>> thank you very much, mario gabelli. joe, back to you >> few seconds left. thanks, beck we are down now. >> we are. >> little off their highs, but 194. not bad. hot number go figure. does it mean a soft landing is possible that's what some people are saying, that this is what a soft landing looks like, which would be amazing if it could be. grade job, beck. have fun safe travels we'll see you next time. "squawk on the street" is next ♪ good friday morning, welcome to "squawk on the street," i'm carl quintanilla with jim cramer and david faber. stocks try to assemble some green arrows, financials getting a bounce, the key upgrade and april jobs comes in ahead of expectations, 253,000 with wage growth a bit hot for the 13th consecutive month of better than expected job growth. >> on the earnings front, well,

we've got apple's results, and they did exceed what most of the analysts following the company had been forecasting find out what tim cook told cnbc about the quarter. plus, wrapping up another rough week for regional banks, this amidst worries about many of those banks' health a number of the beaten-down names, though, they look to recoup some of those losses. you probably saw it in the last few minutes. a lot of them up double digits >> you like that comerica >> we'll begin with the april jobs number, though, as we said, 253. street was looking for 180. the revisions kind of make the last couple months a wash. >> i thought that was interesting. first of all, we're all used to numbers being accurate, so in any other business, we would think that you run them through, you had salesforce, you had service now, you would never get this kind of thing you have to look at the revisions first, and then you realize, wait a second, so the economy may not be that hot, but then we come back to these same areas keep dogging us.

we don't have enough people working health care, because so many retired so, you're having people who are finally trained. they're getting jobs and then, the thing that people just can't stop -- they can't stop leisure and hospitality we're almost back to where we were in 2019 until we get to that level, you're going to keep seeing hiring the ones i find most shocking is financial activities how the heck could there be real estate i thought real estate was dead man walking. >> not all of it >> and then mining wasn't mining supposed to be going away really, people said that mining was bad. you want to deal with the actual, like we deal with the earth movers, mining's been weak they're hiring them all over the place. there's just a lot of hiring >> seems to be unemployment stays at 3.4%, right, carl? >> yeah. >> and if it weren't for the fact that they're destroying the regional banks, which will wipe out -- by the way, morgan stanley makes a stand?

jpmorgan this piece, u.s. mid and small cap banks are making stand otherwise, this just says powell is dead right. this is like, see, i told you so >> this says, keep going >> this says, keep going >> not the pause necessarily >> this says, no pause >> and this says, be careful >> if you don't watch out, we're going wipe out most of the smaller banks in the country, and i don't think anyone disagrees with that. the action that we saw yesterday in the stocks that are pictured was basically jpmorgan, here you come here's the next four or six you're going to buy. >> unless we see a different approach from the government in the sense of willingness to entertain that word that they don't want to hear, which is, bailout, because it wouldn't necessarily be, but something that comes to the aid of these banks in a more significant way, perhaps even some sort of equity disc cushion. i don't know >> i think there's a group of people, the great middle of this country, who never forgave the bailout. never.

and that's why no one ever uses the term, bailout, because i think that was the ultimate have/have not period the rich fat cats got to keep their jobs, and i lost my job. >> it is a highly charged word and one that i really feel, as i've reported, is something the administration, along with treasury fed just want to avoid entirely but there are those who -- there are some who say, if we're going to stop this completely, these banks are going to need some form of cushion. some form of aid if you want to call it that, come up with a different word, but that's the only way we're -- they're going to stop pressing because the market is just going to keep pressing, even with this nice rebound today >> there's two ways. you either get them for deposit insurance, or you -- you raise deposit insurance with congress or you levy every bank

>> is this the plan you're going to roll out tonight on "mad" you said you treated your -- >> i have a pretty good plan i'm going to do. >> yeah? you got a plan >> yeah. >> anything you can share at the moment is it still baking >> does it involve land in new mexico most of your plans end up there. >> a regional bank theme park? is that where we're going? >> you may make fun of me. >> and we will >> take the regional bank roller coaster. you'll love it >> i came up with a town that was just a stopping point for gis going to los angeles right after world war ii called las vegas. >> bugsy cramer? >> i didn't know >> all that needs to be done here is for the fdic to say -- they don't have to do, it's like the boeing deal. remember when jay powell said, listen, deals are going to be done all jay powell has to say is, i'm done, go on "60 minutes" this sunday and say to whoever's on "60 minutes," there's like 47 people, whatever one they pick,

and say to anderson -- >> usually kelly >> to scott. you know what? no more regional banks are going to go under on my watch. and that's it. come in on monday. >> that could help but the fact is that many of these banks are undercapitalized in the sense of the assets on their balance sheet are not worth what they paid for them or what they were getting paid on them >> there's not a lot of credit >> but it puts them in a position, jim, where they can't really lend a great deal, and that's an issue. and so, if you were to somehow increase their capitalization, either by allowing them to sell those assets and then have equity come in behind it, that would be beneficial. because it would put them in a position where they could go back to being more robustly banks. >> well, i don't think that you necessarily, under my solution, have a -- you don't have robust lending, but you know what that's not what we want. we're trying to stop the fed from raising rates one way to do it is to have

less -- these banks are lending their darn fool heads off. >> the worry is they can't really do as much of that anymore because their cost of funds is high and they're sitting on unrealized losses >> they're sitting on a gold mine no, i think what you need very much is for these banks to stop lending. in rueturn, we'll keep them alive. >> some of the encouraging stuff was discount window lending was largely frc. people found that comforting susqahana looking at short squeeze environments and then schwab today with this update about april and looking for continued deceleration and outflows >> it is amazing that schwab has a bank if they were to get rid of the bank, and just be a brokerage, the stock would be at $60, maybe $65. they've got this little -- they have this scintilla of a bank. >> scintilla >> never used before on "squawk on the street. >> maybe a first

>> the guy -- charles schwab is a very well run brokerage house that happens to have a bank where they invested at the wrong part of the curve. if you were not reckless, i'm drawing the line in the sand on sunday night, and i'm telling scott kelly, this will not stand. >> they were not reckless. they just got caught on the wrong side of a very rapid rise in rates >> the idea of comerica going under because of a -- because it's in the kre, which therefore allows them to be shorted, is that what our country has become do we want -- don't we have an imperative that comerica stay in business >> of course not and today, things are looking a lot better, carl >> well, it should >> that's one of the upgrades out of jpm we should mention zion as well >> zion is one that i do question i don't think they're a good lender there's been crises that zion's on the red-hot griddle every single time with hash browns

