good morning welcome to "squawk box" here on cnbc live from the nasdaq market site in times square. i'm rebecca quick with andrew ross sorkin and mike santoli joe is off today andrew, welcome back do you know where you are right now? >> you know, becky, you remember this you are more awake because i was on the earlier hour. >> it is still noon to you >> it is noon to me right now. slightly better for a couple of days then it will be screwed up by next week. otherwise, yes >> you get through and get your feet under you you will need pizza time in about an hour. thinking it is noon. >> yeah. >> good to have you back let's look at what is happening with the u.s. equity futures at this hour. you see on this friday ahead of the long weekend, so far, so good this tends to be people wondering what to do

green arrows across the board. dow futures up 71. nasdaq up 73 s&p up 16. by the way, this is a pretty good week. five days in a row for gains for the dow. for the markets, they are looking at the best performance since march of this week dow up 4.4%. that has been the big gainer over the week. s&p up 4%. even the nasdaq up 3.4%. really clawing back after the awful weeks to date. the dow had been down for eight weeks in a row before this we are heading into this -- i don't know -- what do you say, mike >> seven weeks down for the s&p which was historically long. you hadn't gotten to eight this is a bounce potential coming into month end and bonds on out perform jpmorgan chase has been talking about this for weeks we price in the higher risk of recession. maybe numbers are coming

through. at the same time people are willing to believe the flexibility in the fed side. we had four previous rallies on the way down since january of more than 6% in the s&p. this is the fifth one. we will see if this meets a better fate. >> see if it holds >> exactly if it holds or builds. we are below last week's high. we are still in the lower end of the range. >> we'll take it five days up we are heading into the long weekend. cross your fingers treasury yields. weaker in terms of the yield 10-year yield is 2.75% if you want to look at what is happening with oil prices. yesterday, you were talking about energy up by another 3%. two-month highs yesterday and continuing to build on that. check that out $114.30 for wti. brent at $118. natural gas getting a breather today. not a lot. down 1.6%.

again, you have to continue to watch oil prices and what that will mean for gas prices at the pump as we get into the long holiday weekend when people will be driving, andrew >> a lot of people driving a lot of people will be driving. and flying mostly driving. we have another story in the soap opera that is the takeover of twitter by elon musk. taking a new turn. twitter shareholders suing elon musk and the handling of the buyout deal. class action lawsuit filed yesterday. alleges that musk violated california corporate laws and engaged in market manipulation twitter shares down 12% since musk announced the bid for the company and trading below the $54.20 offer price i don't know, guys i think this is a hard loss. sort of depends on what you think the ultimate outcome is unless you think the law is not

going to account for that. >> it is difficult to know lawsuits pop up for any reason you will see a class action. a lot of irregularities across the way. maybe not timely filing by musk on the way in building his stake. you know, the things he is saying publicly that has knocked the stock around to your point, if the deal gets done at $54.20, what is the net harm to investors? >> unless you got whip sawed and you sold and bought on something he said at that time i think we all thought there would be lawsuits especially with this one coming through i don't know how successful any will be. they probably have a little more meat on the bone than some other shareholder lawsuits that seem ridiculous and frivolous it will tie things up for a while. >> the truth is that the law should be the law. in a very strange way, the outcome maybe shouldn't be what is the ultimate measure in this

particular case. it should be based on the actual law. if you violated the law or didn't violate the law it always turns into more practical reality which is did shareholders come away with more money or less in the end >> were you harmed >> it depends when you got in and got out. >> every time these announcements came or every time we learned more, you just see wild swings in the stock >> there is no doubt you can absolutely find somebody who sold the stock on the tweet that said the deal is on hold this is a sign it is agreed to that is a sign that somebody got shan shaken out. >> mike, you are on every hour of the day at this point i was listening to the conversation with david faber. i don't know if it was yesterday or the day before. with the stock lower, why can't elon come in and buy more to

bring down his cost in the transaction? there are limits on that he is not allowed to do it at this point >> yes, financially it makes sense to do that i don't know what the details of what he is permitted in a merger agreement, you are not supposed to do that. >> it is unusual >> exactly obviously that doesn't apply until you reach the threshold. >> at 10:00, i was listening to you. at 3:00 p.m., i was listening to you. >> i wasn't on at 10:00. >> i thought it was you and leslie >> i was listening to you on the radio. on satellite radio i assume it's you. a voice on the air >> that's up for discussion. i'll try to take a couple off today. we have big retail names on the move this morning.

shares of costco sliding revenue came in nearly $1 billion higher than analysts expected overshadowing the report is soaring freight and labor costs in the united states costco is raising prices on certain foods. there hasn't been a tradedown to the private label kirkland products there has been a shift for more purchases in travel and tickets and tires and gasoline you see the stock set to open down 2%. it has been an out performer costco is well known for basically passing -- not passing along higher costs >> it got hit just like every other retailer did when we heard from walmart and target. the assumption was they may have issues the expectation is costco is different. they may be able to out perform this i think there is going to be a huge story to continue to watch with the big giants and how they

are now going to turn on suppliers and put the screws in. i heard cases where it is happening. if you remember walmart and target saw their worst stock performance since 1987 that kicked the companies to say to the suppliers, no, no, no we see the margins you will change. i heard from suppliers who gotten those calls. >> a downgrade by ubs of kraft-heinz yesterday to sell based on that premise. walmart said about how they are going to deal with things like that >> by the way, you will not get the shelf space. >> private label not a threat to the product. we will see. shares of gap are plunge in in plunging they are seeing surging freight costs and deeper discounts gap sees the profit with between 30 cents and 60 cents a share. estimates at $1.34

the product at old navy is out of sync as shoppers ditch casual wear for other apparel it fell 22%. the gap said a recent push to sell plus sized items resulted in the company not carrying enough of the core sizes for customers. many extended size items that were not purchased this has been a weak stock for a long time. kind of priced for continued decline. >> that is what you are getting today. down 19% check out shares of american eagle. they are slower. earnings fell short. the company ceo called the first quarter challenging with demand below expectation. the pressure it is operating on profit is citing tough comps and rising inflation and gas prices. you go to the story of people not wanting casual and dressy things if you have the wrong stock, you are out of luck.

that stock is offering a steep discount it is off 11.5%. on the other side, shares of ulta jumping with earnings of $6.40 a share. that smashed the estimate. demand for beauty products rose. shares jumping 18%. you want to make sure you get your beauty supplies as you go out. that stock up 7%. >> everybody is clearing the backlog of weddings. >> and birthday parties. >> they did well -- didn't they do well during the zoom days >> they did. people were looking for the lashes and anything with the mask i think they are still doing well you want to look good going out. maybe not the lashes, but the hair and overall get-up.

that is phenomenal performance from the new ceo that is an incredible strong growth picture >> remember, the instagram play for a while. >> yeah. coming up, we'll dig into yesterday's market rebound futures are looking to build a bit on the yesterday's gains s&p up .25%. the dow set to open a little more than 40 points. later, the kickoff for the summer travel season we talk to the ceo of priceline at 7:30 a.m. eastern you are watching "squawk box" on bc

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the s&p is down nearly 15% for the year mega cap tech stocks account for half of the carnage. joining us is gunjan and this was about the fifth rally we had on the way down from the peak in january anything going on here in terms of the starting point or character of this rally or what the news flow is around it to make you think this one might stick a bit? >> the challenge we have is that

we h are in a down trend we have to be skeptical. we hit over4head resistance. we had five counter trend rallies over the course of the 80% bear plmarket counter trend rallies are common we can't judge it on one day yesterday. volume was weak. we saw healthy internals there was good volatility to the upside we want to be careful once we hit up against the 50 day averages the risk is we roll over and it doesn't stick. >> no doubt when the down trend gets momentum and it is difficult to fight, cameron. is the premise that we are in the multiyear decline? my question is if you look to

build portfolio for a longer term period of time, when the average stock is down 30%, is there not something to be done on the buy side? >> certainly there is. we are seeing interesting compelling valuations emerge one area we are looking closely for for a level we want to be aggressive is when we hit the 200-week moving average which is about 12% lower from here. that is valuation which is quite attractive we think we are stuck in a sideways chop for some time. this doesn't mean multiyear bear market we don't think we have the set-up for reentry into the kind of powerful bull markets that we had in 2021 or 2019. simply because we don't have the fed at our back yet. we don't have the pivot for the fed means we are stuck in the sideways chop. we don't have the big cuts to

