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 he

prepares to huddle with fed chair powell. >> a shanghai shift. the city is set to lift the two-month covid lockdown and that is sending chinese technology stocks higher this morning. we have oil rallying the eu agrees to ban russian oil. moscow hitting back. we're going to start with the markets and inflation on this final trading day of may. might see some more positioning. jim, what have been your thoughts as we've put something together this last week. >> bull market within a bear market last week was extraordinary, 6%. there was so much that was good. we saw a lot of companies report people told us they were disappointing and then the stocks went up the people who said it was disappointing are missing the point, which is that some stocks have come down so much they actually are ready to be able to handle what people think are disappointment it's price target, price target. we're no longer there. if you have china or russia, people are asterisking it, don't worry about it when they see this morning that

there are some easying of lockdowns. >> yes not unimportant. we all talked about the impact that's had on the chinese economy, not to mention supply chain disruptions that have been worsened as a result the question will become how quickly can things really recover. and, you know, you have a population that's ready for the next potential lockdown as well. it may still be somewhat reluctant to fully participate and/or get right back out there when it comes to those lockdowns. >> i got some feedback this week from someone who was saying -- who's over there, an executive, jim, your whole wrap is that they could be using western medicine but how about if they stop covid? how about if covid is dead there? that's actually pretty amazing i came back and said, it's kind of like a whack-a-mole thing it keeps coming up i think that what i saw from eunice this morning, is not a

country that's open. it's a country that people are getting around i don't know it may be reports of opening are exaggerated. >> at least in shanghai where it's been the locus of the shutdowns, they're going to open schools starting on june 2nd, later this week. foxconn today, sees a more stable supply chain in the second half. so we're putting some pieces together >> that would be good. a lot of companies like -- you take nvidia last week, they make things there, sell things there, and nothing happened they sold no -- you're not selling any cars over there. but people can't stay away david, they can't stay away from these chinese stocks they say, you know what, i am committed to losing money because it doesn't matter. it's just all a big game i don't play that game. >> i know. if you trade them and you could trade them potentially quite well if you're ready to short and/or sell them and buy them back alibaba has had a huge move in the last week. had a positive response to its earnings, even though they were n terms of growth or lack

thereof, not good compared to the history of the company. >> right. >> compared to what had been the expectations, they were much better i mean that stock has moved a lot, jim. >> it has. >> but to your point, not that it's made up anywhere near -- if you go back any length of time that 17, almost 18% move is a significant one, but go back two years and take a look at what alibaba has done this had a 6, 7$700 billion market value, still half than that. >> our country during the shutdown, amazon delivered product endlessly. did they deliver product curing that time? >> it's hard >> yeah. >> hard rain. >> hard rain >> when eunice will do her live shots in beijing, you will see a bicycle guy behind her that's about it. you can actually judge to a certain extent where the lockdowns stand by watching eunice's live shot she does it in beijing on friday, there were a lot more

people around. >> yeah. >> i think that's -- you may want to trade eunice eunice's live shot. >> well, eunice, i think, wherever she is, seems to go out on the streets it seems it's a staged set central cast members walk by. >> they're doing a lot to try to stimulate the economy over there. first-time home buyers a host of different potential things that they're trying to do. >> how about in our country? we got a president out there, he's out there he's out there >> op-ed in the "journal" today, not going to mess with the fed >> he said -- >> the president -- >> yes >> brian deese on squawk the meeting this afternoon, what do you think this is about >> i think there's nothing he can do medicare negotiation, that's not going to happen. affordable housing, that's small. job creation, 500,000 to

150,000. i think that the -- what was business as usual, he's still attacking our oil companies. now, until he sits down with oil companies, there's really not a lot of hope. he hates them. i mean it's visceral he talked about oligarchs. is he thinking about the ceo of exxon? is that an oligarch? >> he's not. far from it. >> no. they're the enemy. no matter what they do look, they can't like become solar companies. some of them are trying. but, you know, if you're -- i don't know, let's call it apache apache is not going to be able to produce clean natural gas they're still going to be a natural gas producer the president seems committed to not like these guys. yet, they could be the only answer they could be the only answer. that's where everyone is getting hurt >> we do have barclay's raising targets on chevron and exxon, to 196, 111 respectively.

and refining capacity, jim, basically at a top so much capacity was taken out during covid >> those guys are running at 102% when you run a refinery at that level, bad things start happening. they have to cool it down. it's going to get worse. >> the question you raised, i have to say, one that we attacked head-on in the documentary we're going to air 24 days from today, june 23rd. >> thank you for doing that. >> i know there's so much more to come. it is the key question, which is, they're trying or saying they want to be helpful in reducing carbon. obviously it's not going to be through the purchase of wind farms and solar arrays not at least for exxon and not for chevron, our two largest companies. that's not what they're looking for. >> it doesn't matter what they do the president doesn't like them. the president keeps thinking we're going to be filling our tanks with solar no more green no he wants us all to be electric and there was a call this

weekend, battery prices peaking. >> it would be great if we were all electric. >> it would be great if we ran on water. >> it would. >> the key is where you're plugging in your electric vehicle az well. >> coal based. >> if you're plugging it in a state that derives a lot of electricity from coal you're not doing much -- >> coal is in short supply >> you agree that we should be cutting our carbon foot frints do you not. >> i'm in favor of a larger carbon footprint -- >> you're not a climate change denier >> i like larry fink 2030, you have to have your plan i'm not in favor of pollution. >> i didn't say you were >> i want to clarify >> if i were a size 10 footprint, i would want to be a size 8 >> okay. >> to your point, jim, over the weekend, goldman did cut their target on cobalt, lithium, nickel they're going to drop over the next two years. >> end of the super snooil jonas, morgan stanley,

suggesting chip shortage is ending and oems are going to get flooded with chips. >> i wish that would be the case some of the semis got more i know that taiwan semis got more david, there are some who like to write every day and like to be heard. >> as they should. >> adam jonas is like, mick jagger is back, starts -- >> the who has been around too. >> the who. >> madison square garden. >> the who. >> i saw them when i was 14. >> all back there. >> unbelievable. >> wind mills and everything. >> they still -- >> it's amazing. >> it is milan, they don't sing anymore that's what i hear. >> what are you talking about? >> i don't know. i saw them in nashville in october and looked league. >> you did where do you see them in nashville senior living. >> talking about jonas, writing as much as mick sings. okay >> but you said he doesn't sing now. >> that's right. >> i'm to the following.

