watchers buying a telehealth company. giving access to obesity drugs stock is jumping it is tuesday, march 7th, 2023 "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 kernen andrew is off today. you will see a mixed day for the markets. the dow and s&p up a little bit. nasdaq down a little bit this morning, there are green arrows if you look at what is happening

with the treasury yields, you see the 10-year treasury is yielding 3.93 privatize -- as we get ready for jay powell >> the housing market is not great. big story today. housing market cools marge r mortgage rates are higher. it translates of how much income you have after shelter >> it translates into whether people are willing to sell their homes. if you sell a mortgage you locked in at 2.9% and have to get a new mortgage at a higher rate, that keeps you from doing that that means there is not a lot of supply. >> that is the ben franklin close. that is, okay, stop. pi pivot. on the other side.

restaurants, air travel >> there is concern with the hiring market hanging in there and you could see rents pick up. there is a delay in that employment market has been strong and rents may pick up >> people make more money and spending it on restaurants and travel >> places they want to go. >> it is all pandemic related. is it related to how much money we spent kevin mccarthy was on yesterday talking about the interest expense in the future. it will be $9 trillion total cumulative and in the next ten years, it will be 10 or 11 i would take the over. if rates are higher for longer, the interest is -- the cbo >> you are worried about inflation. as inflation goes up, wages are going up, but not keeping pace

with the rate of inflation your standard of living will decline and hurt people at the bottom the most. >> inflation is an insidious thing. so is higher unemployment. president biden has an op-ed in the times the budget he plans to release this week, which, we have not done a budget in a while, will increase the increase in the medicare tax rate on under and unearned income above $400,000 the president said that tax along with savings from allowing medicare to negotiate lower drug prices would keep the trust fund solvent beyond 2050 without cutting benefits that may be the beginning of some type of negotiation that is the thing. vice president pence talked about that where you don't necessarily have to cut, but fix

it. >> this is going to be an issue in the house republicans will not go along with it. he had the house and senate until january. if you wanted to do something like this, you absolutshould hae it earlier when you controlled all three. >> yeah. that 400,000 number comes up again and again and again. it depends on where you live >> sure. >> new york city you probably aren't -- you are doing well you are not -- that's for married. >> yeah. the ftc voted to extend the public comment period to ban employers from imposing non compete. the ftc will accept comments on the proposed rule until april 19th which was pushed back from the march 20th deadline. commissioner christine wilson

said the request was received to extend the period. in a statement, she noted the proposed rule is a departure of years of precedent and prohibit conduct that 47 states allow this gets interesting. almost a form of indentured servitude or protecting your brand. it depends on the situation when you look through these things. i know salons where they have done this and you come in and walk in the door and washing hair, you have to sign a contract that says you will never go to another salon within a 30-mile radius. >> and you need an nda you hear all kinds of stuff in salons you can't say anything i go there just not for that long >> you hear it >> you do. people hear things that i say, probably jetblue said it peexpect the justice department to sue

blocking the planned takeover of spirit air the ceo said the regulators said from the beginning being intent on stopping the merger he said jetblue will contest it in court jetblue and spirit agreed to combine last year in the $3.8 billion deal it is piddly they are tiny. it would be total 10% of the air traffic? they can't compete now with the majors >> if you have a low-cost provider in a market, it brings everybody's prices down a little bit. >> jetblue is not a high -- the justice department and other government agencies have at other times argued that jetblue brings down cost now they are saying this right now, the justice department is not letting anything go. it is crazy and probably not

great. >> the highest number of anti-trust actions ever taken with this justice department >> this would create the fifth largest airline in the u.s they say some of the majors don't fly to small cities aa any more they say it would make it more competitive to compete against the majors if they got together. the attorney general announced a settlement agreement with the airlines in florida to bring new jobs to florida. jetblue shares closed 1% higher. spirit stock fell 8.8% if it is not the justice department, then they have to get by the other agencies. anyone can block it. what is the other one? fcc? >> i heard it this morning >> labor department.

oh, no, transportation department >> say they will not give them the certificate. >> you can't just -- if you approach everything with a no, it is not what you are supposed to be doing. >> puts a freeze on things have you seen anybody try? that's why there is so little m m&a activity right now. >> it has gotten cheaper >> i'm concerned about the demand picture making them not as cautious as the past. we will talk later today with dennis from the airline. >> another issue with a nine-hour flight >> i saw that. >> people hurling. >> taking off from north carolina and wound up in myrtle

beach. the short flight and trapped overnight with a closed airport and no restaurants open at myrtle tbeach. some broke into the bar. there was another near miss at logan. that comes a week after the other near missi we will have more on that. are we good at what we do with the number of crashes here the very low number of crashes and fatalities or are we lucky we have so many inexperienced people in the positions and ancient system in terms of air travel >> 50,000 takeoffs and landings? you need luck. you look at how everything else works. it is not surprising that someone overlooks. this is where you need the old

ge signal. one mistake and 12 billion you should do that with flying >> we are pretty good at it, but a number of near misses that has agencies looking into it. in the meantime, shares of ww international, weight watchers, are sharply higher after the company is buying digital health company sequence. a service that offers tell health visits for doctors to treat obesity including ozempic and wegovy >> i don't know. do i look like i need a weight loss drug? >> ozempic >> o, o, o -- i want to find the advertising agency >> you kind of are >> find them >> ww says it sees the obesity

and diabetes drugs as an add to the current offerings. the chief science officer says they have not interest in people losing ten pounds for a reyouni, but would help those who need it we should note that the ww market cap is $303 million it is more than yesterday. up 11% today >> one viewer points out they are not near misses. they are near hits be specific. i'm hearing people who do this there are after effects when you stop don't take a diabetes drug and stop eating. i should talk. stop eating and exercise we will talk about this? the masks off man an date. we have a mask off mandate we have mask off mandate

make sure you check with your local listings to make sure whether you have the mask on mandate or mask off. shoplifters in new york city robberies or atms or whatever you are knocking off on a particular day mayor adams now has mask off mandate. >> you have to take your mask off to see who you are so the clerks feels safe. this happened when a clerk was killed in the bodega >> i don't know what our friend will do. your mother, your sister what do i do i don't know which mandate i have to do what they tell me which is it? >> there is a reason for this. it goes beyond safety. >> really? the last reason was good to wear a cloth mask driving in the car alone? >> a pnc bank i would go to and it had a sign before the

pandemic that says you are not allowed in here with a hat or mask they changed it to wear a mask to enter >> no one thinks about this. just do what the government tells you, becky, and don't ask questions. >> the crime in inner cities, but spread to the suburbs and organized crime. it is more than the mask mandate. talk to the national retail federation it was almost $100 billion issue of theft in tores. home depot and target has to mention it there is so much stuff stolen and the billions of dollars. it is a headwind >> shrinkage >> that is pnc this is the situation where it needs to be addressed. there has to be something done about it it has to start with the laws. it is not just masks

a lot of times, it is not a felony or crime below a certain threshold. as a result, you have organized crime hitting a store and taking everything out >> you saw how many carjackings in d.c they were going to lower the penalty for jackings president biden had to say no. i guess you are not taking that trip in your car >> no. anybody who wasn't following four people kidnapped. >> carolina. a white van. >> a woman who was going to get a surgical procedure >> i saw the hot spots down there where you should not go. it's everywhere. not everywhere, but 10 or 12 places where u.s. authorities have suggested you do not visit

at this point. cartels. then the mexican president says it is safer down there than it is up here you were just talking about that when we come back, apple shares are ton the rise. check it out up 46 cents to $159.29 we have a roundup of the tech layoffs at meta and the new bill that could impact tiktok. u e tcyoarwahing "squawk box" and this is cnbc >> announcer: this cnbc program is sponsored by baird. visit bairddifference.com. did you ever stress about us having three kids? no, that was always part of the plan.

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i screwed up. financial future to empower what's next. mhm. i got us t-mobile home internet. now cell phone users have priority over us. and your marriage survived that? you can almost feel the drag when people walk by with their phones. oh i can't hear you... you're froze-- ladies, please! you put it on airplane mode when you pass our house. i was trying to work. we're workin' it too. yeah! work it girl! woo! i want to hear you say it out loud. well, i could switch us to xfinity. those smiles. that's why i do what i do. that and the paycheck.

welcome back to "squawk box. apple shares are on the rise steve kovach is here with more on the move. >> apple rallying over the last two trading days after two analyst calls. up 2% yesterday after the goldman sachs coverage with the buy rating at 19$199 target. average price target is $169 goldman's call follows morgan stanley of $180 from friday. what is driving this especially as sales slip from the pandemic boom.

it is the install base or the devices in use today those are drivers for the services business which helps boost margins and drives up how much money per user apple can make goldman said we believe the market focus on slower product revenue and strength of the apple tecosystem. there are headwinds in the near term foreign exchange and falling advertising and slowing app store growth on the hardware side, ar headset that we should see in june, is not expected to move the needle for apple. it is too expensive and experimental both see demand for iphones spurring another super cycle in sales like 2020 and 2021 >> that's apple the.

-- apple. let's talk about this story. a bipartisan bill addressing security concerns with tiktok. that is said to be revealed in the senate today the committee spokesperson said it is resis sponsored by senatos warner and thune warner said the bill would not be limited to reining in tiktok. he will join us in the 8:00 hour this is a more forceful attack on tiktok. >> we have senator warner on next hour who is a sponsor of the bill to talk about this. what i'm curious about is why is the onus on the president to make the decisions that is what this bill is seemingly doing. giving the president the authority. >> doesn't he have the authority already? >> on the treasury level we went through this with the trump administration that didn't work

they need something more on the other side of the coin, let's say this happens, tiktok gets banned. yesterday, investors thought it was snapchat there are other companies that benefit. i was talking to a colleague in mumbai yesterday and she said tiktok is banned in that country. people use youtube shorts. there are companies like that which stand to benefit if tiktok is banned. >> why is it banned in india >> same reason for here. >> they have done something? >> despite the relationship with china. >> this is us being painted as we're so out there >> we saw what china said today about this stuff you know, there is that aspect of it going on over there, too what is really interesting is over there, there is a whole influencer economy growing because they don't need tiktok

they can use shorts. you can see kids use the app it will not be sucked off your phone. it is not in the app stores. people will get around it. you can use the vpn apps i guarantee everybody will get a vpn app which looks like your phone is in france you download it from the french app store. >> i have to write this down for when warner is on. >> youtube schwartz? what >> no. youtube shorts >> not youtube schwartz. >> short pants >> short stories. >> i don't go on youtube i don't go on youtube schwartz >> if you had youtube on your phone, you have seen it. >> it comes up i send out one a lot where someone said they will end the fossil fuel industry that is one clip i send out.

