from the cryptocurrency market over the weekend it all has to do with the hot inflation numbers taking a toll the average price of gas topping $5 the first time. now we have new grocery data on the price increases of key household staples. it is monday, june 13th, 2022. "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm rebecca quick along with joe kernen and andrew ross sorkin. we are focused on the equities dow futures are down by 560 points this is off the worst levels of

the session. nasdaq is off 335 points s&p down 90. as joe mentioned, this is all coming after steep declines last week on the percentage basis, you can see these are steep this morning. still dow futures off 1.76%. the nasdaq off 2.8%. this is after the worst week in stocks since january the dow was off 4% last week the s&p down 5%. the nasdaq was down 5.6% if you add up those losses, you will see that our indices are far off the record highs as of friday's close, dow down by 15% on friday, the s&p closed down 19%. the nasdaq, check it out, down by 30% as of friday's close. you are talking about multiple percent more the s&p at the open, would be in bear market territory.

nasdaq down by more than 33% the treasury market, huge moves here as well 10-year treasury is yielding 3.25%. it is inverted or was inverted earlier today. 2-year treasury is 3.2%. it is flirting with the 10-year treasury and 2-year treasury for the the first time since april this is all coming with the fmoc meeting and awaiting for the fed decision on wednesday. >> 75 is back on the table. >> it stretches beyond that. people are saying the threat for in intra-meeting hikes. >> the dow is off 15%.

what is a realistic dow pull back we will have katie stockton on she says it is a cyclical bear and secular bull >> to know it is a secular bull? >> i assume we go down 20% >> last time she was on, i thought she thought things would be flattish and this fall, if there is a form the capitulation, that is when it is coming >> it is happening -- >> it is happening sooner? >> unless it is starting now and we hit the lows close to the fall if we go to 3,800 on the s&p, there is a lot of this we feel it is frightening. we are up 3,800 on s&p the lows she talked about were 3,200. >> less than 20. >> that's another bear market almost

a correction talk about pain. you felt it over the weekend at the pump the average price of the gallon of gas topping $5 in the u.s. for the first time ever. i think i paid $4.97 the afteverage price in 22 stat is above $5. the typical household is spending more on gas than a yea ago. that is 62% more w t wti at 11$118.76. >> you didn't find that price in the city. >> no, in connecticut. >> a place you pay cash and 5 cents discount >> i was close to zero it cost me $75. i have a small -- i wish it was

a bigger tank. >> i was down in philadelphia and outside philadelphia where it was $5.29 >> everywhere. still premium. >> that's almost $6. >> more than 6 cryptocurrency bitcoin tumbling below $24,000 it is again. $23,900. more than $2 billion was wiped out in cryptocurrency over the weekend. it is worse for ethereum it is down and supposedly used for a lot of things. that is down more than 30% in the last week. down 70% from the all-time high. the mooch will be on later

i don't know how many of these we will see. this is what happens as the tide goes out >> fascinating story >> celsius what about coinbase? crypto lender celsius pausing all withdraws. the program cited extreme market conditions and the value of the assets dropping by half since october. it has its own token which erased 97% of the value in the same timeframe they are stressing the system. >> just the idea they will not let people take their coins back out on this. by the way, wasn't it promising 18% yields i don't understand >> that is why i would separate celsius from coinbase. leverage in the system.

>> the idea of the classic run on celsius you don't know how far the run goes coinbase is fine they had the weird comment we talked about at the time get in line. if it really hits the fan, you will get in line with everybody else >> i still don't understand entirely how they shut this down and there goes any credibility they have. there goes any faith in the system >> you know what >> is it because everybody has margin calls and they are trying to get out >> things should not -- we should not have the discussions at $23,000 when at $10,000 there were no discussions. on the way up, whenheit got nea 60 and that was before matt damon talked about only the brave. >> if they are making margin calls on other things in the market >> you asked the important

credibility question do people walk away? is this a credibility killer remember, i would have thought that when robinhood had its experience, that would be a credibility killer. >> i thought so, too. >> not so much they got more people using the service when this happened i wonder if this is a different scenario >> it seems like there are other places you have to store your crypto >> you think you can go to e*trade. >> is michael buying >> i imagine unless he has run out of money >> how about the guy in el salvador >> why not in these people are religious -- >> it would take never you need cash. >> it would take real nerve to step in here if you are truly a stacker, you

are. people that are in that. and coming up, we will get you ready for the federal reserve meeting. so much on the planner it is all coming up next you are watching "squawk box" on cnbc >> announcer: this cnbc program is sponsored by truist wealth. where meaningful relationships matter most. ♪ ♪ connecting to opportunity is just part of the hustle. ♪ ♪ opportunity is using data to create a competitive advantage.

♪ ♪ it's raising capital that helps companies change the world. it's making complicated financial concepts seem simple. opportunity is making the dream of home ownership a reality... ♪ ♪ ...writing new rules and redefining the game... ...and driving the world forward to a greener energy future. (applause) ♪ ♪ opportunity is setting a goal... ...and charting a course to get there. sometimes the only thing standing between you and opportunity... ...is someone who can make the connection. at ice, we connect people to opportunity.

you might have heard of carvana and that we sell cars online. we believe buying a car should be something that gets you hyped up. and that your new car ought to come with newfound happiness and zero surprises. and all of us will stop at nothing to drive you happy. we'll drive you happy at carvana. as a business owner, your bottom line is always top of mind. so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable 5g network. with no line activation fees or term contracts... saving you up to $500 a year. and it's only available to comcast business internet customers. so boost your bottom line by switching today.

comcast business. powering possibilities.™

welcome back to "squawk box. a warning signal in the bond market the 2-year treasury and 10-year treasury is looking to inversion. let's bring in the next guest. michael. it is a hard word for me, mike kontopolous. the question we would ask and beyond the market is tripping here is if you are jay powell, are you thinking 75 or 100 what are you thinking? >> you are thinking 75 the more important thing is what are you thinking in the future i think every meeting from here on out is a meeting that the market should expect 50 basis

points until you see consumption come down or inflation fall meaningfully there is no reason not to hike 50 basis points. they may signal that the poor guidance is part of the mechanism. they may say we need to do 50 points here on out with 75 in june that is reasonable >> what is the chance it is 100? >> it is small that it is 100. what we are seeing is enough tightening effect where they don't need to go 100 off the bat. that is the point. the point is to tighten financial conditions how do you do that higher yields and lower equity prices market is doing a fair amount of the job for them you also need credibility. surprise the upside and don't go to the point to tank markets like they had the last couple days. >> when do you think the wealth

effect or lack of wealth effect impacts the economy and does the work they hope to achieve? >> the interesting question of higher rates to the real economy has been less than some time prior to the global financial crisis, 40% of mortgages were variable rates you deparidn't have the consume cash on balance sheets as the fed hiked then, the transmission mechanism was clear. you had to pay more on the debt. today, it is much less clear most variable rates. incredibly low interest rates. for the next 30 years, the consumer balance sheet is healthy. it has to be through significantly higher policy rates that prevents borrowing or

the mechanism needs to be risk assets falling hard and perhaps the housing market falling hard. that having a wealth effect and brings in consumption. that is not yet. >> what would the target be in your mind with markets and real estate how far is too far is there a politically palatable number that makes sense for jay powell >> this is not 2018. i get asked all the time what is the flesthreshold? in 2018, they were not fighting fl inflation and now they are it is not dictated by stocks. especially with cryptocurrency the threshold for pain is credit markets. if the credit makrkets seize up

that's when you see them pause or slowdown. i think that is still quite some time away. so, i would not look to the equity markets as the signal for the fed to start backing off the pedal. it is more credit story than anything else. they will go full bore until the credit story blows up. >> it has yet to hit the real estate market in a maneaningful. when you think it does and what it takes to start to move that market >> you are starting to see the signs. you are seeing construction slow and inventory hit the market again. we are not there yet it could be another six months or 12 months before you see meaningful effect in the housing market we talked about the curve a little bit earlier the curve is just starting to invert that is a 12 to 18 month lag until you have recession let's push it out to 18 months the housing market has room to

run here people are stip gll go out and homes and hope for a little calmness in the market that could take time let's call it by the end of the year and next year with a situation where the housing market starts to pull higher mortgage rates sdp. >> mike, we will leave the conversation there i want to say i hope you are right. i hope you're wrong. thank you. i appreciate it. >> thank you we'll go to break. checking out the vix and what we can expect today that's a problem the vix hasn't shown enough fear i figure we will get fearful today. what do you think? 33 >> it has been orderly let's start adding up the declines from last week. 600 points on the dow. 880 on friday. this morning, you are looking down potentially 560 points. we will see. >> before things get started

>> before the fed meeting kicks off tomorrow and we hear from them on wednesday. >> what do we predict on the vix? it was at 33 i wonder what it opens today we have plenty of time we are not getting to the weekend. >> although next monday is a three-day weekend next week. >> really? what is it >> juneteenth >> monday and -- >> i'll hang on to that thought. coming up, more on the global market selloff. we take you live to london for a look at the biggest movers overnight in europe and asia still to come, the cryptocurrency carnage with anthony scaramucci

"squawk box" is coming right back your projects done right

. with angi, you can connect with and see ratings and reviews. and when you book and pay throug you're covered by our happiness check out angi.com today. angi... and done.

welcome back time for the executive edge and a close look at the selloff in the overseas markets julianna tatelbaum is joining us live from london give us what we should expect h here, julianna >> joe, if the asian session and start of the european session is an indication, it is a tough start for the states more than 3% worth of losses for multiple indices in japan, korea and hong kong. all of the markets in the region

saw losses of 3% a combination of fear stemming from the flags in the states and the interest rates paired with the covid situation in china in europe, losses. the german market down 2%. french market down more than 2%. similar pull back for the ftse 100 in the uk. in terms of sectors, we are seeing outsized selling in basic resources and autos. on the flip site, a more resilience in the defensive and food and beverage. that sector still in negative territory. >> we are global, no doubt, in terms of inflation and all of the problems the world is facing a lot of issues at the same time. we appreciate that report. maybe we'll make a stand over here, julianna, and maybe the rest of the world can do better tomorrow maybe. >> that would be nice, joe >> we'll see

see what we can do we are not doing it yet. let's look at the futures here if you are waking up, you have to check this out after the declines on friday the bad day on thursday. those declines are continuing this morning dow futures down 563 points. s&p futures off 88 nasdaq down by 329 multiple percent on each. when we come back, the events to watch in the trading week ahead the squawk planner is up next. we are celebrating pride month in june. here is our senior producer. >> the most important thing i want people to know about the lgbt community is we are everywhere we are ceos, actors, doctors, lawyers and football players and journalists. we are also appreciative of the many lgbtq trail blazers and

allies to create change in the community. we are not going anywhere. we will continue to stand united in the face of injustice until we are all treated equally under the law. >> announcer: executive edge is sponsored by at&t business at&t 5g is fast, reliable and secure the scene and needs a plan with a mobile hotspot. we cut to downtown, your sales rep lisa has to send some files, like asap! so basically i can pick the right plan for each employee. yeah i should've just led with that. with at&t business. you can pick the best plan for each employee and get the best deals on every smart phone. you're a one-man stitchwork master. but your staffing plan needs to go up a size. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

i promise - as an independent advisor - matchto put the financialtion. well-being of you and your family first. i promise to serve, not sell. i promise our relationship will be one of partnership and trust. i am a fiduciary, not just some of the time, but all of the time. charles schwab is proud to support the independent financial advisors who are passionately dedicated to helping people achieve their financial goals. visit findyourindependentadvisor.com

good morning welcome back to "squawk box. we are live from the nasdaq market site in times square. the pain continues this morning after the rough sessions after last week. that's not the case. more concern with the dow futures indicated off 560 points the nasdaq down by 329 s&p off 88 if you look at the percentage changes, you will see it is significant pain which continues to come. last week, the dow off 4.6%. s&p off 5% nasdaq off 5%. those percentage losses this morning are also going to be adding up with the point levels. 10-year treasury is yielding 3.23%. that is a jump in the yields across the board everything is higher