>> is jonas writing a lot or not? >> i think jonas -- >> somebody else is doing the writing? >> i think jonas -- look he's one half of my favorite people >> he's lip singing. >> the brothers. a trio. >> don't even. >> back to our original point of inflation, settle some of this we've watched how it happened to housing the last few days. >> at the same time, we are recognizing that the metals, lumber, all coming down. >> retail inventories. >> retail inventories. there's a glut the glut, you could say that the fed created the glut you could say that the guys have the wrong stuff except for macy's i think that the 20% increase in housing is insane how that can stay i think that that is people who locked in low rates in april, 60 days, and that beginning in the middle of june, we all see housing prices peak. i have to tell you the toll brothers quarter was brilliant

and doug yearly is amazing and $900,000 homes, people love. $900,000 >> a lot of money. >> that's really profound. >> thank you >> that's june 23rd. >> insight that you come to rely on. >> when i'm away i always turn to david and david will say -- which is really -- i never knew until i talked to you. >> right >> right. >> until you talked to yourself and i didn't answer. >> i think june 23rd doc is going to blow the doors off of what's going on in energy. >> that's very nice of you i hope it adds to the conversation that's what i hope it does. >> look. they've got -- >> i know. >> wow >> yeah. >> it's 8:00 p.m come on. >> and then on youtube -- >> come on the show. >> youtube and peacock i will come on sheany show to promote it before we go -- since you've been gone -- >> it's a special full hour.

>> before we go to a commercial break, how about the broader market we had -- >> the sell-off. >> the significant rally last week. >> it's going to continue. you have to buy them today. >> you have to buy them today. >> this rally is not over. >> are we still in a bear market >> it's a bull within a bear. >> a bull within a bear. >> that's the topic of my thursday club call the bull within a bear but you can't rule out the power of the bull because last week we finally had companies disappointing and the stocks went higher. yes. yeah >> what are you thinking of when you say that any names? >> nvidia. >> there were a few examples. >> snowflake that's true, snowflake turned around that morning. >> incredible. >> best buy. >> best buy was extraordinary. dick's was down 17%. i'm like, going back and forth with the dick's people it's like our best quarter best buy, she did an amazing quarter and then the next day -- opens down big and then yielding 5 and the numbers turn out to be good it was crazy

people who move first are idiots there they are, idiots there's sound and fury. >> signifying nothing. >> signifying nothing. the people who trade before they listen to the conference call. they're just so -- they're the not getting graduation i went to graduation at georgetown. >> how was it? >> classes of 20, 21, and 22 it was a madhouse. >> it was great. no one was dancing at the washington hilton until i paid the deejay for timber and i got the whole thing going. >> you got us dancing. what a nice a-block. nelson, appointing to unilever's voice. investor activism in the spotlight. calls on estee lauder, american eagle, zoom and a bunch of names

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call today. unilever is up sharply in the premarket. naming nelson peltz to the board as a non-executive director. his fund management holds a 1.5% stake in unilever. we've mentioned nelson a few times these last few weeks. >> came from proctor, a club

name recommend talking about it at the thursday call. what i find amazing about this, when he came into proctor, they were, in many ways, under performing in emerging markets and nelson helped turn around emerging markets nelson has done a lot of great work there you know more than anyone, there was a level of discipline that nelson could bring he does a lot of homework. unilever needs the homework. they have fallen behind. >> that's the question, it's a different opportunity than p&g represented in terms of the issues in front of them. the brands may not be as strong, some would argue, as p&g's -- >> i think that's law. >> does it require a wholesale change in terms of the corporation even as much as bulking up and splitting >> they tried to buy consumer stuff. >> i know. >> that was very disappointing. >> it was poorly executed. >> fiasco. >> it was odd. >> we talked about it. neither side -- why glaxo said

no was kind of interesting. >> yes. >> public market route, which is still unclear that's going to create more value. >> another fiasco perhaps. one of the things that peltz did, was directly make it so that units were responsible for their own pnl. that mattered tremendously now carl, there was a really interesting piece about -- today, in the "wall street journal" should mayo be the subject of some sort of esg they meant that as a metaphor for all their products unilever since paul, unilever has been at the forefront, but does it really help or is it just good? i think one of the problems unilever has, i think it's great they're good, doing the right thing, but in the interim, proctor has come in and changed the way they do business overseas when you listen to what proctor has done overseas, it's crushed this company that owned overseas i think now it's funny

now peltz is -- he's not anti-proctor he likes proctor he's going up. people can say he's a turncoat. >> listen, proctor was a great investment for them. >> he won. >> they did well we know other names that have not gone as well fortriant ge is one that we talk about a lot. >> you have to be negative on -- on a day where -- >> i'm trying to be fair and point out that i don't really know triant's numbers the last five years. >> i got their numbers. >> what are they let me see them. >> i don't have them with me. >> i went through this thing where goldman gave me numbers that were wrong. >> you'll show them to me off camera. >> i will show you anything you want. >> i haven't seen them. >> we had the filing on wendy's last week. >> wendy's stopped tweeting. we switched to the chicken sandwich. >> i saw the picture of lisa with the baconator -- >> it was a chicken sandwich it's a new regime.

>> sorry. >> wendy's is getting crushed here. >> that was trian may do something with a company that involves control investor since 2005 in wendy's unilever is going to be interesting. >> he's going to -- >> one director can make a difference in the case of peltz and p&g. >> more homework -- >> some people thinking, what doshs don't they have age restrictions no age limits. >> age restrictions? >> for directors most companies have them in the states not over there. >> that's good you have a lot of talent -- >> a lot of wisdom. >> doing wise. >> nothing. >> crossword puzzles no, thank you. right? >> peltz is not a guy who can sit home he's go, go, go. >> he sure is. >> we'll get the opening bell in about nine minutes we'll count down to that coming off that up week, breaking that streak of seven weekly losses and the best week for the s&p since november 2020. don't go away.

