very much dedicated to the mission irregardless of where we are in the market cycle >> and where are we in the market cycle when the limited partners call you up and say, the timing, the timing is tough, or do they say actually this is a remarkable

vintage. what's that conversation like? >> that's right. we're very much long-term technology investors we're thinking if five, ten, 15-year increments, not wokeekso months in crypto and technology sector, it has been built during market instability. focussed on building rather than infras fluctuations can help. we remain positive about it long term, regardless >> i don't know if you think we're entering some kind of crypto winter. what do you say to the lps who ask about valuations >> i've opibeen in crypto since

2013 and what we've seen is at that while the prices can seem erratic err erratic there is very much a method to the pmadness. new entrepreneurs, new builders, new capital fros capital flows space. from a . >> and what do you say to the investor investors who got into this 50% or so ago. those who bought at

the highs and are now selling it, i don't know if these are the lows or not. >> we think focussing on understanding the content, what's happening here and viewing this as a major technology shift rather than a sort-term financial asset is a critical part of the story frankly, the space has become too big to ig fnore it's continuing to build momentum and bring in an incredible amount of talent. we think, and we've seen this across the broader technology sector, not just within web three, where the best talent goes ends up being the most important part of the market it's attracting all kind the of builders, edngineers, marketers, designers to the space and this's what we invest in >> within at that sphere, where are they going

there are a lot of folks working on bitcoin projects and a lot of people moved over. what's the, i don't, what's sort of the infectnext thing you're g rat right now >> the infrastructureha had to e laid dee internet-native llcs, around a shared goal, whether it's buying a piece of nft art. >> there's some eyebrows being raised at an investment you just

made in a company backed by adam newman and his wife of wework. this is a blockchain company selling carbon credits on the brock blockchain tell us about the investing thesis, but more importantly, the questions asked about management of wework how you thought about that in this context. from >> they want to bring the carbon credit market online and enable it using tokens. what that means is there's an ecosystem of opaque brokers at that can be replaced by a more open open parkt we think that can do a positive job of bringing more people to the market we're excited about the positive, real-world effects of

web three. the ecosystem has been criticized for being focussed on traders, but we're seeing it can have real-world impacts. adam and rebecca -- >> i'm going to say, speak to the adam and rebecca issue t there have been lots of questions about their ability to run a business >> an incredible powerhouse trio that they are working with super closely. but i think adam and rebecca's vision is a key part of the story, and that's really what gave worth to the company. they have a great vision for it. and really want to do something great env great here >> when we come back, we've got much more on the market's tech

wreck. investor bradley tusk will join us to talk about the meltdown in snap shares and how much ongoing contagion there could be going you're watching "squawk box," d iss bcanth icn your record label is taking off. but so is your sound engineer. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates

matching your job description. visit indeed.com/hire

coming up, we've got breaking economic data and a can't-miss conversation with glenn hutchens 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! and it works!... i like your bag! when your digital solutions work, the world works. that's why the world works with servicenow. cal: our confident forever plan is possible with a cfp® professional. a cfp® professional can help you build a complete financial plan. visit letsmakeaplan.org to find your cfp® professional. ♪♪

facebook's products harm children, vstoke division and.org to fweaken our democracy.ional. 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? when you need help it's great to be in sync with customer service. a team of reps who can anticipate the next step genesys technology is changing the way customer service teams anticipate what customers need. because happy customers are music to our ears. genesys, we're behind every customer smile. box. rick santelli here at hq

expected up .6. if we strip out transportation, there' there's slight deterioration up .3, half of expectations. and if we look at capital goods orders, non-defense ex-aircraft, expect up half of 1% if we look at shipments and orders, it's the only component that's better than expected. up .8 of 1%. and so these numbers are close to expectations. a bit of a miss. we know at that empire, philly, we've seen misses there on new orders it's interesting to see

shipments are better we do see some of the changes coming in from last month, and they're not very notable, except we we see the headline. interest rates continue to deteriorate. some of the misses we see in earnings take being taking a dent out of investors. begging the question to be answered, how are all these interest rate hikes going to cure so many ills in the economy, even what's going on in interest rates with goldman sachs and bank of america seeing housing prices up 10% to 15% this year. >> so many different cross currents right there the supply of houses is, people are still going to buy them.

