futures are still higher, up by about 25 points. the dow last week up for four weeks in a row it was a fgain of about 1.2% s&p futures weaker this morning but down by less than half a point. nasdaq futures down by just 4.5% the ten-year looks like it's yielding still above 3.5%. 3.564% join us tomorrow right now, it's time for "squawk on the street. ♪ good monday morning, welcome to "squawk on the street," i'm carl quintanilla with jim cramer, david faber at post nine of the new york stock exchange, watching spacex this morning, set for the maiden test launch of its new star ship, the most powerful rocket ever built meantime, futures pretty steady as the earnings picture heats up 62 s&p companies this week, including some financials today. road map is going to begin with a big week for corporate results.

tesla, netflix, as we said, a bunch of s&p, dow components, schwab and m&t crossing the tape this morning google's ceo is saying that a.i., well, there's a warning there. society isn't ready for its rapid advancement, and that "it can cause a lot of harm. and as carl mentioned, it is spacex's most powerful rocket launch ever. we're going to bring you starship's maiden voyage that's going to be later, live this hour. let's begin a new week for the markets and a busy earnings calendar, jim. we have 30 s&p'ers so far. best week one in a decade. >> look, we came in with the lowest expectations. last time i was reading back over at jpmorgan, this may have been the best jpmorgan quarter not a lot of loan losses, huge amount of business, obviously, took in a lot of money in the second half. they made a lot of money because people have not really pulled out of the low yielding to go

into high-yielding yet david, throughout the ones that we saw last week, people just aren't that savvy, and they're perfectly willing to keep their money in the bank and not move it to something higher yielding as fast as you would have thought, so there was more money made as there was a lag, more of a question of how smart the deposit base is. >> right i mean, again, they are, over time, expecting deposits to erode, and it's important to point that out, but they did get this inflow of deposits that we all knew about and discussed on friday we all knew was most likely happening during that two-week period, let's call it, in early march, and they benefitted from that but it was a lot of other things interestingly, as the day went on, wells fargo did not perform as well, and you were positive on that day. >> some people felt the expenses were -- they had to hire 10,000 people in compliance once again, look, i thought charlie scharf did a good job. they bought back $4 billion of the stock, they had really

excellent loan loss control, but carl, this had to have been -- this was a scandal, and they were working through, and he's just trying to check boxes i just -- what a run amok situation this was and to think that charlie scharf is one of the smartest operators in the world, has still not completed what happened in 2018 censure? it's extraordinary how poorly run, how out of control it was, and charlie's going to get it together one of the reasons i felt it was going to be a good year is that i think maybe he finally roots out everybody else who's left. i don't know how the government let this thing go. for years. >> well, two things i want to get you on one was small banks on friday lagged big by five standard deviations that got a lot of notice but then we got the data friday night on bank lending, and you had small and large loan growth increasing and emergency lending down for three straight weeks. >> look, i thought that -- i was

encouraged by everything that came out after the close now, look, it's intermittent if you take a look, i think you're going to see the banks that have just been so hated not go down that much more i do think that first republic, i don't know -- i don't know how they're going to -- i think they have to do something there david, the regionals are just -- i think you're going to see their hang in. i it depends schwab is trying to hold at 50, but they did pause their buybacks, which people don't like >> they did. there's still questions at schwab in terms of how many people are keeping balances there, they're getting paid 0.35 on, and they'll move them into treasuries, and obviously, schwab will not benefit from that net interest it's able to capture. what about the overall market as we head into this week, jim? >> look, i don't want to get -- i mean, the great thing about the market had been that there was such low expectations, and then jpmorgan, which is the

biggest, the dominance of this bank for how many years already? and there was a level of levity to the conference call where it's like, hey, you know what? we're as good as we've always -- we're still kings. i just don't think you're going to get anybody as good as they were so, if you start out with the best-performing box office and then the box office goes down, that's how i think the banks are going to be. >> you have said pretty clearly that this is a bull market we're in a bull market >> absolutely. >> tom lee this morning looking at the last 20 days, 65% of those days have been up days >> i thought tom spot on i know tom some people feel he's impermeable. that's not true. i think what he's saying is there's a lot of breadth now people say, wait a second, it's still being led by, you know, artificial intelligence. we should talk more about what was said by google, but i think that there's an element of

trampoline here again where you go down and you have to buy. look at caterpillar, downgrades to caterpillar, and then boom, the stock is back at $223. that's the kind of market we have right now it's resilient, and we haven't seen resilience in 18 months >> now take empire this morning, looking for a negative read of 18 we got a positive 10 prices paid go from 41 to 33 that's a good set-up >> it's good i went back over the cpi i've got to tell you, the cpi is focused on rent, and when you go and you look at what the calculation of rent, david, like, rent is overweighted, i think, in this index and therefore causes the cpi to be a little more negative. and i think that there's a lot of other expenses in your day-to-day that are under -- like insurance hurt your cpi and housing hurt your cpi, but housing is rent, and yes, we don't have enough rentals. that's what it is.

if we built more rentals or ovbut rentals, the cpi would come down. we should not key on that. that should not be what powell keys on. when i look at that index, if you did chat and said, give me a better index, it would do it >> it's not clear that powell does key on it, is it? >> no, but we key on it because we think -- let's put it probably five hours of our daytime was spent talking about it >> yeah. >> people are now looking at yellen's comments over the weekend, where she said to cnn, some of this credit tightening could do some of the fed's work for it is she trying to send a shot across the bow over to the fed >> i think that's exactly the opposite of what they've been -- well, they put out these people from various feds who say, no. but when you look at what jpmorgan, wells fargo said -- citi, look, by the way, citi, boom time. citi was a boom time quarter but wells fargo and jpmorgan are saying, listen, everything is getting more rational, and if it was getting more rational, it

would almost be like what happened in march made things a little more -- a little cooler, not so cool that they're done, but certainly cool enough that they don't have to do a lot of hikes, and you know, that's the wrap that's the wrap, and that's the yellen wrap, and i think it's going to turn us out to be correct. maybe not. what are you doing >> looking at this release from roblox >> david, i'm glad you brought it up. >> we have a few movers this morning, and roblox is going to be amongst them. we'll call them march metrics, key metrics they released for the month of march daily active users, up 26% year over year. hours engaged 4.8 billion. you can see what it's doing to the stock price. >> if i were them, i would stop releasing monthly numbers. >> clearly, these numbers, not what had been anticipated, at least, by many investors again, we'll see how the stock opens when we begin trading 22

minutes from now but jim and carl, roblox is -- the key metrics. >> they see -- they're not going to give you monthly numbers anymore. i find -- this is a supposition, carl i've been working at this for a long time. from fourth grade, when you discontinue monthly numbers, that does not mean the monthly numbers are going to start going up you're on a streak >> meanwhile, you got montana banning tiktok across the state. >> i know. montana. >> and roblox and snap and meta are among the names ostensibly that would get some timeshare if that were to get extended. >> the timeshare's stocks are high i do think that meta -- like, there was somebody -- new street downgraded meta. i don't know i have a lot of potholes in my new street but meta is on fire. and here's what i'm coming up with i think zuckerberg is spending all this time on a.i and it's time well spent

i think that reels is more and more a part of the -- you get shown reels by the young -- it's on reels oh my god, it's on reels you're not just on tiktok? no and i think that instagram's way above where it was last quarter. and they fired a lot of people i mean, amazon needs to take a playbook from them amazon, so sick of me saying that, i did it just to -- because they think they're so powerful but i did order a lot of tide, comes every month. >> well, one thing we mentioned a.i. this morning. alphabet is down in the premarket. "the times" this morning reports that samsung had considered replacing google with microsoft-owned bing as the default search engine on its devices. meantime, pichay on "60 minutes" last night talking about the risks of a.i >> it will be possible with a.i. to create, you know, a video easily where it could be scott saying something or me saying something and we never said that, and it could look accurate, but you know, at a

societal scale, it can cause a lot of harm. >> "times" says that samsung news, though, really jolted the executives within alphabet >> and that's why the stock is down >> yeah. >> bing. >> at least appears to be down the idea that bing could replace as the default search engine on samsung devices. >> that was shattering >> if it were to be the case -- now, obviously, "the times" reporting they're working on an entirely new search platform driven by this a.i we had pointed out many times that alphabet, despite all the years they spent, how could they be behind? or at least appear to be behind? it's not clear their technology is behind, but their commercialization and getting something to market was. >> well, i think there were a lot of people internally there who felt that if more catches on, the less likely you're going start reading this page that has millions of ads. i think google's very vulnerable to the jumble of ads that come up when you hit something, and it would -- just say, give me

the best x bing doesn't have to worry about ads anyway it's really a less to lose situation. but at this point, wow i think that -- i think that a lot of what happened with "60 minutes" was to show samsung, et al, deep mind is big, we're well ahead of the situation they had a hemingway short story. they were doing a lot of cool things last night. they were doing cool things. >> what is interesting, picai was talking specifically about the idea of the deep fakes >> yes >> where somebody could create a video of you and, by the way, it's something we all need to be aware of, frankly, because it could have you saying something or me or any of us saying something, and it could, to the user, appear to be truly us. >> this is the problem with a totalitarian regime. >> yes, but what you also hear from a lot of leaders in a.i., which is interesting, an unprecedented -- they're constantly asking the government to step in and stop us