>> then there's apple this morning, rising in the market, revenue declining for a second straight quarter results were helped by better iphone, record high in services, although i think services were a bit of a miss along with max also authorizing another $90 billion in buybacks, hiking the dividend 4%. nice tidbit between the alphabet and the apple buybacks, $160 billi $160 billion combined, bigger than the market caps of all but 35 s&p companies >> they actually do look at the market they're not doing one of these accelerate -- i mean, they're checking it. i have a thesis on apple i come to play david may make fun of me about my disney theme park >> somebody's going to buy it. go ahead >> when i spoke to tim, i got a chance to speak to tim cook, unlike you, and in the discussion, i am trying to -- >> that was -- that was right across the bow >> that was cold you know what that was

that was very well delivered >> thank you >> you're welcome. >> so, let's say you ask about china. you grill him on china, what do you get? india. let's say you drill down on china and how it's greater china, what do you get >> india >> philippines >> okay. >> let's say you're worried about what qualcomm said because china's weak indonesia. what i'm saying is, you put these other countries -- by the way, you give them the iphone 5 and the 6 and 7. they get hooked. remember, 2 billion people on facebook next thing you know, you have whole countries that you never thought should be compared to china when you add them together are china, except for the fact that the people aren't 70. >> right and so, they have been able to have great traction in these developing markets >> which, together, are faster and better growing than china and don't have any competition, and then india was mentioned multiple times when i spoke to tim. >> by one count, 18 times on the call >> yeah. >> india and macro got 21 >> see, i didn't do chatgpt on

that i actually tried to do it by hand shows you where i am but tim cook is making a case that those of you who are focused on china are being left behind by events of course, they have four or five in china. they're crushing in china. but the idea that cristiano amon, who is the ceo of qualcomm, and i will give him that, and that's about all i will give him until that's not true but i come back and i say, you know what? we are looking at this, saying we're way too -- we're way too china-centric. i think we should be indonesia-centric. philippines. brazil india. that's where it is younger people who are -- the average age -- >> massively growing populations. indonesia's population has got to be, like, 250, close to it. >> well, there's a real -- we

can google it. >> we can. i was trying to guess. >> i was struck when i was going china, he was parrying with india. i go with china again, and it's a left upper cut with indonesia. this is just -- >> what about services 5.5? what was that? >> the gross margins were incredible in services, and services, by the way, the one that should be accentuated, finance. we were talking about the 4.1, whether it was breaking the regional >> he said response to that high-yield savings has been incredible >> they have a buy now, pay later. you have a great rate. i was saying, what's next? brokerage? i mean, anything >> yeah, barons this morning says the timing of that has been a master stroke. >> look, this was -- i came to play on the wallet, and they, you know, they doubled down and just said, the wallet is so good, to the point where i said, do you ever think there will be a time when people saying, i want a 4.1% rate, i'm going to

buy an apple phone that was a source of mirth >> 970 million paid subscriptions across the services on their platform >> that's what's happening >> and of course, i mean, i don't know where it would put it, carl, as an s&p company, but it's doing $20.9 billion in revenues that's just services >> if they had hit 172 on eps, s&p earnings would have been positive >> is that true? >> we didn't quite get there, but they could have done it with a massive beat >> they have 2 billion users, but what i thought was most important, what do you think was their customer satisfaction rate >> i don't know. >> take a guess. >> high. >> 99% so, once you buy one of these, it's a lifetime value of who knows what because you buy -- you get "ted lasso" and you put your wallet, you have 4.1%. they just added the classical music. i don't know if you got the classical music download that he talked about yesterday >> no. i didn't but i will >> the call was explosive. >> explosive

>> it was explosive? >> yes, because everyone just wanted -- they wanted them to say whatever and of course the macro environment is the dollar is weaker and china is terrible, and we still managed to eke out this and that, but we have to take the -- none of that it was a celebration of capitalism >> and no layoffs either, unlike so many others in technology not embracing mass layoffs, right? >> tim told me they hired prudently, as opposed to the other companies that are still dealing with it. >> at what point do you shake your head at the percentage of the s&p that is microsoft, apple -- i mean, 20% 30%? 50%? >> my feeling is the other guys better start having a better year, because there's no doubt about it apple and microsoft are killing it by the way, amd being down two today after the deal that i predicted when i was interviewing lisa su, that deal is worth ten points, because that's nvidia and microsoft, right? that's the two worlds. you have nvidia, microsoft, and now microsoft teams up with amd.

nvidia is going to be google, amazon, and oracle >> you want to explain what you're talking about to our viewers a little bit more? >> the axis and the allies >> what's this amd-microsoft deal >> microsoft needs to have somebody rival nvidia. they can't just have nvidia. >> to provide all the chips they need >> we had goldman on yesterday pitching marvel. >> okay, i did a lot of work on that marvell is only good for the optical. so, goldman has a little more work to do, but that's okay. they're a fine firm. right? >> they'll get there >> goldman's a fine firm >> fine firm >> they didn't do the numbers in any single line. they wrote off green sky they're doing horrible in all the consumer stuff, but it's a fine firm. >> their focus is on growing wealth management and growing their alternative assets management business in a significant way, so that it produces more than the $10 billion in fees right now, up as much as 20, 30, 40% over time and they get rewarded for

it >> 1984, i broughting in a customer that only gave me a million dollars. they told me i had to fire that customer and kick them out now, that customer would be king because of david solomon by the way, there was a guy before him who came up with the incredible name, marcus, but goldman is so lost, it's frightening. except for johnny fine, because he's fixed income, and he's fabulous the idea that -- >> really? you think they're so lost? >> at the top of the cycle, they bought a company that makes small refurbishment loans? and we don't make fun -- we don't give them a hard time? they are -- >> they would say this is all a very small part of our business. >> they recolshould open a rich person's theme park. only the rich. restrict take that. >> david -- got to get a shot of david's reaction >> sorry, you missed it. >> take a look at the premarket

here a lot to get to, including some double-digit gains for names we used to think of as growthy. coin carvana is up. we'll get to all that and industrials d avantrel and media, warner brothers included, when we come back. zbliefrm 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. if you wake up thinking about the market and want to make the right moves fast... get decision tech from fidelity. [ cellphone vibrates ] you'll get proactive alerts for market events before they happen... and insights on every buy and sell decision.

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♪ let's get to a "mad dash" on this friday. happy friday, everybody. we get started with our final trading session, about 7.5 minutes. you talked shopify yesterday, because of that news about their logistics business or no longer. >> and that's -- okay, so, what they did was they got rid of 20%

of their team. this is from last night. this is the move that you get when you transfer your -- the logistics part, getting it to you, to flex port, so now they're an asset-light amazon. they're all the stuff that you want from amazon, well, not the web search, but the processing, taking a percentage, and then instead of having to get it to you, they offload that to flex port that's why i think that this stock, up to $57, is way too low, because you get rid of -- you've got it so that they have a much leaner organization, and they get rid of the part -- that really hurts their gross margins while meanwhile, their business itself is very strong, as people all over the world continue to use them to have their little store front. wow. and a lot of the bigger companies are using them too shopify is the engine behind pretty much everybody who's not amazon i just think they have a good tie-up with etsy

i like this story. it's up a lot, but it's down a huge amount. i wish we could have a longer-term chart, and you would see that this thing's barely up versus where it pinned there we go. wow. yeah yeah so, this is, by the way, the north face we know how that is. or even k-2 if you look here before they managed to get their act together, so i think this is the one, if you want e-commerce, i like this one. now moves ahead of almost everybody in my book, because i was quite concerned about their gross margins. i no longer am remember, this is a nicer, gentler amazon, but man, they fired, like -- they fired like zuckerberg >> they did. well, they're canadian they're usually very nice. >> that's a generalization >> yes, it is. that's true. all right, hoping bell is five minutes away don't forget, or in fact, try to remember that you can catch us any time, anywhere, by listening

