it is friday, june 17th, 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 andrew is off today. as joe mentioned, nowhere near gaining back what we lost this week or yesterday. the dow indicated up 230 points. s&p up 34. that comes after stocks tumble yesterday. sending the dow jones industrial average below 30,000 for the first time since january of 2021 the dow was down 2.4%. it was worse for the s&p which was down 3.3%. the big loser was the nasdaq it was down 4.1% yesterday

in fact, if you want to look at where the index stands from the record highs, dow is outside bear market territory. it is down 19% from the january high that is a big drop that was down 14% at the beginning of the week. s&p firmly in bear market it is down 23.9% it was flirting with bear market territory a week ago nasdaq is down 34.3% off the record high. treasury yields have shown improvement. they have gone down if you are looking to buy a house or do anything else. equity has been keying off this. 10-year treasury at 3.2% 2-year treasury at 3.14% if you are looking at good news, check out crude oil. crude came down yesterday. the biggest loss since may 9th for the dow. we are up over $1.

11 11 $118.72. for consumers, you want to see the prices come down the dollar has also had its worst week since march of 2020 you remember that. it was as covid was just hitting in the united states all reaching back to the worst levels since the beginning of the pandemic >> we are supposed to reopen for easter it didn't quite happen i'll not check crypto. i love ron i don't think about him as a market timer i think about him as a futurist. someone in 1982 was able to identified trends today and stocks benefit from the trends as a result, he is a gazillionare he goes to talk about how his

sons got in the business 20 years ago. since then, you had wars, internet bubble, financial panic, covid panic, commodity inflation. the stock market in 22 years has doubled. due to internal rate on that it is nothing. despite economic global, growth it has been accelerating technology and biology we never had a better p qualityf life we are making life better. all of those things and we doubled. tell investors now they have the same opportunity he had when he founded baron capital in 1982 and the dow was 880. anyone you can, get them to look at this as an opportunity. >> you may have to have a very long view on things.

it is not saying it will come back tomorrow. you will not make money overnight. people have gotten used on to that >> it is okay. he actually followed it up with something else his co-founder agrees with him >> it is true. you have to be invested in markets over long periods of time to make your money work it is how things happen it doesn't mean if you put money in how, it will not go down from here if you have a long-term perspective, and you put money in -- i did put money in the s&p this week. it is money i don't need right now. >> come back >> immediately >> if you live to be 100 >> i don't know if it comes back immediately. you don't want to leverage you don't want money you need today. >> you can't call direction. you can be right about one or

the other. he mentioned 1982. 800 on the dow we called jeremy siegel calling him a permabear >> jeremy is not always a permabear. >> long-term optimism. it is something that jeremy has and warren has over the long haul >> it was a good piece you need to remember what reagan new about economics. it talks about what happened at that point the author said we're in a similar period old, mothball progressive ideas of how to approach things surged what reagan did back then lasted

40 years it wasn't just volcker it is giving money a place to be treated well you may not have to raise rates to cause a recession like volcker. it would happen naturally. cuts capital gains and move forward. let's go to crypto it's down again today for bitcoin. below 21,000 a wild week. down 27% in the last seven days. worst for ethereum down 34% in the last week. check out the performance this month from some cryptocurrency stocks micro strategy is down 39% in the 8:00 hour, we take you live to miami to self proclaimed capital of crypto. we will see how the city plans to weather the crypto winter i asked if it is december 21st

or february or groundhog day >> winter is coming like "game of thrones." is it march? late march december 22nd? difficult to say i'm still thinking about ron baron. i'll hang on to that it's friday. by the way, ron has been right for decades. >> it may take a while >> he is somebody who talked an lot about how inflation erodes the dollar if you keep a dollar in the bank and you are losing value over time if you are at 2% flinflation, i is worth 90 cents with inflation. >> is the money supply and

growth in the '80s was blamed for too many dollars his point, reagan with the supply was huge, but the dollars were treated well. inflation plummeted faster we are at higher levels. interest rates plummeted i remember that one. all my genius clients didn't want to lock in 13% tax-free >> wow that was an option >> triple tax-free state, local and federal 13%. 20-year muni tax-free 13%. they wanted floating they got floating. it floated down to 3%. you can imagine how much money you would have made. it came down quickly then how long was inflation gone 40 years like i said, the author made a point we didn't need the

recession. volcker let things go and create an opportunity for investment. >> we need to address inflation quickly. >> his point is make the private sector attractive for investment and things take care of themselves dollars get soaked up. >> a lot more dollars now. a lot of dollars out there right now. new comments from president biden on the state of economy. telling the associated press that recession is not inevitable he pushed back on assertions from republicans that the covid aid package is to blame for the inflation hitting 40-year highs. the jobs market is very strong right now. we hope that continues. >> you keep hearing about layoffs. >> tech industries in

particular despite the gains, the s&p is poised for the worst week since march of 2020. joining us now is lisa erikson and michelle girard. why don't we start, lisa, with your take on where the markets stand. you listened to what joe and i have been talking about. you are on ron baron's side. >> long-term we agree that stocks make sense for portfolios with that broader horizon. in the short-term, we are cautious we look at what is going on macroe macroeconomicsly and we see growth indicators in that growth territory. there is slowing across the economy. on top of that from the policy

perspective, as you mentioned, we see that fiscal stimulus coming off as well as certainly the fed is moving to really tighten financial conditions in the economy. those are risk factors that really make us a little bit more defensive at this time >> michelle, the president saying that recession is not inevitable at this point what do you think? >> i guess inevitable would be too strong of a word it certainly, i think, an even bet. we don't have a recession officially forecasted in our numbers. we all acknowledge it is a possibility. we marked our numbers down i don't think it is a 2022 story. we felt this way all an lalong. the economy has a good deal of momentum you are still seeing an unleashing of pent-up demand joe, you were talking about people flying. you have people who made plans

to travel over the summer. they will go through with that i think it really comes to more of a fruition which shows itself later this year. the holiday shopping season. next year, what additional plans will people be makmaking i think 2023 is where the recession question becomes more clear. >> michelle, i know the fed is paying attention to the surveys out there. the university of michigan survey those concerns and people worried. we saw retail sales where more spending went to gas and food instead of the discretionary spending people are talking ourselves into the recession are we talking ourselves into recession or is this a job market that continues very strongly you have people worried that all an of the money they made and wages and gains they have seen are eaten up by inflation. can they get higher pay from

employers? does it put us back in the wage inflation cycle? so many moving pieces. >> there are it is true that there is not necessarily a direct correlation with how consumers feel and consumer confidence and how they spend and what you were saying about talking ourselves into recession. i need people tovolatility they know it can't be good that has to raise cautious on the part of individuals. ultimately, i think it comes down to the ability of con sumes to spend which is driving the sentiment which they don't see their financial situation as positively they inflation. they feel it more on gas and food they don't have the ability to spend on discretionary items that is what creates the

greatest risk more than the perception of what is going on until we get inflation down and see relief on that front, you know, that is going to be the greatest risk the consumer faces. the inability and spend away from the necessity at the pace they have in the last couple of years years. >> lisa, what do you tell your clients with the panic they see? >> one of the areas we find of interest is global infrastructure the reason for that is a combination of sectors that all are benefitting from trends in the economy. one area within global infrastructure is utilities. that is a more defensive play with a steady eddie earnings growth in the slowdown economy another big sector within that is mid stream energy which is benefitting from what is going on in the strong demand for

energy then there is a couple of areas like transports and communication sectors that in this type of environment with a little bit of reopening and yet more of a risk off bias and that should do well going forward. >> quickly, you are the third person in the last 24 hours that recommended global infrastructure is that a crowded trade? >> an area from the longer term structure has been picking up interest on the institutional investor side it is an area that is not frequently talked about among other investor types certainly that's very good that there are others beginning to see the value. we do not see that as a crowded trade at this time >> lisa and michelle, thank you both >> thank you coming up, recap of everything elon musk said at his meeting yesterday with twitter employees and reaction on the company's internal slack channel.

that's next. later, pollster frank luntz are telling us how americans are thinking about inflation and the economy and what it means for business and talk about the november midterms. you are watching "squawk box" on cnbc i may be close to retirement, but i'm as busy as ever. and thanks to voya, i'm confident about my future. voya provides guidance for the right investments. they make me feel like i've got it all under control. [crowd cheers] voya. be confident to and through retirement. inner voice (furniture maker): i'm constantly nodding... ...because i know everything about furniture ...but with the business side... ...i'm feeling a little lost. quickbooks can help. an easy way to get paid, pay your staff, and know where your business stands. new business? no problem. success starts with intuit quickbooks.

