good monday morning. i'm carl quintanilla with morgan brennan. ben anchor is with us. we'll get his warning on the pivot to the speculative growth names. later on, an exclusive with carnival's chief on a state of

the consumer, earnings and a double digit stock drop this month alone. we'll get a check of the markets this morning. they're spanning the rally but major averages are higher. the dow is up 136 points. the s&p up a near 8 points, 3978. the nasdaq is the laggard as we see those treasury yields pop higher, carl. >> it's been interesting the last few weeks as the concern has surrounded the banks. money has gone into tech, as we all know. >> yep. >> and the forward t on the nasdaq 100 is up 30% or so from the october low. the way staples are outperforming makes you think there is underlying nervousness about what the economy holds long term. >> it seems investors are breathing a sigh of relief nothing else has broken or added to the banking skittishness over the weekend. we had the sale of parts of svb this morning. deutsche bank moving higher. great reporting which we'll get to about the fact that the deposit outflows from smaller banks seems to be stabilizing

and slowing in recent days. that's leading to a rally in the bank stocks. maybe we're seeing relief trading today, but confidence yet to be seen. seems like there's more shoes to drop, the idea of tighter credit conditions, what that will look like, versus the fact you have a fed that has injected a lot of liquidity into the system given what we've seen. >> after pulling it out over the last few months. our next guest says his focus is squarely on what we call devalue, calling it the best place to be in the market over a three to five-year view. joining us, gmo's head of allocation ben anker. talk to me about what devaluation means and talk to me about some individual names. >> sure. devalue, if you you think normal value is the cheap half of the market, if we went back to the first half of 2021, value was really cheap versus the market. value had a great market in

2022, but the odd thing is the deep value stocks, the cheapest 20% of the market really getting -- in the way you would expect in a value rally, which has left them looking really cheap. not just versus the market but relative to the rest of value. and i think the question with those companies is people are always worried about value traps, but, in fact, the deep value stocks today are really pretty cheap. they are diversified across a large group of things, whether it's the tech-oriented stuff like a meta or plenty of health names. there are some cheap banks out there. but you can put together a diversified group of stocks today that are pretty high quality, trading at really cheap multiples. and people are expecting a whole lot out of them. and so when something good happens, this stock can go up a lot. >> what do you think it says right now, to the degree it

hasn't performed as you might expect, about an underlying bid for speculative names that still exist in the market? >> yeah. i think it's really there. honestly, one of the things i was surprised by when the svb stuff happened was this bid for deeply speculative, nonprofitable kind of tech type names. you can understand a slice of quality. you can understand the bank stocks going down. but the idea you're moving into the nonprofitable tech, it just doesn't seem odd that that's what you would want to do. there seems to be this fear of missing out on the next big thing. we think those stocks are priced for long-term outcomes and most outcomes don't wind up being as good as what's priced in right now.

>> ben, this notion of deep value, can that be high quality as well, given the fact we seem to be going into this slower growth economic environment, potentially a recession? >> i think it's important to recognize, if you are really afraid of what's going to go on in the economy, you're worried not just about a recession, but depressed, the only group of stocks that has been consistently protective in those really, really bad economic environments is the highest quality names. but if we're thinking about a recession, people are always focused on, are we going to boom? are we in a recession? most recessions don't matter. they come and they go. they do not leave a lasting mark on the economy. they don't leave a lasting mark on stocks. value stocks do not in particular underperform in the average recession. so, we think people, if you are really worried about a true crisis, go to high quality.

otherwise, whether we get a recession or not, i don't think it matters for a three to five-yeefr view on small stocks, growth caps. >> what would you look up if you wanted to beef up in that area of your portfolio? >> what we focus on at gmo with regard to high quality, we want to see companies that have a high return on capital, a stable return on capital, and relatively low levels of debt. now, there's more fundamental details behind that, but that's what they're looking for. the cool thing about those companies in bad economic times is they simply don't go bankrupt. that's awesome if you are trying to save yourself in an economic. the weird thing about quality is you would expect for that benefit, for the fact these companies are not going to go bust. they're going to outperform in