estimates or big cuts to valuations that broadly and justify backing up the truck and closing your eyes and buying in. >> gunjan, we are a year past the peak of enthusiasm for stocks that promise you some riches in the long term without a lot of cash flow in the moment and earnings support that seems to have gone by the wayside. is this defensive trade maybe energy based and a lot of things people looking for is about -- support and basically giving some cash along the way? >> that's right, mike. cash is king in the stock market right now. it is a really, really big ship from prior years it is about the growth in the future what can you do for me in the future and what is the payout down the line? right now, how much cash can you put in my porcket

instead of tesla, people are going to and ulta. they are favors high dividend stocks over another favorite those companies that did high buybacks it highlights how the stock market has turned upside down lately >> there's no doubt. i know you track what retail investors might be doing in the stock and options market while there's been a steady decline, it would seem, in the activity of retail investors and short-term traders you are seeing blips gamestop is flying this week again on vague tweets and things like that. i wonder if that muscle memory has completely gone away >> what is striking about the activity this year as you pointed out is we had the brief spurts of big rallies. the activity lately reminds me

of the end of the first quarter with the brutal selloff to start the year and the last few weeks of the quarter, you saw ark soaring again and the meme stocks soaring we have the dialed back activity this year, but old habits die hard and we are seeing them return from time to time that is what is happening lately >> cameron, if you don't think there is a compelling, you know, buy opportunity in terms of risk/ risk/reward, where are you looking to lean along the way in sectors or types of stocks >> sure. one thing we have been buying is financials lately. we saw better relative trends and valuations which are more attractive now really, we saw a big rush out of financial etfs which is consistent with the idea that people gave up on the sector

from the contrary basis, that looked attractive. across sectors, we keep a quality binge. we want names with strong balance sheets liquidity is leaving the system. we need names that aren't as sensitive to that liquidity. we want names that can buyback stocks and grow dividends and have flexibility in the uncertain world. >> all right quality is preferred cameron and gunjan, thank you very much. when we come back, we will talk about the divurgence of retail stocks. target and home depot and dollar tree gaining ground. we will talk more about it in a moment. and later, the impact of surging natural gas prices driving up the cost of everything from medicine and

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it has been a wild two weeks for the retail sector as investors react to the results target shares down 25% over the period macy's is 5% higher. that comes after yesterday's 19% gain courtney reagan has names that are flashing caution ahead court, this is a heck of a retail earnings season >> you are telling me, becky there is not one narrative that

sums up the retail or consumer in the united states no retailer is exempt from inflation costs or changing consumer tastes. each is anticipating and managing the variables differently. dollar tree. doll general and tjx with strong starts to the year it is not taskas clear to the momentum to the inflation sensitive consumers. competitives, walmart and target and ross stores and gap took down annual guidance after under estimating the first quarter pressure and had concerns of the same consumer. williams-sonoma and ulta and nordstrom and macy's and kohl's and abercrombie with more caution some retailers take more proof

e with the forecast. some analysts put dick's sporting goods in the camp this quarter. others have deeper wounds. gap is quantifying the cost to fix the business and cost of air freight and commodity costs will take longer and be more expensive for that one the conclusion is drawing one across the consumer landscape is a risky proposition. becky. >> i thi tnk taking the results and this is the new reality and things are changing quickly and it is foolish to think this sticks we were talking about this, court, i'm hearing the big, big companies that can throw weight around are going back to suppliers and saying you have to pay for this you have better margins.

the heavy has come down. you will talk about the suppliers getting hit with that soon there is only so much they he c can give back. there is shifting landscape. if you figured it out based on the last two weeks, you are wrong. it is shifting again as we're talking. >> that is true, becky one question i asked the ceos when i spoke with them one-on-one this week is if things change again, how quickly can you react when it comes to inventory and pricing. those answers also kind of vary. some retailers had supply that came in at wrong times some are deciding i'll hang on to this. it can be resold next year others with the fashion retailers missed the moment. they have to absorb. if they can't absorb it, they pass it on it is all really tricky and hard to figure out right now. we will do our best to try to help our viewers and investors

understand along the waive th way. >> mike, i was listening to you on sirius. if you are the consumer out of this, you are better with walmart and target and amazon with the market cap and customers. that was you, right? >> it was me also for the market impact i think target and walmart are over $400 billion. the chain stores are important with the trend they really become midcap stocks most of them are under $10 billion right now each you know, interestingly, a lot of them on the top down level said traffic's okay. it is not about consumers can't spend. macro message is more about that than it does about the stumbles. >> courtney, thank you obviously we need to hear more from you as you hear from the

retailers with the suppliers behind the lines this is a quickly changing environment. things haven't stabilized yet. thanks, court. >> you got it. coming up, a lot more on "squawk box. we will talk to judd gregg and heidi heitkamp this may is asian american pacific islander heritage month. here is michael yee. >> i'm proud of the i mmigrants, including my family who has come to the country ultimately i'm proud to be asian. while there is more work to be done for aapi in the country, it is an honor to be part of the heritage which contributed to the technology and breakthroughs to make beera tt future and humanity for all generations to come

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good morning welcome back to "squawk box" here on cnbc look at the futures we are up on friday morning ahead of the three-day weekend nasdaq up 57 points higher s&p is up 11 points. we'll tell you what is on the squawk planner may personal income and pespendg at 8:30 a.m. the fed's favorite gauge of inflation. personal consumption look at the maccy consumer sentiment. and then "top gun:maverick" is on the way to gross at least $100 million at the box office we will talk about the box office with the ceo of imax in the 8:00 hour, becky

it could be $100 million to $150 million. they may have spent that just marketing it >> they've got me. >> it is what gets people back to theatertheaters. >> i'm in on this. i loved "top gun" the original >> they held it back this long good anticipation. >> right time to show this off when people get ready for the summer people are hitting the roads this holiday weekend with numbers we have not seen since 2017 that is according to aaa consumers are not just feeling pain at the pump at this point prices are sky high for crude and natural gas. for a look at the relief the government can provide, let's bring in heidi heitkamp. a former u.s. senator from north dakota a founding board member of one

country project and cnbc contributor. judd gregg is from the state of new hampshire. folks, it is good to see you i know you have strong opinions of what we can and should be doing. i'm not sure the government can address all of the issues. he heidi, there iss something to offer at this point. >> at this point, they have to focus on the low-income consumers who need to get to work and would amp up employment we had the great resignation i think more people with inflation coming the way it is, will be looking for more opportunities in the work force. the cost of getting to work in places like north dakota is going higher you will see investment in wea weatherization of homes. you will see investment in mass transit. i think the one thing theyneed to do is avoid gimmicks. gimmicks like eliminating the

gas tax for a while. that will have a minimal impact. you and i know and the governor knows that the true answer to this is the sustainable long-term energy policy so we don't have the wild swings in energy prices. i think it is important that people look to providing instant relief for some people who are really hurting i can drive where i need to drive, but it is awfully hard for the woman cleaning houses to drive from house to house. instant relief for them. what can we do for them? again, looking at long-term energy propices to stabilize. you use the great domestic supply we have >> i think the two of you are going to be able to have a reasonable conversation about long-term things of what we can and should be doing. we will not hear from washington on those things. gimmicks is one thing, judd,

misinformation is another thing of what we can do and what is helpful and some plans in the works. what do you think of ideas you heard to date about how we can fix this >> the great irony here is this is a self inflicted wound given to us by government policies to look to the government to straighten it out is ironic to say the least. look at it this way, this is the green thing meets the real world. three major things occurred because we have gone into the policy of green. one, we lost a major american advantage which has given us true strength as we moved into the century. that was energy independence so we didn't have to rely on the middle east and insanity there we didn't have to kowtow to the a autocrats or russia. capital which is at the e senc

which has dried up because of the esg moment last year equity funds of $76 billion in re renewables you have the incredibly stupid policy which says canada and the american oil producers this is our government policy. venezuela, who is an enemy and iran, which is clearly an enemy. we should go to them and try to get them to produce more gas it is very hard to understand how we want to look to the government to straighten out a problem which has been driven in large part by the government i'm sure we can do little things at the fringe. what you have to do is reassert the incentive with the oil and gas industry to get capital and invest and move the product. all of that is being limited by regulatory access coming from

washington >> judd, i'll agree. the points one and three are valid. talk to the energy companies they say the government makes it difficult for us to plan it doesn't make sense to do these things private equity is doing this because that's what investors, the general public, wants to buy into you know, if you want to look to just business taking care of itself, that is not necessarily going to happen which is why you probably do have to look to government to make it tax incentives to actually make it more worthwhile. this is not just the government at this point. this is oil industry executives feel dirty walking into the country clubs and people giving them dirty looks. >> becky, i desisagree with you you are one of the most thoughtful people in the community of economics and culture. >> oh, no. >> it's true it's true.

