as a result, twitter shares are off by about 6.75% at a decline of $3.72 as they continue to circle around. don't know if this is a renegeuation or some way to get out of the deal. it will be tricky. they will pick up on that. tesla shares are up by 3.6%. that does it for us today. join us tomorrow right now time for "squawk on the street." good monday morning. welcome to "squawk on the street." i'm david faber, that gentleman is jim cramer. he's not here. he's at one market in san francisco. we'll be back soon let's give you a look at futures before we start with the road map. we're looking for a higher open in the broader markets after a downed week last week for the market our road map starts with looking for that rebound from that l

losing week. sentiment by easing covid restrictions in beijing. the white house, as well positive things in terms of potential tariffs that may not take place, plus, we're going to keep an eye on shares of apple they are down 17% this year. investors closely watching today's annual worldwide developers conference and amazon's first stock split in 23 years, remember, we talked about it last week the stock did rally into this split trading in three digit territory since 2017 jim, last week you said you had elon musk fatigue already. at some point today we would get to his tweet indicating maybe he wasn't laying off 10% of the work force at tesla and we just got and you heard from becky at the end of the "squawk box" we got a 13 d that stated very

simply that just another move closer in my opinion and those people i rely on to court to go into court i think it's as simple as that it comes down to this, he's made a case he wants more evidence about the number of fake accounts on the platform seems to maintain it's far above twitter's estimates in the beginning and says in the 13 d the latest offer to additional details regarding its own testing methodologies, written materials or verbal explanations is refusing mr. musk's data requests twitter's efforts characterized otherwise an attempt to confuse the issue

mr. musk does not believe the methodologies are adequate so he must conduct his own analysis and needs the data requested to do so. he's not getting it and jim, it seems they are getting closer and closer to court because this is under the obligations with the merger. >> i have to tell you, david, many people at twitter say look, he spent a lot of time looking at this. he was satisfied and suddenly he's not satisfied, that's the kind of thing that in court, in a real court will matter that will compel elon musk to buy the company and maybe this is to get away from specific performance data does it have a leg to stand on >> it's unclear to me it does. remember, he waived due

diligence, that was his choice he waived due diligence to get the deal done quickly and he did. he was relying prior to signing the deal and the mdas that came along with it, relying on public information. clearly, he has plenty of data analysts at his disposal and one would expect they're telling him something very different than what twitter is telling the world with fake bots and spam. i don't know the number. he wants to know it. he was not able to ascertain it and if they get to court, he'll have to prove that this is a br breach it would be difficult for him to do in delaware. >>i think when you think about what is going to happen. a lot of things that happened to

elon musk we hear about are with the fcc. they are civil this is civil, too there will be a judge and process and i think it won't be done in a court of public opinion anymore. david, it's entire ly possible and in a court, his personality won't play toward him. i think we'll hear about this forever and get more elon fatigue. >> they got it they passed it there won't be a second request. the anti trust review is done or is not going to take long. so you could see a vote on this deal in -- within a couple months so it's going to play out pretty soon and the next step, you know, i've asked this question many times already, which is why isn't musk already in breach of

the merger agreement -- >> thank you >> reasonable best efforts as he's obligated to do to get the deal done but there is a twice made on the twitter board not to push this, not to sue him at this point and take the offensive so to speak but one would expect it would end up in delaware court to your point, it's important you brought up specific performance. that's the equity. he's obligated under his contract to come up with the money, the equity. there is one out for him, the financing from morgan stanley. if that goes away for some reason, no reason that you could think of right now, then he would simply be left having to pay reverse termination fee of roughly a billion dollars. that is his out. that said, he actually, you know, is obligated to potentially sue morgan stanley to get the financing should they actually do that and when you look at the sources of funds and how much cash twitter will have and it's ebita and ebita

margins, it's hard to imagine morgan stanley would say we're uncomfortable with this. stranger things have happened but that's his only real way other than going to court to try to prove a breach here, which seems to come down to the idea that twitter has vastly under stated the number of fake accounts on the platform. >> the company would completely denied that. the company has over and over again researched the issue and shared the research directly with elon musk there was a three-day period where they did nothing but show him what they needed and he needed so when i read the letter to twitter on behalf of elon musk, it's almost a fantastic -- he was thrilled with everything he saw. now, suddenly, he doesn't like everything he saw? the notion that you can somehow be as arbitrary as elon has been will not fly, david, when it gets to an actual court. you can't say it's fine, no it's

not in a court this isn't tv for heaven sake. this is in twitter tweeting that i don't want to do it. this is actual law and there is going to be a decision the fact the twitter board is silent is the notion are you kidding, elon? >> maybe they're just waiting. i've been saying for weeks it seems they would end up in court. there was hope, perhaps, he was softening his opposition because it has been quiet for let's call it the last, i don't know, couple of weeks to a certain extent but clearly, that's not the case this just up the ante and again, he's saying in his 13 d if you're confident in your pub w publicized spam estimates, why don't you let me independently v verify it? they have to end up in court >> they would say you had a chance they worked with him closely david, do you think when you get

to court, that halari works as a way to convince the court there? if you're funny? is it the funniest person wins i don't know i went to harvard. harvard law school we never discovered the role of comedy in winning but this one is it. this is comedy. >> humor is important. >> is it more comical than the spirit air -- >> we'll get to that, too. >> a little levity never hurts, jim. all right -- >> the market has been gloomy. we need it. >> yeah, yeah. you want to move onto the broader market, sort of give us a feel what is going on and your plan this entire week ahead, of course thanks you've chosen to abandon me and be on the other side of the country? >> i miss you terribly that goes without saying

i'm out here, david, because i was comparing a piece for tonight. i visited pittsburgh in 1977, the waning days of the steel industry that's what i'm feeling out here it's the waiting days. all people care about is software is a service with analytics and david, you know what i'm done with that as a concept. i don't care about -- you know what is another funny word digitalization yeah, they keep hitting you with that come up with something new that matters. digitalization that is like the typewriter. >> i know it's very early there to begin with but are you getting a sense next year's trip will be to austin instead of san francisco? >> i may have to go there. i've been up since 2:00 here searching for something positive to say and it's only cyber security that seems electric austin might be a place of enthusiasm and you have an elon

musk facility out there. david, here it seems played out. >> wow. >> internet companies we don't care about price target cuts. it's a butcher shop out here. >> well, you still got a very strong week ahead of you in terms of the ceos of any number of companies, many would disappoint dpd disappgree with chapracterizati. >> i want to speak to companies making money i'm speaking to octa todd is the stewart of the losing money position that had been the dominant position here. [ laughter ] >> all right speaking of, you want to give us a quick thought about the market before we wrap up and then we'll talk about apple and that developer's conference after the break? >> yeah, well, we see a move in the semi conductors. that's to suck you in. maybe for the thursday amd meeting. we've got the chinese government

party, once again, the ruling party saying, you know what? we want america to lose more money so we'll give the okay to cyber security it's another trap after another trap can the semis rally until thursday absolutely david, once again i'll point out there are so many people who want this market to go higher and hope, hope should not be part of the equation, david. >> all right but last week you were talking about a bull market and a bear or a bull rally -- whoa i got to get back on camera there hello. there we go. >> no, no, that's real companies, david there could be a bull market in real companies and not companies that do software as a labor. i mean, david, if you're making money and you're giving some of it back to shareholders and your stock trades at a reasonable p.e., count me in. if your whole goal is to say you know what?