it's never been like this before it's inelastic prices can go up and people are still going to show fun they w up if they want to buy a house and there aren't any around. >> vi have relatives who have been looking for houses and you go to an open house and it's like a convention. big crowds we've seen originators and builders taking it on the chin but when you look for housing prices to go up m this envir environment, it reeally is a one-off. none of these are going to solve the issues in front of us, joe >> okay, rick. thank you. appreciate it. steve, it says steve liesman

joins us with data now, or on the data that's when i always see lies-mania they're out there already, the maniacs. >> screaming and really running amok if you get a wide shot behind you. >> excited >> i don't know if rick is sticking around. i want to point out, this number's pretty good, and i'll tell you why if theres with was a miss, i th came from the motor vehicles report which was down .2, but we do have a rebound in terms of purchases of vehicles at the corporate level, and that should have shown up, and it didn't it may show up next month. there's this incongruity when the government reports it and what's going on. i don't really see this as a

miss i think more importantly, rick emphasized this with business spending i don't know that swrwe have a chart in the back. they have spending delayed from the pandemic they also have stuff that's wearing out, difficulty finding stuff. and so according to recent report i read, there's about a trillion dollars of excess money out there, relative to where the trend was before the pandemic. and companies are putting that money to use they may be doing it through buyb buybacks or dividends. but more importantly, they're going to be doing it through capital spending the other thing is what rick mentioned, how profoundly the outla outlook for rates has changed. 90% chance in july

roo look at what happens for september. the idea of hike, hike and then slow is what's built into the market and very quickly, i talked about this in the 7:00 hour. if you look at the next chart, you'll see an expectation of an ease built in. 275. there's your terminal rate, 290ish around july 23. fw but that 290 number has come down 50 basis points. we've had a profound move in the couple weeks since the announcement from the federal reserve. >> i'm still hopeful that the markets do something for the fed. that would be good instead of just all the angst that they acted too late and are moving too vole t slowly. better than destroying the economy. some of the air comes out of the. >> it's like the excess wealth,

instead of your job, your paycheck >> you saw the gazillionaires. >> buffett was up. >> 1.25 billion i should say the fed minutes from the central bank's early may meeting are due out this afternoon hop hopefully they will shed light on the fed's thinking, and joining us is glenn hutchens it seems like the situation on the ground is changing much more quickly than we get these notes. i don't know how much we pay attention to that, how much to see what's happening what's your feeling about where we stand in the economy right now? are we in a recession? are the odds of a recession higher or are we still chugging along >> so my view, becky, i think

when you and i have talked about this before, my base case for next year, 2023, is kind of a recession. i think we're just, i'm just starting to see so effects of that, leading that direction the some of the high frequency data with credit card purchases, used car purchases, i think the fed is determined to get inflation down to their 2% target as i told you, i think because of structural reasons in the economy now, we're likely to see persistent inflation higher than that i think we're going to see higher interest rates for a longer period of time. and those settings historically have been ones in which the fed has pushed the economy into recession and not had the precision to be able to engineer a soft landing i'm being clear, i'm not making a prediction i'm thinking about my base case. but i'm operating under the

assumption that we're moving into a recession in 2023 >> recessions aren't all created equally. is your base case for a r recession, is it a painful one or one that we skim through, not that it matters, if you lose your job or your house >> i'm talking about base case for planning for corporations and my investment portfolio. it's not a balance sheet recession. households and kocorporations ta run through the banking system clearly not one of those, but it' it's also more than probably just a quick interest rate and hike in inventory adjustment causes of inflation,

demographics, smaller labor force. de-carbonization, the cost of taking carbon out of economy as well as all the money sitting out there as a result of debt mond monetization i think the longer term will lead to longer-term higher interest rates, i fear because of the helalth of the financial sector, you're probably into something that had last longer. >> i am grlad that you bring it up as an investor. what do you advise the companies? is it time to spend more what happens

that's the self-fulfilling part of this prophecy is what companies do to determine what happens next how deep of a recession this is or if we actually go into one. >> that's how in essence fed policy's supposed to work. they're supposed to tell us what they're going to do, and we're supposed to row aeact to that now on the downside, for the last decade, it's been on the upside i think corporations should be prepared for diminished consume econsumer spending and they have to rook at their individual business. about decision and preparations they have to have in mind. >> you know, we've heard from a lot of the tech high flyers that