>> i know that's a but tell me the but. >> the but is that if you don't create the atmosphere where people are willing to invest in oil and gas production because you are saying to them if you do invest, you will be undermining some social cause. if you have the college endowment funds, public employee funds and blackrock saying we're not going to invest in oil and gas because it is not politically correct to do that then you don't have the capital available that is necessary for oil and gas to explore we're not talking about -- we're talking about the risk taker whose drill things >> i hear it if you talk to the oil and gas industry executives, they say the problem is our investors at this point want capital back they want dividend payments and buyback shares because they have gotten burned in the past. when we go in and actually invest for more and the price of

oil plummets their investor base says give me the money. don't put cap x back into the ground >> that is part of the energy policy problem which is you have a government who is saying if you invest in oil and gas, we will not let you get a return. we will make it difficult for the oil and gas companies to make money there are also other factors like the cost of pipes and sand and moving the oil >> right >> employees >> and long-term investment in energy has been undermined -- literally destroyed by this political fate that is dominating the investment community. driven in large part by the green thing coming from the administration >> heidi has a point andrew will jump in with a question. >> i know we are at the same spot we are with the conversation with the governor you blame investors because they

are concerned about climate. blame the governor for what is happening today when this is the industry that needs the 30 or 40-month glide path to get the product to market. the whole price is bringing a huge disruption on the supply side you can't say on one hand the problem is the government, but the government's not going to fix it we need an energy plan that energy plan needs to look at fossil fuels and ask them to be cleaner and better at what they do. you know, it is not just as simple as look everybody dump money into investment. this is the supply chain that is greatly worried about the sustainability into the future climate is going to be a factor into the future. if you are doing long-term planning, you have to apply for climate restrictions >> okay.

andrew >> judd, you may not hold me in the same high esteem as becky quick. >> of course i do. you work for "the new york times. >> there is a lot of crosscurrents that led to where we are some of which are true the government policy has been part of the issue. i think that we should probably start to do is stop saying it is one side or the other side or this or that the truth is there are lots of component parts to this and the private sector how do you effectively properly incentivize that you want the government to be involved in this to actually change the dynamic? the conundrum is there are two sides to what to do going forward which is to say even though a lot of people would like to drill right this second because we need it from the national security perspective. as heidi is saying, it is a longer-term issue around the climate.

you may agree with that or not nonetheless, that's the prevailing view. the question is how do you actually capture that middle >> that's an interesting and rhetorical question, andrew. i agree with you and heidi in the long run, we have to have sustainable and renewable policy the problem is the attitude that's dominating right now that is saying we have to have it tomorrow it is a generation z view of the world. everything has to happen today you can't convert this society and world that is built around carbon and oil and gas overnight into a non-carbon, oil and gas world. the fact is this world is dominated for 10, 15 or 20 years still by the carbon energy production the united states has this unique advantage of having more gas than saudi arabia. we can undermine or enemies with

production undermine russia and putin we can undermine iran. we can make middle east more stable we can give europe the relief it needs in the area of gas in order to live well through production in the united states we're not doing that we're just moving helter skelter down the road of alternative sources when we don't have the capacity to a have alternative sources for the united states and the world. it is affecting people on main street it is costing them lives. >> i don't think we are all far off from agreeing this is a long-term problem and there needs to be policies in place. the long-term solutions will pro protect, especially the needy. it is a thoughtful conversation. we're out of time. we will have you both back heidi and judd, thank you. have a great weekend >> have a great weekend, becky >> thank you

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new job admissions for the group. delivery company instacart slowing hiring as it prepares to go public. employees were told during the all-staff call and nvidia and meta is decisions and maybe this will help the fed thread the needle. without increasing unemployment. that would be quite a trick if it happens >> is this going to be d deflationary we'll see. the ceo of sotheby's joins us next 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...

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welcome back to "squawk box.

with the volatility in the market, many looking for safe places to go sotheby's is havingi its biggest auction season it's great to see through morning. somewhat surprising, i think, but maybe not insofar as you go back in the '70s and lockok at what actually worked and art and other collectblings were some of them >> i think that's what was so inpressive this week is despite all of the destruction, we saw incredibly strong results, and actually, it showed the depth and globality of the art market.

in the sales last week, we saw bidding from over 50 countries >> and that's where i was going to go with this. when you look at the people that are buying art right now, who are they what's their background? what's their industry? where's their money confrom? >> a lot of them are collectors who have been building collections for a long time and are very comfortable with art as a store of value. at the younger end of the market, that's where we saw the highest demand in the whole week last week, and that is truly global it tends to be collectors under the age of 40. and we certainly see a lot of

activity in asia in particular in that category >> i remember we had a conversation a couple months ago about how there was a group of very wealthy crypto investors who have decide not just to invest in the digital nft space but in the very real world i know you've moved into the nft space as well, given all the oxygen that's come out of that reasonable, how has the dynamic changed? or how has it? >> i think the one whose did invest in physical are feeling good about that decision right now. you know, we didn't see, as you would expect, a huge number of new, you know, crypto investors come na comi coming into the market this past

week the financial market has been very challenging not withstanding, there was still quite deep and wide investing. and i would say from what we see in our own nft and crypto-related activities, there still is a hlot of thunenthusiar what is to come. >> we got to go. we want to wish you a terrific weekend. i want to ask you, that piece of art behind you, which may be a digital rendering is what? >> it's not a digital rendering, it's an original from 1975 come take a look, andrew >> oh, my goodness, it looks phenomenon am. looking forward to heseeing you soon you want to go in together and try to buy that piece of art >> no, but i like it i'll keep the flag

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good morning, everybody. welcome back to "squawk box" here on cnbc we are live from the nasdaq market site in times square. it's a friday. and we're feeling pretty good, because we've got a long weekend ahead of us. traders seem to be feeling pretty good, too check out the futures. there are some green arrows. these are pretty modest advances, the dow up, the nasdaq up by 61 it does come after a very strong wok week of gains. the s&p is up 4% for the woke aweek a the treasury yield has come under more pressure, getting

closer to 2.7 than 2.8 if you want to watch oil prices, this is a different story. wti is at $113.69. it was up by about 3% yesterday. we're sitting near two-month highs at these levels. and all of this is happening as people are getting ready to hit the roads for memorial day weekend. a lot more driving is going to be a lot more expensive as crude continues to climb we're also keep ing an eye on cryptocurrencies what the heck happened here? >> it's unclear what happened. had been tracking the nasdaq and generally kind of more speculative stocks for a while it sort of die verged a bit from there. even the dollar's come off the high stats not a source of pressure for it so it seems like the market is preferring things that have more

cash flows and more, you know, a little more of a firm foundation in terms of, you know, fundamentals than obviously crypto not sure if there's news >> did you see that j.p. morgan report that said they're expecting to go back to 38,000 i thought that was surprising. >> yeah. >> they have not been bullish at all on crypto. that would be a basically 30% return at this point >> at that's world we're living in nobody's saying it's racing back above 60,000 and the sky's the limit. it's much more about well, it seems to obey these technical patterns, and maybe it has support in this area and all of that so i do think that's the basis for it >> let me tell you about other headlines this morning, too. the government out with pce price data for april, the

preferred measure of inflation the number hawill be released along with personal income and spending numbers at about 8:30 a.m. eastern time this morning. and then we'll get the university of michigan's report. >> elon musk is being sued by twitter investors. the investors are seek aging an unspecified amount of damages. and a chief is proposing a national baby formula stockpile. he said various moves implemented now will result in a surplus in about two months' time and the surplus could be used to establish a stockpile. makes sense.