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elon musk met virtually with

twitter employees yesterday. he said success at twitter would mean an increase of daily users eventually topping 1 billion the company reported 229 million users. musk addressed remote work he did not say what the policy would be for twitter he said his bias is toward working in person. layoffs at twitter would depend on the financial situation he said the company needs to get healthy. musk diverted the conversation to discuss aliens and human consc consci consciousness. he hasn't seen actual evidence of aliens. >> different from what china said yesterday >> what? >> they said they heard on one of their satellites that could be proof of life they immediately me moved the

posting a couple of hours later sdp sdplater. >> he may have meant aliens here sdplc here >> he hasn't seen times square >> the universe is so big. the distances are so vast. >> it would be a big waste of space. >> can you go through a worm hole >> i never tried >> the majority of the reactions on twitter slack messages board were negative. workers expressing are worries of low ayoffs and remote work ad focus on content and inclusion and diversity. coming up later this hour, natural gas prices in europe are soaring. up more than 50% since tuesday we're going to talk about the two big catalysts driving up energy costs on the continent. as we head to break, let's

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juneteenth is the holiday that ends slavery in america social influencers in the black community is recommending social justice. we have frank holland with more. >> good morning, joe

1 million people follow earn your leave on instagram. others have financial education trending in the black community. summer music festivals are back. but the crowd in philadelphia isn't cheering for the favorite song or dancing to the beat. instead, they are here for a podcast. probably not the kind you would think. >> you don't need a lot of people to become wealthy >> these fans want to know how to make money. >> i feel like the movement is getting bigger and bigger by the day. it is going global >> troy and rashad launched earn your leisure he is a public school finance and financial adviser joined forces to aim investing for the black community. >> if we were at barber shop, we would talk about the top

companies. what this can do for the neighborhood or the barber shop. that is the goal >> here is what you do open a brokerage account >> it is part of the movement of influencers on social media. >> if you are trying to short the market, you're late. >> learn how to diversify. >> the same goal of teaching the black community how to balance books and build generational wealth >> when they see people to deliver the message and familiar faces and familiar language, that is important. >> the popularity has been m multiplying for tips on stocks and real estate and cryptocurrency it is on the rise. they land big name guests for the podcasts like steve harvey and former nba star shaq >> everybody here is a ceo

the ceo is mental. >> they say they have plenty more up their sleeves. >> if you are not part of the solution, you are part of the problem. our purpose is financial literacy and empowerment >> earn your leisure wants to bring the brand of education to public schools they believe lessons of money and building wealth should be a key part of every curriculum and conversation on this juneteenth. joe and becky, back to you >> we need to tap into this, frank, at cnbc we can provide this, can we not? can we be a great source of financial info and literacy? anyone ever say anything about cnbc do we hear "squawk box" out there? >> there is a lot of crossover on the audiences earn your leisure and other people were happy their story

was on "squawk box." there is diversity in your investment, joe. i'm sure you invest in real estate and cryptocurrency. people want diversity and where they get information from. >> right i will not be a name dropper i had a conversation with shaq at the super bowl. number one, if -- >> you are a name dropper. to be clear. joe, you are beating around the bush do you want to start a podcast with me? >> if you'll have me i'd be for it. absolutely, frank. did you know that shaq owns rebok? >> he has been friends for a long time. >> he is on the board of papa john's he is on the board of several publicly traded companies. to circle back, congrats on the

name drop. people need a variety of ways to get financial information and everybody doesn't want to listen to the same person you want different perspectives and ideas. that is what earn your leisure provide. >> it is important it is going to kids and doing it in schools. the sooner you teach people, the better the life plan they can make the earlier you save or invest, the longer your runway that is important. that is great. by the way, shaq has done a lot to give back to schools and to kids in these communities. financial knowledge is the best. >> in the days of the athlete that makes all the money and suddenly doesn't have any. hopefully those are days -- i think they get good advice now that wasn't always the case, frank. how many times have you seen it? you made this much money in your career and they get preyed upon.

>> anyway, frank, thank you. >> finances are complicated. thank you. have a great day. see you later. when we come back, polling data from frank luntz on how americans feel about inflation and the economy and what it means for businesses and in the november midterms. throughout june, we are celebrating pride month. here is cnbc digital editor justice falmalari. >> i identify as a transgender man. i lived closeted for so long it is a different world. being transgender is visible when i did this process that was not the case the goal was to transition and to just be part of society i'm so glad that's changed it has given me the freedom to be who i am. ♪♪ go to investor.gov today to learn about diversification and other valuable investment information.

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good morning welcome back to "squawk box. we are live from nasdaq market site in times square the dow is up 230 points the nasdaq up by 124

that is probably little solace given the nasdaq was down yesterday. it has been a rough week here is where the indexes stand from the record highs. dow right now outside of bear market territory down 19% from the january high s&p is firmly in the bear market territory. down by almost 24% nasdaq is down by 34.3% from its record high. let's throw in the russell 2000 it is down 32% it is time for the big movers dom, tell us what is higher today? tell us what is driving the futures higher. >> we have stability to your point to reset the moves from the course of the worst week of the stock market from the pandemic lows of march 2020. in the course of the week, a lot of focus on a certain number of

sectors. if you look at the action over the last week, it has been about energy which is still -- it was an outperformer over the year. as the week and recession narrative was taking hold, energy stocks took a down turn the worst sector in the s&p over the last week. s&p down 5%. when i say only, maybe a bit tongue- tongue-in-cheek. the consumer staples down 3% over the last week energy and consumer staples. if you look at what is happening in the morning's trade you are seeing a bit of stability. becky asked for green on the screen i'll show you it now energy and consumer and technology were the three worst sectors in the s&p 500 yesterday. all out sized declines we see the sector etfs popping a l bit.

technology up .7.75% health care is catching a bit here especially the staples with the defensive and less economic play out there. if you look at the major indexes and the pull back from the record highs the midcap 400 and russell 2000 etf. it has been aun under performer this year. the idea of recession is taking hold and the economic slowdown could hold on stocks the bigger bounce in small caps. we have focused on signs of the credit markets and treasury markets about where things could go credit for corporates and high yield debt you see the white line is high yield. high performer so far it year. over the last month it has

turned worse for investment grade bonds. not a lot of stress seen on a relative basis in high yields. we will see if that changes. investment corporate grade is tied to the overall move in yields for treasury bonds and notes. that dynamic is something they will take attention to and default risk as the recession tale takes hold on the markets >> dom, there are so many places to look for interesting stories. energy complex among the most interesting. dollar index with the worst week since march of 2020. these are going back to the beginning of the recession maybe what is happening with yields, that is the first thing i look at every morning coming in the 10-year treasury back at 3.22% from 3.44% yesterday these are big moves that are happening on a daily basis a steady climb higher if you are looking from the trend over the last couple weeks. >> becky, to your point, we do

this to a certain yes. the ticker and symbols that people look at cnbc.com. you and i know for two or three years, as least as i have been tracking it, the 10-year treasury is always in the top three search items it shows you from the yield perspective it has an effect on the market and it becomes a big issue. you want to talk about the dollar as well i mentioned how small caps under perform because of the recession narrative. in the environment with interest rates higher and the dollar is higher as well, you look at the narratives of small cap stocks and how insulated they are from the dollar strength. there are weird cross currents happening. the bottom line, this is a risk aversion trade gicven what is going on if it is recessionary, you will

see treasury notes bid and we are not seeing that. >> we are not seeing mortgage rates fall if the interest rates climb, we will see dom, thank you >> you got it. polling shows 83% of americans describe the state of the economy as poor. this comes alongside president biden's approval numbers continuing to drop approaching the midterms in november joining us is frank luntz, pollster and political analyst frank, in your career, we have seen other periods where inflation finally rears its ugly head it has been a long time. long time. few things really get the juices flowing like seeing a grocery bill or gas bill and going whoa. that really is affecting everyone it is visceral, i think. are you seeing that in polling >> yes, we are

the tragedy is we tried to explain this to the biden administration because they are the ones who need to know. they refused the presentation. on the show, i'll tell you what i would have told them if they had only listened. we are 13 days away from the absolute explosion on inflation. there are three holidays three moments when americans take to the roads and when americans buy more food than any other time in the year christmas, thanksgiving and the fourth of july weekend everyone will fill up their cars 13 days from now and they can't put $40 or $50 in the tank they have to fill it up. that's when the explosion hits they can't buy 80% of what they want they have to fill the shopping carts with the barbecues and cookouts 13 days from now, americans will come face-to-face with the higher prices and ofthe fact th

cannot afford it you have to go back to 2009 to find the economic numbers as bad as today the difference is back then it affected roughly 60% of the population now with inflation, no matter who you are or where you live, no matter how much you make, you are impacted by it that impact will be felt shortly. finally, donald trump misidentified the stock market as being the aspect of the american economy that people related to when they decided things were good or bad. joe biden is misidentifying jobs you have a tiny percentage of americans that feel in any way secure or unaffected inflation touches everyone everywhere unless he gets inflation under control where people are not

exacerbated or furious or anxious and angry and unless he does something immediately, it will affect the midterms and affecting his popus popularity. bi you have to go back to 1978 where a president had approval ratings this low. >> where you are conducting polls and you are not asking how inflation is affecting you and you have to ask who caused it or who is responsible the putin price hike how many people buy into that? i guess they might say maybe part of it is that how many think that is the main reason we're in this situation >> that's the right question to ask for political impact the significant percentage about one-third blame the war in ukraine over what is happening

we are not talking about the shortages. right now, you can get food, but it is expensive. with what we know withat will cm out of ukraine, we will not get the food by thtime we get to fall the biden administration is afraid of the political impact so they are downplaying the personal impact. the truth is they should be candid the other thing people blame, about 25%, are corporations for taking the opportunity for charging too much. again, the biden administration is trying to blame exxonmobil and companies like that for the reason why gas prices are so hie high the key is not who they blame. the fundamental key is who they try to solve it. this was the biggest mistake i'm a language person. that word they used again and again for the first couple months that this is only transitory there are millions of people, literally millions, who now know

what that word means and blame the administration for not doing more looking backward, they are not blamed for having ignored it or not done enough, but looking forward, they are absolutely held responsible for why the problem is getting worse and worse. mark my words, 13 days from now is when it hits its peak one-third of americans believe inflation is the issue it will with climb to 40% in the weeks to follow. >> where are you getting the -- okay i found on "the new york times." the stocks plummet piece is there. is this working? is this a political diversion? how long ago it was well over a year, right is that taking the air out is that diverting people's attention from the economic woes

at this point, frank >> it is their economic woes in fact, we asked the question about gas prices personal financial hardship. 52%. more than half the country now say gas prices are and i quote a personal hardship. >> who is talking about the january 6th hearings is that going to refocus consumers on something other than inflation >> absolutely, positively not. in fact, on the issue of guns, which we see every single day above the fold in newspapers like "the new york times" and "washington post," twice as many people name inflation a higher priority than guns joe, what i'm telling your viers and the business owners is they need to take this into account with planning. we have not seen the max

maximum impact of this you all want to know he what is going to happen in november, it becomes absolutely impossible for the democrats to hold the house and the american people are blaming them one more statistic, joe, 2 to 1, people believe the republicans can handle flinflation. the democrats have sold out on the issue. joe biden's woes will be felt by congressional democrats and the impact will be significant and the worst is yet to come >> frank luntz, thank you. the "i" word i did not think about july 4th this is when it all comes home to root. >> from the spending impact and trav traveling. >> barbecue, gas, food, eating, traveling. >> we'll see when we come back, a brutal week for the airline stocks.