2-year treasury at 3.193%. the 5-year is 3.376% 30-year treasury at 3.259% cryptocurrency also adding up with the pressure from one market going to another market a huge issue with celsius. a lender facility is saying it will not let you take coins out. that created a mpanic. bitcoin is below 25,000. ethereum off 16% you see it across the board with all of these anybody who was hoping to sell one thing to pay off margin losses on another. this is where you see the acceleration hit this is all happening as government regulators are looking at how to figure this out. the senate is trying to figure out the regulation a lot of pain in the meantime to

cryptocurrency. the squawk planner it is fed week jay powell and company set to meet tomorrow and wednesday. market rate hike expected of 50 points we h are talking about 75 and j cramer is talking about 100. the reports on retail save saled imports and jobless claims oracle will report and kroger as well and adobe reporting thursday afternoon. on the agenda, gm's mary barra is talking about what will payoff for the industry. phil lebeau has more >> it comes down to whether or not you believe gm will ultimately raeap the benefits fr the electric vehicles.

we won't know that for a couple of years we in the middle of gm plowing money into plants and battery capacity all of that is in the background as the company holds the annual meeting. heck of a time for the annual meeting. shares cut in half in 2022 when it comes to electric vehicles, that is the story for gm it is a very small part of the company at this point. it is going to be the future they have limited sales so far that is one criticism out there. they waited too long the battery plant opens in northeast ohio in the next couple months. the production ramps 2023 to 2026 that is when we find out if gm has the portfolio to become a true player in the north american market. the ev market share right now is 4.6% of all vehicles sold in the u.s. in the first quarter were electric vehicles. it doesn't take a rocket scientist where most of the

buyers are going tesla. hyundai and volkswagon and ford have some. they will increase as more vehicles roll out. this is tesla's market gm and ford and stellantis with year to date numbers a lot of people say they can't sell suvs and pickup trucks right now. they are selling them. that is because the production is so low because of the chip supply, it hasn't yet cut into the core of people who are still looking for those vehicles those sales are still there. they are not where they were if it was regular production. you understand what i'm saying high gas prices will cut into demand if you had a regular market we don't have a regular market right now. we have a limited market and as a result, we're not yet seeing production cuts with what limited production and the big three with suvs and pickup

trucks so-called gas guzzlers they are more fuel efficient than 5, 10 or 15 years ago. >> that is interesting demand is out stripping anything they can do with demanded crushed by higher gas prices i was thinking about that yesterday filling up there has to be a point where people say no more >> you bet there will come a point, becky i talked to a number of auto dealers last week. i asked what are they hearing. they said the same thing so many people are out looking for a vehicle. they may not be crazy about what they're seeing with gas prices, but they want a new vehicle. they would love a hybrid there are no hybrids out there when i say no, limited supply. evs? tesla. a couple of other options. limited choices right now that leaves people who want a vehicle, what is my best option? if i buy a crossover, you get

better mileage than suv or perhaps a full sized pickup truck. remember, the fuel efficiency is better than it used to be. not great compared to an ev or a hybrid, but it is better >> i saw overnight elon musk commenting on a tweet thread talking about how model y, if you want one, you can't get one until february of 2023 he said they will try to ramp up how quickly they can produce them because there is so much demand at this point >> that's the beauty of the gigafactory in texas that is where they crank those out for the north american market becky, this is anecdotal over the years, i learned what doesn't lie. tesla on the road. my gut tells me the q2 production and delivery numbers are impacted because of what is going on in china. they don't break it out by market

i do think tesla is really doing well in the u.s. you see more on the roads. >> we call that the phil lebeau take on shakira. not the hips don't lie, but the eyes don't lie coming up, not the model s all those cookie cutter -- whatever gas prices topping $5 a gallon for the first time in america. crude is pulling back this morning. we dig into the energy move. later, taille of the tape katie stockton talking about where the low might be headed. "squawk" will be right back.

new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today.

welcome back u.s. equity futures are about where we started 317 on the nasdaq. tough sessions on thursday and friday on the percentage basis, another 2% tacked on to loses on the s&p. almost 3% to the nasdaq. the average price of gasoline topped $5 a gallon over the weekend for the first time ever. joining us now is goldman sachs head of energy research. you think $5.25 or $5.50 is the

high, damian you think we're pushing up in the next couple months at what will be the terminal high? >> we think brenices have to go higher another $20. you look at the u.s. gas market for example, it is remarkable the last few weeks are positive despite the high prices. it under scores the momentum on demand it is resilient. that is why the market is taking higher prices for the market to reach a balanced state >> which will be -- give me a ballpark we won't hold you to it. will we hit $6 average >> 10% or 15% higher that would be shy of $6 the main risk you have to keep in mind is when you are at low level of inventory like today in

oil, the risk is you gap to the% up upside that risk at some point and supply is too low. you have to hit that point of demand destruction not the base case, but the risk you cannot overlook for the summer >> and how do we gauge that? what determines whether -- i guess what determines the elasticity with the american traveling public are they flush from stimulus have they spent that how is the savings rate? do people want to go on vacation so badly that they will do whatever it takes or will some people say no, i'm not going to do this. >> the demand destruction is a process. the key is what you describe heading into the summer. your disposal net income is elevated by shrinking and still sufficient to support demand furthermore, you look at traveling and flying in particular, either you bought the ticket a while back or after

several years of being unable to travel and it will ramp up again. you have to look at global picture. the reopening is not ramping up in asia. that is leading more support to oil demand on the global basis for this year. in fact, you look at the global market and i think the signs of demand destruction are elsewhere than the u.s. initially. the strong dollar is putting pressure on fuel prices in europe and emerging markets. that's where we are trying to find evidence. so far, all we see is demand above supply and inventory coming down. >> in terms of trying to figure out retail gas prices, versus crude, what is the refining picture like right now in the u.s. how will that play into it >> a very good point we have never seen a disconnect with retail trading so far above

brent prices what drives that you invest in energy across the board. you are short on refineries. you are running as high as you can on refineries. that's barely enough to meet demand that won't get better for another year as you build gradually with more refineries in emerging markets. that is something to look out for. that is the problem. any hiccup at the refinery, like one in europe over the weekend, means you are further falling low on inventory you have a hurricane season that is a risk in the u.s that's important because you could have all of a sudden more crude out of the ground, but it doesn't solve what the consumer is facing at the pump past the refinery that takes more investment and higher financial incentive to ramp up. >> damien, if there were still energy producers that in the last year or so, last two years,

we're hesitant about long-term projects with the uncertainty involved and didn't know if they he wanted to risk capital. is that changing now is that too attractive to not go for it every other time we see high prices will cost copper production to increase it has always been that way for all commodities. price gets high enough and people will rush to produce and it brings the prices down. is that happening this time or is this a headwind where people don't feel comfortable with the long-term prospects for fossil fuels or do they go all out? >> the last point you made is key. we don't know what oil demand will look like 15 years from now. most of the payback or returns

or the long-term period. the energy transition or uncertain policy that will accompany it, is it renewable or support for hydro carbon the short-term returns are better, but doesn't solve the long term. when you look at investment slowing, it remains short cycle. that remains mostly shale around the world. the u.s. on a multi-year horizon has a lot to provide the world despite the uncertainty. to a short cycle producer, you are seeing a compelling reason to invest. that takes time. it is not immediate. refinieries are harder you can make small improvements, but you have to wait for other countries to ramp up other refineries. >> there may be feet dragging. that could keep us high longer than in previous cycles. >> multi-year investment we under invested for ten years.

demand is still rising that takes another life. think of the 2000s as a cycle and then the 1970s now this one we have to have the energy we consume and where we want to move especially when you think of energy as a share of market cap for example in the s&p we're single digit and average in the teens that is what we are he looking >> damien, thank you we will need you in the future don't use your phone we'll be calling >> happy to help. we get back to the selloff in a minute. a few of the other headlines google agrees to pay $118 million lawsuit claiming they discriminated against women in paying promotions. the lawsuit brought back in 2017 by three female employees. the company placed them in lower

job levels than similarly qualified men leading to lower paid they were denied promotions to transitions to other teams that led to better career advancement. that is covering 15,000 employee whose worked at google in california after september of 2013 google did not admit wrongdoing as part of the settlement which still needs to be approved by a judge. the fda said yesterday that three doses of the pfizer covid vaccine were effective at preventing symptomatic disease in children under 5. there were no safety concerns in using the vaccine compared with older groups it is a sign they are clearing the covid vaccine for children under the ages of 5. joe. the latest chapter in the "jurassic park" series took the top spot at the box

office >> going back from the last one, we accidentally brought them back to america. >> you know it is made by a fabulous company >> yes yes. yes. and we're seeing it an again and again. >> universal parent company of comcast. >> "jurassic park dominion." that's not it. "jurassic world dominion." brought in $143 million in ticket sales in the debut weekend. it is owned by universal our parent it has sam what's his face in it and laura dern i think they ron howard's daughter back in it and that hunky guy from -- that guy's in

it >> great film. >> we will talk about "top gun" which is just cool >> i was late to the game. i saw it that weekend. >> it's not that late. >> becky hasn't seen it. >> it was awesome. whatever they say. it is that and better. crazy. >> nothing you can point out hollywood's so an knoying >> no cheese >> i don't mean cheese none of that >> it gets your mind off the markets. if you are waking up this morning, we are under pressure again. when we come back, we check up on surging grocery price as well with the ceo of stew leonard's "squawk box" is right back