>> give us some guardrails >> stop us from what we're doing. we're in a competition, we can't stop, because our competitors won't stop or other countries won't stop, but at the same time, we kind of feel like we do need to in a way have guardrails, and it's very unclear whether the government is going to be prepared to step in here with appropriate guardrails for a.i >> meanwhile, you had musk a couple weeks ago sign on to that letter say, let's take a break, and then friday night, "the ft" says he's working on it himself. >> what do you do when you want to have -- when you want to have -- let's see if this is the real david if it's the real david, maybe not. what do you do when you decide you want to have a rival open a.i. what do you do >> wait, i'm not understanding the question >> if you want to have a rival when elon musk wants to -- >> create a rival? >> you go to jensen huang, and you say, i want every powerful chip, and china is not allowed

to have those chips, but now we're starting to see, are there workarounds? you can't really work this without jensen and google has a relationship with jensen. >> we should point out again, because people need to understand this chain, they need the gpus from nvidia, which were designed by nvidia, one of the most valuable semiconductor companies or maybe the most in the world, which are made by taiwan semi. the designs are delivered to taiwan semi, which then makes the chips, because they make 80-plus percent of the advanced chips in the world >> we did have a warship there i'm doing a piece tonight about that about how lightly defended taiwan is. wow. >> and that, then, lends itself to the larger conversation we're having and that others have about the geopolitical risks of the competition between china and the u.s. and where it leads. by the way, fink, the other day, i thought was interesting when

he talked about -- he talked about china being -- having an inflationary impact because of the decoupling i have had other executives talk to me about, well, you know, china could be slowing dramatically >> i know. >> because of the decoupling >> then i heard that china -- but they're buying a lot of hermes they're worse than we are. their palm beach is bigger >> class differences >> here's what's so strange about china. lvmh and hermes have unbelievable numbers and yet there are other people who say in china, the property section is doing better. but the belt and road, they're getting killed on >> bad loans >> when you go to milan, it says, "welcome to milan, belt and road," and you realize, it's china. chinese are welcome in milan i want to be welcomed by, i don't know, da vinci da vinci should be more of a belt right? >> sure.

>> "last supper. >> da vinkci is good sofia lauren would be nice to say hi >> how about him not bad. i didn't know you knew pop culture. >> every so often. i rely on him mostly take a look at the premarket. we did get stories on the tape saying elon musk on this starship launch, the pressure valve appears to be frozen, so unless that begins to work very soon, there will be no launch today. >> oh no >> i'm just hearing from somebody at the launch site that it may be scrubbed >> yeah. we'll watch that futures here mixed we're back in a moment g bank's . no big deal? go on... well, what if you partner with ibm and red hat, use a hybrid cloud solution to connect data across multiple systems globally, then analyze all that data with watson. okay, but this needs to meet our... security standards? yup. compliance standards? mm-hmm. so they get the insights they need...

yup. in real time... check. . ..to make quick decisions? check. aaaand check. that's the hybrid cloud solution ibm and a global bank created. what will you create? ibm. let's create.

everything's changing so quickly. before the xfinity what 10g network,ate? we didn't have internet that let us play all at once. every device? in every room? why are you up here? when i was your age, we couldn't stream a movie when the power went out. you're only a year older than me. you have no idea how good you've got it. huh? what a time to be alive. introducing the next generation 10g network. only from xfinity. the future starts now.

live shot here of spacex's star base in texas where elon musk's company has just scrubbed the launch of its starship rocket let's bring in morgan brennan at hq >> so, the highly anticipated, highly awaited first orbital test flight of spacex's starship has been scrubbed for today, so all the folks that are tuning in, all of the investors that have beenualitying waiting for this moment will have to wait a little bit longer. you'll notice that the countdown clock is still going the reason is because even though the launch itself has been scrubbed for today, they are continuing with a wet dress rehearsal, meaning that they're

continuing to fuel this mega, mega rocket system right now, basically in a run to see how that process goes, but you're not going to see fire. this is not going to get off the launchpad in star base, texas, today after all. this has been so closely watched, carl, because when elon musk talks about colonizing mars, this is the mega system that is poised to do that. it's also contracted with nasa to the tune of a $3 billion contract to land americans on the surface of the moon. wh whenever it does get off the ground, it will make history, because it will be the most powerful rocket to ever fly in human history, period. >> so, talk about, for people, morgan, who are just coming to the story, is it about the pounds of thrust that make this possible what is different about the rocket itself? >> there is a number of things the first is that it is essentially the holy grail of

space flight it is a system that has been designed to be fully reusable. we know that spacex's other rockets, the falcon 9, its workhorse, and the falcon heavy, have first-stage boosters and other aspects of the rockets that return to earth to be reused over and over again starship has been designed for the entire system, both this booster that is double -- nearly double -- twice the thrust of the sls rocket, nasa's rocket that flew last year, that is currently the most powerful in operation, but also, the starship part of the system itself, which is the part that will take cargo to low earth orbit, to the moon, eventually to mars and other parts of deep space as well as eventually humans so, it is very closely watched, because once they tap that reusability aspect, which has never been attempted before, you're talking about launch costs that are going to fall dramatically elon musk has put an ambitious

price tag of $10 million on that the falcon 9 is $67 million, just to put that into perspective. >> changes the entire economics of space travel. pretty incredible, and we'll be looking for launch when they reschedule >> might be 4/20 >> that would make sense knowing elon coming up, we'll get cramer's "mad dash." futures steady ahead of a week wcharngarinhi enis e definitely going to accelerate. don't go anywhere. verizon busi. (woman) it's a perfect fit for my small business. (vo) verizon has business internet solutions nationwide. (man) for our not-so-small business too. (vo) get internet that keeps your business ready for anything. from verizon. [office sounds] ♪upbeat music♪

♪♪ ♪when the day that lies ahead of me♪ ♪♪ ♪seems impossible to face♪ ♪a lovely day (lovely day)♪ ♪(lovely day) (lovely day)♪ ♪(lovely day)♪ a bank that knows your business grows your business. bmo. go. go lights. go big city lights. go spotlights. go stadium lights. emerson software helps clean energy become reliable electricity. go “good night." go boldly. emerson.

well, we've been paying attention to the big banks, the regionals and now the trust today. look at state street, down about 13.5%. revenues shy bny medilon is going to report

later in the week. opening bell coming up in a couple minutes, and you can always catch us any time, anywhere, just listen to and follow the "squawk on the street: opening bellpoas " dct. our customers don't do what they do for likes or followers. their path isn't for the casually curious. and that's what makes it matter the most when they find it. the exact thing that can change the world. some say it's what they were born to do... it's what they live to do... trinet serves small and medium sized businesses... so they can do more of what matters. benefits. payroll. compliance. trinet. people matter.

my name is douglas. i'm a writer/director and i'm still working. in the kind of work that i do, you are surrounded by people who are all younger than you. i had to get help somewhere along the line to stay competitive. i discovered prevagen. i started taking it and after a period of time, my memory improved. it was a game-changer for me. prevagen. at stores everywhere without a prescription. ♪♪ ♪ a bunch of dead guys made up work, way back when. ♪ ♪ it's our turn now we'll make it up again. ♪