we'll show you the big moves lower after this break >> announcer: currency check is sponsored by interactive brokers. the professionals gateway to the world's markets.

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it's been a brutal week for the airlines the shares of the major carriers are down between 12% and 16% since monday morning, despite strong travel demand and recent forecasts on profitability from united and american. fare tracker hopper said domestic airfare fell by an average of $410 in mid may to $390 this week again, people are taking those trips, as michelle girard was

pointing out but the question is what happens beyond shares of alibaba. following a reuters report that ant group's andcatpplication hae accepted for a public offering when we return, natural gas prices in europe soaring again overnight as the continent struggles to fill its storage facilities to avoid a winter energy crisis. we're going to talk ouabt two major catalysts driving prices up more than 50% this week that's nex hey businesses! you all deserve something epic! so we're giving every business, our best deals on every iphone - including the iphone 13 pro with 5g. that's the one with the amazing camera? yep! every business deserves it... like one's that re-opened!

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. a double whammy for european natural gas prices

they are up more than 50% since tuesday after russia cut its supply to germany and u.s. exports are set to drop after a major export facility in texas was knocked offline by a fire. joining us is an analyst, and we talked earlier this week about the fire in the texas facility that's going to keep us from exporting natural gas to our europ european allies. >> we're already losing around 6 billion cubic meters of lng. and if we are looking at the cut in russian flows, with nord stream operating around 40% of capacity they are destroying gas demands in europe. >> what does this mean further

dpo down the road. watching prices soar, what's going to happen between now and the winter months when it really has an impact on consumers in europe and the prices they'll be paying to heat themselves. >> we are looking at a situation in which there's probably going to and flow constraint more or longer than just after the nord stream on maintenance in july, simply because this compressor issue that russia and gazprom has as a thinly-veiled pretext to prevent europe to achieve an adequate storage target end of october. and this means europe is going to be more dependent on russian flow over winter >> very quickly, what about the united states? i'm hearing policymakers say

they're considering cutting our exports. but aren't we supposed to be allies helping out and if we do that, what are the political implications? >> from a market perspective, any lng volumes we are losing from the u.s. because of politically mandated cut to those exports is just going to drive up european prices further to the point where ultimately even now, rationing is a real possibility for the european market it is really the only way for the european market to balance if we are going to see more supply cuts coming, either from the lng market or from the russian pipeline flows so fundamentally, it's just going to cause a rift between europeans and americans, precisely, because it's supposed to be an alliance. also when it comes to an energy partnership and to try and get europe to wean itself off of russian gas, which would and huge setback for the european

market futures right now indicated up 208 points on the dow a little bit of a rebound from a very tough week. nasdaq higher, up 122. and then later how the atyptocurrency capital plans to weher the crypto winter. we'll take you live to miami "squawk box" will be right back.

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good morning wall street waking up with a black eye since the fed did something for the first time since january of 2021. we will debate washington's energy policy. the impact of inflation on the economy and much more. speaking of a surge. the rapid rise in mortgage rates not slowing down either, hitting their highest level since the great recession. so is a housing bust on the horizon? the second hour of "squawk box" begins right now

good morning welcome back to "squawk box. andrew is off today. we're watching u.s. equity futures, and you do get green arrows at this point s&p futures up by 31 this comes after steep losses yesterday. for the week, the dow is down more than 4.5% and the s&p down 6% both of them on pace for their worsweekly performances since 2020 meantime the nasdaq down more than 6% this week and on pace for its worst week since january. dow is off by 19%. just ahead of bear market territory. s&p is down by 23.9%. the russell 2,000 off by almost

33% and dow transports down by almost 30% you'll see right now the ten-year is yielding lower, down at this point to 3.224%, after being yesterday above 3.4% oil markets down too, or it was yesterday. had its worst day since march of 2020 this morning, picking up a little bit to $117.81 a barrel if you have been checking out crypto prices, those have been crushed this week also above 21,000 again, so it' picked up from the last time we checked. but i think it's off significantly for the week how much was it, joe >> crypto, like 27%? we need different metrics for what constitutes as selloff in crypto and the dow, that's a

akronistic with the nasdaq and the russell and everything else that you saw, if we were to bounce from here, you'd say no, it wasn't a bear market, because the dow never made it, this is a bear. >> plus the s&p fell below that's the one you watch most closely. >> dom incchu. it's usa, golf channel, nbc. there's plenty of reason not to talk about stocks today, with the u.s. open. but i'm not going to do that, plus it's all under the same corporate umbrella we have every excuse in the world to do that if we wanted to >> don't forget peacock, which is where i was watching it >> individual group. >> it was on the side of my ipad going. i have six screen on my desk, one which was dedicated to peacock for the u.s. open. >> i lived in brookline and

newtonville. i can't believe that place is right in the middle of all that suburbia what a cool place. those holes are amazing. you haven't played, have you >> no, i have not played the country club it's on my list. i'm angling. i'm trying to work some contacts and i think they're receptive to it >> you may even have trouble on that course. >> i have trouble on some of these other very large and difficult public and private courses that we often play on. >> go ahead. >> anyway, let's talk a little bit about, becky had mentioned we up but not nearly as much as we were down this week but what i will do is show you the red. everything got beaten up pretty badly. first of all, if you look at

some of the more economically-sensitive name geared toward travel and leisure and consumer spending, those stocks got hit very hard the reason why i'm going to show you these ones norwegian, carnival, ralph lauren, each of these was in the top 15 worst performers all day yesterday. and very consumer-focussed on that consumer spending trade, whether there's a building recessionary these were down double digits but are gaining about 3% for the cruise line operators. ralph lauren, thinly traded and not moving that much right now then you take a look at some of these other tech and tech-adjacent type names, growth oriented stocks and these were also among the worst performers yesterday. end phase. etsy, up 2.5%.

tesla, advanced micro and applied materials is flat. a bit of a bounce, technically speaking, but not nearly as significant as the losses that we saw yesterday so still green on the screen also keep agoing a close eye, te big media communication services, social media type stocks many of them like alphabet, amazon and some others are part of this first trust dow jones etf. it's up fractionally, but we've lost half of our value over the course of the last year. as you watch the dynamic play out, joe, some of those stocks like amazon are going to be ones to focus on given the recent pressure i'll send things back over to you. >> who's going to end up winning? >> i, you know, right now,

collin morikawa looks good >> jt is hitting the ball pretty well. >> and rory is hot right now, right? so. >> could be anybody. we never know. >> but you've also got dustin johnson in the mix major winners that are all within striking distance after game one it's going to be great to watch, no matter what >> on nbc. >> peacock >> peacock >> thanks, dom we heard from billionaire investor ron barron earlier this morning. he wrote an e-mail to joe and i in which he writes, this is a huge once in a generation buying opportunity, huge monstrous opportunity following june 2022, june 2020 as well crash. he told us about how he was talking to his sons who have been in the investment business for about 20 year now and he suggests that they now have the same opportunity that he had when he founded baron capital

when the dow jones was at 880. we're crying about it today falling below 30,000 for the first time since january of 2021, but back then it was 880 no progress. >> 16 year, in 1969 it hit a thousand for the first time and not until 1982 that it hit thousand again or '83. and kind of interesting, some of the same reasons why and the scariest thing was 1974 when stocks were all single digits the nifty 50 had fallen to single digits. he points out over the last 22 year we've doubled the rule of 72 that's a paltry return >> far less than the -- you go >> baron says it's incredible

growth companies like tesla and spacex but think of what's happened in the past 22 year if you want to start with the iphone, sequence being the human genome and rational drug design and all of the things that have happened in all these quantum leaps and amazon lowering the cost, and the transparency of pricing on the internet and walmart and all these incredible things that happened we've doubled in 22 year so his thing is the market could be spring loaded we're not cheerleading because most people think that we have a way to go. >> right this is not saying that if you put this money in it's going to come back and quickly make returns. this is about looking at things over a very long perspective and that long haul, if you have the patience, if you are taking money that you are not leveraging, the money you don't need to pay your bills today, that's important to find some of that cash and set it aside

and that's how you have the time horizon to actually watch compound interest build up >> we have highlighted the risks that still are present for this market, with katie stockton and the vix, crappy vix is still only 30, even after yesterday, i think, 32. and people think you need 40 before you make a real bottom. so we're not taking either side. but long term. >> day trade, that's not what this is about. being a long-testimony investor, realizing if it's sitting in cash, sitting in a bank account where you're not getting returns, you are losing. this is something that ron baron has been consistent about. >> if were you a young ron baron. think where we are now the numbers would be up in the hundreds of thousands, theoreticall

theoretically, if it really is the same type of opportunity joining us to digest all the information of the week, she prefers art, i think, to financial assets that's a nice one. that's not going down. >> that's a new one. that's a new one >> it is i love that you do that. we get to enjoy all the different offerings. do you agree -- >> thank you >> with parts of what ron said, all of what ron said or certain things there that you probably would be nodding for. other things, are you going this way? >> well, first of all, joe, i live in brookline, and at 5:00 p.m. i was on 15. and you're invited whenever you want to come, and dom too. >> wow >> about what ron said, of course, you know, you have to look at these prices and say for 15 times next year's earnings.