>> ask senator warner. how do you get around it if people download from the french app store? >> s-c-h >> yes >> one more for you, steve there are new stories. meta is planning a big round of layoffs to affect thousands of workers. this is after the 11,000 they just laid off. bloomberg reported the job cuts could start this week. adding to the 13% laid off of the plan in november a meta spokesperson declined to comment about the report to cnbc as they are going through reviews, they are asking people because of the slowdown in advertising, what do you do if you are a manager? who is expendable? >> two things happening. more layoffs to handle the financials and other layoffs they want to get rid of middle management we heard comments from mark

zuckerberg who said middle managers, tell us what you do or get out of here. >> that could be anywhere. >> this is a trend emerging. not just the massive cost cuts i talked to a silicon valley executive last friday who was telling me this is happening across out there in the bay area we are looking at middle management who are the people to cut and trim the fat there yesterday -- >> our producer is saying we have to go >> i wish they won't tell them find something to do fine with me it is something to overcome. >> look at google. our google reporter yesterday said google told people there are not as many promotions they don't want the middle managers making decisions. it is a big barrier. >> exactly if you talk to any google

employee to get anything done, you have to go through so many levels to get through and launch a product. that is why google is behind in areas like that. >> steve, thank you. >> thank you >> i like the rainbow tiktok do you like the mint >> tic tacs. orange >> oh, tic tac. >> the cinnamon ones are disgusting. >> cinnamon is bad with gerd you can't have -- >> real any. >> -- really >> yeah. >> they have a coca-cola flavor one. >> tic tac >> yeah. >> you started it. >> i did i'll finish it >> you will. youtube schwartz and tic tac >> you have gerd >> yeah. >> no way? >> yeah. you'll see things start falling apart

you get over 50, last year, everything heads south. >> caffeine? alcohol? >> wine. i know you know, if you eat it before you go to bed. smaller meals. i don't like that. here we go we told you that ww is geininttg to telehealth and now best buy is getting into home healthcare see how that works details after the break.

just out this morning. best buy struck a deal for hospital care in homes melissa repko joins us with more i guess this is not that big of a leap the geek squad or magnolia comes and fixes my multimedia

problems what about my blood pressure >> they struck a deal with atrium health to install medical devices. the devieces monitors blood pressure and other rest peration rates. it will sell healthcare devices. the initial goal is to provide care for about 100 patients per day. that is equal to a mid-sized hospital i spoke to the president of the best buy health about the partnership. >> we take care of the technology so the doctors and nurses at atrium doesn't have to this smooths out that connection between technology and care. >> she acknowledges the revenue is small, but said it will allow

the company to expand into health care. the deal comes as best buy is looking for growth amid the decline in electronics >> i wondered, but it now makes sense, melissa what is the cost to visit a hospital or spend the night in the hospital if you get feedback at home and check some things out at h inn a big business someone should have thought about this >> they have been doing this with aging at home selling great call devices a company they acquired to allow people to age at home safely this is an extension of the strategy, but with different conditions someone coming home from the hospital after a hip transplant or cardiac event someone stable enough to be home

and get visits by telemedicine >> you know, the whole home infusion another term >> for dialysis? >> it is not just dialysis just where the service comes to you. >> preferable. >> yeah. >> remember -- >> no one makes house calls. >> aetna used to send someone out. huge number of problems if you take a fall. if they prevent a few things, it is the house call. it is cheaper than going to the hospital and better for the patient outcome. >> melissa, thank you. geek squads are geeks and smart. the stuff they know. i leave. >> make it work. coming up, president biden proposing a medicare tax hike for income above $400,000.

we talk taxes after the break. throughout the month, we are scelebrating women's heritage women leaders and cnbc contributors here is the brenda >> my advice is to follow what you love find the passion in life and follow that industry what i have found successful is looking for ways to challenge myself and push myself outside of my comfort zone think out of the box and learn new things as a mother of two kids, i'm always juggling work or at home. finding the work-life balance is a struggle have a strong support system in place. at the end of the day, you own your journey go after what you want the future is yours.

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good morning welcome back to "squawk box. we're live from the nasdaq market site in times square. green arrows this morning. looks like the dow indicated up 27 s&p futures up 6.5 nasdaq up 38 checking the futures which we just did. >> check again >> for emphasis. they are so interesting. >> still there paint drying >> can we look at the 10-year? lawmakers in several highly taxed states proposing a new wealth and income taxes to address budget deficits. lower tax states attracting capital and wealth and more high earners go to texas and florida. we have jared warner and matt garner with us

normally, matt, i would feel bad about an intro like that we are drawing a lot of conclusions, aren't we you know, looking at the facts, i think the conclusions are relevant because the high tax states, ones already highly taxed, are the ones which seem to have the budget problems. that is where everybody is leaving. six of seven highest tax blue states have lost 5 million residents. 6 of 7 with the residents, so goes the tax dollars. you raise it more and more and leave. that's the definition of insanity thinking it will change >> thanks for asking the question i think the thing that has been happening over and over again is people have been forecasting

economic calamity in states like new york and california and half a dozen other states with progressive income taxes in place for decades. they keep making the forecast and not coming true. migration happens. it happens, obviously. the people who tend to move frequently from state to state with migration from here to there, young college grads and low-income families and people looking for higher pay and better quality of life and better schools state tax rates are just not central in the decisions i would agree migration is happening. the way to trace it in a systematic way for tax rates is dubious. >> i just know there are times i thought about it, matt, and i think about it especially after what happened with s.a.l.t the state taxes are not

deductible if you are in a state with 13% state income tax and you get an opportunity to and you can't deduct it anymore and you have an opportunity to move to some place with zero, you don't think -- jared, is it about young people deciding to move because they like texas or they like steak or something? is that why they are moving? >> if that is the case, we are not talking about the consistent migration from california and new york and other states that have the high taxes. obviously it is not the only issue. if it were just young people or the pattern they were talking about with matt, we would not see the consistent migration from the high tax states the people leaving are the people who help fund the budgets of the states. you talk about the wealth tax. hitting a small relative number of people. they are mobile people who are

inn cesendfante -- incentivizedo leave. that is higher than the state's 13.3% income tax rate. are you thinking about going another state? i think so. >> matt, there are things that we all want and some of the blue states would sell whether it is ed indica education or calquality of life. all that costs money is there a way to do both? i don't know is there a tax that isn't quite as deleterius? anything less harmful to the economy? >> a hierachy of taxes the

states can look at there is something you are calling wealth taxes and some are marginal modifications of existing taxes there are a few states talking about carrying back capital tax breaks on the existing income tax. broadening the estate tax. these are easier to administer because they already exist because they are based in part on federal rules so i think it is worth looking at those things as well. the -- there is no reason to think that any of these taxes from property, sales and income taxes that form the balance of what states do right now to the broader property taxi would argue that you are looking at with the wealth tax to think these are taking on their own are going to be an economic doom

for the states because they are always connected to social policy outcomes that states want to achieve >> matt, let me ask you this they are telling me we have to run. i know billionaires and it is a valid argument they can sit on stepped up gains forever and take loans in general, the 1%, do you think they are under taxed do you think we are not a progressive -- you think our system is not a progressive system at this point, matt the top earners do pay the majority of the taxes that are collected and the bottom half might not pay any except sales tax or social security >> there are two ways to look at it state and local taxes taken on their own which is at stake here today. you are look at combined -- >> we're pretty progressive. people that say it is a fairness

issue. i think there is a fairness issue. no one should pay more than 50%. you shouldn't have to work until july 30th to pay uncle sam whether it is state and federal. do you think, jared? how about may 30th or june 30th? may 31st can i work that long paying off my bills to uncle sam? >> we have a progressive tax and transfer system. both sides, right? both taxes and how the federal government and state governments spend money. i take issue with matt saying it is addressing the preference rate on capital gains. 29.776%. federal is 20% on long-term capital gains. almost 50% higher than the federal rate long-term gains. short-term gains, you could be paying 70% in you live in new

york city, federal, state and local combined people will respond. >> it is a longer conversation it is a longer conversation. i'm sorry. they are playing the music it is a three-hour show. jared, thank you matt, thank you. we'll have you back and talk more all right. when we come back, shares of rivian are falling in the pre-market we will tell you why next. and later, senator mark warner will join us on the bipartisan bill toesic rtrt tiktok and other foreign technology stick around

shares of rivian are falling after the ev maker will sell $1.3 billion in bonds to shore up capital the money from the offering will

be used to help launch the company's smaller r2 vehicles. that stock is off 6.3% >> it's not a convertible? weird. might be a convertible >> if you have the bonds issued at higher rates. a lot of people have been taking money for a year to six months if you need money now, it will cost you more. >> are you happy with the cars and eyes thomas the tank engine >> beep-beep >> gordon. when we come back, we talk about the a.i. gold rush and companie companies poised to benefit. "squawk box" will be right back. of you wn. ♪ ♪ something you can have and hold. ♪ ♪ i'd build a road in gold just to have some dreaming, ♪

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venture capitalists are pouring hundreds of millions of dollars into the generated ai startups that capital infusion has accelerated the ai arms racy as companies both big and small hope to shape and profit from the future of artificial intelligence joining us to talk about what is next for ai is dan premak, axios' business editor dan, let's talk a little bit about this, what's happening it seems that everybody is talking about ai, who has a real plan, who doesn't, how do venture capitalists size this up >> they are sizing it up by going land grab, just putting hundreds and hundreds of millions of dollars into lots of different startups, some of which are direct competitors to open ai/chatgpt, some of which are in different areas, focused on images and videos this is what we were seeing a year or two ago. the difference is scale of

capital. those companies might have been getting $5, $10 million, these companies are getting 2, 3, $400 million. >> that's kind of the way venture capitalists operate, it seems to me. they find the next big thing and throw money everywhere realizing it's like buying a lottery ticket, it may or may not hit. as long as you have some that hit, it will take care of the losses out there >> a couple of months ago when you had chatgpt come out, some were stunned about what it could do this is the next revolutionary company. in the couple of months sense then they've gone from really interesting company to maybe we can beat them. let's find something that can beat them or take a piece of the eventual market share and build the next company google, who kind of should be leading this race and has deep mind internally, they just invested a ton of money into one

of these ai startups even the big legacy startups and what microsoft has done with ai giving it billions of dollars. >> if we're talking about an environment where there's less money to go around, all of that has been shrinking, the liquidity has dried up, does that mean the go-go days are still there when it comes to some of these initiatives? that's where the hiring is going to be and the spend is going to be. >> absolutely. venture capital, the overall dollar invested has gone down a little bit but most of the firms out there, particularly the big firms, they raised their funds while the go-go days were still going so they're still sitting on an enormous pile of dry powder >> how do we know who the winners and losers will be >> wait. the business model isn't exactly clear. you have all sorts of companies, nontech companies, that are

trying to productize ai. i was meeting with the ceo of a digital health company and they're toying with it they haven't put anything out into market yet but i think every company is looking at these things internally. but how much they're actually going to pay for them, how valuable they'll be, whether it be open ai or any of these rivals are able to actually monetize this stuff, still wait to be seen if you're a venture capitalist and think this could be the next google, it's worth the flier, even if it's an expensive flier. >> what do you do if you're in financial serves or somewhere elsewhere it's not your expertise but you're looking around i think brian moynihan mentioned it's something the financial services industry still has some work to do with. >> every industry does, right? really what you do is take part of your tech team, part of your development team and tell them to start working on this and start to play around with this really if you're somebody who's been around long enough and there's not that many executives

that were maybe around in 1997 and 1998, it's what the smart ones said to some of their people about the internet. we don't know what this is going to be necessarily, we don't know how it's going to apply to us but play around with it. even when mobile showed up 15 years ago. >> dan, thanks it's great to see you. >> thanks, becky. coming up, a big lineup still ahead. the ceo of hess will join us from a major energy conference in houston and senator mark warner will tell us about the bill that hohe's unveiling today that will put restrictions on foreign technology like tiktok "squawk box" will be right back. i am here because they switched off egfr gene mutation and stopped the growth of tumor cells. there's a place that's making one advanced cancer discovery after another for 75 years. i am here... i am here.... because of dana-farber. what we do here changes lives everywhere.