♪ we'll build freelance teams with more agility. ♪ ♪ the old way of working is deader than me. ♪ ♪ we'll scale up, and we'll scale down ♪ ♪ before you're six feet underground. ♪ ♪ yes, this is how, this is how we work now. ♪

the opening bell is brought to you by nuveen, a leader in income, alternatives, and responsible investing. all right, we're about to get an opening bell, two minutes from now, but that does leave us time to squeeze in a "mad dash." you want to hit chipotle >> this is not about my friend knocking the baseball cap off a guy, which is on twitter tremendous chipotle get this truist raises from $1,800 mcdonald's is doing great and there's a nice piece on mcdonald's, but this is back to the ascendance of which i haphappen chipotle, and it was because of the fajita quesadilla. look at that stock it's finally breaking out after multiyear consolidation, and i like it to go to $2,000. i do i like it to go to $2,000. >> on the continued strength of

these items that are going to drive traffic? >> yeah, because i think what's happened is they got their groove back. i think everybody got hurt by the pandemic and lack of creativity, but this company is so well run. brian nichols, spectacular, and i don't know, we get chipotle all the time at the office and we're just always amazed at the variety is now fantastic again. and we're begging them to get the brisket back i don't know if you had the brisket. chipotle's mexican i don't know if you know that. >> i was -- that, i was aware of >> but it is spectacular they're on their game like they haven't been in -- since, i don't know, ten years ago. >> well, the key is, i mean, we know menu items can draw traffic, but you can't make the kitchen too complex, and that's clearly what at least nichols' legacy is going to be. >> they've got machines where they can -- they're probably, i think, the most forward of anyone trying to not replace high-level people, but the drudgery, which is what you want chat to do you want to replace drudgery, not people

creative people should stay creative but i don't know adobe fire fly and chat is better than almost everything. >> let's get the opening bell here, kick off a busy week at the big board this morning it is fedex celebrating its 50th anniversary. fred smith >> fred smith built a company where you can't ever challenge them, and raj subramanian has taken them to another level. i think fedex is an amazing stock to watch, particularly if there's u.p.s. labor problems. big teamster contract coming up. >> you're now a believer in the potential transformation did it take having fred sort of step aside >> i think that fred left it, got europe together, but fred knew it was time, and i think

this raj subramanian is for real he came on the show, saw a recession coming, saw it ahead cut back what they did was -- >> he saw a recession coming that didn't come i didn't mean to touch you >> what's that all about >> what are you talking about? >> space >> you want hugs all the time. now you don't want me to touch you? too bad. >> i want it on my terms now, get this. i used to have these three different divisions. on the conference call, it was like three different companies one company now. and there's this layers upon layers of management that are coming on. put together, you know, pretty quickly, and now, without those layers, we're talking about $4 billion they're going to save, of which, by the way, is $4 billion we're going to say, like, $17 billion over280 years. this thing is happening. this thing is happening in realtime, and i think the stock -- that's a chart. i wish you'd do a longer term chart. you would see what the 2021 -- the breakout that you're about to have here there it -- oh, that's head and

shoulders. that's not so good believe me, it was breaking out of here. it is. >> i believe you i mean, well, yeah, we believe you. >> yeah. okay >> all right good >> stop touching me. >> glad we dealt with that i didn't mean to god. i didn't know you'd react like that >> your wife's, like, did you get the tomatoes fox chat we hare going to get, for example, csx on thursday, some color, at least, on industrial activity >> and union pacific i'm worried about union pacific. maybe we'll find out what happened there they said, oh, the transition's been going far while no one knew the transition reminded me of the old starbucks transition everybody's supposed to have known but nobody knew. i want to know about that. an important thing that happened this weekend is prometheus i had them on. i'm going to have them on tonight, both merck and

prometheus >> let me repeat that. both of them are coming on rob davis, ceo of merck, and the ceo of prometheus? >> we have prometheus on, and i was, like, so -- tripled, and i was like, give me a break. come on. but if autoimmune diseases, frankly, a lot of people don't want to talk about them. they have them, and they may be embarrassed or it may be difficult, but this may be the first new, targeted autoimmune that a lot of people are waiting for, family members waiting for. >> why is there a -- why do you think that people are reluctant? is it because some might not believe it's true? >> i think they're embarrassed that it can cause thing that are -- >> we're talking about crohn's and colitis, for example >> also, if you have -- you can get lumps in places. it can be unsightly. it can be painful. and it's so broad, and they really don't have anything they've got things that do 50, 60% chance, which with that illness is good. this is targeted, so maybe we can really make some progress,

and this can really help merck by the time they get to the keytruda loss of exclusivity i think this stock -- prometheus, if you go to the website, it's no longer like they hit you with a nuclear bomb they target, and that's what's so necessary >> i'm glad you talked about the science. let me give you a little bit of background to the transaction itself, because of course, $10.8 billion makes it one of the larger deals best we can tell, largest dollar price ever paid for a company that's only out of phase two phase two trials >> wow phase two trials, amazing, though >> and the stock moved up appreciably at this point, but you're talking about a 75% premium to where it was trading the other day. that is a result, i'm told as well by people who are involved, from what was competition to buy this asset so, you can assume, and i have been told by people who know, that there was competition to buy the asset. >> there was >> yes merck obviously came out on top.

as you point out, jim, keytruda comes off patent at the end of the decade the belief is that you're moving into phase three now for this company, that maybe you get a drug on the market by 2027 and that, in addition to the acceleron deal they announced in september of '21, around the same dollar amount, $11 billion, will position merck to deal with keytruda coming off patent by having a portfolio of these drugs and immunology and an important area so, interesting. we've seen these kinds of deals before they do typically come with large premiums, although the dollar amount here is quite a large one. and again, only out of phase two, but a lot of these companies, you know, they're not -- phase three is expensive. then, commercializing, this is not an orphan drug this is requiring a large salesforce there is some competition in the

market already if you are prometheus, you're probably thinking, now is a good time to sell, particularly off those very strong results. >> but remember, they did a big offering they came on after the offering, which is so much better. some of these companies come on, hike their stock, and then they do an offering but when i didn't want to believe, because it just sounded -- if they can really do stuff for even irritable bowel and for maybe lupus, who knows, but what was amazing is the stock had already tripled, and i said, i'm late we were late on this right at the end, i told mckenna, the ceo, my god, we're not late he said, no, early >> sometimes we talk about ipos of technology companies, as often we should, but this is a ten-bagger on the ipo price and it was only a couple of years ago, jim >> who wanted to take a chance on the phase two so many phase twos fail. >> and by the way, largest shareholder, one of the largest shareholders, cedars sinai, because it was their biobank

that contributed to it, and then nestle, also a very large shareholder as a result of something they spun but kept a stake in >> well, this is for real. and i want merck -- merck is so much more than just an -- you notice how merck is so much more than cancer now, and that is so smart, because look at what happened with pfizer got in that rut. they just didn't develop new stuff, and they didn't get any credit for what they did >> pfizer coming off announcing an enormous deal, one of the biggest of the deal, only a few weeks ago. >> the big guys are back, looking for a pipeline, and they're buying it again. for a long time, they didn't buy anything >> no. there is some buying going on. >> gsk >> for those who are looking for deals, i am hearing green shoots, some positive, because i make a round of calls on deals like this, and everybody else is, like, yeah, you know what, things are feeling a little better we'll see if we get -- not in this area, per se. i'm just saying, generally >> for public or private >> for public companies. >> well, there are so many

biotech, but the -- and i'm involved with a drug myself, and you get phase two, and if it's any good and it's something new, phase three is just millions of dollars. so, it's like, if you're prometheus, they had the money to do it, but, you know, merck needed them more than prometheus needed them. i saw the same thing with biohaven, with their migraine drug pfizer just paid a fortune for it vlad, who runs biohaven, knew he couldn't get anyone to know about the drug it's called neurtech i'm shocked there's this migraine medicine that pfizer has, and no one's heard of it. i brought them on to talk about it because no one's heard of this stupid -- not stupid. it's a great drug. it gets rid of your migraine in 15 minutes, and i see people say, it's horrible take this. but they couldn't get the word out because they were a small

drug company prometheus could not get the word out, and this is -- >> there was a reason why companies like this choose to sell at a particular time. >> that's a great point. i didn't know there was someone else >> reward their shareholders yeah, there was competition. speaking of competition, alphabet shares are down because of the continued concern about competition from microsoft we've talked about it so often since the introduction of chatgpt -- not chatgpt 4, but we've questioned as to why google, which seemed to be far ahead in deep hymind and what it was doing failed to be ahead when it came to the marketplace. the latest report is a "new york times" story that goes into a broader story but includes the fact that samsung -- samsung, which uses android, might even be considering using bing as the default search engine for its phones again, they use android, and they have for a long time, as their operating system google's android seems hard to imagine they could make that move, but that's "the

new york times" story. as much as $3 billion in annual revenue at stake with that samsung contract, which is up for bidding. you're seeing that >> can you imagine how worried -- can you imagine working at that huge part of their -- come on it's like the -- they are. that's what they are the search >> yeah. that's what they are >> you suddenly find yourself as existential for them >> that's why there's been so much speculation about what the structure of the apple default search deal is no one really knows. when does it end how much is it worth clearly, i mean, the estimates are somewhere in the $15 billion range. >> i know. i have friends who use bing. they say it's not junked up. and i think that alphabet was pretty fat plus they spent a lot of money on things that don't work. i don't know amazon is in an existential crisis over a.i. i don't think they're caught up enough >> you don't >> no, i do not. i think they're behind >> and then all these players in