there have to be bargains there. you can't call the bottom, but there are some stocks that you look at, and you say it must be the time to buy them because they've fallen 50% to 80%. we're probably in a recession or close to a recession if you assume last quarter, negative growth, this quarter, no growth. maybe negative growth also unemployment is going to start to go up we suspect, because people may have over, overhired just the way they overinventoried, and we're seeing it in retail, housing and we're probably going to start to see layoffs. you have to look through that and say which are the companies, where are the places that over the next year or two we can feel confident in management and their ability to bring these earnings forward, rather than feeling feeling right now frenzied and having no faith in policymakers and guidance, because this is a

very, very uncertain time. >> in a nutshell, how bad does inflation get? how long is it bad and can they orchestrate a soft landing. when do you think we get any clarity on all those issues? it's going to take at least quarters, i would think, if not years. >> i mean, don't you think in the next quarter we're going to see that inflation, in some areas, is beginning to come down i was at my bike store the other day and made a sign, used bike sale and a year ago there were no bikes for sale, zero they couldn't get parts, and they couldn't get bikes. now because everyone ordered so many bikes there's an excess of bikes. so we're going to see for sure prices come down in many areas not just consumer products but industrial products. you look at warehouse space. there's probably excess space being developed right now. if you look at what build

something that, haven't seen people come back, they probably have excess people working in security and working in maintenance. i mean, we don't want this to happen, but that 3.6% unemployment rate, that's too low for recession, but it's probably going to start to change quickly, and we're going to see housing prices. it has to happen if you double mortgage rates that prices begin to come down they may be sticky for a while, because sellers don't want to give in, but after, you know, after a few months, they're going to say okay, we have to lower the price, and that's deflationary, right? >> twodo you, are you selective looking at any of the fallen angels that we all loved a year ago? that they're completely on sale. maybe they're not cheap, but they're certainly a lot cheaper than they were >> so i think there's a difference between when you're talking about perhaps

high-priced growth stocks or even meta, salesforce, google. we own growth stock, and we've been nibbling again, to add some our portfolios, because we think that they are attractive over the longer term. but the market is still wary of high multiples they're worried about, well, meta has a very low multiple now. it's been cut to below 13. and if you consider stocks, even if financial, schwab would be a name we think is attractive here cme group f you talk about volatility in the market, that takes advantage of that. and u&h, a great health care service company. and that has fallen dramatically, and it has a yeechltd so on both sides, stocks that have that high growth potential han those that are steady, stable, dividend-bag companies that have been trashed by the market as well.

we can see a reason to again to nibble in both places, but going after the stocks that are 20 times sales, i think that's going to be a pause for a while. we're very now skeptical of that you look at all the names that are down 75% to 90%. they've got a lot of room to cover. >> so are you, you live in brookline? did you say that >> i do. i'm around the corner from the country club >> do you know the church on park street that was converted into beautiful residential, he used to live there you know where that is i had a huge -- >> wow, absolutely >> i had a half stained grlass i only rented, brelieve me, andi had a roommate so it's still residential, 30 year, 40 years later >> amazing >> right near the green line >> you bet

>> thanks. >> green line. have a good weekend. when we come back, we're going to talk fed, crypto and what regulators are watching in the markets right now with jay clayton. before we head to a break, let's take a look at the leaders and laggards carnival leading the way up about 9.9% norwegian right behind it, las vegas sands, royal caribbean adobe is leading the way lower this morning down by 3.7%.

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"squawk box" for more on the market's response to the fed's 75 base s point this week. you have every one of the major equities indeces with the exception of the dow in bear market territory the dow's almost there huge swings in treasury yields what does all this mean, and are people who sit on the financial stability oversight council that you used to sit on, are they meeting and getting concerned at this point >> good morning, becky, and thanks for having me on.

look, there is a job for regulators to be looking at the markets, continuing to look at the markets and to see, to put it bluntly, if markets are missing something. two months ago, we spoke about the risks inhe market place. energy, agriculture, supply chain and inflation, and we talked about how the market was basically pricing in an almost perfect response to those risks. well, that hasn't happened what we have now is the market has recognized that those risks remain and we've had this selloff now there's some good news here, which is the selloff has been very orderly, and there are other good pieces that we can talk about but if you're a regulator now, and the market is the best predictor of future outcomes if imperfect, you're looking at the market and saying, okay, maybe we're getting inflation under control. i applaud the move that the fed has made

but these other risks remain you have risks in energy, agriculture. you have risks in supply chain and the market is asking, are we going to get those right or are their sure surprises on horizon. that is the type of conversation going on among the financial regulators and others. >> i've heard you say this is orderly, but there have been questions raised this week not just with crypto and what might be levered to that, but also what might be levered to interest rates when they spike, when those yields spike so quickly. any concern on either front? >> i think that's exactly what we should be looking at going forward. if the interest rate impact is going to have what i would say is a very negative impact on the consumer, one of the pieces of good news that folks are citing is that consumer and business balance sheets remain in good shape. well, yeah, how long can that be

the case if we have a spike in interest rates, energy costs stay the way they are. food costs continue to rise. and put in, put on top of that geopolitical factors although we have geopolitical instability over the last three to four months, over the last month or two, it's kind of been the same in instability. are we going to get more is there going to be a retrenchment, what i would say is a nationalistic retrenchment around energy and food, which would create even greater instability. >> let's talk about that i think what we're hearing now, whispers that we could talk about stopping exports of natural gas. maybe diesel, other things, because our consumers now are facial such huge price hikes but what would that mean if we were to do that and leave our european elis allies who are beg

pressured by putin >> i'll talk about it from the financial side and maybe what's going on at the state department you mentioned the fsoc there's also the fsb, which is where the global economies coordinate with their financial regulators in the g-7. you raised a point that i'm sure is being discussed, which is let's talk about retrenchment would mean domestic, you know, insular retrenchment in these markets for financial stability globally it will definitely have an impact and this is something that those people, whether it's the bank of england, bank of france, our partners in germany should be talking about with the u.s. regulators >> does any member of the defense department sit in on these meetings a geopolitical risk comes from this >> i think in these types of situations you can't be rigid. maybe defense department wasn't there when we talking about the

2008 financial crisis, but it's present today. you can't have a regge id view but these are the types of issues that should be discussed. >> your bottom line coming out of this. are you optimistic at this point? have we seen some off the worst pain are you still feeling pretty nervous? >> my bottom line is the more global leadership we have around these issue of energy, agriculture, supply chain, because of how intergrade we real inte integrated we are. >> jay, thank you, i think these are pretty important thoughts. i hope a lot of people are listening. good to see you. >> thanks, becky >> thank you when we come back t was just

o over a decade when mahousing crashed. let's take a look at homebuilder starts housing starts falling much more than expected in the month of may, down nmore than 14%. we'll be right back. time now for today's aflac trivia question. what is the oldest stock exchange in the rlwod? the answer when cnbc's "squawk box" continues the aflac pre-pain show. aflac! paul is about to suffer a shelf-inflicted injury. luckily, aflac will help cover his unexpected medical bills. aflac! maybe you could use the money to buy a step stool. i have a step stool. so why are you climbing a shelf? the stool's on top of the shelf, isn't it paul... (shelf crashing) yeah... ♪ ♪ aflac! hey, did i tell you i bought our car from carvana?

