"squawk box" begins right now. good morning welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. yes, it is friday. here we go take a look quickly at the u.s. equities at this hour. slight decline dow futures off 65 the s&p down 5 nasdaq off 4 of course, this all comes after the gains for the s&p that marked the start of the new bull run. officially up 20% from the october lows as joe mentioned. we will watch that closely 20.04% right now if you are looking at the tre treasury yields, the 10-year treasury at 3.765.

the 2-year treasury at 4.56. the big news is the federal grand jury indicted former president trump on mishandling more than 100 classified documents. eamon javers has the latest. >> reporter: good morning, andrew word came last night from the former president himself on his social media site. trump posted a direct-to-camera video denouncing after that announcement we still don't know the full list of crimes that trump is accused of allegedly committing here according to the source, the document has been filed under seal it is possible we will see that seal lifted early this morning if not later today we know that one of the charges against trump is a violation of 18 usc espionage act trump said that two other stat

you'd statute are falsification of records in federal investigation and 18 usc 1512. tampering with a witness or informant. trump's attorney says there are seven counts in all and we are told he has received a summons to appear in u.s. district court on june 13th at 3:00 p.m the white house declined to comment after the news broke a number of conservatives took to social media to urge republicans to rally around the former president no precedent to figure out how this effects trump's 2024 presidential campaign. no other former president has faced federal charges before very few have run for the white house after losing one, grover cleveland, succeeded. trump is in unchartered waters today. back to you. >> eamon, we discussed where it

goes and how it changes the election you saw fund raising on the back of it within minutes with emails sent from the trump campaign 7:45 which would have been 21 minutes he received the news. how does this change the dynamics of fund raising >> reporter: it is clear the strategy get out in front aggressively. trump put it out himself and the fund raising that was locked and ready to go in advance with the news from the justice department they will turn this into something they can capitalize on the question is if this plays in the republican primary you see two lanes with republican candidates for president. mike pence, the former vice president, who came out with the first campaign television ad in

which he was critical of the former president on january 6th. using january 6th video, the former vice president said anybody who puts the constitution above himself, doesn't deserve the job. we have seen chris christie on the campaign trail he is critical of trump as well. you see a different lane of republican candidates who are more or less supportive of trump in vague terms with the statements last night. there is a group that is trying to stay close to trump and at least two candidates trying to make a more clear break from trump. we will have to see. it is unprecedented. >> even desantis he said it is a two-tiered justice system hillary skated i guarantee, desantis and the undertone this is too much baggage. what will it take?

the journal nails it earlier charges rally trump backers and some rivals say there is too much baggage. three strikes. i don't know how many strikes there are. a couple of impeachments >> strikes or nine lives >> we're talking nine lives. we're talking two cats at this point. even normal -- even his backers, some republicans on the fence at this point at some point the chaos must end. i want to go back to having thanksgiving dinner to invite everybody in the family. that may happen? >> reporter: the question is what do republican voters gain from any of this what way is it in their interest this is a purely donald trump scandal and alleged crime now. he was the one who decided to take these documents, if he did. he is the one who decided not to

turn them over when requested, if he did. he obstructed justice, if he did. republican voters don't get anything out of that that is not about an issue they care about he is not fighting for the forgotten man in middle america. he is just fighting to have documents for himself for really unknown and potentially bizarre purposes if you are a republican primary voter and you look at this, you say what does this have to do with me? >> eamon, 17 months is not a long time. that is how long it is from now until the election investigations like this and prosecutions tend to take a very long time. 17 months in the process of this proceeding where does that put us >> reporter: it is federal maybe they can go faster here in terms of the process we do know the first step will happen on tuesday. that is the former president

appearing before the magistrate judge and be processed then we will see this is completely and entirely unprecedented. one idea is the former president cutting an deal here and lesser sentence in terms of offering a plea deal. is that right? >> if he pleads guilty -- >> right >> reporter: can he do that in the political context given how he laid out this is a corrupt department of justice and he is an innocent man. he could short circuit this and it may be in his best interest to cut a deal. it may not be in his political interest the question is is this presidential campaign for real and does the former president think he can be president again for real or is he going to look at his short-term and long-term legal interests and prioritize

those? >> eamon javers, thanks. we'll talking about it >> you bet general homotors in the news with a deal with tesla to gain access to 12,000 of the fast chargers starting next year. tesla will install the charging port to begin in 2025. gm's mary barra spoke to phil lebeau on "fast money. >> this clollaboration we are doing will double the access to karj chaj chargers. we have been able to do this faster and more effectively. >> we will talk more about it and you can see the shares up

significantly. up 3.5%. we will talk more about this deal with long-time tesla bull cathie wood. that coming up at 7:30 a.m. >> they had to the swallow hard to do that gm if you listen to mary barra, she did a twitter spaces with elon musk one of the more awkward conversations between the leader of the legacy automobile maker and elon musk where she -- put it this way, capitulating to the idea to partner with tesla a company for a long time she could not use that tesla term in a sentence it is remarkable he built the infrastructure around the country both ford and gm are effectively going to be subsidizing tesla. if you think about the implication of what is happening here, tesla will collect lots of