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>> it may be friday, but obviously, tomorrow, the weekend going to be important as we watch berkshire. cnbc and cnbc.com, the only places you'll be able to watch live coverage of the annual meeting. of course, becky quick, mike santoli are live in omaha as buffett and munger take questions from the audience. you can tune in tomorrow, beginning at 10:00 a.m. eastern time lot of questions about, i guess, financials and now energy, jim, which is the biggest portion of their portfolio. >> isn't that interesting? yes. i also hope they talk about apple, but occidental has been a creeping tind tinder, and occidental does have good permian. oil just broke down. people bought it off the opec plus movement. that turned out to be nothing worth buying for then, you had this huge decline, just a gap, and now, you know, it's tenuous it's fighting, touched $68, but

it was at night. so, usually, by day, they retest a night buy. >> yeah. on pace for the third weekly drop and this week is the biggest weekly move of the year, as you point out. it was down 8% at one point. >> i wish jay powell would have said that gasoline is down a lar, that's really good for us he should have acknowledged that every time we raise rates, the long rates go down, so we can't really fight the housing but he got what he wanted in terms of, it's too hot he got it with this wage -- the wage numbers we can't seem to get around -- david, you can revise wages down all you want the fact is, this is an economy that's 3.4%. 3.4% >> yes >> i mean, david, that is absurdly low after all -- after 525 -- what kind of economy do we have? >> it's different than we've seen, which makes it more puzzling, perhaps, from the perspective of what's to come next >> yeah. and the -- we do not have, other

than a couple of tech companies, anything that's like more than a few layoffs. we saw what retail -- if you go over david's simons conference call, simon properties, this is the house. how is that possible halcyon. >> let's get the opening bell here at the cnbc realtime exchange at the big board, city here new york, helping students in new york city public schools at the nasdaq, it's biopharma, a seller and celebrating an ipo today. really quick, what did you think of the kenvue action on thursday, jim? >> okay, now, i think people are so desperate for something that's playing -- that was, like, you know what that was like it was like taking tylenol it was like the market got some tylenol. you got a 3.5% yield or 3.2% you have fabulous balance sheet. you have a company that has every single -- i defy you to not have one of those brand

names in your medicine chest i thought the ceo is very good i think that this thing is going to be the thing that we remember as the beginning of the thaw in ipos >> i mean, what a great debut. >> it was fantastic. >> i don't know, where's that thing trading now on a multiple basis? it's not a high-growth company >> remember, they had growth spiking to 7 because of cold and flu. call it 3.5, 4, of which it has -- it's around the others, but it's better. i just thought this was a remarkable deal, because it's what the doctor ordered. david, it's all the good brands. >> if it helps -- it was a unique company, of course, been around for a very long time, not like trying to sell a software growth company to the marketplace. but i don't know if it opens up the window in a more substantial way, i guess, is the question. >> it's obviously about as plain vanilla as you're going to get, but management was spending 30% of its time on this, and then

the rest on medical device and pharma, and that's just a huge waste of time to be in this business this business is just band-aids. now, when i go behind the scenes, and i ask them the fabled question that we all know, which is, the theft. >> yeah. >> they just say, listen, people buy -- there's theft at walgreens. there's theft at cvs that's why people buy everything at amazon. >> that said, jim, some relatively young companies like bill enjoying a pretty good morning here >> well, bill was one that we were all concerned about, because bill -- when you get these companies that are software -- that's software enterprise, everyone's afraid they're going to mention the macro. anyone who doesn't mention the macro goes higher. if you mention the macro, a la one of your favorites from australia, and that is the kiss of death cloud flare. the macro. i've been doing -- i told my group to do a search for the

term "elongated. >> the elongated cycle >> and if you say, elongated, that's the kiss of death right now, we have a good market because bill didn't have an elongated, and there's a couple others that have done quite well this is a good moment for enterprise software. if we get a short squeeze going in these kre, look out >> there's a lot of shorts in the regional bank stocks, in the etf as well. that had been down substantially over the last few days, but you can see there's a rebound, and that's just good for sentiment overall, helps people -- helps sort of relieve, to a certain extent >> don't they start something -- start coming back? >> i don't know. i don't know want to talk a little warner bros. discovery? am i doing that? how do you feel? >> i'm happy to. >> you want to go back to goldman-sachs and just rail on them for a while more?

>> i was very proud alumnus of goldman. i have no idea what you're talking about. >> there's a look at wbd keep in mind, yesterday, the stock had also been down because, of course, paramount shares were down 28% after the company cut the dividend at paramount, we're talking, but warner bros. discovery suffered, and so they report the numbers down again two days, not so good in terms of the loss in the stock let's give you a couple of the highlights, though they did add 1.6 million streaming subs globally, and perhaps more importantly, look at the bottom there. they said -- and this is a year earlier than had been anticipated -- we're going to be profitable in our direct-to-consumer business this year >> yeah. >> and then going on, by the way, to say, we're going to have as much or earn as much as a billion dollars in globally in 2025 in that business ad market's not great, down 14%. i think if you adjust it for currency, it was down 13%. general entertainment audience

as well, you know where they're going. they're going bye-bye when you look at video subs declining overall. the cable companies, there's just fewer people who have a cable subscription, hence fewer potential viewers available for some of these networks that's not great either. although, the nba does pretty well sports and news is still sort of driving things to some extent. so, overall, wouldn't say a bad quarter for warner brothers. they're going to focus you on the fact that driirect-to-consue is going to be profitable sooner than people anticipated. that said, there's concern that they can generate the free cash flow they say they're going to this year, because so much is a back half story. they may be neutral in the first half, which means they've got to earn an you feel lot or generate a lot of free cash flow in the second half of the year to hit their targets, to continue to reduc reduce leverage, which is five times right now. remember, $30 billion market value, but $50 billion in debt

enterprise, still pretty significant. >> it's down it's down. >> but jim, that seems to be the key question zaslav has made it all about free cash flow and getting synergies to come through, and the question becomes, h rare yo going to get there take a listen to what he had to say to andrew and joe this morning on "squawk box." >> our focus has been, if we have some of the greatest ip in the world and we're a global diversified company, we need to generate free cash flow. we have a fair amount of debt. we're converting that debt to equity by paying it down and so, we're on track to meet our free cash flow numbers for this year, so by the end of the year, we'll be below four times leveraged. >> there it is that's the story >> i was surprised the stock is down we were all, after yesterday, with the debacle that was paramount, if we could see an end to an open loss situation and just deal with advertising, then i think you've got a compelling story i think that the story here is much better than paramount

paramount does -- the worth of paramount is the champions league ten-year champions league contract is worth more than paramount itself, but i thought that -- i really thought that zaslav told a good story, and no black hole there when it comes to direct-to-consumer no black hole. and why he's not being applauded for that more is just insane >> they did move quickly to mitigate losses there. >> yes >> it's not about sub adds anymore. it's about getting to profitability. they will do that. >> he's done it. i think the stock could finish -- i'm not saying it's going to finish in the black, but i thought that the level of confidence that i heard today versus whatever the hell you heard on paramount, i mean, paramount was really just a first-class disaster >> we'll hear what berkshire says about it tomorrow by the way, disney today, citi reiterates a buy, $130 they report wednesday. and meanwhile, the florida senate has now passed a bill that would allow this tourism

board to cancel deals that the prior board had approved, so that back-and-forth continues. >> i covered the florida senate at one point in my career. this is more work than they've done between now and when i covered it i just think that disney is a wait-and-see story i would not get ahead of it. let this -- it's a third-quarter story, not this quarter. so, my travel trust owns it. i'm talking against my travel trust, but i don't think you should buy it ahead of this quarter. i just wouldn't do it. >> bunch of names that we used to talk about all the time, jim. we mentioned bill, dash, lyft is down, though, on some of these margins. this margin guidance >> i think that it's too soon to judge, david i think he's going to do a good job. darren's amazing -- look, uber was an incredible quarter. i happen to have loved tony hsu with doordash. that was a fantastic, all systems go quarter their game, set, match in the category, and they did it in a way that was helped by the

pandemic, but just continues to do a good job, tony. just continues to do a terrific job. >> we should point out, apple shares are now up 4.5% >> which one >> apple is up 4.5%. >> i told you you'd be safe in apple. >> and -- >> people still trade it >> 33% for the year. we got a week to date up there for you. there it is. 33%. >> no macro worries. >> have you seen charts of apple versus s&p it's historic. >> i don't have to i say, own apple and don't trade it my soul was tested by cristiano amon from qualcomm, who was flailing, and i am not -- i'm not throwing him a life raft he's trying to take everybody down >> two takeaways from you this morning. >> yeah. >> not positive on qualcomm or goldman-sachs. >> well, what can i say? >> let me ask you about another one that we haven't talked about this morning >> yes