andrew >> we want to get to dom chu what are you looking at, dom >> how about stocks on the consumer front ulta beauty, gap stores and american eagle outfitters. ulta is the standout, they reported better than expected profits and ref fevenues and ga more upbeat report for gap t p, it posted a big ar lossbigger los than expected. american eagle lowered its four-year outlook. a mixed picture but very dramatic on both sides for retail next up, shares on wendys,

speculation that there could be a buyout of america's third biggest burger chain wendy's also by the way separately reaffirmed its outlook of 6% to 8%. onbalance, o1.33%. marvell gave a better estimate they were helped along by other things, kind of like its strength and business geared toward data centers. it seems to be where some of these traders out there over the course of this past week have been nibbling with regard to some of the discount valuations

wo we've seen >> we were talking the last hour about gap, and obviously all the different retailers. who do you think is the signal, and what's the noise who's an operational problem and who's repub who's representative of what's happening. >> what 's curious to peme is listening to the dollar tree and dollar general reports the old near weakness signals what could be a big ger downdraft. and you've got the dollar stores kind of roughly saying at that

things are going to get a little better so i'm not sure if that bodes well for the overall economic narrative. it's hard to say that a recession is unavoidable, but it seems that the narrative has changed to oh, maybe we could see recessionary pressures if you look at walmart and target, that's the prevailing narrative right there. >> dom chu, thank you, sir from one market expert to another, send it over to mike. >> thanks for joining us it's a tough market. sarat, great to see you. let's see if i can clear up the consensus. we came into the week down seven weeks in a row for the s&p 500 loo looking a bit oversold

maybe we overdid it with the recession fears in the short term however, almost everyone thinks that you can't call this a bottom it's probably just another bounce how would you interpret all that >> i think you're right there, mike nobody can really call the top or the bottom. but you have seen some type of data stabilizing dom was talking about retail, and it's the haves and the have-nots. if you have the right product and you have the right consumer demand, you're going to do fine. and wove've seen that we've seen this bifurcation. and look at last night marvell came out where are they focussed? networking and cloud where's nvidia focussed? networkingnd cloud

there are areas in this market that are going to bounce, especially if you see they don't see storm clouds, and even through a slow down, companies can grow >> another wrinkle yesterday, of course, was that the rally, the 2% gain in the s&p happened, you know, arguably on not-so-great news initially a negative reaction to nvidia that's sometimes a decent marker of real demand, too, but you know, the average stock in the s&p down 30% from its highs. you obviously had the s&p overall valuation come in a fair bit. where has that perhaps generated specific opportunities for you >> so you think if you hlook overall, some of these stocks have come way down, you look at some value plays like a ge or if you want to play reopening, look

at disney or a uber that's down. there's really specific opportunities in this area, weath whether you go to growth or value. if you look out three year, i'm not saying looking out a quarter or two quarters where we're going to get noise, there are really solid companies turning the corner on cash really fast or they have great balance sheets i think as an investor, you're getting an opportunity that we really hadn't had. but you do have to be careful and diversify. it's not just one sector that's going to take us out of this >> fascinating debate around energy the sector's up, close to 60% year-to-date however, if you look at a five-year basis, it really hasn't done a whole lot, certainly compared to the big growth parts of the market where do you kind of draw the line from, well, this is

obviously fundamentally supported to it a's becoming a crowded trade? >> these companies have done something really good, which is growing cash flow and not just growing for production so i would look at your chevrons of the world, your pioneers of the world. definitely take some profits we own those there's pecklative plays out there in energy that have done well not companies like apache, that have really done well. it's part of a diversefied m portfolio. if demand is there, you're going to get some baseline for energy stocks >> it seems like everything we talk ab talk about, sarat, the shadow of doing more against inflation

than promoting growth. do you think the summer's just going to be this slog as we wait for them to do the two hikes and the half percent each and what comes out after that, we have an inflation number coming out really in just about a little over an hour >> you're absolutely right i think is very different from the past the fed is not going to take their foot off the brake they're going to keep focussed on keeping inflation down. and even if they see anaphylaxis co anaphanap inflation down they really are going to be monitoring this data to see where things are going so investing around the fed is going to be very different this time than it has been in the past having said that, there are great opportunities we have now and maybe in the next couple quarters >> sarat, great to catch up with you, have a great weekend. >> thank you, mike

>> thanks a lot. before we head to a break, i want to say a quick hello to app abigail. she got up early in ft. worth texas to watch her grandpa thanks for getting up early, abigail. i hear you're very cute and very precocious remember when people couldn't find a hamptons rental last year even if they were willing to pay top dollar? it could be a very different situation this year. we will tell you why ine ceo of price line.com will jo us. "squawk box" will be rate back after a quick break. te back after a quick break. ite back after a quick break. gte back after a quick break. hte back after a quick break. back after a quick break.

beijing blasting secretary of state antony blinken's china speech, insisting that china was, is and will be a defender of international order eunice yoon joins us on this this is the latest in the back and forth we've heard this week. >> yeah, that's right, becky china is accusing secretary blinken of exaggerating the china threat the foreign ministry today said there is no room for kproe miss on issues that it considers to be internal affairs, such as

taiwan chinese state media today have been arguing that president biden's recent remarks when he was out here inatio asia that te u.s. would militarily intervene, removed any ambiguity. the official press has been calling the u.s. hypocritical for saying it doesn't want a new cold war while creating alliances which china says excludes china and which they describe as a clique in the meantime, the chinese foreign minister is on tour in the south pacific trying to drum up support for a pact. some have shown support, others not so much. only days before the foreign minister is set to arrive in fiji that country announced that it is going to sign on to president biden's economic mplan for the

region, becky? >> it raises more questions than anything else. how do companies navigate this right now? it feels like things are amping up and ramping up. do you hearanything from american companies >> i think a lot of companies here are starting to see that the tensions are rising and that the issue of taiwan now is something that they might have to consider when they are, you know, considering their risks of being in china so in the past, china has always been seen as a sensitive issue it's always been kind of out there as a potential rift between u.s. and china relations, but it's only been in the past couple years, and then of course more recently this year that i'm hearing more executives say that they're kind of running through scenarios as to what they should do if there is a tension that eventually

hee leads to an accidental conflict. >> great to see you. we'll check in with you soon coming up, a chilly start to the rental market in the hamptons details on that next as we head to the break, check out the premarket winners and losers on the nasdaq we'll be right back. time now for today's aflac trivia question. what is the longest word you can spell using only the top row of a keyboard the answer when cnbc "squawk box" continues aflac! ohh, mark is about to become a living piñata. luckily, aflac will help cover his unexpected medical bills. aflac? - (whimpers) i don't think he has any candy in there. am i at least going to get hit hard enough to forget this? nobody is going to forget this, ever. (bat hitting) - ohhhh i'mma call his momma. aflac! aflac!

now the answer to today's aflac trivia question. what is the longest word you can spell using only the top row of a keyboard the answer typewriter welcome back to "squawk box" this morning the hamptons real estate market

may feel a chill this summer when you talk about market prices robert >> rental prices in the hamptons down 26% over last year. but the biggest sign of weak muss rweakness is in the fly. there are hundreds of renters still available at all price points last year it was almost impossible to find a rental by early may. supply is up by over 50% some homeowners starting to drop prices more than 30% rather than leave them empty why the soft demand? the more wealthy are traveling this summer especially to europe and many of the people who used to rent in the hamptons bought over the past two years. so the pool of renters is much smaller. if you're still looking, here's what you can get can you rent this nine bedroom home in bridge hampton on

surfside drive, $300,000 a week, that's right, a week, or $1.2 million a month if you're on a hill more of a budget, here's this cute little 900 square foot cottage in southampton, $48,000 for the summer or a mere $23,000 just for august so bargains in the hamptons still all relative >> what i'm trying to understand s is you're saying there's a hot m lot more on the market >> remember a lot of people who used to rent in the hamptons in 2020, 2021, they bought. now they're homeowners they're renting.

meantime you don't have as many people on the renters side coming in. you don't have europeans coming to the hampton this is year as you typically do but you have hamptonites who used to rent going to europe. it's that supply and demand balance. >> what is happening to actual sales prices and when does it trickle down? >> yeah, it's really interesting. it's interesting sales prices are still going up because of a lack of supply. the average home price in the hamptons right now is $2.6 million that's more than manhattan at $2 million. and there's a lack of inventory. that may change. the rental market teams to lead the sales market, but for now there aren't that many homes to buy. prices are stable or rising at the top, and we doesn'n't see ps rising on the rental side.

>> if you see people rinenting with the ambition to rbuy, you would think the sales price would have to come down. >> that is the next shoe to drop the reinason we have so many emy homes, people thought they were going to get the prices of 2020 and 2021, and they're not. after this summer, more of those people might just say, look, financially, the numbers don't work especially with mortgage rates where they are and so therefore you will see those homes come on the market, eventually >> robert frank, good to see you. enjoy your three-day weekend, my friend >> you too, thanks >> you bit becky? >> asking for a friend still to come, we've got the ceo of priceline joining us. mu plus, we have dr. scott ttebgoli

on the uptick in covid cases and what it means for the holiday weekend. 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.