a.i., as ewe said earlier, fascinatingly, are competing with each other and saying, please, government, save us from ourselves. that's something else for us to be concerned about >> by the way, jassy's note said that a.i. is everything. the difference is zuckerberg knows a.i. is everything, but he doesn't talk about it. he just talks about efficiency >> you got pichai saying the same -- have we played anything from the "60 minutes" interview? >> little bit in the a-block >> they start in the morning not knowing chess. in the evening, they can beat the number one chess player. >> on a much smaller scale, but still interesting, i don't know if you've seen cheg today rolling out cheg mate, which is a study aid for students stock not moving much, but it is higher >> i saw there was an executive that praised frank i don't know if you follow frank at all >> frank >> frank >> frank >> yeah, jpmorgan. frank. you don't follow

this was a great piece this weekend about fraud, and they got had -- i mean, look, everybody's getting had. what they're talking about is there was this wave of fraudsters, basically. now, cheg is not -- it's the internet let's put it this way. there was a -- when you have a lot of people doing different things in fintech, they are supposed to be good. jpmorgan bought -- >> oh, you're talking about the company. >> yes >> and the lady who was -- yes >> right right. but i'm saying that in "the new york times" article, they had -- and it was endorsed positively on twitter by a cheg executive, but it was not dan rosensweig, but all these guys are following what's going on in public company -- companies that are trying to go public. they can't and get bought, and that was -- i mentioned frank just because of interest with cheg

>> got it. yeah sure whatever you say >> just follow me here >> we all followed along on that one. >> i just thought this article was very interesting in the "times." it was about how many, you know, ozzie, and it was theranos >> i want to get back to whether sundar pichai, who was just on "60 minutes," should they be making a change in leadership at that company isn't this existential for them? >> deep mind guys, the british guys, they seem really smart why weren't they leading >> it's a lot of bureaucracy at alphabet, it feels like, doesn't it >> i think that -- look, my travel trust owns it i'm worried about the justice department i'm worried about this i'm going to go to jeff marks. we got to downgrade this thing >> really? >> yeah. >> they have dozens and dozens of projects related to a.i. that have been in the works for years. >> right, but bing is for real people are using bing. i mean, that's just -- bing was

dead >> i'm just going to a.i. chatgpt. i'm just using it directly i'm not going to bing. >> well, the "60 minutes" plus, whatever it is, the one we watch after, that was done with klchat it wasn't real pretty scary >> serious >> the figures were. look, i think you're right david, i've not even heard anybody say what you just said >> well, i said it i've heard a lot of people say it by the way, i don't think it's happening. i don't think it's going to happen >> i heard too big to attack, too big to go after, not the right size not like salesforce, which was the right size >> listen, you've got certain shareholders who have been complaining, the children's fund, chris hohn is a large holder it's a controlled company, but -- >> you're going to make headlines with that, david >> i'm not making any headlines. i simply ask the questions you're the one that makes the headlines when you're not talking about things like frank and taking us down roads that nobody has any idea what you're talking about. >> it was the cheg executive

>> why did i bring it up again i'm sorry. let's move on. >> i want to talk banks for a second >> please. >> a bank that's not doing well today, coinbase, finally, crypto seems to have reached a level, bitcoin, $30,000 is hard to get to, and hard to get through, and these trust banks, northern trust, that was probably the most easy thing to think about, and that's going to be the -- what people are going to say, hey, listen, the banks are hurt. the trust banks aren't doing that well. and that's true. it's just true they had their money -- people had their money in them. >> yeah. i mean, we've said this isn't -- >> we've said the trust banks could be trouble >> trust banks >> what's bny's tomorrow >> deposits can move fast. faster than ever >> on the other hand, jim, we do have goldman tomorrow, and b of a. >> i'm worried about both, just because jpmorgan was so great that it's going to be difficult. i think brian moynihan is doing

a terrific job, but jpmorgan, every line item was terrific, and it's almost -- you're not going to get every line item great at bank of america just can't be. goldman, obviously, there's been very little capital markets activity didn't really matter that much to jpmorgan, which was really extraordinary. it will matter greatly to goldman. i want to know if goldman is going to take the charge that i think they should on consumer or at least split off consumer, because they got to go back to being the premium wealth management and not being the wealth management for the masses i don't think they're very good at that. we'll see what david solomon says i think david knows what their strengths are and is going to make changes as per what's necessary. so, i think goldman -- i'm looking for a new goldman to appear i'm looking at them to go back to old code. >> you're not -- some of the bull arguments lately have been, oh, here's one with not so much consumer exposure. >> that's what i want. i don't want consumer exposure i want commercial exposure hey, by the way, another thing

that's happened is commercial real estate. not a factor on any of these they're all talking about a-buildings, mostly, and i know that's in the eye of the beholder, in dense areas where you can't build and one of the -- the bears on commercial real estate, barry sternlicht, terrific guy, if he reads through these, maybe he's skeptical, but commercial real estate, you would take that off the table as a worry after listening to citi, wells fargo, jpmorgan >> scott wreck ler, one of the bigger owners here in new york city >> talk about midtown? >> yeah, midtown that certainly continues to be concern for some it's -- what was the commentary that -- what was it specifically that encouraged you about what you heard from the big banks >> charlie scharf was saying, listen, we are in new york, and we're in san francisco, so i was ready to lower the boom. he says, straightforward, look, our buildings are doing well, and we have a-buildings, and then jamie dimon pretty much dismissed it as an issue at all.

our buildings are great. what's the problem everybody's current. they're giving you a level of granularity that you really feel they really are not concerned. >> i think if there is debt on many of these b-buildings that are 50 to 60% occupied at best, and facing an uncertain future, and about to ratchet up in terms of their loan and their interest rate, it's a different story >> we got to find out who really owns them. i mean, sl green always gets nailed >> by the way, the office reets are so small, that it barely doesn't really matter. >> jamie dimon, wow, it made me feel like maybe you go look at jonathan reading >> blackstone? >> maybe not as bad as you think. >> but they're diversified they're not in office space. >> office space turns out to be -- >> we're talking office spaces, not warehouses, not rental

>> blackstone reports on thursday as well quick reminder, you can get in on the cnbc investing club with jim at any time. just sign up at cnbc.com or use the qr code on your screen right there. it takes you right there watch bonds today. two-year got 4.16%, pretty much the highs of the month on the heels of this hotter-than-expected empire survey ten-year got to 3.56% and pretty much where we are right now. be right back. >> announcer: the bond report is brought to you by pimco.

take a look at apple year to date gains about 26% that's roughly three times the s&p's year to date returns tim cook going to new deli this week where he will meet with m modi part of their initiative to diversify their supply into countries likend iia, taiwan and

vietnam. stop trading with jim is coming up next. alex from u.s. bank! can she help? how about a comprehensive point of sale system... that can track inventory, manage schedules- and customize orders? that's what u.s. bank business essentials is for. (oven explosion) what about a new oven, can u.s. bank help us there? we can serve loans in as fast as 12 minutes. that would be a big help! huge! jumbo! ginormous! woo! -woo! finding ways to make your business boom. that's what u.s. bank is for. we'll get there together. power e*trade's easy-to-use tools like dynamic charting and risk-reward analysis help make trading feel effortless. and its customizable scans with social sentiment help you find and unlock opportunities in the market this is ge aerospace, advancing flight for future generations. ♪ welcome to a new era of flight.

jim and stop trading. >> the kind of things the bears have to deal with. jpmorgan upgrades hpq, it's hp,

saying that the -- maybe it's over maybe the decline, 30% decline, in personal, they did downgrade dell which is commercial, but this would be the beginning of a major turn and that's what bears have to most be afraid of is the trough in some of these cycles that have been terrible, has been reached i like this call very much and we think they've done a good job. putting this in the positive column. >> interesting don't we get -- do we get taiwan semi later in the week >> that's going to be interesting because they really do everything. they're everybody. find out whether the trough across the board - >> there was talk about them cutting capex, 28 to $30 billion, to the point of how expensive it is to make the incredibly complicated chips. >> lam research down 17 off of that. >> asml was down a bit too. >> asml is a good one. well, put it this way, you get

asml trades over there, down big. but i would point out that when you have semiconductor capital equipment boom, talk about an industry, $2.5 billion shut down china lam research that's how much they told them they couldn't ship to china and the stock went up. >> merck what i think is very exciting about the prometheus deal is that mark mckenna, when he came on, one of the most self effacing guys ever to come on just saying this could be the breakthrough no hype whatsoever i think rob davis, anti-hype, saying the same thing. >> yes. >> this is a big -- they're not going to hype it they're excited. >> see you at 6:00 "mad money" tonight with jim cramer when we come back u.s. chamber ceo suzanne clark has a bone to pick with sec chair gensler in a moment want more from your vitamins?

get more with nature's bounty. from the first-ever triple action sleep supplement... to daily digestive support... to more wellness solutions every day. get more with nature's bounty.