adjusted ebita or making money and then it turns out that means that if you had to do it without paying anyone, we're still losing money but adjusting it to positive david, out. >> earnings are in. >> got it. >> you've been saying that for years and june 23rd is your exxon -- >> 22nd, 22nd. june 22nd. >> you moved it. it's now become passe to say we'll lose a lot of money but we'll land and expand -- there it is. >> yeah. >> and you shouldn't worry about us because we're great that is no longer the reassurance that i want. i want companies that make things and get paid for them is that too much to ask? >> no, it isn't. no, it isn't. >> june 22nd, 8:00. >> 8:00 baby. >> they make money, david? does exxon make money? >> yes, they do. in fact, that stock is approaching $100 a share this

morning. we will keep an eye on energy. we're also going to keep an eye on apple, jim. i didn't see tim cook up there on the board but keep working at it keep working at it. >> he's in new york for the time. >> oh. >> taking 50 of the best and brightest for his -- >> got it. >> there is -- >> what time do you have to be there? does the invite say? >> where oh at the developer's conference oh, oh, the thing i wasn't invited to sorry. you're making another joke those are getting old. >> sorry. >> yeah. >> everybody knows that he really likes me now. >> he's twitter to your musk. >> yeah, right too many fake accounts. all right. let's give you a look at futures. we got 15 minutes before we get started with a new week of trading. we'll talk a bit of apple after the break. stay with us

♪♪ making friends again, billy? i like to keep my enemies close. guys, excuse me. i didn't quite get that. i'm hard of hearing. ♪♪ oh hey, don't forget about the tense music too. would you say tense? i'd say suspenseful. aren't they the same thing? can we move on guys, please? alexa, turn on the subtitles. and dim the lights. ok, dimming the lights.

apple is set to begin the annual week-long developers conference a few days from now surrounding software for iphones and a lot of other devices unclear, jim, whether they will show up as you see there in the journal story a newer version of the macbook, air laptop or anything else hardware related what are your expectations >> i think that this event like

many stuff apple does is secret. maybe you can argue it's incremental other than the a.r., v.r. head set. apple plays it close to the vest and reporters claiming what is going to happen could be prove to be quite wrong. not like the analyst that talk about supply chain tim cook, he likes splash. it's not wrong that doesn't move the needle with the stock because what happened is that is set last week by saying the numbers could be too high. >> she was specific to the app store, wasn't she, jim >> yes, yes, look china is virtually non-ex ly non-exist . nothing is being sold there. china is bad and when china is bad, china is bad for apple. they could have afforded it's

going to trump what will come out of the conference and focussed on and figure out if the numbers are too high and they very well could be. >> that said, live from beijing this morning on "squawk box" may join us this morning things are starting to happen there. people are going out again there is an opening. >> definitely. the dollar was too strong and now come off there is a hole. we have to try to understand how -- you said it how quickly china comes back online. those selling apple here, remember i say own it, don't trade it, are betting on the fact that there could be more downward revisions after this conference is over and the enthusiasm to the chinese stock market today is breathtaking because it's fool's gold there

apple, i think the numbers will come down for the conference. >> the chinese stock market, you have whether or not for sometime that said, it does appear dd and a couple companies are at the end of the review and that's why you see strength in the bigger names we see there. >> a lot of people think it was a bogus review and a bogus charge about cybersecurity they have to do their best they will do it. they will be money managers that say it's time to buy china they are people that want your money but people that don't know how to manage your money be careful usually a three-day move in china. good move friday da david, we should warn viewers, those who come in will be disappointed you'll start doing ipos again to

really suck you in, david. >> yeah, you pointed to those, as well. you can see broadly speaking many big chap chinese names wil be up and a 65% move in dd and still it's a $3 stock. that shows to jim's point the damage that can be done. up next, get ready, you have a mad dash coming up, jim and i was invited to the time gala. >> he did? >> you should go. >> should i? >> it will bfue n. >> awesome i'll go. all right. all right. i'll see you in a little bit what if you were a gigantic snack food maker? massively complex supply chaina to satisfy cravings from tokyo to toledo? so you partner with ibm consulting to bring together data and workflows

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from real obesity and have very high, what we call bmi, body mass index to get people under the threshold for obesity, you had to have surgery. now you might be able to use a medicine that's a profound impact on their lives personally and health outcomes. >> the ceo of eli lilly, david ricks talking about the new drug, jim that has got your attention. >> at the time maybe one of the great blockbusters this is a drug that has been shown this weekend, the data came out, 20% weight loss. only 2% for the placebo. could be a $14 billion drug in 2030 david, i see no reason why we shouldn't be on this the drug lir ica raises your weight i want this drug to compliment it any drug that causes weight gain

could be counter acted by this drug why the stock is up five is a great mystery to me. this is it this is the whole ly grail you can lose weight without surgery. david ricks, under stated. i'm over stating it. this goes higher. >> okay. to come back to you because i know you, you are not -- you are slightly over weight, maybe, maybe -- >> glee. >> not for a drug like this. come on, it's for people who really have problems with their weight you do not. >> am i slightly over weight >> no, you're not even slightly over weight. you're the one talking about going on this drug, not me. >> i want this drug i'm on -- if you don't do anything, gives you about a quarter pound every single month a quarter pounder. i'd rather it be mcdonald's than my stomach. >> back to the promise for this drug it could replace surgery you heard rick say it. you think it's a real possibility? >> absolutely. this is going to be a drug for people who are obese and i'm

going to kid around. i think it will counter act other drugs but if you're obese, which is a principle cause of death in this country because of heart attacks, this is going to be part of your menu and i want to be sure that medicare pays for it i want to be sure that company's data that looks so unbelievable is brought out there is a new england journal medicine article that talks about how great this is the legitimacy is there. this is a home run for eli l lilly. it is a half-court shot that makes it at the buzzer. >> got it. all right. we got an opening bell less than four minutes away. stay with us