revenue for many, many years probably forever that will allow elon musk to offer tesla vehicles for lower prices and long-term lower prices than gm or ford ever could. there is a netflix thing going on here. remember the media companies a deal with the devil. >> frenemies >> we need you. >> starting to sell the product for cash early on to netflix >> phil lebeau asked about that on "fast money." i was listening. she hadn't tweeted since october. she pulled all advertising off twitter and the twitter spaces yesterday. she didn't answer directly >> this is a huge deal by the way, a huge thing for elon musk. >> you have to hand it to him. you could say you are not allowed to use it. try selling your cars where you

can't charge them. >> the open infrastructure >> it is like a gas station. you don't just sell to chevys. it should be open. >> it is an advertisement for tesla. every time you pull up to a tesla charging station to think about the long h-term implications the good news is he is doing this at cost not when you go to charge, but in terms of the plugs and what not that get sold and converters to gm and ford also, to his credit, i thought they would not do it this way. they will not advantage a tesla car over a gm car. there is a billing issue it is easier, obviously, if you are a tesla vehicle and pay. >> it wasn't an -- cayman.

not quite a 9/11 it look -- 911 not quite a cayman kia is not hyundai you know there is a 546 horsepower kia available >> yeah. >> i also saw a beautiful sedan. >> it was a kia? >> it was. >> i love kia. >> you know what i sflike >> you want to be a range rover person who doesn't want to pay the prices you said it looks like arange rover. >> the front grille has a range rover thing going on >> for half the price. >> i don't think about it. have you been in one it is great. when we come back, stocks to watch. carvana short sellers hit hard as the stock surged more than 50%. we have details after the break. it is up 5.5% this morning later, we talk to maryland

governor wes moore about the plan for the state's economy you are watching "squawk box" and this is cnbc >> announcer: this cnbc program is sponsored by truist wealth. where meaningful relationships matter most. absolutely. they've invested over $2 billion in tech. that could really help us manage inventory. and save us a ton of dough. then let's take back our market share. checkmate, chess heads. girls, i said “bedtime”! fresh, warm hot dogs! when i'm not selling hot dogs, i invest in a fund that advances innovations like robotics. fresh, warm hot dogs, straight out of my torso! one for you, one for you. oh, you're a messy one. cool, right? so cool.

anyone can become an agent of innovation with invesco qqq, a fund that gives you access to nasdaq-100 innovations. hot dogs! fresh, warm hot dogs! before investing carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com.

♪ this is rebecca, who needs a new script. ♪ ♪ and this is fernando, ♪ ♪ searching savings with a click. ♪ online or in-store, for your health and your wallet. 85% of scripts are under ten dollars. cvs pharmacy. healthier happens together.

we are watching shares of carvana after the stock surged

60% in yesterday's session it is up another .25% this morning. it raised the quarterly guidance above the street expectation according to s3 partners, carvana shorts are down on for the year our next guest says carmax has considerable upside. kari firestone is a cnbc contributor. kari, you have seen moves like this this is a clear short squeeze. signs of life in these areas of t the -- areas >> i think this is a good sign for the auto retailers this is a very strange market the last few years no one can find a new car because they weren't produced.

that had an enormous effect on the used car market. prices sky rocketed. there was little inventory that effected carvana and the industry perhaps this is coming to an end. more new cars are on the lots. you hear more about new models i bought a car if that happens, people begin to trade in their old car and decent used cars, three years old and five years old, are in demand and we should start to see a pick up. >> therehave been questions about margins at the auto parts retailers and if they can keep the margins and getting pressure from other places. >> that is true. we own o'reilly. it is a stock we had a great run with we trimmed some of it because they were able it to raise prices considerably. they had trouble getting parts

an they were able to pass that on to consumers now with more available, that puts a squeeze on them if they are competitive and keep prices effectively what they'reir peer the field are doing. we still see a lot of usage of cars where people weren't driving for a few years. this is new territory. post-covid world >> kari, we are underplaying the s&p. 20%. it has been stealth. it is great for the art market i know you are very -- >> i'm glad you mentioned that, joe. >> when equities do well, it is good for art i'll tell you what i'm thinking, next week we have a couple of data points in terms of what interest rates are doing with the cpi and the fed decision it looks like a skip at this

point. we talk about who has been right. the hawks or doves. i think the jury is still out. everybody said 5%. that's where we are. the hawks were talking about 5.5% or 6% or 6.25% on fed funds. with the 10-year treasury, i don't think we're ever headed there with europe in recession at this point. back-to-back quarters. i'm not convinced the hawks were right. if they skip, they may not have another increase later if we follow europe into some slowdown >> it is interesting people want to use the word skip just like the word bounce as the market started to go up at the beginning of the year. no one wants to admit that perhaps the fed is done. that's the other word. pause and skip is vernacular what we have seen is a 20% move in the s&p from the 3,5977

the wall street journal said that and people are not admitting the market is particularly strong. not just a little bit, but a lot. 20% is huge. they certainly applied it to the bear market when we were down 20%. here we are up 20% because earnings have been better with than feared. we had a lot more improvement on the inflation front and if we do stop raising interest rates, at least through the end of the year, i think that's significant. so, i'm glad you pointed out, joe, this is, you know, for real this increase. if we can get some traction with the broadness of the market, the market has been propelled by eight to ten stocks. s&p have ten of which accounted for the gain 490 are up 2% so far versus 12%.