♪ ♪ the biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. it still does. what can you do with spy? ♪ ♪ 92% still active? seems high. seriously? it's just a bike. wait. they make a treadmill with an intuitive speed knob? yeah. want to try? 92% stick with it, so can you. start a 30-day home trial today. terms apply. - hiring is step one when it comes to our growth.

we can't open a new shop or a new location without the right people in place. i couldn't keep up until i found ziprecruiter. ziprecruiter helps us get out there quickly and get us qualified candidates quickly. they sent us applicants that matched what i was looking for. i've hired for every role, entry-level technicians, service advisors, store managers. ziprecruiter helps me find all the right people, even the most difficult jobs to fill. - [announcer] ziprecruiter, ratedthenumber one hiring site. try it for free at ziprecruiter.com good monday morning. welcome to another hour of "squawk on the street. i'm sara eisen with carl

quintanilla and david faber live for you as always at post nine of the new york stock exchange take a look at stocks here in the early going after sell-off friday, we're higher s&p up by a little more than 0.1% real estate, consumer discretionary and industrials leading the charge today financials importantly are stronger again and energy and health care and communication services all lagging we're about 30 minutes into the trading session. three big stories we are watching for you this hour roblox shares slumping the video game maker disclosed key metrics for march that showed a potential drop in average bookings per daily active user. state street plunging after profits missed estimates and total deposits fell 5% that was a surprise, down 14.5% or so. state street not the only name seeing pressure when it comes to the banks this morning charles schwab has turned around it's higher. we're going to follow some of these bank names as we get earnings schwab announcing deposit

outflows, pretty much on track to where the market was expecting. >> meantime we're getting some breaking news on the housing market diana olick has it. >> home builder sentiment in april rose one point to 45 on the index. that is along expectations anything below 50, though, is considered negative. this is the highest since last september. the index stood at 7 last april. of the index's three component, sales conditions rose 2 points to 51 and sales expectations in the six six months to 50 this is the first time both of these are in positive territory since last june, which is when mortgage rates took off. buyer traffic was unchanged at 31 the first time it hasn't changed all year interesting note the builders said currently about one third of housing inventory is new construction that's compared to historical norms of around 10%. we're just under a record share for the builders they also said the share of

builders reducing home prices continues to drop, 30% reporting dropping prices in april down from 35% at the end of last year the average price reduction was 6% but the share of builders using incentives rose slightly from 58% in march to 59 in april. still lower than it was in december back to you. >> diana olick, thank you very much. house speaker kevin mccarthy speaking right here at the new york stock exchange right now about the debt ceiling we're going to bring you any of the highlights that's not him, that's an introduction he is in the building to talk ate republicans opening gam bit on the debt ceiling, guys. something that, you know, we have a lot of inflation data last week and we're seven months or seven weeks until the date of when treasury knneeds to raise e ceiling. >> seven weeks. >> okay. sorry. >> that's why i asked. i misheard. >> i misspoke and corrected it

early june a lot of people think it's september. but the reason look, he's talking about it now and this is becoming an issue, we have a countdown on our hands, right, and it's unclear where it's going to go. sharp rise in cds prices, price to protect u.s. debt against default, nothing alarming but, you know, getting up to levels where we saw other debt ceiling standoffs. that price rising. we're going to watch the short-term treasury bills. the bottom line, it's unclear where we go from here because president biden has said he's not negotiating over the debt ceiling. leader mccarthy wants to use this to get spending concessions which it's unclear whether he can get something passed in his own house of representatives >> that's definitely the discussion regarding snap, for example, where gop senate leaders are saying, i'm not sure you know how much of rural america relies on food assistance, so whatever you guys put together in the house, we may not, as someone told politico on the gop side, we're

living in reality over here. >> snap is a big one because you have some of the new members of the house of representatives from new york and california, republicans, they can't be telling their districts they're cutting funding for snap, hugely reliant on food stamps, one example of why -- how many votes for mccarthy to become speaker it's going to be hard to get the votes, not to mention it's not probably going anywhere in the senate so ultimately, what happens? i was talking, david, to bakers this morning, starting to influence the way they're advising on credit and financing strategies around that date. don't be near the commercial paper market or anything like that around that date. we're dusting off our maybooks unfortunately. this happened in 2011 and david rosenberg points out during that time gold rallied sharply. the vix volatility index rallied and thinks those are two hedges for what we're about to go into. >> no doubt it's going to be a period of great interest for us.

again to the point you both made, it doesn't appear to be any basis for negotiation, just somewhat worrisome one side not willing to engage and the other side talking to itself about something that doesn't have a chance of happening. >> and - >> it's a risk. >> as david kostin of goldman told us the other day, one reason why you might end up where the hype cycle is over and stocks do well, his target for the year is flat because we are going to go through this crucible is what he would argue. >> everybody expects some sort of panic or freak out, get a done done and then we can come back at what cost, right? and what ultimately happens there? >> at what point do we game out what happens in seven weeks? in other words - >> starting today. >> if you pass it, what will start happening in the markets or happen if we have a technical default of some kind >> catastrophic, right u.s. defaulting on its debt. >> i would think so. never happened before, but because it's never happened

before i can't tell you what to expect. >> but last time we got close in 2011, actually treasuries rallied because they were considered safe havens you wouldn't necessarily expect for that to happen because the view is that it will get done. >> yes. >> they'll take it to the edge, maybe take it over and then it will get done. it's worrisome we have peter in the next hour to game through what's going to happen i would say, you know, counter to what mccarthy is announcing they raised the debt ceiling three times during the trump administration and no negotiations it's a little unusual that he's coming to the new york stock exchange to announce this during trading hours. there's a strategy there i think trying to, i don't know, create alarm, bring the issue forward, not own it, but someone is going to own it if they ultimately default. just another risk to put out there on your calendars for seven weeks. >> we'll start watching it closely. in addition to the judiciary, house judiciary field hearing today about crime in new york city, which some would argue is

an attempt at distracting from other issues as well. >> now treasury yields up 3.5, 6% stocks higher as well. we're watching the big banks and the regional banks as well charles schwab is one we're watching shares headed higher after modest earnings beat, deposits falling 30% from last year the stock price is higher. j and p securities devin ryan joins us now of all the things, the stock price, the bad news has been in the stock. fact it's higher, i guess, is somewhat good news, isn't it >> i think it is good news i mean this is kind of the push-pull between the near term and long term. near term they guided revenues down a bit relative to expectations, and so they're still seeing headwinds from higher funding costs, deposits go out the door. the flip side, the long-term story remains very much intact they had a fantastic new asset quarter, up 7.5%

the core business is doing fine. the push-pull between what's going on with deposits, they said we think we're getting toward the tail end of the deposit movement and maybe that's part of what's happening the stock this morning. >> what is the risk from here? isn't everybodyworried about earnings and margins even if deposit outflows have stopped, aren't we seeing a lot of rotation within companies like charles schwab and to less margin producing assets? >> exactly sara, so that's what, you know, essentially led to the lower guidance and so what's interesting is that they did reduce guidance for the second quarter, yet the stock is up i think to that point, people generally understand this headwind and it's not over yet and it is very expensive when they have to bore from the fhlb relative to 50 basis points deposit, but, you know, i do think that they made the case that we're getting to the tail end of that and then the other

side, the core business, you know, is performing fine so, you know, after the stock is down 30 plus percent i think that's where expectations on the near term may be less relevant to people looking at the long-term earnings power of the company. >> a company's ceo on the call right now said our franchise strength and financial model remain very much intact. we're winning in the marketplace amongst clients. anyone suggesting otherwise is mistaken with those strong words you seem to be indicating the 30% move down was justified what are your expectations for the stock? >> so, yeah, we're looking at earnings power when the stock traded down, it felt like there was liquidity kidnappers in the market and we were pushing -- concerns in the market and we were pushing back. liquidity can be expensive so our view is that earnings were going to come down a fair amount and that's been happening, and, you know, i think we are getting to now a point where they're guiding lower and the stock is