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>> announcer: the opening bell is brought to you by nuveen, the leader in responsible investing >> all right we get started with drtrading ia little bit jim, time to squeeze in one of my favorites what do you see is the key to the market today >> gm five times can they rally pause those have become for red

headed stepchildren and notes saying the forbes lineup is sold out. obviously, you've got some issues with internal come bust versus electric. watch. because there are multiples so low they hold the key to the mar market. >> there you hear the opening bell the headquarters here at the big board glass fabricator tec hhno glass celebrating the transfer the leader of electronic components celebrating the investor day by the way, also this morning the trading floor in chicago, four main trading options, the s&p 00, the vix, the russell we'll hear more about that later in the show.

jim, start us off. >> there is a lot of twitter he does provide endless amusement and we have to stay close to twitter because twitter is a metaphor for the market it's something a deal that we thought was very exciting in an industry that is clearly waning that people thought was maybe he would reignite it and instead, he does seem to be walking away and it casts a poll over the market on the other hand, he's not cutting jobs we learned that material information he was cutting jobs is not right so he is not a side show he tends to be in the main ten. >> always. i mean, again, you can't really have fatigue with him, jim, because he's too important pl musk that was in a memo the memo was quoted by many news organizations saying he was going to cut 10% or at least eyeing that and then the tweet you're referencing indicates they're going to actually add staff at tesla this year

so hard to sort of bring the two together there it is. total head count will increase but salary should be flat. >> last week, david, we had jamie hurricane diamond, right, elon musk. elon musk was a fitting koda to jamie hurricane diamond saying things are turning down. now things aren't turning down i can't keep up. he was very important in the decline last week and i think what he's saying now with tesla is very important in the advance. it's just that we're kind of not used to having one person determine things but we have one. >> might as well if it's anybody, might as well let's put up tesla shares. we're looking at twitter tesla shares are up 4% to your point on that -- i don't want to call atit a reversal. clarification? hard to follow between tweets and memos and anything else he does, showing up on podcasts and

never ever talking to us, unfortunately. >> have you read the book "moon and six pins"? >> no. >> it's about an artist is such a genius he's allowed to do whatever he wants and doesn't play by the rules. this man is charles stricklen of our day. :it's a great book obviously, "musk" is a great book i'm sure isaac son is doing it. i've never seen a person other than charles stricklen says nothing means anything other than what i saw and i don't get it nobody knows what to do. >> to your point, it will be very interesting when he and twitter end up in delaware court as certainly seeming a real possibility. one never knows with the twitter board simply saying okay, we'll give you a price cut if you just

stop i don't know i know nothing on that i've gotten no communication lately at all that would indicate what their posture is, jim. the expectation should be should they choose to say hey, you signed a contract with us and you decided not to do business due diligence and saying our filings are incorrect well, we don't have to prove that to you. they're public filings we made them sorry. and they go to court and say this is in no way a breach mr. musk, however, continues to maintain and seems to be building this case in his own mind if nothing else the failure of the company to provide him with data so he can do his own independent verification, they're behavior to date and their last correspondence in particular, mr. musk believes the company is actively resisting and hoarding information rights under the merger agreement and is a clear material breach of their

obligations of the merger agreement. this is set up we may see how far hischarm an humor and power and willingness to not follow rules, his unwillingness to follow rules will go in the court of law. >> we come to respect ned. ned spent a lot of time with the musk team going over the names and how many may be bogus. there was a complete agreement that a certain number. did that mean nothing? well, it must. it is remarkable i've never seen anything like it at the same time you have lawyers checking things off. you have bankers everyone is thrilled here to make a lot of money except for david, you know who? >> shareholders. >> shareholders. remember them? >> i do.

5420 to remind people. that's the price at which he's contractually bound to buy this company. specific performance is part of the contract and again, the roughly $13 billion being provided by morgan stanley and actual financing he got rid of the margin loan is the only question mark here to the extend you want to say it's a question mark. meaning that if they were somehow to say no, we can't fund then that would give musk an out. jim, let's move on to another deal you mentioned it briefly this morning. both of us start to laugh a bit but jetblue is back. this time they're saying we'll give you a bigger reverse termination fee of $350 million. so that's now $3.20 a share. that means in what they say is the unlikely event, the unlikely event that this deal should not occur is not consemimated for any trust reasons. we'll give you $3.20 a share and by the way, when you vote yet on the deal, that's prior to the

anti trust vote yes we'll give you a buck 50 right away as part of the consideration. >> there is a man jonathan, former partner he's the head of the anti trust division of justice and i will risk -- i will risk a great deal to tell you that when it gets to him, he will reject this he is very focussed, not on the breakup, the big internet companies. he's focused on stopping companies that are doing things that are anti competitive. this is the most -- now look, they spin everything, david. they try to spin me. i am not owned by them i work for the viewers and i want to tell the viewers, if you're buying into this, check into the body of work jonathan cantor has because this is a no fly zone. >> well, robin hayes was a guest on "squawk box" and phil lebeau,

let's listen to his thoughts on this. >> we got enough on the table today, we i think it's a few superior offer we hope they come back to us and recognize the superior nature. let's close the deal and create kuw a high quality in check. >> jim, you know what? a lot of this is designed to do and it's playbook by the way good job it's designed to make sure that frontier doesn't get the vote, the spirit vote. right? that's scheduled for the end of the week it could very well be postponed. but they don't want them to get the vote on that deal and so this is what -- this is designed to do that prevent that vote or have it be a negative vote but most likely, they will just push it. >> if i were jonathan cantor the head of anti trust justice department, i would go to the west palm beach, fort lauderdale

airport where there is tremendous competition it's only the only route i know that's a bargain why? because these airlines are going against each other somehow, somewhere in a previous playbook with a previous president, this would be a good deal that might go through but now we have anti trust and anti trust is against this kind of deal. the advisers who all of course make it sound like it's not a problem don't understand the landscape has changed. >> you and i have been uniform in this and by the way, it's not because i believe it on my own it's because every single person i spoeak to outside of the advisors think it will take two years and get turned out, period. >> look, david, a lot of bankers have not had good quarters come on. this is a -- this needs to be done i mean, they are saying you know what guys? i know cantor. he's not going to accept it.

