it's really a big burden on american households. maintaining full employment while bringing inflation down, that's the president's priority. >> and the treasury secretary's interview with becky is straight ahead. and shares of salesforce are helping the dow up after big numbers. it is wednesday, june 1st. "squawk box" begins right now. good morning, everybody. welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm becky quick along with brian sullivan joe and andrew are out today we are watching what is happening with u.s. equity futures at this hour you'll see it's a mixed picture. up by 132 points s&p up by 5.

nasdaq down by about 10 points right now. yesterday closed out the month of may how things ended you would never guess all of the swings we saw through the wild course of the month. the dow was up but just barely it was up by, yeah, .04. the s&p was up even less it was up by 0.22 points you have to carry that out to the thousandths. the s&p at the worst levels was down by 7 3/4% there was a swing of 12% >> if you were on an island with a volleyball and you got this found and you come back, oh, the dow is only up 0.4, that does not tell the story

there have been 19 1% moves this quarter in the s&p 500 this is my rbi today. >> if you were doing -- >> they say you need 33 1% moves within a quarter historically to be at a washout. we had 32 in the first quarter we have 19 as of now so june, you have to have a lot of big moves. >> i wouldn't take anything off the table. >> especially with the fed, hawkish. >> see what happens with inflation. nick colas what is it, nicholas colas. >> pretty cool data trek. that is his data i'm tracking it now. 14 more. which is tough >> how many trading days >> 22, 21. i don't know

talking about six months in a row where wti has climbed. wti rose eight months in a row previously we're looking this morning up 1.8% today 116.75 we're going to talk a lot more about what's happening with opec, russia, nopec, whatever you want to call this. we'll dig deeper into this brian and i were going back and forth last night you have been working your sources figuring out more stuff. we'll talk more. >> i think the market misread "the wall street journal" story. it might happen but it won't make up the russian gap. it won't be net incremental add.

>> they'll have to give them it. a very cool scoop. it suggested there may be more ability to pump more oil from saudi and uae. i think people took that initially. oil fell $4 a barrel the minute the med line came out. >> the headline made it sound like it was breaking up. >> it's lasted longer. it may go that way if russia loses 2 billion barrels a day and saudi and uae pump 1 billion. >> breaking even basically. >> if that >> yeah. would the saudis be pumping more yes. but you're not making up the 2 million gap. if russia kind of does its own thing because it can't meet its obligations under the opec declaration of cooperation, it won't have the barrels

it can't sell them can't ensure a ship with russian oil. more than breaking up, opec's like you're noable to meet your obligations to us. >> we're recognizing that. >> up another 2 bucks today, $116.75. if you want to see what's happening in the treasury market treasury on the 10-year up 2.86%. rebounding from the lower levels where we were sitting at 2.7%. brian? atlanta fed president rafael bostic clarifying comments he made about a possible fed put and raising rates. comments to market watch bostic suggested the federal bank should take a pause should not be construed as a so-called fed put. it's sort of the basic idea that whatever happens, the central bank would come to the rescue of the markets, becky, the idea

being don't worry, if stocks go down, we've got a fed put, they're going to come in and maybe pause or accelerate quantitative easing, whatever it might be, and bostic made some comments that some people thought was sort of him almost acknowledging this mythic call thing that some people would like to talk about so we had to clarify those comments. >> look, i think it's just a recognition that when and if they do pause, it's going to be to looaround and check the signs in the economy, not the markets. it would be a serious strain in the economy or the idea that things are really cooling off rather rapidly that would cause them to hold off and maybe pause before they did additional hikes. it's not going to be the markets. >> yeah, waller monday in germany, we're going half a percentage point. >> every single time. >> unless it's powell -- i mean, the other ones you take with a little bit of a grain of fed salt. >> i don't even know if waller is a voting member. >> yeah, he's not. i don't think he -- i should

correct myself on that but the idea being if we're going to go half a percent, are you going to get back to the neutral rate right now we're at .2% we're talking another 2% if they do that, could you see 10-year bond levels at 2%, 4%? we can ask mohamed el erian that. the supreme court blocking a controversial texas social media law. that prohibits platforms from moderating it. tech industry groups have said the bill would compel platforms to disseminate viewpoints including russian propaganda justifying the invasion of

ukraine. propaganda from isis, neonats sigs, kkk or speech encouraging kids to engage in risky behavior this is something the court will be considering >> you wonder if congress is going to pick up on that there is bipartisan agreement. >> not when it comes to social media. >> section 230, whenever each side feels slighted with the six words of the internet, whenever either side feels sleighted, they go back that way. they both get jumpy about it listen, twitter, 14% of americans use twitter. not much twitter is a media thing it's an us thing most people, they don't use it

or they use it in a small way. >> right. >> but it has outside influence on the media. >> it does. >> 100%. all right. let's get back now to business maybe the stock of the day du jour, that's a joke, salesforce rose 24% year over year. net income fell 94% to 28 million. salesforce had earnings of 98 cents per share. beat estimates by 4 cents and it raised profrtd and expectations citing disciplined decision making across the organization salesforce almost went bye-bye in 2001. the only headwind, strong u.s. dollar particularly against the japanese yen marc benioff addressing the issue with jim last night on "mad money." >> u.s. dollar, they had a far better quarter than we did

i've never seen the strengthening of the dollar like this over the last 90 days it's been incredible and that's why we're, you know, having to make slight adjustments in what we're thinking we're going to do for the year >> it's a tale of two stocks they were salesforce.com they're changing their name to salesforce, inc. >> probably a wise move. the moves you're seeing this morning, even more aggressive than the earnings last night it was up by 5 3/4%. a lot of people taking away from this this is going to be incredibly good news for cloud companies in the aspect of that. maybe much better news than we've heard from the likes of the ciscos in the last weeks that were causing concerns about what was happening with demand we'll wait to see microsoft and others how this plays out.

on the call, benioff, almost a direct quote, i read the transcript, i didn't listen to the call, that would be boring, i'm not seeing the macro slowdown that the rest of the world is, or something to that effect >> right. >> sort of the bifurcation maybe it's at this point salesforce is its own thing. it's its own economy there's got to be hundreds of companies to resell or sell into the platform it's truly a remarkable universe. >> maybe we can move up hp we were going to talk about that in a moment. hp said some very interesting things about businesses continuing to spend. if you are looking at computers, businesses, hp said, were continuing to do that right through. i'm going to call it up and look >> there it is. >> you're watching shares of hp. relatively flat at the moment. earnings came in at $1.08 a share. that beat expectations by 3 cents. revenues came in at a beat

the guided higher. they talked about strong desktop pc sales the company cfo said the component shortages aren't as severe as a year ago what they said in the conference call just this idea of businesses still being willing to spend that's been a huge question. cap ex spending, will they freak out? hp not seeing it, at least not yet. >> this is the side of the business, too, hpq and hpe that has personal computing aspects to it. >> yes >> printers. if you have a work from home contingent as millions do now, i told you yesterday i went into cnbc's headquarters. only part of the reason was to steal printer paper, which i did. i have to admit. >> it's not stealing when you are using it for work. >> cnbc hq, little printser paper out of my arm. you have to have the working gear. >> they said it was companies that were paying for it.

it may be companies paying for it for peopleat home with some of these things. they've upgraded all of our computer systems here. it's a grab and go. >> i'm sorry, my computer is not working, call pc support my computer does need help, just putting that on the record on air. >> call in you have three hours >> there we go. when we come back, we will have more with our interview with treasury secretary janet yellen on inflation and the president's plan, that's next. a little later talking about the fed's tough road with former fed governor kevin warsch. you're watching "squawk box" and this is cnbc 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