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7 minutes before we get started with trading for the week, even, though, it is a tuesday. our mad dash crowd strike is a name you've talked about a lot. >> yes crowd strike, the report on thursday, the thing about this is this -- this is a company that's profitable. this has to turn around. this is last week's nvidia george kurtz, he will beat the numbers. it's profitable. >> when do they report earnings? >> thursday. >> what i like is that this could be the signal, the key to the market this week, so to speak, are we going to continue

to get tech companies where the estimate have come down, but not enough, the company does better than expected and people say all clear cloo >> aren't they in a unique and insulated area >> they are. they're unbelievable. >> palo alto is better -- that's unfair, they're different but both do very well. crowd strike is not -- is cloud native i will say this, david, this company is profitable, is doing everything right, and i want to see a company like this rally on news that is good but not great enough that's the signal, again, that tech is over done. a lot of people are talking about tech being over down on the downside. amazon, people are saying it's overdone on the downside meta had a huge week. >> is it time to buy them? >> yes >> really? >> alphabet, fantastic meta, terrific amazon, now going to deliver a terrific quarter, i think. apple, we have to find out because apple is locked down. >> we're going to talk more about those names, of course, as

we get you closer to an opening bell by the way, you can always catch us any time, anywhere, listen and follow the "squawk on the street" opening bell podcast we're back after this. self-driving cars. our power grid. water treatment plants. hospital systems. they're all connected to the internet... and vladimir putin or a terrorist could cause them all to self-destruct... a cyber 9-11 that would destroy our country. i'm dan o'dowd and i wrote the software that keeps our air defenses secure. i approved this message because i need your vote for u.s. senate to send a message... congress needs to fix this.

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the opening bell is brought to you by nuveen, leader in income, alternatives and responsible investing. i support tightening policy by another 50 basis points or several meetings in particular, i am not taking 50 basis point hikes off the table until i see inflation coming down closer to our 2% target by the end of this year i support having the policy rate at a level of above neutral so that it is reducing demand for products and labor, bringing those items more in line with supply and help reigning in inflation. >> we're going to get a lot of fed speak this week. that is waller kicking us off

over the weekend taking steam out of the hopes of a september pause. >> we can't. geez everything is up you need to have the discipline to make it so that the lumber and apparel moves over to some other things there are a lot of people who think in the stock market it's happening already. you have to. there's way too much inflation in the system. if it weren't for the numbers, which is 5% raise versus 9% inflation, then i would say fine they got to pass neutral, that's okay with me i favor 100 basis points which few people do. i want to shock it because we can't let everybody -- take a look, there's a note today ppg and sherwin williams and credit suisse, people are -- they're selling those stocks in part because people feel rising rates are going to cause things to slow. yes. we need rising rates to slow maybe that's how the autos get their semiconductors things have to slow and the guy in charge of slowing is jay

powell let's slow it and get it so -- we saw the president talking about a 00,000 job creation, down 150,000 a lot less wage inflation but maybe a lot less commodity. >> yes we're going to get a jobs number on friday. we'll see if the average hourlg earnings continue to soften a bit, which will be a piece of the puzzle. >> what we're going to see when things soft an bit, we're going to see people like dollar tree and dollar general the margins were great. >> i'm glad you mentioned them because we did not cover them very closely on friday >> margins were fabulous. >> as you point out they were strong adding to this mixed picture in retail that we've seen over the last few weeks, started off with a walmart target, not good concerns that is shared through the broader market about inflation narrowly impact and supply chain you had some retailers doing very well. you pointed out dick's which looked bad and then good. >> a number, i couldn't believe it >> williams-sonoma.

>> let's talk about that for a second. >> macy's. >> which one >> macy's, the right apparel williams-sonoma, the company supposed to be hurt the most by the build out, the build out of your work from home. we're just beginning to realize all of work has changed. when you get together with people -- we come in every day we are such an oddity. >> this is the seminole change we'll look back on the pandemic -- >> is that your next stock >> the way people work has changed forever. >> younger people are telling you what to do. >> i think people want to be in the office the middle age, where you've got kids who are younger, you have a commute, you're like forget it if i don't have to go in, i'm never going back. >> how -- >> younger people have to go in. that's the only way to get mentored only way they can really learn. >> not going in fridays. >> develop relationships that matter. >> a lot of people just simply do not work fridays in this country. >> it's true.

>> but until the labor cycle is repealed, at some point leverage will return to the employer. >> it's the opposite right now i was with some younger people when i was at georgetown graduation for 2021 and 2022, they were telling me, we tell our bosses, we don't work fridays. and they tell us, well -- >> it's true they've lost the battle. >> look, if there were more people they would tell them to take a hike. instead, they can't find more people >> many of those graduates and the businesses suffer if they do not go into the office regularly. part of the problem continues to be when they go in, there's nobody else there. you need to have the people there who are actually going to mentor you and/or just the things you pick up as a result of being around other people, otherwise what's the point >> i have no idea how the investment banks do it but here's what i keep hearing people are in tuesday, wednesday, thursday. they take long weekends and four-day weekends. everybody has -- i mean, even in

france they work four. we have three-day people >> it's not about covid necessarily anymore. >> i doubt it. >> not at all. >> seen some of these charts of infection fatality versus the flu. at or below seasonal flu even for older americans. >> i think that we -- >> thankfully. if you are fully vaccinated. >> what's happened is, i think it has much more to do with the fact that you -- we can't afford to fire you because we can't find someone else to hire. >> we've talked, jim, lately, about software engineers may not make as much in 2022 or even '23 as they did in '21. >> right >> we're seeing some layoffs we're seeing some layoffs. >> silicon valley where we're seeing more people who have to pivot and do other things. i think that there are too many engineers. mark zuckerberg has said look, why do i have to hire the young engineers and teach them when i can higher level 2 engineers and

they're ready. there are a lot of companies out there that over hire >> they did. >> including amazon overhired. i said amazon will have a better quarter. >> over built. >> over built. >> which brings us to jefferies today. they cut numbers on let's see e-commerce, ebay, etsy, yelp, carvana cut numbers, airbnb booking, expedia trip cut numbers on what they call the macro storm. >> i disagree with that. they're going to do more than a billion dollars cash flow. i'm not going against that i like some of the other calls >> you've seen the savings rates at 4.4. >> i know. >> uk credit card usage, soared this month since '05 we're going to start to see that here. >> we've got commercial -- we have mortgages that the default rate in some parts of the comm economy i feel things -- one of the reasons i'm bullish. the banks are under valued if you have a situation where you know rates are going to go up 50, 50, 50.