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phil lebeau joins us with a look at the coming travel surge by road, air, and maybe even sea. >> it will be costly, andrew it will be a costly weekend for those who are traveling. and airfare is where a lot of people are saying whoa, sticker shock. these are the average domestic airfare prices we're already before where we were last year just mabove $350 airfare is expected to go up 30% of the summer of 2018. are people flying? oh, yeah, a rot more people are flying about 3 million are expected to fly on memorial day. domestic passenger levels still not quite to 2019 levels

getting close, but mottenot the yet. we're going to talk about jetblue and southwest. both have raised revenue guidance for the second quarter, not the overall guide ance jet fuel is going to be the wielg wildcard in terms of how much they will be able to turn a corner when you're looking at these jet fuel prices that oh, bity the w some some believe will move higher. you talk about the fall, robin hayes staid we're not entirely comfortable with the fall. quickly want to take a look at gas prices because this is the other way. now this is where the bulk of americans will be traveling this weekend. 39 million people are expected to be taking a trip of at least

50 miles, according to aaa, and the average gas price right now is at a record high of $4.60 that is the average nationally obviously, in some areas, it is much higher. that is up, by the way, $1.57, compared to the same time last year bottom line, it is going to be costlier for people to take a trip this holiday weekend, guys in. >> phil, you going anywhere fun? >> well, i've already done a fe trips, yes few places out west. >> okay. we'll see how much that costs, appreciate it. phil, nice to see you. we're going to continue this conversation, becky? >> our next guest says we are in for a record travel season despite the high prices. let's bring in brett keller. how much higher, how much more expensive have things gotten

>> you heard it just a few minutes ago. flights are running up 40% year-over-year, and consumers still seem to be willing to pay those prices we've seen flight capacity running close to record highs, even though there are seats available, down 10%. with that kind of pressure on inventory, you're going to see very, very busy airports, not just for memorial day but throughout the summer. >> where are people headed >> well, you know, after 2020, when people went nowhere, 2021, people started to move out to visit friends and family now they're looking for entertainment. so the big cities are back in vogue. las vegas is our top destination booked on price line we're seeing destinations like florida, miami, chicago, new york we're seeing people flying out to europe. so london tops our list as does paris, rome, barcelona

folks really looking to get out and enjoy the bigger cities around the world >> you just mentioned how many people are traveling, and look, w we've seen some snarls at the airports it doesn't seem like it's gotten better over the last few months. the odds are youcould be on a flight if there's any weather anywhere in the country, you could be rebooked for three days from now and be sent to a different city you thought you would arrive in. >> i think what you're seeing, a couple of things, right? the airport itself, tsa has been ramping up folks to be able to move people through faster at the airports, and the airlines are improving their on-time performance. and your hono're right, weathers always been a problem. that can impact travel, and airlines are more cautious about trying to make things work

because they have less fleet to navigate the situation so they are canceling flights faster than they have in the past, but really, things are operating effectively. >> the weather's always been a problem, but it seems like cancellations are certainly up am i, is that a misconception? i know a lot of people who've gotten stuck or had flights canceled is that a misperception on my case >> cancellations are up, but that stems back three, four, five, six months now as airlines are coming back online, more staff coming into their systems. that is gradually improving. i doesn't kn't know that we're o be back to 2019 levels >> is that going to come about the time when consumers say it's too tight, i'm not traveling anymore? >> it could be

we're seeing it closer to $400 a ticket so consumers are really looking to find ways to save money that's why sites like price line exist to help consumers navigate to find options to save them money. so consumers are going to be digging and searching and find wages to travel because that's what they want to do right now >> we've been talking about how consu consumer preferences, consumer spending has changed so much what to y what do you see in terms of how people are traveling are they booking in advance? what's different in your industry that tells you this is another way we're tracking a different consumer than we'd seen before? >> sure, once the pandemic hit people, it really collapsed their booking. as we move into this year it

reverted and people returned more to normal booking patterns. two, three, four weeks in advance. we haven't seen that shift traumatically yet back to close-end shorter travel people are not traveling as far from home. vl gas pra gas prices are certainly putting pressure on this so we're seeing a little bit of a shift there, and people are certainly moving down from higher star categories on the hotel side they still want to travel. they may not want to spend up for a four and a half or five-star hotel but spend at a three-star hotel to get more value for the quality. >> that's what we saw with walmart, where people are buying the house brands >> people are shifting that can happen easily in the travel category. there are a lot of options to choose from, and can you reduce

the experience where you stay but you can still go to the destination and enjoy the things that you're going out to do. >> thank you, that's insightful. thank you for your time today. >> thanks for having me. coming up, dr. scott gottlieb on the chances of another covid surge. and can "top begun maverick stay at the box office

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welcome back to "squawk box. take a look at the futures the s&p was up about 2% yesterday. up around 4% for the week and up 6% from last friday. nasdaq just a little bit stronger at this hour. andrew >> meantime, mcdonald's shareholders have voted down two proposals. >> maybe a little out of his normal lane, would you say >> say what you said in the

break. >> no, no, no, i'm not going to say it >> it's interesting, he only put about $50,000 into this. it's a cause near and dear to his daughter's heart, so he got the attention he wanted on this. i would think normally icahn would hate to lose something on this he's still got a lot more attention for it maybe that was the end result. >> and this is the season. shareholder meeting season is when you do have people, you know, wanting to make a statement and essentially just surface an issue as opposed to necessarily, you know, change exactly how the company is run so we will see if it has legs beyond this one year's effort. some big retail names on the move this morning. shares of costco are sliding company reported earnings that beat estimates bull but gross margins were hit. costco said it was increasing prices in certain foods to

combat inflation the company says there hasn't been much of a trade down just yet. but there has been a shift toward more purchases and travel tickets, tires and gasoline. and i do know, apparently, on the conference call, management r refuted the hopes that the viral cost of a hot dog was going to go up. >> i saw that. >> that was a joke and they took it at face value, and said no, that's not going to happen >> isn't it a dollar >> no, it's $1.50. >> it's amazing when you look at that >> they've managed their margins, but think wey won't lee if them go above a certain amout

same-store sales were strong in february and march for big lots but slowed in april that's been a theme, too, that april was tough. microsoft was the latest company to announce it's going to slow hiring practices it would reduce new job additions for software groups citing uncertainty out there we've had nvidia, meta and twit are twitter all saying they are slowing down the pace of hiring. it's not just the companies going to ipo this is any company that has wall into the brick wall of wall street, which is show me the money, show me the profits at this point it's surprising that it's happening to even the most staid companies, microsoft, meta,

whatever you want to call them just that constant idea that there was always going to be demand and competition for these jobs and that more money would come as a result that's just a weird twist. >> you know, the truth is some of the biggest guys i think in the end will actually be able to peel off all the best talent during this whole period we talked about all the slowing of the hiring, but when you start to think about how all the hiring's going to move around, i imagine the big guys will be the winners when this is all over. >> you're going to have a lot of startups and a lot of younger public companies where the stock option's under water, it's no longer a lock that you double your equity. >> like to get back out with those. and maybe if you're a company like a meta or microsoft, you can say our stock's come down a little bit lately. i think you're right, andrew when we come back, ""top gun"

maverick" s maverick" flying into theaters this week. tom cruise is back can he save the box office, single-handedly? richard gelfond is going to join us check it out, a couple of facts from 1986, when "top gun" debuted. the number one song was "that's what friends are pfor. the mets won the world series. i remember it wilell. it was a hong summer ong summer l.

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with come back to "squawk box" this morning. covid cases continuing to rise in most places in the country. up 22% are we in a better position to fight the virus than a year ago? i think the answer is yes, but there's a lot of details in there. dr. scott gottlieb joins us. it's great to see you. we are clearly seeing this uptick across the country. some of which seems to be a mutant version of omicron and delta to some degree my question to you is this new vaccine that's going to come out t in the fall, and we talked about this with albert bourla a little bit. is it going to be game changing

at all in preventing infection because ultimately, we're never truly going to be able to get on with our lives the way we did say, two or three years ago, until we get to that point >> just on the first point about the cases across the country you're right cases are going up when you look at the national average, although they may be matplateaug right now. but but we've probably peaked in the northeast. so we're seeing cases come down here the question is whether or not the rest of the country's going to experience the same wave of infection that we experienced in the northeast or it's going to start to dissipate as the weather warms. there's two schools of thought on that. spar as far as the vaccine's concerned, we have to look at

what the data shows. they're looking at the variant, whether it neutralizes effectively. we should have data soon i'm hopeful that this vaccine's going afford a higher degree of protection against these two variants than the existing vaccine does and i base that on some of the clinical data coming out of south africa in particular when we look at the anti-bodies produced by individuals who've been vaccinated with the previous vaccine and subsequently had a breakthrough kni infection, they seem to neutralize pretty well t s it should be simulated pretty well >> do you think we're going to get, if you recall at the very beginning of this when the first vaccine came out and there was this sort of goldilocks period where the idea was that 90% of people were able to prevent

infection from delta then of course things changed. >> right the question, your question is, are we going to get back to that 90% level. right now the data would suggest that the vaccine's probably 30% to 40% protective against infection. you're right initially, when the vaccine first came out, it was about 90% effective against infection. i think we're going to land somewhere in between that. i doubt we get back to the initial 90%, because the new variants do inherently have more escape it's p it's not just one variant. it's contending with b.2 which has more escape. as well as b.4 and b.5 i think we will get higher levels of protection, maybe

meaningful layers. i don't brelieve we'll get back to 90%, but it's possible. >> cdc has identified nine cases of monkeypox is seven states how concerned are you, really? >> well, look. i'm concerned it's going to be hard to get this back in the box. that there's enough infection out there that it's going to be difficult to choke off low-level spread this isn't going to be an out of control epidemic like covid was, but the risk is that it becomes more endemic, that you have low-level spread continuously. we're not going to mass vaccinate the population we don't have highly-effective drugs that are deployable. they're useful for people who have been infected and are at risk for a bad outcome the vaccine's not going to be

widely dee plployable the cdc's backed up on testing right now. so we're making all the same mistakes we made at the outset of covid by not trying to get a more widely-accessible test into the community. >>is >> i'm as guilty as the next person being horrifically fascinated with monkeypox. but somebody pointed out to me, and i think it's a fairy t itemo point out, that there were 108,000 deaths mostly fentanyl do we need to do a better job of spotlighting other issues that really are taking hundreds of thousands of lives