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the president acting on his own and working with congress can make a difference and also his support for deficit reduction. >> i heard the president speaking not long after that and laying out that he is supporting the dual mandate for the fed he listed full unemployment and stable prices. alan greenspan used to talk about that first. >> listen, the fed has a dual mandate and it is maximum employment and price stability i think that's the way it's phrased in the law, but we have a very strong labor market that's been achieved inflation is way too high. it's really a big burden on american households and so

maintaining full employment while bringing inflation down, that's the president's priority. i believe that's consistent with how the fed sees its program >> looking around just in terms of deficit spending, trying to bring that down, there have been trial balloons floated about student debt forgiveness the things we've heard, the details we've heard on this plan suggest it would be $10,000 forgiven for anybody making up to $300,000 filing jointly it seems that's a pretty regressive situation a lot of money north of $312 billion that would cost to do this that would be for people who are not at the lowest end of the spectrum what are your thoughts about trying to direct funds at this point and trying to make sure we're being the smartest about people who need it the most? >> this is a matter that no decisions have been made on. there are discussions taking

place and the impact on the economy or equity are part of those discussions. >> in terms of what's been happening with the supply chain. a lot of these issues are out of our control and will take a very long time to fix there is the idea that the long shore men at the ports could go on strike at the end of the month. that would be a huge additional snarl to what we're seeing with the issues is the administration monitoring this and making sure that does not happen >> that's something that we're monitoring and recognize as critical and we certainly hope an agreement will be reached that will keep the ports open and operating. i agree that this is really critically important to making sure our supply chains don't become more problematic than they are just right now. >> brian, that part of the conversation coming from what we

were discussing yesterday morning, just if they go on strike there, what will that mean clearly the administration recognizes this, sees this maybe they're not involved at the moment but they will not let it get to that point i think is what they're saying. >> it is interesting to hear the treasury secretary and former head of the fed talk about things like supply chains, port strikes. later she talks about oil and oil leases i think it's a lot of messaging right now. the straight is nervous. they have to get out in front of it they have to say to the american people through cnbc and others, we acknowledge this. we're working on this. i don't believe and none of my sources believe there will be a port strike. if there is, it's 40% of u.s. imports. it's going to make parts of the supply chain shutdowns we've seen in the last two years look like a pimple. >> compared to what's coming look, the other idea, i don't

think there's a lot the administration can do. biden laid out a lot of ideas he has to fight inflation none of them are things that will work in the short term. i think they have to say they are focused on this. i think they realize a lot of this is outside of their control. when it comes to fixing supply chains, those are long-term problems they can leave it to the fed and hope to bring things down. any spending they come up with will be inflationary any spending packages or proposals that come through will add fuel to the fire. >> listen, new spending, if you read a lot of the research, it's doa. it may be chopped up and sold off in parts. >> they never mentioned that yesterday. probably a tacit admission they can't spin their way out of

this. >> the president's op end. it has exacerbated, that's his term, the inflation issue, versus them coming out saying it's putin inflation it's not accurate. if you are watching tv, you're going we had high pricesa year earlier. yeah, they went up from high but they were already high inflation, let's be fair, not a u.s. phenomenon. >> no. >> eurozone, 8.1%. out of control, they're high and going higher if you're an economy stimulated -- >> you're seeing the after effects. if you were in dc, you were like oh, everything is shut down. then you go to houston, three deep and watching basketball. >> and a lot of people's bank

accounts were flush. we will continue to talk about it and see what happens. the most important thing they said yesterday, the president said yesterday, he will allow the fed to do its job without getting involved >> well, the president yesterday, i think in the op ed, saying he supports the fed i support the fed. you're a baseball manager. your pitcher goes out and has a -- >> you yank them. >> they're yanked in the third inning well, do you support -- i support it why do you say you support the fed? are they at risk >> the point they made yesterday is other administration's have medaled with the fed president trump when he was unhappy was very up front about it talked it, tweeted out how he was unhappy with it. i think they're making the

distinction with that. let's see if they are saying this when the fed's actions ease into the economy >> again, with the sports analogy, you're a star batter. your team has rost 10 in a row and you're up there giving an interview to espn and nbc sports, i support our pitching staff, i thought when he was making the comments for the cameras, he pointed back to the fed's duel main date full employment and stable prices alan greenspan, he'll tell you the only thing that matters is stable prices. take care of stable prices and the rest will take care of itself. >> we have 1.59 million fewer workers than july. there's 11.6 million jobs.

the economy will not grow except through productivity gains. >> or if you change some of your immigration policies >> yes yeah that probably should be something on the table absolutely. >> anyway, we will bring you more of that interview with treasury secretary janet yellen in the next hour. up next, insider buying. company stock starting to tick up robert stock tracking some of these purchases. he'll join us with a special report coming up later on, mohamed el erian what to expect from the fed and whether the treasury secretary should be talking about oil leases back after thi massively complex supply chain 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

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. all right. welcome back after dumping stock at record levels, insiders starting to buy again. robert frank joining us with who's doing the buying and what they're doing. >> good morning, brian approaching a billion dollars for the month of may the strongest is the number of buyers 1300 buying stock in may that was the highest number since march of 2020. analysts looking at the ratio of sellers to buyers. normally 4 to 1. in may it was 1 to 1 that was the lowest ratio since march of 2020. all of this according to varity data corporate insiders are holding a nonconsensus view across all sectors and they are actively buying this dip.

the top buyers included dish network co-founder james defranco he bought $24 million worth of stock in may best buy chairman emeritus richard schultz buying up $20 million of bby tom frisk with $19 million in stock. tamara hughes with 18 million and howard's schultz very publicly buying $15 million of starbucks stock when he took back the reins of interim ceo. insiders tend to buy near the peaks and sell near the bottom they sold a record $170 billion of stock that is still a huge number next to the billion they bought in may but it is a big turn around. >> we do that on wex i'm shocked by the size of the

numbers. i've seen the numbers weekly get a little bit larger. usually 3 million is the biggest we see in the weeks. we've had weeks that are 20 million, 24 million. not always right do you find more comfort in the size of the transaction, the confidence level >> yeah, you're right. this data can be very noisy. very idiosyncratic but when you get a broad-based extreme change like this, whether it's last year's record selling or this broad based buyers where you get a wuone-to-one ratio we'll see if it continues for another month or another month after that for this month, it's significant. >> the dish network number

catching our eyes. wasn't charlie ergan it wasn't the founder. people get confused, robert. i want to make sure people know. this is not stock buy backs, this is people buying stock -- >> right. >> -- with their own money big difference. >> yeah. it's also a good point not options either these are people buying stock at the same price that retail investors are paying they're literally paying retail for this stock they're getting the same deal as everyone else. >> the same deal as everybody else maybe it's a good deal by the way, we'll have our weekly segment hopefully on "worldwide exchange" friday as well. >> thanks, brian. when we come back, elon musk sounds off on the work from home lifestyle. we will tell you what he says next. don't miss our interview with former fed governor kevin warsh. as we head to a break, let's take a look at yesterday's s&p 500 winners and losers

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by the way, bank of america securities top small and midcap chip pick is on semi ticker onnn. >> onn >> elon musk not mincing words when it comes to his view of the work from home he commented on an email regarding remote work. he asked them to comment to people when he says coming into work is an antiquated concept. musk said employees who are unwilling to comply with office work should, quote, pretend to work somewhere else. >> i'm sure that will get no attention anywhere. >> no, this is a point where employers for the most part have been reluctant to push their employees because they don't want to lose employees in such a tight job market

hard to find and get retention i've thought when the tide turns, when it's not such a strong jobs market -- >> it will turn. >> it will turn. i think employers are going to push back and push back pretty substantially. you will come in or we will not pay you. >> i sort of emceed a dinner last night for 50 to 75 retail ceos and executives and had this exact conversation with a ceo whose employees, they're based in san francisco, many of their employees moved to ohio, idaho he's like, that's fine we figured that out. he's got employees who have moved internationally, one to costa rica >> whoa. >> he's basically saying, here's the hard part. how far do we go we love the employee but that's a totally different health care system, totally different insurance regulations, legal district idaho, california, okay, we can manage, got the same health care thing, got everything. what do i do about somebody who

wants to live in costa rica because it suits their lifestyle? what am i going to do, hire one person to manage costa rican health care policy and labor laws >> the guy's already there >> yeah. >> hi, i live in coasta rica now which by the way sounds fant fantastic. >> it does it is going to come down to super stars maybe being able to get it there's going to be a big backlash when that market shifts. >> if you're attached to revenue, when things turn down. >> if you can show your performance. >> correct we have a lot more to do on "squawk box. good news from overseas, shanghai beginning to emerge from covid lockdown. some of the iron fisted policies with the communist party beginning to ease up a little bit. much to the relief, no doubt, of tens of millions we'll take you there live. we're going to speak with former fed governor kevin warsh with

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♪ ♪ do you know what the future holds? welcome back let's get down to china and some good news as residents of shanghai begin to emerge following two months of incredibly harsh covid lockdowns. the move was supposed to last over a week.