any really bad crisis, you would underperform the rest of the time. so, you pay for that. and you don't. we really do like high-quality -- if you're going to have a single long-term bias in your portfolio, it should be towards quality. today if i had any bias in my portfolio it would be deep value because they're really cheap. they're not the highest quality companies out there. but they are the cheap thing. if you were going to add a long-term bias in your portfolio, you might as well bias yourself towards high quality. they do fine the rest of the time and they really save your bacon in a disaster. >> finally, ben, one thing about this banking episode has been that it clearly transcends borders. how many names are available in that universe in europe versus u.s.? >> yeah, so if you look -- like the deep value stocks in the u.s. are trading in kind of the cheapest 10% of their history versus the market. in europe, they're changing in

the cheapest 6% of history. if anything, they're even cheaper and in general, europe stocks are cheaper. we think being in deep value, you want to be in deep value anywhere you are around the world. there's plenty of stuff to buy in europe. but for us, one of the exciting things is, the deep value stocks in the u.s. are cheap enough that they are a group of u.s. stocks we've been excited about buying. and it's the first time in two years that we've been able to find a group of u.s. stocks we were really excited about. we like them everywhere. absolutely there's stuff worth owning in europe and there's stuff worth own, in the u.s. as well. >> it's certainly a playbook, and viewers are looking for different kinds of playbooks, that's for sure. good to see you, ben. >> thank you. regional bank stocks popping this morning on reports federal officials are considering expanding programs that provide liquidity to financial institutions. first republic is up big, so is

first citizens after taking over most of silicon valley bank. exclusive reporting by cnbc over the weekend shows the deposit trades in smaller banks into bigger banks is slowing. cnbc.com's hugh son wrote this story. break it down for me. given the fact we got that high-frequency fed data on friday that showed earlier in the month there was a rotation from smaller banks in terms of deposits to bigger banks. >> great to be with you. clearly the data out on friday, which is a delayed snapshot. essentially the deposit flows up until march 15th or so. my reporting exclusively over the weekend shows that at least when it comes to the regional banks losing deposits to the likes of wells fargo, jpmorgan and citigroup, that bleeding has stopped for the time being at least. so, my sources, you know, these firms have basically just said,

you know, some time in the middle of the month, i want to say march 16th or so, and that was around a time, if you recall, 11 of the biggest banks got together to inject $30 billion into first republic. that really created, you know, a different sort of feel from the acute phase of this regional banking crisis earlier in the month. and a lot of movements of funds have really kind of slowed and stopped in recent days, which i think is good news for the market overall. >> yeah. we've talked about it, right? this crisis of confidence that has played out in the banking sector in recent weeks, so this idea there's a stabilization sounds incredibly promising. we've been talking about commercial real estate. i wonder what your sourcing and your reporting is on covering around that and the concerns that could at some point, maybe not right away, at some point be the next shoe to drop. >> it's good to point out the accuse phase. the deposit flight seems to have

staunched and that's calmed down. it's left us with an awakened awareness on the risks built up on the balance sheets of these banks over the last few years. one is huge exposure to commercial real estate. you see a lot of analyst notes on that. that needs to be addressed and resolved. the other larger issue is as interest rates have climbed, they've been sitting on unrealized losses on their bond holdings. that's the bigger picture issue, which we have awoken to. i don't think that's been resolved as of yet. i think the developments over the next few weeks will show corporate boards, how they'll deal with it. at the very least, one would say instead of lending out as many money as they do to commercial real estate, to small businesses, they have to reserve their capital to build their capital reserves, you know, to fill in some of the hole that's been created. as a result, you're going to see credit contraction in the economy. i think that's what some

analysts are pointing to in terms of why this is going to be potentially a harbinger of recession down the line. >> certainly the longer term concern, how a lot of that lending gets refinanced, obviously, at much higher rates than before, hugh. appreciate that as always. hugh son, incredible job covering over the weekend, thanks. we have a market flash on bitcoin with dom chu. >> what we have right now are bitcoin dropping by $1100 over the course of the last couple of minutes. this is all in response to what's happening with regard to binance, the world's biggest cryptocurrency operator. the community futures trading commission in the u.s., u.s. regulators are suing binance and key executives including the ceo and founder of binance. what they are alleging the cftc

is that throughout the course of period they defined that defendants, binance, aided and abetted two key executives, violated certain regulatory actions including offering entering into confirming the execution of or otherwise dealing in off-exchange commodities futures, also offering entering into and confirming the execution of exchange transactions in commodities options in violation of u.s. regulations, amongst others. we're going through the entire lawsuit right now. again, this has been put forth, this suit, by the cftc u.s. regulators against binance and cheng peng zhou, among others. that's the reason why, the proximate cause, for bitcoin prices. we'll keep a look at the derivatives. coinbase shares falling lower, and others tied to that ecosystem.