no. >> did you get on the phone with the goldman sachs banker did you do that? >> no, i'm open minded i'm open minded, fella i'm also -- i was not -- i was born -- not born yesterday and i'm not going to take the born yesterday posture i studied hard the dean of anti trust at harvard and i'm showing off and my wife will hate me and that's all i have to say. >> okay. all right. we'll move on. >> david, the -- >> i can stay -- >> the oils, david. >> oils. go ahead talk about the oils. tell me. what >> the oils are the battle ground because right now, there are people who aggenuinely thin the president can somehow lower the price of oil we are worried about the tariffs on solar, those look like they're going away but david, your group, exxon june 22nd at 8:00 p.m. is the focus of so much new money, once again, there are people that say

it's not too late because the oil stocks still aren't enough of the s&p david, your group, i call them. >> exxon is prapproaching $100 chevron is down. >> jim, i want to come back to deal land. >> a canal and a plan. >> whether you're here or there, you know what i'll do. cutting the price, perhaps you can thank them if there is a leak it probably should have shrunk more for a 4% cut it was an interesting decision in part because this is a company that is relying on their reputation as being the big buyer of technology, high growth

technology companies and mr. bravo himself is an evangelist and talks about the benefits on air of going private so you always do wonder if there is a reputational hit the firm will suffer from let me give you reasons why they say they did it. by the way, 6375 now it had been 66 a share in cash this is a very tight merger agreement by the way remember, talking about merger agreements earlier this is really tight because he basically was committed to the entire amount whether he got financing or not and he's got financing but financing isn't even a part of it tight merger agreement nonetheless, this is what he said, thoma bravo and anaplan regarding compliance with certain terms of the merger agreement toma bravo said these matters could have resulted in certain closing conditions not being satisfied.

i don't know what they are, jim. i wish i could tell you. made a couple calls. nobody returns them. i don't know what those conditions were, whether it was specific to anaplan or not because that has brought a ramification there are other deals thoma bravo was in, for example, sell, sell point look at sail shares. they're down in part because simply fears if they are doing anaplan maybe they will do it there, too, if it wasn't specific to anaplan, what was it i don't know you got that stock down almost as much on a deal nothing happened to. this is another deal thoma bravo is buying. mr. bravo himself, he was on a couple weeks back on "tech check" and, you know, he continues to want to be the favored buyer of these kinds of companies in private equity. take a listen. >> for us in private equity as a

buyer and operator of companies, this environment of five times forward revenue is the buying opportunity of a lifetime. there have been cheaper times in the global financial crisis where companies have two times after that combustion, it was one to two but enterprise software is nothinglike the past. >> of course, it's very different now than it was when they bought anaplan, jim, a high multiple in the market that i got 4% off. >> well, david, i don't know the way thoma bravo does pricing but i know frank, the ceo of anaplan and the most honorable, used to be at cisco, incredibly intelligent people i've seen the idea there was something anaplan didn't show them is hard for me to believe. frank is the cfo such an exacting and good person, i just cannot believe that anything to

happen on the anaplan side maybe it is. to me, it sounds like an opportunity to maybe buy it for much more about what the market is saying. remember, the market turned on companies that lose money. they decided -- i listen to mr. bravo talk about great opportunity and i say well, he's rich. >> oh, yeah, he is listen -- >> he's a rich guy. >> after extensive consideration to revise the merger agreement we did so to avoid the risk of lengthy litigation over the disagreement and provide increased closing certainty. so there you have it all right. jim. >> rises eyebrows. >> it does it does. we'll go to the cbo global markets because they have a new open out cry and rick is standing in the middle of it rick >> yes, david, who would have ever thought that in this day in age of computers we'd be back to people but it's a very exciting day in the city of chicago for the cboe

and the first opening trade. people are pretty excited here and the timing couldn't be better yes, the big s&p cash is up a little bit on the day and as you look at a chart year to date in one month, there is excitement here have we finally turned the market are we going to start to see more interest and calls than puts, volatility kicked down quite a bit and not only do we have a big s&p here, we have the vix, the volatility index that is note worthy because the vix last friday closed under 25. the first time we've closed under 25 since mid april and as volatility goes down, there seems to be a lot more interest in selling puts and buying calls than vice versa. so as we continue to pay close attention to the fed and interest rates, maybe the big question they will try to answer is it soup yet we finally starting to make a bottom inequities as the fed had enough guidance as the markets

moved enough to push these pits closer to the bottom we're not going to find that out, of course, but we're not that far away from a fed meeting. we have an ecb meeting this week and we see that the dollar index is taking a big hit and the reason it's taking a big hit is% other central banks look to be raising rates but we see these pits are dealing with it and right now, the s&p is up about 35 and many traders in this pit that are yelling or trading various increments of options whether it's overnight we have option exploration ever day, weekly, monthly, leaps on the long end so options have been one of the important parts as we open up to more retail. much more interest in options. you can customize it to fit your strategy if volatility is high, start selling options and if volatility is low, you can start to buy options which we've started to see. >> gary! gary >> i'd like to keep moving in

here a little bit to see some of the action you guys think the s&p is a bottom on this move? >> i don't know. it seems like it may be but you never know. >> i know. that's one of the reasons everybody continues to jump up and down and fight it out and it isn't only about computers it's a hybrid system all set to incorporate people. and as you're looking into shot, remember "squawk on the street" will return after a short break. hey businesses! you all deserve something epic! so we're giving every business, our best deals on every iphone - including the iphone 13 pro with 5g. that's the one with the amazing camera? yep! every business deserves it... like one's that re-opened! hi, we have an appointment. and every new business that just opened! like aromatherapy rugs! i'll take one in blue please! it's not complicated. at&t is giving new and existing business customers our best deals on every iphone. ♪ ♪

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you. >> it's time for stock trading amazon >> david, amazon stock is up almost $4. because they did a huge split. of course, it creates no value, whatsoever but here we go

you know what, i think the stock is overdone. on the down side, the ceo can course correct but it's important to note, if you want tour stock, one of these $500, $100,000, it's a loser. look at this, it's incredible. >> jim, it's been moving up into this it's not as if this is a one-day phenomenon >> details cater to the institutions why? they pay a penny per share but retailer wants to come in. the individual better wants to come in. i think the ceos should look at what's happened at amazon and realize how dead wrong they are to keep their stocks up in really ridiculous prices what is really incredible, is that whole thing has been going on for some time i think it's over. google stock, alphabet is moving up big why? people believe the cfo will say, you know what, i see what's happening, amazon, maybe we

should do it 20-to-1 that stock is going up right now in anticipation they see what's going on at amazon this isn't how capital markets should work. you know what, the market is in a strange place. >> yeah, it's a great point. i'm glad you mentioned alphabet. it's up over 3% as well. jim, you are far away from home. but for a good reason. and by the way, we should point out you are waking up, probably not sleeping at all. >> on thursday night, it's an all nighter. >> until 6:00 in the morning >> i have a company that has had a good reaction to its earning service now. the company had a bad reaction to its earnings, crowd strike and poor reaction to the twillo. i don't understand why it wasn't going up george kurtz jeff lawson. bill mcdermott let's figure out what is going on out here. >> i will take business for you.