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welcome back to "squawk box. the futures are seeing some of the best levels of the session almost 300 points. 271 on the dow this morning. nasdaq indicated up 160 and s&p up 43 or so. a clerheck on some of the bigge names in tech. taking it on the chin, in the green this morning ahead of the open, here's where we stand for

our 52-week highs. meta platforms down 58%. apple, netflix, 75% and alphabet down 30% >> yesterday was another rough day for the markets. if you take a look at where the major averages all stand, you've got dow down by 19%. the s&p down by 24%. the nasdaq off by 34%. joining us for more on this is jj kennehan. one of the bright spots is that the market has been down but it is very orderly. you say that's one of your biggest worries. you want to explain that >> sure, becky i do think it's a bit of a worry for this reason. if you think about, when you talk about, are we near a bottom, are we hitting a bottom quite a bit traditionally, we

don't hit bottom until people have thrown in the towel if you will you think about the selloff we've had, it has been amazingly orderly, even like yesterday i never felt a sense of panic as we were going down so i do think we need some days where we see that sense of panic before we can say we're going to hit a bottom so what that means isque continue to grind for a while. and if you look around right now, you're like, okay, what's the good news that's going to make us really rally we're going to ten with some of these day rallies if you will. one or two-day rallies but overall, to hit the more traditional bottom, i think we need to see some >> you work with retail investors. what are they thinking at this point? have they had it have they stepped away from the market is it no fun to watch this

anymore or just too painful? >> i don't think anybody's having fun when retail tends to trade from the long side but i think the good thing is a lot of retail traders have learned from the 2008s we have a new generation you talked about this before, becky, that never has seen a market that goes down. so there's probably some indication going on from that point of view also, overall. but the biggest difference i see now from a year or so ago is the pelotons, the docusigns of the world. investors are not going after those stocks and trying to catch the falling knife if you will even as much as they were a few months ago the last few weeks have been interesting to see the pattern of retail. they've gone to those stocks, many of whom joe just got through talking about.

apple, microsoft, coca-cola, mcdonald's more traditional names have been the favorites of retail clients. and that speculative flair on this stock has gotten beaten up 80%, so very ti have to catch t falling knife, that has faded. >> you said they're getting an education. i guess that is one thing to call t iit what are signs of hope if you worry about the fact that it's been orderly to this point, what makes you feel better >> i guess the one thing that makes me feel better is you still see some stock like oracle, et cetera, that come out with good earnings that doesn't make me feel a lot better overall in terms of, you know, hey, are there still some companies that are going to be all right? yes, there's always winners and losers in every market overall

and i don't take it lightly when people are losing money, but say this, one of the best things about the market to me is that it humbles you constantly and makes you have discipline. so i think with that, people as they're learning to become longer- longer-term investors. if you think about people who have never seen the bear market, they're younger investors. and everything we do in hilife, when we're younger, we learn lessons. you can't just think we're going to buy taand it's going to go u. i think nobody ever wants to lose money, but when you're younger you learn lessons. be it from college or a trade school and in this case, many are paying for in the market >> what are you sighieeing at ty

works? fewer people trading? fewer accounts or are those numbers up? give us anecdotal evidence about what's happening to the retail investor right now >> i know you had this discussion the other morning i happened to catch it the other morning when i was driving in. has the pace slowed? there's no doubt about it. so i would say across the board, retail has definitely slowed down >> slowed down meaning the number of accounts meaning how much they're trading on an average day? >> the pace of accounts coming in the amount of people who are trading every single day has slowed down. it has not stopped by any stretch of the imagination and when i look at what we're doing now, compared to where we were 2019 pre-pandemic, we're still at higher levels you look at the volumes across the board, are they what they were

b but these are not terrible volumes. and if we can get some sort of rally, we're in a tough time right now. you look across the sclandscape and i think something fundamentally changed in the last two weeks maybe because of gasoline prices, et cetera, but i look around and i see something a little odd going on over the last few weeks we're seeing, you know, we're all seeing it at home. and i think we're seeing it in the stock market where people are trying to figure out what this is. and on to our next step. you know, the fed leading the other day, okay, they're taking action when they take action it doesn't work through the system immediately. it usually takes four to six months for these things to work through so they continue raising rates. it may still take us four months or so. you ask what the hope is the hope is that the pace of prices slows down. maybe good new this is week.

114 and change right now >> jj, thank you jj kennehan. coming up, president biden calling for more discussions on oil. up next, the housing market, feeling the inflation pressure and rising rates diana olick tells us if the sector's on firm footing "squawk box" will be right back. e to work from here, there has to be someone here making sure everything is safe. secure. consistent. so log in from here. or here. assured that someone is here ready to fix anything. anytime. anywhere. even here. that's because nobody... and i mean nobody... makes hybrid work, work better. (♪ ♪) how do we demonstrate our unmovable strength? (eagle call)

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it was just over a decade ago that the housing market collapsed. price plunged and millions of ho homes went into foreclosure. are we in for a repeat what do you think, diana >> i think the short answer is no but there are some red flags so i want to show you a whole lot of data to me the point, a whole lot of stats from black knight the average borrower score is an average high, 751. it was below 700 in 2010 thanks to the run up in prices, those have tapable equity.

that's what you can take out of your home and still have equity in it. $11 trillion in total. really record low mortgage leverage today that's a significant cushion in case home prices soften or even fall ry little negative equity today as opposed to one in four who were under water back then what about the riskier loans? there are 2.5 million adjustable rate mortgages outstanding today. compare that to 13 million in 2007 before the crash. but back then, about 10 million of those were facing resets. mortgage dlin kwi qelinquencies record low there are currently fewer past-due mortgages than there were before the pandemic

there are still about 300,000 borrowers who have exhausted pandemic-related forbearance programs and are still delinquent the real risk to housing is recession. if people start to lose their jobs and then they can't make the payments becky? >> yeah, diana, all of the statistics make you feel a little better when you compare the now versus then. i think the bigger question still is, what about new buyers, first-time home buyers who are trying to get into this, somebody who doesn't have a home right now that they can trade in for it you can stay in your home at this point, but trying to get in at a higher mortgage rate means affordability is going to be a lot tougher. >> affordability is the risk to the overall housing market even though we have higher rates, there's still demand out there and still record low supply, so we have not seen prices come down yet we do expect to see them ease up a little bit, but the issue is, if you own a home and you can't move up, you're not going to

want to sell it. if you own a home you want to stretch. and then there's the question of those who bought in the last year who might have bought at the top of the market and then they have issues during the recession. any financial stress, that could be another one to watch, becky >> what did you think of the housing starts number yesterday? it was down more than 14%. what the heck happened >> you know, it's just the whole thing is shocking to me is how quickly this has all happened. the turn around we've seen, and the homebuilders dropping that much in one month is a real signal that they saw that slow down come almost immediately it's funny i talked to a real estate agent yesterday who's selling a house that's been on the market three week, can't get anyone to look at it. he said if he put it on the national april he would have sold it above asking in a weekend. that's how quickly everything is happening so fast in the housing market, you don't usually see that >> diana, thank you.

good to see you. have a great weekend coming up next, we're going to host a debate on the president's energy policy and surging prices at the pump oil prices right now have moderated a little this week but still much higher than they were a year ago you can see wti, 117 we'll be right pack. 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? ♪♪ as an independent financial advisor, so tell us - what's your why? i stand by these promises: i promise to be a careful steward of the things that matter to you most. i promise to bring you advice that fits your values. i promise our relationship

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following the letter to big oil ceos, president biden has now invited them to the white house to talk gas prices but at president criticizes the oil industry, his own policy is called into question joining us from the center of american progress, vivek ramaswamy kristy, one of the criticisms i guess is that the president seems all too willing to go to venezuela or saudi arabia hat in hand to try to get them to increase production but hasn't made the same type of overtures to domestic producers. and that doesn't seem to make any sense. can you explain it >> well, i'm not sure that i agree that he hasn't made the same over totures to domestic

producers. he's asked the domestic producers to produce more. there are two reasons for these record gas prices that we're seeing right now one has to do with the war in ukraine and the other has to do with refining capacity that just hasn't come back online since the pandemic so the president has requested the domestic producers do increase production, and he's been told resoundingly that they're not going to >> that's not exactly right. there's a difference in getting leases versus permits. no additional drilling on federal lands, that was one of the first things that was done >> but the courts threw that out, and they've moved forward with their plans for drilling on public land, so i'm not sure >> vivek, do you think that the biden administration has done all it can to try to get u.s.

domestic production rolling? i, it just, the pivot from we want to cut production to transition to clean energy that they're so proud of, i'm going to shut towdown the fossil fuel industry, suddenly they seem to distance themselves from that. no, it never happened. we never tried to cut production that was a stated goal >> i find it ironic that the biden administration is blaming oil companies for produce less oil when this was an explicit policy aim, one of the top policy aims of the administration and you can listen to john kerry this week, saying we absolutely should not be drilling more oil. the subsidies for wind and solar increase the relative cost of capital for any kind of oil production project, and furthermore, if you keep about the keystone pipeline project, this one hurts me personally the

most that would have been 840,000 barrels of oil per day from the tar sands of alberta to the gulf coast of mexico. let's keep in mind canada is a democratic nation and ally and instead you have this administration now shamefully in my opinion, begging dictators from venezuela to saudi arabia to produce more oil, but the worst part of this is the fact that the biden administration was among the few parties lobbying the eu against adopting the russian oil import ban keep in mind, this is actually what's financing putin's war machine even with the u.s. on the other hand sends $40 billion to ukraine to fight against russia this is sense huless policy. this was the exact policy aim implemented by the biden administration in the first place. if there's one narrow sense that he's correct, the private sector's responsible in one way,

but not the way president biden mentioned. it's the esg movement where they've put pressure on the oil companies to cut production. it's something different all together >> kristy, there's also talk of resurrecting some mothballed policies from nixon and carter years of a wind fall profits tax. do you think taxing wind fall profits of the oil companies would increase production? or decrease production would prices go higher at the pump or lower at the pump? >> you have to structure it. so however you do it, you're taxing the wind fall profits, and it's not passed on to the consumers. and i think there are definitely ways that can be done. and incentivize more production and not make sure that it's slowing down i want to interject here you're confusing climate policy and the transition to clean energy and what we need to do right now given the war in ukraine and these surging

prices and yes, there has been a change, because consumers are hurting and there is a need to address that right now and that's what you're seeing the biden administration do. and really, we have to be able to address their transition. there's never going to be energy independence at the bottom of a well so we can both secure ourselves, have a better national security policy by transitioning to clean energy and address the problem that we have to do right now yes yes, it's complicated, but you have to do both at the same time >> vivek, have you ever seen if you make something more costly to do and hard torer to get that that causes the producer to spend more money i don't think could you get a single economist to say that taxing wind fall profit is going to increase production and it's been tried in the '70s. >> this is not complicated with all due respect to kristy.

you can't have it both ways. either can you say the policies of this administration are going to be effective in fighting global climate change and also have an impact on energy prices in the united states, or can you say you're not going to have an impact on energy prices in the united states and you're not making a deference to fight global climate change. you can't have it both ways. i think we are seeing customers paying the price at the pump for that policy decision to drive this energy transition think it's important that the public understands with clear and open eyes what the tradeoffs are. and unfortunately, people paying the prices at the pump this year, anybody who's gone to the gas station in the last month understands what the tradeoff is >> they're playing us out. but far from over. we'll try to have a chapter two

doubt road th down the road. >> thank you for having me let's check the green arrows nasdaq up by about 120 s&p up by 32 we will have much more on yesterday's big selloff and this morning's bounce back after this break. and ro khanna joins us to talk about washington's response to record-high inflation "squawk box" will be back after a quick break. flexshares etfs are built with advanced modeling. to fill portfolio gaps and target specific goals. strengthening client confidence in you.