we'll send it back to you. >> watching microstrategies and others. thank you for that. still to come this hour, baird taking caterpillar to sell less than two months after cutting to neutral. morgan stanley says one big cap tech name has 50% upside ahead. we'll break down some of those calls. the ceo of carnival is with us after reporting results earlier this morning. thi what do you see on the horizon? uncertainty? or opportunity. whatever you see, at pgim we can help you rise to the challenges of today, when active investing and disciplined risk management are needed most. drawing on deep expertise across the world's public and private markets in pursuit of long-term returns... pgim. our investments shape tomorrow today. what if you were a gigantic snack food maker? and you had to wrestle a massively complex supply chain to satisfy cravings from tokyo to toledo?

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a lot of notes crossing our desk this morning. here are a few grabbing our attention. baird cuts cat from underperform to neutral. they say the stock is nearing a cyclical pivot, pointing to retail sales and growing backlogs. the firm sees a major slowdown for nonresidential construction into '24 as commercial real estate loans face pressure and nearly 70% are held by regional and small lenders. pretty interesting, sort of offsetting the bullish commentary on cat that the infrastructure act will add to more building around the country. >> which we've heard, and we've heard from other companies, and certainly there is a lot of money in the pipeline that has even yet to be deployed things like infrastructure and inflation reduction act. you can call that more of a bull case for names like cat, and whatever happens in the energy and commodities sector. this did get my attention

because they specifically said in the note, nonresidential projects, specialically commercial, lodging, recreation and office. it's sort of this dynamic of you're seeing slowing demand amid a slowing economic and construction and credit tightening back drop versus the unsnarling of all those supply chains and more inventory hitting the markets, finally, after years of that being so tight and that meeting pricing pressures. downgraded to neutral just last month. >> ubs went to sale a couple of weeks ago. the stock has already reflected some of this. not the only name they take down today. united rentals, a big name leveraged to construction around the country. they go to neutral on that. they cut their target from 425 to 300. they go to underperform on uri. cat's not alone on that front. >> it's worth noting. i think about those ceo comments

overnight, too, that china reopening, which is something that was seen as bullish for a name of cat, has been very choppy. we've seen that from a number of companies over the last couple of months. another call catching our eye this morning, morgan stanley's amazon bull call, they see 50% upside following last week's 9,000 layoffs. they say those cuts could add to more than $2 billion savings add to a bump for their 2024 ebitda target. let's bring in deirdre bosa. >> this is the highest trade on the street, 156 bucks. the analyst sees significant cost savings because a lot of cuts from this round came in the highest growth, most profitable sectors of amazon, that is advertising and aws, its cloud unit. if you look at a seven-day chart, which we can pull up for you, this isn't a meta story and that investors are cheering this

move and think this is going to set amazon on a better path. basically the street and some other investors are thinking, well, maybe these cuts happen in the most profitable areas and that's not going to set up amazon very good for the long term. that's what this note focuses on but morgan stanley says this will create more efficiencies because i wanted to highlight that other side of this. the shares moved about a quarter of 1% over the last week. that may be because they're coming in such lucrative businesses for the company when its core e-commerce is slowing down. >> you take that and factor in something that hasn't been discussed very much, the fact there is such high turn in the factories and warehouses and in that part of the business for amazon. i would imagine -- i don't think we've heard this from the company, but maybe you don't refill some of those positions, too. this idea of belt-tightening upon belt-tightening. as for the bull case for these mega cap tech names, the idea as you see cost cuts you create a floor for them in terms of cash