>> i think we should be focussing attention on all theis issues i don't think we've taken our eye off the ball with respect to the opioid epidemic. what we're failing to do is realize that the epidemic, most of the addiction was formed from prescription drugs diverted from legitimate or illegitimate prescribing. >> do me a favor i think this is not necessarily the authorities who aren't paying attention i think it might be us, the media, not putting enough spotlight on it. bring more to us because i think we should be doing more to alert people to this and doing our best to find ways to help and maybe stop some of the problems. >> i agree >> thanks, scott >> have a great three-day weekend, my friend >> thanks a lot, appreciate it

>> >> you bet mike >> coming up, the ceo of imax. and as we head to a break, a quick check on the markets losing a little bit of ground in the futures. s&p barely above the flat line and the nasdaq is about half of its prior gain level stay tuned "squawk box" will be right back. okay season 6! aw... this'll take forev—or not. do i just focus on when things don't work, and not appreciate when they do?

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good morning welcome back to "squawk box" here on cnbc we're live from the nasdaq market site in times square. i'm becky quick. joe is off today we've been watching the u.s. equity futures. the dow just turned negative but so far the s&p and fnasdaq still hanging in, but just barely even if we were to close a little lower today, the dow can still stand that wo we've seen five days in a row

of gaining it's the longest losing streak in 99 years. the s&p and nasdaq could end their longest weekly slide in two decades. still, been a pretty good week so far treasury yields are still under pressure andrew. >> meantime, twitter shareholders are suing yoeelon musk in a proposed class action lawsuit. they say he violated cali

california laws. regarding musk's apparent drive to find out how many twitter uses are actually bots, the shareholders say that was part of a scheme to negotiate a bet are pr better price for the deal. it's part of the ongoing soap opera/saga lawsuits will probably be flying >> there's probably more coat racks out there than would you see in the average case. it demands on where the stock goes if the deal goes through. we'll see at that, too there's another retailer falling hard big lots out with its first quarter earnings

it posted a larger than expected loss in big store sales. inflationary pressures are reducing discretionary spending. big lots shares are towdown by e than 19% >> wh . >> you can divine your own views on this. gap shares are tanking in the premarket, slashingi its full-year forecast higher costs for shipping and deep are discounts were two parts of the culprits here, costco beating, but its profit

margins, the club saying it is raising prices for certain food items. so we're going to see some inflation taking place and american eagle falling hard this morning ennings falling. shares of ulta beauty are much higher this morning. >> it holooks like we're havingn issue with andrew's camera there. ulta has what everybody wants. mike, just looking through the retailers. i mean, this is really interesting, but it's the companies at that oort either b the wrong merchandise. or big lots, i understand that

problem. they have all the stuff nobody wanted >> miscalculations perhaps with overordering so that seems to be the main issue with a little bit of squeeze with the price of necessities going up, and we heard that from walmart. >> you've opinion wbeen watchin broader markets, too >> we got a little release of tension to some degree, a little daylight in terms of how the fed might act after july the fifth rally bounce, you might call it, off of the low since it started to decline. january 3rd was the high you see back here, all right, this is after the first 10% drop, we got that from late january. this started the day that russia

inv invaded ukraine. you have these catalysts people think the worst is priced in there are some things to speak for. very, very broad two days in a row of very broad upside volume. that's a net positive. we're coming off perhaps lower valuations than the previous bounce here's the momentum etf. this is a stock supposed to be riding the highest momentum stocks here's what it's done. it's loaded one tech what's going on right now is this etf is going to rebalance and end up buying a ton of energy, also probably add to utilities and health care. some folks have been talking about this wells fargo saying it's going to become a defensive or perhaps value-oriented etf and we'll see if that ends up being the culmination of some of these moves away from tech, away from the consumer discretionary. momentum can get whipsawed

a lot of people noting we've seen a little divergence in bitcoin. so all year especially, it's tra tracked pretty well until you see bitcoin have this drop the summer last year bitcoin did underperform and it outperformed for a while. directionally, they've postally been in synch, although have not gone percentage point for percentage point together. >> okay. we have not seen a lot of volatility today, at least not yet in the futures markets maybe that's a fgood thing as we head into the weekend, what does that say >> it could be a good thing if the market would balance itself. one thing i'll say, the index is a little apprehensive ahead of the 8:30 pce inflation number.

we'll see if it's just drifting around neutral it's been jumpy. >> we're still digging through this, trying to figure it all out. come back over >> will do next, coming up, the highly-anticipated "top gun" sequel what kind of box office numbers are we expecting could it be the movie that draws more movie goers back to the th theater, and joe pogue leah. you're watching "squawk box" on cnbc u gotta put your knees into it, put your knees into it. that's too smooth. too smooth? watch this. ♪♪ you try it. ♪♪

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mo welcome back to "squawk box," everybody. let's take a look at the futures. we saw the dow go negative a little bit ago it's now back in the positives for the most part it's been positive after a lot of gain, gains all week to the dow up to the tune of 4.4% futures are up by about 20%

right now. the fnasdaq up by 56. if you check out crypto current sis, currentsys, there's been a divergence p bitcoin is at 28,864. a big moment for the box office julia b julia boorstin joins us to explain. >> paramount's release of "top f gun" is a test to cash if on s in on so big movies for the summer. it is 58% of what it was in 2019 it was projected that ""totop g

"w ""top gun maverick" would be tom cruise's biggest opening ever but all the markets are watching the results. disney, comcast and warn er bro. discovery all have big films in the works and they hope people will pay up for the trip to the movie theaters so this weekend's box office performance is most important for the theater chains amc shares down 37% over 12 months 30% in imax.

there are fewer wide releases this summer. this year that are a35 wide releases so making fewer, bigger movies might make sense for the media companies as they send more content directly to their streamers, but probably not great for the theaters. >> the fact at that there are fewer releases out here this year and just in general, the changing nature of the release slate, what does it mean in terms of even thinking about a summer box office season i think we're still groping for normal here you had a movie in "top gun" where the drive force behind it was adamant that it if

go in theaters. >> people are going to go out and see movies, especially in the summer if it is a big high-production value franchise film film it is the type of film that could get people out in theaters there are others, such as a big jurassic park sequel big production that's going to make people want to see it in the teeheater rather than at hoe we're going to see studios put them if thn theaters for a big e window maybe they're not going to see as many films as they did pre-pandemic that's the question to watch >> i know the theme park ride analogy is a popular one maybe that's the way it's going to be. thank you, julia talk to you later. meantime, the original "top

gun" premiered in the spring of 1986 in case you don't remember, here's a little pit obit of wha world was like the number one song was "that's what friends were for. and a movie ticket cost $3.71 on average back then. ronald reagan was in the white house, and the new york mets became world searries champions richard gelfond. it's great to see through morning. what a weekend we're expecting to have. we could talk about how the movie business has changed, but what are you expecting m tin tes of what this box office is for this"top gun"? and how does it affect the long

a longel lol longer term? >> it's a great movie. the guy's talking his own book but this is 97% on rotten tomatoes, 99% on audience score. it opened in france and england on wednesday, and in each country, it was one of the top three openings in the history of movies it's just a great movie. so i do think the weekend's going to be very strong. the trades have kind of said something like 180 worldwide, and they've said domestically around 100 i take the over on both, based on the results woe've season. but we've never had a br blockbuster this highly rated and anticipated.