you have delinquencies that move from jpmorgan is going to be reflected in other stocks. that was good, jpmorgan was doing well after that talk by jamie dimon. >> after the analyst day. >> we still got a lot of people talking about recession. >> no, but i'm not -- i'm talking about if we have recession, gentle and mild. kind of like -- >> gentle and mild. >> like dove. >> dove, yes >> not a unilever product. >> like ivory. >> unilever, already promoting unilever you don't stop. >> i don't. >> you nef stop. >> never. >> jpmorgan, what the hell is that down? by the way pnc is down badly. >> maybe on these reports that credit suisse is looking to bolster some capital, maybe a billion francs, that made the wire. >> they are serial -- they have companies -- >> they can't stop getting in their own way. >> investment bank -- >> yeah. but cs -- >> monty --

>> nothing other than what you told me. >> that's what i want to know. >> the italian bank. >> the oldest bank in the world and you don't care. >> i don't. >> senator warren a plan to crack down on blank check deals. >> hello. >> a little late on that. >> a horse out of the barn >> i think so. >> some of these are too small -- >> there was one that was a 10 on thursday and 1 on friday -- >> she didn't get the memo she needs to look at the spac indexes we've created. it's simple. >> talks about proliferation. >> tells the story. >> better later than never she wants to the spac accountability act it's called the market. >> that's a good one you should say that next time she comes on. >> i'm happy i have one right now. >> looking good before you actually do anything then after that all downhill. >> we need - >> announce your deal or even two years after your deal is closes, you're horrible. >> there's a good one. right there. i don't think it matters because

i think the market said you know what, we're not going to take any more of these. i had a couple guys that had spacs over vacation. there were two people that had spacs. >> looking for a deal, still something i'm trying to remember the number we did last week. >> what are they buying? >> i don't know what -- what they're going to buy that's the question. many of them will probably fail to buy anything and then return the money. >> before i got my contract someone came up to me and said, jim, we would like to buy you. i said for what? for spac. 13th amendment you can't do that. buy me >> they can't discount your future cash flow and make -- >> crazy i mean -- >> you can go public for a spac. >> i work for cnbc >> you do. you are bought and paid for, owned forever by cnbc. every last bit of you. from your fingernails to your -- >> to your mad or jjc. one of the two, right? >> okay.

okay have a good -- >> i do want to get you on energy today because we do have this russian embargo in the eu taking shape we got to 119. last time above was march 9th. >> we -- the russians really have europe. they haven't started natural gas yet. that's why the market is down. other than the fact that the president wants to have medicare i can't believe they're still -- you're never going to get that through. what is the point of suggesting things that aren't going to get through. medicare he's not going to be able to negotiate because of the senate oil is in decline. in the end oil is unnaturally up at this point. they will figure it out. it's natural gas i'm worried about. that's when the rubber hits the road because natural gas is how you make -- that's how they make their chemicals. ruled by the chemical companies. that's heating oil this is where you want to buy. market is knocking down on oil

that's a mistake by the way, can i just tell you that snap, carl, is appro po of nothing. like snap. snap is not -- i mean tiktok beat snap, reals beating snap. snap is yesterday. >> it took the market a day to figure that out. they tried. >> or a few days >> yeah. >> evan spiegel. the stock down again >> i missed the old days. then became a statesman. >> yeah. >> it's still a very popular platform >> but not for advertisers >> speaking of media, we have not mentioned "top gun mav crick. good news for paramount, amc imax over half of the moviegoers were over 35. >> they remember the original which i like look, i think that people are doing things, going out, going out to dinner.

the market is reflecting one thing only, which is oil which is therefore driving interest rates up which i think is a mistake. i think that, again, i think that we are in position to buy drug stocks because the president is not going to be able to get them -- medicare negotiated every stock that's down should be bought today. buy them now. >> you took it from maverick to drug stocks in one sentence. it's amazing. >> i'm trying to cover a lot of things. >> you sure are. >> unilever up 3. >> you can see there, no reaction from paramount. the stock is an outlier -- >> amc. >> disney is down 30% still, fox down 5%. warner brothers discovery down 23%. >> disney was up 10 points last week my travel trust owns it. going to talk about it at the club disney is one upgrade away from 120. just one. >> really? even an analyst we've never heard of. >> in this market yeah. >> one upgrade. >> yeah. >> what would that upgrade say >> it would say theme parks are

doing great. you saw that people are going to the movies again >> light year, thor thunder. >> espn, pricing for adam schefter's tweets. surge pricing that sunday morning. i proposed that. >> surge pricing. >> during a game adam's tweets - >> surge pricing from 8 to 12 for adam schefter's tweet. going to his daughter's bar mitzvah on saturday, proposed that, little extra money he's been red hot. >> has he? >> he's not allowed to predict because he knows the answers. >> it's reporting. >> remember i said he was america's best reporter. you didn't agree with that >> i found that a little offensive. maybe sports. >> how about the private equity companies. >> how about them? >> how about, isn't that -- why didn't warren go after pete? she's going after blank check. >> why do you say that what triggered that thought in

your mind. >> those stocks are down the most other than drug stocks. i'm wondering if there's a thing the president is going talk about. >> i don't think so. i am looking up, they are all down. >> why is that >> i'm not sure. i've got an update from blackstone still killing it took in 2 million. >> blackrock killing it. >> black pebble probably killing it >> they're all down a bit. >> pretty lousy open dow down 439 chevron the only dow component in the green this morning. by the way, a quick reminder, you can always get in on the cnbc investing club with jim sign up and find out more at cnbc.com/join the club or the qr code on your screen. a lot of fed speak headed our way. we'll see what headlines are out of the powell and yellen meeting at the white house yields down on the 10-year u three weeks in a row today 2.84.