welcome back let's look at what is happening this morning you are seeing continuing pressure even after the decline of friday and thursday the dow futures off 534 points believe or not, off the worst lef levels this morning. nasdaq down 318 a lot of this is due to the food prices out on friday joining us now to talk about what it means for you at the grocery store is stew leonard. the president and ceo of stew leonard's. good to see you. i'm sure the 11 point increase is not a surprise to you people are wondering what is coming next. what is in store for your price

for food >> becky, it is the retailer that is important. because the way i explain it to everybody is like stew leonard's, one of the dairy farmers and customer are all at a restaurant together and the check comes. what we've done is said why don't we split it. that's how we approached it. you haven't seen price increases on everything. we're holding butter and ground chuck. just like costco with chicken. we are holding the price on that although the costs have gone up. today, you can see it from the suppliers that their costs have gone up. look at the diesel fuel to put in the tractors and fishing boats. >> what are they telling you in terms of what to expect a month from now or two months from now as they start laying contracts out? how much more food inflation will we deal with? >> i think you will see it in

certain spotty areas lobster prices soared the last couple years to record levels that we've never seen before ever we're starting to see he them come down. we were just in kansas city with the ranchers out there they are seeing the beef prices now stabilizing. i think a lot of the numbers you are seeing on the news right now are lagging to last month or so. i feel right now the seas are calming a little bit right now. >> that's great news >> i think we're at the tip of the wave here. it will hopefully stabilize or get a little bit better in the future >> stew, that is the best news we heard all morning >> i'm just telling you from on the floor at the store here talking to suppliers i can't argue with all of the numbers you are putting out

there that the expert economists are talking about. that is what we feel is the ground game here at stew leonard's. >> you are on the frontlines you have a better idea than anybody doing this from the economics point of view. in terms of the higher lobster prices, is there a point where people say forget it and i'll not buy it and are there other items that reached that? >> we see people buying what they need and not what they want you know, they are also very cautious about what they are buying you are right. the price of lobster goes up and they will switch over to less expensive. maybe eat more shrimp or salmon. they will switch you see that happening in food right now, chicken prices are higher than the ground beef price. more expensive to put chicken breast on the grill than hamburger. i've been doing this for 50

years now and our family business and i've never seen that happen before >> stew -- >> yeah? >> go ahead. >> there are crazy things going in the markets today that we've never experienced before >> stew, i want to thank you for your time this morning that gives us a bit of bright news and a little bit of hope. thank you very much. >> becky, can i one second my wife and i lost a little son to a drowning. i wanted to say to the listeners, be safe around the water this time of year with the kids. >> stew, a great reminder. it was your son, stewy >> be safe have a great summer. >> thank you, stew coming up on the other side of the break, anthony scaramucci will join us to talk about the morning's cryptocurrency carnage. bitcoin at $24,000 let's see if it goes higher or lower from there

the price of bitcoin $24,000. "squawk box" is coming back right after this girls... the chess club has gained an edge on our bake sales. we need more ways of connecting with customers, fast. i know some consultants with great ideas. can they help us improve our digital experience? absolutely. they've invested over $2 billion in tech. that could really help us manage inventory. and save us a ton of dough. then let's take back our market share. checkmate, chess heads. girls, i said “bedtime”!

global stocks under pressure

asia selling off overnight europe opening in the red and the s&p now looks set to open in bear market territory. we will tell you what major wall street firms are saying about the moves. crypto crushed $200 billion wiped off the market over the weekend and down big this morning among the guests this hour is skybridge founder anthony scaramucci a big week for the fed jeremy siegel will join us the second hour of """""squawk starts now >> good morning. welcome back to "squawk box" here in times square i'm andrew ross sorkin alongside rebecca quick and joe kernen

we are using the word selloff. the dow off 516 points nas ddaq down 317 points. s&p off 308 points a lot of people are waking up to red arrows across the board. some laggards in the dow you are looking at nike down 3%. salesforce down. visa, apple and walgreens boots. and check out the nasdaq you will see the big names there. marriott and docusign and crowdstrike and others we are watching crypto bitcoin is taking a bath this morning. you are looking at it falling now down below $24,000 bitcoin. anthony scaramucci will join us later this hour to see if he is buying on the pressure because

of the news over the weekend about celsius holding back or preventing people from selling their bitcoin. that now at $23,962. oil this morning let's show you the boards there. a lot of folks felt it over the weekend at the pump. wti crude at $119.13 everybody is watching gas prices this morning after the national average topped $5 for the first time ever over the weekend >> there is a half empty and half full. >> you are going half full give it to us. >> if it hadn't been thursday and friday >> yeah. >> we put up the percentage losses today off the averages we go bad. 2% it's 2%. it is not -- you add in thursday >> on top of >> on top of the averages last

week >> 5 for the s&p >> let's do percentages from now on we don't want to sugar coat it >> a couple percent today. >> yeah. we're used to that 500 points is not what it used to be. if we stick with percentages -- i thought it was interesting seeing marriott there. that is not a lockdown thing that's things cost too much to go anywhere, i guess that is where you are worried about prices get too high to actually travel. outside inflation, you don't need the fed to overshoot. inflation can cause the slowdown. >> and kill demand a lot of people had holiday plans booked in for the summer i think if you look beyond that. >> we talked about it. i was looking at coach

commercial domestic fares to ski next year. $2,000 i got a family of five think about that >> you are not a last-minute person >> no. this is me looking out in 2023 i'm thinking, i'm not doing this trip >> you are not talking zurich. >> no. this is a new york to salt lake city flight. new york salt lake city. >> great snow. >> it is great snow if you can afford it. we will go to dominic chu who has the pre-market movers. looking in the wrong direction. >> yes, it has been that way most of the morning. that hangover from thursday and friday continuing today. you mentioned some of the big nasdaq 100 laggards with docusign and marriott. percentage basis bad in the overall picture. we want to focus more on the

market cap perspective heavyweights with the nasdaq and 100 and s&p 500, these are the stocks with the impact on what happens with trading today at the index level. we look at apple and microsoft and alpha bobet and amazon and tesla. 2.5% loss for apple. 3% for alphabet. 3.5% for amazon. tesla down 3% as well. if we look at percentages. that's the mega cap technology and adjacent trade that will drive a lot of the market action in the nasdaq. also, when we talk about the rising rate environment, financials are in focus. a rising rate environment and we should do better we have not seen that materialize. in trading today, no surprise perhaps in the down market that

jpmorgan chase is down nearly 2% 2.5% for bank of america citigroup down 2%. morgan stanley and goldman sach posting losses tech financials not doing well with if you look at some of the outlooks that have come from wall street over the past weekend, given the market narrative and rate trajectory, we have seen mike wilson over at morgan stanley point to the evidence of the slowing growth environment and risk to earnings we think the s&p is headed toward 3,400 before the tradeable low is in. to give you an idea, you are seeing the s&p close at 3,900 on friday that implies 13% down side if mike wilson is correct and we get to 3,400 something to keep in mind. go to goldman sachs. david kostin he talks about earnings.

if the eps estimate moves to $225 for the s&p halfway to the recession scenario of 200, up 14 times price to earnings, brings the s&p to 3150. using the 3900 close from friday you are talking the down side of 19% from current levels. some moves coming in with wall street weighing in where the down side could extend the crypto here. put it up one more time. bitcoin below the $24,000. we are talking 13 to 20% declines andrew, a lot to think about the targets are interesting because it gives you a scenario where this is not done we have more down side to go >> dom chu, it is hard to say thank you. thank you. >> you got it. >> i appreciate it.

let's dig into the selloff and ways to protect your portfolio. we have the head of citi global wealth with us kristin, do you have -- do you have a half full scenario for taking into account on thursday, friday and today is there any glimmer of positive sentiment that you are able to find anywhere? >> i think it is hard to find it if we look at the consumer sentiment at the worst levels in 70 years last week was intense. the last year was inteintense. we have historic anomoly. one potential bright spot is we go back to stocks and bonds

decline in tandem. we used a number of 4% it happened five times in history. the six months following, five of the five times, fixed income was higher to the tune of 11% of total returns. seeing the carnage in fixed income than equities >> we have gone from, i guess, a sentiment among players and the fed. we were at transitory. don't worry about it we have it under control we have orderly increases. here is the plot we went to 50. we took 75 off the table all that complacency now we're talking about 100 points we have found religion in terms of realizing we need to go higher and maybe the fed is behind the curve that might be a good sentiment

indicator that we all found god. we all found religion. we realize we need to raise rates. could that be as you say a bounce in the fixed income >> the market has done pricing for the fed. we have rate hikes a quantitative tightening. the challenge with the fed is they boxed themselves in the corner not because what they said to the market, but they are trying to solve the problems of the past as opposed to the current once fed has a lag of six months. that combined with inflation which is supply side driven and a lagging indicator. the fed needs to signal they are inflation fighters the green chutes here is the cpi print. we saw it shift from goods to services we sauw within services turnover

when we look at the pieces of the puzzle if inflation could come down. it will not come down 3%, but 6% by the end of the year that is where we are moving in the right direction and potentially a pause. >> you are not necessarily a technician, but we have seen the vix not really reflection as much fear as some thought was necessary for what we've seen in the markets. if that continues, does that indicate we've got quite a bit further to go in terms of down side on the s&p? >> the vix is really interesting here i think around 30 -- it is not showing capitulation when we have capitulation, you are talking a slowing of the vix. you see the crossing over the 40 threshold. the vix is one of the curious parts of the market that the

selloff has been orderly more importantly, there hasn't been high volumes. when we look at the par participation in the market, you are not seeing capitulation. you see overweight cash to the tune of 30% of investment assets with those very strong cash balances and another bright spot is the consumer in relatively strong shape that is why we have not seen the full capitulation and spike above 40 >> kristen, i don't want to bring this up. something got us to 4600 you know, that's not supposed to happen when the world shuts down because of the virus i can only point to the fed and to maybe some stimulus as well which could mean a lot of it was built on easy money if you

doubled from 2300. when we talk about the low of 3200 like it is the end of the world, it is below the pandemic lows i don't know why anything surprises us at this point >> you have to follow the earnings and that situation. you are right. you had stimulus you had a lot of easy money and liquidity coming into the market the market is trying to hash that out in terms of those companies that are profitable versus those are a call option on unknown future of we are seeing that carnage in tech that is creating long h-term buying opportunities the crossroads has to do with the difference with the soft landing and hard landing from the fed and what is possible and if we are in a resilient scenario or recession scenario if we are resilient, the bear market in the s&p which is 20% and that's what you would expect for that type of correction.

if we go in that recession scenario, that is where we see additional down side the average recession, you see equity returns that is what the market is hovering around. >> kristen, thank you. kristen bitterly of citi thank you. when we come back, skybridge capital's anthony scaramucci talks inflation and markets and the plunge in bitcoin over the weekend. that plunge continuing bitcoin down to 23,805 bitcoin now below 24,00$24,000. you see the decline continuing ethereum with a decline of 18.5%. we'll talk more about celsius, the crypto lending facility, not allowing anyone taking their

bitcoin out at this point. that is the problem this morning. "squawk box" will be right back. >> announcer: "squawk box" is sponsored by bitwise the world's leader in crypto index funds. what if you were a global energy company? with operations in scotland, technologists in india, and customers all on different systems. you need to pull it together. so you call in ibm and red hat to create an open hybrid cloud platform. now data is available anywhere, securely. and your digital transformation is helping find new ways to unlock energy around the world.