they're going to be reining in on hiring. if you hear from meta, netflix, can you add half a dozen others that we've heard from in the last week, week and a half, that's probably more related to what the equity markets are telling them more than the fed you're not going to have the same valuation you are not going to be able to spend as trfreely is that a case of the markets doing the fed's work for it, too? >> that's right, the fed uses the markets as a transmission tool they care about the influence that the markets have on the economic outcome they're trying to have. trying to effect and in this case, i think the technology companies are making steps because they were overly exuberantly hiring and they're now cutting back there was a story about amazon cutting back on its warehouse. but it turns out it's only 2% of their warehouse space. but they got ahead of where the

economy was going, and they're pulling back i think it's a very similar thing with respect to hiring >> all right, now put on europe hat as an investor oh, sorry, andrew, go ahead. >> no, mo. keno, keep going >> do you buy some of those stocks that have gotten hit so hard, especially from what we heard from snap yesterday, just taking without any discretion, all of those technology names, all of those social networks down >> at tthat's a good question first, obviously, the way i think the buying opportunity in the near term might be distressed sellers of good assets good money after bad kind of thing. for instance, one of my views, the reason dick's has gone down so much is people have been selling bitcoin to cover their losses in other parts of the

crypto universe. there will be examples of good stocks that will go down because people aren't selling ha stock beca that stock because of the stock itself but because they need liquidity. that said, on the other hand, if you really do believe, your base case is you're worried about a recession in '23, you would go from the pe effect to the e effect as stock prices could come down again as a result of earnings projections lowered. you know about the buffett ratio. there's lots of room on historic data for the market to coming down if there is in fact a

recession and that does go through the earnings and the e earnings adjustments come in the next year. is there an e effect coming later. >> i was just going to ask you about the world of crypto. you're a big investor in crypto and a big believer we just saw, they raised a ton of money now at that the prices have come down, do you say that this is a great time to be buying, you look at a coinbase and say this is it? or do you say this is just a falling knife? >> there's a lot of falling knives here. it's hard to get the handle. get the blade. but with respect to the crypto stuff, you remember i came on in december and said sell the parts of your crypto portfolio that don't have a use case. and i cited doggie coin or

dogecoin or whatever they call it as a result of that so i look for use cases that drive the value in crypto cases and the tokens native to that company. and i'm still investing in those companies, startups. in a very different segment. i'm more interested in early-stage capital in new companies. and, as i said, i said earlier, in the, this period, it could be like the late '70s, and am pple and microsoft started in the late '70s. >> is it suppose td to be a currency and they say i don't know if it has a use case. >> my personal view, begin, as

an investor, i'm not investing in things to be built on top of the bitcoin get work, even as you know ethereum is going through. the higher security that comes from the proof of work element to it. so i don't, i don't see any companies that i'm investing if right now that are building on the bitcoin protocol >> fair enough. >> thank you we always appreciate seeing you, no matter where you are in the world. >> we miss you guys in davos come back. >> are you coming back right now, grlenn >> what a defense the other night was something to behold.

were you snthere? it was unbelievable. could all teams play like that i don't think they can you couldn't even get fnear the -- there are only four left left >> and those who don't follow every day, it's the celtics we're talking about. >> when we come back, we're going to go inside the ongoing tech selloff with bradley tusk you are watching "squawk box" and this is cnbc sure! ...after homework. thankfully, voya provides comprehensive solutions, and shows me how to get the most out of my workplace benefits. what's the wi-fi password again? here... you... go. cool, thanks. no problem. voya helps me feel like i got it all under control. because i do. oh, she is good. voya. well planned. well invested. well protected.

well invested. nurse mariyam sabo knows a moment this pure... ...demands a lotion this pure. new gold bond pure moisture lotion. 24-hour hydration. no parabens, dyes, or fragrances. gold bond. champion your skin.