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good morning wall street awaits jay powell's comments on the economy. futures inching higher ahead of his testimony on the hill. and a new bill that could put restrictions on tiktok being introduced today in the senate we'll look at the difference between tiktok in kmchina and tiktok in america. plus another scare in the air. we talk about recent close calls. incidents and the state of the nation's aviation system the second hour of "squawk box" begins right now good morning and welcome back to "squawk box" here on

cnbc live from the nasdaq market site in times square i'm joe kernen along with becky quick. andrew is off today. u.s. equity futures at this hour, it feels like sort of treading water we get some technical signs now and again but we seem to be waiting for each data point or for jay powell to say something or some other fed head to say something. and it's all based on -- there's the equity markets, but it's all based on treasuries. treasuries don't know what to do in between data points and in between fed speak. so we did get above 4% for a while and it looked like the gap between expectations and where the 10-year was trading started to narrow. but here we are back at 3.93 we're supposed to be off to the races and we're not. >> it doesn't matter what jay powell says because on friday we get jobs numbers next week we get cpi. >> pce i think is wednesday this

week so he's going to say one thing but we know he's data dependent. as soon as we see new numbers, we're not going to know if what he says sticks. >> would you do anything in between these things we sort of your biding our time. earnings, but we have no earnings really right now. so we've got nothing to talk about. that's why we're talking about tiktok and gerd. >> learning all kinds of things. dom chu is here. he does have some of the movers of the morning before we start things with the market dom, what are you seeing so far? >> what we have are fundamental drivers outside the technicals in the marketplace, some of the individual companies being affected right now we'll start with an airlines the friendly skies not turning more friendly, they're getting a little tense with regard to jetblue and spirit airlines. spirit is up premarket and so is jetblue, just about flat on the session. no, now up about two-thirds of 1% the planned merger between the two airlines faces mor e

increasing regulatory scrutiny robert hayes made comments to "the wall street journal" they are expecting the justice department to try to block this deal the suit could come as early as this week so it could be transportation department with issues, it could be doj, so those shares are up in the premarket. next up we've got shares of meta platforms, the company that owns facebook, instagram, others, is looking at another round of job cuts potentially in the thousands. it could come as early as this week if it does happen this would follow roughly le11,000 jobs tht were cut by meta last fall meta shares as you might suspect given some of the cost-containing measures, these things react positively to the news even though the job cuts news is negative meta platforms is up 1.5%. we'll ending with an analyst call on amazon goldman sachs is naming it one of their top picks they say it's a compelling

risk/reward at current stock prices they also see better revenue growth and profit margin trends as well. they're up fractionally premarket but over the last year they have lost a third of their value so that downtrend is in play this makes it a more compelling risk/reward at this point, so says goldman. >> i can't believe meta. did that hit 8 -- did you tell me to buy at 80, dom was it at 80 where is it now? >> we've had a number of conversations but i don't make buy and sell recommendations. >> you could have winked or said, whoa, that seems cheap you could have done body language there's a lot of things, some type of code that you could have -- >> remember, you could have said it was almost like -- we talked at one point the last several years the idea that the faang stocks, how that was a thing, and netflix had rallied by massive amounts off of its lows. there's a school of thought, i guess, joe, that some of these larger mega cap comm services,

if they fall as precipitously as they have, some people find some value there so meta platforms is one of those. >> the knock on bitcoin is you have no idea what it's worth one of the most well known social media companies and technology companies in the world is worth somewhere between 240 and 80 in ten months. >> here's what i would say i would say that we know what makes a market there's obviously been a lot of bears in this particular stock but i feel as though there are people who have found compelling value with regard to even the metaverse and all the money they'll have to spend on this product. >> they got other stuff. it might be in spite of that stuff. >> they have got scale, man. they got scale i still use instagram quite a bit. >> do you put the goggles on >> i have not put the goggles on yet. i just got back from disney and some of the rides there have that kind of virtual augmented

reality type experience. it gotme thinking, i enjoyed it >> you did some of that stuff makes me sick. >> it did. i did the avatar ride and that's where you put the goggles on and you fly around i thought it was amazing so i don't know. i was a video gamer when i was a kid too. >> did you have a tail >> my virtual person had a tail. >> it actually can sing around maybe. a third thing to grab on with. dom, thank you >> you got it, guys. >> when you're going through the trees. >> yeah. >> swing faster. >> and you plug in the thing and get memories and stuff like that you've seen that. >> that's not all you do when you plug it in with those things. >> oh, really? >> moving on go ahead, make this transition >> dick's -- yeah. dick's sporting goods just out with its fourth quarter numbers. the company reporting earnings of -- you can't make this up

earnings of an adjusted $2.93 a share, 5 cents ahead of estimates on revenue of $3.6 billion, also topping expectations and comp sales were up 5.3%, beating estimates. wipe that smile off your face. of 2.3%. it more than doubled its dividend to $4 a share for the full year the company sees earnings in the range of 12.90 to 13.80 a year. next week we'll hear from executive chairman ed stack in a first on cnbc interview. we'll see whether he's running for president still. no, he's not he talked about it at one point after he banned a couple of guns from dick's. he thought maybe that would mean he could be president, i don't know markets take a wait-and-see approach ahead of jay powell's testimony before congress today and tomorrow

for more on how that testimony could impact market sentiment, let's bring in kristen bitterly, from citi global i don't know if you were watching earlier, but we are sort of waiting for data points. the bond market and stocks, i think, kristen, in lull periods. not a lot of earnings. but we do have this testimony coming do you expect that to be market moving or are you waiting for friday and the inflation numbers next week? >> i think we're waiting for friday and inflation numbers and i think even chair powell wished that some of this order was reversed in terms of his testimony versus the jobs report on friday. the testimony, what are we expecting from that? i think we're expecting a lot of what we've already heard out of the fed and that 25 basis points is probably the base case, but he's going to talk about keeping it open, that they're data dependent, and not eliminating the probability of 50 basis points because right now the market is pricing in about 30 basis points for the next fed

meeting. i think he's going to focus on being data dependent and keeping his options open but the number that we get on friday is significant on the back of what we saw on the january jobs report. we want to see whether some of those data points out of january were anomalies and the seasonally adjusted numbers or whether there's something fundamentally different based on what the fed has been doing in terms of tightening conditions in the economy >> there are strategists that have remained bearish but have seen this most recent surprising move from the october lows and we have the solid january. it looked like we were ready to maybe give a lot of that back. and now we've held up, we've stayed above the 200-day moving average. some of them are saying, you know what, this may have a little more staying power than i thought but they're still not getting bullish. are we going to go back down, kristen, and below 3800, below 3600 on the s&p?

>> i think what's really interesting and what happened to the market year to date is just simply there's a lot of whiplash we're trying to hang on to different types of narratives. when you look at january and the performance that we saw that was really, really strong in january from both an equity and fixed income standpoint, when you break down the composition of that, it contributed to 40 to 45% of that rally. so it wasn't a quality rally february obviously on the back of the resilience of the consumer and strong jobs report, the market quickly tagged on to that narrative is it higher for longer or maybe the economy is stronger than anticipated. so looking right now, i think we're in a little bit of a holding pattern. but one thing that we're keeping in mindi, and this is why we're playing against in our portfolios, we have this march fed meeting but then we have until may until the next fed meeting. and so there is a lot of data that is going to come out in terms of q1 earnings

we'll get all of that data so i think, yes, we're going to see some choppiness potentially short term but there's a lot of data so i don't think that we can be very definitive on the fed's trajectory from here because as we said they're data dependent and there's a lot that's going to come out over the next two months. >> and i could tell you even if i knew and correctly predicted what would happen, i still don't know what it means let's say that the economy stays stronger than we figured, which means earnings revisions didn't need to come down as much as we thought. so earnings could hold up better than people think, but that means the economy is too strong, which would mean the fed needs to stay vigilant so does the market go up with that because earnings or okay or does it go down because the fed stays higher for longer? >> it's an excellent point because there's a lot of conflicting signals in the market every data point, i think we're

struggling from a lot of confirmation bias and trying to see what we want to see in the data take the retail sales number that came out that was a positive 3%. when you look at that on an adjusted basis, it was actually down by 16%. and so the headline looked strong, but digging into the numbers it tells you a different story. so i do think what we're keeping in mind is we have to recognize that there is a cumulative impact of all of the tightening that has happened with rate hikes and with kaquantitative tight nipening that will be reflected in earnings. interesting point about the consumer, everyone debates whether the consumer is strong but one of the things we know for certain is interest payments have increased 40% year over year we're seeing more credit fueled spending as opposed to savings fueled spending. recei right now you're seeing an increase in leisure and hospitality.

the question is how long can that continue and that's only one part of the overall market we anticipate that other parts of the market, for example housing, will continue to be impacted so i think that's what we have to keep in mind as we really get through this q1 earnings season and look at the fed's trajectory from here. tightening makes it harder to make money and it makes it harder to spend. >> kristen, thanks kristen bitterly a lot of stuff to chew on there. at least we have something to talk about all the time, don't we, kristen? anyway, thank you. >> thank you when we come back, we head to houston and the conference. hess ceo john hess will join cnbc's brian sullivan to talk energy prices and production and later, the push to ban tiktok is growing. a new bill being introduced today that would give the president new powers to ban the social media video app and others ithf ey pose a security risk "squawk box" will be right back.