generation and profitability. this might be the reason we've seen investors pile in the way we have. >> and at a time when margins are being squeezed, in cloud computing. we can look across big tech to see how much they hired over the last few years during the pandemic. amazon is at the top of that list. they doubled their workforce. we are talking corporate workforce here. those white collar jobs. so, those cuts, yes, in the short term, they have it here, meta was second. no surprise meta has done even more cutting here. but the idea that these efficiencies are going to create better profitability in the, let's say, shorter term, maybe a year out, which is what morgan stanley looks at. in the longer term, though, i think there remains questions. how do you continue to keep it always day one, in the words of amazon, and make sure you're being offensive as well and building in these high-growth, high profit units like aws and advertising? >> all right.

remains to be seen. deirdre bosa, thanks for breaking that call down. after the break, what the banking crisis means for retail stocks. citi data showing some concerning data for department concerning data for department stores, could be emerging as it

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let's talk about our chart of the day. citi is out with new data showing the impact of all this uncertainty around banks on consumer demand. they look at retail foot traffic in the third week of march, using some consumer cell phone data. down more than 70% year on year. the only retailers that saw an acceleration in foot traffic, costco and boot barn. some of the biggest losers were lowe's, advance auto parts and

autozone. it was just about five days ago citi had their proprietary credit card data that saw the biggest decline since the pandemic began. >> if you look at those worst performers in terms of the biggest declines in terms of foot traffic, they're private interest rates and loans from banks. you're talking about housing and autos. that's noteworthy. it will be interesting to see what rh was a canary in the coal mine last year as we saw the fed begin its aggressive fed-tightening cycle. we'll see if it's an early indicator of things to come. i imagine there's some seasonality in here, too. beginning of the year you're moving through the holiday and returns, the chinese new year and all of that is probably affecting some shopping trends. >> by the way, we should point out at least on the credit card data, citi's got one view.

jpmorgan's view did not ratify it on their own proprietary data. they didn't see as much of a drop-off. it might make sense people are a little more cautious than they were 10, 14 days ago. >> arguably, a pickup in foot traffic at costco speaks to that. let's get to a news update with contessa brewer. >> here's your cnbc news update. thousands of travelers stranded at israel's airport after the country's largest trade union went on strike today in response to prime minister benjamin netanyahu overhauling the judiciary system, which he agreed to delay until the next parliament session. they represent 800,000 government workers across health, banking and transit industries. protests are under way in france where leuve workers have blocked the entrance to the most visited museum in response to

emmanuel macron raising the retirement age. the boston marathon has a new sponsor starting in 2024. bank of america will replace john hancock as the race's new principal sponsor after 38 years. morgan? >> wow. contessa brewer, thank you. up next, the ceo of carnival in his first broadcast interview since taking the top job at the cruise line operator. it's been a volatile session after guidance came in soft but bookings hit a record level. that interview is coming up on the other side of this break. we are back in two.

welcome back. about a couple hours into trading, dow is holding gains up to 190. let's get post to post with bob pisani. >> still moving, still up for the s&p 500 but most of it is the banks. we better get some diversification. here's first republic. we take a look, look at that volume, 72 million shares. that's on the silicon valley bank deal and also hopes maybe deposits like slowing down a little bit. i think the important thing is discussions about ways maybe the government can enhance their emergency lending ability for banks. maybe that's giving a little bit of hope here. but remember something, this was

$120 a month ago. i know we're rallying today but it was $120. it's a $14 stock right now. so, it's -- many of the big banks down 30%, 40%. elsewhere, we've held up in the month of march because of technology stocks. they're starting to falter. salesforce a big mover on the dow. but we have yields moving up, and that's putting pressure on the big tech names. it's been a remarkable run. if you really look under the hood at the s&p and even the dow, the biggest movers on the dow jones industrial average for really the -- if you take a look at the quarter is all of these tech stocks. look at these moves here. salesforce, apple, microsoft and intel, all of the big movers. the dow is a price-weighted index. other than intel, those stocks tend to be higher priced stocks so their influence on the dow becomes tremendous. this is going to the end of the quarter now, morgan, what we