welcome back to "squawk box" live in davos, switzerland pfizer announcing it will be delivering almost two dozen products in some of the world's poorest companies at not for profit prices including vaccine and treatment for covid-19 they made that announcement here we spoke with the company's ceo earlier on the show. he detailed just how many people this could affect. >> pfizer will provide all the protective medicines to all low-income countries, and low-income countries from years ago ago. this is 45 countries, at cost. >> it includes many in africa, syria, cambodia, and north korea. we have a lot more on the show coming up. when we return, how much should

investors in the biggest tech companies be worried about snap's historic stock slide? bradley tusk will be with us right after the break. you're watching "squawk box" live on cnbc hematics. we all know this equation, right? he'd crunched numbers day and night. that's it. to maximize profitability. morning. i have quarterly numbers that are beautiful. and forecast revenue from every corner of your organization. is that important? or you could use workday. the finance hr and planning system that helps cfos make better decisions faster. for a solve problems like a genius world. workday. for a changing world.

for a solve problems like a genius world. my son romeo has sought counsel with some strategic advisors. they suggest that we marry our fortunes with...the capulets. blasphemy! fear not. these advisors managed one of the largest mergers in history, creating billions in value. billions? plus, they have experts in global trade. this merger shall be a boon for our spice business. and set a course for growth. here, here! friars, send word at once. yes, m'lord. 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?

snap warnings are the latest pieces of the news to give tech investors anxiety. we'll get another piece of the tech puzzle tonight when nvidia reports quarterly numbers. joining us to talk about the tech sector and whether the performance of the last few years maybe was an outlier bradley tusk, ceo of tusk ventures there's something we call tech and then there's all of what tech encompasses it's hard to talk about it in general terms, obviously but just bear with me for a second so you point out that a lot of private companies never really got what they deserved in terms of being marked down they're public so they inherently had these very high valuations

are they coming down because of all the fed money that was propping them up, or are they coming down because the environment is now changed >> vcs across the board are raising bigger and bigger funds. as a result, we have to write bigger checks for portfolio companies to make the fund math work, which means valuations have to go up. i would say start-up valuations from series a through to the ipo have been artificially inflated the last couple years and the public has been right knocking them down because we are valuing them too much. the second problem we've had this growth at all costs mentality for about decade we're finally starting to realize that growth in customers is not the same as profits and as that mentality shifts it will

impact the entire tech sector. >> agonizing from snap, that's a macro from inflation and overall economic worries you become less of a tech company, more of like an advertising company. >> yeah, for sure. as you said before, tech is so broad. every company is a tech company. whoever made the coffee cup sitting on my desk used technology to make it. you can't even say everything is tech, but, yeah, look, snap has a couple reasons one is, like you said, advertising revenue is down. but two is this is true whether it's snap or facebook or twitter, social media is a very double-edged sword it can be very profitable. it attracts a lot of people. but at the same time, it is inherently kind of a toxic platform that, you know, if you want a safe bet, i don't think you want to be investing in a

social media company >> and then social media, is there any other way to monetize it other than advertising? >> yeah, there are a few i think one is you may remember facebook tried to launch libra, a payment system on their network, never got congressional approval but they were looking to supplant advertising revenue, payment and processing, and also marketplace, depending on what you do, most of the companies have let that go, but my 13-year-old son is on snapchat if there were things like sneakers and video games on a snap marketplace, he'd probably use it >> can we find some safety and still participate in the future of tech by buying -- i don't know, maybe nvidia are the guts of tech still good? they never got to the overvaluation. is that how you do it? >> yeah, for sure.

to there are tech companies that produce a product that's of real value and they sell it as a high margin and make money. those are good investments they were before they are now i think where it gets trickier is the tech company words like, well, they're not making money, not sure how they will, but it seems so cool and have such a high private valuation, we should invest in them anyway my general rule of thumb is if you don't understand why a company should do well it's probably not that you're too stupid, it's that it doesn't make sense >> quickly, about 2 se5 seconds, are the windows, hunkering down, bringing wood in for the winter in tech? >> no. the opposite i'm an early stage investor. valuations are down. to me, this is a really good time to be investing both because valuations are lower and off little more leverage than you had six months ago with founders so, yeah, we're investing as much as we possibly can. >> that flies right in the face

that an unfriendly fed is bad for tech maybe it's good because, you know, finally you get thing mrs. reasonable thank you. >> thank you >> we didn't play fleetwood mac. we didn't do that this time for tusk andrew, good luck today. you're on your way back. see you. i won't be here. >> see you on friday >> join us tomorrow. back in the big city good wednesday morning welcome to "squawk on the street." dow future red, but any bounce would make it four straight days of gains durables were a miss 10-year, 2.71, the least since april 18th the broadest markets on track for their worst start to the year in more