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welcome back to "squawk on the street." rick santelli live at cme hq with breaking news we have our may read on chicago pmi. expected to be in the mid-50s. better than expected 60.3 we leap back over 60 that means now that 3 out of 5 reads this year are over 60. this is the best read since march when we were at 62.9 sequentially following 56.4. it definitely underscores that we are starting to make progress in some of the information and news coming out of china it should help in this regard. we also have consumer confidence coming out at the top of the hour and s&p core logic housing prices year over year, another record "squawk on the street" will return after these. wealth plan a compree across your full financial picture. a plan with tax-smart investing strategies designed to help you keep more of what you earn. this is the planning effect.

here's the bottom line i know it's tough to believe anything positive at this moment i said the same thing in april of 2020 and that's when larry williams made one of the best bottom calls i have ever seen. once again when we look at people who are historians and know this, statisticians who are also engineers, and this guise the best, and he says, this is

it, you know what, i wouldn't bet against him. i trust his predictions more than i despise this market. >> seven straight weeks down and larry williams said it's going to be the biggest week that we've had. we had the biggest week since t tonight, but i've got to tell you, i should so, i do think i've got another opportunity look, we still -- look, mike has been right, but it's possible to have a bull market within a bear market the fire-and-ice coalition.

you know, nixon? >> yeah, he's been dead for some time. >> true, but -- it sounds like you've been talking to dr. frank frankenstein >> there's just too much evidence maybe he was not a great president, though foreign policy -- >> epa. >> wouldn't really fit in his party these days >> the clean water act >> also wanted to act on guns, even handguns. >> i'm going to go to the lab to try to bring nixon back. >> you're on your own with that one. i've got to tell you, i'm with

larry williams here. i think you're giving an opportunity here >> i saw with sara >> you are so much money let's get to bob pisani. >> it was a really poor open staples are down, microsoft was up earlier, most of the big

industrials are down, now, take a look at the biggest decliners. it doesn't look like they have the -- but these are all stocks with great moves last week the airlines had good moves up, the home builders had good moves up after a terrible month. it was a big outperformer last week so it's two steps photographs. i'm looking at the may 20th bottom there's a few notable winners here energy did, too. bank, remember the s&p was up about 6.5% healthcare or defensive sectors. underperform, in terms everywhere we are right now.

the china, the reopening china is taking steps to stimulate the economy. russia, ukraine, still -- and it's too soon to call people inflation. tenth we have a sense that make maybe it's stopped i've been they said the problem that thus far it's all sizzle, no stays. only stronger rebounds and the weight of evident does not yesterday support a -- so what should change it

we're going to get three big data points this wreak, the ism manufacturing number, then on friday ism services and may jobs reports. so it's good, we're looking for goldilocks here. if it's too week, then you get fears of a stagflation situation. so you have to threat the needle very care nfl. it's not slowing too much. that's what we'll be watching this week. >> biff, atlanta fed is still

looking for a positive quarter look, i still believe these are the beginning, that jay powell wins >> you see the mortgage race go in one last run ear going to find people saying, wait a second maybe i'll wait. >> a lot of other things >> well put. really well put. >> that's what you said. >> yeah. [ laughter ] >> i love being back dow is down 320 off the

initial lows of the session. 4121 for the s&p don't go anywhere.

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good tuesday morning, welcome to another hour of "squawk on the street. we're live at post 9 of the new york stock exchange. morgan brennan is on maternity leave. we wonder if the bounce is intact here. energy does spike. a lot of data today, as powell goes to the white house. hey, rick. >> we are expecting my -- around 103 1/2, 106.4, better than expe expected this is now the third read of 107 handle if we look at the present situation, 149.6, that's a bit of a miss versus 152.6 in the rear view mirror

finally if we look at expectations, what lies ahead, 77.5, that sequentially follows 77.2 so a bit light on the present situation, we seed interest rates have zoomed much higher with ten-year note yields back into the mid 80s >> now 285 rick, thanks we're about 30 minutes into the trading session. here are three big movers. unilever getting a boost, as pellets is named to the board. we'll have much more later this hour take a look at nio the stock is set to rise as covid restrictions ease in the shanghai region. another call from morgan stanley, downgrading american

eagle, saying reduced guidance from management may still be too optimistic the stock is down 10% after a big slide last week. hey, mike. >> this is actually the fifth rally this year, so clearly the prior four did not stick they did lead to lower lows. there are some reasons to think the urgency of the buying that maybe there was a little more to this one than before for example, 80% of all volume in the new york stock exchange for three days in a row was to the up side. that hasn't happened vicinity. typically the forward implications are positive, though there are exceptions. same thing with a 6% up week not very common. unitly if you look out several

months, those instances have led to further strength, unless this is 2000, or 2008, in other words, multiyear markets associated with recessions that's the lowest valuation we've started a rally at i would argue though gets you to neutral. when we had major market lows at that point the bears assignment pretty confidence they may very much be right, but maybe that proposition has to be tested a bit >> has the story change at all >> i don't think it's changed in the basic outlines i think there's been a sense we made our peace in terms of

likely path. maybe there's some daylight about what happens after the june and july meetings just some stabilization from the consumer, at least based on what the companies reported the top line spend was not the issue, and some -- beyond that, sara, no, i don't think it's changed. it's still recession is not quite here but we got oversold. >> i feel like also, might be. every time things get bad, the market -- and then we go ahead fed-speak saying, yeah, we're fully in hiking mode and 50 basis points under inflation comes down. >> i do agree with that. the market kind of talks itself into a hawkish stance, which happened earlier this year, but it is true we're not going to liberate ourselves that the fed

simply doesn't know so, yes, that's absolutely true by the way, the whole argument has to do with ultimately what the final term nat rate is, not really what happens in june and july that's where it leaves a lot of room for debate. >> our next guest says they see a window of opportunities for equity markets to rebound, as global growth remains resilient. big assumptions, especially today. bob dahl, what do you mean where are we in a bull and bear market as cramer called it this morning? recession is going to start tomorrow morning, at the fed will raise rates until they ring or necks the target walmart, it just golgts a little overdone, so we

have a nice bounce l.a. week i'm not convinced the balance is over we had a 10% -- and a 16% rally in nasdaq. it's easy to forget that i think we can get another sort of that thing from the bottom last friday. >> what should you be doing on thbounce how do you take advantage of those opportunities? what is the advice here? >> it's a matter of trading, so that is to say, when we get big bounces, with the fundamentals might be in question and you turns around abuy things that you think provide moss stability and resilience quality is key here.