more than half a million residents remain in their homes. chinese officials are looking to jump start the economy eunice yoon joining us live from beijing. if you're in shanghai, eunice, what are you able to do today or tomorrow that you couldn't do a couple of days ago >> well, brian, in theory you could do a whole lot because the signal from the shanghai leadership is that all systems are go all companies now can operate normally, at least in theory all of thetransportation has resumed and the vast majority of people in shanghai can now leave their homes, but just because these restrictions are easing doesn't necessarily mean that business is just going to snap back to normal i was speaking with the american chamber of commerce here in china, it's likely going to be at least a month to get supply

chains up and running again. now managers are assessing the state of their operations. they're looking at their inventory, components, also the readiness of their equipment and on top of that businesses face a whole host of other challenges operating under the current covid restrictions so, for example, the eu chamber of commerce says that they've been very concerned about a worker shortage. migrant workers have left the city unclear as to whether or not they're going to want to come back after losing so much income truckers have also quit their jobs saying i don't really like having to deal with all these covid restrictions another big concern for both the eu chamber and amamcham, now th will have to get a 72-hour covid test and sometimes the wait in the morning to get that covid test has been one hours, two hours and that's seen as a

productivity killer. then there's also a whole host of kind of odd restrictions that conflict from the city level versus the district level. for example, just today i heard that some buildings are allowing offices to reopen but you can't use air con or some bars are being told they can open their bars with limited hours but they can't serve alcohol. those are the kinds of restrictions and regulations that make things very confusing. on top of that there's the overhang of an over arching concern that even though the officials insist they want to prioritize growth, that if there is an uptick of cases, that people can go back into lockdown. >> that's what i was going to ask you, eunice. you got it at the end. there are no guarantees from chinese authorities that these lockdowns which by the way, i want our people to understand this very, very clearly, these

are not people suggesting you do not go outside, wear a mask, this is your building may be locked from the outside, you cannot leave, with a fence around it regardless of how much food you may have in your cupboard or your fridge at the time there are no guarantees this won't happen again so i've got to imagine that people are going to -- they're not going to bust out and start going to bars and partying because there's no booze anyway it sounds like people are going to be nervous because if there's another outbreak, they're back locked in their apartment. >> reporter: yeah, absolutely. i mean, there have been celebrations since last night. so it's not as though people aren't excited about the fact that they're finally able to leave their homes, but there is a lot of caution as well and that's how people have been comparing this year's -- kind of like the situation in 2020 versus the situation in 2022,

because in 2020 after it looks as though the pandemic had eased, people went out, revenge spending, going crazy, super excited, but this year there's a lot of caution because no one really knows whether or not they're going to be locked out again. no one knows am i going to lose my job will i get more income should i be spending the money or saving the money? that's what's dragging on the economy. >> let's just hope everything is able to be opened up because i can't imagine the situation there. eunice yoon in beijing eunice, thank you very much. by the way, people watching, they say unit is outside, she's in a mask. we look over here over our shoulders. people will come around. like authorities >> crowds will come over too. >> crowds, semi intimidate you. play it safe. >> which i understand in a situation which if there's one case of covid, an entire

neighborhood will shut it down. >> if there's a pet that has covid they've locked down buildings. >> yeah. >> i would want people to wear a mask in that scenario, too. when we come back, we're going to take a closer look at the moving crude prices climbing once again this morning. wti at $116.15 a barrel. it fell below $116 a barrel yesterday but that was a very temporary reprieve we'll explain why, telyowh ppedl u at that story is next

welcome back, everybody. oil prices are creeping back up this morning they jumped of a european leaders agreed ban most of

russian crude oil imports. opec was thinking about suspending russia from an opec production deal. let's bring in the founder and director of research at energy aspects, and a lot of moving cross currents here, amerita >> there was never a talk of opec suspending russia the rumors were about exemption. i think they're very important words to distinguish just remember iran and russia are under sanctions. we are being told by our sources that that's not the case that's not something that's on the table for tomorrow the current deal is in place for another three months however, this could be an issue for september onwards, where the current deal, once it ends, perhaps that's when opec plus

will require to rethink how it continues its production policy. right now compliance is right under what it needs to be. we know the white house is putting a lot of pressure on saudi arabia and uae to raise production it's saying by the way, we've exempted russia and our overall compliance is better there are ways to address those concerns, but i do want to reiterate there is a very strong link between saudi arabia and the gcp countries right now. and i don't think, you know, you're just going to get them to break out thereof deal opec, particularly saudi arabia, remains very committed to the deal >> i thought when i read it that it meant there was going to be a split. that there was some disagreement

between let's say, saudi arabia and russia and this was going to be a situation where they didn't agree, because clearly russia has been on board and leading how much they've been allowed to pump to this point that's not the case. i mean, that throws a lot of cold water on everything we were thinking yesterday >> i would say look, i think this is what the u.s. administration would like. but that's very different from whether this is going to actually happen. and, again, like i said, i mean particularly prince abdulla azeez has been very committed to the deal the tightness has more to do with refined product and even adding more crude is not going to help what we are facing in terms of gasoline prices in particular with the relationship with russia you have seen over the last few

month, they simply are coming together as a unit and saying, no, we are going to continue to add within whatever they can, to the deal and they remain very, very committed, the group as a whole, to this deal >> so correct me if i'm wrong, amerita about the math, and again, we're kind of speculating based on this headline i didn't have anybody that i was texting or whatsapping or whatever last night that said yeah, i really think this is true if russia goes offline by a million and a half barrels a day, and the saudis and opec agree we're going to make up that gap and add another incremental million, we're still down 500 million globally. is that the kind of math you work out saithat the saudis anda are pumping more but the world may have less.

>> absolutely spot on, a couple thingsthe yoe

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what day is today wednesday? >> if it was tuesday, it would be brutal. good wednesday morning, june 1st by the way i'm brian sul adlivan with becky

quick. andrew and joe are off a little green start the trading day. nasdaq not that way. we are seeing nasdaq futures down .1 of 1%. don't read too much into that at all. we'll focus on the positive. it's summer, a beautiful day outside. more on the markets in a minute. but in the headlines, something we talked about minutes ago. some opec members are reportedly, a lot of questions here, considering suspending russia's participation in opec's oil production target, according to delegate ws who spoke with te wall street journal. russia had agreed last year with opec plans to increase production but its output is now falling in the face of sanctions. halima, if you're out there,

give me a call >> what we just talked about, what you have added to this is that, look, the market took too much from this at the beginning what they're talking about is an exemption. >> when the headline crossed, and by the way t , it could be fantastic scoop. oil fell by like $4 a barrel because the initial raead was perhaps opec is breaking up. everybody's pumping as much oil as possible. no this would be russia can't meet its obligations, so other members may try to pitch in to make up for that gap with opec saying we acknowledge that russia is not able to sell seas

much oil as it needs to meet its quota, but if you're hoping for net incremental barrels, what do they say what's that song from the '50s? keep waitin' and hopin' and prayin'. what is it, sandra dee lollipops and rainbows, my favorite thing >> you've gone a little farther back >> hold on, sister >> i know what you're going to say. continue reading moving on. >> i know what you're going say. >> the supreme court has blocked texas from enforce aing a new l aimed at social media companies. tech industry trade groups will say the law will unleash a plethora, that's a big word, of

hate speech and misinformation forbes is scrapping a deal to go forward with a spac deal initial value was 630 million, but they have reconsidered due to waning support. >> this is not going to do well. it's going to flop it's why there are no ipos right now >> what's moon, a waning gibbons? >> you're going back to the '50s again. >> no, it's a moon cycle >> jan eet yellen speaking about the inflation. >> inflation is really too high and a big burden on households so maintaining full employment

while bringing inflation down, that's the president's priority. >> we will have more of that interview with the treasury secretary in a few minutes in the meantime, let's get down to dom chu >> things are picking up in terms of trading volumes right now. but retail and the consumer still very much a big focus in the wake of all that inflation talk over the last several months and especially this earning season we'll start with fresh news out this morning and a very, at least, popular company that kind of signifies the high end of things is capri holdings, fo formerly known as michael kors wit within that group, all three did well and driven mainly by the biggest percentage gain in the versace side of things strong gains across the three

houses it's still down about 9% for th year last night we got victoria's secret they came out with earnings much better than expected, but the revenues were generally in line. and it fell below some forecast estimates. but you're seeing a near 7% gain in shares of victoria's secret another consumer name to watch and mega tech. i'll focus on the faang names. but meta platforms, facebook, apple, marginally moving amazon up 1% big components, big contributors

to the market's moves overall. meta platforms effective june 9th will take its ticker from facebook and go over to meta, m-e-t-a. something to keep an eye on as we watch the ticker and how they play out >> and yet i will still calling it facebook. >> me too. >> name changes, shares of salesforce, not salesforce.com they changed their name to salesforce inc reporting quarterly earnings that beat on the top and bottom line they gave a rather mixed outlook. let's look at salesforce inc. and bring in jared weissfeld at jeffrey's, and i believe, are you joining us from san francisco, jared >> i am. good morning >> the last time you were on with me on worldwide exchange, i got a note saying why are the

jeffrey's guys the only ones getting up early let's go into this salesforce, you know, earnings, revenue, one up, one not up as much what's your overall take away? >> overall, it was much better than expected, and i would focus on two items, crpo, that's really the best real time indicator for the health of the business we're about 24% organically in the current quarter. more importantly, they guided that to grow about 18% into the july quarter that was significantly better than feared. and adding onto that, a reason why the shares are so significant this morning, really attributable to the outlook. entirely attributable to foreign exchange moves that went against them they're raising guidance for the full year to about 24%

so you actually have margins up 170 basis points year on year. this is a different salesforce than years prior that's really committed to market expansion >> last night you had mark benioff on with jim cramer on m "mad money." basically, benioff was sort of smiling, kind of, and talking about the dollar's strength particularly against the yen i know currency movements can bbe esoteric and kind of weird we're going to play the sound bite and then i want to you respond. >> u.s. dollar, they had a far better quarter than we did it's incredible. and that's why we're having to make slight adjustments in what we're thinking we're going to do

