good morning welcome to "squawk box" here on cnbc we're live from the nasdaq market site in times square. i'm rebecca quick along with brian sullivan joe and andrew are off today >> good to be here >> we are will look at the u.s. equity futures not off to the best start so far. dow futures are off 225 points this is a decline we have seen in the last 15 or 20 minutes the s&p and nasdaq had been in positive territory now the s&p futures down 28. nasdaq off by 45 of course, this comes after stocks are coming off the best week in more than two months all three of the major averages jumping by more than 6% last week ending losing streaks of seven and eight weeks.

all of the gains helping erase the major indivisces losses dow and s&p in positive territory for the month. this is the last trading day of the month today. we are there nasdaq still down 1.5% if you said this is where we would be, a lot of people would have signed up for that. treasury yields are picking up this comes as the fear traded off on the position. people who are selling treasuries rather than running last week. you see the 10-year yielding 2.82%. cryptocurrency prices. you will see bitcoin is up 2.8%. gains across the board for the cryptocurrencies really the story is oil this morning. >> i think so. we will hit that story in a minute jim cramer was tracking the price of oil and stocks. oil does this. stocks doing

that let's tthis after europeanr reached a deal late yesterday to ban about 90% of russian crude oil by ship by the end of the year it broke a deadlock by hungary which held up talks. they granted the exemptions. hungary and slovakia and czech republic will still get oil via the pipeline likely driving up prices this morning and that is the lifting of covid restrictions in china we will have a live report from eunice yoon in beijing in a few minutes. i want to dive in, debecky, befr we move on i want to be clear with the eu and oil. >> yeah. >> what they are saying is they will ban -- most oil comes in super tanker banning oil from the eu via ship

hungary, slovakia and checzech republic have to get it because they have no ports they have to get it by pipeline. they can't do it russian oil can come into the three nations via pipeline the rest of europe will wean off pipeline the price of oil is up it is probably more china that is moving oil. india has been buying up all of the russian crude and no indication they will stop. it is unlikely this will hit russian sales of crude too much globally it will hit eu sales, but i think india and china will pick up the slack >> the eu has been spending $23 billion a month on russian energy imports with some of these things if you say you are not going to take it, is it that easy to rec rer reroute? these are the tankers and go in

a different direction? >> there is a lot of stuff i don't want to go to the tanker weeds. you can say how do we know the russian crude doesn't go out on one ship and transfer to another shi ship it is hard to track where the oil is sometimes iran plays this game well. >> to get around the embargoes what is the ship or the oil? in many ways the eu caved here. >> to hungary. >> no. on natural gas they didn't do anything on gas and, in fact, they actually opened up -- >> it is more painful to them on natural gas. >> correct they eased the banking requirements on the russian -- russia demanded to be paid in rubles this is russia and europe caving to russia on the gas side. they are more afraid of gas. natural gas.

people freeze and can't make rene renewables oil means transportation >> right we are watching the higher oil prices you point to what is happening with china we will check in with eunice yoon later this morning. another story we are watching if you have not seen it president biden meeting with jay powell at the white house today. ahead of the meeting, the president outlined the plan to fight inflation that was published in "the wall street journal. the president saying it is likely job growth could slow from the maconthly pace from 500,000 jobs to 50,000 jobs in the efforts to combat high inflation. he outlined the plan he agrees with the fed's read on inflation that it is too hot he will not interfere with fed policy second, he urged congress to act on the policies like clean

energy and the plan to build more than 1 million housing units. third, he reiterated the tax priorities calling for more resources to collect tax that americans owe calling for a tax code overhaul to charge billionaires higher rates and call for a leveling of the playing field. there is nothing that will be a quick fix in this. the most important thing is he is backing the fed policy and he won't interfere like you see from previous administrations. you see a difficult economy up against the election a lot of the other things will not fix anything in the short-term you need to fix the supply chain. none of this is getting fixed any time soon. >> on june 30th, the long l longshoreman union is calling for strike

that is 40% of u.s. imports. if there is no deal made there, if you thought supply chains were bad before -- that's 40% of u.s. -- >> do you think that will happen >> no, no, no. >> i can't imagine allowing that to happen. it has to get resolved somehow if they actually go on strike with the existing infrastructure strains. >> i'll take you to the nitty gritty i was at the conference out at the milken conference. nobody wanted to talk. i didn't have voices so i didn't do the story i feel that is a good sign they don't want me or tv butting in mucking things up. >> yes. >> i said mucking. >> is that what you said >> mucking things up. >> not pucking >> plucking? >> no. pucking. >> in other inflation news

fed governor christopher waller is looking to support the rate of 2.5% to bring inflation under control. we were closed yesterday the markets were closed for memorial day waller was in germany. that is why the headlines came out on monday when we were saying why is he talking on monday waller said they should raise rates .50% at every meeting until inflation is curbed. you had mike santoli on and saying the fed is going dovish marke markets rallied. >> two .50 point rate hikes. anticipating the market had been >> waller is not powell. he just mucked that up waller >> he might have agreement from folks like bullard and others who are hawkish on this opinion? we will see.

the market got its equilibrium back with the two .50 basis point hikes. >> we were great on the dovish last week. waller punched the party in the face along with waller and oil. >> two big issues for the market to contend with and why you are seeing futures a little weaker this morning it is the last trading day of the month. we will see what happens >> i just got a text from a guy. a friend who is a port executive. saying you won't see a settlement until later this summer they will not strike for the reasons you cited. he's in a position to know >> if there is a strike on top of it, i can't imagine the administration allowing that to happen too much pressure from all sides. >> whatever emergency war powers whatever they might have, you can't shut down the ports of long beach and los angeles

longshoremen have power. they should. they busted their butts during covid. in corporate news, unilever shares rising. the company announcing it added nelson peltz to the board. he owns 1.5% stake in the consumer giant nelson peltz with the p&g turn around unilever says peltz will join as a non executive director in july and serve as the compensation committee. unilever shares up by 6.6% this morning. >> our corporate neighbor. >> yes >> just built a new headquarters. >> just in time for everyone to work from home. >> them and lg all right. did you see "top gun: maverick" this weekend >> i didn't.

i want to. >> "top gun: maverick" brought in $156 million in north america. that is a record for the holiday weekend. a career best debut for tom cruise the movie scheduled originally for release in 2019. it was postponed several times in 2020 and 2021 as theaters were closed. paramount said half of movie goers watching this weekend were over the age of 35 no surprise there. older audience the other hits this year have drawn in younger crowd we'll talk more about this in the 7:00 hour. >> there were questions if older people would show up and if they were afraid of the theater because they would have bad outcomes of covid. >> define older. >> you, me >> i'm not worried i had covid twice. i got a group. >> once. >> i had 12 friends seeing "top

gun" thursday night. get adult beverages and dinner >> we were at the beach this weekend otherwise we would have seen it. >> if i owned a theater and i would make all eight screens >> paramount and tom cruise look brilliant to hold this back. we will talk about this with brian robbins. the ceo of parmamount we will see if movie theaters are back for good. forget about streaming >> the movie is the movie -- apparently the movie is 99% positive. >> on rotten tomatoes. >> adam aaron said this is the best movie he has seen

"wizard of oz" and "top gun: maverick." talk to me, goose. it was a bumpy kickoff to the summer travel season if you were stuck in a car, you were lucky u.s. airlines canceled 2,500 flights over memorial day weekend. more than 1,500 cancellations just yesterday according to data from flight aware. stormy weather in florida, new york and mid-atlantic were a big part of the cancellations and delays it comes as the airlines are working to ramp up staffing to try to handle expected record travel demands this summer and cancellations have been high and numerous weather is always an issue when you are thinly staffed and don't have back ups, cancellations happen more quickly and in greater numbers >> nobody needs to tell me what to do. be nice to the airlines. i fly all the time the people who travel a lot don't get upset. all right.

delay. cancellation we go again. be nice to the folks i see people yelling at the gate agent. >> bill o'reilly >> you yell at the gate agent? you know, we were going to be delayed and because you screamed at me, now we'll takeoff ridiculous people have lost their minds. coming up, it is jobs week in america we have a full rundown of the markets and the agenda ahead on "squawk box. the monthly jobs numbers the price of oil is up dow futures off 226. you are watching "squawk box" live from the nasdaq market site in times square. we're back after this. grab some coffee >> announcer: this cnbc program is sponsored by truist securities experience, expertise, execution.