and we're struggling with all the uncertainties out there, political uncertainty. monetary uncertainty those three things all at the same time, and that's creating a lot of volatility. >> it seems like in the value large-cap growth, that you still have a pretty big exposure to consumers -- both were maximum underw i'm not sure what you're looking at. we do own some consumer discretionary. tech, old tech, hmos, and financials especially. >> hey, bob, it's david.

does that have any impact on the broader market as well >> the answer is we don't know we haven't been here before. i think it creates an uncertainty. look if all that money the fed provided by buys that paper helped people at risk, you have to wonder if going the other direct will not cause derisk i think it's a lurking negative. why do you think at least the -- but we know at the savings read is back to 2008, we're going to watch to see if they start leaning on that and that is, the money they have saved, how can both things be true? >> agree question.

the consumer is actually key here you point out lots of conone drums. we now there's a lot of cash on the balance sheet. so they have this confident issue, i.e. consumer confidence falling. they have an appetite for more services, and they're pretty up to the gills in goods, and all those cross occurrence create uncertainty. i think the consumer is okay you see that in the gdp numbers. >> i think it's generally okay, yes, weakening, but not going to be the reason we head into a session if we do >> bob, we had the president today in a rare meeting with the federal reserve jay powell clearly inflation is everybody's -- he didn't put

removing tariffs from china on the table. i'm curious how you think this may affect the markets >> wouldn't you like to be a fly on the wall for in a meeting >> i would >> the president has to talk about inflation, has te the pro attempt to come up with things we can all debate how we got there. we all have our opinions, and we know unwinding inflation is not simple it will not happen overnight granted, the compares, i.e., the base effects, and some supply chain solve will bring the inflation rate down. that will cause a lot of people saying, i told you, don't worry about inflation. i think we're going to fall to still an unacceptable 4% to 5%

we're not going to get close to three in my judgment it's clearly an overhang for the elections and beyond >> bob dahl, thank you very much good to talk with you as always. >> thank you. as we head to a quick break. here's a look at our road map, including a closer look at u.n. y -- unilever >> shanghai begins to end the 65-day-long covid lockdown and ether is now on pace for the worst month since 2020, but bitcoin, although on pace, making its way close to 32k. a lot more "squawk on the street" continues in a moment. your shipping manager left to “find themself.” leaving you lost.

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a lot of people asking, will tech's slump continue? all three of those names are well off their 52-week highs joining us this morning yusuf squalli. it looks like you're trying to move through the moment until it becoming more efficient. >> yes the way we look at amazon even coming out of last holiday season, we were teakically

cautious am on amazon in particular, we thought q4 was the first period that's you willy what happened going forward, though, now everybody knows what ails amazon we think it's going to take them about, you know, 12 months or so to absorb that capacity, assuming they don't shut down some of it, they don't sublease some of it as you look through that, the story continues to look really attractive i would argue a lot of that is already baked -- a lot of concerns are already baked into the company's valuation. >> so if you believe that trajectory of capacity efficiency, when is it too early to start legging in? i >> it's impossible to call the

trough, as it is difficult to call the top we have basically adding into it as we speak. we may still see a bit of a leg down, depending on whether we hit a recession or not, the severity of the recession, but consumers confidence remains really strong. to the extent it sustains itself, we think it's a matter of time before that excess excise is absorbed and margins to start ticking up again. generally, we think the next quarter or two, you may continue to see margin contraction because of all the issues we discussed. >> some of these other stocks like microsoft, even salesforce, is where we are in the cycle, in the move to the cloud. dan ives of wedbush said we're only 40% there.

>> at a high level, we still think the cloud is one of the key growth drivers that said the cloud is not immunity, right and amazon being the largest so to the extent we see a slowdown, we saw it out of alibaba. we actually lowered our cloud estimates, that was somewhat of a surprise, and we think you're going to see probably the same thing coming out of aws we art -- art so far it's

temporary. >> the stock got a pop last week and up against, in the hopes it may truly be coming to an end, what are your thoughts >> i think what we saw last week was a relief rally the numb ers and if you go back most analysts, honestly lower expe expectationsll i did indications are things are starting to improve. beijing we're starting to see increased mobility

particularly the platform economy, and all the delist ing. >> we seem to be -- we're cautiously optimistic. we spent time last week with the

ongoing losses,. >> yeah, so on the first issue, we do believe we talked to a lot of industry players. it seems to me that what snap has seen is not 100% specific to snap, mostly specific within snap, right? that are generated from the display. what we said, while this is an incremental negative it's more telling than the industry at large. our view is for meta treatment expectations have been lowered to a point where the losses you

talked about we also think that management does a typically good job where they start you at a loss the day, you know, that they set we have already seen that a bit when they reported q4, at guidance for the year. but, you know, they have made their bet. i think expectations have been aligned to us remains pretty positive >> we'll talk soon. >> thank you this after credit squeaked

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time for our we're looking 59 ticker vcd. the latest round of earnings reports saw the name of the likes of target and walmart plummet, and the consumer was changing one space in the green, though is unilever, jumping as an active investor was named to the board of directors they currently hold a 1.5% stake in that company and there's a positive reception guys, my favorite chart is procter & gamble, which unless

-- nelson peltz was named to the board. unilever was down today even more, down about 13.5% clearly there's a thought he with come in and affect some necessary change. >> obviously early days here, and it's all speculation, so to speak. what is your sense of the top on the list of things to accomplish >> it depends whether he about do a p & g, and just feeding along a turnaround that was in place to shift away from the matrix structure of the organization to a more focused, more profitable -- >> unilever is a different set of issues, right >> some people are looking way back to cadbury remember he pushed the split of the beverages away from the candy, and then the takeover offer by

kraft. so that's an extreme, but this ceo is under particular pressure, because they had this failed -- with the consumer health business, so clearly there are options on the table unilever has hundreds of brands, about 400 brands to b ben & jerry's. there are ways they can make change the structure it has lagged. i thought it was interest that they both mentioned sustainability under the former ceo they had turned into a sustainable company. they get credit on the esg, but the problem is the growth and profitability have been been there. >> that's the kind of environment we're in after the break, we'll talk about the president's plan to combat inflation as grocery prices hit 42-year highs a check on the markets here.