when it comes to cybersecurity, the biggest threats don't always strike the biggest targets. transformation is helping so help safeguard your small business with comcast business securityedge™ it's advanced security that continuously scans for threats and helps protect every connected device. the choice is clear.

get unbeatable business solutions from the most innovative company. so you can be ready for what's next. get started with a great deal on internet and voice for just $49.99 a month for 24 months with a 2 -year price guarantee. call today. coming up, the markets in selloff motde this morning in a big way. we speak to skybridge capital's

anthony scaramucci about the selloff in bitcoin we will talk to professor jeremy siegel sharon epperson, what do you have coming up andrew, when you get your next 401(k) statement for the second quarter, you see how long that nest egg llwi last. those numbers will surprise you. we'll have more after the break. your shipping manager left to “find themself.” leaving you lost.

you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire i didn't realize my dna could tell me if i had a higher chance for type two diabetes. so when my son gave me a 23andme kit, it was a wake-up call. this father's day, start a new health journey together with dad with $50 off every kit.

how will your business adapt to change? this father's day, start a new health journey you could hire an office full of peyton mannings. what's up, peyton? good morning, peyton. hold for peyton. they'd huddle.... welcome to the peytonverse. such a visionary. game plan... you go. no, you go! and call audibles... double our investment in omaha! omaha! omaha! omaha! or you could use workday. omaha. the finance, hr and planning system used by over half of the fortune 500. for a be-agile-like-an-mvp world. workday. for a changing world.

you may be surprised when you open your next quarterly 401(k) statement why do it if you are not near retirement i have not been opening many statements if you anticipate the slide in the account balance, you may not be ready for the new calculation on the expected monthly income from the nest egg. sharon epperson joins us now on what to expect do you open it when you get it, sharon tell me the truth. >> absolutely. i know in your house, they are piling up. the statements are piling up emails are never opened. many people want to open emails

and statements starting next month, many people will see how much income they can expect to receive in retirement based on the current 401(k) account balance for the first time, statements will be required to include lifetime income illustrations showing how much income you would get if you bought an annuity at 67 with the current 401(k) it includes a single life and qualified joint spaceand survivor saving and investing to generate a regular paycheck in retirement rather than building a lump sum can be a key strategy. >> retirement planning is not just about socking money away and building a mountain of cash. it is about what i need to do to make sure i can sustain a certain standard of living post retirement for as long as i'm

alive. >> now yet in these new illustrations, compound interest and future earnings and social security are not taken into consideration. that will result in a less amount of retirement income. don't pan panic. saving more now should be your primary goal >> focus on increasing your savings rate you want to focus on what you can control always that's the biggest thing you can control. how much you are saving and how you are investing in terms of proper balance to asset allocation >> now these new estimates may be a rude awakening for some, but also incentive for more people like joe to actually read their 401(k) statements. back to you. >> you are upset with me sharon, if the calculation --

>> open them you have to see where you stand. >> what about next month where things come back if you estimate how much you need for retirement, how can you figure out the appropriate retirement income will be and how to save and invest >> for those that do open their statements, you take the numbers and figure out when you want to retire and how much money you will need to keep the lifestyle that you have now and you can put them into the different types of calculators, online financial cerservices have a tof them you can go to aarp, the american association for certified accountants. you can look at the cpa web site that will show you a robust way of looking at retirement way of income the aarp income calculator as

well it takes crunching numbers on your own maybe it is an incentive for people to do that work. >> when do you think it will be called a 200.5k? never mind someone wrote that in. i had to think about that for a second exactly half of 401(k) we're close. >> on our way. >> sharon, i'll let you know you make me feel like i should do that. >> i'll keep you posted. >> i'll hold your hand while you do it. >> thank you still to come, carnage in the cryptocurrency market. bitcoin plunging below $24,000 skybridge capital's anthony scaramucci will join us to talk about the slide and whether or not he is buying today as we head to a break, look

at the laggards on the nasdaq. marriott was up the list now it doesn't even make it to the top five docusign down 5.7% pinduoduo and nvidia and crowdstrike. futures are pointing to another tough day for investors. dow indicated down 550 "squawk box" will be right back. >> announcer: your money, your future is sponsored by fidelity investments. and proactive alerts on market events. that's decision tech. only from fidelity.

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, so you know all you need for recovery. and you are? i'm an investor...in invesco qqq, a fund that gives me access to... nasdaq 100 innovations like... wearable training optimization tech. uh, how long are you... i'm done. i'm okay.

good morning welcome back to "squawk box. we are live from the nasdaq market site from times square. we are following losses. dow futures down 1.76% s&p futures down 2.2%. nasdaq off 2.8%. the reason this is a big deal is we were down by 4.5% for the dow last week. we were down 5% for the nasdaq we were down by 5% for the week for the s&p and down 5.6% for

the nasdaq these are losses on top of losses things are starting to add up. overnight, crypto lender celsius pausing all withdraws. citing extreme market conditions for decision the firm is seeing value of the assets drop by more than half since october. its token has raised 97% of the value in the same timeframe. look at bitcoin and cryptocurrencies it is a bloodbath this morning bitcoin down under $24,000 $23,609. ethereum coming down 20% $1,186 joining us now to discuss it all is anthony scaramucci. skybridge capital founder and cnbc contributor anthony, it is good to see you i want to get your thoughts on a morning like this. i don't know if we are doing a

full round trip, but we're getting close. >> full round trip on crypto or overall market i think both are in question right now because as you and i know, interest rates going up 1% to 2% rise in interest rates and easily take 10% to 15% out of the market watching you this morning makes me think of march of 2000. i'm old enough to remember that. internet stocks cratering. many went to zero and gems went on to do well like amazon. i'm encouraged that bitcoin is above 50% of the overall crypto market cap right now which is another sign that there's a flight to quality there. of course, celsius is putting pressure on it same way the luna/terra situation put on it six weeks

ago. we're in a bloodbath this is my eighth bear market. i expect to survive this one as well caution people to stay unlevered. everybody has a long term perspective until short-term losses, andrew then they set their hair on fire and run around in a circle i recommend stay disciplined like joe, don't look at the 401(k) statement for now. >> does disciplined mean stay buying you have been bullish on bitcoin. if you are a true stacker, is this the time to stack >> i certainly think so. with incremental cash that comes into the bought more bitcoin and ethereum we have a private stake in ftx it is gaining market share it is doing well it is a profitable company so, yes, the truth be told that people will look back on this

debacle and say i wish i had fresh cash to buy into that. could it lay down more certainly. we all know whatever you think cannot happen on wall street likely does happen so we're ready for every scenario >> anthony, internally, when you say lay down to your partners and you look at the risk/reward, what is the low in your mind and also what is the opportunity in your mind? shor short-term >> it would be impossible for me to predict the low if you were at consensus last week at austin and saw the robust development in web 3 and see the money that is deployed, i think the upside is enormous i still believe bitcoin can easily get to $100,000 a coin over the next 12 to 24 months. you have to settle out where the markets are and listen, we could

get better inflation data by the end of the year as the pandemic subsides and supply chain starts to get more connected, andrew. a lot of bad news out there. everybody i know, i was at the yankee game yesterday. everybody was resoundingly b bea bearish. that was a good sign we were in davos, switzerland weeks ago. everybody was bearish. there are a lot of contra indicators out there i cannot predict the future. i can see a tremendous amount of robust development and adoption. remember, these investment banks in 2018 shelved their cryptocurrency ideas today, they are doing derivative trades in ethereum i don't think there is any going back lots of good information lots of positives with fundamentals the price action is terrible right now. >> what is your sense of the

distinction of how investors might think about bitcoin versus ethereum ethereum is off more than bitcoin. some argue accurately that ethereum has more utility than bitcoin. >> i think what is going on here is that these things are wrapped into the other structures like celsius or terra/luna. the pressure on ethereum is another one of these projects, these quote/unquote stable projects are very unstable i don't understand why they are using collateral like ethereum or bitcoin which has 80 vols to themstabilize. that doesn't make sense. that is putting pressure on ethereum we like ethereum, andrew a lot of cases for that

technology tons of robust activity in that space. those are the two mainstay anchor tenants at skybridge. one this flushes out, a lot of my peers gave up on technology in march of 2008 they missed out from 2000 to 2022 whatever is going on in the markets today, zoom out and you can see the great long-term opportunity if you are patient >> anthony, where were the markets the last time the yankees were playing like this what was that? 11 out of 12 was it boring to watch 18 runs >> it is never boring to watch a new york team score 18 runs. 1998 you and i remember the long-term

capital management debacle >> that is the last time i wondered the last time the yankees meant the yankees. now it means the yankees again >> they're a great team this year they won 116 games in 1998 we went through a bloodbath in the market in 1998 the fed came through with the banks 24 short years ago you will not get relief from the fed. the administration wants to dampen the fed they want to work hard to kill the inflation. we will see, joe i like where we were. >> you talk about 2001 and the tech wreck that happened amazon would have been a great buy there. pets.com was not you look at the cryptocurrencies

and stablecoins which are neither stable nor coins you look for caution in some areas. maybe not everything here is amri amazon >> i agree we said that many will trade to zero. there will be 5 to 15 coins that we think are going to be use cases for the future think of the cloud in 2004 and 2005 people telling you we're taking your data and put it on our server a lot of people didn't want that in the beginning then they started to adapt look at the growth there i think there will be several layer technologies used in the future for web 3 as we further decentralize the internet and empower individuals. i believe that will happen certainly a lot of coins will

get wiped out like pets.com. it was a great idea, just a bad time chewy took over that market effectively. i caution people to buy quality and be unlevered and stay disciplined. recognize the bear markets happen they probably happen one out of every five years if you look over the last 120 years. if you stay disciplined during the periods of time, you got yourself wealthy. >> anthony, you go back to 2000. andiey kessler has a piece and e talks about what may be a barrage of class action lawsuits and effectively makes somewhat of a parallel or draws a parallel between 2000 and how many of the lawsuits ended upkeep -- that and keeping

everything else's which kept retail investors out of the market for 18 years. >> i did not see that article this morning i get andy's point there will be lawsuits and there will be a lot of consternation from people. ag again, you are going back to 2000 a lot of people said i'll never touch that nasdaq was a hot stove in 2005 from 5000 to 2,300 it was a debacle look where it is today if you stayed in with the current price decline down 30% from the highs, you are up 5.5% to 6 it augers people to be patient and see through it you mentioned the debacle and bit bitcoin. you have taken several billion dollars out of the market. the market is decentralized. imagine a $1 trillion wipeout in

the banking community and what the fed would have to do in response to that a decentralized structure as we know -- think of the american government it is sturdier than a centralized situation. people realize that. that's anwhy the future is buil off the properties the bloodbath right now and the uncertainty of the pandemic and higher inflation numbers and fed not coming to the rescue and i still think the future is bright you have have to see through the current market i predict the supply chain will be straightened out and inflation numbers will be better by the back half of the year you will say thank god i stayed in or bought into the treacherous environment. >> anthony scaramucci, i appreciate you joining us especially on a morning like today. thanks >> the dodgers, anthony, still

favored. then the yankees and astros and an mets. there could be a subway series >> hopefully you will be sitting there with me, joe >> i doubt you are in nose bleed seats. >> i have been a life long met fan. i have good seats. you can sit next to me >> anthony, thank you. the professor jeremy siegel will sit down to talk about inflation and where investors should put money to work reading the charts this should be good. katie stockton will hold our hand a little bit. she hasn't been that positive. we need to hear it >> scared you? >> secular bull. secular bull secular bull she will join us at the top of the hour. >> some day the sun will shine again. >> the longest day of the year is coming, becky