for the year >> great job explain to our audience why if they own salesforce shares they suddenly need to become mini currency experts why does it matter soap much fo salesforce >> this is plaguing all of the large tech if you look at global ex exposures. salesforce took down their outlook, a $600 million head wind relative to the prior year. looking underneath the cover, trying to get a real sense of what the growth of this business is you've seen this in terms of other large gap tech companies trying to speak to the strength of this business it's a better look which is why benioff was saying despite the headwinds, the fact that

salesforce is able to go ahead and deliver 18% into july and expand margins, i think that's why he's focussed on that. it's a real impact $600 million, but despite that, on the conference call, we talk about a real discipline from the margin standpoint. >> bottom line, you're advising clients to do what with the stock? >> so our research analyst continues to remain overweight salesforce shares. and when you look at salesforce, think about this this is a business that's growing 18%, top line organic, and they're only trading at 20 times. and despite everything we talked about. >> we're all mini currency experts now. thank you, jared out in sforan francisco i don't know fu sif you stayed o

got up thank you. >> 2:30 you stay up. >> it worked well together when we come back, president biden -- >> versus what, coming in for the night? >> president biden meeting with treasury secretary janet yellen to talk about inflation. i got a chance to speak to the secretary after the meeting. we'll see what she said about the dual mandate and energy prices let's get a check on the markets. dow futures up by 142 points, the s&p up by 8 and the nasdaq up about 8 points now, too "squawk box" will be right back. o build it a solid foundation. wealth is shutting down the office for mike's retirement party. worth is giving the employee who spent half his life with you, the party of a lifetime. ♪ ♪

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with inflation a top priority at the white house u president biden meeting with jay powell and janet yellen at the white house yesterday. following that meeting, the president expressing his support for the dual mandate, listing first full employment and second stable price in an interview late yesterday i asked secretary yellin whether it was intentional to lay out those two items with full employment coming first. >> the white house has a

mandate. but we at full employment. we have a very strong labor market that's been achieved, but inflation is way too high, and it's really a big burden on american households. and so maintaining full employment while bringing inflation down, that's the president's priority, and i believe that's consistent with how the fed sees its program >> a lot of the other ideas that the president laid out today are things that won't take place in the near term or even the medium term you're talking about much longer investments, things that will take a long time to pay off. is that almost a tacit admission that this is not a problem that the administration can correct very quick when i spending

programs that would be more inflationary >> we're still considering a reconciliation package it could very well have reductions in the cost of prescription drug that would make a difference to every family that has drug costs as part of its household budget and that could make a difference very quickly the president is authorized historical leases from the strategic petroleum reserve to try to hold down prices and offset some of the upyard preupward pressure that we've seen from russia's war on ukraine. there are things that can be done, and the president is supportive of a deficit reduction. we're actually seeing a huge reduction in the deficit the deficit is assured

gdp is projected to fall below the level in 2019 before the pandemic and his budget proposes revenue raisers that i think would lead to a fairer tax system, not burden households, any household making under $400,000 and enable us to achieve deficit reduction that would also help to bring inflation down >> when it comes to energy prices, those are obviously a huge issue for americans right now. the price at this pump and the spr releases maybe do something temporarily, but the relief they've provided in oil prices seems to be pretty fleeting is there any consideration going on from trying to reverse things from keystone pipeline or promote more drilling in certain areas or even offer incentives to get companies to spend more capital expenditures or getting

more out of ground more quickly in >> the oil companies are sitting on lots of leases that they've not drilled. and the prices that prevail right now in the oil markets provide ample incentive for firms to boost production. the strategic petroleum releases are very substantial, and i see as filling in, in the market, while waiting for oil producers to ramp up production. the keystone pipeline would take years to come online and really is about moving oil rather than producing more oil, and remember, oil prices are set in global, in global markets, not based on domestic production >> so in other words, brian, i think the short answer to that is no. they're not go being to do anything with energy policy

anytime soon they're consider ing a reconciliation package to allow medicare to negotiate prices with the drug companies. i don't fknow that they have support for that i looked at most of those things they put in the op ed yesterday and thought this is just talk. nothing's going to change, at least in the short or middle term with any of this. but the reconciliation package would be something maybe the drug companies would have to watch closer right away. >> it was a great interview. and i am sort of shocked to be honest but how wide ranging, janet yellen as fed chair was extremely closed she's talking about this 9,000 oil lease thing again which we know is a sideshow medicare, to your point, she was talking about tax hikes on

higher income americans. >> would you expect that >> when you hear the term "fairer tax code", that's going to be code for raise taxes on higher income americans. whether you agree or disagree with that. i am going to go a little differently, and steve liesman may be out there i don't flowknow if he has a different view i think jay powell is under, could be in trouble. that's completely my opinion >> why >> because they're out there saying they support him too much who's saying they don't support him. when someone supports you when no one's asking. >> they were looking for someone to blame when inflation got out of control >> who are they going to blame they're not going to blame themselves >>'s a six-year term that he's just been granted. >> people can retire, becky. i want to be clear, this is my opinion, i'm not saying anything except that we have a crucial

election in november poll ratings are terrible. you need someone to blame. what are you going to do, blame yourself sorry, all the stimulus, congressional spending, didn't know it was going to do that, there has to be somebody else to blame at a high level. who else is there? they tried to blame putin, it didn't work. >> theystepped up and said thi inflation was here before, exacerbated by what happened with the ukrainian invasion by putin. >> but remember for two weeks there every leader would go up there and say putin's inflation and it was widely ridiculed. like 6% of people said that was the reason, so they've changed there has to be somebody to blame. >> i will give them a little more credit. i do think they'll point to the fed. but there's nothing the administration can do to spend their way out of it. they could change their policy >> they're still trying to convince somebody that more

spend something somehow going to reduce inflation how could you? >> more money is more fuel anyway, we'll have more of that interview with janet yellen in the next hour. plus we will have reaction from kevin warsh. when whe come back, though, stocks trading out the month of may with a choppy session. finance professor jeremy siegel will join us to talk about what investors can expect this month in june. let's take a look at the premarket winners and losers in the s&p 500. salesforce is leading the way today, now up more than 9% "squawk box" will be right back. time now for today's aflac trivia question. what was the median meriho pce

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in 2021? the answer $347,000 that was up 17% from 2020. l. all right, still to come "squawk box," kevin o'leary on the student loan debt story. president biden's forgiveness man of $10,000 per person. the right move too too much too hill ill? l? l? i? t? t? l? e?

all right, welcome back. rries over inflation has investors on edge. helping us navigate all of this is mohammad al erian you probably heard parts, becky did an awesome, three-part interview with treasury secretary yellin i was surprised how open yellin

was with everything. but becky's good at getting things out of people do you think there's a -- it sounded sounded like they're starting to throw powell under the bus what do you think? >> i don't think they're throwing powell under the bus, but one, acknowledge you made a mistake. that's what secretary yellin did, and we should welcome that. it's a really important ten forward. and two, try to regain control of the narrative to this day, brian, and this issen pois important. unlike the ecb, the fed hasn't come out with an analysis about why it got inflation forecast wrong for so long. and to this day, they haven't told us how they'll improve the

forecast and capabilities. and until they do that, they're going to remain under tremendous pressure >> mohammad, i think what the administration said yesterday, look, a lot of ideas saying fed independence, that could be an important step, if you really get out of the fed's way and let them deal with things. they can be different than what we've seen from some administrations in the past. but all these things they've ta talked about, all shthese solutions seem unlikely to help. is that an admission that the administration's not going to be able to do much >> they should and are looking at things to improve the supply side but it will take quite a while it is about the fed. they are now held hostage,

because the fed is very late the fed should have started moving a year ago, which we've discussed repeatedly the last nine months, and that has put the administration in a corner so they have to hope that the fed moves. and they have been respecting the independence of the fed. they haven't the goen in the way way. >> the idea of being, you're going in, the stakes of the election in november are massive. and you've got yellin saying to becky, well, they made a mistake. you've got comments like we support the fed when by the way, nobody was asking if you supported the fed because it's already assumed that you support the fed. but if you're basically saying, they made the mistake. they're the reason that your prices are so high, i don't see how, it just seems impossible,

mohammad, that there's not some kind of fallout from that. >> most economists agree that the fed was late try to convince the american public that is difficult it's hard to convey to the public what the fed does let alone how the fed has fallen behind on inflation, so the administration is in a very tough position, because they will get blamed for the high inflation. >> i don't think it's just our fed to be fair you look at what's happened in europe, where are you in the uk, mohammad inflation is global. and there are a lot of reasons for it it's not just the federal reserve or the ecb or bank of england. i think you would agree with that it's sort of overstimulating and underrealizing where the economy

would go by the way, it's been 100 year since we've had a pandemic of this severity. i guess the question is now, what's the right monetary policy going forward? like waller said, a half point each meeting a couple buckets of water going to put it out the house fire >> the initial fuel for inflation had nothing to do with the fed or the administration. it was truly, what went wrong, the fed didn't recognize that it was widening, didn't recognize that it wasn't transitory and therefore didn't move early enough brian, i'll give you one data point. in the weekend in march, that's

how late they have been. they weren't responsible for the initial calls, but they respo responsible for not containing i'm very puzzled by this notion that they should pause in september. because if they pause in september, it means that this economy is much more fragile than what we think it is and this economy is still pretty strong especially in the labor market so the fed should be giving a signal beyond the next two meetings that it intends to continue hiking until inflationary expectations are well contained otherwise we're going to be talking about this problem next year and the consequence is not just for the market but for the real economy and the most vulnerable segment of the society are going to be even more consequential >> mohammad, what's your best case scenario at this point? >> so my base case is that they will do two 50s. two 50-rate hikes.