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[ music playing good monday morning. welcome to another hour of "squawk in the street." i'm david neighborer with melissa lee. we're both live at the new york stock exchange morgan brennan is on maternity leave. let's give you a quick look at the marks. you see we are up across the board. >> we are. nicely, i might add. 30 minutes in the trading session. three big movers, we are watching for you, twitter falling you've after musk accused the company of resisting and thwarting his right about fake accounts on the platform, calling it a clearly material breach in a new 13d filing david will have more on that in just a moment. plus, spirit is on the move

after jetblue sweetened it to $350 million and pay a part of that as a dividend if the deal is consummated, increasing the value to $13.51 per share and didi says they have completed a year-long probe banning the company from adding new users. across the board in the chinese internet space, we are seeing a rally today. the supreme court is heading into the final week of its term. the justices have 33 cases to be decided by the first week in july one of the cases on the table jackson women's health organization it is a case that bans abortion after 15 weeks it is asking a giant step of overturning roe v. wade that would change the landscape of women's reproductive health. we will be closely watching this, supreme court decision day.

we will bring you special coverage as we get that ruling >> not sure when we will get what, whoeveatever it is, it wie of importance. speaking of potential court dates, it seems there may be one in the future for elon musk and twitter. we will see. the latest fired by mr. musk is recont he continues to put claims on what he claims are deficiencies in the true reportings of the numbers, false accounts, bot accounts, spam accounts, a 13d this morning indicates his unhappiness and the fact that he continues to up the ante in this ongoing dispute with the company by saying that if you are confident in your estimates, then allow me to independently evaluate those estimates, melissa. and he goes into some detail

about, well, better detail in terms of them not being willing to give him the information he is requesting in terms of that data and ends the 13d by sawing that given that be haifa your and the latest correspondence of late from the company as well that under the merger agreement, it's a clear material breach of twitter's obligations and those are fighting words. >> they are, or at least potential break-up words as interpreted by the stock swhae interesting, he says twitter's prospective owner. he throws in if he will become the owner of twitter, he needs this information to figure out what twitter's problems are, it's not all you are doing this long you lack testing methodologies, i don't believe what you are telling us otherwise, you should tell us how you got to that number there is a little bit in there that seems to say you know what,

if you do want me to take this company over, i need to know this information >> now in the regulatory filings, they indicated roughly 5% i believe has been what twitter has said twitter is saying the latest offer to simply provide additional details regarding the company's own testing methodologies, they are refusing requests and says stwiths is an effort to characterize and otherwise is merely an attempt to obfuscate and confuse the issue. he wants to conduct his own analysis, just to come back for a few things for people. i have questioned why they have not sued him for breach. he is to use his reasonable efforts to get this deal done. it doesn't seem to be his best efforts to get the deal done,

continuing to question the company in this manner at the same time, he has performance on the equity. the only merger agreement is to walk away in a sense and pay the reverse termination fee roughly would be if morgan stanley chose to not provide the financing we may well end up at some point in delaware court where they decide his claim of a breach is appropriate or not >> in the meantime, you have to wonder what wall street analysts think. they have been operating on a model that may assume the certain amount of spam accounts. you got to think they never quantify that. they never came one their own methodology to verify that number given by the company and musk is really saying, you should question this so the valuation of twitter in and of itself, even though the analysts throws it into question at this point. >> not a doubt i've heard the people close to him who are doing the numbers on their own at least working from public information will leave it

far higher the percentage is obviously 5% >> let's get back to the broader market gains leading stocks higher today. we are seeing gains across the board. more than 1% s&p 500 up at 1.4% nasdaq saving the biggest gains 1.8% higher. joining us oppenheimer chief investment strategist gentleman, great to have you with us. let me get your take on what we seen so far. it seems like the market has come to grips, the tantrum that really started i would say when twitter and target declined by double digit percents seems a little like in the rear view mirror at least for now. i am wondering what your take is on that? >> well, we have to think that the market usually overreacts to things when they happen. there has been a lot of over reaction this year you'd think we were going through expensive money, instead of the end of free money in

terms of what the fed is doing so the whole negotiation around twitter and everything else is likely to have exaggerated moves on either end. but within reason, 18 time elon musk is involved in something, there is a lot of outside the box kind of thinking and i think the markets reaction on that is certainly reflective of just working with musk. >> yeah. is this a bear mark rally, though, we are seeing, john? >> i don't think so. >> you don't think so? >> no, i don't think so in that, you know, if it is, i this i the market is trying to tell us where it wants to go i think we were in a fair market earlier. i think we're beginning to emerge from it we could go back into it in a bear market rally again. but this is not uncommon when you have a market that iscomin out of an economy that is coming out of a crisis, working for a process to navigate all kind of

transition gosh, have we got them, everything from the geopolitical to the highest inflation in 40 years, global trade supply, trade routes have been all dysfunctional. lots of challenges, but the overall effect is, the fed is beginning to do its job and the proof will be going forward how well are they doing? i think that's the key part. so the market will have its days of showing and believing things will work out. we think the overall trend will be a recovery process for this market >> microal, where do you stand on chances for a recession it seems like with the jobs out on friday, people are less worried about a near-term recession. but the glass half empty reading of that would be that maybe the fed has to actually go harder later on, in that there is no reason for a pause after a couple, of 50-point basis hikes. therefore this chance of

recession later on may actually increase >> yeah, our baseline view is that we do have a soft landing late next year but certainly the odds of a reinvestigation definitely a lot more elevated than in a normal period. i think the reason is, as you point out, we know that in june and july the fed will go 50 basis points we done think they pause after that i think in september they continue hiking hopefully at a 25 basis point on leaving pace but if the inflation developments and the labor market developments for that matter prove a little stickier and stronger than anticipated, i think we could see 50s continue into the third quarter and i think the odds of a recession next year would increase and the odds of a soft landing look a little dicier. that is going to be that aggressive >> we have the set price, michael. i am curious, because everything, for whatever the fed does, we haven't even fact ord necessarily the impact of qt it doesn't solve some of the issues that the root of the inflation problems, like the