need to do is see some diversification. we can't just have banks up, tech down, we need stuff like you cover, industrials, for example, cyclicals like material names, all are down this month. we have to get some confidence that the banking crisis is over to start getting diversification in the market. morgan, back to you. >> we'll be watching it. bob pisani, thank you. we're heading to carnival. they hit record bookings but saying costs will rise more than forecast. shares are down 3%. let's get to sara eisen, live at shop talk in vegas covering all things consumer. >> reporter: yes, morgan. good morning. good to see you. looking forward to this interview with carnival to talk about what's happening. josh weinstein joins us. he is the ceo. this is his first interview since taking over from arnold

donald. josh, good to have you on the show. welcome. >> thanks, sara. good to be here. >> let's start with the quarter. it was really strong, smaller loss than expected, revenue growth, almost back to 2019 levels. what's driving that strength? >> well, you know, it's what you ended with, the revenue picture is incredibly strong for carnival corporation and all of our brands. our first quarter performance showed our per diems up significantly over 2019 and we just came off a record booking period. typically known as wave in our cruise industry and we set a record for carnival corporation. most bookings we've ever had. >> so, wave is, as you say, seasonally strong, right, january through march. is the strength continuing into march now and throughout the rest of the year? >> absolutely. you know, what we found was wave for us started earlier than historical trends. black friday, cyber monday were

off the charts. it did not stop during wave period. it did not stop in february. as a matter of fact, the highest booking week we ever had in this wave period was the very last week of february. on top of that, the momentum has continued into march. so, we're actually over 07% booked for the remainder of the year, sara, which is real good. as part of that, we're generating more of our bookings for on board spending up front as well. it gives us very, very solid footing for 2023. >> so, if that's the case, josh, why then the guidance that is seen as potentially overly cautious here and a much bigger loss than wall street was expecting? you saw the big jump in the shares on the big beat. and now they're under pressure a little bit on that outlook. >> well, you know, we've been pretty consistent. as a matter of fact, in december when we were talking about our outlook for 2023, we didn't give our yield or our revenue guidance, we gave guidance on

everything else. and what we had talked about was on an ebitda basis, when you normalize for fuel and currency and you look at that per unit, we anticipated that we would make sequential improvement every single quarter over 2023. and as a matter of fact, in 2024 we would rival our 2019 levels, which is what we're comping to. as a matter of fact, in the first quarter, what we said we were expecting 50% of that level, we hit 60%. we're anticipating two-thirds back in the second quarter and to indeed rival our levels by the end of this year. clearly i can't get in anybody else's head about what people are expecting. what i can tell you is we're happy with the results. everybody is working very hard. certainly the quicker we can get there, the better. as a matter of fact we're concerned, getting back to 2019 levels is a nice milestone but a milestone on the way to much higher performance as we increase our demand generation

and capabilities. >> my question is, because it seems to be a profitability thing that the street is stuck on, why aren't you seeing higher margins on the back of higher pricing with this demand coming through? i feel you haven't gotten the benefit as airlines and hotels have on being able to boost pricing to very high levels. are you seeing that now? why isn't that helping now? >> as i said, we hit higher pricing in the first quarter and anticipating and projecting higher pricing over the course of 2023. since we are doing a four-year comparison on the cost side, we're also comparing four years of inflation as we think about 2023 versus 2019. but i would tell you this, we are an incredible value to land-based alternatives. it's one of the frustrating things about the industry. anywhere from 25% to 50% lower when you line us up against a land-based alternative. for carnival corporation and our portfolio of world class brands,

we find that unacceptable. we think there is plenty of room to drive increased demand, higher revenue, and actually still be a value play against land-based alternatives. which as we've seen in our business and for our corporation, serves us very well, even if there are recessionary times ahead. >> that's what i was going to ask about the strength of the consumer and whether you're seeing any indication that the macro is slowing down, because you operate not just in the u.s. but in europe where some are wondering if they're feeling it harder right now, too? >> it's fascinating. we've seen no sign of slowdown. that goes with respect to the booking trends we've seen for our results, for our on board spending levels, which if you think about it is the most real-time data point we can have about the health and the psyche of the consumer. and we are up double digits versus 2019. that trend has continued since we restarted. on top of that what we found is our european brands, which have

been trailing, are more north american-central brands, they have really been coming back strong, particularly over the last three months. they set a record for most bookings for their business as well. so as we've gotten through the winter, gotten through concerns of home heating and the volatility that centered from events going on geopolitically, we've really seen our european brands make strong comebacks and getting back to the levels that north america is. >> so, josh, clearly you've got a big hill to climb here when it comes to the stock price and the performance and the debt levels. when do you expect to get back to investment grade and how do you expect to do that? >> we set ourselves up incredibly well to do that over time. we're sitting on $8 billion of liquidity. we're expecting positive cash flow this year. when you think about our next few years, our order book, our new build pipeline, it's been in decades and decades.