and i really worry that they will show less conviction of following through on it. this notion of you go, you stop, you go, that will be really problematic. it won't solve the inflation problem. it won't reduce the risk of stagflation. so my hope is that they give clarity that after the two 50 basis point rate hikes they're going to continue hiking, but the only question is by how much >> what's the answer 50 and 50 and that's it? >> 25? >> i think you have to have a baseline of 50, 50 and i will perhaps go back to 25 if you're comfortable with what you're seeing, otherwise you're open to continuing with 50 we've got to get this under control quickly. otherwise it's going to undermine a lot of things next year economic, socially and institutional, let alone the political consequences that you talked about, brian.

>> and there are political consequences especially if things change in november those are going to be big ones mohammad, thank u. >> coming up, there's an of argument brewing over the college debt forgiveness program. jeremy siegel will tal because you've got the next generation in global secure networking from comcast business. with fully integrated security solutions all in one place. so you're covered. on-premise and in the cloud. you can run things the way you want —your team, ours or a mix of both. with the nation's largest ip network. from the most innovative company. bring on today with comcast business. powering possibilities.™ what do you think healthier looks like? cvs can help you support your nutrition, sleep, immune system, energy ...even skin.

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elon musk not mincing words when it comes on his views to the work from home lifestyle he tweeted on a leaked e-mail that said remote work was no longer acceptable. this twitter user asked the tesla ceo to comment on people who think coming in to swoworks antiquated prospect. he said they should pretend to work somewhere else. this is a moment where workers are flexing their flex it's a tight job market, and

they've been given a lot of freedom to stay home you and i talked about this earlier. i don't think it will last when the job market swings the other direction i think employers will have the upper hand again and they will force people back. >> i think right now with the oil costs, i don't see how you do >> that's excellent point. >> if you make someone, i don't know where you live, you watch "squawk box" and live in gurnee, illinois and drive to downtown chicago. here the turnpike is 50, 60 bucks. a lot of people have gotten a de facto raise by not commuting if you bring them back, you're reducing people's salaries in a way now at tesla they don't use gas, so that's a different issue. >> there are some jobs that

can't be done from home, and those are the people who have been working during this entire pandemic that ex-hacerbates this inequalt issue. who gets to stay home. >> we would go to victorville, there was this gas station that had big fiberglass dinosaurs and we would park there and race our dirt bikes up in the hill every day. victorville is now a suburb of los angeles. >> many are commuting 75 miles each way >> or where are until the pandemic >> some of them are the folks that can't work from home. you think about a lot of the people just trying to get a better deal on a house, essential workers, they're probably spending $100 a day in gas. >> although i tell you, the real estate prices in my town have boomed, because it's not easy to get in five days a week unless

you're driving, but now with people only having to come in about two days a week or something, people are willing to move out a little further. so the high-end market has jumped there >> i drove over the gw the other day. i don't look at my easy pass i need to look get ready. you know that's going up >> and it's already sky high >> coming up on "squawk box. janet yellen part three. and whether the president's loan forgiveness program is fair, too little, too much what do you think. and kevin warsh. "squawk box," never a told

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decisions have been made on. discussions taking place and the economy are part of the discussions. >> that's janet yellen on reports that the biden administration is leaning toward $10,000 on college debt forgiveness. let's bring in kecvin o'leary an

john bryant. kevin, what do you think about the plan >> i'm trying to find merit in this proposed policy and i can't. this is policy born in hell, and i tell you why nobody wins. what do you tell generations now that education is not a right. it's a privilege you make a decision as a young adult to pursue an education for a wide range of reasons, including advancingyourself an your career and salary, et cetera that's proven to work. but you take on responsibilities, including student debt so what do you tell people generations past that have actually paid back their debt? how about the people that are working so hard to get scholarships to excel. what do you tell them? don't bother, it's free? how about the people who never had the opportunity go to college, about 12% of the population has student debt.

the other 88% have to pay for them and then think about the politics of this this is what i find so extraordinary. average salary in america, $58,000 depending on regions you're telling these people, thissa bis a big problem meanwhile, you can't fill up your car, chicken costs 48% more, and this is at the top of the agenda for the president can you imagine? this is manna from heaven for the republicans. this is going to be the issue that they get to campaign on why, why would you do this this is a really, really bad idea brings into question, and i'll ask my good friend john, and maybe he can help us who is advising biden? who are his closest advisors what planet are they on? it's not the planet earth. >> john, you r take >> you need your coffee, i love

you, man you're saying why should i pay for this, i paid for this. you should tell them that their grandfather got it for free. it's called the gi bill. that the white middle class and 98% of the gi bills unfortunately went to caucasians, blacks were left out. that money, by the way, it adjusts for population sg >> i'd argue it wasn't for free if it was for service during the war. >> there you go. we've been zooming the last three year this is reinvesting this america. talk wasn't just about managing a balance sheet, about managing wall street's expectation that the bottom wasn't falling out u and this last recent bailout, i'm sorry, support middle class, who feel poor, and this actually cuts to the bottom

and says when prices are going up, here's one thing, $500 a month is what $10,000 worth of student loan does to your paycheck we're investing in you to boost your educational level, which will boost gdp i'm actually sounding like a capitalist, you and i are the same here kevin. the best you can do is invest in education and debt relief at the bottom of the payramid it should be done surgically >> meaning that much bigger numbers should go to people at the much lower income levels >> first thing, becky, a third of all student loan debt is $35,000 or less. if you do this at the bottom level, you're going to wipe out a third of all debt, and in some cases all the debt, including white rural communities and

brac black and brown urban. most of my clients don't finish college because of the debt and cost this is sending a message of relief actually to those who got too much month at the end of their money. i think it needs to be decompressed at the bottom of the pyramid. the majority of folks doing businesses, brlack folks they've left jobs that are dead ends and go start a business this allows people to say maybe i'll buy a home now for t that $100,000. what's the down payment? $10,000. >> i can't get there we just printed $4.5 trillion over the last two and a half years. we have helped everybody it has nothing to do with gender or race. it has to do with equity it's simply not fair it's un-american by any measure. everybody's uncomfortable with this i can't find anybody who likes

this idea. and i know, and i'm guessing right now within the white house as they discuss this going into the midterms, somebody's going to say, mr. president, let's punt this. let's deal with it on the other side imagine the membership of the democratic party fighting these races that are razor close and giving their competitor this manna from heaven? this is crazy. it's politically insane. it's a kamikaze idea now is the wrong time for this and by the way, there's never going to be a good time for this this is un-american. there's no free money. it doesn't work this way it's unfair to people that didn't go to college you're asking people that never went to college to pay for this. it comes off their income tax. it's just wrong. >> so kevin. now you're talking about help wall street. it's called an open fed window we had the conversation before it didn't help wall street most of that money you talked

about that kept america from basically cratering because there was a fire called a pandemic destroying the nation, and the nation poured money on the economy to keep us, hello, economically alive now we're saying what, how do we send a message to those who've got too much month at the end of their money of all races of people that we will reinvest in the most important thing that will lift you up. education. >> to kevin's point, though, asking people who haven't gone to college to pay for it that does seem like a stretch, and it doesn't seem like it's going to help the lowest-rung people who aren't in college, who haven't gone to college, and you're going to add $320 billion in deficit spending at a time when you're sticking that back into the economy that is really going to fuel inflation, too >> remember something, john, here, that $4 trillion that we debated in the past went to build and maintain the economy that hire millions of people this is taking one select 12% of

the population and saying, we going to gift you something that we've never done before. the other 80-plus percent, nothing for you. you don't get anything you're going to pay for it what kind of a message is that if you're the president, you're potus. you're telling 88% of the voting population forget about you, you're going to pay for this 12% i can't imagine that is a good idea that is an incredibly bad idea >> let's let john have "the last word." >> we're at war economically and unfortunately culturally if we don't make the decision, you have working people who don't feel that this country is batting for them we've had tarp for banks, airlines, bank, auto relief. you need something that stimulates

stimulates bottom of the pyramid. this will spur economic spending they will take that $10,000 and put it back in the economy i would hope around homes and businesses, but we disagree on what sustains the economy. this is by all of americans who save america >> we're out of time but thank you. this is a fiery topic. we'll have you both back >> coming up, speaking of higher education, the wharton school's jeremy siegelwill join us on inflation and market volatility. and as we head to break, we are seeing nasdaq up a tiny bit. delta raising their revenue forecast delta airlines that is the stk'upocs about 2%. airfare's going to be about $6,000 one way to chicago from