24 and a half hours. we'll go to break. check out the ang fastocks you are watching "squawk box" on cnbc (vo) this is a place for ambition. a forge of progress. a unicorn in training. a corner to build a legacy. a vision for tomorrow. a fresh start. a blank canvas. a second act. a renewed company culture. a temple for ideas.

and a place to make your mark. loopnet. the most popular place to find a space.

welcome back to "squawk box. we are watching the future there is more pain dow is down 600 points nasdaq futures are off 2.9%. this is many coulis coming afts on thursday and friday this is putting us on a path that the s&p would open in bear market territory at these levels. you will see the 10-year treasury at 3.25%. a lot of this spurred by the hotter than inflation numbers on friday you see the oil prices have been in red arrows. that pulled back slightly. wti is off $2. it is trading at $118.69

brent crude is at $120.21. we have jeremy siegel who will join us next and say what you should do with your money now. and we have jared bernstein who will talking flaginflation the administration's response. "squawk box" will be right back. ♪ ♪ alexa, play our favorite song again. ok. ♪ i only have eyes for you ♪ beep. beep. what up, nick? again, charles? i need to add to my cart for father's day. i think that's a different type of cart. grab those shoes and get in. coolers?

rack 'em and stack 'em. drivers. time to go clubbin'. dad joke? it's father's day. mamá, growing up... you were so good to me. you worked hard to save for my future. so now... i want to thank you. i started investing with vanguard to help take care of you, like you took care of me. te quiero, mamá. only at vanguard you're more than just an investor you're an owner. helping you take care of the ones you love. that's the value of ownership. this? this is supersonic wifi from xfinity. helping you take care of the ones you love. it's fast. like, ready-for- major-gig-speeds fast. like riding-a-cheetah fast.

isn't that right, girl? whoa! it can connect hundreds of devices at once. [ in unison ] that's powerful. couldn't have said it better myself. and with three times the bandwidth, the gaming never has to end. slaying is our business. and business is good. unbeatable internet from xfinity. made to do anything so you can do anything. this is xfinity rewards. our way of showing our appreciation. with rewards of all shapes and sizes. [ cheers ] are we actually going? yes!! and once in a lifetime moments. two tickets to nascar! yes! find rewards like these and so many more in the xfinity app.

we talked about using a 50 basis points rate hike, for the possibility of upcoming meetings, might there be larger than 50? 75 >> 75 is not something the committee is actively considering. >> that was fed chairman jay powell ruling out a 75 basis points rate increase after the may meeting but with inflation showing no signs of slowing down, will the central bank get more aggressive and will powle have to go back on his word? jeremy siegel, wharton school of bu business, we have a fed meeting coming up, will jay powell sing a different tune this time >> she he needs to take control of the narrative. my recommendation is he says we're bringing the july increase, don't forget he promised two 50 point increases, we will bring it forward to

this, to do 100, and then come july, i will look around and not promising another increase, we will be looking at the data, and that way, he won't be sort of contradicting himself, and just say bringing forward what the increase is, because i think, you know, with that inflation data that we got, which of course has not surprised me, i think there's more inflation down the road, he will, i think the market first would sell off, and then would rally and say the fed is finally doing what it has to do. >> jeremy, that's an interesting way of going about it, being able to not go back on your word but just saying you're pulling it forward by the way, this is something jim kramer is calling for right now, too, he thinks you need to see 100 basis points to put a little bit of shock and awe into the markets. you say that you think it would be a sell-off immediately before it gives the market more confidence what kind of sell-off you are thinking how steep and how long >> well, there's so many computers that are just linked to what the interest rate

decision is, that these computers are going to say, sell, sell, sell and others will say just a minute, we're finally getting a hold of this, and i could really see a turn-around that takes place after that selling point. you know, the fear, you know, it was a very interesting, the program you had at the bottom of the hour, at around 7:30, talking about the annuity value that is now going to be required when you get your 401(k)s, what they didn't mention is that annuity values on a given amount have gone way up, because interest rates have gone up. so even though your stock portfolio is, you know, down, let's say 20%, because that's what looks like with the s&p opening today, your annuity value is really not going to be that much different from what it was in december, because you are going to invest at that much of a higher rate. so that is going to be a very,

actually, that's a reason to open your 401(k) and say you know what, looking forward, i'm really not any worse off it's not, where stocks are down, the reinvestment rate is higher, and most of this decline has been the sharp interest rate adjustment, which means that annuity value, which looking into the future, has not dropped anywhere near the amount of your actual 401(k). that is something to remember when people get so scared about just looking at the value of the market, rather than what it is going to be, what is going to be the future returns i'm going to get from this market. >> that's good news if you have money that you have put into the market to work today but we are talking about the s&p losing 18% this year. i know it's down 19% as of friday it's closed from its all-time high, just this year down 18% and the worst year since going back to 1962 i mean that, and by the way, the

s&p is a better performer than the nasdaq, which is off by 30%. i think the big question is, these stocks come down, there's no guarantee that they're going to bounce back any time soon we may not see a v-shaped recovery like we've seen in the past. >> you know, it is interesting, i just look at where we were february pre-pandemic, february, 2022 and you look at today's open, it is 12% higher than it was at that peak, which was an all-time high, and interestingly enough, the consumer price index is 12% higher, through history the s&p has beat the cpi by 4 to 5% a year so really, it is way below, so don't forget in the long run, the evidence that we will overcome that inflation, with the stock index, it's lagging,

and historical performance, i think definitely even though there is more inflation, we're more than halfway through, really, it looks like we have 12%, 10% inflation, since the pandemic, we really had about 15, if you did the housing prices, it is actually positive, we're most of the way through and the s&p has lagged greatly, with historical performance against inflation. so yes, there may be down side listen, as we all know that fear of recession, because of the timing, one year drop in earnings, but let me guarantee you when this is over, the s&p will jump ahead of what the consumer price index is, and that's always the way it's been historically. >> professor siegel, let me just say you, you are very bearish recently but this is the most optimistic i've heard you sounding and maybe that's a smart lesson for people, maybe

when things look bad, it is a much better way to buy. >> he used the "g" word. guarantee. >> we're toying with that 20% on the s&p. and don't forget we did have a 35% decline in the s&p from the pandemic high in february, through march, and that it was short, but listen, no one knew what was going to happen at that time so you know, we had bigger shocks in the past than we've had so far there may be more, you know, another 5%, who knows, there may be another 10%, but that means for me, moving forward, that just raises the return on the market looking forward hold in there, if you've got cash, begin to deploy it, you won't be sorry a year or two from now >> jeremy siegel, thank you. good to see you. >> good to see you, today. when we come back, we will talk technicals d atanwh katie

stockton is seeing on the charts she'll join us next.

space. the boundary of human achievement. the new frontier. ♪♪ eh. ♪♪ it's not time to escape. it's time to engage. it's time to plant more trees. hoo! ♪♪ time to build more trust. time to make more space for all of us. so while the others look to the metaverse and mars, let's stay here and restore ours. yeah, it's time to blaze our trail.

'cause the new frontier? it ain't rocket science. ♪♪ it's right here. ♪♪ good morning and buckle up. wall street looking set for another wild week ahead. the s&p poised to open in bear

market territory this morning. and the fed is in focus when investors want to hear from jay powell and company this week, here's a hint, the stakes are high plus, as rates rise, tech continuing to tumble we will talk to top money managers where investors might be able to hide if you can as "squawk box" begins right now. as the final hour of "squawk box" begins right now. good morning, welcome back to "squawk box." here on cnbc the nasdaq market site in times square, i'm joe, along with becky and andrew, the nasdaq is like ground zero >> here we are. >> for everything that is happening. let's get you caught up. here is where everything stands, from the record highs. there's where we are this morning. down 91, down 570, down 342.

as far as from the highs, the dow is off 15% now the s&p is off by 19%. not yet a bear but it would be today, if it were to close where we're indicating in the pre-market the nasdaq down 30%. and it will be 30% and change if it holds on to these losses. check out some of the morning's biggest s&p losers, take a quick look, news corp, and generac, kind of interesting, individual, advanced micro, ipg photonic, the best performing s&p stocks at this hour, interesting, too, you can see duke relate, the nasdaq, corteva, booking holding, the nasdaq's biggest losers this morning, kind of a weird array, but there's zoom, zoom video, and energy stock workday and walgreen's boots treasury yields, part of the problem, or part of the issue, i don't know if it is a problem, 3.25 3.27 on the 30-year in fact.

and 3.269, might as well call it that and some inversion earlier today. and acting just like a nasdaq stock, maybe not as bad as some nasdaq stocks but bitcoin below 24,000 at 23,700 beck >> mike is here, from the new york stock exchange, and mike, this kind of focuses people, when you see losses on top of losses, on top of losses, with not much relief in sight not from any market, either, whether you try to hide in treasuries or try to hide in crypto, it is not working this time what does this tell you? what do you see? >> in a lot of ways, an unwind of what we got last year where you kind of couldn't do much wrong, and now you have this cascade lower. take a look in context where the s&p 500 now sits with the pre-opening move here, down to 3800, the s&p 500 index fund, over the past two years, and basically gets you back to early

january levels, 3800 or so, it is where you got to, the train-day low back on -- intraday low back 3810, and for all intents and purposes, try to get through it at the open if it skays this way a lot of the work now, has it finally been overdone? if you look at valuations, i think we migrated to the fair value zone and that's if earnings hold up so it has been mostly about financial tightening, compressing valuations, up equities, and people wondering what ultimately the fed has to push rates to, and that's been the radical revision over the last, you know, four days or so, especially since that cpi number came out take a look at a couple of economic bellwether sectors that everything at the beginning of the year thought were well-positioned because of rates going up and a strong and reopening economy, transports and banks, basically matching one another, all on this path down here and clearly the market is bracing for a worse economic outcome, not just about what the fed has to do, but how close that gets us to recession.