this is not a "if. this is how big, not will it be big. and it's not only a one-weekend movie. it's going to play >> is it replicatable? or is it a one-off can other studios do something similar in the future? this is a one-time thing, and it's tom cruise, and it's that special? >> so, i miean, andrew, spidermn became one of the biggest movies of all time, and batman did about $800 million so far, dr. strange is about $800 million globally, i see up on the screen, the domestic numbers, domestic is only generally one third of the global box office the movie business is back what this film, though, will expand the demographic, so the movie business has been back for kind of younger people who feel

more invincible. what's unique about this is how broad the audience is going to be you look at the pre-sales, you look at the walk ha-off the kind of thing that somebody in the movie business never says slower expectations. when people get back and they see this movie, it's going to remind them that they want to go to the movies, and this proves that sitting on your couch is a very, very different experience. it's going to be obvious if we have this discussion on tuesday or a few weeks from now, it's going to be clear >> hey, rich, i hear you and i get it i mean, this is a movie at that i'd like to go to the movies to see, but it's kind of funny, that risk-reward snarcenario. older people feel less

invincible but tom cruise maybe i'll go see that your thought is that we'll get back in the theater and be lake olike oh, man, we miss this. and if you think this is what changes the tide, what happens from here on out what can we anticipate from ticket sales >> so, becky, this is a unique period of time in a unique year. "top gun" is not a one-off "dr. strange" opened last. "jurassic world" comes now a little over two weeks. and that's tracking to similar numbers as "top gun," if you look at what the projections are. the scientific projections then you have "helightyear", thn "thor. it's a year you have "black

panther 2. "avatar. every week in this movie, though, it's, as you said, it's going to remind people what it was like to go. we were at an imax screening th other day, and people were clapping, and so many people came up to me and said i forgot what that was like and i think that's what's going to happen. >> every movie you just said i want to go see maybe it's that the content is pack y back. >> because of covid they got delayed in the backlog and obviously, the reopening happened much slower than people thought. and by the way, the movie industry is oneof the last reopening traits that people haven't seen yet i look at imax we haven't been below 16, except for the pandemic in years. and that's where we're trading

at right now, below that trend line and i think people are going to wake up next week, and they're going to say oh, my god, and you're right i've said it before. it's cliched but it's like a murderer's row of movies. it's the combination of the pandemic and difficulties in production have just not had a real test. and this is the first real test, people looking at the screen now and saying we'll see, but i think we already know from the data we've seen of the films that have been open, and this will just support that and the films we're going into will lend further support. >> hey, rich, matt bellamy has a br great piece and says tom cruise' back end in this may be nine figures. do you think that will get applied in the future? is there anybody out there anymore? has the whole business changed

that the creation of a new tom cruise is almost impossible? >> yeah, i do think there's only one tom cruise, andrew, and he owns some of the ip here, that's one reason his back end is so high it's a combination of who he is, plus the rights he has i don't think, i think it's different parallels, obviously, a robert downie jr. in iron man married a fran schichise with or people, but in terms of the back end, it would be difficult to replicate. i'd be surprised if someone ilse can duplicate the tom cruise business model. >> how successful will it be for cbs paramount ultimately >> you know, i don't know the internal economics obviously, they're confidential between the two of them. but if you ask my guess, based

on what i do know, i think the biggest winner is going to be tom cruise and then david ellison, and i think paramount viacom is farther down the waterfall that i understand. so i think it will be good for them, great for the industry but tom is going to be the big w winner here. >> rich, we wish you lots of ruck hope r luck hope to see you in the theaters. >> see you at the movies what's difference between retail investors who have gotten burned by volatile markets we'll talk to the former td ameritrade chairmanle in an interview you don't want to miss we're live from the market site in times square.

coming up, breaking inflation data that is next when "squawk box" returns. this is hannah, she's a posh virtual receptionist at the ready 24-7 to answer your calls and assist your clients.

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welcome back to "squawk box," rick santelli here with breaking news, live at cmehq, last breakingness before the memorial day holiday minus 105.9 billion, just so you understand, last month at 127 billion was the biggest ever so we know why gdp is down

that's one of the reasons. more imports than exports. retail inventories up .7 of 1% very close to the .5, excuse me, up 2.1 on wholesale inventories. personal income is up .4 of 1313%. so we see that the income side's a little light what about spend sping? spending expected up .8, comes in as expected, a hill little r. if we look at real spending adjusted for inflation, it's up .7 of 1%.

let's get to the most important aspect do deflator, up. if we look at year-over-year, up 6.3, coming off 6.6, which was the highest since 1982 if we look at the core pce deflator month over month, it was up .3 as expected. the high watermark there is up .6. so it's half of the post-cycle high maybe the most important funumbr of the day, personal expenditure core, deflator, year over year, exactly as expected. the high watermark was 5.3%, taking you back to 1983. so we tdefinitely see a rill

ea little easing back a little bit what's interest rate doing with regard to this we're still about unchanged on the day on a ten-year 274. down about three basis points on the week and we're all very excited that the monthly averages and weekly performance of the equity markets might finally be turning positive. mike back to you. >> so the core pce down below 5%, 4.9%, as you said, on a year-over-year basis it reenforces that idea, i guess that is guess, that we're flattening out. we have energy not cooperating on the one side, and we don't know what we might be moderating to, in terms of a level.

>> no, that's the key question the notion of peak inflation makes a lot of economic sense, considering all the issue we've gone through or are still going through, whether it's supply chain, covid or all of that. what's going to remain sticky, probably labor and energy, because of positive more than anything else. i'm not being political, can you look at either party, there's a lot of issues there. but how much do we come down oo even if we're at peak inflation, how much it moderates as comparison to where we were in 2018 and 2019, that's the most important aspect with regard to how jay powell and company proceed. >> we're going to stay in suspense for the summer on all these numbers, appreciate it have a good weekend. coming up next could the violent pamarket swin of 2022 scare away an entire

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[ dramatic music ] [ engine revs ] [ roars ] [ roars ] welcome back to "squawk box. take a look at the futures right now, actually picked up fagain after we got that pce data it was the third hospimonth in w with the pce up.

dow industrials up 90 and the nasdaq jumping the biden administration is planning to cancel $10,000 of student death per borrower according to sources who talked to the "washington post. they will limit it to $150,000 individualry or $300,000 for married couplesfiling jointly. president biden had planned to announce it this weekend but those plans changed after the shooting in texas. let's bring in joe moglia. we are going to talk about how this is the same or different from 2000. you are somebody who has a lot of experience at coastal carolina, at other places where you've taught. what do you think about the eye

ti dee of forgiving student loans, as someone who's worked on the business side and someone who's seen it at the school level >> i don't know how anybody could feel bad if they're going to have part of their loan forgiven one of the things they might want to have considered is instead of doing $10,000, x amount of percent across the board so people could get a bigger break rather than somebody who's got rless debt. i think it can only be positive. >> what about the idea of, you know, setting this precedent that you take out loans that are going to be universally forgiven there are a whole lot of people who say wait a second, i paid my loans. and they don't go away, it's going to be taxpayers that pay it off

>> i think we did this once. i don't know if we're going to be doing this forever. but you make a good point. we as taxpayers in effect are picking up the bill. but i do think, i feel pretty strongly that to be able to borrow money to be able to go to college is a good thing to be able to do going to leverage, a foodgood ro to do that we talk about people who don't have as much are going to benefit from people who do i don't floknow if we're settin precedent, but it is a good thing. >> it is going to be a frn inflationary measure i know you're looking at the lower rungs. if you're dumping that much stimulus back into the economy, it's only going to be add

togadding to the hyperinflation >> the reality is i think middle income families in the country already have a recession this is very, very painful to most families in the country to give a family a break, with food and gas and transportation where they are, this is a good thing had in this era, in this period >> sorry for dropping this on you. but let's talk about why we brought you on this morning, what we've seen in 2022. obviously, you lived through what happened in the year 2000, we had day traders, they all kind of disappeared after the dotcom bubble burst. we call them retail traders, and these people have soeen some severe pain.