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on this week's squawk planner,s president biden is meeting with jay powell at the white house today. this is the first time since jay powell was no, confirmed as char for the second term.

the key issue is staying out the fed way and agreeing the inflation is tight also, on the data front, we have s&p home prices that is due today at 9:00. on wednesday, labor turnover on thursday, adp private payrolls for may and jobless claims friday is the big one with the may employment report. on the earnings front, we hear from salesforce and hp after the closing bell tomorrow, enterprise and hormel and broadcom. a few painful weeks of declines and all three major averages snapped back. now you want to know what is coming up next you don't care what is going to happen we bring in the senior extract

g strategist from fixed income welcome to you both. mimi, we felt great. maybe the fed will ease up a little bit stocks rallied let's not for get the biggest runs that occur in down markets. the 2001 downturn had eight rallies of more than 20% although the market fell 75% over two years what is your expectation >> i think you mentioned bear market rallies can be tremendous we have turned neutral here. we came in under weight equities and fixed income with the short duration bias. we closed out with financial conditions easing up mira miraculously in a short span of time we think that we're more neutral

on the equity side on the broader dip, we look to go overweight. we closed the underweight on the fixed income side. we are short duration. we feel the market is fairly priced here. >> fairly priced anthony, listen, you are the interest rate guy. last week was all about the fed maybe easing off a little bit. nope waller is punching the market in the gut over there in germany saying 50 basis points or suggesting that is what he would do what is your take on how much changed if any in the last 24 hours? >> not much has changed. i say not much has changed investors getting euphoria we may see the fed pause in

september. we think they go 50 basis points in june and then in july we think it is important to keep in tightening mode you look at inflation and we are at four decade highs you look at the decomposition of inflation, you see particularly negative impact to lower and middle house holds food inflation and gas prices so high we think the fed will continue to raise here. >> anthony, i'll go back to you on that. you are bringing up a really important point. we focus a lot on energy costs in many ways, energy is the economy. the federal sereserve is raising rates. if you are buying or renting, that is out of reach for a lot of people. credit card rates and revolving limits will go up as well. many argue this is a supply driven inflation crisis. two-year backup of supply chain.

what can the fed do about that >> from the monetary policy perspective, the fed counteracts demand this is a problem with the fed being complacent for so long they have to use the blunt tool to try to corral inflation we agree risk in the housing market affordability has worsened with mortgage rates above 5%. if you look at other parts of the economy, particularly the labor market, two vacancies here for every job. the fed has to do something to slow down the overheating. >> if the fed can put in 100 oil wells, that may help mimi, where is the best place to invest >> we like baskets of diversified assets i agree with everything anthony has said i don't think the fed will cause any time soon. they need to see a clear and convincing argument that

inflation is slowing we like basket of assets on the equity side, we like equities that can perform well in energy transition like uk, norway, clean energy stocks. in fixed income, we favor the front end. we do think there is a lot more demand of the higher yields than we would have seen last summer levels we like a basket of diversified assets including real assets. >> inflation hard assets real estate and paintings? anthony and mimi, thank you very m much becky, the market has taken a huge hit this year largely because of the 50 basis point rate hike. .50% we are talking about going up another 2%

what is priced in? >> the market has taken the hit because of what they see coming. >> i hope you are right. if you are right, we he might b all right. >> a lot of the problems with inflation right now are not things the fed can fixed we will look at higher rates it will bring down the economy the question is is it enough without putting us in the gutter that is tricky >> they should have thought about this two years ago when the country was locked down. when we come back, some chinese cities arerestrictions we will take you live to beijing for the latest that's next. and the return to movie theaters we talk to the ceo of paramount pictures with the success of "top gun: maverick." at 8:30 a.m., adam aron will talk about what he saw with the movie and a lot more

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it's time for the executive edge beijing and shanghai started to relax covid controls as case numbers drop eunice yoon is live from beijing with the covid cost on china eunice, it's good to see you >> reporter: hi, becky there has been a lot of focus on the cost of supply chain and factory closures there is another big cost. the hurdles that zero covid presents to going about the business of your life. in zero covid beijing, the morning commute for cy wong has

looked like this with public transport res restricted, wong pedals 12 miles round trip my back side used to hurt in the beginning, now i'm used to it. his bike ride is one of millions of disruption across the city and country which added together is paralyzing business here. what took him 20 minutes on the subway takes double the time for a month, there was no public transport or ride hailing services where i live in beijing either if i had to go to the office, i would walk about 30 minutes. the office compound restricts who can be there at any one time if i have an emergency and head to the office, it takes a while. rules seem random. on the right side of the road, people are mandated to work from home on the left? they can go to the office.

many people are working from home, but as a technician at a hearing clinic, wong had no choice but to take his morning bike ride. i have to give myself more time, he says, for unexpected situations like traffic. i get up at least 20 minutes earlier now. wong is looking forward to getting back on the subway how is it? i'm kind of sweaty, he says. the big test for zero covid is likely going to come in the next couple weeks the testing facility behind me as well as many others throughout the city were jam packed today shoeing people away because they ran out of test tubes because there are so many people getting ready to go back to work the question is, if there is a surge in cases, what is the government going to do will they tweak, maybe, the definition of zero covid or reimpose the lockdowns again

guys >> eunice, tweak the definition of surge you are talking about 150 cases versus what we see every day here in the united states? they are far greater numbers >> reporter: that's right. that's right today we had one case in the community for beijing. of course, beijing officials told that particular district that they had to make sure that they all worked from home. very restrictive with that district it is totally different world when it comes to that. >> we were talking last week about the battles with the president and premier. what they think is going to come down what clues have you gotten about the direction policymakers are leaning at this point? >> reporter: it is difficult to say at this point. today, the main message from the leadership has been all about stabilizing the economy. 33-point plan was nveiled.

it was unveiled last week and reiterated again today to say this is the way we will stabilize the economy. we're getting that message from the top. of course, nowhere in that 33-point plan is the idea of getting rid of zero covid. that is one of the main reasons, if not the reason, why we are seeing a lot of trouble with production as well as demand of course, there is more evidence of that with the official pmi that came out today. even from the local level, we're seeing that the authorities are running cross purposes for example, one restaurateur who said he was happy he was told he was able to open the restaurant the only problem is the authorities won't allow him to use cooking gas. it mays it difficult to open the restaurant. >> eunice, we talked about this. we have a robust debate of what policies may work in the u.s it gets nasty, but we're having

the debate is there any debate at all do you open the paper and an op-ed saying zero covid will never work and it is foolish and we need to end it? is there any push back at a high level? >> reporter: there has been more and more push back, brian. especially from the private sector in the past week or so, i would say in the past two weeks or so, we have been hearing more from high level either the head of the trip.com actually made comments locally trying to say there should be more of a balance with public health, especially when it comes to mental health with the lockdowns. weighing that against the virus. then, we also heard from some high level academics saying another way to save lives is with a healthy economy once that conversation gets

going, it immediately gets shutdown although there is a level of tolerance or understanding that people want to vent frustrations, but at the end of the day, zero covid and lockdowns are celebrated and valued much more by the leadership >> eunice, i'm not sure how you have done this over the last two and a half years living with it and covering it brian and i were talking about it kudos to you >> i couldn't have done it >> reporter: thanks, guys. it's fine. the place is fascinating also, i really enjoy having the conversations with you guys. it really keeps me going >> we really enjoy hearing from you. we're glad to see you are still doing well thank you for everything you have been doing. we appreciate it >> yeah. absolutely the stories she's told have been powerful and so difficult. people, her friends, or people

s she knows, lockedin their apartment for 45 days. can't leave. when they lock you down, you may not have just gone to the store. you may be running low on food thinking i'll go tomorrow. then -- >> i can't figure out how these people have done this. eunice has chronicled it well. >> eunice is a lot braver. if i was a western journalist in china, i would have left i would not have done it no way thankfully eunice is there. coming up, stocks on the move dom chu will have a look at the morning movers next. we will speak with goldman sachs guru jeff currie about the move in oil oil at 118 right now eu cutting off more russian oil by the end of year could it go to $150$150?