stabilizing. we're probably getting into more of a fair risk-reward in our opinion. but that was really it it was more of an earnings headwind than any liquidity fear, and that was overblown. >> when it comes to customers and their clients' cash behavers, is there anything we can learn to apply more broadly. >> i think a couple things transactional cash, which is cash that customers are keeping in their account for paying bills or to buy stocks, that's at a 20-year low, and so of course we could break below that with interest rates where they are today. go back to when interest rates were at similar points, we're at the lows and so whether we go a little lower i think is a debate, but the vast majority of pain is behind us. i think that's a key point they made a number of anecdotes around that on the call. that's where people know better about that for us that's the catalyst of

the stock to really take a step higher when you start to see net cash in selecting higher versus the outflow going on over the past few quarters. >> what about the pause of the buybacks was that anticipated the company citing regulatory uncertainty there? >> yeah. it was anticipated we think right now this is all about making sure that you have the liquidity and really the financial position to get through the other side of this really uncertain environment and also, we don't know what regulatory change is going to come on the other side of this and right now, not all the security losses are flowing through the regulatory capital i think the view here is prudent, you want to build capital just in case there's regulatory change and getting a stronger position. i think that's what they're going to do. for the long term they've got very cash flow generative model. >> devin ryan, thank you very much watching schwab. watching m&t rebound after earnings today

appreciate the time. >> great to see you. as we head to break our road map for the rest of the hour google, doubling down on a.i. as ceo sundar pichai says any limit on the tech are not for a company to decide. we'll discuss. apple is looking to india for its next leg of growth. >> and the chamber of commerce taking aim at sec chair gensler in a letter to house financial services we'll talk about that thwi suzanne clark and a whole lot more later this hour stay with us get refunds.com powered by innovation refunds

can help your business get a payroll tax refund, even if you got ppp and it only takes eight minutes to qualify. i went on their website, uploaded everything, and i was blown away by what they could do. getrefunds.com has helped businesses get over a billion dollars and we can help your business too. qualify your business for a big refund in eight minutes. go to getrefunds.com to get started. powered by innovation refunds.

this is going to impact every product across every company, and so that's why i think it's a very, very profound technology and so we are just in early days. >> every product in every company? >> that's right. a.i. will impact everything. >> that was alphabet ceo sundar pichai talking about the reach of a.i. products that stock is under pressure this morning, of course, following a report that samsung at least may have considered losing google or getting rid of google as its default search engine and replacing it with bing for samsung phones. we'll see if that has any real legs they pay them e of a.i. is former google vp of product management rob leather it's good to have you. a lot of these leaders when talking about a.i. seem lately

to be saying we're going to continue to move down the tracks a as fast as we can but we would love the government to stop us how important is it for the development of this technology and the possibility of putting up guardrails for it >> hi, david it's, obviously, a very important moment the technology is moving very rapidly. much faster than i think i've seen in my 25 plus years in working in technology and so i think it's really important. it's also more complicated, more complex set of technologies when it comes to privacy and safety implications there's lots of different ways that this, you know, content from generated a.i. will show up in lots of places. it's going to be important to have a lot of transparency and openness in discussing how we implement the right guardrails for this technology. it's really -- it has a ton of great applications as we've seen. >> right it's got potentially great applications in terms of productivity we're hearing a lot about it but there's also very scary side

to it, and i just wonder, how do you see this -- these guardrails being put up and effective how is that going to happen? is it going to require the government to step in, which typically would make people say that's probably not going to work out >> it's not going to be trivial at all i think, you know, some of the folks building this technology has done a lot to share some of the early information about how they're testing it, openai shared what they called a system card which explained what they were doing and some of the tests they were running against it this is going to be able to -- these kinds of models will be able to be run off a laptop so it's going to be, you know, something where we have to have some different approaches. we may need to look at things like more verification for the kinds of developers who are using these technologies to understand who is behind it, but i think it's, again, somewhat unchartered territory. we have analogs for other things, for example, in terms around social media and safety

mechanisms there, but a lot of this very new for people all over the world to use the technology and these tools very easily. >> as somebody who worked for a couple years at google working on privacy, with you yoshgds at meta or facebook for ad integrity for a number of years during a particularly tumultuous time for that company, how concerned are you? >> i am definitely concerned i do think that, you know, i think sundar said in his comments on 60 minutes we are having a lot of these conversations much earlier and learned from social media, i see a lot of analogs where social media was in 2015 and 2017 timeframe, so what's really clear is companies are going to have to scale up their resourcing in these trust and safety areas tremendously. i haven't seen that scale up happen yet i've seen discussions about that, so that's going to be one of the things we need to do.

to get to that stage far more quickly. we have some things that are a partial playbook for addressing this i mentioned verification, transparency as two of those, but we have to get thoughtful folks into rooms all over the world talking about this stuff and very soon, very quickly. >> rob, i know you're here to talk a.i. but this "new york times" report moving alphabet's stock today. that samsung is considering dropping google for microsoft bing as its default search engine what do you think is going on inside of google what are the conversations the reports are panic from "the new york times." >> right i'm sure there's lots of folks, you know, talking about this i think, obviously, the android ecosystem is important for the company as well as the search. i think the question here is, how does some of the conversational a.i. get integrated into things like search, how do you integrate

those two opportunities, as folks have used things like chatgpt or bared have seen like talking to an opinionated teenager, very confident they're right about the answers that they have. i think to figure out how these search and conversational a.i. are integrated is an important product that will take time to figure out i'm sure we'll see lots of experiments from these companies and how these things come together. >> are you surprised that alphabet, which seemed to have the most research, the most money, the most effort going towards a.i., has not had a firm lead in the marketplace now that some of this technology is out there. >> i think what it speaks to as well, it's going to be a battle for talent, some of the most talented and smartest people in the world work at google i have former colleagues there it's going to be important to find the place s where these folks can provide the most benefit and build these systems. in some cases, folks at the

bigger companies like google and meta and others have been frustrated because there's a lot of, you know, regulatory pressure in other relate the areas, privacy, antitrust that slow the companies down. i think it's going to be about how do the leaders of these companies give their top talent confidence it's the right place to develop these technologies? there's going to be startups that will try to attract these minds as well. i think we're going to have to see how these companies can react in terms of keeping the best talent, you know, working on these really hard problems. >> yeah. a lot of problems that go along with it as well. rob, appreciate you ill louisating some of those for us. >> thanks very much. >> what some are calling a billion dollar opportunity for apple. we'll discuss that next.

back when i had a working circulatory system, you had to give your right arm to find great talent. but with upwork, there's highly skilled talent from all over the globe. right at your fingertips. ♪ this is how we work now ♪

no, no, no, no, no, no, no. there's a problem righwith my paycheck.ips. it's short. someone messed it up? i'm in the middle of nowhere. ♪ unnecessary action hero ♪ was that necessary? nope. neither are paycheck problems. with paycom, employees do their own payroll. no problems, no surprises. [narrator] schedule a demo at paycom.com and make the unnecessary, unnecessary. ♪♪ choosing miracle-ear was a great decision. like when i decided to host family movie nights. miracle-ear made it easy. i just booked an appointment and a certified hearing care professional evaluated my hearing loss and helped me find the right device calibrated to my unique hearing needs. now i enjoy every moment. the quiet ones and the loud ones. make a sound decision. call 1-800 miracle now, and book your free hearing evaluation.

wanted to show you shares of man u, manchester united, the famed soccer club. the shares are down sharply. why? well espn is reporting the glazer family, which controls the company, owns it, and has

been entertaining the idea of selling its controlling stake in the company is no longer interested in doing that the report from espn says that the glazers are increasingly confident of securing outside investment that will let them remain as manchester united's control owners and then over time they would expect that, perhaps, they might be able to double the value of the club, and also sell a stake along the way. man u which has been quite a soap opera actually for those who have been following closely, that is the latest reporting that is out of espn citing a source. >> all right meantime apple sales in india reportedly hitting new highs, $6 billion through march. this comes as the tech giant gears up to open its first retail store in the country tomorrow ceo tim cook planning to visit india to launch the stores and meet with prime minister modi

amid that expansion. plus some fresh news moments ago that company's new high yield savings account is now available offering 4.15. something that made news not long ago as we watch the die skrersfication of their supply chain. they're going to do their best to make headlines in india. >> it's considered a bellwether, apple for the manufacturing giant out of china, and they have spent more than a decade investing in end-to-end supply chain solutions in china, not to mention the big sales growth opportunities. i think investors are excited about this dan ives of wedbush said they got less than 10% market share in india today huge unmatched opportunity he says with its marketing and brand presence to turn india into a growth catalyst as iphone 15 hits the market in september. but there are geopolitical questions about china and reducing its dependens there i think. >> you can't blame apple for