>> yeah. >> all right i'm getting there. i'm thinking i'm thinking is it entertainment? >> no. >> i don't know then >> it's iep. it's icahn >> oh, nate. nate hindenburg >> hindenburg is the firm that wrote a very negative report this is a firm that focuses on the short side the last big one they did was square >> but they got that wrong, because the app numbers were extraordinary last night extraordinary. >> they came after iep look what it did to that stock we're talking unit holders, actually, so just crushed it icahn came out this morning in a statement and said, we would like to reassure our long-term unit holders the market disruption caused by these self-serving hindenburg does not affect iep's liquidity we would normally wait for the earnings call, but due to the many inquiries we've received, we're announcing now our

intent -- >> cash? >> that's correct. let's go through a few things here having to do with this. this is a holding company that icahn has. a lot of different businesses in here all sorts of them. industrial kind of things and businesses, but unit holders can elect to receive, as a dividend, units or cash. icahn owns 85% of the company. he owns 300 million of the 354 million shares or units, and so, he gets units. and therefore, the actual cash outlay from the dividend is not nearly as large as you might expect, given the yield. in fact, i'm told it's something along, really, when you look at it with units, cash dividends as a percent of total market cap, about 4% so, that gives you a better idea of what's going on here. over the last six years, they've raised $2.4 billion at the market offerings that's a lot and there is a question now in

terms of whether there's been a reputational hit to icahn as a result of this report. that, you know, they may be precluded from using the market for atm andtransactions at the market just going in and selling units. so, we'll have to wait and see hold co does have cash at about $1.7 billion icahn has pledged 181 million of his 300 million shares as collateral on securities-based loans. don't have a lot around the exact terms of the loans there people have looked at the annual report, and icahn has simply said that he and his affiliates have sufficient additional assets to satisfy any obligations pursuant to these loans without recourse to depository units i should add, scott wapner, our colleague, who's in touch with icahn, icahn has not responded

in the sense of coming on, but i've talked to scott inquiries have been made as to his willingness to come on and combat some of this report >> to defend icahn here, people love this. when i get in the lightning round, they want to have a piece of icahn i don't think he played nearly as big a role in where this stock is versus the net asset value than we think. >> one of the key criticisms in the hindenburg report, they're saying net asset value for some of the businesses is far above what it really is. >> and so therefore, yes >> it's unclear, though, where they're right and where they're wrong. >> we do need to know the breakdown. i would say that the enthusiasm has less to do with the net asset value, then people come on, they watch icahn, they think he's a tough guy, a good guy, and they want a piece of him that's their fault >> that said, timat this point, maybe he wants to come in and buy the 15% he doesn't already

own, take it private >> i often say to people who have big stakes and make a lot of noise, why don't you buy the damn thing and shut up >> he owns 85% that decline, if you are a shareholder, i mean, it's a 23% yield. >> the units -- now today it's catch. it's a different story i'm trying to get some comment from hindenburg. >> okay. just wanted to hit that, because -- >> you ever hear the radio when it went down >> i have heard the radio reports of the hindenburg going down i have, actually >> kind of chilling. >> some travel names we haven't gotten to. expedia and booking, moving in opposite directions. avis gets upgraded by jonas. >> i was surprised because bookings had been the favorite, and can suddenly, expedia, which had gotten in the dog house, really delivered a very good number i felt that expedia is very undervalued and booking is

overvalued today's the first time you saw that glenn does a remarkable job at bookings, and by the way, you've got to understand this he does not use -- he doesn't pay people in stock. look lookings you can go to him with stock-based compensation, and he will say, my numbers are real. if i did stock-based compensation, my numbers would be higher, but i don't play that game are you interviewing fogle this is a really remarkable man. he understands what a lot of us despise about silicon valley is that the numbers aren't what we think they are >> well, right we talk often about adjusted ebitda, which is now the rule rather than exception. you've got to be aware of what's being adjusted for, and it's not uniform. and then we have made the point about stock-based comp, and if, in fact, the companies had actually pay it in cash, it would be a very different look >> right meanwhile, we have rallies in things that people haven't thought of in ages

one group that has been miserable is the insurance group. a lot of people felt they had a lot of commercial real estate. suddenly, insurance is acting fantastically. >> yeah. cigna, almost a three-week high or so. some of the industrials, i was thinking of you, jim, because jci is at a one-month high huntsman >> ingersoll had an amazing quarter. these are rather remarkable because again, coming back to where we are in this tightening cycle, these are supposed to be disasters. and they're just working can i help you get that? >> it's all right. i'm running out of power >> what you do is you plug it in >> thank you >> i just think that there's a remarkable movement in housing and in machinery, and if any other cycle, carl, you would be shorting these nine ways to sunday instead, people are focussed on the regionals because they've been so easy to knock down because they all got that huge amount of money all at once, and

they tend to put it at the wrong part of the curve. >> check out redfin. a 20% gain this morning. >> housing is great. zillow had a terrific quarter too. it's just -- housing is unbelievable >> so, employment's strong housing is good. >> right >> so june is back in play >> yeah. june has come back into play >> we were pricing in 100% cut by july yesterday. >> the people who were in the long -- when it gets, do they know that the long bond can actually go down in price and up in yield given the fact that we're going to be tightening right into the face of the long bond. i mean, look, other than the regional banks, of which they can be cured by my sunday night plan, you've got such good momentum you have momentum in retail. david, i mean, retail. other than, say, big lots. now, david, when i went to big lots, they had a mattress right there when you checked out

i didn't like that >> mattress? >> mattress and potato chips >> have you seen figs today? you didn't do figs that's back to the 200-day for the first time since february. >> i don't know. i tend to focus on mondays after the berkshire hathaway meetings. everything opens up. you just feel that great glow. including oil. oil holding at $70 is a big deal >> and the vicks back below 18 we got a rally or a bounce after a series of negative days. dow is up 460. quick reminder, you can always get in on the cnbc investing club with jim, sign up and find out more at cnbc.com/jointheclub or use the convenient qr code on your screen. it takes you straight there. we were just talking about bonds, and we got the last major print of the week under our belts. next week, we will get cpi and ppi and yumish and manheim and the loan officer survey. don't go away.

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take a look at the dow heat map. three components red, merck, verizon, and intel apple helping the most up 4%, bringing its year to date gains to about 33% cpad 7omreto for the s&p. stop trading with jim after a break. - psst! susan! with paycom, employees do their own payroll. - what's paycom? a magic payroll genie? - it's a payroll app.