175? "squawk box" is coming right back >> announcer: executive edge is sponsored by at&t business 5g is fast reliable and secure ! so we're givinery business, our best deals on every iphone - including the iphone 13 pro with 5g. that's the one with the amazing camera? yep! every business deserves it... like one's that re-opened! hi, we have an appointment. and every new business that just opened! like aromatherapy rugs! i'll take one in blue please! it's not complicated. at&t is giving new and existing business customers our best deals on every iphone. ♪ ♪ new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today.

welcome back i'm rebecca quick. i'm here with brian sullivan who was supposed to be doing this read he went out to get coffee. out on the street. he is coming back in just a

second getting coffee from the cart outside. man of the people. let's see what is happening with the futures. you will see we are under a bit of pressure. the dow futures off 160 points s&p futures down 20. the nasdaq off 30 points we had seen more weakness when we started 40 minutes ago. now bouncing back and forth. before we were negative, it was positive we'll call it a monday since it was a long weekend do dom chu has more >> good morning, becky the monday and tuesday crossover. we call them merger mondays. we'll talk it a takeover tuesday with the holiday commodity driven pre-market movers so far this morning right now, on the takeover/merger front, you have one that is materializing in the gold markets that is yamana gold. up big 15% right now. it has agreed to be bought by

gold fields international which is down 12.5%. the reason why is because yamana gold is acquired by gold fields for complete stock transaction that gold fields is driving the down trend when this merger eventually closes, if it does come to fruition, it is headquartered in south africa operations in canada and south america as well. we'll keep an eye on that deal the commodity front. oil front and center the eu agreed to ban most russian oil imports with the few carve outs that is pushing the price of oil higher wti crude at $119.43 at one point this morning it is up 3%. ice brent crude is 1.5% gains there.

nationa nat gas is low occidental is indicative on the u.s. side up 2.3%. mega stocks in focus we are seeing losses with apple, microsoft and alphabet after these three stocks posted 5% to 7% gains over the last week. off the recent lows. the notable exceptions from last week's trade were amazon and tesla. amazon is down fractionally right now. it was up about 11% over the course of the last week. tesla shares up 21%. a lot more volatility with amazon and tesla trade still keep an eye on the mega cap tech trade especially with a little more down side volatility given the futures picture. beck becky. >> thanks, dom. coming up on "squawk box." it is jobs week. the read on the small business

sector with the ceo of paychex we will speak with brian deese about inflation and mu me.chor dom just said oil is up. we are back right after this

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small businesses seeing their 12th consecutive month of wage growth.

job growth slowing at the biggest pace since the pandemic began. we have the chairman of paychex. marty, this is interesting we are trying to figure out how long wage inflation will continue and job growth will continue it looks like according to your data, we could be nearing peaks. >> becky, on the job growth, as you get close to full employment, it is tougher for businesses to find workers demand is still there, but the workers are tough to find. particularly for small business that don't have as many benefits they are not as open to hybrid working to make it more difficult. you are right. wage growth is really strong 5.2% 12 consecutive months of increasing wage growth >> how would you read this if the fed is trying to get a handle on things to say okay, we need to continue to raise rates until we start to break

inflation. we're worried about how steeply we will tank the economy in the process. what would you tell jay powell at this point? >> i think rates stillhave to go up a little bit it has to slow down some of the inflation. people have to have -- in the end, you want the demand for goods and services you want people to have spending money. you don't want inflation too high where they can't buy the ser services the demand is there. it is finding the people wage rates will continue to go up when you can't find people. there is still a lot of turnover in the marketplace both small and large businesses we're hearing that consistently. 63% of terminations are voluntary. that is double what it was in 2019 you are seeing a lot more people quit jobs and move to other jobs hopefully mall bsmall business d pick up for those. >> that has to be huge consideration for the small businesses you speak with? >> it is tough

they are small teams and rely on individual workers it is difficult when they lose someone. they are trying to add more ben p f benefits more health plans. the ability as much to work from other locations. that is hard for most small businesses and the way they are doing business >> how does this breakdown geographically where are the strongest areas and where are the weakest? >> the strongest job growth remains in the southwest particularly texas texas is the top state that is with houston and dallas being the top cities you are seeing a lot of growth in, of course, florida, arizona and texas, georgia these are the states where i think are the most workers for small businesses and most people migrating to drive the demand. you continue to see the states being the highest growth from a jobs perspective >> the industry leading the way? >> industry is leisure and hospitality. it had the biggest drop year

over year. i think what is happening with leisure and hospitality, they are running out of people to put in restaurants and hotels. it is hard to find people who want to be in hospitality and leisure. they still have the strongest job growth year over year and strongest wage growth at 8% and close to 9% right now sdp >> marty, thank you. >> thank you, becky. coming up, listen up esg fans new data on capital on the wod'rls biggest companiesand how they are doing that's next on "squawk box."

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diversity increased around 6%, and board diversity data increased by 13% joining us, ashley, welcome to the program. those gains, how do we read those gains, 6% and 13%. would you quantify that as good or too slow? >> well, it's become clear that there are areas where we have seen progress, and those gains may not seem super significant, but those are areas where investors really push and where we haven't seen the same disclosure fairly significant if you're thinking about measuring progress, and we have to have transparency and disclosure as part of how we keep companies

compatible to the commitments they made two years ago. >> perhaps people can get this going as well. corporate america will have to lead, i assume, from the front we've got a lot of ceos that watch this show and this network. what would be your best piece of advice for them to accelerate this kind of disclosure and the changes they need to make? >> well, i think it really comes down to beginning to listening to your stakeholder and mentioning that investors have really been pushing for these issues of expanded disclosure around workforce, board diversity, pay equity. the american public really wants to see corporate america be more transparent about these issues, and we know that from our polling some of the issues americans care about are things like pay equity analysis, assuring that those are being conducted on an annual basis you know, the american public thinks that racial equity cannot

be achieved without workers being paid a living wage so the american public is really looking and watching for corporate america to step up we mentioned this point two years ago. companies made some very public commitments to racial equity i think this is less of a sprint and more of a marathon but we need to see progress eye long along the way regardless >> you're talking about companies disclosing pay and whether or not, correct? that's the difference. >> they're conducting these pay equity anal cyses in the first place, breaking it down by race and ethnicity to know whether you're paying workers equally across the demographic >> there's these gaps. i was looking at your report

last night 98% of companies say they have anti-harassment policies i don't know what the other 2% of companies do. we don't have any, go ahead and harass, anyway, 98% report having anti-hant policies, but only 21% report that they have anti-harassment policy training so it feels like there's a large gap there, ashley. >> there's a gap so this goes to underline the point of disclosure not being everything disclosure is so critically important. what's important is not just to disclose that you have a policy on a given issue, but to really think through what it looks hike to demonstrate that you've actually woven these issues into your culture so the idea of having a policy is great, right? but take it a step further and actually provide training for your workforce so they can know how to address issues of harassment within the company. >> ashley marchand, it's a

pleasure to have you on. thank you, important data, and clearly some work to go. ashley, thank you very much. you know those, i'm sure a lot of our viewers who work for big companies, here at comcast we have these modules, and over year there's a new one my favorite is the defensive driving. as a 30-year car racer i'm being a little bit fasee shus but we all do them, we're very appreciative >> not being facetious now >> i'm a very defensive driver >> rather than being an offensive driver when we come back, stock futures have been falling. we're going to dig into these moves right after the break, and later national economic council director brian deese will join us and a "wall street journal" op

ed we'll talk more about that "squawk box" will be right back.

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good morning, and welcome back to "squawk box," live from the nasdaq market site in times square i am not joe or andrew >> you are not >> i am brian sullivan along with becky quick whom you do know br andrew and joe are both off. good news that they're off their lows clear values in the green. nasdaq futures, let's call that flat by the way, oil prices are up at 118.74 that hit the futures earlier, come back little, down, but not collapsing, how about that >> about an hour and a half ago, the s&p was in positive territory. >> it was a holiday, the markets were closed. one guy was late you know, there you go >> then he showed up. >> showed up, and apparently he's buying. we're still down but the markets

have come off their lows here's what's making headline this is tuesday morning. it was a difficult holiday weekend for the airline industry, and oh, by the way, those people on the flights as well about 125 flights were canceled amid staffing problems, travel impacted by thunderstorms in florida and the mid atlantic i flew back on friday. it was one of those flight where the entire flight you're, i mean, the whole way, the whole two hours. you know, not a bad -- >> i would have vomited repeatedly, i can't handle turbulence >> it's annoying >> it's not just annoying. it's deadly to me. >> i shouldn't have mentioned it >> i get sick thinking about it. >> we coming in side ways to newark one of those things like why can't i see the tail

zf president biden and jerome powell will meet today, the first meeting since powell was confirmed for a second term this month. the higher rates have significantly impacted at least one source of higher sflaigs the price oflumber red fin had a report that the average mortgage payment is up 43% year-over-year it went from 1750 to 2430.