we only have four new builds coming with an expedition ship through 2025, nothing in '26. that growth profile is incredibly muted. what that will allow us to do is generate all that free cash flow and use it to pay down debt over time, which is absolutely our strategy. >> it's a bullish outlook, josh. appreciate you taking the time to join us today. >> thank you very much. >> on the new numbers. >> have a good day. >> we hope to see you back next quarter. josh weinstein, ceo of carnival. morgan and carl, my takeaway, no slowdown in booking, both in europe and the united states. we'll send it back to you guys. >> good stuff, sara, thank you. later on this morning, the fed erred on the side of consistency last week and our consistency last week and our next guest saythat was a bigs ever better. it's when disruption hits your supply chain and ryder makes sure you're ever delivering with freight brokerage to transportation management,

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breaking headlines from fed vice chair of supervision, michael barr. steve liesman's got it. hey, steve. >> hey, carl. yeah, vice chair for supervision, michael barr, saying the fed is evaluating whether the application of more stringent standards would have prompted the bank to better manage the risk that led to its failure. by way of context, he's talking a lot about right there the 2019

changes to the dodd/frank act. he does seem to suggest that, perhaps, had those changes not been made -- i will tell you some of the banking industry disagree with this, but barr is suggesting that maybe had these changes not had been made, the bank would not have failed. the bank system he says is strong and resilient and well capitalized. the fed is committed to ensuring all deposits are safe and continues to monitor conditions in the banking system. i want to go through some of the tale of the tape here, which is maybe potentially interesting here. he says that silicon valley bank was assigned a new team of supervisors in 2021. they were issued three warnings of ineffective oversight in may of 2022. the fed's ranking of silicon valley bank in the summer of 2022 was downgraded to fair. supervisors expressed concern about industry profile -- the interest rate profile in october

of 2022. maybe most interesting, guys, in february 2023 the staff highlighted two of the federal reserve board o valley bank in a broader presentation about that impact. they do say -- barr will say it's the job of management, not supervisors to fix the problem of a bank, but it is interesting the board of governors itself in february of 2023 was, indeed, presented with the issue of interest rate risk at silicon valley bank, among other banks in the system. morgan? >> sounds like that will be a key topic in questioning we get over the next two days from lawmakers on the hill. steve liesman, thank you. let's talk more about the fed with bmo wealth management chief investment strategist. i want to get your thoughts on what we just heard from steve liesman, given the fact that what goes on in the banks each day in terms of headlines is

really what moves stocks more broadly. >> yeah, this is a very important consideration right now. the fed is sort of picking up the pieces to see what happened. but really what's important now, one, is interest rate policy, but also to see where the risks continue to lie in the system and make changes accordingly. the fed definitely has its work cut out for it. but with this recent interest rate decision seems to be erroring on the side of continuing to tighten, which is problematic, given the current stresses. >> we have seen a growing chorus of market voices saying that the fed made a mistake and they shouldn't have tightened. i believe you're one of those voices. why do you think that was a mistake last week? and what does it mean in terms of affecting the way you're thinking about your investment thesis moving forward? >> yeah, we do think it was a mistake. the fed at this point really doesn't have good control or good understanding of exactly how restrictive monetary policy

is. that was, perhaps, already the case given the lag effect with which interest rate increases work. but also now the banking stresses really exacerbate the issue and make it quite unclear how restrictive and how much tightening is going on in the financial system. so, it really think it would have behooved the fed to stand pat, let the existing interest rate increases work their way through the system and let the economy and markets calm down a bit. how does this change our thesis? we still think a soft landing is feasible but we think the risk of increase if the fed is not really standing ready to make more nimble adjustments that might be called forgiven the current circumstances. >> what would those be? >> well, one holding off on interest rate increases, but also really standing pat at the previous meeting would have shown an indication that the fed is willing to be nimble and understands that inflation is probably actually coming down on its own in some forward-looking