the big difference, historically, between once you're down 20% in the s&p and in terms of whether it gets a lot worse from there or not a lot worse is a recession on the horizon, and 1987 is an exception to that, you had a bigger drop without a recession, but you got to keep that in mind take a look here at the two-year note yield this is where it is all going on here is the fastest moving maturity of treasury yield that is pricing in what the fed might have to do and gone vertical here as you can see. 3.2 on the ten year is what gave the stock market a little bit of trouble, a lot of trouble in late 2018 and whether that threshold is a pain point is another question we will see here are we getting washed out? are we getting oversold? i would say after we open this way, if it gets sloppy, you're getting there, toward those levels in late 2018. we'll see if that is enough. >> mike, thank you if there is anything that you're thinking about crypto at this point, just watching here what we have about cellsus for people who don't know, celsius is this

lending program for cryptocurrencies, lending company for cryptocurrencies that is now not letting anybody take their money out of it so it looks like a bank, a run on a bank, not backed by the fdic, creating problems throughout the system. >> and real cash, not quasi-cashes, whether instruments like that, at a time when we said two year treasuries are 3.2% so why do i need to play these games with some kind of highly engineered crypto which is like cash in good circumstances and i think it is an amplified version of what is going on with some of the more speculative parts of equities at a time when you are re-pricing. >> i think celsius was promising returns or yields of 18%, which sounds too good to be true mike, thank you. >> joining us now katie, founder

and managing partner at fair leaf strategies, katie, we were talking about something, i don't know if they're predictions really, but reading the charts and forecast, but after what you thought might be a respite, you talked about the 3500 resistance, i'm sorry, support on the s&p and then eventually 3,200. it looks like we're testing 38 today. is it happening quicker than you thought? and could we get the ultimate low before the fall? >> i would say yes, it definitely is happening quicker. i thought we would push out of that consolidation phase last week and yet we saw quite the opposite, to get the minor intra-day support, and with that breakdown, just one below, we saw the acceleration to the down side, and that of course is indicative of what we're in, which is the bear market so it is happening fast. as it often does, and that does indicate that perhaps the low will be quicker than we also

expect it is also the case. and yet we want to respect the down trend for now, the momentum is to the down side, across intermediate and long-term time frames and also deteriorated of course for the short term here and now the s&p 500 is poised to break that 3815 level. for us, we required a couple of good weekly closes below and suggesting that we have a confirmed breakdown, it does appear likely, and as you mentioned, in the next one, it is roughly 3,500 and beyond that, about 3,200. the breakdown would actually target 3,200 but that 3,500 is an interim level if it is a strengthening trend from there, then we will respect that. >> i wonder whether that gets us to august or september, and a brief stock, a 3,500 and then maybe a bounce from there and then slow move lower down to that eventual low. the vix is troublesome and we

pointed it out, that it is indicating the fear that you would normally see at a sustainable bottom you have done some work on the vix as well. >> right, so the vix will be used as a transactional gauge of market sentiment and when it comes off its lows, of course, adjusting that fear, it is increasing, basically, we see it, obviously, it's spiked with lows in the s&p 500, there is an inverse correlation there, that we're very respectful of, and yet it has been relatively subdued considering the down side that we've seen, and it almost feels like folks are resolved to the fact that this down trend is upon us and will continue and we expect that the ultimate low for the s&p 500 will occur much higher than current level, the vix itself has had some resistance of roughly 38 on the chart, so just based on previous highs. so sometimes you'll see a short-term move, a stall, there and then it presses the re-set button but it undeniably, we are in an

entire volatility cycle and that is something that i would expect to stay with the market until it does bottom. in your point, time frame, august to september, to see the september time frame and maybe into october, in terms of capturing a market low and our indicators are getting over sold on the long term basis to mike's point and it will probably take months for them to really turn higher and that's when we get excited about the market we think that might require some kind of series of re-tests, as opposed to a proper v bottom >> pandemic lows in the markets, like the s&p, what is your market for the pandemic low, 2,300, somewhere around there? >> oh, gosh, i don't expect anything - >> no, i know, but why why do we double during the biggest global health scare in 100 years? what about the nasdaq? the nasdaq was a beneficiary of

a lot of stimulus, from both the fed and from what we did with, you know, before the pandemic, all of the fiscal, for the pandemic, all of the fiscal measures that we took. is that we attribute to the move in the nasdaq. we loved all of those stocks, the ones were that were doing well as we were closed down. is it all, is it all just easy money? is it all played forward how much of it do we give back on the nasdaq? >> and a sizable replacement would be 61 -- so that would put us at that 3,200 level for the s&p and about 10,600 for the nasdaq 100 and the charts will never answer the question why something happened, but we did see our performance from, outperformance from the meg caps, and when they started to lag, that's when we thought it was problematic for

the market, and market participation just wasn't where it used to be. so that was indicative of what we've already seen now it is matter of trying to determine when risk is now on our side and unfortunately, we don't have that at this stage and this morning, we see bitcoin having broken down from its consolidation phase, and of course, it's much more dramatic on that front, and you have risk assets, all day around the world, and so when you see that kind of collective global minor breakdown, we take issue with that, as something that tells us to be, you know, reduced in our exposure, broadly speaking >> what's the technical outlook now, with support levels for bitcoin? >> unfortunately, to the 27,200, it looks like it is broken decisively, so the next support is roughly 19,500. and it feels like a big gap to that level, but that's sort of the nature of these higher beta asset classes, and below that,

we have a replacement level of roughly 18,300 so we're putting support in that sort of wide range, 18,300, to 19,500 for bitcoin. and we do think it is doable, as part of the cycle. and it would be a natural place for a bond to be discovered. >> and it would be a bottom that would hold up? >> i think so. i think that is solely based on the indicators that we track if you look at broader oversold measures, they are at that point where they should be coming off of the long-term oversold rating. >> and the 10-year, 3 1/4 pretty quick. what's your ultimate objective there? >> it is a resistance level from 2018 so we have been expecting the selling, that's based in part on the market indicators so that would suggest we're seeing more chop and that means short-term volatility, to the outside, like we're seeing, and not to the down side of the times and we're looking at more of a neutral

unfolding here and if we do see a decisive breakout, we would respect that and it that would be a couple of decisive weekly closes above the 3 1/4 level and put the next resance around 4% and that is going back to the 2009 highs >> katie stockton, thanks for the update >> of course >> all horrible numbers but thanks for the update. breaking news. something else on cryptocurrency here the ceo of finance just tweeting that there is a temporary pause of bitcoin withdrawals on binance because of a stuck transaction causing a backlog. he said it should be fixed in about 30 minutes >> the funds are safu. you go to the urban dictionary for that what is that it doesn't have anything to do with snafu and what that stands for. >> or fu. >> secure asset fund for users,

emergency finance fund to protect user funds >> binanec is the largest in the world in terms of trading volume for cryptocurrencies and this is adding to concerns after what we've heard from celsius today where they're not allowing anybody to withdraw any of their funds, the different situation, and binance is not what celsius is doing, binance is saying because of a trading backup that they think will be fixed in 30 minutes. we'll see. it's 8:15 right now. we'll see where things stand. >> i think the time fell out i don't think i'd use that >> not today. >> i'm looking, i'm learning more of the secure asset fund for users program. >> if it is what snafu stands for, without the n. >> let's spell it out. i know it's twitter. >> imo >> is this just a temporary, i mean is this, if between celsius and whatever is happening right

now is, there so much downward pressure on it, that this is, i don't want to say a temporary situation, i don't want to use the word transitory but is that what this is >> the binance ceo is not what hey heard from celsius. >> at this point, it is different. >> just to not create any additional panic they're saying it's backed up. and they think it will be fixed in half an hour. so we'll see >> and we'll know in a half hour. >> we'll know. that's what i said, 8:45 this morning, we will know, it will be a half hour and we will see where things stand bitcoin this morning is down, more than 12%, 24,148. >> 23,500. >> lower >> but we will continue to keep an eye on this obviously, some huge pressure. people needing to get access to some of these funds to pay margin calls in some situations. all of these markets are linked. >> yes >> and this is pretty difficult times. >> coming up, we'll continue to talk about all of this from wall

street to main street, everybody is talking about inflation so what if anything should the biden administration be doing to fight the surge in prices? we will ask the white house economic adviser jared bernstein, joining us from the white house next as we head to a break, check out oil prices this morning, wti crude, it costs $118.86. you're watching "squawk box. only on cnbc feelin' the sque we're having to get creative. find a new way. but birthdays still happen. fridays still call for s'mores. you have to make magic, and you're figuring out how to do that. what you don't have to figure out is where to shop. because while you're getting creative, walmart is doing what we always do. keeping prices low for you every day. so you can save money and live better. ♪ (vo) while you may not be a pediatric surgeon volunteering

your topiary talents at a children's hospital — your life is just as unique. your raymond james financial advisor gets to know you, your passions, and the way you give back. so you can live your life. that's life well planned.

we've been streaming all day from every room. the power and speed of this super-sonic wifi from xfinity is incredible. mom! mass speeds was my idea, remember? get minion net, with speeds of up to one minion bite per hour. [ low screaming ] but that was an epic fail.

with xfi we can stream, share, swipe, like... impress your mom with super-sonic wifi. it's unbeatable internet for a more unbeatable gru. i mean, you. all right, everybody, welcome back to "squawk box. let's get a check on where things stand this morning. right now the dow futures are indicated off just over 500 points this comes after losses on friday of 880 points and losses on thursday of more than 600 points so you add those up, and things are really starting to look like some serious losses. s&p 500 futures are indicated off about 82 the s&p last week was down by 5% the nasdaq right now indicated off by 310 the nasdaq last week down by 5.6% so we will see where we get towards the opening bell by the way, with these levels, the s&p would open in bear market territory, down by more that 20% >> meantime, as inflation soars to its highest level in over 40 years, the biden administration is struggling to calm price

anxiety across the country, joining us with more, is white house economist jerry bernstein, a member of the president's council of economic advisers jared, good to see you this morning. we've been talking to members of your administration now, including janet yellen last week, and there are steps that people can take, but they are limited, is there anything new on the horizon at all? >> well, when you make fighting inflation your top economic priority, which of course is what the president has been forthright about in recent commentary, there's always something that we can do, and we'll keep doing it. you saw the president out at the ports of l.a. and long beach last week. we've done a lot to help throughput to have records number of goods through the ports and having shelves stocked about where they were pre-pandemic, but that doesn't mean we can stop with those activities, we still have the supply disruption task force, we will continue to push there.