so people moaning and groaning about gas. >> the average. >> or your norm. >> you have a flexible rate. it's red fipn's data >> a lot more people are signing up for adjustable rates rate now thinking maybe it's going to cool down, but do you do that in a rising rate environment? >> relatively speaking, i mean, historically, we are still at pretty low rates you're right, up 43% a from a year ago, a mortgage payment but nowhere near as high as we could go >> 92% of mortgages, if i'm wrong, correct me, are under 4% right now. the bigger problem for housing, who's going to move s you're not going get a new house. dom chu, looking at this

morning's premarket movers dom, you did a fantastic job on the always excellent worldwide exchange >> i was going to say, i was watching you go get coffee, i was thinking why does he need the coffee so much if i gave him the extra hour or so to sleep in this morning, given the fact that i took over your show and i'm watching you here on "squawk box. things are starting to pick up a hil little bit here, driven in part by shares in unilever t that has spurred talk that there could be changes coming with nelson pelt, if that's the case,

those shares are higher about 6% alsokeeping a close eye on other parts of the market, specifically in cryptocurrency what you are seeing is bitcoin prices up. we were down toward the 28,000 mark in the last couple weeks here ether's up but then the entire kind of movement here is to the upside but we will keep a close eye as well on what's happening with the terra blockchain you remember the terra stablecoin went to zero over the last few weeks they decided to resurrect a version of the luna. so call it luna 2.0. then watching specifically what's happening with the oil market, due to the european union's decision to ban most the

russian oil. beck becky, oil and gas a big decision we were talking about some of the lockdowns coming off in so big cities in china. you can't expect anything other than these continuing rolling shutdowns will happen until they decide to move away from that policy >> you already saw some signs. they have their purchasers index. it signals contraction i would be curious to see whether the carryover effects. >> dom, thank you. see you later. all right, let's find out

what investors need to watch joining us is ceo and chief investment officer at defiance etf. great to have you on again we were feeling so good last week it felt like everything's back to normal. the fed's maybe going dovish stocks were going up now it just feels like a bear market rally that we have so many of, what are your thoughts? >> good morning, brian, great to be here. yes, it could be a memorial day hangover type situation. i think in the short term this is what we expected. we had an oversold bounce that is the most likely situation but i think that we're probably close to a bottom here you know a lot of the factors that signal a bottom are starting to come through you had high ratios, stocks in bear market territory. s&p at more than half the names at 25% i think that in the short term

we oversold and a lot of investors came in and seized the day on jumped on these opportunities to gather stocks at lower levels. so i would expect volatility going forward. i think it's range bound from here perhaps we get a little more pull back before we start to grow the second half of the year >> you said i'm neither bearish or bullish are you bearish on everything or bullish on everything. is it a possible to be bearish on, quote, the market? but bullish on parts of the market, like an energy trade >> well, i think comes down to the investor and timing, right in terms of short term trading opportunities you certainly have them you saw all three major index move 6%. could you have had a short little pop there for long-term investors, i'm very bullish look at apple for example.

you have 15% to 20% pull backs that's happened historically hmm every time s so i think for the longer-term investor, but if you're looking for a 20% bounce in the next couple months, i don't think it's going to happen a lot of it has to do with supply chain issues, covid, inflation. the good thing is, it's looking promising. jobs are softening up. mortgages are 43% up, but they're softening a little bit there are tidbits coming into the market that are making us think maybe we can dip our toes in >> it seems like it's counter intuitive. we want things to slow down a little bit summer, congress is going to be off for much of it

what's going to be the next catalyst in the next couple months or weeks? what's going to be the big thing for you? >> yeah, so, i think in a way, no news will be good news. but the good news will be news about the supply chain situation reopening, forward-looking sfl sflaigs reads covid go's way once and for all, these are all positive factors that could make the market bounce >> a lot of if ds in there

>> a holot of hopes let's hope there are no hurricanes thank you. >> ifs are better than buts, because ifs are possibilities. buts are here. >> i like big ifs, i cannot lie. when we come back, "top gun maverick" shatter s memorial day weekend records. the ceo of paramount is going to join us after the break to talk about the historic opening weekend and the return to theater e.th what it means for theaters and the streaming business and much more "squawk box" had be right back

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"top gun maverick" opened this weekend marking a historic weekend at the box office. the movie grossing $156 million at the dome box stic box office, marking the number one memorial day opening of all time. joining us is brian robbins. a lot of people were expecting big numbers, probably you included, but did this surprise

even what you thought this film could take in? >> oh, absolutely. this is a historic win for not only paramount pictures but the move owe movie business like this for a movie like this without a lead and without characters wearing tights and a mask. in the case of maverick, tom cruise, jerry bruckheimer and the film makers delivered us a perfect film and we put it if n the theatersa the right time >> you've held off and held off because you didn't want to send it straight to the streaming services in fact, tom cruise didn't want to send it to the streaming services, thought this was really important to be opened in theaters was there ever a point where you

doub doubted that strategy? >> no. this was really made for the big screen tom really thinks about the audience and wants to deliver for the audience, and this film is that. and it was always going to go to the big screen good thing we did. >> what does this say about streaming service movie theaters movie theaters are here to stay i think this probably says, but is it going to be different for every film is it different on a case by case basis >> here's what we know we know that the films that we make that get released in the theaters three at rickly are more powerful than films that go straight to streaming. we believe in the theatrical business, that sackis ak valtinu

streaming business >> i'm going to see it thursday night with a group of guys it's becoming like a cultural event in many ways if you're of a certain age the original "top gun" was like everybody suddenly wanted to be a fighter pilot, right it was amazing here's my question about the making the movie was scheduled to be released like three years ago. has the movie been finished for three years? or have you guys been tweaking it little by little over the last three year? adding stuff >> it's been finished for two years. they started shooting about two years ago. i'd say for the last year the movie's basically been done and locked and loaded and ready to go and obviously, we've been waiting for this pandemic to sort of be over so we could get it in theaters but no, the movie ease 's been

signature on the shelf, just dying for release. >> everybody knows it's going to be a hit, just itching to release it talk to us about that, but also reading what i've seen about tom cruise's contract with these accelerators or elevators or whatever they call them, could he make like a billion dollars himself from this movie? >> i'm not sure it's going to have a b in front of it, but everybody should do really well. tom and the film makers delivered us a perfect film, but our teams at paramount, the marketing campaign and distribution teams for this film overdelivered. we exceeded expectations and not only that, we proved the reach and relevance of the entire company at paramount. i mean, we used cbs football and mtv and our networks around the

world to launch this movie and a tremendous, tremendous campaign. and tom, to his credit traveled the world, got on the ground and shook hand the and showed this film all over the place. >> what's the next movie that you had will throw that entire apparatus behind as you mentioned, across all of the platforms at paramount sfwro obviously on "top gun," you saw the trailer for "mission impossible", whether it's dungeons and dragons or "mission impossible" or "teenage mutant

ninja turtles >> nerd! >> i don't care. i want to say this i know, love "the lost city. did you watch with the post credit with brad pitt? that's a big hit for you >> that film cost $100 million this weekend we brought that female audience back to the theaters for the first time there hasn't been a rom-com to deliver like this in a long time and, you know, we're grateful to sandra bullock and her team for delivering that picture. >> brian mentioned head of the class, your own throwback to the

things that you've done. what's your opinion at this point in terms of the slate of new movies and retooling old hits and bringing them back to the audiences who originally loved them and maybe their kids too. >> everybody loves nostalgia everybody's probably going to wake up and go oh, my goodness, what's in our library that we have to bring back the reason "top gun" worked is it had a name we recognized, a beloved movie from 30 years ago, but these guys made a perfect film it's 97% or 98% on rotten tomatoes and 100% from audiences. so, you know, you can have nostalgia, but you've got to make a great film. >> brian robbins of paramount pictures which has best memorial day weekend opening of all time with "top gun maverick." thank you for your time today.

good to see you. >> thank you >> you liked the "lost city" as well >> i did >> good movie. channing tatum has some chops. i always think of him from his first movie called "a guide to recognizing your saints. >> i thought were you going to say "magic mike. >> not that one. >> a low budget picture about growing up in new york in the '80s, and channing tatum is the tough antonio, the tough friend. it's a very dramatic, sad, touching movie then you see him with leeches on his hips >> get them off! get them off coming up, the white house working on a plan for debt forgiveness. this may be the worst public policy idea of recent times. we'll have more on what

investors can expect they had their best weekend since march, butha tt was last week >> what have you done for me lately sd . >> ex-tactually.

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welcome back, and good tuesday morning. the nasdaq and later on, don't miss our interview with adam aron a favorite trader stock. i have a feeling he's going to want to say meinsothg about "top gun maverick." you're watching "squawk box. this is cnbc to satisfy cravings from tokyo to toledo? so you partner with ibm consulting to bring together data and workflows so that every driver and merchandiser can serve up jalapeño, sesame, and chocolate-covered goodness with real-time, data-driven precision. let's create supply chains that have an appetite for performance. ibm. let's create.