ukraine-russia problems and supply cane issues and while some of those issues are easing and we might have hit peak inflation as some people believe. it doesn't necessarily mean inflation comes down >> right i think it all depends on how we define stragflation. one -- stagflation it was having elevated inflation with a few recessions. i think this time around the odds are better that we will avoid that i think one of the important things here is it does look like most measures people's inflationary psychology hasn't gotten as engrained as it was in the 1970s. so if we do have a recession, a garden variety recession, that should be enough to squeeze out the inflation pressures in the economy. obviously, we'd like to do that without a recession. i think the fact that again that inflationary psychology isn't apparent in most of the measures, albeit imperfect measures that we have. i think that reduces a

stagflation in the sense of being a multi-year period of high inflation and disappointing growth >> john it sound like you think the fed will stick its landing so to speak. you think we are in pretty much a bear market and the worps is the ovworst is over, there shou be smooth sailing. >> i don't think there is ever smooth sailing, melissa. there isn't an all clear signal that sounded over the markets. i do have to believe we are likely in for a bumpy landing, not a hard landing i very much agree i don't think we will run into stagflation in this particular cycle. but i think we might skirt a recession. but i think we'll skirt the recession rather than go into one as the economy is just for us and our view 'point has shown remarkable resilience and if we continue to move toward a global economic recovery, in particular with china's reopening of

beijing and shanghai and the process beginning now, this could be -- it could turn out to be a better sooner than many of us thought earlier >> yeah, the reopening is good on the reverse size, also inflationary when it comes to the demand side. great to see you thank you. >> thank you >> as we head to a quick break here's a look at the rest of the hour, including shares of apple getting a bit of a boost as it gets ready to kick off a world wide development conference. >> a look at how inflation, sky high gas and travel prices is impacting demand. >> we are live at the astrazeneca conference ha big show ahead for us, stay with us zblmplts

>> >> shares of apple up 2% the world wide developers conference will be getting under way this afternoon tim cook will open a week-long conference, where the company is expected to highlight some new hardware and perhaps more importantly some of the operating systems or new ones. joining us to discuss to him forte at d.a. davison. >> the big challenge for apple is thinking about their software like new operating systems when they can't keep the hardware in the consumer's hands basically, from an industry wide

level one of the best questions is what if anything apple can do more with privacy, which has an impact on snapchat and others. the challenge is on the hardware front when you think of the disruption to their supply chain and the june quarter sales fund. >> all right so that said is there anything you think that can move the needle in terms of what they introduce on the software front >> sure, on the software front, if you think of anything that enhances their services either on the fitness side, the health side, apple tv i think has started to get some traction and netflix. so on the software side, they have to decide on things on making it easier to do things and the computer is of that nature but those are things that we will be looking for on a software cycle >> tom, i am curious if you think iphones for this fiscal

school year, for this current order will have to come down that has not been yet factored in >> if you think about when they gave their outlook to the june quarter, they talked about the disruption but they said the good news was the manufacturing capacity of chosen had come back online. so those are reasons to think that the june quarter, while still down 4 to 8 billion from supply chain challenges will meet the expectations. >> how do you think, tom, about, for instance, services in the growth and services and it being able to -- i don't want to say if ill the hole -- but fill the hole from the decline or not decline, the slowing growth in iphone sales because right now that's the dynamic that we are facing >> yeah. in that regard i think apple has a strong hand on the services front. i still think apple can offer apple as a service not unlike cable where you pay a monthly

subscription fee for apple hardware and apple services. so i think there is still that opportunity. the services is a higher margin than the hardware revenue. so i think it can fill the gap for however you want to phrase offset of challenge of hardware sales and supply chain issues. >> tom, another name that you cover that we are watching today is amazon. sales continue to show a lot of strength after that split finally took effect. when i hear a split in amazon, though, i always wonder, do they get around to the bigger split on the business. i am curious whether they ever will or whether it will add value the split retail from aws, fredericksburg >> yes, the way i think about some of the parts on amazon is it valuable? the advertising business, which they are disclose as incredibly value. that third party where amazon collects a commission is also

valuable the 44% on first party seller oftentimes at a loss, that is zero so when i do several cards on amazon, i have a hard time getting a bigger valuation, though, recognizing individual business units like cloud computing, like advertising, like the effective at amazon as a whole is facing these slowing ecommerce business >> interesting so, you don't think they would be advised to pursue a split at any point? >> i am not. >> and as for the move up, in general, given the enthusiasm about a stop split, which as we all know is in no way related to the fundamentals of the company, has it been overdone another this point or is it simply a nice bounce off the bottom >> i don't think it's been overdone when they announced the split in march, amazon shares needed support. now june, the whole market needs

support. there is a perception perhaps retail investors that amazon has $100 it's a cheaper stock in amazon at 2,000 right now, the stock will be >> it's not just the retail investor buying the shares it's the options trading this makes it much more ac accessible for retail traders in particular to access the stock which gets more participation and is supportive of the shares. correct? >> yes in this regard i think amazon's taking -- apple's played well as far as when you have a store growing business, it might be worthwhile to do a stock split >> all right tom, appreciate you taking the team thank you. >> thank you >> when we come back, jet blue is sweetening its offer in that buyout race for spirit airlines. buyout race for spirit airlines. we'll give you the details one e amazing camera?

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we're getting an update out of the supreme court let's head to elon moy >> reporter: we have been monitoring the rulings out of

the supreme court. it had 33 cases to decide on by the ends of the summer it decided on three cases today dealing with bankruptcy, medicaid and the classification of southwest airlines workers, but it did not rule on that hotly anticipated case dobbs versus jackson womens health that would have ruled on that mississippi law banning almost all abortions after 15 weeks of pregnancy. of course, we will continue to watch the decisions out of the supreme court and know if there are any changes. >> elon, thank you elon moy in washington airlines the focus today let's look at the local ticker jets as travel continues to rebound both domestically and abroad shares up over 3% on the lyft three months, still down on the year top holdings, delta, united are up 10% since march that said a long way from the 52-week high >> well, speaking of shares of spirit on the move after jetblue

did sweeten its offer for the airline, at least in certain ways phil lebeau sat down with the ceo robin hayes, he joins us this morning good morning >> david, this continues it will probably not be the last thing we hear about this tug-of-war between frontier and jetblue for who wins spirit. we know that spirit has already endorsed the frontier bid. here is the sweetened offer that jetblue filed today. it calls for a $350 million reverse breakup fee. previously it was 200 million. when frontier upped it to 250. they said, okay. we'll give you 350 if the deal is not approved by the regulators by the way, there is a $1.50 per share dividend, one-time special dividend immediately upon the approval of the deal which spirit shareholders. that's separate from when it might go through regulatory review sheer robin hayes talking with us this morning on "squawk box" about why he think this is