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good morning, everybody. welcome back to "squawk box" here on cnbc we're live from the nasdaq market site in times square. joe and andrew are both off today. u.s. equity future thes have ben the green for most of the morning. s&p up by about 13 and the nasdaq is now in positive territory up by about 36 points. treasury market has seen pressure on prices yields have risen a little bit the ten-year right now at 2.875% that's a big rise from last wheweek when it was about 2.75%. >> bostic clarifying comments about a possible fed put and a september pause when it comes to raising rating

the idea that the fed should take a pause is not a put. meantime, apple is moving ipad production from china to vietnam in response to covid lockdowns they also want suppliers for a full range of products to guard against future shortages in the future and mortgage demand falling to the lowest level since the pandemic it fell 1% last week from the previous week. volume was 14% lower than the same period a week ago lack of housing supply continue to push prices higher. hard to buy a home when there are still not many for sale. >> it is still just a little under 90 minutes before the opening bell on wall street. dom, all the bad news we heard last week in terms of earnings has turned into better new this is time around >> certainly

when it comes to technology maybe more so. a lot of the premarket action you're seeing, especially the positivity in the dow is being driven in salesforce when you look at salesforce results, they raised their annual profit forecast, although they trimmed a little bit of the revenue forecast on a full-year basis. what you have on balance is a 9% gain in salesforce, equating to about $14 per share in the fair market trade if you're looking in the bottom corner of your screen, that 170-point gain more than half of that is just salesforce alone that $14 gain in the premarket trade is translating into a lot of that positivity that's certainly something to watch. also watching what's happening with some other parts of the market key to this overall theme in this trade. if you take a look at the overall picture for nvidia, we do see those shares down just a little under pressure, this is all despite the fact that bank

of america analysts have now ca called b of a is naming nvidia their top semi-conductor pick out there. especially when this comes to autonomous driving and whatnot it has been up a modest 14%. we know how precipitously these semi-conductor stocks have fallen we'll end with a check on the energy market, conoco-phillips up 1.5%. about flat for hess right now. a apa corp when it comes to energy, oil and gas doing well in the premarket trade. maybe no surprise given the fact of the oil prices today.

>> 9.5% increase in wti. >> president biden meeting with jay powell and janet yellen yesterday. here's her take on it. h . >> the president emphasized his intention to do everything he can to lower the costs that americans face for important items in this budget for example for prescription drugs, for utility bills, things where the president acting on his own or working with congress can make a difference. >> we'll have more of that interview for you in just a few minutes. meantime, let's talk more about high prices, markets ready to kick off a new month on wall street, and a new month for you. not just on wall street, everything gets to enjoy june.

joining us from wharton school of business who recently said on "overtime" it was, professor, that we are 5% from the bottom that's oddly specific. are you standing by it >> oh, yeah. i am i mean, i think earnings are going to be extremely good their year, you know, despite a little bit of scares from walmart and target i think they're going to come in, and yeah, interest rates are going to go up, but they're still extremely low. valuations, 17, 17.5 times earnings is historically e extremely fair, in fact, cheap, once you take into account interest rates no one can predict the short run, but yeah, a week ago i said we're within 5%. we've rallied 5% off that. i'm not going to say for sure that we saw the low. but it's beginning to look more like that. i think, as time goes on

>> so i'm assuming then, and please correct me if i'm wrong my father told me what assume stands for, that you are're in e no-recession camp then >> definitely not for this year. i'm not going to say that next year we're not going to have a slow down. clearly if the fed panics at some point, slams on the brakes, we're going to go through the windshield, and that's not going to be good either. we're going to get two 50-point moves. i'm encouraged by what i see in terms of the money supply slowing down, which, by the way, had the fed been looking at this in 2020 and 2021, we wouldn't be in the problem we are today. so we are seeing that slow down. not quite as encouraged about commodity prices keep on going up that's why they have to keep on tightening as they will. don't forget, the inflation is

already in the pipeline. the mistakes were made it's going to come out over the next 12, 18 months we're just going to have to accept t ve accept it. very little can be done today except to make sure that it doesn't extend into 2023, 2024, 2025, and we have a situation like the 1970s where we had 8%, 9% inflation for over a decade and i don't think that's going to happen. but two 50-points, look around, see what's happening, commodity prices and the money supply. is it continuing to slow down and realize that a lot of that inflation has already been built in, and it's going to come out in the statistics. it's been felt by americans. >> and that alexanand it', that.

the market has one of its worst starts in its history this year. wean even with last week the only question that matters is if the fed continues to raise, which looks like they will, how much of that is already baked in to the bond and stock markets d does the market already react to a 2%,2.5% rate when we get that's correct the market's going to go oh, my god, we really didn't think they were going to do that >> as i'm looking here, i see december '22 futures at 264. you know, the fed says its neutral rate is 240. i believe it's lower i actually think it's between

1.5 and 2. so the fed is getting there and above that neutral rate. you know, i think the root neutral rate has been high for 20 years and keeps on coming down with 4.5% in the 1990s and 2000 i actually think it's 1.5 to 2 so once the fed gets there, and it's only a couple months, it's reducing its bounce. just as mohammad said, way too late, but better late than never. and i think that in 2023, not this year. i think it's still going to go down a lot this year we've got to accept what's happened, unfortunately because of those past mistakes, but it is getting there >> what's the biggest risk fed screwup? they kind of already did >> i don't want the fed to panic

and think, you know, because i think the official statistics are going to remain bad for many months, oh, my god, we're going to have to go to 5%, 6%, 7%, 8%, i think that's slamming on the brakes too hard, and i don't think that's necessary we have to accept what's in the pipeline we have to get to wages rising, inflation is a tax, a tax that we could have avoided, you know, year ago by better monetary policy accept what's coming and slow it down so we can get back to the 2% to 3% >> this is the stuff i worry, tell me i'm wrong.

comfort us i need emotional help here red fin reports that the mortgage price, average mortgage payment is going up 43% from a year ago, not 4.3%, 43% from 1750 a month, to 24, 25, whatever their number was per month. if you've got revolving debt on a credit card, i guarantee those rates are going up car loan costs are going to go up i know wages are up. but are wages up enough to cover all these costs? the costs of inflation. i got a text from sandy, you're low balling it i don't know where the excess money is coming from for the average american family to still get on that flight in a year when they're looking at $700, you know, round trip coach from newark to cleveland, you know i don't know how they do it?

it will cost us 3,000 dolin gas >> you know, go to the bond market for some of this fiscal stimulus, then we would have had those interest rates right then. the fed sort of handed the government whatever money they wanted that's why bank accounts exploded in 2020 >> pandemic, the entire nation was locked down like they were i trav i. traed all oifrt country. they would have realized half the country wasn't shut down for long if at all i know people making more money than they had been prior, getting checks they did not ask for. now we, a lot of people, needed help we know that but i guess they didn't have time to do that. and now they're wondering what

happened, and you're hearing janet yellen say that they made a mistake and the president says we support the fed chair that doesn't bode well when sk says they support you when nobody's asking. >> i am brlaming the fed listen, the fed was established in 1913 to stand up to the government's excess spending, and they totally folded. and did not do that. >> they got in the elevator with them >> that's right. listen, the first pandemic response was necessary, march and april 2020 the second one about half of it, and then the biden came on that is correct f, fuel on the fire and we'll finance every bit of it you don't have to do anything with taxes you don't have to go to the bond

market or anything like that we'll buy everything you need, and that's why we have the inflation that we have today >> jeremy siegel, probably my final appearance on cnbc, thank you very much. appreciate it. >> thank you, brian. >> sorry about that is correct becky. >> it's the coffee >> they told me it's decaf where's max? this is not decaf. anyway, when we come back, we will have more from our interview with janet yellen including her comments on u.s. oil prices and production. then an exclusive live interview with former fed governor kevin warsh. you are watching "squawk box," and this is cnbc and an espresso is for the afternoon. you know which pizza is eaten with a fork and a knife... and which one is definitely not. the delta skymiles® american express card. if you travel, you know.