trying to reduce some of its dependence there china is an important market not just in manufacturing the iphone but in selling them into that market 13% or more of sales, night 95% i think of iphones made in china. according to ibc it's not like they're untangling the relationship but clearly if apple is a bellwether, other companies are doing this, right, taking their information bringing it to places you have cheap labor but away from china. >> it goes to this, again, the decoupling mentioned by larry fink, brought that up a couple times because i thought it was interesting it was top of mind for him and any number of other executives this is an important, very important seismic trend almost going on in american business right now. we do have some champions over there, whether it's starbucks or nike that you cover well, or closely for apple. >> disney. >> disney. >> but there are many others that are starting to potentially decouple

it's not a great thing for the world's economic system though >> decoupling on manufacturing, but investing on consumer. and there does appear to be a little bit of a divergence there because when i talked to a lot of these companies, tapestry, for instance, coach has a big presence, and they're doubling down in china, ralph lauren, they see the consumer as not as risky from a geopolitical stance than the manufacturing side of things it's not ships, the technology battle, you can't fight that trend. they're spending more, growing in wealth and american companies are doubling down. they have not been targeted by the chinese government on the consumer side. so it's an interesting divergence. >> yeah. the heat has gone on the lockheads and raytheons and microns where the chinese are sanctioning or launching investigations after a volatile q1 is the cloud lifting or is this just the calm before the storm we'll talk to cross mark's bob dahl about what we're seng as ei we ramp up into earnings season after this break

our customers don't do what they do for likes or followers.

their path isn't for the casually curious. and that's what makes it matter the most when they find it. the exact thing that can change the world. some say it's what they were born to do... it's what they live to do... trinet serves small and medium sized businesses... so they can do more of what matters. benefits. payroll. compliance. trinet. people matter.

welcome back to "squawk on the street." spacex has postponed starship into space the company has been working for years on technological tests and hopes to conduct the first orbital launch back in the summer of 2021, but development delays and faa approval pushed back that timeline and once again, it's happened in a rare moment of unity world leaders from the u.s., china and russia are calling for an end to the violence in sudan. officials say dozens are dead and hundreds more wounded as the military and a powerful paramilitary group battle for control of the nation. mitch mcconnell expected to return to work after six weeks for a fall and extended treatment for a concussion the 81-year-old is returning ahead of a busy stretch in which

congress will tackle the nation's debt ceiling and negotiate additional aid for the ukraine war. >> thank you we are just over an hour into trading as we kick off the week let's get a check of the markets. you can see where we stand get a lot more from bob pisani kind of curious as to what's standing out to you this morning? >> three to two advancing to declining stocks just upstairs, speaker kevin mccarthy was introduced his proposals on the budget. he predictable blasted the president for being irresponsible on the deficits, the president added $6 trillion in national debt to the national debt he said defaulting on the debt is not an option he thinged that several times but said the biden administration has to negotiate and they said they were not negotiating in good faith. he's going to vote on lifting the debt ceiling for the next year that's going to be the house bill and wants to return spending to 2022 levels and limit growth of spending to 1%

again, speaker is -- you see the speaker up there speaking right now with john who runs the new york stock exchange. he'll come down on the floor and maybe a chance to chat with him. it's not moving the stock market and the reason if there was concerns about a debt default that would move the markets. that's not what's happening right now. sort of a mixed market, three to two advancing to the declining stocks industrials had been moving up in health care, sort of a nice little broad group tech had been sideways throughout most of the week. the problem is right now, we have to get a little more energy and key sectors. banks have not been doing well we did have m&t bank do well on the earnings but other center banks are not doing anything, the regional banks key corp, u.s. bancorp, comerica, many near 52 week lows the big cap tech stocks have been sideways. we're getting defensive groups like consumer staples moving to

the upside and some industrials and cyclical groups doing better new highs are limited. we're not getting breakouts. the s&p is 1% for a new high from the year but only consumer names, auto zone and mcdonald's and merck and boston scientifics and health care companies doing well last week that's a pretty small group for breaking out you want to see a little bit of a broader move here. where are we it's hard to say are we in an uptrend or down trend? the s&p is 1% for a new high the breadth is improvement but sluggish, 55, 56% of the s&p are above the 200 day moving average, not tremendous, so health care, consumer staples and tech there's your leadership. banks have not been doing well small caps not doing well. mid caps not doing very well we keep moving up here we're moving because of the soft landing hypothesis that's moving things now we're seeing pricing of a final rate hike, inflation cooling,

china demand is a little bit up and the perfect market that the stock market is basically hoping for right now. we'll see if that continues and that could happen. right now, a lot could potentially go wrong it's priced to perfection. 18.5 times forward system of the s&p. >> earnings is the next big thing because it's a light economic data week we get the beige book, i always like, not such a market mover. fed speak. then in a quiet period ahead of the fed. is it earnings >> it's going to have to be. the bears are arguing we haven't seen the major correction we would normally see ahead of a recession. the bulls are arguing, yeah, we had it last year, the s&p dropped 25% and the multiple, the p/e ratio dropped 25 or 30%. so six months ago, we had the decline. that was the crisis and the market bottoms ahead of recessions and earnings decline. the bulls have a legitimate point that we had a significant bottom in october of last year

and maybe we're going to have another one, but there was a big drop. >> and we don't know if we're actually going into a sflooegs we don't exactly. that's why they're basing it on the idea soft landing is not going to result in a serious recession. >> all right thank you. bob pisani our next guest says investors should remain cautious when it comes to the markets crossmark global investment cia bob doll joins us now. you think what, that it is too rosy of a forecast that you're getting from the market right now? >> as bob pisani accurately presented the market is priced for near perfection at 20 times, 20.5 times trailing 18.5 times forward and maybe things will be just fine, but the inverted yield curve, declining money supply, leading income indicators falling, those things all haunt me when i try to argue the positive case for a soft landing. i think last year's decline was all about valuation compression and if we're going to get a

noticeable decline this year it's going to come because we have earnings problems and a recession and i think that probability is too great to igging nor at 20 times earnings. >> what do you do, get out of the cyclicals, get out of tech, vulnerable to everything happening with the fed which do you do? >> first of all, you can, as you know, get cash or near cash 4 to 5% i would have some money there, sara, within equities, i think some broad diversification makes sense. i'm underweight tech i think some of those names that as bob pointed out have been lagging and struggling they had a big run earlier this year i still own hmos they're not doing so well in financial services, visa, mastercard are okay. lowe's in the consumer space it's a name here and there it's not like there are flames that you can't find, but it's

much harder and you have to in your value stocks make sure you own ones that are not just cheap but have some current momentum and your growth stocks i think you can afford to be stingy. >> bob, i mean, you know, the beat raise on earnings is always fun to play with 9 90% for the first week it's the best week one in almost a decade i just wonder whether that gets tossed out or starts to get serious consideration if the trend continues. >> that trend continues, that's for real, carl although if you want me to be the bear for a moment a lot of companies are saying january was real good and march not so much. so if we're having a trend during the quarter and we project that going forward, with some more slowing, you know, maybe it's just the delay of a quarter when earnings begin to disappoint, i still think those disappointments are in front of us >> bob, why not get your take on the debt ceiling kevin mccarthy is here at the new york stock exchange.

we heard the headlines from bob, they want to introduce a bill into the house to punt it a year into the election year not clear whether that could pass the senate. the president doesn't want to negotiate. it's going to be tricky, isn't it so what's the risk for you are you talking to your clients and worried about it >> a lot of people are asking that question as it relates to a bunch of things, including the dollar, but for the talks themselves, sara, you're right first of all we do not have a united republican party or united democratic party, so it's really hard for those leaders to argue for their entire caucus, so i'm with you, this thing should, i hope, does get solved, but it could be the 12, 13, 14th hour with a lot of fireworks between now and then. >> are there any moves to make between now and then short-term market moves? >> it's a macro comment, obviously, and i think having a little powder dry along with the other reasons i cited is not the

worst thing in the world to have some sort of sell-off. >> thank you very much for your perspective today. the chamber of commerce taking aim at sec chair gensler. we'll talk about why with the president and ceo suzanne clark afr sht eatea orbrk. - [soldier] take a look at this! - they've left us a gift. - [soldier] i think we misjudged them. - i love horses. (birds chirping) - [soldier] we should open the gate.