sweetened offer will do the trick. >> we did the offer really reenforcing the superior nature of the offer we spent the last few weeks talking to many spirit shareholders and you know we believe the issue -- we are believe what we have done today addresses much of the feedback that we received we expect a very favorable response from the spirit shareholders >> so, spirit shareholders have a busy week. they are going took reviewing this potential sweetened offer here they are voting on friday on the frontier bid a straight up yes or no they're not voting on the jet blue offer that's been made today they're voting on the latest offer. that comes on friday take a look at shares of spirit. shares are up almost 5% today. remember last week lewis recommended that shareholders of spirit approve the frontier

offer. that came just a couple of days after institutional shareholder services iss came out and said, uh-huh, we think you should reject this call all of this is between jet blue and frontier, as you take a look at those two shares, they are both going back and forth and as of today, by the way, guys, we heard from spirit. the board will evaluate the latest offer from jet blue, so the saga continues i am sure we will hear more over the next couple of days. >> filliesen, it doesn't change what you and i have discussed many times, which is the expectation. we don't know, that anti-trust authorities is currently we know them to be would say no way or at the very least this thing would take potentially as long as two years to get anywhere near a final decision. much of this would seem to be designed to prevent a positive vote at least on the frontier deal. >> right. >> from occurring. >> yeah. as you know, we've heard this

from robin hayes i brought that question directly to him and he's heard this, he's heard people say, you are simply doing this to be obstructionists. to keep frontier from getting spirit he said, that's ridiculous we wouldn't come one this offer if we didn't think it could mean a regulatory review. you bring up the one thing i hear from everybody who is not involved in this deal. everybody who looks at it says, i am not sure in fronteer spirit would get through, let alone a jetblue spirit >> same thing. they're the same thing, over and over again thanks, phil >> you bet. when we return, the ceo of hilton chris nassetta, "squawk hilton chris nassetta, "squawk on the street" this thing, it's making me get an ice bath again. what do you mean? these straps are mind-blowing! they collect hundreds of data points like hrv and rem sleep,

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>> i'm domenic chu here's your cnbc update at this hour the u.s. and south korea fired eight missiles off the east coast, this in response to north korea's response of a barrage of short range missile% a day before, according to the joint chiefs of staff, the drill was aimed at showing force to match north korea's missile display. it was north korea's 18th round of missile tests this year production of baby formula has resumed at the abbott michigan facility at the center of the yawn going shortage in the u.s they are giving the go ahead to work at the plant after it was closed in february over contamination concerns abbott is aiming to release new batches from the facilities later on this month. and today, june 6th marks the 78th anniversary of d-day and commemorations are well up to date way in normandy, france crowds have began tributeing the soldiers who stormed the beaches

78 years ago to liberate france and other european nations through world war ii in 1944 >> dom, thank you, dom chu now, let's go to sara eisen live at the nyu international hospitality industry conference. she sat down with a special guest. >> hi, melissa, good morning i am here in time's square with chris nasetta of ceo of hilton. >> it's great to be with you >> we did a panel with fellow ceos in the industry, everyone was in a much better move. tf travel industry is good right now. you have pricing power, strong demand the question is, are you seeing any signs of a slowdown, given what we are seeing in the market >> no, i know the world is talking about the economy softening and recession. we are not seeing it in the industry yet we were here together i think on this very roof maybe four or five months ago, we are a world

better off as an industry. we seen leisure business continue to be very strong i think we will have the biggest summer we will see in o103-year summer we seen business come back in a very meaningful way and meetings and events start to come back. those take a little more advanced planning. so you put all three of those together, there is a lot of demand in the business that's giving us quite good pricing power. i would say as a result of new demand and you know the release of pent-up demand, we're not really seeing any evidence yet that is impacting us from a demand point. >> so businesses are coming bark, meetings, events, relative to 2019, it's still down >> it's still down, i'd say single digits in business transient travel meetings and events probably 15-to-20%. which you'd expect because the lead time on that business is much longer. but if you look out to advanced bookings later in the year and in the next year on the group,

meetings and events side, it's off the charts my sales teams basically are saying to me, the biggest issue they have the trying to manage the leak so much demand. >> even with the crazy prices, the price has gone up so much for hotel room airfare. >> prices have gone up for everything so we're no different than when you go to the gas pump or the grocery store or any aspect you like >> it is discretionary >> the two biggest components of our business are leisure travel and business travel, which drives meetings and events leisure travel, consumers still have 2.5 trillion with a t of incremental savings in their pocket right now they've spent about 6 or 700 billion. there is 2.5 trillion still out there and business as we know are very strong. very liquid, balance sheets are good profitability is very high then they've gone for two years, both from a leisure point of

view while they have been getting out, particularly from a business point of view in meetings and events, they've gone for two-and-a-half years without being the things that they are doing they are banging up. they have the availability of discretionary income and both segments to do it and the need, the income and need are being matched with demand. >> more price hikes on the way >> i think so. i think you will, i laugh with my team, i said the laws of supply and demand, laws of economics are alive and well we have very heavy demand, growing across the segments as i describe and very little incrementacapacity coming into thindustry as you would guess, right, given what happened in covid, while we are delivering a bunch of properties, you know, we've had the highest deliveries we've ever had lasted year in terms of rooms we deliver in the world. that is disproportionately now coming outside the u.s. and less so inside the u.s. if you look at the u.s. business, heavy demand across all segments and growing demand

against very little new capacity means you will have pricing power untiling the changes >> what about the internet, you said the u.s. after that, that's been the bright spot that's china is still shut down for travel and with the testeding requirements to get back in. i don't understand >> it's a new challenge, first time china the china business is sort of slowly but surely coming back. ironically, carolina in 2020 was the first market to come back. not that they were traveling internationally. but they've opened up within china sooner than the rest of the world and our business was very, very strong. they now have been going through closings in shanghai a little bit of beijing and other markets. but that's sort of now you know changing in the sense of you know more opening. so i suspect this week into the later part of this year, china will be, china is going to be quite strong i don't think chinese. >> chinese people traveling. >> i think china will travel within china i don't think any of us are

going to china, probably until next year would be my guess. when chain opposite up with chinese travelers in china, it's a strong business. in terms of inbound international business here, yeah, a number of us in the industry sent a letter to the administration urging them to eliminate the testing requirement if people have been vaccinated i am not sure the evidence suggests there is any real benefit in that and it definitely truncates. >> it is not keeping variants out. we are reaching a little of herd immunity if you will particularly if somebody has been vaccinated, our view is they should be allowed to come into the country if we got rid of the testing requirement, i think you'd bring a lot more international travelers in those travelers not only come here but they spend a lot of money. they spend more than domestic travelers. so you need, it's not just good