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it's time for jim and stop trading. >> i have a spac right here that's name, i have to tell you i have them on, total discipline getting in states, just doing so well they labored through a lot and congratulations him. we'll see him a lot. cigna health care, it's been lagging the rest of the group. and then speaking of lag, matthew prince with cloudflare had a not great quarter. i think he's worth betting on. these are three all of which i think are attractive stocks but we'll learn more when we get

them on. >> do you have a feeling that we can move past this new, latest episode of banking stress? >> through three hurdles, through employment and apple and now -- we also got, of course, the fed meeting. the last one is the debt ceiling and i think we have to have a lot of hand wringing about that and we'll go up and start talking about debt ceiling and s&p downgrades debt and how much the republicans would make biden look bad, that's still to come. >> that will result in some kind of ceiling for equities in the near term? >> innings i think you can buy. remember, don't buy -- you've got a nice buffet halo that everyone knows you do today and sell into buffet's america is the greatest place on earth rally on monday and then start over it happens, david. it's okay. it's not cynical. >> what's the it here? >> you didn't -- >> that's how i end my week. he didn't listen >> i didn't know what the it was

because you moved around a little bit. >> i said there's a buffet rally and you can sell into it on monday because that's what people do. >> got it. >> rinse and repeat for now. we'll see you tonight on "mad money. 6:00 p.m. eastern time as we got the opening levels pretty much intact dow up 415 and s&p 4109. not spreadsheets. 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 as americans, there's one thing we can all agree on. the promise of our constitution and the hope that liberty and justice is for all people. but here's the truth. attacks on our constitutional rights, yours and mine are greater than they've ever been. the right for all to vote. reproductive rights. the rights of immigrant families. the right to equal justice for black, brown and lgbtq+

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good friday morning. welcome to another hour of "squawk on the street. i'm carl quintanilla with david faber and morgan brennan back with us while sara eisen is on assignment we're live at post nine of the new york stock exchange. the bulls trying to salvage what's been a bit of a tough week solid jobs number is going to help along with some upgrades of regional banks as there's ongoing discussion today about maybe sentiment getting separated from fundamentals. >> we hang on to these gains we've got our first day in the green for the major averages in a week we're 30 minutes into the trading session. here are three movers we're watching this morning. lyft plummeting after second quarter guidance came in light, revenue did beat estimates, up 14% from a year earlier. shares have been cut in half over the last year and down 18% right now. bumble meantime headed in the

opposite direction, beating on the top and bottom lines, as consumers continue to spend despite macro headwinds and those are up 4%. carvana, shares are skyrocketing there as the company says it expects to achieve positive adjusted earnings in q2 earlier than previously stated and shares up triple digits year to date and up 28% right now. still off by more than 80% from the 52-week highs. >> as we said, a bit of a rally following four days of losses. dow up almost 450, almost every component in the green jobs number today did come in stronger than expected and employers added 253,000 jobs in april. of course it has been a volatile week especially for the banks. pac west down 60% since monday, western alliance, first horizon after the failed deal not far behind today jpmorgan is the one that comes up and upgrades cma, zion and western alliance, saying that there's a sense that sentiment here has been overstretched but not making the case that any of this is going

to be easy from a fundamental standpoint in the near term. >> how it could be easy. we're batting around questions we were yesterday and this whole week and you can make the argument that what we've seen in the bank stocks in terms of the renewed turmoil this week is not coming from a fundamental place, it doesn't matter. it's just been dramatic, dramatic moves and you've seen it not only in the s&p but in the russell 2000 just to go back to the jobs report, david, i mean if you're the fed you're looking to raise the unemployment rate and cool wage growth, combat sticky services inflation which fed chair powell talked about explicitly earlier this week does this report this morning actually do that i think that's going to be one of the key questions for jan hatzius when he joins us later today. >> given where we are in unemployment and seeing in the job market, not to mention we were talking about housing, for example, as another barometer, which has been very strong, there are questions as to whether, in fact, that pause that people are looking for is

going to happen, but then on the other side of it is this concern that you keep raising rates on the banking system in particular these regional banks that are already dealing with assets that are under water and started the concerns that we continue to have or those have people have in the markets, and it only makes things more difficult. >> yeah. monday i believe we get the fed senior loan officer opinion survey it's going to be a key one to watch, given the fact that we know credit standards are beginning to tighten and just how much that's happening and just how quickly. >> yeah. and the way powell described it, it looks like it's going to reflect exactly what people are thinking it will be interesting to get numbers attached to that directional sentiment. >> let's bring in steve liesman and get his take on the employment number and what it may mean in part to some of the things we're discussing here, whether the fed, perhaps, has to keep going steve, what do you think >> first of all, guys, can you bring up that three bank chart i want to make sure people

understood what they're looking at there that doesn't say minus 3, minus 6, minus 9 on that decline of those bank stocks. it's minus 30, minus 60, minus 90 it is really quite remarkable. i bring that up because whatever that represents to the economy, that's something that might be in the future that you have to layer in and then you have, i want to segue now to the strong jobs report, which was strong on the surface, but you dig a little deeper to the revises and it's a touch weaker what i prepared was another chart that looked at the prior belief of what was going on in the job market the way the fed might look at it versus the post revision one and we have made some progress in slowing down the job market what was a three-month average, there's the non-farm payroll number with revision showing down 150,000 versus the non-farm payroll for today which was

quite a bit above. you look at the revisions and see we're at 334,000 average three month and now down to 222. it's slowing but as morgan said, not as fast as the fed hoped they're looking for a 4.6 year end unemployment rate and one that's 3.4 right now it's going the other way on them i brought one other chart to look at the probabilities of rate cuts. the market still banking on a little less than they did last time but the numbers, 30% probability of a cut in july, over the 56% for august and that's about a three quarters percent, 75% chance of a cut by september. despite the strong numbers today, the market is still banking on a cut but later than they had been as of yesterday. guys >> you know, steve, yesterday howard lutnick said something interesting on our air and talked about the fact that it's a trillion dollars sucked out of the system and even if the fed were to continue pausing, if the fed were to cut rates, that is liquidity that is not necessarily going to go back

into the banking system and going to help some of the areas of pain that we've been seeing and talking about. >> yeah. look, morgan, i think there's been an overall assessment on the part of the fed that what's going on now with the banks does not rise to the macro level that requires them to stop fighting inflation. there are people who disagree with that and former fed officials who disagree with that and maybe some current ones. we'll start to hear this week and next week about what fed officials are saying right now, that's their assessment money is coming out of the system, it's not going to end up as being available for lending and it's going to have an economic impact, but perhaps it's a manageable amount and perhaps it's an amount they think is even needed to slow this economy down. carl >> what a week, thank you. steve liesman has been on top of all the moving pieces the last few days let's talk apple popping on the q2 beat. earnings and free cash flow estimates will stay intact, if

not move higher from here, in spite of revenue falling for the second consecutive quarter only three times in the last decade has that happened evercorps joins us, maintains his outperform 190 target. you have written about some of the tailwinds that you think will be stable going in the next couple quarters. >> absolutely. i think demand is better than we were to expect, up % cost of currency, the story there, is while [ inaudible ] is okay, emerging markets, india and china in a big way for them, so it's been the foundation of this company inflected higher and then the other part that's happening out the eps free cash flow is gross margins. you argue that given what's happened in the commoditity market, how apple's shifting, this could keep inflecting higher for them.

as long as we have stable iphone revenues, gross margins improving, this is the making of an asset. >> when you think about what's interesting for them right now in the way of tailwinds, is it about install base and hardware or more about services and particularly financial services, especially after cook said the response to that high yield savings was, quote, incredible. >> we would like 4% in a savings account, right it's no surprise 100 points where they're at. i think these things go hand in hand right. i think the beauty of what apple can do right now they're expanding their install base through whatever macro turmoil you're having and get to the other side of the stable environment the $2 billion install base they have they can monetize in a big way. i think apple has a fascinating way to do it but big chunks for them will be the app store, how

do you monetize that and then on a broader level digital advertising. apple base is fascinating growth as well. >> pretty interesting here the august high last year about 176 or so. we're not too far from that. thanks so much good to see you. talking some apple. as we go to break, let's look at the road map for the hour the labor market as you know heating back up amid a murky economic outlook we'll talk to jan hatzius and break down the numbers today. the view from the c-suite from bookings holdings and motorola solutions, both falling post results finally "squawk on the street's" headed to omaha. really all of cnbc we've got more on what you need to know ahead of a big annual meeting for berkshire tomorrow it is a great big show still ahead. don't go anywhere.