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i got us t-mobile home internet. now cell phone users have priority over us. and your marriage survived that? you can almost feel the drag when people walk by with their phones. oh i can't hear you... you're froze-- ladies, please! you put it on airplane mode when you pass our house. i was trying to work. we're workin' it too. yeah! work it girl! woo! i want to hear you say it out loud. well, i could switch us to xfinity. those smiles. that's why i do what i do. that and the paycheck. energy executives gathering in houston brian sullivan is there and joins us with a special guest. that's awesome, brian. you've got your back here, don't you? when are you coming back you've got things to do, places to go, people to see, shows to launch, to educate and inform.

there it is. last call tomorrow night tomorrow night 7:00 p.m. >> i'm going to ruin the ending of the christian bale movie "prestige. i just gave you the plot twist another guy that's this handsome and tall hard to believe but true no, thanks going back this afternoon. get a couple of hours of sleep and launch "last call" tomorrow night zen:00 p.m. eastern time, which is like 4:30 in phoenix. so tune in everybody, thank you very much. right now we have to talk about energy, oil and gas. john hess, ceo and president of hess is with us. i learned two things any day you can learn something is a good day. it's 6:10 in the morning here. number one, you are the number one stock in total shareholder return in oil and gas stock in five years congratulations on that. >> thank you. >> number two, this conference

which you and i have been coming to for a decade plus i knew there was a lot of people here, you told me 7,500. i would have guessed less, but it's packed. oil and gas, energy is back in a big way. is it sustainable? are we going to be here next year crying in our $20 a barrel oil? >> we've seen that movie before. >> 100, 20, 100, 20. >> oil and gas are going to be needed for decades to come in the energy transition. oil and gas are key to having a affordable just and secure position most people don't realize oil and gas are strategic industry for the united states. you and i have talked about it in terms of jobs we're talking about 12 million jobs. more than the aviation or automotive industry. in terms of low energy costs, electricity costs, two to three times less than europe or most of asia because of shale gas, because of shale oil, and also national security. we are energy independent.

in fact we're energy dominant. where china, for example, imports 75% of their oil so this is a strength that we have it's key to our american economic competitiveness we ought to play to it instead of leaning away from it. president biden said i want low energy prices for working class families i want jobs here at home and i want investment in america oil and gas check all three boxes. >> and that's good to hear that and he k knowledged -- the president acknowledged that oil and gas would be needed for at least a decade i'm going to be hungry for at least a decade,i know that, an hopefully longer than that why is the u.s., though -- i'll give you an example. your not an electricity guy but you live in the new york city. there was a report out dropped on a friday night. it's the grid operator we're taking off power plants faster than we're adding new capacity we're probably going to have enough electricity to meet

demand within seven years. literally we may have no electricity in washington, d.c., virginia and new jersey because of cutting things off, not adding enough. that's third world country type stuff. when is america -- why is america almost afraid to say we're going to need this stuff for a while. otherwise we're headed to the thelma and louise andending if you haven't seen the movie, you don't know what i mean car off the cliff. >> i think the biggest thing is having investment and policies that encourage investment. we talk about supply chains on the show all the time. well, energy has a supply chain. and the energy industry really has a structural deficit in investment. >> 500 billion a year according to the iea. >> that's for oil and gas. the last five years, the investment in oil and gas globally was 300 to 400 billion

a year so we already have that gap. jeff curry talks about it, he was on yesterday we also have an investment deficit when it comes to renewable energy the iea talks about 4 trillion that's needed every year. >> trillion with a t. >> that's right. >> who's paying for that >> basically consumers will have to pay for it, otherwise they'll be paying higher prices. you invest now and have lower prices later the key is we need to spend 4 trillion a year each year for the next ten years to have the electricity we need, to have the renewable energy we need to complement oil and gas last year that number was a trillion two this is happening at a time we talk about the fed, we have higher interest rates, we have tighter financial markets. all of this makes the mountain steeper to climb. >> i know joe's got a question here >> john's an old friend. it's good to see you you look awesome

the same as you did 20 years ago. >> i'd say the same to you, joe. you look pretty good too >> when you get the -- i was going to ask you when you get the ev hess truck for christmas, then i'll know that we're definitely making the transition but before i ask you that, i think evs are great but you need to charge them. >> right. >> the worst combination is powering the grid with coal like india and china. oh, i'm driving an ev, i'm so clean, but you charged it with coal the greatest combination is natural gas powering the grid to drive the ev i don't see why people can't figure that out. >> no, it's a great point. i think, you know, the world faces a dual challenge and it's a herclean one how do we get to net zero. and the iea, the executive

director, says more energy is good, more emissions are bad so i think at the end of the day, joe, it comes down to a couple of points the energy transition is going to take a long time, cost a lot of money and need new technologies that don't exist today. so at the end of the day government officials as well as business leaders need to have climate literacy, energy literacy, and economic literacy and balance the three. the unfortunate thing is some people politically just focus on one and don't focus on the other. your point about china and india are key. 60% of their power comes from coal unless we eliminate that the u.s. and europe can go to zero in emissions and china and india are a real challenge when it comes to the energy transition, so great point. >> and they are. and i think to joe's point too, because the electrification tre trend, and when you produce oil, you produce gas as an offset, that's why natural gas fell 14% yesterday because there's just

so much gas in the united states because there's so much oil production as well i think when you look at the electrification trends and energy expectations, it's actually terrifying when you think about what we're going to need let's focus more on your business as well i know david faber did an awesome documentary on your partner, exxon you've got this amazing offshore business there which they love, you're generating revenue for the people and the government as well how big can that be? because the president wants more oil. he's become pro oil, which is good how much more oil can hess produce from the guyana and williston, north dakota. >> guyana is the largest oil discovery in the world in the last ten years we've had 30 discoveries since 2015 we have multi billion barrels of oil potential remaining. we have over 11 billion barrels of oil equivalent. it's in the western hemisphere,

so that's going to be helpful for energy security for the u.s. as well as the world right now we have two production ships producing approximately 400,000 barrels a day. we have a line of sight to six ships producing over 1,200,000 barrels a day. so it's key to our value proposition. basically the portfolio allow us to grow 25% the next five years. we're the only company where we can grow intrinsic value as well as cash returns. >> number one in total shareholder returning over five years among all oil and gas companies. only one company can say that and that's yours, john hess. >> brian, good luck with your show it's going to be a great success. >> john hess, thank you very much for joining us. joe and becky, we've got exxonmobil today, conoco phillips, a big lineup we'll see you all day long here.

>> there must be a gazillion brian sullivans in the world, but only one here. and the aforementioned programming note, the other brian -- no, catch brian's new show premiering tomorrow night cnbc's "last call" explores the intersection of money, culture and policy we do that a little bit at 7:00 a.m. but he's going to do it even more at 7:00 p.m. eastern time when we come back, one week after a close call on the runway of logan airport in boston, the wings of two planes actually clipped each other on the tarmac yesterday. and on a flight to boston, passengers had to subdue a man who tried to open an emergency exit door and attempted to stab a flight attendant in the neck she tried to stop him. he used a broken spoon there were passengers that tackled him and brought him down this is just one of a number of

incidents impacting the aviation system we'll speak to a pilot about these incidents and the stress on the aviation system "squawk box" will be right now. >> announcer: time now for today's aflac trivia question. in what year did ebay make its blpuic debut the answer when cnbc "squawk box" continues the story of my life. no coach, there is a goat here! whaaa! what's this? a thousand dollar hospital bill? but i have good health insurance! gaaaaaap! did you say 'gap'? he's talking about the expenses health insurance doesn't cover. but with aflac, you can get money to help close that gap. aflac, huh? gaaaap! aflac! gaaaaap! get help with expenses health insurance doesn't cover at aflac. official partner of march madness.

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a series of airline close calls, most recently monday at boston's logan airport, has prompted the faa to announce a probe of these narrowly averted disasters. meantime a man was arrested for allegedly trying to open an emergency exit door and attempting to stab a flight attendant with a broken spoon on a united flight from los angeles to boston. our next guest is a commercial pilot who says that the system is under stress. we want to bring in captain dennis tazier, an american airlines pilot with over 30 years of experience. he's also the spokesman for the allied pilots association, which is a union representing 15,000 professional pilots. dennis, thank you for being here we've been watching with growing concern about the number of these instances. is this much really a much larger number of incidents than we've seen in the past >> i've been doing this for over

30 years i've never seen the system under so much pressure right now what's going on is a result of trying to do too much with too little. we have disparate rules for rest for pilots for instance, i'm sure many of your viewers utilize netjets netjets flies under totally different rules than i do at american airlines. and there's a proposal, a consensus proposal that the faa has been sitting on since 2020 we go down the line. phil lebeau did a great job yesterday covering the issues. we've seen a mass amount of pilots retire post pandemic and incentivize early outs now we have a wave of new pilots coming in, experienced but not experienced at the high intensity operations that we have at many of the operations you see going on add to that the training pipeline is jammed up so they're reducing the amount of training for pilots and they continue to

pressurize this system we brought this to the attention of the faa and they gave us a response that is actually a toxic response on a flight deck. well, it's legal and our response is just because it's legal does not mean it's safe or smart. fortunately, the faa has called a safety summit and the military called it a safety standdown there have been too many close calls. we've been calling this out for more than a year it's time to sit down and not just talk about it but get things done. >> dennis, do passengers need to be concerned about flying at this point because the headlines i'm seeing do concern me. if you're anybody who's been on a plane recently, you know it's not a pleasant experience. >> well, we want it to be a pleasant experience, but above all it's got to be a safe experience and our passengers can exhale because having two trained and experienced pilots on the flight deck who are fully rested is going to make the difference between these incidents becoming

serious accidents. for instance, phil referencaustt that went around while another was on the runway, those pilots have a carve-out for their rules of safety and rest this is insane they're in the same airspace thankfully those pilots. and i have an idea of what's going on on the flight deck. you're talking about the go around and making sure these two airplanes don't collide. that takes two pilots, swift judgment, training and experience right now there's record revenue. with that comes record responsibility to ensure that you're operating safely. and right now -- >> let me just ask, you said we should feel safe because there are experienced pilots doing this at the same time, you're saying that the amount of training they're getting may be legal but it's not safe. so should i feel safe in the air? >> yes, you should we are out here now pushing back

on that pressure on the margin of safety. we've kblimplored the faa to taa look at this if the conditions on the road are such that you should not be driving the speed limit, you should not rest and say, well, i was driving the speed limit, we're all safe you've got to adjust your operation and change the regulation and how you enforce it and get out there and make sure that the margin of safety is not pressurized by this situation. >> but what you're saying right now is the faa is not giving you a satisfactory -- a satisfactory reply to this, that it's toxic, and that this is going on. we may be reviewing it but it's still legal right now. so should i worry about this >> that's what we're fighting against. yeah, we're very disappointed in the faa. they're understaffed, underfunded, and that needs to get fixed through the process of the federal government but when they come to us and say, well, it's legal, it's an

y insane response. it may sound like one that makes sense on the outside but we make judgment calls all the time. just because an approach is legal does not mean i executed if i have other factors coming in that comes with the experience right now as phil lebeau said, we have pilots coming in at american and other airlines that are upgrading to captain in their first year, their first couple of years. now, they're great peilots but the last thing we should be doing is reducing their training and for me extending the time between my training refresher courses. we've seen this over a year. i've talked about it on your show and finally now the faa is stepping up. they say they want data. you've got data. you see these incidents. so we're going next week i'll be there. hopefully folks like captain sully sullenberger -- >> just to bring that up, he wrote an op-ed in "the chicago tribune" this month talking about how safety in the skies is paramount. you can't cheapen the pilot training and experience.