measures that inflation are starting to look good relative to the backward-looking measures of inflation. and should interest rate cuts be necessary later in the year, that the fed stands ready to do that. and if the fed is increasing rates, i think there's less confidence that the fed will actually move nimbly if the situation changes materially. >> right. if their goal is to crack the labor market, that clearly hasn't happened. i assume you're counting on that being a lagging indication? >> well, we don't actually think the labor market needs to crack. if you look at wage growth, the fed is making a few links here. the first is the labor market too tight will lead to excessive wage growth. we've already seen various wage growth measures, wage growth is coming down to a very reasonable level that should not drive inflation going forward. we actually think the labor market can stay relatively tight and healthy and doesn't need to crack. we think that's a misguided notion that the labor market needs to crack. what needs to come down is wage

pressures and that's already happening. we think we're getting to a relatively comfortable place where the fed can take a pause and assess how the economy's going to play out over the next few quarters. >> thank you for joining us. >> thank you, morgan. as we told you a few moments ago, bitcoin, binance and a bunch of other crypto exposed names getting hit after news the cftc is suing binancever som o ç]

today's "tech check" and deirdre bosa on this statement.d opaque enterprise. >> talking about how theylp 2346789s but at stake is really what you're able to do in terms of crypto trading in the u.s. and what you're able to do offshore. regulators have made it difficult to dojfq things like trade crypto derivatives so coinbase is not positionedçó to let its users do that but ejtt is. it is located offshore so it's subject to different regulations. coinboyce,ñijf so they are sayi that it isxd allowing and encouraging users to use things like ko■vpns to get outside of .

■ registered. jz of it, it is very fascinating. ■ say that ñibinance on alpr to operate is deliberate.w3 guys, cz, the ceo answers to no certainly doesn't answer to the isn't located here.ecause binan- it makes up a small portion of its business.ñrc >> shares are down almost 10%. i'm surprised given the fact that what you're saying, that doesn't mean it could -- i believe it's a br3-!uju qñicracn but could benefit in this scenario. >> i'm with you on that.ñi you would think coinbase would thoughq th operating throughlp vpns have bn

hit.xd a race to the bottom but interesting part as well. the lawsuit calls bitcoin and ether commodities, it's been defined as a commodity but there's been more dis1r%pancy when it comesq to ether.t( the chair has argue)] that ever cryptocurrency other than b==%9d1 falls under securities law so the cftc is saying it's ether is nowoke1 a commodity th could be affecting bitcoin, ether, cryptocurrency pricesqñi altogether and maybe that's why you'req seeing coinbase asñr we because ether does make up a relatively large proportion of trading. &háhp &hc% was down 4% and was down more and thatok speaks to the idea tt most of its business is international andlp will affect

much smaller portion and even though itr finances publiclyq available, yu can imagine it's a lot more profitable because it does allow users to do more things like >> yeah, it's fascinating. of which is thexdfá turf warr deirdre, t deirdre, t down. (pensive music) (footsteps crunching)

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comments like that. you could argue in terms of apple, though, that's a national security topic too because it speaks to the reliance on that part of the world. taiwan with smell economy conductors and how corporate america is happy to navigate that. >> b of a has a table and says the leadership crisis is over

because tech has outperformed the s&p so far this year even though last year was a disaster, but the top of that chart is meta and a lot is exactly what we're talking about. the ways in which it would benefit if in fact tiktok was reined in. >> that it's cutting costs and sold off as much as it did. >> we are holding gains. let's get over to "the half." >> welcome, i'm scott wapner. the good, the bad and the question of whether things are still going to get ugly for stocks and your money. we debate that with the investment committee. joining me at post 9, joe ter nova and steve weiss. dow good for 161. the s&p 500 had given up 4000 but there it goes, 3973. nasdaq just dipping negative but a lot of talk about what's happening in the bond market as