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. this is cnbc, so let's talk stocks paul, sgragreat to have you bac the program. was it just a bear market rally or the start of maybe something a little more meaningful to the upside >> i'm hoping it's the latter, but unfortunately, i can't say that with a lot of confidence, so the way i have to position portfolios now is more defensively. if i was to get fresh tech money in today, and i probably will, i probably would only invest a portion of the portfolio and i'd

make sure with the names that i invest in i'm much more valuation sensitive than i may have been the last couple of years. >> yeah, and you like, i guess what you would call techish investments. an ibm, for example. and ibm secis tech. but they're not exactly the market darling of the last 10, 15 year. >> these are my dad's stocks but here's the situation i'm thinking companies like an ibm, which under a relatively new ceo is showing some semblance, not rocket ship growth but growth nonetheless. big dividends. i see the same with at&t, another yesteryear stock dumping your big dumb hollywood

asset, going back to bread and butter let's pay a 5% or 6% dividend n this kind of environment,ki i cn find relatively safe positions >> except at&t made that decision in less than a year's time one of the greatest corporate flip-flops with a new ceo. let's talk about cyber security. a lot of people think vladimir putin is going to be angry at the west for any aid to ukraine, oil sanctions, et cetera and one of the ways he may express that frustration is having his minions engage in cyber espionage. is that one of the thesises? >> among the industries within the tech sector, there are some that i will, i don't want to say sblie sbliendly go in.

>> any reason to own any companies that don't make money or have no free cash flow? >> no, i think we've entered a new paradigm, and i use the word carefully. paradigm means it could be long last be where we have to have strong fundamentals, earning, earnings estimates increasing every time a company reports, not decreasing, and reasonable valuations in the past it was always good to have good fundamentals, but nobody cared about valuation. i think the times, they're achangin'. >> maybe we never should have been there in the firstplace we didn't care about a lot of things for about a year and a half people buying money-losing companies. every new coin that came out

retail traders putting leverage on weird options positions it got weird there >> a lot of sins are corrected with zero interest rates, and now, we all know that rates will go up to some measure, then they'll stop you can't tell me when, and i don't thinkki i can get aggressive, at least until i get a sense as to when we stop ratcheting up interest rates right now we're in the middle of the program. if you can tell me the level and the day it's going to end, i'll say get back n right now i kind of go back in halfway. >> paul meeks, thank you very much when we come back, purdue university president mitch daniels on the president's plan for student loan forgiveness he think it is may be the worst

public policy idea of recent times. and at the top of the hour, brian deese on the flight against inflation and what the president plans to do. "squawk box" will be right back. can you a you can always watch us live on the go on the cnbc app n. they'd huddle.... welcome to the peytonverse. such a visionary. game plan... you go. no, you go! and call audibles... double our investment in omaha! omaha! omaha! omaha! or you could use workday. omaha. the finance, hr and planning system used by over half of the fortune 500. for a be-agile-like-an-mvp world. workday. for a changing world.

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. all right, good morning, and welcome back to "squawk box. we are seeing futures right now actually turn positive on the nasdaq they were a little higher yesterday, went lower this morning. but they are in the green. dow still down about 167 one of the major factors of the markets, not only today but the last few months or so are oil prices they are higher again right now. in fact surging up 350 a barrel to 118.59. brent is $123. this, partly, a couple reasons eu leaders reach agoing a deal yesterday to ban 90% of russian oil bit ey the end of the year.

the eu ban is going to be on ship-borne, super tankers delivering crude oil china opening up a little bit as eunice yoon talked about, trying to open up they could lockdown anytime. but those things together are sending the price of oil up. >> europe was paying about $23 billion a month recently for all the energy imports they're bringing in. for oil, i guess the question s we know natural gas, they're sticking with it >> different story >> they have no way of kind of freeing themselves from that they've got the pipelines that have been built up where are they going to be getting their oil if not from russia it's like a reshuffling. there's so much oil that's out there on a daily basis thatt's pumped and gone out. india is buying a lot of the

russian oil, any that they can get their hands on so where does europe turn to get their oil? >> norway, the united states >> there could be an oil ban that's been discussed. an oil export ban in the united states or other places i think it's a stupid move >> if they do that, you're going to slam europe one of the reasons diesel fuel costs are so much higher than unleaded fuel costs in the united states is that a lot of refineries here are producing diesel to sell to europe because they can make a lot more money doing that that's one of the reasons diesel is up. listen, we've been talking about their this since last year you're going to have fuel r rationing in europe. but this does not include natural gas. they have not figured out a way to get around that natural gas used to make stuff

t's it's not just used to heat homes. you need natural gas to make pretty much everything in the world. including pharmaceuticals. >> there's no quick fix for that you've got to build lng. >> if you want to come up with new plastic or a new way to build a car body or solar panel or wind turbine, let me know you can probably get really rich coming up, a big hour. we never say a little hour a tiny little hour of "squawk box" coming up brian deese and the president's op ed and his man toplan to tame prices and amc chairman

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hi, sharon >> hi, becky h you know, there are more than 40 million americans who owe $1.7 trillion in debt. about 25% of those borrowers are in delinquency or default. they worry even more borrowers may be in trouble once the repayments start >> we estimate that there will be several million who will be at risk of delinquency and potentially default. so we are really waiting for a decision on loan cancellation, because i think that will have a big impact on how the payment restart will play out and the overall impact on the economy as well >> now president biden campaigned on wiping out $10,000 in college debt per borrower the average balance is around $30,000 at graduation with a bachelor's degree and more than

3 million borrowers owe more than $100,000. chopra is a graduate of harvard and the wharton school at the university of pennsylvania he talked about his personal experience with student debt >> i am still paying back ply stumy student loans, but people like me aren't real litly the ones in trouble. >> they will make sure they have the information they need to transition interest this pause from this pause to repayment. they need to contact their servicer or make sure the information the servicer has is up to date for many they may have had a servicer change. you want to make sure all the information is correct also, start saving a lot this may not wipe out all of

your student loan balance. you want to make sure you have some of that saved up. and don't worry so much about a tax burden under the c.a.r.e.s act, student loan forgiveness is no longer taxable. you don't have to worry about getting a tax hit. you won't have to pay taxes on that money. >> sharon, thanks. for more on student loan forgiveness, let's bring in mitch daniels, the former governor of indiana who is now with purdue university and by the way, of the 2021 graduating class, 0% graduated debt free. that is 45% above the national average. mitch, thank you for joining us today. we talked briefly about this the last time were you on, about how you thought this was a pretty terrible policy idea what do you think now that it's

being floated that this is going to happen. $10,000. >> this dead fish isn't smelling any better the older it gets one reason it's taken so long for the administration to say something about it is because they know it's fatally flawed. they're going to give money to people making three times the national median average and household case, four and a half times. 71% of the money goes to the top half of the income distribution. this, there's just no way to present this that it isn't a give away to people who don't need it and who freely took these obligations on of course i believe in equal, unfairness is to all those millions of people who paid their debts back 99% of our graduates at purdue

do pay them back not sure what i'm supposed to tell them when other people are let off the hook so i think that among its other defects, the gross unfairness of this is the worst. here we were supposed to be concerned about income inequality and so forth, and this heads just the wrong direction. >> the other point on all of this, loan forgiveness, loans don't go to debt heaven. it doesn't mean at that they just disappear it means taxpayers are going to be on the hook for these things. if you paid off your debts you now get the privilege of paying off somebody else's debt too, and the idea that the president is doing this without going through congress is baffling too. congress is supposed to have the power of the purse >> i wouldn't call it baffling, i would call it flagrantly illegal. speaker pelosi said the same thing months ago congress, if they want to do this, congress is the place that

it should happen they do have the power of the purse strings, unquestionably, under the constitution we're talking about even in this latest case, between $200 billion and $300 billion on top of the national debt we've accumulated at the stroke of a presidential pen and please note the irony it's the same young people on whom we're already going to dump unimaginable amounts of debt in their older years who will now pick up the tab for what they were told was a gift to them now. >> mitch, brian sullivan, i went and dug into the stats can you find them online or a little bit muddled you open up an excel and go through it and it was shocking to me what i saw in many ways you hear politicians say the average is 37,000. that is accurate, but that is an average. and it's actually a terrible

measure of what's really going on, correct? because what i found shocked me. i found 6% to 7% of borrowers owed about half the money. many of them owed $300,000 and $400,000 each. the only way to get that -- which skews the average to $37,000 right? so you got somebody who owes 400, and eight people who owe 20 and your average is going to be about $50,000. the only way to get that kind of debt would to be go to med school, to law school. if we did this, i don't you don't want to, how do we filter out those people who have a lot of debt who make a lot of money because they're now the neurosurgeons that we need >> i don't think anybody should be filtered out. if they took the obligation on they shouldn't foist it on their fellow citizens. someone making up to 300,000

dollars this household could probably find a way to pay back 10 there are better ways to get at this one gincome-based repayment, there are other things on the books to do that they've stumbled all over themselves from an operational standpoint, but the mechanism is there to pay back a measurable percentage of what their income is not being let off scot-free. and then there's a favorite of mine, put universities like ours on the hook for some of this and if our graduates don't have either the income-producing capacity or the personal responsibility to pay back what they borrowed, then we should have to pay back some of it at least and protect the taxpayers in that way. >> it means your education and not you, mitch, but it means the education wasn't worth it. i mean, that's it. and 40% of this money is owed by for-profit college attendees,