what do the airlines say when you talk about this? you're mentioning what the faa says what about the airlines who say there's huge demand for flights, we need to get more up there >> thank goodness we've got captain sullenberger who has lived through an experience and knows what it takes. what the airlines is exactly what you expect them to say. oh, no, we're all about the safety margin and trained pilots and experience but behind closed doors they are lobbying to reduce the atp rule. that's that one that people call the 1500 it's really 750 hours to 1500. i have slide shows that we've gotten ahold of. they have shown pictures of basically a pc computer in someone's basement and giving credit for a pilot to gather hours. it's a -- they're going a back doorway and they're trying to utilize sem imulator credit. i can tell you there's a big difference when you're on a simulator and you're in the sky and real things are happening, two different experiences so we're going to push back on

this. >> i've seen southwest is looking to reduce the training time needed for new pilots as you mentioned, still legal, still going through this what happened with all the retirements? i mean i thought the federal government gave money to all the airlines to make sure that they kept people around so we wouldn't have a problem when things started back up after the pandemic >> well, it wasn't so much keeping people around, it was keeping people here trained and current. that was the beginning of this backlog of training. and it created this decision by management teams and the faa to just say, well, it's legal, nothing we can do here, to actually start to change the production of training through reducing training. and it's not how a safety culture works. we're going to get there, but once again, professional pilots, if you're watching this, be aggressively safe. your passengers are counting on you and that's what matters in the end game for the business and for our moral and professional obligation.

>> dennis tajer, thanks, dennis. >> thank you >> a lot more coming up. the difference between tiktok in china and tiktok in america. we're going to go to beijing for a look into the controversial video p.ap "squawk box" will be right back.

beijing based bytedance is the owner of tiktok which has over a billion users worldwide it is facing bans across the united states but in china tiktok looks very different than it does here eunice yoon joins us with what tiktok looks like in china compared to the u.s. and maybe why that is. eunice, good morning and good evening. >> reporter: good morning, becky. first of all, here it's not called tiktok. here the service is called doyen. from a user's standpoint they're similar.

it's about producing and sharing short-term videos, short videos. but from the start bytedance had structured the two to be entirely different platforms so doyen operates for china in china and it's governored by chinese regulations and its data is housed in china meanwhile tiktok operates everywhere else and has never operated in china. it comes under u.s. law and its data is housed in the u.s. and in singapore the two don't share content according to bytedance they say they don't share management except at the very highest level. tiktok's ceo who doesn't oversee douyin directly reports to the bytedance ceo. even though tiktok has ownership in china, when it comes to china action it's more like a western

app, like facebook or linkedin or twitter in the way that it's treated because it's not actually legally accessible here all of those apps, you need a virtual private network to jump the firewall to be able to access it. now those others are blocked tiktok is not blocked but treated in a similar fashion the issue at the heart of the debate as to whether tiktok should be banned in the u.s. is whether or not you think that bytedance because it is a chinese company would ever feel pressure by the chinese government to hand over data for americans to the chinese authorities. so bytedance -- here again we see a bit of a distinction between the two apps bytedance told me that for douyin, if requested, the company does share douyin data with chinese authorities, in cases, for example, of a crime but when it comes to tiktok, the company says it does not share

u.s. data with the chinese government that they have never received a request and would not provide the data even if asked i thought there was another interesting point that the pr officer had told me and she said that tiktok is governed by u.s. regulation so because of that, it needs to abide by u.s. regulation as well as restrictions on data. guys >> eunice, a couple of questions. first of all, how come the china -- the data in china is stored only in china the data for the united states is stored in the united states and in singapore >> reporter: oh, because i would imagine that with china, you want to house everything in china so it's regulated. but then in terms of why it's housed in the united states, my guess is because it's american data. >> no, why singapore too >> reporter: i didn't ask them specifically about singapore my guess is that tiktok being a global company and having so many different users would be housing its data in different jurisdictions that would be

convenient so singapore, for example, as well as the united states. >> we heard earlier this morning in a conversation we were having that india has already banned tiktok and they do it because of concerns about what's happening there. it's not a unique situation. it's painted as the united states maybe being, you know, too much opposed to china, too concerned about it, but it certainly wouldn't be the first nation to take these steps. >> reporter: no, it wouldn't i mean there are a lot of concerns and i think at the heart of the matter people are just wondering whether or not bytedance would be able to push back on the chinese government and there's a lot of suspicion right now about the chinese government, whether or not it would be interested, say, for example, in looking at the data of an american citizen or an indian citizen and somehow use tiktok in a way. but, you know, it's still -- that question is really still not answered as to whether or not the chinese government would

in any way influence that -- >> i'm not sure why bytedance would be different from any other chinese company that we've seen to this point where leaders disappear. the ceos of companies disappear when they say things that aren't approved by the chinese government. >> reporter: absolutely. there are concerns that there are unofficial ways in which the chinese companies can be pressured. but there's another argument, though, that has come up here and that is that a lot of foreign companies too could face some similar problems if you have a lot of data collected and stored at your company so if, for example, there was an attempt to try to find information about a certain government official who has a facebook account or something like that, then facebook housed a lot of information, that if one country wanted to look for that and hack it, that they

could. so it's kind of a question about as to whether or not tech companies generally should be housing this level of data on people and what can be done about it. >> all right, eunice, thank you. by the way, in the 8:00 hour, a bipartisan bill addressing security concerns around tiktok is set to be formally unveiled today. senator mark warner will join us to talk about that bill an much more >> nice that china is bringing us altogether. we're seeing bipartisan, it's always about china. coming up, the world's biggest companies, how they survived the pandemic. we're going to talk leadership and the lessons learned with liz hoffman, who has a new book on the topic. here are the futures right now they are absolutely flat almost except the nasdaq is up about 30 a reminder, get the best of "squawk box" in our daily podcast. follow squawk pod on your favorite podcast app and listen any time stay tuned

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immediately thought it's like a daunting task and i thought, i might ask chatgpt to put something together but you did not do that. >> i didn't. it wasn't available to me. >> short of talking to all 500 s&p ceos, how do you come up with similar things that they had -- for example, doug parker, you point out. so he's got an airline media executives we had to immediately scramble and figure out how to do ipads this our homes to stay on the air. every company seems like it was faced with their own unique challenges were you able to find similarities >> yeah, i think -- i wanted to make sure they sort of captured the scope of the economy so as you point out, airlines was an obvious story i told the story of hilton and airbnb, right, a silicon valley upstart, trying to disrupt that industry ford, i thought, had an incredibly compelling story. incredibly overleveraged coming into this. really had an existential threat to their business.

and also pivoted and turned these factories into ventilator and mask assembly lines. so, then, of course, the wall street story, too. though i was struck, what i thought going in, i thought it would be much more a financial sector story than it ultimately turned out to be i was surprised how well the markets held up ultimately, and ended up being much more a story about the real economy >> they didn't just hold up. it was like, technology was -- we've got five years worth of growth in a year or in a year and a half it was bizarre and some of the things that happened, i guess you would have to be pretty smart to have predicted the way things played out. but we had nothing like this, except maybe -- i mean, it's a 100-year plague, basically we had 9/11. that shut down airlines, shut down travel, shut down hotels, shut down sort of a tenth of the things that this shut down but we did -- they did have some experience in that scenario, that black swan. >> i think there's a piece of

9/11 in this, which it was a fear event people were afraid which was not so much the case in 2008. people were mad in 2008, but i don't think they were afraid but you had the fundamental economic shock of 2008, and combined in a way that we've certainly never seen, as you point out, the last one of these was 100 years ago, and the modern economy bears basically no resemblance to the economy in 1918, in terms of how global it is, how interconnected it is, how fragile it is, how fast it moves. and so, no real playbook on the shelf. that said, i think a lot of credit goes to the response of governments here they did in about six, eight weeks, if you remember, in march and april of 2020, what it took them six, eight, nine months to do in 2008, what they never did in 1929, 1987, previous crashes. so i guess if there's a silver lining, it's that we are getting better at this >> i think it's too soon, liz. to be talking about all of these -- i wish you had -- but it's not, but, people are still

walking by in masks. it's not -- unless they didn't get the mandate of the mask-off mandate, which is the new mandate. but it is very -- do you have incredible management guys that just and gals who handled it incredibly well, and people that just totally messed up and had lasting negative consequences on their businesses >> you know, there's sort of an interesting like intellectual experiment i've been running in my head, which if the pandemic had been half as bad, if the response from the government had been half as robust, you might see more disparate outcomes. as it was, you throw $6 trillion at a hole, i don't care how big the hole is, you can fill it >> i almost feel like you'll have to do a sequel. i feel like there are still so many lasting issues with anger between those who were coming in, working through the whole time, those who didn't, how management is still kind of playing this game of playing off of each other. and i think that is a long-term problem. >> i totally dpagree.