there's a lot we need to do with congress this is really a time for bipartisan action. bringing down prescription drug costs, clean energy tax credits, to help reduce the cost of utilities, and child care, and elder care, and shipping, there's a legislation on the docket to help reduce shipping costs, and if anyone wants to join us, and work on that, obviously, this is the time with the president's message. >> and on the screen right now we have s&p set to open in bear market if you're the white house, is that a good headline this morning for you? >> well, i don't think look, first of all, we don't really pay too much attention to daily wiggles, but i think the broader trend is of course something of great interest to us in two ways. first of all, while most stock ownership is concentrated among the very wealthiest, i think 80% of the value is held by the top 10%, there is still a lot of people with retirement accounts,

so we have to be mindful of that but i think the key thing here is from the perspective of the federal reserve. if you look at tightening financial conditions, which are imbedded in these equity returns, if you look at the 10-year yield, on the treasury bond, that's 3.27, if you look at the slowing on the housing market, where you see cooling there, all of that suggests that the fed's actions are taking effect, and that's helpful in terms of cooling off - >> but in terms of that transmission mechanism that the fed has, it's going to lower the stock market, it may lower the housing market what do you tell people who own those assets >> well, first of all, if you are a homeowner, your net worth is very much accelerated even with recent declines. and i think that's going to remain the case. given the rye rise in home prices but i think the broader picture

there is what is most important. we talk a lot about economic head winds but there are some important tail winds as well and one of them is just the aggregate level of knot, which is highly, net worth, which is highly elevated right now even with the asset pressure, similarly while interest rates are rising, and still quite low, if you look at household spending on debt service, it is quite low. and this is what we mean when we talk about positive balance sheets as you may remember, i was talking about it a lot back then, the great recession after the housing bubble burst, was very much deepened by the terrible condition of business and house balance sheets that's not the case right now. >> we will hear from fed chairman jeremy powell later this week. do you think he and the fed boxed themselves in or dropped the ball in terms of locking in this idea of 50 basis points do you think that there should have been more room and is there room to go to 7 a -- 75 or

possibly 100 given the inflationary numbers we've seen. >> if you listen to the president's three point plan on friday, the inflation, he put fed number one for a reason. it is the primary inflation fighting institution both here and globally and inflation very much exacerbated by putin's war, it is in fact a global issue, who so we need a fed that is independent, and i'm not going to get into granular prognostications what i will say is that that, taking off before, i think it is really important for the fed i think going to the job market, where the president talked about job gains slowing as we settle from a breakneck pace of growth to one that is more steady and stable and we have seen some deceleration in wage gains that is critical for the fed it is something they're looking for. i think when they look at the kinds of indicators i just mentioned, the housing market, the 10-year yield, the labor market, they are going to see

that their actions are taking effect, and that's very, very important for them >> jared, to the extent that the white house missioned this in terms of the -- missed this in terms of the inflation story and i know you said we missed it before, so we're not going to relitigate that, but what i want to understand is what do you think the lesson of it was and is to the extent that the public wants to know that there was a lesson that you've learned it, and that going forward, you're going to approach this differently. >> well, that's just such an important question and so much better than the, you know, than the gotcha stuff. so thank you for that. i think the most important lesson is when you're living in an uncertain world, when people were making the predictions that they made, no one knew about delta and omicron, no one knew about putin's invasion of ukraine. in a world with geopolitical, economic uncertainty, what you need is a white house that understands the depth of importance of insurance policies now what do i mean by insurance?

i mean a rescue plan that gets shots in arms and checks in pockets and making sure it is large enough that it has resources that cities and localities can use when uncertain things that couldn't have been seen pop up. >> i want to know if there is more to the answer and the reason i say that is, you know, ukraine, covid, obviously, have exacerbated the situation, but i think each if you were to take those, both of those pieces off the table, we would still be having an inflationary story >> absolutely. because, well, first of all, we're having an inflationary story in every advanced economy in the globe, and in fact, inflation is historically elevated everywhere. so it is certainly not just one country's fiscal or monetary policy >> but then the question is, what did the white house miss? and what is the lesson of that >> i don't think the white house missed much at all in the following sense. we have a team, and i know

you're pushing in a different direction but i think looking forward this is what is what is most important. >> we have a seasoned team of people led by a president believes we have to do everything, we don't sit on our hands and hope these forecasts for inflation growth and stabilization come true. i have never done more in my career as a political economist to help on the supply side and never thought about dwell time and containers in the ports and head down, continue to do all we can to combat inflation and the fact that we have a highly competent group to work on things and rather than spin things and who got what right at what time and our point is to move forward and try to do everything we can to help households which includes by the way helping with congress and there are participate actions right now we could take tomorrow to alleviate prices than is the time for that cooperation. >> and finally ask you about "the new york times" report, that there are some people, potentially inside the white

house, that are hoping that your boss, the president, president biden, won't run for a second term, you saw mr. axlerod quoted in that article for example. >> i will not get anywhere near. that and all i can tell you it is my great fort unto interact with president biden who i have worked with for a long time. he is as laser focused as ever in attacking his number one domestic economic priority, which is to ease inflationary pressures, on american households, while maintaining this very strong economic backdrop that sometimes get lost in the mix in this discussion. >> a heck of a need toll try to thread we appreciate it thank you, sir. >> here we go. coming up, some well-known wall street names may need some big calls on the s&p today we will bring you those names. also check out amazon, down almost 13% in the last week. and here's what i'm talking about, when i say here we go

we've got an update on the binance story as we head to a break. the ceo originally tweeted at 8:00 a.m. eastern that bitcoin withdrawals were temporarily paused because of a stuck transaction that is causing a backlog. lending out more than he had, i guess. and initially thought it would take 30 minutes to fix, however he just tweeted it will take a bit longer than the initial estimate he also said the issue is only impacting the bitcoin network and bitcoin withdrawals are still available on other networks, but the bitcoin ne network is the biggie. that's where a lot of this trading takes place. we will continue to update this, as we learn more more concerns about cryptocurrencies today, especially with the companies associated with, it and some of the exchanges bitcoin and the traiting firms that are out there, like celsius, all of this adding to concerns more. we are talking about bitcoin

price, down by about 1% this moinrng. stick around we'll have more in just a moment ♪ ♪ women have to overcome more obstacles to reach the top. it's made them fiercely determined and more innovative. just because they can navigate the obstacles doesn't mean they should have to. citi is committed to investing in opportunities for 10 million women globally by 2025. ♪ ♪

what's on the horizon? the answers lie beyond the roads we know. we recognize that energy demand is growing, and the world needs lower carbon solutions to keep up. at chevron, we're working to find new ways forward, through investments and partnerships in innovative solutions. like renewable natural gas from cow waste, hydrogen-fueled transportation, and carbon capture. we may not know just what lies ahead, but it's only human... to search for it.

box. we want to bring you up to speed on a few things that investors and traders will be scrutinizing as we head to opening bell on this market sell-off day first of all, what is happening with amazon stock? over the last four days that stock has now lost roughly 12%

of value since the highs that we've seen just over four days again 12%. and what that translates into is around $154 billion of lost market value and losing $154 billion of market value is like losing an entire advanced micro devices is just four days, so keep an eye on amazon stock, a big stock to focus on over the course of this trading day and of course the sell-off watching what is happening with some big calls from wall street with regard to targets and what the markets will do in the coming days and weeks. mike wilson chief strategist at morgan stanley says the growing evidence of slowing growth and the risk to earnings, we think the s&p is headed to 3,400 it would be implying a 13% down side from where we closed just on friday's session. that's mike wilson's take. and then david kostin, chief strategist at goldman stacks and the earnings side, if the earnings estimates for the s&p

moves to $225 a share, halfway to the recession scenario of $200, a 14 times price to earnings would bring the s&p 500 to 3,150 and by the way, that's down 19% from where we closed on friday so a big note out there from goldman sachs on the target for the s&p. and it is not just stocks we're watching also check on what is happening with high yield bonds. over the course of the last year plus, many investors have turned towards high yield and investment grade corporate bonds for an enhancement in yield and income versus treasuries we know how bad it has been for treasuries in terms of return, but check out over the course of the last few weeks, it has been a sharper move lower for this white line, which is junk bonds. concerns about the recession, the economy, and also rising rates, all factor in, but still that junk bond trade, relative weakness, something to watch keep it right here, more on the sell-off coming up, and not just the bond market, the stock market and crypto. we're back after this.

your record label is taking off. but so is your sound engineer. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire welcome to your world. your why. what drives you? what do you want to leave behind? what do you want to give back? what do you want to be remembered for? that's your why. it's your purpose, and we will work with you every step of the way to achieve it. at pnc private bank,

we'll help you take care of the how. so tell us - what's your why? ♪♪

welcome back to "squawk box" on cnbc. let's get you updated on where we are right now and that is with u.s. equities future at this hour, we're indicating down, about where we've been, a

little worse, a little better, you can see the s&p 500 indicated down 2% this morning the dow, it's 500 points, not even 2%. and the nasdaq down a little bit more, on a percentage basis than the others almost 3%. but this does follow the worst week that we've seen in the averages since january we saw it last week, accelerating on thursday and friday treasury yields are up near new, yields near up new highs, 3 1/4, and you can see an inversion between the 2 year and 10 year and still converted between the 5 and the 10 and the 30. as you can see and then oil is not trading higher, but pretty damn high 119. right? on the wti bitcoin, we haven't checked, we're hearing this interesting

stuff coming from binance, you say, the problem is, they said it is a problem, a backup in the trade that should be fixed in a half hour and they said that at 8:15. >> they said it at 8:00 actually. >> and then they updated by saying it will take a little longer but you know, noon would be much lowe longer, so we should note whether it is just what they're saying it is or whether there is something more to it, but after celsius and the issues with that, with the bitcoin lender or crypto lender, we're watching for any type of collateral damage, and it's unclear at this point whether you would call binance collateral, and we'll know soon enough, because if he says soon and then says a little longer than a half hour, what is a little longer than a half hour not a week, huh? >> let's hope not. also crypto has not dropped. we have seen it lower than this morning but i don't know if it is because you can't access it not trading. we'll see. in the meantime as russian forces continue to advance in

ukraine organizations around the world are sending aid to the ukrainian defense. one recent donation, nine 50-passenger buses for the ukrainian defense forces spent by the nonprofit spirit of america. joining us is howard buffett, the chairman and ceo of the foundation that funded the buss with $2.7 million in grants. howard, it is good to see you this morning i know you're just back from ukraine. you have spent a huge amount of the last several decades going to areas that are in conflict. what did you see in ukraine, and how does it measure up to what you've seen in other areas of conflict >> well, i've never quite seen anything like this in my lifetime we have worked in a lot of difficult places, including sudan, and congo, and i think that the difference here is that it's just indiscriminate shelling on civilians, it's millions of refugees, trying to