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good morning futures pointing to a higher open on wall street, but it's still shaping up to be an ugly week for stocks. the s&p on pace for its worst week since the initial covid panic. tech stocks hit especially hard. but president biden says a recession is not a given for the united states, making the case that america is better prepared than any other country to beat inflation. final hour of "squawk box" begins right now

good morning, and well dom "squawk box" here on cnbc, live from the nasdaq market site in times square i'm here with becky quick. andrew's off today futures continue to climb, up over 200 points. it's a bounce back, but an anemic one from the weakness we've seen devastating weakness in the averages over the past eight or nine days. follows another selloff we had just yesterday the dow's on pace for its worst week since late 2020, and we can add in last thursday and friday as well. which would put the nasdaq well into bear market territory the s&p now in bear market territory. same with the transportation average and the russell. only the dow is not, and it's down 19 and change from its highs. among the top stories that we're talking about. chinese tech giant ant group moving a little closer to regulatory limbo

the central bax nk has approved ant's application, a further step to a public offering. ant, by the way is an affiliate of alibaba shares of that company are jumping in the premarket elon musk wants to reach at least 1p billion users on getter it was his first meeting since he made the $44 billion bid for the company. musk said anyone who's a significant contributor should have nothing to worry about. >> that doesn't really make you feel better if you're sitting in the audience >> you know who you are. either you're contributing or you're not >> bringing in cash flows. >> and a recession -- >> sales >> and a recession is not

inevitable that's a call from president biden, in an interview with the associated press he said people are really, real le tow really down. he said the u.s. is better prepared to beat inflation than any other country in the world >> let's get over to dom chu dom has been looking at some of the biggest premarket movers you've given us the bright side of things you want to continue with that? >> let's try it has been so pervasively negative over the last several weeks. the worst week for the stock market since march of 2020 let's get a check on the premarket action the stocks responsible for the rise and braoader fall you've got apple, microsoft, alphabet, amazon and tesla, as

you can see there, up fractionally to 1 and 1.5% for those names. remember these storcks make up 21% of the s&p 500 and so they go so goes the market. the drop in markets pmay have created buying opportunities for beaten up names. we're going to show you nvidia and boeing and for nvidia, they like the upcoming product cycle for gaming and day center chips and possibly an underappreciated growth opportunity those up today and then american express and

capital one financial up about 2% respectively. they both get upgraded to outperform over at baird they feel like the drops in each of these stocks reflects the weakening backdrop already and each has the ability to pull levers to change expenses. those getting beat up. boeing among the notables this morning. >> this is the worst market week we've seen since march of 2020 we knew what was happening it was covid, shutting down the country. people forced to stay home travel fell off a cliff. so you can understand why american express would have fallen so deeply then. this is nothing like, it doesn't feel the same. obviously people have financial pain from the markets. but this is so different from what we facing in march of 2020. it's hard to put your mind-set back to that period of time when

we didn't know what covid was or how it was going to play out this is not the same >> no, this is not the same. but some of these consumer names did rally back the interesting part about that, not just for amex and capital one and other travel-related names. there were so many unknowns back then we understood the way the markets reacted the way they did because we didn't know how they should have reacted. what we do find curious these days is that there's been a more systematic decline in some of these stock, given kind of the evolving economic narrative around inflation and consumer spending i would say right now the drops that we've seen here have been dramatic, but they haven't been as violent in terms of the overall viability. and can you point to the braoade market the vix, i remember seeing an interday 85 reading as opposed to the elevate 30 levels we're

seeing now it's thoug it's nowhere near as volatile. >> let's talk little more about the broader markets. joining us is chief investment officer, and we are getting to the end of a very long week. we've got a three-day weekend ahead of us. are you going into the weekend grateful or feeling calm? that things are going to get better next week or are you concerned about what happens when markets are closed for three days? >> i think we all need a break i like that we're going into this weekend in the green, a little bit better off than we were last weekend. but in terms of what's going to happen, the issue we have now is

there's a lot more uncertainty in the markets than there was a couple weeks ago if you had asked me what do i think, i think if the last inflation rating had been better a the market would be rallying now we have more uncertainty we're sort of wrong. april was not peak inflation it still looks high. we off on geopolitics. supply chain issues continue in the short term we're going to have this volatility the dow just on the edge reading from the book of ron baron that you discussed this morning, i think this is a great generational opportunity i especially agree with this morning where if you're a young investor and vut wherewithal to dollar cost average in and hold for a longer period of time, this is going to end up being noise when you look back on it

in the short term it's painful. it feels horrible and we have to ride it out. >> in the long term, how long are you talking? this should be cash that you don't need for how long that you'd be putting in the markets today? >> yeah, absolutely. i think in the short term it's reasonable to think, if you look at some of the technical, we have some of the major averages off of all-time highs, 20% to 30% historically that has come with a balance of double digits. if you look at 2018 and covid and you have less than 5% of the s&p above the 50-day moving average, we might get near-term bounces. i think it's a dangerous game of supply though. for how long if you're super young you hold until retirement and benefit from that. if you 're the average investor who wants access to your money you have to look out for a year

or two, because things are uncertain. recession seemed very unlikely, but now you're starting to look at things and there are concerning red flags, inflation being one of them. on the other hand corporate balance sheets do remain strong. things like appal, used cars and housing starts we just don't know we have to have a quarter to see what the fed does. i think if we had a more favorable inflation rating last week we would be looking at a much better week this week so i think that stat just gets kicked down the curb a little longer >> so you think every month's inflation numbers could set the tone >> i do. and i think that when we get a series of inflation ratings, and j. powell said this himself. he's going to have to look at several ratings before he decides whether to pull back

there is this uncertainty of whether we'll have three or four consecutive hikes. the market is pricing in a little bit of a worst case scenario so i do like that. i think there's enough carnage here for me to be pretty interested do i know if it's the bottom i don't. i'm okay buying the faangs and some of the things dom had put on the chart, especially like n individual yeah. t there are definitely some discount deals there you look at what's been hit the worst. >> energy has been a huge winner, at least for the year-to-date, but theiris week been the worse week for energy since march of 2020. for the most part, year-to-date

it's the biggest leader. >> you're buying near the highs there. i do think there's a little bit of runway because we have the supply and demand issue. so i think it's reasonable to look at some of the pullbacks in energy and look about shorter term trades there. that's something that might play out in the next couple month, and i think commodities in general, if you look at things like corn, wheat, perhaps diversified funds or etfs to attract commodities. another decent anti-inflation play i think is going to be that revenge travel trade the delta calls, talking about increased margin i think the consumer, although university of michigan says absolutely, they're thinking that the world is coming to an end. that doesn't match up with the spending that they're doing in airlines, travel and reopen, particularly going into the summer so thereght spot in the

coming months. >> thank you i hope you have a long, peaceful weekend. emphasis on the peaceful >> thank you, you too. cov coming up, democratic congressman, ro khanna talks with us about gas price. roku joigaining on a partnership with walmart and snapchat parent snap testing a paid subscription model for exclusive and prerelease feature stay tuned we'll be back with more "squawk box. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire if you used shipgo this whole thing wouldn't be a thing. yeah, dad! i don't want to deal with this.