and i think this moment where ceos are getting up in culture wars, the dna of that is squarely in the pandemic i think ceos mostly for the right reasons, although a fair amount of egoinvolved, kind of rushed in to fill that void. and early on, the decisions they had to make sort of felt really easy and earnest and well-intentioned and it was a slippery slope. >> people are retired, people are run down, and there's a definite divide of the haves and have-nots. >> i think you'll see ceos put their heads down and go back to doing their jobs >> the vaccine was a big deal, too. i got lucky and just turned a certain age and i called my dermatologist and he was like, yeah, you're able to get one >> remember how fraught that decision was for ceos to mandate that >> to mapt >> for customers getting on airplanes. it was an incredibly complicated decision >> i would have walked out -- or crawled out over broken glass to get that thing at the time we were scared

liz, too soon. no, do this. thank you. the book is titled "crash landing: the inside story of how the world's biggest economies survived an economy on the brink. we'll be right back. every year? you aren't about to let any cyberattacks slow you down. so you partner with ibm to build a security architecture to keep your data, network, and applications protected. now you can tackle threats so they don't bring you to a grinding halt. and everyone's going places, including you. let's create cybersecurity that keeps your business on track. ibm. let's create

good morning good morning an economic gauntlet begins today, with congressional testimony from fed chair jerome powell being very formal for two-day congressional testimony. he's jerome today. investors will be paying close attention to that and to jobs and inflation data, in the days ahead. and jetblue's multi-billion-dollar deal for spirit airlines may hit some turbulence we're going to talk about the likely anti-trust battle ahead and d.c. targets tiktok. senate intelligence chairman mark warner will join us on the effort that he's readying to squeeze that super app the final hour of "squawk box" begins right now.

good morning welcome back to "squawk box" here on cnbc we're live from the nasdaq market site in times square. i'm becky quick along with joe kernan andrew is off today. u.s. equity futures a little bit higher this morning, after a mixed day yesterday. not big movements yesterday. the nasdaq was down slightly this morning, some small movements to the upside. dow futures up by 23, the nasdaq up by 5. treasury yields putting the ten-year still below 4%. 3.924% is the latest the two year is at 4.87. here are some of the stories that investors are likely to be talking about today. first up, meta platforms is planning another round of layoffs that could affect thousands of workers that's according to a bloomberg report that says that the cuts may start this week. 13% of meta workers were laid off as part of a major cost-cutting plan that was announced back in november meta declined a request for comment from cnbc. that stock up by about 1.8%.

best buy striking a three-year deal with north carolina-based health care system to help enable a hospital at home program. under the program, members of best buy's geek squad will set up technology for patients that remotely monitors vital signs with data being securely shared with doctors and nurses through a telemedicine hub best buy says that it wants to have about 100 patients in the program each day and on the earnings front, dick's sporting goods offering -- shares are trading higher after it reported fourth quarter same-store sales growth more than double what the street had been expecting earnings and revenue also beating and the full-share guidance looking above forecast. that stock is up by about 6% we, by the way, will be speaking with dick's executive chairman ed seatack next week right heren "squawk box. federal reserve chair j. powell will begin two days of congressional testimony and investors will be paying close attention. and steve liesman joins us now with more. i'm feeling it, steve.

i'm feeling it i'm feeling the lag effects of things, of mortgage rates, that's the front page of the -- tomorrow's the first day of the rest of our lives with the adp what's friday's number what are we -- where are you right now? what's your work 250? >> i don't do the work anymore, joe. it's useless the idea of -- the only thing we have is some of the new high-frequency data, joe, that i haven't worked out a model for but i had an old sort of conventional model that doesn't work and hasn't worked for two and a half years since the pandemic started if i could just for a second -- go ahead >> no, i was just wondering, is there a consensus out there? it's two and change, isn't it? >> sorry, yeah, 2.25, which is still too strong for the fed remember, we have population growth of about 100. >> way too many people with jobs >> it's terrible it's terrible. and that gets to where we start

here, joe. because powell comes before congress with that employment mandate. i guess you could call it accomplished, but his inflation mandate running well above the fed's target but he has one thing going for him. the market is in place to do the fed's work for him and i think powell is going to try hard not to change that today. take a look. this chart always astonishes me. the january fed funds futures has come up by a full percentage point this month, on february 1st, data showing less inflation progress and better economic growth so the peak rate is now seen 545, although there are some cuts built in for next year, something the fed chair could address if he adopts the words of atlanta fed president, raphael bostic he expects rates to remain around 2024. it's the first time we're showing you this chart with the june '24 number in there and you can see the cuts built in. evercore isi's krishna guha says we think the fed chair will open the door to a calibrated upward

move in charge if the next batch of data confirms the strength from january, but will not turn max hawkish or fuel speculation of a 50 basis point movem the problem for powell, the amount of data that comes this week and next, jolts today, jobs on friday, cpi on tuesday, retail sales ppi coming next wednesday. the best the fed chair can do, give markets an idea how the fed will react under different scenarios. unfortunately, most of those scenarios suggest higher rates a month's worth of data will not be enough to give the fed confidence that inflation is moving towards target. joe, this is like one of those guys in a wrestling match. you've got him pinned, you go, one, two, the guy goes up and you've got to start counting again. that's where we are right now. >> that's a good metaphor. what's wrong with the ten-year steve? >> what do you mean what's wrong with it? >> below 4% again. it's not cooperating >> well, joe, we talked about this this is a period where with the fed coming off the balance sheet

or reducing the spbalance sheet, there's just going to be a lot more volatility. >> i know. i just don't see why it's nearly as popular as it is. there's no good reason to lock up money for ten years at 3.9%, unless there is a good reason. right? >> well, you know, you don't sit there, joe, with 10 and 20-year liabilities to offset, right if you're sitting there and you're saying, i have -- and that's one of the reasons why you have institutions piling into the long end, is that all of a sudden, the ten-year solves their problem. and haas whthat's why people do. >> it's better than it was a year ago >> one thing i'll agree with rick on and -- >> -- thrilled with 3.9. >> we have a new person here >> sorry, steve. >> what i was saying was so interesting and compelling, you couldn't help yourself zpl >> i had to jump right in. >> thanks, steve

>> in fact, we do want to talk more about fed chair powell facing congress and what that means for the markets. joining us on set is julia coronado, she is the president and founder of macro policy perspectives also with us, ed yard eni. let's talk about a little bit about that, julia. powell is going to speak and we can listen to what he says, but we'll have a lot of data points that come right after it the jobs number, the cpe next week, the take place numbers and the cpi. how much weight does what he say carry at this point? and how quick and how transient are his words? >> exactly that's a great point and i think he's going to echo the strategy that they're following, which is data dependence, right? they don't think they're done. they think they have more to do. but the data are going to guide them how representative of the economy is the january data. do we get payback. how quickly does inflation

moderate in the spring >> is he going to say disinflation 79 times and will it matter if he doesn't? >> he probably won't, given some of the revisions that we've gotten we've seen them adjust their language we've seen them step into it and step back. again, that's the zone we're going to be in this year there's going to be a lot of ebbs and flows >> so is his goal to say as little as possible, because we're at a critical time with inflation and an inflection appoint. >> i think for two reasons, he's speaking for the committee, not for himself. he really has to represent the totalliy of the committee he's going to take a very even-handed stone and represent that entire committee. and yes, we're in a time where there's a lot of snuncertainty. we've had wild swings in the data and their new strategy of proceeding methodically gives them time to gather multiple months of data before making that next decision obviously, the next decision is baked in, but the question is about the signal going forward and they're going to have more information by then.

>> ed, what does that mean for the market and the market's response we have seen the markets, you know, soar in january and swoon a little bit at this point what are you expecting for march? >> again, that will be data dependent, as well but the market has held up remarkably well. we all know that powell is going to speak and he has taken a hawkish approach for quite some time we also know that the markets are holding up well in the face of inflation, using a term not to be somewhat hotter than expected but i think all in all, as you said, it's not going to be really all that important what he says today, unless it's something radically different, which is not very likely what really matter is how the next batch of economic numbers play out i'm in the camp that think that mild winter weather did, in fact, lead to a strengthened

payroll employment retail sales, auto sales the problem is february has been mild as well so we'll see how those seasonals play that all out. so it's a big question mark at this point, on how the data plays out. but all in all, i think the market probably could trade sideways for a while, until there's more clarity on whether the fed is just going to do two more and pause, or three more and pause, or just keep going. >> ed, you're somebody who probably looks at the earnings a little more closely, too, because you're not just doing this from a macro perspective. when you're looking at the earnings, what are we hearing? you know, we're about to go into a little bit of a lull period. what are you guessing for the second half of the year, anyway? >> i think we're seeing a mid-cycle slowdown i don't think we're seeing an earnings recession outright, but the earnings were down slightly, at a little over 1% on a year over year basis during the fourth quarter i kind of view what the economy

has been doing as a rolling recession and i think that's showing up in earnings we've had a housing recession, a recession in the goods providing sector, retailers got stuck with a lot of inventory, technology companies hired too many people during the pandemic and are now letting some of them go. commercial real estate is in trouble. yet the overall economy is growing and i would say given that the decline in earnings during the fourth quarter wasn't that big of a deal and i would think that the comparisons will start turning positive, if not in the first quarter, then the second quarter. >> julia, what do you think in terms of the fed policy. should they push harder, hold back and wait and see what happens, and i ask this because your name has been considered by politico as someone who could be considered as fed vice chair >> i think there's a lot of support on the committee for

this new strategy of going methodically we don't have the funds rate above the run rate on inflation. that's probably a good place to be going more methodically allows you to gather more data. i think there's a lot of noise in the january data. if we listen to what companies are saying, they are planning on slowing their hiring they're already slowing their hiring they're managing their workforce a little bit differently this cycle. given that we came out of it this very strong, tight labor market they're planning on holding on to workers more strategically, rather than mass layoffs as their topline growth as low as that disrupts seasonal patterns. i think that's what we're seeing in some of the economic data >> when you say methodically, show down a little bit and see what's going on? >> yeah, the 25 basis point per meeting. you can still get to 6% if you need to. >> they're not feeling, i can't imagine that they think that

they're infallible, not after what history showed us >> absolutely, but let's step back and see where we were last year, when the inflation was accelerating, the economy was running double digits, and they were at zero we're in a totally different place. we've got the funds rate close to 5 >> they know they don't know everything >> absolutely. absolutely but the inflation isn't accelerating, inflation just isn't slowing as quickly as they would like that's a very different kettle of fish than what we were seeing last year. so, again, that doesn't mean we immediate to panic or rush in fact, that would probably be a bad message. but to say, the economy is resilient, that's good, but we have more work to do, so we'll keep marching forward. i think that's a good, calming message. powell is pretty good at delivering those calming messages >> julia, ed, i want to thank both of you. and we'll see you both soon. thanks and some news just out from salesforce the company launching einstein gpt, a generative ai app that

creates personalized content across its cloud services. it's also creating a chatgpt app for slack that will deliver instant conversation summaries, research tools, and writing assistant and it is launching a $250 million venture capital fund targeting start-ups that are developing chatgpt-like technology that can work with its business software. and you can see the stock up a little bit, up -- >> what we talked about this morning. >> throwing money at everything ai related, even a venture capital of their own -- >> is faith popcorn still around, do you remember her? >> i do remember her predicted the future about trends and stuff are we right here with ai. you think so, julia? are we right here? >> yeah. i think so >> i'm scared then >> at the top of the funnel. remember what that chatgpt said of that "new york times"