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our way of saying thanks, with rewards for the whole family! from epic trips... to jurassic-themed at-home activities. join over 3 million members and start enjoying rewards like these, and so much more in the xfinity app! and don't miss jurassic world:dominion in theaters june 10th. as we've mentioned, we spoke with treasury secretary janet yellen yesterday after she met with president biden and jay powell at the white house. we talked about policies that are not going to be taking place in the near term in terms of relief the white house won't be able to correct surging prices very

quickly or easily. here's how she responded >> we're still considering a reconciliation package it could very well have reductions in the cost of prescription drugs that would make a difference to every family that has drug costs as part of its household budget, and that could make a difference very quickly the president is authorized historic releases from the tragic petroleum reserve to try to hold off prices and offset some of the upward pressure that we've seen from russia's war on ukraine. so there are things that can be done, and the president is supportive of deficit reduction. we're actually seeing a huge reduction in the deficit the deficit is a share of gdp, is projected to fall below the

level in 2019 before the pandemic, and his budget proposes revenue raisers that i think would lead to a fairer tax system, not burden households, any household making under $400,000 and enable us to achieve deficit reduction that would also help to bring inflation down >> when it comes to energy prices, those are obviously a huge issue for americans, the price at the pump. and the spr releases may do something temporarily, is there any consideration being done in terms of trying to reverse things from keystone pipeline or promote more drilling in certain areas, or even just trying to offer incentives to get companies to spend more money, more capital expenditure, more oil companies on trying to take more out of the ground quickly >> you know, the oil companies

are sitting on lots of leases that they've not drilled and the prices that prevail right now in oil markets provide ample incentive for firms to boost production the strategic petroleum releases are very substantial, and i see as filling in, in the market while waiting for oil producers to ramp up production. the keystone pipeline would take years to come online and really is about moving oil rather than producing more oil and remember, oil prices are set in global markets. not based on domestic production >> just in terms of what's been happening with the supply chain, a lot of these issues, again, are out of our control or things that will take a very long time to fix but there is an idea that the

long shore men in california could go on strike at the end of this month that's something that would be a huge additional snarl to what we've already seen with the supply chain issues. is the administration monitoring this have they been involved at all in any of the talks to ensure that doesn't happen? >> it's something that we're monitoring and recognize as critical and certainly hope an agreement will be reached that will keep the ports open and operating. i agree that this is really critically important to making sure our supply chains don't, don't become more problematic than they are just right now >> yeah, cross our fingers on that if the ports in california were to get snarled up at this point because of a shutdown or a strike, yeah, that is something nobody's been really bargaining on you, brian, have done some research on this and done some reporting on it. you don't think it's going to happen either. >> let's hope of hope is a

strategy >> that is a huge issue, continuing to of what. good to know the administration's watching it, but you know this is something going to be coming up at the end of the month >> june 30th, the contract expire coming up, we'll go deeper on what the u.s. can do to get a handle on inflation. up next, delta shares moving on guidance we'll give you the details, walk ret squawk returns right after alk squawk returns right after lk squawk returns right after k squawk returns right after squawk returns right after squawk returns right after

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welcome back to "squawk box" on a wednesday morning are you watching the futures continuing to rise dow futures up right now by 193 points when we started the show two and a half hours ago, nasdaq was in negative territory but clawed its way back largely due to salesforce >> phil lebeau joins us with more what did delta say >> they are getting much more optimistic about q2 in terms of revenue guidance, not a surprise given the demand out there in the market and the price of airline tickets that they've been able to raise and pass a

lot of the cost onto the consumers. restored to 2019 levels. the company was expecting it to be 93% to 97% restored clearly due to the strong demand and pricing. the guidance has areas of concern. at the beginning of april it was expected to be 17% fuel, this is the plain culprit, 360 to 370 a gallon is the guidance, they expected to pay 320 to 330 per gallon. and the company expects about 1.5 billion in q2 free cash flow lots to discuss with ed bastion. we will be tarkinlking with him the halftime report. they are opening up a terminal laguardia.

they didn't have the best weekend for memorial day traffic. lots to talk about with ed bastion on the halftime report >> we'll look forward to that, a big interview. thank you very much. when we come back, former fed chairman kevin warsh had join us. and we will talk about rising energy prices. this is cnbc in two seconds, eric will realize (laughs) they're gonna need more space... gotta sell the house. oh... open houses. or, skip the hassles and sell directly to opendoor.

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welcome back to "squawk box," everythbody we've been talking all morning about the fed and nainflation a what if anything they can do to get it under control joining us is kevin warsh. it is hfar too long since we hae seen you, especially in person what do you think when you see what's happening with the markets, what the fed is talking about doing, what the biden administration announced yesterday? >> when you run boom and bust

monetary policy, you have boom and bust economy there's been a lot of blame game whose fault is it? it's the fault of people in that room the real economy will be what it will be, but the fed isn't in the business of establishing prices they get to choose what's the inflation rate, and they chose wrong. that's why we're having this massive cost of living squeeze that's hurting the entire country. imagine if the fed had acted as leisurely in the 2008 crisis and the 2020 crisis as they're acting now where would the markets be then? where would the economy be then? i must say i'm a little bit puzzled to understand why they've been so slow to recognize this inflation crisis and so slow to do anything about it >> so 50 basis points, 50 basis

points, 50 basis points is not enough to get out of that. >> they should get out of that business in august 2020, they adopted a brand-new, pro-inflationary bias we'd already had inflation in asset prices they announced that new regime in jackson hole. we had an increase in goods and now services they need to renuounce that regime they should say we have a new regime we will achieve price stability come hell or high water. what are you going to do next? 25 of this, 50 of that we're not going to get into that we're going achieve our objectives, and i think that change in regime would be important to change the psychology >> yesterday president biden said he supports the fed he's not going to get in the way. he supports their dual mandate

he said first, full employment, second, price stability. even putting full employment ahead of price stability surprised me a little because allan greenspan said you have to focus on price stability if you do that right, everything follows. >> allan greenspan had that one right. they seem to have fallen from the north star which is price stabily. they need to achieve it again. to be honest, the president probably for six, nine, 12 months has understood as has the white house that inflation is their number one problem normally, the reason we talk about fed independence is you have a white house suggesting the fed don't pull the punch bowl away too soon but this time, inflation is everybody's be pro and it has been for six, nine or 12 months. i'm not worried about being candid about telling them to showdown, i think more than likely they're telling them to speed up and solve this problem. >> the consumer is strong. we keep hearing that

but i wonder is the consumer strong because it's kind of a frenzy of spending on revolving debt, that they're not spending the cash they're spending debt that's going to have to be repaid back. gallup came out with their economic confidence index, it was the lowest reading since 2009 so i'm confused. the consumer's strong. but consumer confidence, measured by gallup is the lowest since 2009 it doesn't square up u. >> so three quarters of our fellow americans believe the economy and the country are on the wrong track. anytime wea've had numbers approaching that you have a recession. and we've seen a policy errors for consumers, i think you're right, brian. >> i think the surge in services, getting out and living a little bit is making consumer spending seem better than the

underlying reality it takes the means to spend, the ways to spend and the will and we're seeing the means, because salaries are moving up, but they're still falling behind prices we're seeing the ways because people want to go in hotels and get on airplanes, but what about the will we should be very concerned that the will to spend isn't what the big cash balances would suggest. by the time we get to the fourth quarter this year and early next year, with wouldn't at all surprise me if consumer sentiment now isn't tells us a story of where the economy is now. >> meaning it's a self-fulfilling prophecy, that once they think a recession is coming it brings it on even faster >> i think inflation is eating the real economy inflation is eating up the excess savings it's caution the excess savings to be precautionary. people are smart, not stupid about their own well-being they're falling behind, wages

aren't moving up fast enough what we have is a new period of price instability. and that period of price instability makes households pull back, businesses pull back, and we're asking for trouble by running this sort of policy. >> this is a bit uncomfortable but last night at this sort of dinner with a lot of retail executives and ceos, we talking about default rates and buy now/pay later is a big deal in retail where you -- >> after pay >> whatever it is. and default rates are starting to soar. they want a $500 bose headset, and they can do it in $10, $50 increments default rates are starting to spike up in that and somebody at the take said what if people don't pay back their debts and keep spending because they don't think they

have to bpay them back, like student looans. so come after me so consumer spending may stay stronger longer, buy now pay never. >> most of those products are effectively no recourse. you stop paying, you stop paying that's quote innovation in that cycle. i'll say a couple things about it all of these problems, principally around this inflation squeeze, they were fixable at considerably less cost, six, nine and 12 months ago. old rule of thumb. to get the inflation rate to fall you have to bring the policy rate to the inflation rate inflation 12 months ago was 3.5% we could conceive of raising rates to 3.5%. inflation's at 8%, probably going higher can you imagine what markets would react if the funds rate had to get even to half that level. that shows we have a problem

what we know is monetary policy is going to have an effect six months from now >> first of all, yes, all the money that was nuin by the fed, all the easing money that came from congress and policymakers that they dumped into this the administration pushing for more funding, but this is also a supply chain issue that is out of our control in a lot of ways. shutdowns in china because of their zero covid policy. problems with shipping and everything along the way how do we fix the supply chains, and how do you take out the supply chain part of this versus the partque control. is . >> at this late point, after this policy error, there's some

pain that will be necessary. the suffering, however, is optional and if we continue to sort of try to fine tune a monetary problem, this has certain reminiscence of the 1970s, where you end up with a stagflationry economy. the fed is chiefly responsible for bringing inflation down. they're the ones who need to do it, and rather than having debates about 25 this time or 50 next, they need a new resolve to say, whatever it takes, just like we said in prior crises, to ensure price stability you need to change expectations of households and businesses and the fight about what they're going to do in september is not going to change expectations >> we've been tough on the fed