leave the country, and it is just really an overwhelming situation for the country, and i think that the aid that the u.s. has stepped up, i think the eu hopefully can do more, but i believe we've got to support ukraine in this fight, and it's a difficult fight for them >> we see pictures of you meeting with president zelenskyy there, and what did he tell you in terms of what they could use? we know they've asked for more weapons. but the devastation that is taking place in his country must leave them needing much more >> well, we've been working, as you said, we support spirit of america, and the purpose of supporting with the buses, we would normally never do something like that, but you know, trying to get civilians out of the east, back to the west, safely, trying to get supplies into the east is critical, so they're the only organization doing this, that we're aware of, and president

zelenskyy, he made it clear that they need additional support, but you know, we can't do anything that falls into the military realm, but we are feeding hundreds of thousands of people right now, we're providing the funding to the world central kitchen, they're doing an amazing job, and it is interesting, because normally, when we're in an area like this, we see a lot of different ngos operating, you see like, we would operate in places where you would see 30 or 40 different vehicles from 30 or 40 different ngos and the truth is the only ngos on the ground that we're seeing doing anything is spirit america and world central kitchen and it makes it much more difficult for us to operate because we need specific organizations that we can donate to. >> why is that there are so many less organizations that are operating there? this is a new conflict, there hasn't been people who have been ready to go on the ground, and

this is just the very beginning, with help on the way >> well, i think part of it is that, like we're looking at trying to support various things immediately that help them get the grain out, and our biggest single focus in the foundation, is food security and conflict mitigation, so it comes together in a way that we've quite never seen here in ukraine, but you know, when we're trying to get grain out, we're trying to get support to come in, to help us do that, and a lot of private companies don't want to come in right now, because they're concerned about what could happen obviously, to their employees but obviously if they make an investment so we're trying to fill the gaps where the private sector won't make an investment, but yet, it helps get things started which is what we always try to do, and so we're working, i did talk to the president about two different ideas, which he supports, 100%, which are two

different ideas to try to get grain transferred and moved out and the truth is you cannot replace the black sea, but you also can't wait to sit by and wait to see what happens so ithink the biggest challeng for us right now is getting organizations that will come in to ukraine and support the kind of work that we're trying to do. >> when you say get the grain out, you mean get the grain to the people or get the grain from the farms out of ukraine ukraine's the bread basket for europe and a lot of the problems with inflation that we've seen in food and energy and elsewhere is because of what is happening in this region right now >> ukraine provides, i think it isabout 50% of the food aid that the world program has in about 15 different countries so if you think about those countries, you're going to see several things happen, one is prices have already skyrocketed, in those countries, it is going to continue to increase, you're going to see people go from

hungry to starvation, and that always brings instability. so this has a huge long-reaching impact in many of these countries, and it's not an easy one to fix i mean they're coming into a wheat harvest pretty soon, and they don't have the ability to store, it so we're working with the government on temporary storage options. all of this grain needs to get oust country at some point somehow. but it is just, they have become so dependent on the black sea over the years, that they've not developed their rail system, and it has really created a backlog in terms of how they can move things so those are the things that we're trying to, do we're trying to find what are some of the quick fixes, what are some of the things that we can do to at least make some progress i mean there's no way you can make up for the black sea. >> howard, you're not just a hands on philanthropist, you're also a farmer in des moines, i wonder if you could talk to us a

little bit about the food inflation we've seen here in the united states and how things are kind of shaping up for this season and what you anticipate in terms of food inflation here this year. >> well, i watch the corn and soybean prices every day, and of course, they've gone up quite a bit, but on the farm, it's gotten really difficult. i've never quite had the difficulty i've had this year in terms of getting fertilizer, getting it delivered, the prices are higher than i've ever paid i do think we're on track for a pretty good crop this year i think one of the things usda could have done much quicker was release the rp acres and try to put in a formal program of how to replace some of the wheat that the world is going to lose from the reduction in acres and grain coming out of ukraine. they're very slow to do it they don't have a real formal program in place which i think they could have done

and they certainly should have required conservation measures when they did release some of the crp acres. so i think we could be doing better here in the united states, both to support our farmers lut but also the people who will surfer not getting the full crop out of ukraine this year and probably even next year. >> what are crp acres for those of us who aren't in the know >> crp, conservation reserve program, there is about 24 million ache ners the conservation reserve program they're acres that are put aside, the government accepts them, they enroll them into a program, and many of those acres can be farmed, but they're not farmed, using conservation methods, then you can do some environmental damage and so i think if the usda has a will, it's not too late, to put in some very clear measures on

both how it is to be farmed, how it coming out of crp, and also how the grains can be used, i think we could offset a small portion, but a reasonable portion of the wheat that we're not going to see coming out of ukraine, and probably not out of russia, at least not to the countries that are our allies. >> howard buffett, just back from ukraine, and also telling us what is happening on ground here in the united states. howard, it's great to see you. thank you for your time. >> thank you, becky. good to talk to you. we've got a lot more coming up this morning, jim cramer will be joining us in just a moment live from the new york stock exchange on this morning's global market sell-off red across the board we're ckba after this. you're watching "squawk" on cnbc . (manny) yeah, that's what i do. (vo) with 5g ultra wideband in many more cities, you get up to 10 times the speed at no extra cost. get verizon business unlimited from the network businesses rely on.

think he's posting about all that ancient roman coinage? no, he's seizing the moment with merrill.

moving his money into his investment account in real time and that's... how you collect coins. your money never stops working for you with merrill, a bank of america company. when you need help it's great to be in sync with customer service. a team of reps who can anticipate the next step genesys technology is changing the way customer service teams anticipate what customers need. because happy customers are music to our ears. genesys, we're behind every customer smile.

let's get down to the new york stock exchange. jim cramer joins us now. i n remember so many times, jim, where the fed is like, if you go, let's say you go 50, that's going to be bad because it's not enough. if you go 100 to try to do what's right, everybody says what do they know that we don't know this time it might be different. we all know. so we'll accept it maybe, if you do 100, but maybe

we don't have to worry this time in the case that they're p pani panicking. maybe they realize there's an issue. >> look, i think you're definitely right i just question whether the first day people don't say, oh, my god that group of people who you spoke about who said what do they know, and then the reaction will be, well, we have known they have known it, and this is them trying to stop it, which means the two-year would be a buy here so i just don't want to jump the gun. maybe they're going to say they're going to double the amount of sale from $95 billion to, say, $200 billion of their treasure chest that could move rates up substantially. >> is 75 kind of the compromise number, jim? >> i think so. look, remember, they have to deal with the fact that they recommended the 50, so 100 is hard to jump through they also ought to add a couple meetings so that it's every

month so that they can review it that's something i would do immediately because they can't wait a couple months, as you would find a couple times in the fall >> we have used that analogy so many times, if you have some type of infection, you don't ease in with the antibiotics jeremy siegel was saying it, too. do the 100, and maybe you don't do another one >> i think he's right. i have been calling for 100. i'm calling for '94 like situation where they keep hitting, that's what they have todo, and jay was wrong to say it would only be 50. that does set up for 75, but at the end of the meeting, he has to say we'll do 100 if we have to let people freak out and then when it happens we'll be okay. >> jim, are you concerned the vix indicates that people just -- there's not enough fear at this point? >> i think there should be a lot

of fear, realize the crypto situation is -- this is crypto monday i think people are just frantically trying to get out of crypto i don't know it's happening very quickly. really happening quickly, wow. >> does that change your view on crypto, either as a buying opportunity or selling >> well, i think a lot of places are trying to figure out how exposed they are, and i think that this is kind of day one of the reckoning. so i think, andrew, yeah, i think people are going to freak out. look, there's a lot of schadenfreude, saying i have got out, but some people come on air and proselytize and feel like the rainmaker. >> i think this is new thanks, jim, we'll see you >> absolutely. thank you for the time >> so he's tomorrow. we'll have him tomorrow, jim tomorrow on "squawk box," don't miss mikenovogratz, who says yo

should still be buying >> i couldn't tell whether he was buying himself he said if he had cash, but i don't know if cash has come into the firm let's talk tech stocks they have been getting slammed as well. joaning us is the founder is flex it seems like the knife is falling, and the question is whether you want to catch it this morning or let it go. >> well, they always say be careful trying to catch a falling knife because you'll get cut. so i think what we do see right now is just as jim was saying, what the market seems to be indicating is they want some clarity on inflation being under control. the general sentiment has been the fed has reacted too slow, and now i think the market will be in a little bit of a reprice mode if they do see 75 or 100.

so i think we have to see what happens with the fed we didn't get had news we wanted last week with inflation >> so what were you doing this morning? >> right now, i think just waiting on the sidelines you know, i don't think there's any real reason to move right now. i always look at tech stocks and thing about the fundamentals within the market, especially around what ctos, what cios are doing in large enterprises and a lot of those fundamentals remain the same the general cerl, looking at the macro environment, there are risks that have heightened certain needs, especially around areas like cybersecurity, continuing to build out infrastructure for the remote work that's required now that the genie's been out of the bottle since coronavirus but look, you know, we know also what happens with valuations and the public markets on tech stocks when interest rates go up higher cost of capital

those companies are values looking ahead on revenues. not necessarily for the value they bring to the table with earnings so we're going to continue to have to see what the market says around inflation and interest rates to kind of understand where it needs to reprice. >> do you have a take on bitcoin and crypto as we're looking at it under $24,000, living in the $23,000 range? it's pulling everything else down or it's the opposite. >> look, what we have seen is that crypto without question has been correlated to the market moves. correlation doesn't mean causation, but you know, we're really not big on trading in crypto we hold some names that kind of do that infrastructure work. but i think we're seeing carnage across the board right now until we get the clarity that the market needs >> you know, we had jeremy siegel on earlier this morning he said look, if you buy into this market, a year, two years

from now, you'll be a happy camper you think that's right >> it depends on where the entry point is and what the strategy is look, i am a firm believer that within big tech, those trends will continue. i think we have to unbundle the faang and really get down to the fundamentals of these companies, so we do like alphabet we do like amazon. we do like microsoft i think we'll see a little bit of headwinds around alphabet right now in terms of the advertising slowdown that could happen, and that might pull back although i would say that with alphabet in particular, they have other levers they can pull on the expense side to better manage earnings. amazon will continue to grow based on the growth of e-commerce and the strength of their business around the cloud with digital transformation. and then i would say look, when we think about microsoft, microsoft has proven to be a strong bellwether. they have been able to be

resistant to the other moves with tech stocks, we'll see. enterprise stocks are also interesting. those could be good long term. >> we're up against a hard break. we have to jump. it's bib a heck of a morning appreciate it. >> twitter is even noticing, stock market something, make sure you join us tomorrow. "squawk on the street" is next good monday morning. welcome to "squawk on the street." i'm ckeept ania >> a lot of moving pieces today. the yield curve inverts, bitcoin breaks support, and we awade the fed decision on thursday our road map begins with inflation fears and a stock sell-off futures point to a sharply lower open >> coke ce