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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. ahead of the juneteenth holiday weekend, gas prices are hovering right near record high, $5 a gallon. our next guest says president biden should immediately call together a task force to work on lowering prices and addressing shortages in the economy he encouraged that he's moving in the right direction after his letter to energy companies criticizing well above normal refinery profit margins. joining us now, democratic congressman ro khanna of california it's always good to see you.

i'm wondering if whether you've had any type of evolution in your thinking on this issue, given where we are right now and you know what i'm referencing back in october of last year when you were talking to some of these ceos and praising bp and shell, the ceos for reducing their oil production over in europe and saying, are you at this point embarrassed as an american company to chevron ceo, are you embarrassed that your production is going up while your european counterparts are going down. don't you want our companies, our domestic companies to increase production at this point? that was clearly not the right action to be asking these ceos to do back in october, was it? >> joe, it's a fair question i think we have to distinguish between the long term and the short term of course we need short-term

production to go up. what i was talking about in that clip and if people see the whole testimony is how do we diversify our energy sources over the long run so that we're getting 1%, 2% into renewable energy. but certainly we need short-term to go up and one of the ways to do that is to have an export ban why are we sending more oil to other countries when we have a problem here with supply we never used to do that before 2015 we could have that ban now and it would dramatically lower gas prices >>we could have that ban right now, but it would really put the screws to our friends in europe who have been pressured by putin. you watch short-term production, not long-term. and we want refineries to be able to pump out more gasoline

right now because that's part of the problem. we don't have the refinery capacity, but those are not investments that businesses are going to make if we are telling them that these are for the short term we want them to spend billions of dollars to make investments that by the way we don't want them to be producing decades from now business stop spending capex and that's what the oil companies have done. it's little disingenuous to say we want to you produce short term and then we're going to take away your ability to make money off those investments. >> becky, i think that's not the position of the party. we want to diversify if the oil companies had been honest about global warming and diversified since the 1970s, we have much more stable prices i don't see any problem to say 1%, 2% of your long-term investments should be in renewables and diversification and the export ban would work. the oil companies would say we

make light shale oil right here. we don't produce the crude oil most of our refineries are for kr crude oil. you could have a one-to-one exchange >> have you seen what's -- since tuesday, natural gas prices in europe have gone up 50% because of two things. one, the export facility in texas that caught on fire, meaning we're not going to be shipping them anymore lng for months. >> the second is that the russians have really put the screws to them, saying we can't ship, there's some equipment that's gone wrong, but you know what's really happening here 50% higher in europe, in four

days these are the people we're supposed to help fight vladimir putin right now, and this is what's happened to them to >> sure, and i'm for supplying to our allies and some of our european allies. i'm not for supplying to china and the rest of the world while americans are spending 6 bucks at the pump. the other thing for the government to do is to buy preemptively when the price of oil was low. i called for that when the price was in the low hundreds. every president has done that. so there are tools we can take my view is the dcourse right now we need to focus on lowering price and increasing the oil supply but long term, what's really going to bring flexibility is the diversification of our energy sources >> you think it's going to be at

least 2050 before we can significantly lower fossil fuels, whether it's natural gas. and the other thing, when a certain side looks at some of your ideas, they go, they pull their hair out, not only the export ban but the wind fall profits tax. they call these ideas that we tried in the '70s and '80s under president carter, president nixon. and the idea that raising the cost through a wind fall profit tax will increase production is economic gobbledy gook it won't happen. they are already worried about large capital outlays because they can't look at the future in a positive way given who's going to be in the white house and congress the rug gets pulled out from

them if you raise the rates it's going to hurt production, not help production. >> joe, let's look at two facts. first, look at the charts in 1980, early 1980s, prices went down and production went up >> we opened up alaska that's conflating two different things >> is the economists can debate it but the prices didn't really go up that's when it was repealed. fort oil companies were making these extraordinary profits, and no one's denying president biden said they're making more money than god if they were making all this money while my constituents were paying 6 bucks for gas and they were putting that into more capacity or drilling we'd say okay but that's not what's going on

they're putting it into sheer buyback from wall street in it >> it's the policies from your party. what do we do with google's profits? are you going to reimburse the oil companies for year after year a lot of them went out of business because they couldn't make money what do we do in lean times to these companies? do we reverse the amount that they've earned in good times? do we somehow reimburse them for what they lost in bad times? what's a reasonable profit margin in your view you're a big capitalist in silicon valley >> it's a fair point >> all those tech companies are making way too much, making way more than 10% profit margin. >> and they have zero capex. >> go ahead, becky >> they have zero capex. tech companies are so strong because they don't have to put back in them the money that you want the oil companies to put back into the ground

>> here's point. i have no problem with companies making a large profit. i have a problem when it's being caused by a national emergency there is no doubt that the cause of one of the biggest causes is putin's invasion of ukraine. and the point is, americans are patriotic, and they're paying a lot. and in a time of an emergency caused by that, i think the excess profits, that tax can go towards putting money in the pockets -- >> you said the same thing about pfizer and moderna taking advantage of a pandemic to sell vaccine. you'd say zoom shouldn't be ma ma making these profits because everybody's at home cashing in on the pandemic. netflix is doing too well. can you go on and on and on. what happens, there's things that are helpful to companies and things that hurt companies, depending on the situation i don't think they're taking advantage of a crisis. the oil price is set not by u.s. companies. it's a global market place that

sets these prices. >> well, look, we had an export ban, we'd have a little more independence i'm not bashing the motive i understand the oil companies they're responsible to the shareholders my disappoint you've had vladimir putin invade ukraine. one of the consequences is gas at 6 bucks this is one of the reasons that gas is going that high why not use some of the money being made, why not put it back in the pockets of american consumers? >> we keep talking about it, but it's never going to get out of committee. for the last 20 years we've been talking about it and when it's never had any chance of getting anywhere >> boirs johnson did it in england. >> and now he wished he hadn't, because it's not working this is our first fight. >> don't take me off your ticket >> we're going to have to talk

if we're really going to be on a ticket together, although we would cover. we've got everyone covered in our ticket, kind of like the show here. >> i hope you were rooting for the warriors last night. big win. >> i bet on the giants a few times. i've been disappointed, but other times i've been happy with that that was a, that's a solid team you got there. that is a solid. how about, how about green wow. talk about, and the mvp. and the mvp. steve kerr kind of bugs me from time to time >> he's a good man you'd like him you'd like him you should have him on your show he's a good guy. >> the bulls, though >> i know he's got opinions. i have them, too but i never express mine >> never >> see you later, ro >> never when we come back, miami billing itself as the cryptocurrency capital. so what happens to the magic

city as bitcoin and the other tokens take a dive a live report is on the way. and we'll hear about el salvador, too. and we'll be speaking with tim armstrong on the tech wreck in the markets. stay tuned you're watching "squawk box" and this is cnbc milestone, the biggest accomplishment, the sale of a business, or an important event for their family. for them, it's the first and only time. we have seen this literally thousands of times, in thousands of iterations. ♪ ♪ i am vince lumia, head of field management at morgan stanley. whether that's retirement, paying for their children's college education, or their son or daughter getting married, our financial advisors need to make sure that they are making objective decisions, every step along the way. every time you hit a milestone, an anniversary, a life event, the emotions will run high. making sure that you have somebody, a team of individuals that have seen it before,

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when we come back, a cold

crypto wind blowing through miami. kate rooney is live in what many consider the capital of denigitl coins, taking in the industry's temperature as prices plummet. a crypto winner in miami it's kind of weird, kate what do you have coming up for us >> that's right, joe miami has billed itself at the cryptocapital. but now that we've seen prices crashing, are they still as bullish or is some of that vethusiasm fading is this we'll ha a lot more on that live from miami after the break. "squawk box" will be right back. if an oral treatment is right for you. oral treatments can be taken at home and must be taken within 5 days from when symptoms first appear. if you have symptoms of covid-19, even if they're mild don't wait, get tested quickly. if you test positive and are at high risk for severe disease, act fast ask if an oral treatment is right for you. covid-19 moves fast and now you can too.

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all right, welcome back to "squawk box," this is cnbc we've been watching the futures this morning, and there is some rare brightness this morning s&p up by 33 the nasdaq up by 118 of course that wouldn't even make up for near the losses we saw yesterday when the dow was off by more than 700 points. the nasdaq was down by more than 450. the dow closed below 30,000 yesterday, the first time it's done that in about a year and a half every sector in the s&p 500, now more than 15% off their 52-week

highs. consumer discretionary and communication services down by more than a third. and the pain that we felt this week and the last half of last week, too. >> today's expected high temperature in miami, florida is about 90 degrees, but when it comes to the city's burgeoning cryptocurrency industry, more like the dead of winter. kate rooney sheer and joins us with more. anyone smiling down there in the crypto community everybody looks pale >> yeah, you know what, everybody's still tan, there's still a lot of optimism. it's really been the epicenter of the crypto boom many people we talk to are feeling the pain as prices crash. investors are holding on to that optimism, but there's really a sense of shock right now, especially from some of the younger crypto and nft investors about how fast it has dropped. the city has been looking to

attract top crypto and top tech talent the bull, and the miamicorn. crypto down roughly 95%. frances suarez talked about this to have an alternative to taxes. and while the project has provided some wind fall to the city, the mayor acknowledges it does come with risks >> these technologies are extremely new, so they're always speculative. one of the things i have always said, you should never invest money in something a you don't believe n or b, there is a possibility could you lose that money. so you need to invest in that way. >> tables at 11 can cost at least 50 grand at the have seen a slow-down

but it could signal the end of conference season or people leaving for the summer investors say there's hope for a rebound and crypto's long-term value. back to you. >> you got your tickets to el salvador can you check on what's going on that's another crypto hot spot, so to speak? >> they're likely suffering right now. cold spot, as crypto prices come down they are sort of in the same position as a lot of these companies where they hold bitcoin on the balance sheet but it relies on the price of bitcoin going up i'd love to go down there. >> i'm working on, i'm your agent. i'm getting you some pretty good junkets. maybe wait until the winter. when it's colder back here

kate, thanks let's pivot from crypto to stock. the faangs are off of their 52-week highs. joining us is tim armstrong. we want to talk about what a potential recession would immediamean for add spe spending. i'm wondering what you're hearing from your friends in the industry how do people feel about this. are they cutting back? >> great to see you. i actually had an interesting week starting last friday i was spending time with ron conway. who is a good friend and investor from silicon valley, probably the largest angel