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here's your cnbc news update at this hour hurricane agatha made landfall in mexico monday afternoon it had maximum sustained winds around 105 miles per hour, and brought torrential rain, which caused flooding. agatha is the first named storm of the year and strongest on record to make landfall on may in the east pacific ocean. canadian prime minister justin trudeau indicated he would have a national freeze on

handguns it would contain exceptions, canadians who already own handguns would be allowed to keep them. at least two people are still missing after a group of tubers went over a virginia dam. according to officials, the incident took place midafternoon on monday, they became stranded, and ten victims were rescued, crews were expected to resume search operations this morning back over to you, sara. >> leslie, thank you. this morning president biden is penning an op-head in "wall street journal" laying out a plan to fight inflation. he meetings with jerome powell later this afternoon as well we have the ceo of grocery

outlet with us eric, welcome. for people that aren't as familiar with your company, you say you offer extreme value in groceries. what is the model? how are you able to do that? can you do that in this environment? >> that's right, yeah. thanks, sara thanks for having us on. the model is pretty simple to describe a lot of people would say it's the tjmaxx of groceries. we work directly with manufacturers to sell it at a 40% to 60% savings, put it in front of the customers right now for people stretching their dollars is working really well so maybe stores are overbought or maybe near an expiration date, what is happening with pricing?

>> yeah, we are. what we do is price next to the nearest competitor, which in most case says a traditional grocer everyone is taking prices up unfortunately we have seen unprecedented increases from manufacturers, so we've had to take prices up fittingly to make sure we stay relevant and competitive at the time. we do a lot of price surveys, price checks to make sure we're always the cheapest guy in time, no matter who we are competing against. >> are consumer trading into private label? what impact do you think that might have been on certainly some of the companies we cover that have name brands at stake. >> yeah, i think there's a couple trends. a trade away from big brands, when you guys just mentioned, unilever about a 75% increase. that's naturally going to have

people trade into private label products i think there's a movement to smaller brands that maybe we haven't heard from you walk through whole foods on one of the competitors, you see brands that weren't necessarily number one, two or three brands. i think people are looking for value. certainly for us, people are just wandering in, because we're doing a lot of marketing around our markets around the value we present. >> eric, i'm just curious about the company. i had not really focused on it how are you securing your supplies going right to the producers or to the extend things are near their expiration, are you going to other retailers i'm curious how you get your supply. >> yeah. yeah, we have a really great buying department we're very

fortunate that a lot of what we buy is domestically sourced. and we really don't do a lot of sourcing from other retail respect. that's a well-worn path between manufacturers and grossly out outo -- grocery outlets. we have relationships that go back 40, 50 years. they trust us, because we represent their brands well, sell it quickly. they can rely on us as a trading partner time and time again. >> how does food inflation come down, eric, with some of the stresses out there with places like russia and ukraine? >> i'm not optimistic about it coming down. that's way above my pay grade how that does play out i'm worried about it i'm not sure how much more the

consumer can take with prices going up, with fuel and housing, particularly on the west coast, and now food that's everyone's discretionary budget if you're not making over $100,000 a year. naturally i think you'll see somedemand pull away that may be the trigger for people lowering prices, you know, to have to go out and try to stimulate additional sales. >> eric, thank you. >> you're very welcome still to come on the show, we will talk bit counsel trying to avoid its worst mount of the year later on "closing bell," don't miss the interview with terry duffy. he's got a front-row seat on everything from interest rates to oil to grains that's coming up at 3:00 p.m 'lbeack here on "squawk on the street." stay with us

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jumping nearly 10% over the last two days, following a record nine-week losing streak. investors are asking if it's a short-term bounce or perhaps a sign of the bottom joining us to discuss, ian melina just the price action the last 48 hours, are you getting the sense that for some reason bitcoin is pulling away from the pack >> yes currently people are taking out riskier coins where there's much more volatility. >> where does that leave names like ether >> right now the thing to watch is -- this is a fundamental

catalyst event that will make it through and potential deflationary this could -- the entire environment in crypto assets. >> in the business you started gives advice and insight to crypto investors on the topic. i'm curious what you have seen in terms of activity and interest >> yeah. we leverage a.i. to assets, and our model have been question equidistant since november, but right now there's still value opportunity, especially in cryptomarkets. they're finding better value opportunities in tokens as opposed to investing in private tokens, that have no communities. the climate when. >> translator: products already down almost 80%, with fundamentals

so liquid tokens and pbs market opportunities? are you talking about stocks like a coinbase? >> not stocks, so public tokens. projects that are basically getting pummelled but still have great value. >> what about the interest left in your own business we see transactions and interest fall when the price declines >> absolutely. so the entire space has been basically hit by retail investors and capital out of markets. in that sense, the market is still around, right? people are -- cryptoassets as a long-term investment, so crypto is a way of life, a way of cul culture. long term, very bullish on crypto

what do you make of terra, is there enough dry power to help truly decimated currencies come back or not? >> i think -- it's been called -- obviously -- not a -- you know -- but i don't think there's anything worth investing at the moment, especially in a risk-off climate. >> we're going to watch it obviously a ton of cross-currents, with potential use cases. ian, thank you ian balina joins us. we do have exciting news to share. we want to introduce the newest member morgan brennan gave birth on may 24th to baby max, 8 pounds, 12 ounce it is. everyone is healthy, happy and in matching pajamas. a huge congratulations to

everyone that's a shot. look at that congratulations. >> number three. very exciting. and in space. >> that's great. i love the pajamas first family in space, maybe >> i would not doubt it. she would bring them >> i'm sure. >> great mom, and really into space. >> mars for kids. >> congratulations, guys, and hurry back when we come back on "techcheck," jeffries bret thill says there could be further down side to come that's at the top of the hour. dow is down 200.