and we don't have to go down that rabbit hole, but let's be clear. th that is an entire industry unto itself and let's just say that some of the claims made over the past few years are dubious at best. >> i'll give you a claim under question now my colleagues like to point out that a college degreesa is a ga asset. it will increase your income capacity by a million dollars over your lifetime you can't have it both ways. you can't say that those though acquired that are simply helpless to pay back what they borrowed >> it's got to be frustrating to you, because you've kept costs under control at purdue, tried to fight that, to see other schools not do that, and like you said, not be on the hook for

any of this stuff. having skin in the game matters, not just for people paying back their loans but for the colleges that are continuing to raise tuition prices >> it's been very clear for decades now that the ready availability of free or cheap dollars has pushed up the cost of higher education in a very causal and direct way. the more the consumer, in this case the student and the family, since lat si is insulated this proposal is only going to exacerbate that problem. people in the future will say maybe i will be able to get off the hook, too. i'll borrow more than i should have and i'll attend a college that cost more than it should have >> if this was a trial balloon, the administration trying to see what people thought of this, it doesn't seem to make too many

people happy at all. people on the right are unhappy about this people on the left who were advocating for some kind of relief are unhappy, too being saying it doesn't go far enough. the naacp is furious about it. alexandria ocasio-cortez has not been happy with it they don't think it does enough anyway what was their goal with this, if you're going to irritate everybody on all sides of this >> i'm reluctant to get into trying to read their political mind the reason this has taken such interminable time, it has these flaws. politics are not that clear for everybody who's about to be handed, you know, free money here in forgiveness. there are others who paid it all back and rightly feel that they had been wronged in the process. so i do think that, again, there are better ways to approach this i don't think they're ever going to conjure up redeeming qualities that will justify the

injustice, the unfairness of what's been suggested here >> you know, there's also a lot of people go to cheaper colleges because they can't, they don't want to borrow money so there's actually a lot of people losing a quote, better education by choosing something that their parents can afford. >> it throws things in turmoil, too. people who have these loans are wondering what's happening mitch, before you go, very quickly, what do you think ultimately happens do you think this $10,000 forgiveness goes through >> i suppose so. they seem quite committed to do it but i still hope their hesitation wins out and we look for an alternative way maybe along the lines that i suggested. >> mitch daniels, thank you, sir. the president of purdue university great to see you, sir. zfrgets all right, coming up, brian deese will join us after the

break. and as we head to break. let's get a quick check on the markets. this morning we are seeing dow futures down 206 nasdaq effectively nat we'll see you back on the other side at we'll see you back on the other side fat. we'll see you back on the other side lat. we'll see you back on the other side

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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 along with brian sullivan joe and andrew are off today it looks like things are still in the red dow futures down by almost 2 hundreds points. we've bounced around a lot today the. the s&p and nasdaq were up a bit. the nasdaq may be fightingity w its way back you have the san the s&p and dow

president biden will meet face-to-face with fed chairman jay powell today he pledges not to bully the fed. that is the first aspect of a three-part plan he lays out. it also calls for more clean energy tax credits, more affordable housing and giving had pedestrian care the power to negotiate. and makes the tax code fair are he joining us is national economic council director, brian deese. inflation is job one how do you plan to go about fighting this? what are the key steps that americans should know? >> well, absolutely. the economy we have right now is

in a transition from this period of historic economic growth to a period that can be more stable, resilient growth that requires focussing on inflation and doing so from a position of relativestrength the u.s. is in a better position than other countries to do so because of the strength of our labor market recovery, the strength of household balance sheets that goes to the three steps the president laid out the give the fed the independence and space it needs to operate. that is motte sonot something wn take advantage of the. the second is to lower costs, make things more affordable for families during theis transitio period are as you mentioned, building more housing supply, all those are steps we can take right now. and the third is about bringing down the federal deficit

we've made a lot of progress on that front deficit down $1.5 trillion this year we can do more we need congress's he help on t. >> none of those steps are going to impact the skyrocketing gas prices and at the sgroes store and rent prices. these are long-term issues that maybe had help doubt road. i think it's great to stay out of the fed's way, let them do their job, but none of these other things are going to have an immediate impact on inflationary prices. >> there's no single silver bullet but these are things that do matter the spr release, we have an

ongoing challenge with putin's war in ukraine but take something hike like hog you mentioned. the sooner we start that process the more we're going to start to relieve pressure on the market at the end of the day, for a decade or more in the united states, we have underinvested in building housing supply and hno having an all-out effort that's exactly what we need to do to make o schto make sure th year from now, two years from now, they are heading down ufrmgt thdown the president lowered internet

prices those are things withy need to need to do as a country. with. >> we haven't had a refinery built the. the deficit's coming down because tax receipts are soaring. >> the first is that we haved ended pandemic-era programs that were spending out. and again, that's not a foregone conclusion that is an effect of an effective covid response spending is coming down. booming tax receipts but the booming tax receipts are directly a function of the incredibly strong economic recovery that we have had. the upside surprise on tax receipts is a function of stronger than anticipated

economic growth generating more tax revenue. both of those are elements of the kind of recovery that this president's policies have driven yes, it's tax receipts and spending, connected to the type of recovery that we've had and now we need to build on that with tax reform. >> should the federal government then lower taxes if you guys are collecting so much money, brian, you don't want to be greedy, right don't be greedy. because we hear a lot about greedy companies so is the federal government being greedy by taking so much of our tax dollars? california could have a $100 billion surplus. >> the lesson here is when you drive a very strong economic recovery, which we have had in the united states, that's not only good for households and families, but it's also good for the federal bat shlance sheet as well because strong growth driven bay strong pandemic response

generates more revenue as well how do we reform our tax code in a way that sensible and address some of the dplaering problems in that companies an incentive to shift overseas. those are the types of things that we should solve as a country, would make our economy more efficient and generate more stable revenue over the lost term request. >> hey, brian, if how come this plan is being floated to get rid of $10,000 in student debt for people making $300,000 when they're filing jointly you're already dealing with people who've already gone to college. it's going to cost $321 billion

to do that that's a hlot of money not to help the people at the bottom >> president hasn't made any decisions on that. i won't comment on the specific proposal but if you look at what's happening in this recovery right now, the gains from increased wages and increased job opportunities are being felt most by those in the bottom half of the income distribution that's a positive thing, something we need to build on. when it comes to student debt, there are, there's a broad spectrum of americans who hold student debt, including people who make less than $100,000 a year thosing ph those folks are held back because they're holding exorbitant debt levels are there ways tie o address tht issue. in this current job market, there's more opportunity for workers across the income and

skill spectrum than there has been in a long time. >> it doesn't sound like that you think this plan that is being floated would be best suited at getting at the lowest income ranges and those people who haven't gone to college? >> again, i'm not going to comment on things that have gotten floated we've made clear that's not something the president has decided on doing most of the bulk of student debt is actually held by people who are not wealthy and who are struggling in day to day and paying significant bills on their student debt so that's what motivates the focus on trying to do something here, and i think that's what would animate anything the president decides to do in this space. >> yeah, i mean, 40% of the debt, brian, is held by those, like 6% of the borrowers you went to yale law i hope we don't have debt from that that would be about a billion

bucks with those two schools combined, brian. you he m i mean how do we filter out this debt from people who are doctors or lawyers, but they're doing doing okay in of life. they're very different scenarios. >> that's why there's a focus on cut-off and not for those who don't need it. but at the same time, there are tens of millions of people out there, a married couple, one's a teacher. almost every teacher in this countr country ends up getting some kind of advanced degree, a ba and sometimes beyond that. those are the types of people who as a family are making 90,

100, $120,000 a year but the burden of debt is real for them and so this is a real, this is a real issue this is a real issue for tens of millions of americans. it disproportionately impacts people of color. blacks and latinos this is an issue we're taking very seriously in terms of looking at options the president hasn't made any decision those reports were premature so i will wait out until the president has made a decision and has something to say about this >> brayian deese, thank you >> what about if you, we have a shortage are o shortage of teachers we need to pay our teachers more you get debt relief if you go into certain occupations

>> schure. you cut down the amount of their loan payment so it's something they can manage. tied to income levels. it should be tied tosome sort of way to ensure that you are helping people who, yeah >> a lawyer in houston making $250,000 that has $30,000 in student loan at the time, why shdebt, why should h get $10,000 wiped off? he will just take a vacation >> brian deese said this is just floated. >> i'm bitter. i paid off my law school loans 19 years later i got a little gift. >> yay >> thanks. for the gift all right, let's get to the markets on this final trading

day of may the major erages having snapped historic streaks michael santoli joining us. >> we broke it in a historic way. each day hunyou had 80%. we're going to get back a little bit, maybe half a percent. it had be awill be a little bit test 16 times earnings is where we have been to, a little bit of a difference from the prior

rallies. take a look at the equal-rated version. l most of the down-side momentum has been provide on a one-year bay circumstance th now this is showing you the high-yield debt price. so basically the bond prices versus the price of similar treasures. most of the last year have been about treasury yields going up in march, you had a hill bit of ahiccup. that rally late last week caught

right back up. at malleast it's a removal of o big potential. we know how it goes with these rallies. they've been relatively brief. sf >> and credit stig sll hoolooki okay >> keep it on the screen >> sounds like my flight, friday, shaky but okay turbulence, but we landed. your favorite flight a new segment. when we come back, we're going to speak with goldman sachs' jeff curry.