today they deserve some criticism. let's move away. becky has said supply chains fed can't do anything about that energy is not are pat of the economy. in my view, energy is the economy. the energy is making stuff that we might sell. whether it's a tee shirt or a jet trip we could be facing a worse energy crisis than the 1970s assuming they're wrong, hopefully, what does that look like this is bad. energy is everything >> it's really bad for those who say inflation's coming down from these elf willsw levels, look at the skmodity charts. we need a change in price level for oil, wfor a ship to cross th

shores they happen all the time through dictators and wars and all the rest but inflation affects everything a change in psychology and a change in how people act it's what freezes them from making decisions as households and businesses, because they don't know what the generalized level of prices will be. but where we are now because inflation has been allowed to find its way into the mind-set of households and businesses, then the supply chain, the oil shocks ex-as are bait it so inflation is now much broader than that. and generally what central bankers are supposed to do, at core they're risk managers these jobs are not prizes for the perfect in forecasting but the risk management decision are the ones we should be most crit critical about in 2020, the big bet is we need to get inflation .3 of 1% higher, and the broad market

community said that's a great idea, and inflation's now 8% that's bad risk management bad risk management, six and nine and 12 months ago, this first deny inflation and try to rationalize it, explain it away, risk management is their job, and the risk management failure means right now they better change the regime ts. because as we've seen in ukraine, the price of stopping a dictator goes up over time the same is true with inflation. >> jay powell has said we're going to fight this and fight it no matter what it takes. you say he needs to say that and back it up with real action and switching of the entire regime to send a signal right away. >> a remnant of the 2008 crisis, why don't they put out a statement on sunday night, with the willing central bank and

finance ministers from around the world. ecb has inflation above 8% we, the world's central bankers will do whatever it takes to solve the clear and present danger posed by inflation. and we'll use even of our individual authorities to make that true. boom, two sentences that say this time is different you keep putting out dots, giving guidance as if this is normal stuff that's a way that expectations never get reanchored that's a way in which we find ourselves in a new era of price instability. i think they need to surprise rather than going to the old playbook the old playbook's not working >> to this point, it's been orderly, that might make it not orderly. but they say they don't care about the markets anyway >> so they care about markets. what they should care about is the real economy to brian's other point, this economy, everybody's talking

about inflation. when they are, that's a sense that it's a bit too late i think trying a new regime is the best they can do >> kevin, thanks for coming in coverag coming up, jim cramd mary daley, a little bit later on tech check. this is "squawk box. we're back right after this.

let's get down to the new york stock exchange. jim cramer joins us. i think we have to talk first salesforce great interview last night >> thank you >> everything we were hoping to hear, and i think that set the tone for this morning, that maybe things aren't as bad as we thought they were. >> we've been, everybody's doing their idea that the forecast wasn't that strong that's completely wrong. the forecast was actually a raise. you have to deal with the fact that everything's falling apart versus the dollar. i could not believe how strong their quarter was around the globe. by the way, slack is starting to really do a lot for them they've been winning some very big business the idea that the cloud is over,

di digitization is over, look out, i think there's much more to go. they have 14 billion in cash they hinted they might do a buyback. wow, this company's just crushing it. maybe people understand it's not over for these guys. >> salesforce alone is worth about 90 points. so almost half of the gains we're seeing this morning on the open is this a salesforce story or can youesqu extrapolate more? >> i think it's a great question vmware, that's very bullish. a cloud king but we had work day was a genuine miss in pushout. so it is, i'd say it's spotty, but there's no doubt about it, when it's in the dow, it's on fire mark, you remember, you also had brett taylor, he spent so much time with twitter, he was the

chairman of twitter. what would happen if he was doing a lot more money mark coming from cabrpri, a yact >> he was looking pretty relaxed versus the analysts who were all doing these channel checks that were completely worthless. what we have to do is go over the analysts who did the channel checks and see if they were ill-advised in their predictions of -- >> yeah. what did they miss >> i just think what they don't understand is that a lot of their business would be like a st statefarm they had one and added to it. a formula 1, the ceo of lamborghini goes to formula 1. there are things they can't find with the channel checks. you have to cut that one out

anyone doing that should do something else for a living. >> i want to buy a yacht, jim, based on low interest rates and i'm going to name it thur sston powell it will be fantastic and everybody is invited on there. >> do you have the wife or just the millionaire? it's $12 million for a 130-foot yacht and a million dollars that you can rent it for, a million dollars to rent. it's cash flow neutral and that's with poor people on step. >> i'll get robert frank to make sure we know we're the biggest yacht in the harbor because he knows all these yachts we have the "gilligan's island" thing going.wasn't mary ann called mary ann? everyone had a nickname. >> was gilligan his actual name? >> just got left out. >> that's important. hey, janet yellen, fall guy,

huh? how do you like that whenever you make a wrong, s secretary gensler? >> listen, if the eagles' coach starts saying he supports his assistants, you know what's coming why support my quarterbacks coach when no one asked you if you did. >> joe girardi maybe stranger things. >> jim, we will see you in a few minutes. >> most definitely >> we want to remind you that the cnbc investing club u you can find out more at cnbc.com/investing club or point your phone at the qr code on your screen. "squawk box" will be right back. . we all know this equation, right? he'd crunched numbers day and night. that's it. to maximize profitability. morning. i have quarterly numbers that are beautiful. and forecast revenue from every corner of your organization.

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> welcome back forbes announcing a scrap of a plan to go ahead with a spac magnum limited seatgate and spac red bull acquisitions are terminating their agreement to combine

look at the spac index it's flat, references to the word spac are definitely up. >> yes >> it is the start -- >> now they're falling apart. >> just like the tedeals. welcome to june. start of a new trading month on wall street here what's amazing, may was crazy month for the market, right? look how we ended. >> you would never guess there were 12 percentage points' move there because i think the s&p was down by about 7.75% depths a huge swing >> we had the fear and loathing of the market at one point stephanie ling, high tower chief investment strategist and a cnbc contributor. it's like you're a big golfer, right. >> good morning. >> you shoot 12 over on the front nine, but then you shoot 12 under on the back nine and everyone's like, oh, you just

played a regular round, but you know better. >> you keep coming back to the sport when you end on a high note, right. look, i think we're unfortunately in this trading rain, and maybe 3,800 on the s&p 500, maybe we got to oversold and sentiment was pretty down. but nothing really has changed in terms of the inflation front. i know people want to talk about peak inflation i do too but it will remain elevated for quite some time and we don't know the if the fed can engineer a soft landing they don't have a really good track record in the meantime, energy prices are much higher, right, this month and last month, and the eu just posted an 8.1% consumer price index print, the highest ever, and what bothers me the most is home prices are up 21.2%. that's going to feed into rents, which is a stickier part of inflation. so you have all of these things. you have the market is down a lot, discounting a lot of it,

so, you know, what gets us out of it? some sort of certainty on the inflation, the war, but until we get some certainty i think we're going to chp around unfortunately. >> get out your seat and chop around let's say shop around. what do we buy in the long run want to own stocks for 5, 10, 20 years? >> yeah. i have been adding, brian, accenture. talking about salesforce, salesforce and accenture have a partnership together and accenture is cheaper you could pick whatever one you want, but these guys have size and scale and they have retention, and they're at the heart of digitization and they have $4 billion to do m&a and they've been doing small m&a deals. i like diamondback energy because now all they do is print money and they're increasing dividends, a special defensive end, trading at six times earnings deere fell on earnings last week that was ridiculous.

farming technology is here to stay and it will help their margins. i am trying to think for the long term. i'm trying to focus on fundamentals and filter on the fundamentals versus the kind of macro uncertainty. >> i was just in moline, illinois, the quad cities, where deere is based lot of new cars. restaurants were packed. maybe it's a deere innovator. >> call that a deere in the headlights >> oh, goodness gracious ooh don't do that. it's been three hours. got two hours of sleep stephanie, thank you i am a dad bad dad jokes. becky, thanks for having me again. >> great to see you you're back tomorrow >> i think so. >> lasso up. >> ted lasso goldfish, three-second memory. >> forgotten already you'll see that as of this moment, the dow is indicated up

by about 212 points, again, most of the gains coming from salesforce i think that's about 100 of the points right now s&p futures up by 17, nasdaq up by 48. that does it for us today. but we will be back here tomorrow we hope you will too see ya later time for "squawk on the street." good wednesday morning i'm carl quintanilla with jim cramer and david faber dow futures up 200 nearly half of that is going to be salesforce with that earnings beat, and the biggest up on earnings in nearly two years we kick off the month of june, tightening begins. stocks in oil moving higher. the treasury secretary calling on oil companies to boost production >> plus salesforce shares, you heard carl say it, are up this morning. the company boosted its outlook. a stronger dollar is seen as the only major head wind an