. welcome back draftkings revenue surging in q1 and shares are popping double digits let's get to contessa brewer with the numbers. >> 84% revenue, new customers up 57% and the cost of acquiring those customers down 27%

draftkings raising its revenue guidance, lowering its estimates of how much money it will lose and it predicts it will about break even this quarter and fourth quarter ebitda of $150 million. that's an important measure of operating success in the gaming industry draftkings says it overtaken bet mgm as the gaming leader in market share and look, you have to auto love draftkings vocabulary for describing metrics of success a few quarters ago, states contribution positive. this quarter describing them as vintage. the point is the same. the longer the states have been in the business of sports betting, the more profitable they become for draftkings those in the 2018, 2019, vintage, draftkings terminology, they're seeing margin growth of 13% marketing costs declined 20%. the 2020-2021 vintage, margin

growth of 21%, costs down 12%. just making me think of a nice white wine, david. >> that's always nice. a little early little early noon. >> it's friday. >> it's 5:00 somewhere. >> that's true all right. thank you. moving on, we're going to turn to another earnings name, warner brothers discovery, that company added 1.6 million streaming subscribers globally in the first quarter and said it is now expected to have its dtc business profitable this year. ceo david zaslav was a guest on "squawk box" and discussed that term >> we made $50 million on our streaming business this quarter. we said the streaming business would be profitable next year and we're -- we announced today that our streaming business will be profitable this year in the u.s. and to our u.s. streaming business is no longer a bleeder which is a big deal.

>> they want you to believe it's a big deal the stock came back. down 3.5% right when it opened that is important getting streaming to where it's no longer losing money and going to be profitable to the tune they say of as much as a billion dollars in 2025. advertising is an issue down 14% in general entertainment, audience declines in the u.s. are an issue giving disappearing people who have a cable subscription pointed that out those are some of the head winds. free cash flow the key for this company and they have to generate their free cash flow in the second half of the year which they say they are going to do that will, obviously, allow them to significantly reduce what is almost a $50 billion debt load and currently five times leverage ratio to as low as four times going down to what they

say will be two and a half to three times by 2024. >> such a key focus and you've been all over it the commentary on the call about churn and driving down churn is perhaps maybe more important than growth is kind of fascinating and speaks to, dare i say, the evolution or path to maturation in terms of the streaming business as well something we've talked about in the past and yeah, the stock is down today but paints a very opposite picture in many ways to paramount global which, despite all the pain we saw across the financial sector yesterday and all the steep selloffs, paramount global was the worst performer finishing down 28%. >> it's down again today you can see that we're talking almost a 30% loss in market value for paramount global one of the keys was the decision to cut the dividend. it was costing them $500 million a year it will now cost them less, went interest 24 cents to 5 cents there. enough free cash flow perhaps scaring people

just i -- i can remember covering the fight for paramount between sumner redstone and barry dillard when i first got to this network in '93. >> 1993. >> correct. >> not 189 t3, thank you, carl. >> zing. >> $10 billion what he ended up paying for that asset. that's what market value is now of what is the combination of viacom and cbs, and includes the paramount studio it puts things in perspective. sometimes it's a great time to sell. >> interesting comments about the studio business and the flash and barbie and d.c. out of zaslav today cinemark, eight-month high as some of the theaters come back major averages up more than 1% dow up 450 one mover coinbase what's taking that stock higher, after the break.

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check out shares of coinbase rising after posting a smaller than expected loss for the last quarter but the company did warn about pressure to the subscription and services record they addressed the crypto space saying the crypto industry continues to be volatile as evidenced by most recently by the disruptions in the banking sector and ongoing regulatory and uncertainty. we continue to focus on our cost reduction efforts. the stock is up around 55% year to date and 12% right now. >> jobs growth coming in strong yet again. we'll break down those numbers with jan hatzius in just a moment plus we will go live to omaha ahead of berkshire's annual meeting.

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if you're wondering what's been working well lately some of the consumer staples still notching some all-time highs. general mills, monster and pepsi, all three on the all-time high list today. berkshire hathaway is kicking off the 95th annual shareholder meeting in omaha this weekend with live coverage kicking off tomorrow at 10:00 a.m. eastern time our senior markets commentator mike santoli is live on the ground and going to escort you through the weekend. hey, mike. >> hey, carl, how are you? the whole mechanism is just cranking to life here at berkshire and, of course, the market giving us plenty to talk about. berkshire hathaway is more than 13% of the xlf financial sector

etf so essentially, berkshire has become more important to the financial sector as bank the stock gone south and, of course, berkshire hathaway owns a lot of bank of america, a little bit, i would say, of things like of bank of new york and usb and owns even almost a 10% share in allied financials. so presumably we'll get questions about the regional bank stress and how the fed has been handling things with the long-term principles that he they like to reiterate every year and seemingly tens of thousands come to be reminded of every year. >> what is the key takeaways i guess so far -- and i realize we're still early into this weekend event and festivities -- because berkshire the core business insurance, it holds things like banks and apple, which is popping 4.5% after earnings today, too, but the consumer business and all of the industrial businesses that are tucked under the umbrella as

well what is sort of the sense so far on the ground in terms of i guess the state of the economy >> right i think well, immediately, if i've been chattering with anybody it's been about the apple numbers and again, apple is more than 20% berkshire's stake in apple is -- representing more than 20% of berkshire's market cap which is really kind of stunning. and the other businesses have historically, this is before we had the inflation shock of recent years, have been considered very well suit the-- suited to caption inflationary trends and benefit from them i'm interested in warren buffet and charlie monger's comments about that last year buffet was cagey talking about inflation and seemed to recognize it was not going to be a problem to go away quickly and best way to deal with inflation is to have kind of valuable work skills and sort of take advantage of people needing whatever it is you do. i expect to hear a good deal of

that also coming a year when berkshire hathaway shares, if you look at it compared to alla, consumer staples and insurance as a big piece of it not to mention all the energy and utility infrastructure and railroad businesses, it has performed in line, but outperformed most of them. there still seems to be in the market estimation a little bit of special sauce and a way that this company is able to capitalize on all the things going on underneath the surface in the economy in a way that benefits shareholders. >> mike, if you were back home, we would be talking about yesterday's second successful test now of 4050. >> yeah. >> what would you be saying about it and how much would you be folding in what apple is contributing today >> well, i do think it was pretty relevant that not only that we tested 4050, but that yesterday, the indexes, you know, based on what was happening in the short-term bond market, and in the regional bank

stocks, seemed almost to be under reacting or at least trying again to stave off the bank stress away from the market with the apple earnings and clearing event of the jobs report, it seems like people are saying, look, another 50-day moving average task. we're still in the range, that's frustrating but also not the worst thing in the world to be in this range. it's not normal for the two-year treasury yield to go down 20 basis points one day and up 16 basis points the next day. but right now, the market is i think sort of looking on the brighter side than you might think if you're just tracking the regional bank stocks differentiation among the regional bank stocks also very important because they can't be all liquidated at once in this kind of give up trade. >> we can't wait for tomorrow. look forward to joining you and becky and also looking forward to your pro talk at 11:30 today, with the long-time shareholder thomas rousseau. go to cnbc.com/pro talks