>> and we have the ceo of amc to talk about top gun last trade, $16.27 for amc entertainment. don't go anywhere, "squawk box" will be right back

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in all right, coming up here on "squawk box," the ceo of amc after a huge weekend for "top gun maverick." next, coming off an expensive memorial day weekend on the highways, is there any relief in sight for americans at the gas pump in the horizontal answer is no

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all right, welcome back. crude oil prices are higher at $167 barrel. are you chinas easing some covid restrictions ship borne, russian crude will be faphased out except for slovakia because they need the

p pipeline >> it's significant. it adds to an already extraordinarily tight market with low rents, no pspare capacity you know, the initial cut is 750,000 barrels per day. i also want to note that the concern is that you know, that pipe supply is coming in to central europe, hungary. they're re vulnerable and some of the noise coming out ukraine, i think the key message here is, you know, this market was already extraordinarily tight before therussian invasion of

ukr ukraine. >> with diesel fuel in europe and parts of the u.s., you could say it's a $300 a barrel oil >> diesel, all of that >> becky asked the right question earlier, which is europe's doing theis, which is great, to get rid of the oil where's the oil coming from in can we make up the gap in they're going to need petroleum products unless they have a massive demand slow down >> you're going to lose at the wellhead 2 million barrels of russian oil. we were healready in a market tt

didn't have the spare. the price at which you get that demand is going to be substantially. >> when i read the deal all the headlines are about oil. what's not talked about this morning, the natural gas side. they caved to putin on this. not only did they not do anything about natural gas, which they can't, but from what i understand, they actually had like ten more banks who agreed to tstart paying in rubles oil's one thing. you can drive less it gets cold in the winter

you can freeze europe didn't do anything on natural gas,where's that going in >> build the bmw on the gas field in the united states or qatar and hship the bmws. lng was created to deal with the not smog problems in the 1950s their ability to switch out is extremely limited. >> i've heard a lot of people

peck speculate that we've got tonight peak of inflation. do you believe that? >> our house view is that it does moderate. i want to emphasize the risk around that view is substantial. not only to we have, you know, call it an energy crisis with no spare capacity, extraordinarily low inventories and still very high demand needs, we also have a food crisis brewing in terms of what's going on with wheat, soybeans and the rest of the agriculture complex. and then we haven't even talked about metals let's remember that china created a commodity recession over the last two months oil demand contracted 2.5% you know, metals demand were down 10% and yet we look at prices, you're at $125 oil basically this morning, and you're at $9500 a ton copper

let me ask you what happen when is china starts to normalize later this year. the outside risk outside the commodity complex is significant. >> what happens with millions of americans working from home even part time start to go back to the office five days a week and hitting the new jersey turnpike? there's so many variables out there where i could make the case for $200 oil. mo not saying it will, but i could make the case and it wouldn't be outlandish from i like to summarize it as china's like a dragster with one foot on the brake and one on the accelerator and they're about to take their foot off the brake. then you combine that with a record travel season, and then an uptick of 3 million to 4 million barrels of oil this is all on top of an environment where hey, you are now losing more russian barrels. the net of this is a tight

market, extraordinarily tight now. >> jeff, pleasure. thank you very much. >> thanks for having me. >> you were probably on the garden state parkway this weekend. people are out even with gas prices, they're driving. in i can definitely attest to that spent a lot of hours >> they're not driving well. >> we made it. we made it >> that's all that matters up next, adam aron will join us live on "squawk box" on the new "top gun" film, the return of going ttho e movies, retail investors and much more. "squawk box" will be right back. you're a one-man stitchwork master. but your staffing plan needs to go up a size. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description.

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it was, in many ways, literally, a high-flying weekend at the box office with numbers that bode very well for the rest of the summer. julia boor stin joining us now how big was top gun maverick, and just how rich is tom cruise right now? >> tom cruise will profit nicely from the success of top gun maverick the film soared past all expectations this memorial day weekend. grossed $156 million through yesterday. it is a record for tom cruise, although an overall record for memorial day weekend the film grossed novanother $126

million internationally. the film's going to be a big financial win for paramount, tom cruise and david ellison and expect it to continue this strong run in coming weeks, bolstered by roughly 97% positive critics score and 99% ought audience rating. that's why it bodes so well. a really diverse range of audiences came out en masse to theaters about 55% of moviegoers were over 35. that's an audience that studios feared weren't going to come back to theaters in meaningful numbers. now the rest of the media giants are hopeful that getting audiences back into theaters and having them see trailers will help pack theaters for the

upcoming big budget films later this summer, including injurassc world and thunder. hopefully success begets success. >> i'm already thinking top gun maverick ii. tom cruise will be 80 years old did anybody anticipate it would be this big? >> i think this was in a lot of ways a perfect combination of factors, the nostalgia element, sow hav so you have the first group who saw it and the younger audiences as we well it really had the four

quadrants. people from all sorts of dem graphic. the audience was fairly balanced in terms of men and women who came out to see t once people get back in the theaters, if they like the movie, as they did for this movie, and if they like the experience they are oftentimes more likely to come back because they saw movie trailers for what else is coming up the question now is whether inflation, all those macro economic factors, including the high price of gas, keep people home if they say i saw my big movie or hey, this was such a great experience i'm going to keep going back every couple weekends >> the first time i went back to the movie, i took my son this is cool the chairs are comfy they reclined a little bit we had like seven tons of popcorn. you just forget it's a lot different at home.

julia boorstin, thank you. >> let's bring in adam aron. all of these different metrics that we just ran through, all these superlatives, which is the metric that is most important to you? >> well, good morning, becky i'm actually not going to give you an interview i'm going to say put julia back on and let her talk about what a historic weekend this was for the movie business the most important thing for us is how many people are coming to our theaters n and in our case at amc, we had 3.3 million people watch "top gun" over this memorial day weekend. it is the biggest memorial day weekend movie of all time. i actually think when paramount releases numbers today, they'll be higher than what you see in the press reports. this is two and a halftim timese

biggest tom cruise movie opening ever >> you said 2.3 million people is that an increase in terms of people if you're looking at just people coming through, where do we stand now versus pre-pandemic? >> it's a record for us for a singli single movie title in total, we had about 5 million niem people in our theaters, watching not only this movie but the other titles at amc. wait until you she wee what's coming "jurassic world," "lightyear",

"thor", "minions." it's going to be a big, big summer in our opinion. and then it just continues all the way to christmas "avatar 2" is coming in december "avatar" was the biggest movie of all time back when it was released ages ago. needless to say, thank you, tom cruise we're very excited >> i don't think you're the only one thinking that. i don't think that's because of top gun alone. i think people really think this is going to bring people back to the movie theaters does it change your strategy at all? are you going to be looking at this and say okay, we can really focus on our bread and butter or our buttered popcorn here and know this is a viable option maybe you don't need to branch out in some of the ways you've talked about branching out in. >> we're going to continue to branch out because we're good at

it but even though we were diversifying, we neff tver takig our eye off the ball i've been a big cheerleader for the return of the theater business i thought the conventional wisdom was wrong that we were an anachronism. people have enjoyed going to the theater for over a century just look at "spiderman no way home", back in december and the marvel, the dr. strange movie a few weeks ago. when hollywood makes movie and releases them in theaters that people want to see, they're coming out in huge numbers so we're excited we're confident. we know that we're on a path to recovery from 26 months of pandemic, but we're still going to diversify, too. there's more in us than just

movie theaters >> you've got to do us a favor, though, adam please, and congrats from >> more popcorn. >> no, hold on your stock is up maybe a word of encouragement. but more importantly, how many commercials are going to be at the beginning of the movies? is there going to be a limit to the number of commercials? because if your movie tastarts 2:00, i'm showing up at 2:15 >> the first of your questions, as you know, retail investors have descended on amc over the last year, year and a half we're very grateful to those people they own our company i work for them. but in addition to that, they've given us and entrusted us with a lot of money we ended the first quarter with $1.4 billion in cash and that makes us financially