invest n investor in silicon valley a three-hour dinner and finished off with about 30 of hour customers at flowcode in our office and we invited one of the larger pe leeaders. i think sentiment on the tech side is that this issues we're facing are going to be someplace between a financial crisis and the dot com blowup i think the growth investors have incredibly slowed down. some have turned them all the way off. the large cap investors seem like time's on their side, so they're waiting. so i think the tech business and the tech market got the huge tail wend. the valuations have gotten really crunched. i think there's a lot of throwing the baby out with the bathwater. there's a lot of great tech companies that are getting to the valuation point, less risky

to invest now than i think it was last year at this time or last fall when valuations were probably not 100% real and i think the knock-on effect of this is going to be similar to the dot com bubble. streaming video's going to get a big benefit. there's going to be a negative when the venture-backed companies lose their ability to spend customer acquisition dollars almost at any cost, and i think that's going away right now just like it did in the dot com bubble i think the prices have come way down there's probably going to be some bumps in the road but i'm bullish long term. i heard kate's report. i'm super bullish on crypto for a bunch of different reasons,

but i think that market was probably over valued but i think long term that's going to and very valuable industry >> point you make, the idea that they can throw funny money and try to bring in new customers. that's not the case anymore, because there's no more plik wi liquidity to go around and that has to kill a lot of business models >> look, let's just go to the, i'll use ads as a proxy for what happened the last couple years ads globally grew at 21%, which is not healthy it started off projecting between 12% and 14%. all those got revised down to 8% to 9%, and continualdigital part if you take out political and

the world cup at the end of the year, those numbers might be more drastically down. i think the bottom line is the customer acquisition dollars in tech are only going to be spent by the advertisers and customers and people who know what their roi is if you have a negative roi, those dollars are probably going to go away they are less worried about customer acquisition than pricing options. and some of the stuff that's happened in the public markets has started happening in the private markets, and i think that comes with a lot of hr-related issues that aren't about customer acquisition i think you're going to see a three to six month period where people are resetting and repointing at where they're going to go for the future >> listen to you for a long time we've known each other for a long time, and i defer to you on a lot of this stuff, technology, because you're so far ahead and so much better versed in a lot

of this stuff. so when you talk about crypto like that, i need to drill down. because from 65 down to 20, where we are now let's say bitcoin. that's got people that have been nonbelievers the entire run. that has those people saying it's worth zero again. and there's no inhasn't value, and it's a ponzi scheme. and the most recent was bill gates who said crypto is entirely the greater fool theory and then you or peter thiel or the guys that can run circles around anyone on the street in terms of technology. what is it you said about crypto that's so promising. are you talking about blockchain bitcoin? or are you talking about all of the above? what is it that you see that warren buffett or bill gates warren buffett wouldn't give 25 dollars for all the bitcoin in the world. what do you see?

>> i see two things. let me separate crypto from blockchain for a minute. >> but i think they're related let me start with block chain. when you see the issues right now in the downgrade in advertising was blamed on two things global issues, macro, and the data changes that are happening at apple and google. so that's how severe that data change is. and what blockchain is going to allow people to do is to bring the centralized data and put it on on top of business and put smart contracts on things. you look at tv advertising we do a lot with you guys and a lot of other partners in tv. i think the tv business is undervalued by double. because it's not able to be tracked in a very specific data-driven way the way digital is and i think as blockchain comes into that and really starts to help put data against it and

loyalty and there's a whole bunch of strategies that i think will work. they're starting to work now, and they're going to work long term >> how about bitcoin we're running out of time. >> so bitcoin, joe, i think when you look at like the cryptocurrencies, i think they attach to that, to the blockchain and the fact that you can have a globally-transferrable value attached to data is going to be the difference and i think there's a disconnect when you look at how data works and how financials work, there's a time difference right now. all the day tax including a flowcode coming off our products for people are real time the financial institutions are not real time, and there needs to be a much faster way for money to change hands and money to be attached to data that's why i think crypto and blockchain, a combo of those two things is going to be really important. i understand people's theory about why it's not valuable, but i don't see it as a stand-alone

unit of economic value you see it attached to where thal this decentralized data is goin to go. the combo of those two thing i sat in the back and talked to all of our customers they're super excited about it maybe they know less than warren buffett and bill gates and everyone else, but i see a different world evolving, especially where data's going. >> i wanted to hear that those are things veri have to p into my slow-thinking mind and kol l collate it and put it all ay ototh stpportunity, you're watching "squawk box" on cnbc.

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let's get down to the new york stock exchange and check in with jim cramer. jim, it's been a heck of a week. do you think we've felt enough pain at this point >> i do feel we've gotten to a point where we've been in a bear market for quite some time some people are talking about how we just got in a bear market you and i, becky, know that this bear market has been going on since september when the fed started talking tough. we're all kind of beleaguered from it. people say let's sell it, these are dip sellers. yesterday we are a climactic selloff, european sellers came in and annihilated our tech

stocks i think we're okay, i actually think we're okay today >> we're three- -- heading into a three-day weekend. people are nervous heading into it i'm not that nervous at this point. >> whatever you were nervous about got realized yesterday yesterday was a capitulation day and we're acting like, it was just another bad day i don't think so it was a day why people said, i don't want anything to do with this market. that's what we've been waiting for. we still don't have the undergrades that i want analysts to do. yesterday people said, i don't want to hear about it. this is the beginning of when you don't open your statement. yesterday was just a horrendous day, and i think it was a day where everybody just said it's

over and that may actually be important because people have been hanging on. >> they have >> jim, we were just talking with tim armstrong about bitcoin. did you hear tim armstrong, he's pretty smart do you think bitcoin bounces from here or is it over? >> i think the people involved with bitcoin have to take another stand. we need some guys to just say, look, this is the level. that's typical of what happens when it's about to really dropping by. so they come on air and say -- we had saylor the other day, if they changed the margin rates on crypto, he would be out in a second they can't let it go down anymore. >> do you think it will?

are you saying it goes down another 50% or another 100%? >> i think it goes to 12,000, where it was before this whole fiasco began >> still a lot, though, for something that we don't really know what the heck it is >> it really isn't anything, right? maybe it's like a jackson pollock. >> it's like a distributed ledger >> lobchain, if i have to hear about that one more time everybody's sick of crypto they're sick of everything maybe that's a positive. >> let's hope. jim, thank you, see you in a few minutes. "squawk box" will be back in a few minutes. what if you were a gigantic snack food maker? and you had to wrestle a massively complex supply chain to satisfy cravings from tokyo to toledo?

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an update for you on a story we told you about earlier in the week crypto hedge fund three arrows capital tells "the journal" it has hired legal and financial advisers to help work out a solution for investors and lenders after suffering heavy losses from the selloff in crypto that could include asset sales or a bailout the company's founders tell "the journal" there are still believers in crypto. they told "the journal" "we are still committed to working this out.

we just were talking with jim a little bit, serat, about some of the characteristics of yesterday, coming after the previous ten days and the previous two months, and maybe there was some -- we did hear a little bit of a flushing sound or a climactic selling session >> we did, joe and it was across the board. and yes, tech really took a beating. so did energy, so did materials. energy was down 5% you are seeing sellers coming into the market saying, hey, we've got to take some risk off here, and that's on the winners too. when you start seeing that, the indiscriminate selling, that shows that, you know, we're looking to somewhat of a bottom. but i think the next catalyst we really need are either estimates coming down by wall street or companies themselves kind of bringing estimates down. i think that's the true flush. as we know, history tells you, companies, once they actually

take those -- they used to write down and take the estimates down you could see a bottoming process happen especially if there is a little more color as to what the next year or six months look like >> you're not a short term guy, but did you finally stop buying dips and start selling rallies will there come a time in the coming weeks when you start buying dips again, at least certain things, sarat? >> i haven't been selling any of the rallies. clients that have added cash, i've been kind of adding in over time i've been wrong, of course, for the last six to 12 weeks again, this is another let them here, around 3,600, that you add to, because when i look out 12 to 18 months, the average stock in the s&p is down 31%, some are down way more. if you're looking at companies today, i think you really have to focus, the balance sheet is going to be important. the credit market is finally starting to crack, you're seeing spreads getting much wirder. the market is saying you to,

hey, these are the companies that are going to do well and these the ones that are going to survive. the capital markets are frozen at this point, you're not seeing ipos, companies are not going to issue equities at this stage i can't pick the bottom, but we're down almost 24%, maybe it goes down even further, but i think when estimates get revisited, there's going to be an opportunity >> i'm going to take a chance here at the last minute, sarat, we got to go, but it's a nbc property the u.s. open, i know you've had some experience at that place. i guess i forgot the ryder cup, that's one of the coolest looking courses i've ever seen >> it showed really well you've got the fescue there with the old school course. i think it will be really great going into the weekend >> you've been in a lot of those bunkers, haven't you, yourself >> i've been in more of those

bunkers than probably all those players on the site. so i can tell. the key there is just stay on the fairway and make your greens it will be easier for them to do than for us. you can see, when they miss, what happens >> if i throw it, i might hit the fairway, thanks, sarat, i got to go. the markets have some gains a little bit, enjoy the three-day weekend for juneteenth "squawk on the street" is next good friday morning, welcome to "squawk on the street." i'm carl quintanilla we have a bounce in store, not enough to prevent the worst week for the s&p in three years futures point to a bit of a relief rally the s&p, worst week since 2020 >> plus shrugging open recessi