reporter i'm afraid of hal. i'm afraid of hal. what if they have killers, like in terminator. i'm scared coming up, are tiktok's days numbered in the united states. what are you going to do about bad breath >> tiktok. >> not tick -- okay, never mind. after a break, we'll speak with virginia senator mark warner, the chairman of the intelligence committee. -- an oxymoron, and one of the key players in the debate over that

uh. our next guest is set to unveil a bill in washington that could lead to the united states banning tiktok i want to welcome virginia democratic senator, mark warner. he is the chairman of the select committee on intelligence. he's also co-sponsoring this bill with south dakota republican john thune, and senator, welcome we've been hearing about this bill coming and i guess today is the time you can really lay out the specifics. how would it work? >> first of all, becky, with thanks for having me on. i've got john thune as my partner. actually 12 senators, six

democrats, six republicans broadly-based cosponsoring it and what brought us to this is not just tiktok we've had this whack-a-mole approach on foreign-based technology for years a few years back, it was the russian software company then it was the chinese telecom maker, huawei. now it's the chinese mobile app, tiktok what we are seeing is from six nations, china, russia, iran, north korea, venezuela, and cuba if it is a foreign-based technology that poses a national security risk, we're going to give the secretary of commerce the ability to do a series of mitigation up to and including banning. and in the case of tiktok, we've got an entity that has about 100 million americans a day spend on average 90 minutes i bet you wish you had viewers that would spend 90 minutes a day on cnbc. they are collecting data they have the potential to collect data, they have the potential, the commerce party of china, to manipulate the videos, so it is a propaganda tool

and i think it is a national security threat. >> if it's that dangerous, why can't we just do that already? what's wrong with the system if it's that dangerous? >> because it is a communications tool, there are first amendment issues, there are a series of issues of the previous framework that the president had to act, was mitigated by something called the berman amendment in the 1980s. we create a whole new set of authorities for the secretary of commerce, in conjunction with the intelligence community and others we've been working closely with the administration on this and we think this is a modern framework that would take on communications, foreign communications technologies across the board we include artificial intelligence, we include quantum commuting, we include synthetic biology. because in my mind, at least, and i say this from the intel standpoint, this competition with china around who dominates technology domains, that really is where the nexus of national

security lies going forward. >> it may be too late, even if it is such a threat, and even if you are successful at putting this bill forward, turning it into a law, we had a reporter with us earlier today who appointed out that, look, it doesn't mean if you ban it, that it disappears from everybody's phones overnight they would still be there, it just wouldn't be available for download anymore in the app stores and he pointed out that enterprising teenagers addicted to this service could set up a vpn that makes it look like it's coming in from paris or somewhere else in the world and go ahead and download that anyway >> you're absolutely right there's no effort in this bill to go after individual users we do think, the federal government has banned this earlier, a couple of years back, the military banned this i think if you ended up precluding it from the app store, there will be a movement where people will think twice, particularly parents, i think are going to think twice before their kids are giving up all of

this data or potentially having themselves manipulated by content. you know and the ability to see the difference on content manipulation you look at the tiktok that the chinese kids get that is all about science, technology, you know, study hard not so much what our kids get. and i'm not saying everything on tiktok is bad, it's not. but i think that the commerce party of china has changed its laws to make sure that tiktok's parents, bytedance has to be first and foremost loyal not to the shareholders, but to the communist party, that ought to concern all of us. >> there have been concerns about manipulating the algorithm so that we get certain things. you just mentioned that kids in china are seeing math and science, kids here are seeing a bunch of short sort of goofy videos is that because of the algorithm, or is that because that's what kids here want to see? >> it is based upon the algorithms

remember, tiktok gives you content that they think you would like if somehow the communist party decides, well, we want to make sure that nobody who is on tiktok in america sees anything about taiwan that doesn't mean -- that doesn't include the basis that taiwan should be part of the prc, if they suddenly say, we want to make sure you see videos that undermine american democracy or say it's not too bad if xi jinping and the chinese give arms to russia in terms of supporting putin's illegal invasion of ukraine, that ability, you're thinking 90 minutes a day young people are on this tool, it has the potential, i think, to pose a national security risk >> i think that's happening right now, or you think that this is just a potential >> i think this is more on the potential at this point. bun of the things that we also require is to make sure that the intelligence committee or others, if they want to make this case, they have to declassify as much as possible why this is a national security risk you still have to make the case.

i think back a few years back, when huawei, the chinese telecom equipment maker was out, and we said, hey, this is bad news. as a matter of fact, if you look at where huawei sold equipment in america, it's almost 100% match into small telecos who are agenda to our icbm basis at first, we had knowledge about some of the challenges with huawei, but because it was classified, we didn't lay that out on a clear enough basis. now we have and you've got literally american taxpayer money being used to rip out huawei equipment across the country, and many other nations are taking out huawei equipment. we've got to lean in more, if we see a vulnerability, and frankly, give that to the public, so we can make our case stronger >> is that what you think was actually happening, senator? that huawei was doing this as a spying technique for the chinese government >> i think if you look at the number of countries that had gone down the huawei path, and we didn't have an alternative.

it's one of the reasons why in this semiconductor bill that's gotten a lot of attention, we also put some money in to get this we've never seen an adversary like china that is one stealing. and in many areas, at a rate greater than we are. and i think the country that controls the telecom system, controls the satellite systems, controls ai, you know, has the dominative mobile app platforms, this all falls in my mind into national security concerns that's different than our traditional thinking of guns and tanks and ships and planes, but in a world where the competition is around technology, i think it's absolutely essential that we and our friends around the world don't fall victim to the authoritarian regime coming and prc. >> china just came out with

their budget this past weekend and while the government is not going to be spending on a lot of areas, two places it is, one is defense. the second is what they call diplomacy. and that was described as a lot of belt and road sort of initiatives that are out there do you think those initiatives are trying to build up chinese infrastructure is that a goodwill diplomacy or do you think that's more of what you just described with the huawei >> first of all, many of the standard-setting bodies are like mini u.n.s and chinese has been flooding the zone i say this as an old telecom guy, it blew my mind that you not only have a chinese company in wireless, huawei, but that china was setting the rules and regulations and protocols. a lot of that was because these international standard-setting bodies, china does try to gain influence by their belt and road initiative i think most of the countries, though, that have taken this chinese help are frankly

reluctant at this point, because they see that china comes in and promises lots of jobs and instead they bring in chinese labor. often times the products are not very good and the infrastructure is not very good in a lot of places, these places have now ended up in immense debt to china. so i think china has customers it doesn't have allies and some of those customers are, i think, pretty unhappy based upon some of the belt and road initiatives of the past. >> senator warner. if your bill is successful, how long do you think it would be before something like tiktok gets banned. what time frame are you talking about? >> what we're talking about is still giving the secretary of commerce, she would have to, in this case, the secretary would have to make the case. this is less about tiktok and more about how do we not have the whack-a-mole approach on foreign technology, but have a modern framework that can take on software, hardware, mobile apps that pose a national security threat. remember, tiktok is still going

through a review on what's called the cfius process, because the way tiktok came into this country in the first place was an acquisition which triggered cfius. so cfius could still be a tool that's been used i think what we need is not again this kind of one-off approach, but a system approach that approaches foreign technology from again, not every country in the world, the six nations, but the law has already declared as adversarial in nature, and give us a tool that we can stay safe >> senator warner, i want to thank you for your time this morning. appreciate it. >> thank you so much, becky. appreciate it. >> when we come back, if the justice department tries to block jetblue's takeover of spirit airlines, will the government win we'll get into that. and also, bring you much more on the markets. stay tuned yoreatin"sawbo au' wchg quk x"nd this is cnbc dad, we got this. we got this.

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coming up, it looks like jetblue's multi-billion-dollar deal for spirit airlines can hit some significant turbulence. you hear that? our writers are second to none we'll bring you the late astnd talk about what investors need to know. we'll be right back.

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jetblue proposed takeover of spirit airlines could be in for a rough road phil lebeau joins us right now with more on that. phil, what's the latest? >> well, becky, we're waiting to see if today or in the next couple of days, we will finally hear from the department of justice. by the way, they were supposed to make a decision by the middle of the last week about whether or not to approve, approve with

conditions, wither or outright say they're going to block the proposed merger between jetblue and spirit we could hear in the next day or two. remember, if this deal were to go through, jetblue and spirit would have just under 10% market share, and it would create the fifth largest airline in the united states. but yesterday -- and we've heard this the last couple of weeks, warnings from jetblue's management that they expected the doj to fight them on this deal they issued a statement yesterday saying we believe that there is a likelihood of a complaint from the doj this week and we have always accounted for that in our timeline to close the transaction in the first half 2024. it will be about lee to four months, is the expectation, if there is a lawsuit from the doj to block this merger and by the way, jetblue and spirit have offered concessions to get this deal done, if it's not an outright approval, they have said, look, we will divest spirit slots in boston and new york, curb our flights into ft.