- let's see what charlotte thinks. - [narrator] at crowdstrike, we monitor trillions of cyber events to detect threats and prevent breaches before they happen to keep your business from becoming history. we stop cyberattacks. we stop breaches. we stop a lot of bad things from happening. crowdstrike. protection that powers you. a third kid. what if she likes playing golf? it's expensive. we're outlawing golf. wait. can i still play? since we work with emower, we don't have to worry about planning for a third kid. you can still play golf... sometimes. take control of your financial future to empower what's next. your record label is taking off. but so is your sound engineer. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates

matching your job description. visit indeed.com/hire lily! welcome to our third bark-ery. oh, i can tell business is going through the “woof”. but seriously we need a reliable way to help keep everyone connected from wherever we go. well at at&t we'll help you find the right wireless plan for you. so, you can stay connected to all your drivers and stores on america's most reliable 5g network. that sounds just paw-fect. terrier-iffic i labra-dore you round of a-paws at&t 5g is fast, reliable and secure for your business.

sec chair gensler set to testify before the house committee on financial services tomorrow and the u.s. chamber of commerce not holding back penning a letter to congress calling gensler's leadership quote torrential and disjointed looking forward to congress exerting greater oversight and demanding transparency from the agency joining us to discuss is u.s. chamber of commerce suzanne clark. suzanne, what a letter the barrage of rule making there unprecedented and merits the close scrutiny of of congress.

in what department do you think they're over their skis? >> that's for the question and having me. it's such an important topic we congratulate chairman mchenry holding this hearing and the sec accountability chair gensler has put forward twice as many rules in half the time of his predecessor. the disclosure alone would be 2.35 times more expensive than all the rest of sec disclosures combined at this scale it's important that congress ask questions about the cost benefit analysis, about the underlying process, about compliance with the supreme court major questions doctrine, and we're glad they're going to do just that. >> don't you think the level of regulation is in response to the rate of innovation we had gensler on, it's been about facts, crypto, china, memes, trying to keep pace with what markets are doing >> that may be these are good questions for the chairman to ask. but what we're seeing is 50 to

55 regulatory priorities, that's how many the chair says he has that's the same thing as having no priorities. so i think deciding what the economy really needs, what the american economic situation really needs and having an appropriate role for this agency is a really important congressional oversight matter. >> are you actively looking for the sec to roll back or undo some of their regulation i'm thinking of what happened to regional banks last month. a lot of that has been pinned, maybe fairly or unfairly on rollbacks in 2018. do you see an logs there >> that's two different questions. if you want to look at the regional banks at least what i've read about it so far it seems to be there were regulations in place and i think the first question is, what was the role of the san francisco fed? were they doing their job? were the right regulations in place not enforced before we decide that we need new ones that's one question. but i think the second question really is, what is the appropriate role for the sec

right now? to answer your question, we do everything we can to work with chair gensler and his team we submit comments and have pleatings, we do everything that we can to get the appropriate amount of regulation and smart regulation accomplished. if that doesn't work then we take them to court. >> suzanne, it's sara. wanted to ask you about something different, cnbc had a report last week, our own reporter broke the news that bill barr, the a.g. under former president trump, is becoming chairman of a project called center for legal action, which aims to be a competitor to the u.s. chamber of commerce when it comes to lobbying for business issues, and i'm wondering how you feel about that? whether that's a threat to your organization and you feel it will hurt progress for you, especially as republicans have distanced themselves from you guys >> oh, gosh no there are lots of people that have litigation centers and lobby. we welcome any and all to this fight. >> do you feel that -- what is

your relationship right now with republican party i think of the chamber as traditionally republican and you had a lot of allies in that party, but it's changed lately >> i guess i don't see it the same way we still have a lot of allies, a lot of people who want to get things done, the right thing for american businesses and families and consumers. you're right, we don't chase every mtg or aoc down a rabbit hole, but we stay where we've been, lower tax, less regulation, more trade and we are having a great impact in that and the business community feels it >> suzanne, big piece in the "ft" about u.s. manufacturing investments doubling after some of these subsidies out of the white house are starting to get some traction. we talked to larry fink of blackrock, for example, on friday who believes because a lot of that i guess we'll call it stimulus, is just now hitting, it's going to be one reason why maybe recession gets pushed out a bit are you feeling good about that

policy >> i would feel better if we could get permitting reform done we've had 350 chambers and associations sign on to a coalition called permit america to build we need to build things in this country. it shouldn't take longer to get a permit than to build the project. the average time to get pare mitt right now is seven years. if the project is complex it could be ten companies can invest a lot of money but if you can't get the permit to get it done and the workers to build it it makes me less optimistic. >> the labor thing is something we're going to wrestle with that, but that leads us to immigration and we've talked to nam and you guys about whether or not there will be a plan to boost the labor force through a reasonable immigration law. >> we were optimistic we can get permitting reform and some reasonable immigration reform with border security done in this country we're meeting with more and more people on the hill who would like to see both done. understand the impacts on business, on the economy, on

inflation, on their communities, the families in their districts, so we're cautiously optimistic we can get something done. >> that's surprising. >> yeah. it's david, suzanne. i'm surprised to hear that, particularly as we move into a presidential year. what's giving you that optimism? >> you know, it's my own meetings on the hill, the team's own the team's own meetings, the business community's meetings i know a lot of outraged twitter grabs a lot of headlines but it misses the fact that a lot of members of congress are there to get things done for their communities. they care about jobs in their district they care about how their families are doing when you do individual meetings about where impact can happen, you hear a lot about permitting and employment-based immigration. we just had 100 state local chambers together on these issues they, too, were feeling more optimistic >> well, there's no doubting your radar over there at the chamber. definitely that would be news if we ever got close to that. look forward to checking in next time

suzanne, thanks so much. >> thanks for having me. still ahead, lazard ceo peter orszag joins us with his take on the action senator mccarthy makes -- house speaker mccarthy makes fresh remarks on the budget on the new york stock exchange, puts a proposal forth for raising the debt ceiling we'll bring you all the hae lines in a few minutes the dow is subpoena 28 points.

everything's changing so quickly. before the xfinity 10g network, we didn't have internet that let us play all at once. every device? in every room? why are you up here? when i was your age, we couldn't stream a movie when the power went out. you're only a year older than me. you have no idea how good you've got it. huh? what a time to be alive. introducing the next generation 10g network. only from xfinity. the future starts now.

speaker mccarthy on the floor on the floor of the new york stock exchange. people look forward to addressing at least the republican side of how they're going to approach the debt ceiling. less than seven weeks before we really need to be very concerned. >> on the precise, they have to wait until the tax returns come in after tax day to get the exact timing june and september speaking of treasury and taxes, ev tax incentives are getting a big revamp this morning with many models now facing no or very much reduced incentives phil lebeau has the story for us

and a lot of the details. >> these are the new rules, primarily driven by two new factors. one, the components for the battery where they source from and where are the crucial minerals sourced and process that go into those batteries so, with that in mind, here is what the treasury department says are the number of vehicles that qualify for the full $7,500 discount, ten domestic models pe won't go through every single one. seven qualify for half of that in other words, they don't meet one aspect of the qualification requirements nine models, by the way, that used to get $7,500, they no longer get anything. that's significant when you look at the ev market share in the u.s. we always talk about tesla in the dominance but look at the growth of volkswagen and hyundai. that's not exactly what we were looking for. what we're talking about is hyundai and volkswagen have 6% or 7% model share.

they no longer have models with the $7,500 discount. good news for gm and ford. shares of gm and fordz, we get gm results next week, ford early may. also take a look at shares of tesla. remember, after the bell on wednesday is when we will get the results from tesla by the way, tesla sells about 63% of all the evs in this country, and almost all of its vehicles qualify are the full $7,500 not all of them, many do $3,750 for one of the model 3s that's the story it will be interesting to see what impact those have on sales of of hyundai ionic or hyundai 4, which no longer qualify are the full $7,500. >> you reported last week, but tail pipe emissions, so by 2032 a vast majority of vehicles have to be ev i know you've heard and have a lot of pushback on those numbers

and whether they're possible bring us up to date. >> nobody i talked to within the auto industry thinks the goal set by the biden administration is achievable. do they think they'll get a long ways towards it? yes, but not achievable given the fact there's constraints on battery supply, et cetera. >> not to mention where you're going to get the electricity for all those cars that are out there. phil, thank you. phil lebeau updating us on those latest numbers in terms of ev. as for the market and the numbers there, we're down across the board, though not badly. the s&p down a little over 0.10%. the nasdaq is the ggt sebieslor. "squawk on the street" continues after this break

welcome back to another hour of "squawk on the street." i'm carl quintanilla along with sara eisen jpmorgan's head of global research, joyce chang with us. u.s. house speaker kevin mccarthy pitching spending cuts to wall street right here at the new york stock exchange. we'll speak with fpeter orzag. banks getting hit on the

back of their results. m&