strong to weather this crisis. as for trailers, we've actually, we do have a limit we do not show ads during trailers some other people we limit the number of trailers to six or seven. what we've seen from people is they like watching these trailers, seeing what's coming in the theaters over the next many months. having said that, we also have been very clear on our website that a movie actually starts 20 to 25 minutes after the public showtime, and we don't think that's a secret. we now have reserved seating at mose most of our theaters so people don't have to trrush to get to their chair. >> looking at the stock, up 282% since the pandemic began on march 11, 2020, up a little more

than 1% this morning but if were you in this for the one year, it's down 38%. all of that makes your stock sales at the end of last year look pretty well-timed i think $42 million you sold at the time you said you would not be selling anymore is that still the case >> yeah, i'm not selling stock i don't like to admit this on cnbc, but i turned 67 years of age in september in fact, last july, i said it was time for some estate planning and that i expected to sell some shares at the end of the year, which, i did i also said in mid january that i was done selling, and i own almost 800,000 amc shares. i was under 2.1 million amc shares over the next two and a half year. needless to say, very an enormous incentive to act like a

shareholder and think like a shareholder, because i am one of the largest amc shareholders >> you talked about shareholders have really invested into your stock. i think at least 80% were retail investors. is that still the case in how closely do you track it? >> we track it those are still the numbers, plus or minus a number or two. but the numbers we said were around 80%, as i said, plus or minus. you know, it changes every day, but around 80% but we also said you take out the index funds who are forced on our stock by definition then retail investors are in the neighborhood of 80% to 90% of our shareholders it's a lot of people out there

who b who believe in movie theaters and amc. >> you have worked like no other ceo. what's response you get from them these days. it was probably one thing when the stock was going up is it different in a down market >> are you right that we have done a lot to communicate with our shareholders i tweeted just this morning about top gun and our record performance this weekend you're also right that we do a lot to innocent advise we have over 665,000 of our shareholders who have join something called amc investo connect where we have early screenings as well are they happier when the share

price is going up than going down i think that's in the nature, yes. but i would still tell you that when i read my twitter feeds every day, and we get thousands of inbound messages every day, and, you know, again, if you take it all in total, this is a very enthusiastic, passionate, committed group of stockholders. we're honored that they're with us and i hope they stay with us for a long time to come. >> i know you thought this this was going to be a great showing for top gun maverick you tweeted what a great movie it was was there a point in the weekend k when you thought oh, my gosh, this is so much bet areter thani imagined in terms of the ticket sales coming in? >> i hate to tell tyou that we predicted this one early, i was on the phone with tom cruise >> as one does

>> no, not this weekend. over a year ago, talking about how when "top gun" released in theaters, actually, it was over a year ago that this was going to be the thing that started the cavill c cade of big movies coming into theaters, and fast forward to august of 2021 i saw the first 20 minutes of the movie, which is just stunning for those who've seen the movie, they know it >> and maybe more importantly, adam, we'll let you know, but hopefully the end of people saying we're never doing this again, we're never going to the movies adam, if you're out there by the way, we lost your feed hopefully you're all right >> you nailed it >> we're going to if bago back e

movies, back to the office, back on planes. >> a great weekend and a great kickoff to the summer movie season coming up, it is the return of jim cramer. the sequel he'll join us. you're watching "squawk box" on cnbc

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all right, let's get down to the new york stock exchange. jim cramer is back it is great to see you we have missed you welcome back tell us what you're thinking you had time to unwind a little, watch from a distance.

>> just delightful, no alarm interest rates are soaring here. bonds getting clubbed. oil going up a lot but there are a lot of people who i think are still trying to figure out whether last week was for real or whether it was a bull within a bear let it come in today, do some buying. >> what are the factors that you watch most closely is it treasury yields, oil prices is it just momentum with equities what are the things you would be watching saying okay this is -- >> well, i mean china opening up is a big deal. it's limited, but i got to tell you, chinese stocks are up so much you have to believe it's n more than one day. it's oil we're beginning to get a situation where a company will report, looks like a disappointment and the stock soars. that's because the street is getting used to the idea the price targets are wrong, companies are doing better than

expected and i think that's the case i know that the 20-year is just kind of wow, 3.268 after a point we get tired of looking at the bonds we look at earnings a little better the companies that had good earnings last week, really did great. >> maybe some of the bad news has gotten beaten in. >> that's it. >> we've taken such a beating and gotten more used to expecting it at this point too. >> look, the pump is bad we know that's going to cut some of the discretionary, but at the same time, like everybody says, everyone is on the road, everyone is traveling so it should have dented travel. it's not denting travel at all we have to like recognize that as much as the pump seems to be obviously bad, people are still going places look, i remain convinced that you buy them today and that we're not done with this rally >> jim, you know, you talk about this in your investing club, too, how key management is right

now, right because with the retailers, there's some companies that just screwed it up and did terribly some companies that appear to be doing it well. you can't just buy a group of stocks anymore because people like going to the movie, jim people suddenly matter again do they not? >> yeah. jeff at macy's, he did everything right he's got the right stuff too target and walmart didn't raise price and ate the cost their quarters were kind of miserable. and then i mean i got to tell you the dollar stores, wow they did much better than expected i'm not sure what to read on the fact that i think you're right, management got it right, some places had the right clothes, gap wrong clothes, too expensive. one by one i think that's a great call by you, brian. >> jim, we are so glad you're back i look forward to hearing more. >> glad to be back. >> coming up we've missed you. >> see you in a few minutes. "squawk box" will be right back.

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"squawk on we come into this week with the major averages snapped historic losing streaks. eight-week dow in the drop before last week was the longest

since warren g. harding was president, 1923. did you know that? >> i did not. >> joining us now -- >> i heard you say that. >> presidential trivia galore. joining us now for more, is jason, chairman and ceo of strategas research congrats in order on that. these markets, you heard jim jim didn't sound optimistic. sounds like more downside ahead. what do you think? >> i think so, brian i would use this opportunity, really, to get into more high-quality companies and i think -- and the way we're defining that are companies that generate free cash flow. i don't think any company that's any company dependent on the capital markets for growth in my opinion, is going to continue to have problems. one of the first things we learn in this business is don't fight the fed. the fed has only just begun,

only tightened twice, hasn't actually started balance sheet runoff that starts tomorrow my own opinion is that people are a little bit perhaps a little bit premature thinking the fed will raise the checkered flag by the fall i don't believe that i think we're in a period of tight forng a while. >> jason, the fed last night, waller in germany, speaking on a market closed day, he said in his view they're going to keep raising a half a percent at every meeting. the only question, you talk about the fed sort of waving the checkered flag do we know how much the markets, stock and bond markets, have already priced it's not like we don't know the fed is going to keep raising how much of that rate hike damage has been done i think that's the only question. >> yeah. i'm, again, somewhat skeptical that that much of it has been priced in. that's partly anecdotal.

i travel around the country, as my colleagues do, and we visit with institutional investors and people are addicted to growth stocks or deep growth stocks if you put it that way, that again have done so well, and i understand the impulse it's hard to give us those up, but i think the tide is going out now, and this is different there's a lot of uin the businessn in the business as i have, you've seen this for a long time and there's an awful lot of people in the business that are managing serious money that haven't seen it at all, right it's been 14 years since the fed started quantitative easing and so this is a very -- the transition from quantitative easing to quantitative tightening n my opinion, is one of the most significant changes in monetary policy that we've seen in probably 14 years. >> how do you change your playbook as a result >> you know, becky, i'm not sure

you change it that much. you probably hold a little bit more cash. you hold -- we've been very optimistic on energy, on basic steelers t -- materials. we're increasing our exposure to utilities. you want to be more defensive. i think the balance sheet and the company's ability to generate cash, maybe more than the sectors, is going to be much more important i also would say, in terms of bonds, again, i would be careful, i think there's a lot of people that think, you know, 3 to 3.5% may be the upper limit on bond yields it's possible, but i don't think you've had a free market in bonds for 14 years. >> that's it. >> we're going to find out what the real price is soon, it seems to me. >> yeah. more price discovery ahead as we say. jason, real pleasure to have you on thank you very much. i think what he said is important. if you're under the age of 45 running money, you've never

experienced an environment like this. >> right right. time for a new playbook. by the way, price discovery is also like fasten your seat belts, turbulent times. >> nice way to say it. time for some price discovery. >> very quickly, dow right now indicated down by 265 points brian, thank you for being here today. >> see you tomorrow. >> see you back tomorrow nasdaq off by 77 we will see you back here tomorrow right now time for "squawk on the street." good tuesday morning welcome to "squawk on the street." i'm carl can ta nia. jim cramer is back coming off the weight of the s&p. euro inflation hits another record high and the embargo of crude. powell meets with the president. case-shiller home prices up 26%. that is more than expected our road map begins with inflation watch. the president unveiling his plan to tackle some high prices as