what's different now versus 2000 what's the same? >> i think what's the same is first of all as you point out, everybody got hurt not just day traders and retail traders. everybody got hurt the phenomenon is the individual trader back then, what the trader has that's the same is four or five years of incredible market because of the internet. that allowed people to trade online today we've had pretty good last four years or so what happened, then we have the dotcom bubble burst, and that lasted for three year. what traders need, what a day trader needs, he or she needs a bull market. when things are going well if the market pralace, people who trade every day do very, very well we pretty much wiped out the retailers in 2000, 2003. and i have no doubt 50% of the

traders who existed trehree or four months ago are wondering if they should be in the same business we've got price improvement up the majority of your trades. the trade happens almost instantaneously, and you get it for free in both cases it's really painful. >> the big question for the markets as a whole, also for a lot of the firms at ththat haven rushing to serve that retail customer at that was interested in free trading, weekly options, all the things that were very easy but maybe not as fun anymore, can they be converted over into longer-term investors? there's tons of tiny accounts, they would involve to be an all-in-one hub for these people. what are the prospects that that can happen

we talk about free trading, it's never been easier to be a buy and hold investor either >> i couldn't agree more first of all, the situation for the individual veinvestor has never been better. we talk about robinhood. they've got to to a better job diversifying the revenue stream. people really have to learn and be comfortable with what to do with them and they can think about those instruments in terms of being able to hedge we need to do a better job helping providing them with information and tools to help them learn that. the issue that you talked about, i think over time, you start to learn a little more about the wisdom of what it is to become a

strategic strategic long-term investor, one is discipline. the other thing is you're not trying to pick a bottom. and those are all very, very strong principles for any individual investor and for frankly, many institutional investors as well. >> a >> the reality is we saw a lot of investors who got burned so badly in 2001, they walked away from the markets, maybe they haven't come back in this is a whole new generation are they going to have the same bad taste in their mouth be turned off about what it means to be savers >> the dotcom bubble first of 2000 so far what we've been going tru

r through right now is bedifbedifvery difficult. we stillva l have a little moree before something like that happens. there's no question that many of them have really been hurt, and i have no doubt that some of them have already left, but it's not as painful for as long as what 2000 to 2003 was. >> i look at that from the perspective that there was so much liquidity and money that went into the markets, because hundred you had stimulus checks, extra money floating through this. how do you take out and figure out how much of the gains it liquidity we saw in the market were temporary, how much weren't. it's not just the retail investor you had the fed flooding in money in all of that it's hard to figure out what's what >> i don't think that's any question you've had people on your show that talk about, there was x

amount of trillion dollars of stimulus that came into the market over the last few years x amount of it is still left we're focussed on the individual's ability to be able to invest. but the reality is, for the individual family, as i said a few momentsin ago, they're not waiting for a recession to happen no matter how much stimulus may have existed up until now, i get involved with a lot of families with football in coastal carolina i still have a lot of friends who don't make much money. they're suffering right now. and from an economic perspective, the middle class issing i issing iis going that you recession already. it's institutional investors who benefit more than the individual investor >> i want to go back to your

experience as a football coach head coach at coastal kucarolin you come out with some pretty tough words. you wrote an op ed, basically saying the ncaa shouldn't exist anymore. there should be a new management style, a new way of doing this, pau because of the nature of paying k college players at this point. that's a big sacred cow to take on what's your rologic behind that? >> i don't have a problem with players making more money. and if you knew how much money the power five schools are making just from football, in terms of television revenues, it's extraordinary so as you saw this happening all along, you're going to have more and more people drive n by agent and ralawyers saying hey, we ne

a piece of that. it is the biggest event to happen in the history of college sports and when it was announced, the ncaa was nowhere to be found so things in recruiting for example that the ncaa would have given a death penalty to, you erim nat eliminate football for a period of years, now all those things are illegal. there's no guidelines, no structure, none of that. and there aren't any contracts so an individual player, for example, today, i bet you there are at least 35 player, and it's only been around 14, 15 months, a million dollars or more. and we're probably going to have ten, 15, making 5 million or more so in the nfl, a player or coach has a contract that he has to live up by in college sports, the individual is a free agent, literally almost every day, and they can almost put themselves

on the portal, which means they're open to being transferring and recruited by other schools in a deal. the ncaa was fro nowhere to be n in this. if they were running a business, they would hav if they didn't fire the team, someone would come in to eliminate that particular business so them not to be involved to me is a business faux pas now it's college athletics that needs to break-away. the ncaa had their chance. create their own governing board to abide by in the best interest of college athletics but not duck when something around the corner is very, very difficult >> joe, big ideas taking on a sacred cow like that i hope you're coming to us from an undisclosed location. let me know what you hear in terms of this. >> i will, becky

i'm not afraid i'm in my condo in myrtle beach. that's where i am, okay. >> joe, thank you. always great talking to you. we'll have you back soon thanks for everything. good to see you. >> great to see you, becky thanks for having me on. when we come back, we'll tell you what to watch when the opening bell rings on wall street dow up by 125 points i don't know if this is because of what we just heard from the idea of the student loan forgiveness or the pce >> yeah, inflation data, sort of >> we'll give everybody $10,000. u'sdaq up by 152, s&p up by 31 yore watching "squawk box" and this is cnbc

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a little more than an hour to the opening bell on wall street dominic chu has some of this week's top market movers >> let's get you up to speed on the late-breaking earnings stories. you have big lots, first of all, down big after missing wall street estimates with profits and revenues compounding the downside, big lots reports a bigger than expected drop in sales at

established store locations, cautious full-year guidance like other retailers have with the effects of inflation on consumer spending those shares down about 15%. chinese internet, pinduoduo, it reports better profits and revenues and like alibaba, it was helped by the chinese covid lockdowns down 62% over the last year or so then we check on the megatech and tech-related stocks at home because analysts at goldman sachs have compiled a short list of stocks best prepared to weather the tech volatility. some of those names are amazon, uber, meta platforms and google parent company google alphabet you can see there. there's more on the story why they're good picks if you're a cnbc pro subscriber, go to cnbc.com/pro and they're running a special memorial day pricing this

weekend. the you're thinking about joining our digital subscriber ranks, this might be an opportunity to get ari for three months at a special price. we'll check those stocks out back to you. >> dom, thank you. pushing ahead with a multibillion sale of baby formula form units last month reckitt kicked off with enfamill. the unit could fetch around $7 billion. the sale process comes amid a nationwide shortage that has left companies scrambling to keep formula on shelves. >> futures moving higher in about the last 25 minutes. we did get that new read on inflation at 8:30. the fed's preferred measure came in as expected, which may be seen by the markets as somewhat of a beat in that at least it wasn't above expectations, s supports the idea of peak inflation in the rear-view mirror victor jones, head of global

strategy at tasty trade. we're up 4% on the week, up more than 6% from last friday's low in the s&p 500 going to build on that, it looks like at the open you think the market has built itself a little bit of a cushion here we're through a rocky earnings season more or less and it's two weeks until the next fed meeting. >> good to see you again, mike look, i think you had a bit of seller exhaustion. you've been touching on this a little bit 3,850, you didn't have a great catalyst on the short side to continue to try to want to be bearish at that level. you got 16 to 17 times forward multiples, technical level at 3,850. opex flows that could potentially lead to an upside. you're in a bit of a pocket, the poor pce number this morning, in line for expectations, nothing spooky there you've seen a backing off of fed rhetoric, no surprises in the minutes. you probably have a sort of a

collaborative effect to create upward bias of momentum to the upside the problems here are light liquidity in this market so you don't necessarily have a lot of upward participation here just yet in order for the short term for you to believe in this market, i think you have to believe that earnings have been discounted enough, you have to believe you'll continue to see cooling or disinflationary data. you have to believe we're not already in a recession i get that's a low probability but we came into this year expecting above-average trend growth, immediately first quarter, we've got gdp down 1.5% atlanta gdp now is forecasting second quarter gdp down from 2.4% ten days ago down to 1.8% i think the market has a lot to worry about. this will be a series of hurdles. if you look at volatility specifically, it didn't come out of nowhere you have the fed who is continually letting the markets know about an adjustment in

monetary policy. because of that, off well-hedged market if you look out there at the volatility, excuse me, at the vix term structure, it's effectively flat until december. it's telling you that the market's not looking out at a point in time and saying here is the point in time in which we expect less volatility you've seen a relatively flat vix term structure at 30 and until you get that second quarter gdp and the numbers leading to that, it will be a series of hurdles on light liquidity. don't get too optimistic too early. >> light liquidity works in both directions, of course. >> absolutely. >> credits cooperating at least right now. are you selling this one right here five seconds >> no, definitely not. i think 4,200, 4,300 you get an opportunity. jnk, hyg have all started to roll over a little bit, signaling credit markets are easing as well >> victor, thanks very much. >> thanks. a quick final check on the markets ahead of this three-day

weekend. looks like we're going to open up higher. 30 points higher on the s&p 500, 137 points on the nasdaq make sure you join us next week. becky, have a great weekend. mike, have a great weekend "squawk on the street" beginning right now. >> thank you good friday morning. welcome to "squawk on the street." i'm carl quintanilla with david faber and leslie picker. jim cramer has the day off the bulls were hoping for a pce print and we got it. more double-digit losers in retail, maybe some month-end positioning a head of the weekend. a possible winning week, all three indices on track for gains, 3% to 4%. the s&p poised for its first weekly gain in eight >> and those on inflation watch, signs of price increases could be slowing