thanks traders pairing bets on fed rate cuts after a strong jobs report wage increases the big nest a year joining us at post nine is goldman sachs chief economist and head of global investment research jan hatzius great to have you on. >> great to be with you. >> okay. ahead of this report, you were estimating non-farm payrolls rising 250,000 for the month we got 253,000 walk us through your takeaways. >> i think the takeaway it's a strong report, pretty much across the board you look at the payroll number that was, obviously, on the high side, the unemployment rate edged down to a new multidecade low on an unrounded basis and you had a strong wage number now underneath the surface, there are always, you know, some caveats and qualifications around that, but the basic takeaway is that the labor market is very resilient and that is providing support to

household real income which is important at a time when we're concerned about the drag from tighter credit conditions. this is a reason for strong labor market, strong real income growth, a reason for why we still think a recession is not the most likely outcome. >> if you're the fed coming off a meeting and what is potentially your last hike earlier this week you look at this report and think what given the fact that we just did rise and the fact that unemployment rate did tick lower? >> well, i think our forecast is that this was the last hike and, you know, if you look at the press conference, chair powell said twice that the changes in the statement were meaningful, so i think the message was probably they're on hold at the june meeting but a hike at the june meeting is considerably more likely than a cut so if you look at market

pricing, market pricing is for very, very little and there is, you know, i think a possibility that the data are going to evolve in a way and the news about financial frictions evolve in a way that would give you a cut. our baseline is, we stay at 5 to 5.25 well into 2024 before the funds rate gradually comes down. >> yeah. what would actually trigger that cut? is it going to be all this turmoil in banking and maybe a very tight, fast constriction in terms of those lending and credit conditions or something else. >> that's the main narrative that markets think cuts are likely as you go into the later part of the year, that, you know, this ends up being not just a headwind to growth, but something, you know, more sinister you know, of course, there is always uncertainty around the amount of credit tightening and the impact that that's going to

have on growth in this situation. our baseline estimate is that it's worth, you know, half a percentage point or less on growth. >> debt ceiling? how real is that risk right now? is that even factoring in to any of these conversations and analysis around the economy yet? >> well, i think it is, obviously, more front of mind given that treasuries as the most likely date as early june and the fax receipts have been weaker than expected that's pulled it forward, so it needs to be resolved by, you know, probably early june and there's not a lot of time. it's early may it's not surprising that with, you know, the path to resolution still not clear, that you're starting to see some, you know, distortions in the fixed income markets. >> you've done -- you've been tracking tax receipts and you were pretty convinced it would be a july date and then yellen

says as early as june 1. some discussion as to whether she's just trying to move the party with an inflated sense of urgency or not >> we went back and forth between late july and early june there have been a sizable slug of tax receipts coming in, so a few days it seemed like late july was likely but since then it's been soft and my takeaway is also that treasury doesn't want to be very, very close to a critical level so, you know, they have to be building in some degree of cushion, obviously, and that's my main takeaway. >> longer term question about employment, i think it was your team a month or so ago did a report on chatgpt and the impact it will have on employment overall. got a lot of headlines at the time were you surprised what you found there, and given how quickly this is being incorporated by corporation, i'm just curious as to your

expectations >> i was surprised at how potentially meaningful the impact on labor productivity might be, and, you know, i should say that this is a very different type of forecast or estimate for most of the things that we've been talking about. most of the things we've been talking about have been the things that are right in front of us. this is a number of years down the road we found that a plausible estimate could be that a.i. could boost labor productivity growth by as much as 1.5 percentage points. that would be a very large number and it would be comparable with the impact of electricity or the personal computer but again, the caveat is that this is, you know, still a long ways away. there are lots of things we don't know about the technology itself, the way that technology is going to be incorporated into everyday business, so it's definitely something that i'm

excited about doing more analysis on, but this is the start. >> and job losses also got headlines. cited 300 million could be impacted. >> impacted. i mean 200 if you look at -- yeah yeah i mean it depends on whether you look at global or u.s. >> right. >> global. >> but impact, doesn't mean loss in most cases, in fact, we think it's going to be more of a complement rather than a substitute you know, you have a productivity tool that allows you to, you know, spend 10 or 20% less of your time on the things we otherwise would be doing and then the question is what do you do with that additional time? there are lots of open questions around it for sure, but it was, i thought, you know, really very interesting and definitely more impactful potentially than what i had expected before we started the work. >> all right fascinating discussion we just covered a lot.

jan hatzius, thanks for joining us. >> thank you so much it is time for a news update let's get over to kristina partsinevelos for that hi. >> hi. here's your cnbc news update at this hour. the head of mercenary group leading russian fighting in bakhmut said his soldiers will withdraw because of a lack of military support in a series of taped announcements a lack of ammunition makes it impossible for frooigs continue wagner fighters have led the months long assault on bakhmut, a campaign that has turned into the longest and bloodiest battle of the war. the world health organization declaring the end of the covid-19 global public health emergency the w.h.o. director general said the downward trend of infections and increasing world immunity has led the world to return to normal end of the emergency comes three years after the w.h.o. first issued the declaration in january 2020 and after nearly 7 million people died from the virus worldwide. and after a week of rehearsals, final preparations

under way for tomorrow's coronation of king charles jill biden will be the u.s. representative on hand and the first u.s. lady to attend the coronation of a british monarch. the costs up to $125 million. >> can't wait. that's a big party thank you. kristina partsinevelos. still ahead, the ceo of booking holdings will join us as shares fall on potentially slower growth ahead. and as we go to break, throughout may, cnbc is celebrating asian american and pacific islander heritage through the stories of influential aa pishgs i business leaders. albert chang a vp at amazon prime. >> i'm proud of my chinese culture. i am proud of the confusion principles i was raised but also proud of being born as an american where i can embrace all the positive kwaqualities that makes this country so nexunique as a community the asian

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this rally is intact as the s&p up almost 65 points. some of the gainers some of the regionals, zions and comerica, zions opened monday at 28. as for live nation, the highest since almost february, touching the 200 day for the first time since february 9th on the back of its earnings beat bookings holding posted better than expected earnings an strong travel demand. seema moody is here with a special guest. >> thank you let's bring in the ceo, glenn

fogel. >> hi. thanks for having me. >> great to see you. we're starting to see cracks emerge across the travel world we had trip adviser and trivago talk about the consumer opting for lower cost destinations and shorter stays. i was on the earnings call you're not seeing that why do you think there is a differentiation? is that due to demographic differences? >> i don't think so. i did hear some of the comments you remarked on and we have not seen people shortening their stays at all, not seeing people going down for a lower star rated hotels it is different than some of the people you mentioned some of the companies you mentioned are what we call meta search companies where people are looking for prices and the best so maybe those people are, those particular people are looking for better prices but for us generally, we are not seeing that at all. >> the story is also different when we look at vacation rentals with expedia saying that

business vrbo is under pressure where booking last night on your call you were saying you're continuing to gain market share here in the u.s. average daily rates staying strong what are you seeing as more people book hotels >> we are very pleased with the numbers that we gave out last night. 45% growth in our alternative accommodations area, which was better than our 38% year over year number for the general all of our accommodations that's showing strength in alternative accommodations and potentially saying we're gaining share i'm pleased with where we are. >> we like to get the international picture, but you make over 50% of your sales outside the u.s. i'm particularly interested, glen, in the inbound travel to the united states. we know more europeans are starting to come here, but when do we see the asian traveler come back to the u.s.? we know on average, spent a lost more on tourism and discretionary goods when they visit the u.s. >> yeah. it has been slower coming back