for our business and the airlines, but good for every retailer in every city in america. >> we know the commerce department is working on it, just the morning, the secretary said 90 million international people visitors. >> i was a part of that, the secretary asked me to china the ttab which is one of the bodies sort of helping advice her on that strategy. i think she is super constructive in her approach and i think what we have to do together with government and industry is now take those goals and set out a real concrete strategy for how we will deliver against that, including making sure that the borders are more freely opened. >> quickly, on the jobs front, it's a source of job loss during covid, how many openings do you have how much more are you having to pay in wages >> we are paying significantly more on wages. starting wages are anywhere from 20 to 25% higher than they were pre covid. we probably have about 10%

positions opens to what we really need. which is a heck of a lot better than five or sex months ago. so the issues on the labor side are still difficult. but they're not extreme. we are getting more people back to work. we are getting more people sort of repurposing themselves out of other industries, as those industries come off their high water marks, they're coming back into our industry, which provides huge opportunities for people long term so more to go on that, but we are making progress. >> good to check in with you thank you very much for joining me here at the conference. later, another panelist of mine, the ceo of marriott will be joining me for closing bell. for now, we'll sends it back to you. >> thank you, sara eisen, when we return, the ceo after astrazeneca. plus, the recent market volatility, we are taking a look at how best to protect your

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>> the president will be invoking the production defense act for a trade dispute and bolster domestic manufacturing and will halt new tariffs for two years. dom. >> melissa, we are seeing gains across the board for a range of solar names, including s&p components like enphase energy

and solaredge as well, and shoals and array technologies. the administration is exempting tariffs on solar panels from cambodia, malaysia, thailand and vietnam after some imports were caught up in a chinese probe put forth by the commerce department now president biden is also as you point out invoking that dpa, defense production act of some of the cleaner energy technologies so there may be more spending there. solar stocks have been more volatile over the past year. mixed performance among the big names. now enphase is one of the best performers in the s&p over the past year, up about 59%. on the other hand, you got names like sun power and sun run as well down about 13 to 30% for sun run chairs in the last 12 months one of the main etfs, the tirico tan, solar etf is basically flat in '22

it's been a roller coaster ride you can see here over 20% of its highs in november we will see the actions by the administration and president biden trigger a more prolonged rebound in some of the solar stocks i will point out in years patz as you recall, when oil prices go higher. they go up with them i'll send things back over to you. >> okay. dom, thank you it's important i am glad we got to that story today. as we head to a break, apple prepared to kick off the annual world wide developer's conference plus the co-founder, all u n'waon tech check. yodot nt to miss that. yodot nt to miss that. we are back after a quick break. visit indeed.com/hire and get started today.

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>> welcome back to "squawk in the street." days after shanghai lift r listed a lockout, beijing is moving quickly to ease its covid curves eunice yoon is live in beijing she has been reporting on this she has the latest for us. hi, eunice >> reporter: hey, david, well, beijing wants business to return to some sort of normal as of today, restaurants restarted their indoor denying, cinemas reopened at 75%

capacity stores, offices and even basement gyms we are told have finally opened their doors the big question is after a month of very tight restrictions, is it possible for the economy to come back well, the capital today was busier than before there were a lot of people that told us they were excited to be back at restaurants and also food delivery couriers were telling us that they haven't seen a drop in orders because they suspect that there is still a lot of people pretty worried about dining out now one obstacle has been the covid test because we are still required to present a negative covid test that is less than 72 hours old to do pretty much anything and that test is a very important part of what appears to be a big chinese experiment and that is that beijing wants to see if it could stick with its zero covid policy while at the same time

reviving the economy so the way that covid testing fits into all of this is that if you are able to continuously test your people and then weed out any of the positive tests. in theory, you should be able to keep people going about their day and keep the businesses ke people going about their day and keep the businesses going. guys >> thank you as we head to a break, throughout the monday month of june we are celebrating pride month. here is our own segment practice deucer, brandon gomez. right here you can't see him. >> change requires persistence after i came out the friend, i knew my family had to be next. at first my mother was confused. struggling with her religious beliefs, she told me if i had a child, they wouldn't be her grand child. it was hard to keep coming back

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cancer doctors, researchers and analysts gathering for the first time since the dppandemic began over two years ago meg is there and joins us with a special guest. >> thanks so much. the special guest is the ceo of astrazeneca. tell us why the data were so well received. >> good morning, meg it's a great pleasure to see you again. yesterday was so exciting. we had probably 20,000 people watching this presentation when the presenter presented the result, the room gave her a standing ovation with many cheers this data absolutely speck --

specta spectacular. the drug delivered a 50% reduction. this is transformative for the treatment of breast cancer >> what is the next step here? there's talks not just in expanding the patient population in this kind of breast cancer but other kinds of breast cancer and what are the next steps for other tumor types? >> yeah, absolutely. together with our partner, we're working very hard on a very large development program and where we are looking at is several dimensions first of all, we deliver the drug in her two high now we're in her2 low. secondly, we are expanding the use in earlier lines of

treatment. as you can imagine, the earlier you treat patients, the more likely you are tocure them the third dimension is we're exploring the use of this great medicine in other types. it has a potential in many concert types.lung cancer, and s gastric cancer for sure. we're explore these over the next few months. >> what else are you seeing there? it's been a huge amount of focus on your own data but are there other exciting developments tha would lead to more business developments in oncology this year we have other data we haven't seen innovation in many, many years

many other developments that we're working on i have to say research in cancer is still very challenging, still very important. >> how does the fact that the biote tech valuations have come down to much how does that look at the way youdo deals? >> we look at it assen opportunity. there are lots of very attract companies or companies that have

atrtractive products. investors have moved to invest in safer investments and safer companies. there are lots of very good companies developing attractive products it's opened opportunities to collaborate with them, of course >> just last question for you, you're at the cancer conference but i have to ask you about your covid anti-body drugs which has been the only option for people who are immuno compromised to prevent covid with a drug, aside from a vaccine how well is that holding up against the emerging omicron variant? >> so far test held onto deal with potential variant

what we have is a combination of two antibodies that have been modified six months and possibly more the reason we have two is that the virus is able -- this product is an important one for they do not respond to vaccines or have very depressed response to vaccine patient with tumors also need additional protection against covid in is a product that really fits well with the needs. >> thank you all right, thank you thanks to pascal as well

>> some of the bans that have affected their businesses such as the ban on adding new us users -- >> that's going to do it for us on squawk on the check tech check starts now. welcome to tech check. carl is off. today as major indices rally, apple up 2%. we will look at implications for apple stock and more apple up about 2% this morning elon musk shaking things up with the pending twitter deal that's tanking the stock. buy now, pai