lauderdale all offers that they believe make this a deal that the u.s. government should ultimately approve. but we'll see what happens, as you take a look at jetblue, spirit, and we're also showing you frontier because, remember, it was spirit and frontier until jetblue said, wait a second. we have a sweeter deal and by the way, guys, part of that sweeter deal is that spirit shareholders are being compensated. and i can't remember the exact amount, but every month that this deal has since january, they get a little bit of a payment from jetblue so we'll see what happens over the next couple of months. again, the expectation is we hear from the doj, either today or in the next couple of days. >> if the doj signs off on it, is that the last hurdle that the airline needs to clear because i had heard that in florida, some local officials were saying, they were okay with it now they were assured of jobs and different things then i heard that the department of transportation -- >> there's always the possibility -- sure, there's always the possibility that you

get some regional or a localized lawsuits or somebody comes forward and says, look, i don't think these two should come together this is truly the last major hurdle if the doj were to bless it but the expectation, becky, and we're not just -- people have said, you guys are against the deal you're reporting that the doj is going to fight that. no, we've heard that and they expect the doj to fight this deal that expectation is clearly out th there. >> thanks, phil. >> for more on a likely antitrust battle over the jetblue spirit merger, let's bring in bill baear. now a visiting fellow at brookings institution. you were in president obama and president clinton's administration i figure you have a certain viewpoint here, bill but work with us on this this is 10%, right 10% of the of what we're talking

about. the other mergers, and you finally ended up signing off on a big one, american u.s. air isn't isn't the horse kind of -- if we're worried about consolidation and consolidation and too few hands, the horse has already left the barn, hasn't it now's the time to block this piddling little deal >> i don't think it's piddling >> $3 billion and -- okay, go ahead. >> what's going to happen on day one of if this deal goes through is an ultralow-cost carrier, spirit, will be eliminated from the market place and the consumers that benefit from that ultra-low cost service, which i don't use, because the service isn't great, but the cost is, it's gone competition is eliminated. and jetblue's already said they're going to take all of thaez planes, take out some seats, and raise the price that consumers will have to pay for what used to be spirit's

service. so there is a significant elimination of competition that the government is legitimately concerned about here >> do you think there's anything to what robin hayes claims that -- and we talking about lina khan and the antitrust, what we've seen in recent years, we talk about it all the time. he said they were against this they walked into it without even looking at it with the notion that they were going to be against it do you think there's anything to that >> there's spin to that. look, what the ceo of jetblue is saying is, they investigated and didn't agree with us jetblue has an interesting story line here. last year they were in court in boston, defending their alliance with american airlines that significantly reduced competition up in the northeast corridor and, but today they're

saying, you need to let this deal go through, because we want to compete more with american, united, and delta and southwest. they're caught between making an argument of convenience up in massachusetts to defendant -- >> so is the justice department. the justice department talked about the jetblue effect cited by the justice department in an unrelated legal process, which said in that case, the justice department said that the competitive pressure from jetblue historically has led to lower prices for customers >> i didn't mean to interrupt. that is, when jet blue on its own is competing on the merits, it does tend to reduce prices. that doesn't justify them gobbling up somebody who is a low-cost carrier, lower cost than they are, and eliminating that competition

it's -- it's -- the inconsistency is pretty transparent here >> i don't know. jetblue, it's a decent-sized player, obviously. i've never -- like you, i've never been on spirit airlines. if jetblue in general lowers prices and they're having trouble competing with the big behemoths that are already out there, and this would help them grow a little bit, get some routes that it needs, go to some smaller cities, that the big majors don't fly there anymore, if it makes jetblue a little better, so that it can go in and then what you just said, the jetblue effect, you know, make things more competitive, none of it makes sense it almost seems like we're going the way of european -- go ahead. >> there's the spirit effect

i mean, they are eliminating an ultralow-cost carrier that last year, when there was a bidding war for spirit between jetblue and republic, spirit's management came out and said there is no way that the justice department is going to approve a jetblue spirit merger. and -- but the shareholders of spirit decided to go with the gamble jetblue made the kind of offer with a ticking fee and a reverse breakup fee that caused the spirit shareholders to say, let's gamble on this but it's still a gamble. there still a significantly reduction in competition that's resulting from this deal we'll see how it plays out in court. but i don't think this justice department is going to be amenable to any kind of

adjustment this is good for shareholders, bad for consumers. >> is it overstating it to say this justice department isn't going to be amenable to any kind of merger? is that kay? is that more of the euro model that there's pricing behind every merger, that the default position is that companies should never join forces to cut costs. >> in the airline industry, in the airline industry -- >> we're doing it everywhere overall. >> look, it's a heavily concentrated market. and, you know, i don't think doj has said or will say, never, under no circumstances but i do think that they are very worried about increasing concentration in markets which have very few competitors. guess what, the airline industry is one of those markets. >> you saw the resignation in the anti-trust division and some of the comments that individual made about lena khan and some of

theation actions that have been undertaken over the past year. are fully behind this new -- it used to be a toothless antitrust division how many teeth we got? >> some of us more than others is that good >> i think an aggressive ftc, an aggressive anti-trust division at the justice department is what the american economy, what the american consumer needs. and that may mean some deals invo involving. i think the american consumer is better off for it. >> bill, we appreciate your viewpoint. i feel a feeling -- i thought we had bill bar on. you're not related to him. you guys don't travel in the same circles i don't think. >> how about bret baier.

brother? >> not a brother, but i admire him. >> right brother from another mother. all right! very good. thank you, bill. good to have you on. >> good to see you when we come back, meta reportedly getting ready to layoff more workers. what would this mean for the company's biggest projects and what does it mean for investors? we'll speak with an analyst, next and a reminder for you you can get the best of "squawk box" in our daily podcast. follow squawk pod on your voteodstppndfari pca a a you can listen to us anytime we'll be right back. and yes, that means cutting carbon emissions... but it also means cutting costs. because now clean energy is more affordable energy. we've been investing in american infrastructure for thirty years... lowering electricity costs today, and protecting from volatile energy prices tomorrow. so walk with us— and let's make cutting energy costs real. meet jessica moore.

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hanging in tlp. >> meta platforms planning another round of layoffs that could effect thousands of workers. that's according to a plbloombe report it comes after 13% of meta workers were laid off as part of a major cost-cutting plan that was announced pback in november joining us is brent thao he's got a price target of $225. the stock right now is just below $190 let's talk a little bit about this first of all, the idea of more layoffs, the company has not confirmed it, is that something that you think is a likely possibility? >> absolutely. tech overhired overall we've seen numerous across many. and this really comes to growth is stalling. and employee head count is up massively. last year, meta's head count was up over 20%. yet the revenue is stalling. we're continuing to see a stallout on revenue growth and employee head count cannot

continue to go higher. revenue per employee dwouwas don 20% for meta we think there's more cuts to come remember the cut that happened in november was when the stock was in the 90s it's almost double since they made these cuts. and zuckerberg did a complete 180 on o what he was saying and came back two weeks later and made the cut after he said he was going to spend like crazy. >> is this cutting the do what wall street wants because wall sheet sent this message, the stock has performed well since they announced the original cuts, or do they see the numbers they're getting in terms of ad sales are even worse >> i think it's a combination. i think it's partly wall street, but also the right thing to do for the company's health which is you can effectively do more with less. the entire industry from salesforce.com across the board, massively overhired. we've been saying this, we

expect more rounds of cuts another company last night made their first round of cuts. there's other companies like docusign who have cut almost 20% of their workforce in two separate cuts. we believe there's another round and we think it's also going to filter in to the rest of tech, and that they will continue to follow meta's lead as others make these cuts. >> what's the right number if they've already cut 13% and they've got more cuts to come, what's the right number? wall street wasn't really complaining while these people were being added in the first place. it's just a new paradigm we don't believe meta is going to be the place where money is spent? everybody is looking to throw people and resources at things like ai. they changed their name to meta to begin with, is that going to still be protected like it was in the last round of lay-offs? >> i think ultimately the right number is where effectively you

start to see revenue peer employee growing or we see revenue growing. until we see that, ke can't afford to hold the head count we have it's going to vary across the industry we've seen between a 5% and 20% lay-off. over 50% of the companies we cover, there's going to be multiple rounds until they get it right i think they're realizing they're following initiatives they don't need to go down again, wall street doesn't want to go down to metaverse because that's their core business i think we're going to have to figure out -- it's going to take some time. clearly, if this report is correct and there's thousands of more jobs coming, it's clearly a signal that there's an issue they don't need to pull off or they feel like they can do more with less. again, i think that's the theme across tech. this is not a meta-specific issue. this is what we're seeing across

our whole industry >> brent, thank you. >> thank you up next, we're going to talk about what you need to watch ahead of the oni bpengell on wall street. stay tuned squawk box will be right back. good night! hey corporate types. would you stop calling each other rock stars? you're a rock star. you are a rock star. rock stars. please! do you know what it takes to be a rock star? i've trashed hotel rooms in 43 countries. i was on the road since i was 16. i've done my share of bad things. also your share of bad things. we know that using workday for finance and hr makes you great at your job. but that don't make you a rock star. ted! ted! ted! oh ted in finance. you're a rock star! hey liz in hr? can you do this?

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a little more than a half hour until the opening bell on wall street. joining us on the markets, what jay powell's testimony could be for stocks, ser rat set fi manager portfolio manager. seems like i talked to you a couple weeks ago, surratt. since then we've been in wait-and-hold. it's all going to come at once the flood gates will open with jay powell and the inflation numbers next week. how are you feeling? bullish, bearish, the same >> i'm really looking -- i'm a little bearish going into this, joe. i think when powell spoke in january he focused a lot on additional inflationary. things were getting better in terms of the numbers whether it

was cpi, ppi, the inflation. i think the data in the last four to six weeks has been pretty strong. i think they're going to go higher for longer, and powell doesn't really care what the stock market does in the short term i do think people need to watch, especially for stocks that are higher valuation stocks. that's where sticking to fundamentals is going to be pretty important for the next three to six months, investing in companies that have true cash flow, that can grow earnings and aren't pie in the sky or just long duration assets. >> you expect hot surprises or cool surprises in the next two weeks? >> i think hot surprises i think the market is not really poised for numbers to be hotter than expected. i don't think we're going to see a slowdown rate. the terminal rate could be

closer to 6% that could spret ad some negativity, especially for people that have been long stocks you and i have talked about this for a few years now. you're getting 5%, 6% just to sit in cash. why not do that if you don't have the allocation fwonds i'm not saying not stocks, we like stocks. i like the american expresss, the morgan stanleys, the j &j that trade with higher growth. there's definitely opportunity out there. i think the opportunity is different than what we've seen in the last ten kbreers. you can do special situations. we were just talking meta before or a disney. those are special situation stocks i do think valuation is going to be really important going forward. i think the data is going to show that people need to be focused on that. >> what do you think, sarat, the s&p which bounced off its 200-day support level, now back

at 40,048. what's in the back of its mind why does it seem to be what comfortable or sanguine about what's going on? >> well, i think the market is also looking through kind of the earnings trough that we're probably going to get in the next couple quarters i think that's going to be really important for the longer term, i think the market is signaling that, hey, we can get through this. we're not going to crash the market itself. but i do think you had some momentum in the last couple weeks and you saw the tech stocks, especially apple rise in the last couple days but i do think the s&p is saying, look, we're not going to go into a very, very hard landing. i think we're going to get a slowdown and the market can look through that you can actually make money through it it's not selling off like we did three of the last four years. >> it's not looking around and saying, wow, things are looking

okay now it's looking around saying maybe they don't get too bad and there's an end to this some day the storm runs out of rain that's a great country song. we've got to go, sarat they're giving me 15 seconds >> okay. thanks, joe. >> we'll have all those numbers next time we talk to him, hopefully, and we'll get an update make sure you join us tomorrow -- i was trying to count my teeth 30 maybe "squawk on the street" is next ♪ ♪ good tuesday morning welcome to "squawk on the street." i'm carl quintanilla with david faber and mike santoli at the new york stock exchange. cramer has the morning off longest streak on the dow since january. chair powell on the hill in front of senate banking in about an hour. yields have backed off a touch our roadmap begins with awaiting the fed chair set to testify in