in terms of asia travel in general and outbound international part of asia has been slower. you had restrictions that kept people from coming to the u.s. that lasted longer than i think it should have there's one factor we can't control that's currency. fx headwinds for people who look at the u.s., the dollar still strong, albeit not as strong as it was recently, but still strong so people are trying to decide where do i want to travel. another thing, the lines at the airports when you come to the u.s., if you're an international visitor, those lines can be long at immigration i would stress to the washington regulator people who can get more people into the immigration area to try to get those passports stamped as quickly as possible and people in the country. if you want to travel internationally you don't want to spend three hours in a line at the airport to enter the country. >> london heathrow chief executive recently saying he is

concerned about capacity at the london airport but also paris as well, where they're seeing strikes and protests should we worry about some type of summer travel chaos in europe given what's happening there >> last summer was a troubling for a lot of people no matter where you traveled, it was tough. this summer could be not -- it won't be as bad but we're seeing a lot of people wanting to travel this summer and it's taking time for people to staff up the necessary areas where you need to have lots of people. so i'm concerned that it could be troublesome for some people and some airports, but generally speaking people want to travel and they'll suffer for a little while for their holiday. it sounds like -- i realize the demand picture is resilient. how about the pricing picture? some hotel companies have said more capacity is going to come online airlines will start to add more planes as those supply chains get hammered out

what does that mean in terms of that mix moving forward? >> you know, we have seen prices continuing to rise and we said last night regarding for hotels, we call it the average daily rate, those were up for us 3% is what we're putting down as the reported number, but that impacts fx going against the dollar and makes it apparently actually higher and then our mix, because we have more parts of the world where there are lower supplies coming in we suspect it's going to be something that people will say, gee, that's an expensive trip, but people are doing it. regarding air, you know, you may have seen some of the news where some of the airlines have been already talking about cutting back on their schedules because they don't have the capacity so yes, in the long run, there will be more supply, but for the summer i don't think there's going to be enough added supply that's going to impact pricing. >> glen, quickly, you spent nearly $4 billion on acquisitions over the last 18 months, given lending standards

and credit conditions, will that change >> we're very fortunate that we have over $15 billion of cash right now, in addition we have a great credit rating, but the truth of the matter is, that's never been a big factor for me in terms of doing m&a. for me it's is there a good property we should try to look at and something we can do to add value to the franchise and that's the thing that really matters. other people, it may impact their m&a, but for us, is this a good deal for our shareholders or not. >> okay. we'll leave it there thank you for your time. glenn fogel, ceo of booking holdings. >> thank you, seema. as we head to a break, motorola solutions reporting record first quarter sales, not enough to get the stock moving higher we'll talk to greg brown, long-time ceo and get his take on the quarter, supply chain, flio activist investors as well we're back in a moment you heard of a town named dinosaur, colorado. we just got an order from dinosaur, colorado. start an easy to build, powerful website for free

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of motorola. nice to have you here. >> thanks for having me. by all accounts, very strong quarter and yet the stock's not up i'm curious to get your initial reaction, given everything you reported in terms of inventories, double digit growth across all three technologies, region, strong demand and public safety why not a positive reaction? >> look, let's see how it trades the rest of today and into next week q1 was above expectations. q2, above consensus, top and bottom david, we increased the full year, even in this environment so, tremendous demand. by the way, we didn't burn backlog either we increased backlog and we increased the duration of backlog. we exit q1 not just with the print in the rearview mirror, but record q1 records, record q1 ending backlog through the windshield we'll see how it plays out.

>> you said a little better supply in q1 >> the supply, the long pole on the tent is semiconductor. supply, for what we sell, we're selling 40 nanometer chips and above. while smartphones, laptops and ipads are more flooded, we're not. would he compete with automotive, we compete with industrial that's still a little constrained but it's a knife fight every quarter. i think the team did a really good job, but we still have supply chain challenges throughout the balance of the year which, by the way, informs the full-year guide. we take it a quarter at a time and it's very important. >> what would you say is reflective or what is the reason for your continued growth? obviously, this focus on safety, unfortunately, very much so, for example, at schools. >> exactly. >> is that part of it? >> think about what we do.

motorola solutions is public safety and enterprise security we do the two-way radios for police, fire and ems and all the requisite infrastructure and encrypted dedicated networks that go with that. we provide software into the 6,000 911 centers in this country. and then we're now one of the largest video security players, david, where we weren't even in the business five years ago. that tam is $22 billion. you think about video security, access control, 911 software, connecting public safety to private business so, we're solving for safer schools, stadiums, hospitals, and, unfortunately, the active shooter situation is a tragic concern in the states and beyond and we have technology to help that. >> we talked about a growing

number of companies for equipment to last longer the life span of some of the equipment you sell is longer i'm curious as to how you view that. >> we have the radios, as an example, that serve public safety on average those devices get replaced every seven or eight years, much like you replace a smartphone every two or three. interestingly enough, we're at the very early innings of a refresh cycle, which is another reason i think demand is being fueled when you look at video cameras, that's true replaced every three to five years. by the way, we have the video security system at the stock exchange it's good for me when i saw that when we walked in. i think there's a lot of demand for device refresh, cloud activity and all things ai. >> we just had a discussion about ai in a different sense, about productivity i have to imagine it has huge impact on the potential to create safety nets, perimeters. >> huge. when you think about it in the past, you would have a person sit in front much eye candy,

screens, looking for a perimeter breach or something to go wrong. now we have ai algorithms that trigger license plate recognition, perimeter breach, whatever it is, that automates the alerts. >> these are in place now? >> in place now. >> what's the additional innovation that's going to be game-changing? >> we're innovating in the 911 center think about accelerating the analysis so, if if 911, if first responders can answer a 911 call one minute faster, it saves 10,000 lives a year. we're making productive ai software that takes account of the tone of your voice as a call taker or someone calling into 911. if you use certain words, it will trigger automatic supervisory intervention to facilitate, and dispatch first responders quicker to the scene. there's a whole host of things we're doing. >> how quickly does that level of technology deploy and how

quickly are states and local governments, schools, et cetera, picking it up and buying it? >> quickly and quickly now, the other nice thing, morgan, is the arpa funding has allocated $350 billion to state and local and $170 billion to schools. yet the demand we're seeing, especially around safe schools, hasn't even really tapped -- >> this was literally my next question. >> has not tapped the funding yet. we talked about yesterday on the earnings call. we had 400 million of orders last year which represents less than 5% of our total orders driven by arpa arpa is multi-year in duration >> you have been ceo for 16 years. you oversaw significant restructuring. you've dealt with a lot of activist investors, but you have an interesting perspective in the 45 seconds or so left, tell me why you actually welcome

activists. >> welcome is one thing. i mean, i think, carl icahn is not for the faint of heart. >> no. >> but i do think when they're in and not all activists are eq equal, they provide a catalyst catalyst for change, greater urgency. they're not necessarily strategists but they'll keep tension on the fishing line and also improve board governance, in my opinion. i think they've been constructive carl icahn is still a friend i saw him for dinner several weeks. it worked out well we split the company, he made money, all's well that ends well. >> and you've done quite well as well it's good to have you here. >> thank you for having me. >> greg brown, ceo of motorola solutions. that's going to do it for this awonhetrt.quk t see stay with us for the next hour dad, we got this. we got this. we got this. we got this.

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good friday morning. i'm carl quintanilla and morgan bre brennan. the ceo of fifth third as contagion fears sweep that sector, we'll ask him about the stability of the banking system in a moment and the role he thinks these short sellers are now playing. then one of the big earnings movers of the morning. the ceo of expedia joins us first on cnbc as hot travel demand continues to be a