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check out the top gainers in the s&p 500 in today's trades, bucking the overall down trade a lot of energy names on the list there energy the only sector in the positive and now communication is in the green. fertilizer makers are up again the dow down less than 200 we've covered a bit. we'll be right back.

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beijing and shanghai taking steps to reopen, this as china starts to relax covid controls we're looking at the productivity costs of china's zero-covid policy. >> reporter: in zero-covid beijing, the morning community has looked like this with public transport restricted, he pedals as much as 12 miles round trip. wong's bike ride to work is ones of millions of disruptions taking place across the city and country that added all together is paralyzing business here. what took him 20 minutes on the subway, takes double the time. >> for nearly a month, there was no public transport or ride-hailing services in the area where i live in beijing, so if i had to go to the office, i

would walk 30 minutes. the office compound still restricts who could get in at any one time, so if there's an emergency and i have to go to the office, well, it just takes a while. the rules can seem random. on the right side of this 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 has had no choice but to take his morning bike ride. i have to give myself more time for unexpected situations, he says, like traffic i get up 20 minutes earlier now. wong is looking forward to getting back on the subway how is it? i'm kind of sweaty, he says. >> and covid testing sites were jam-packed today as people prepared to go to work and in shanghai, in about -- just about

an hour, that city is going to finally lift its lockdown after two months guys >> i can only imagine what that must be like for people who have literally been behind closed doors for 65 consecutive days. what are your expectations to the extent you have any and you've experienced this yourself firsthand, is everybody going to come back immediately? is it going to be a mad rush what can we expect >> reporter: well, we can expect that in shanghai, it's going to be a bit slow-going. obviously there are a lot of people who i've talked to personally and have expressed themselves online who are excited about the reopening, but we are seeing -- expecting things to go in a bit in stages. so, of course, there's going to be public transport is going to come back, residentsin certain low-risk areas will be able to go back to work, and then companies that have been on a white list, you don't necessarily need that white list anymore because more and more companies will be able to just

reopen their doors however, there are quite a few people who are anxious about what this could mean because while more people go out and get ready to be in the public, that could mean that there are going to be more and more cases and that's really the big question as to whether or not the government is going to be okay with the idea of potentially having more infections and whether or not that might mean that there could be a redefinition of what zero covid is or is the government just going to come in and reimpose lockdowns if it starts to see a surge of cases? >> yeah, i mean, as we've seen here in the west, really hard to contain it, even with shutdowns. what about the stimulus picture? they're recognizing how damaging this has been for the overall economy. what can we expect, fiscal, monetary, regulations, they got to be all in at this point

>> reporter: well, the government says they don't want to necessarily go all in and they're aware of the dangers of too much stimulus. but they've drawn up a lot of targeted measures that they open is going to stabilize the economy. they laid out a 33-point plan which was reiterated again today, where the leadership said that they want to be able to get people buying things, create more incentives, especially for cars, make it a little bit easier for people to get mortgages so they'll go back and try to buy more homes. but the one thing that wasn't on that 33-point list is the idea of lifting the lockdowns or moving away from zero covid altogether and that's something that a lot of analysts and economists weren't necessarily hoping to see, but were -- [ speaking foreign language >> reporter: sorry, guys obviously the security situation

around the covid testing sites is very, very tight, even when there aren't a whole lot of people here. that's something else that we have to deal with in china >> oh, man >> we talk about it all the time, she is amazing what she deals withdaily in the field that shot in beijing, a covid testing center behind -- >> it looked like she was getting kicked out >> but this is going to be very important to watch this re reopening and how it impacts so many different things. oil up again this is up, of course, because of the war in ukraine. the latest eu effort to basically impose an embargo on russian oil. if it's coming through a pipeline, they're still going to take it, but that is having an impact on both wti and brent as well

a significant one. exxon mobil, chevron, among the best performers today. exxon is approaching $100 a share. well above a $400 billion market value. by the way, we are going to -- 24 days from now -- have our look inside exxon mobil and this critical moment where the world wants more oil, wants the price to come down but at the same time, the question of, well, what do you do to try to reduce the carbon footprint overall. i had the opportunity to tour so many different parts of that operation with ceo darren woods. i went to the very top of that tower. >> you did >> yes and learned a great deal about how polyethylene, the products that go into plastics, are made. that was me. >> did you take a special safety

course >> that was for my helicopter trip we'll get into that. we've got so much time to promote. it's an important time right now in terms of how we deal with both of these things there's a look -- >> there you are >> yeah. that's the -- we saw a lot >> cool project. energy is the best-performing sector right now, but you have communications and consumer popping into the green after a week like last week, there's more room to run here, or is it back to sort of bear market selling and some of the most -- some of the strongest rallies can happen in a bear market has anything fundamentally changed that would give way to a better market. the treasury yields, if we continue to see stabilization, maybe that's breathing room. president biden is meeting with the fed chair jay powell to

discuss how to battle the rising prices here's more on what we can expect do we get any kind of readout on it >> well, it really depends on how the conversation goes, sara. the president and the fed chair have met a couple of times so far in president biden's term, but not since jay powell was nominated for a second term as chair. but, of course, the specter of inflation has only worsened in the months since then. a white house official tells me that the president wanted to have this meeting to touch base with chair powell after his confirmation and the confirmation of the other governors who will sit ton board -- on the board of fed. president biden has laid out his so-called plan saying the fed will be able to do its thing, that the white house is going to be pushing for tax credits on clean energy and will continue releasing oil from the strategic reserves but there's not much at the executive branch can do. there is one thing, they can

remove some of the tariffs on imports coming in from china we'll see what the two discuss a little bit later today we'll have more for you this afternoon. david? >> thank you important meeting there, of course, with jerome powell markets off the lows nasdaq down 4.5% that's going to do it for "squawk on the street. "techcheck" takes it away now. >> good morning, welcome to "techcheck." i'm carl quintanilla with jon fortt. a bull/bear debate ahead of salesforce tonight later on, bull calls on fintech, buy calls on zoom and dish and some of these chinese internet names getting a big boost today. we're going to start with falling valuations despite some strong fundamentals. maybe a few stocks to buy the dip on here's more on that. >> traders and investors are looking for that blend of a company th