we are starting to see broadening >> did you see it? the longest bear market in the s&p since when 1948 >> i thought it was the longest of bull. >> the longest bear market in the s&p since 1948 time flies and we're here every morning. this is a long time. since 1982 when we started this. you can only buy stocks on dips. this time took a long time, kari were you bullish >> we have been bullish. we should have been last year. we stayed with these stocks this year >> kari, thank you kari firestone. coming up, a program to broaden access to life-saving dr drugs. that's next.

don't miss the interview with cathie wood as we head to break, take a look at the shares of nio. falling in the pre-market. this after the company missed the street estimate on the top and bouttom line. first quarter hivecle delivery fell from the previous quarter. we're coming right back after this on a friday morning power e*trade's award-winning trading app makes trading easier. with its customizable options chain, easy-to-use tools and paper trading to help sharpen your skills,

you can stay on top of the market from wherever you are. e*trade from morgan stanley. power e*trade's easy-to-use tools make complex trading less complicated. custom scans help you find new trading opportunities, while an earnings tool helps you plan your trades and stay on top of the market. e*trade from morgan stanley. this is cynthia suarez, cfo of go-go foodco., an online food delivery service. business was steady, until... gogo-foodco. go check it out.

whaatt?! overnight, users tripled. which meant hiring 20 new employees — and buying 20 new laptops. so she used her american express business card, which gives her more membership rewards points on her business purchases. somebody ordered some laptops? cynthia suarez. cfo. mvp. built for cynthia's business. built for your business. amex business. ♪ (upbeat music) ♪ ( ♪♪ ) woah. ( ♪♪ ) ( ♪♪ ) ( ♪♪ ) ( ♪♪ ) constant contact delivers the marketing tools your small business needs to keep up, excel, and grow. constant contact. helping the small stand tall.

welcome back to "squawk box. the spread of hiv in the u.s. slowed in the last few years walmart launching a pharmacy program 18 months ago to get more people on hiv suppressing drugs. this is part of the partnership

in health equity bertha coombs has the story for us this morning. >> as a young dancer in the late '80s, david lost many friends to aids >> there was nothing there these beautiful people lost their lives. >> reporter: now a restauranteur with husbandis husband, he is ow set of drugs. >> a lot of boys on searching for relationships and this is a game changer >> reporter: the cdc estimates new infections have fallen from 2017 to ilen from 2017 to 2 2 2017 to 021. black and hispanics account for new cases. walmart launched a specialty program in 2021 in over a half dozen communities like north

bergen, new jersey >> we see a need here. there is a higher incidence of hiv. >> reporter: the fpharmacist get specialty training on the drugs. >> it is a stigma around it and it is better than it used to be. it is not gone >> reporter: they work with local clinics and community groups who help patients gain medical coverage >> when they know we have additional training to help patients, we will start to see them come in and that's when we get to engage. it is a great marriage between community and business >> reporter: by the end of the year, walmart will have 80 hiv specialty pharmacies across a dozen states >> hopefully they will be rolling something like this out in small towns and cities that maybe where it is harder to get to >> reporter: cvs and walgreens offer the services

with the pandemic, the big three pharmacies are moving forward playing a big role when it comes to retail health services and programs like this >> that's a good program amazing thing going on how much do you think it will cost >> for them, it doesn't cost it is part of the federal program that started during the trump administration and has continued and they doubled down in the biden administration. one of the things that is at risk is the case in the fifth circuit. that is challenging whether providing prep as a preventive measure under the aca violates their religious rights this company has sued on that ground that case is under appeal. they had a hearing this week they had filed more briefs this afternoon. this is one of the things that could wind up at the supreme court. >> bertha coombs, thank you.

coming up, president biden defending the economic performance in the wall street op-ed. we will talk more about the biden economy with ron klain and mick mulvaney an as well as others in the trump administration as we head to break, here is a look at the s&p winners and losers [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. (vo) while you may not be running an architectural firm,

tending hives of honeybees, and mentoring a teenager — your life is just as unique. your raymond james financial advisor gets to know you, your passions, and the way you help others. so you can live your life. that's life well planned. you know doug, ever since switching to workday you've been a real rock star. rock star? what do you know about rock stars? billy idol? i mean where's the skin-tight leather? my shoes are leather. where's the unnecessary zippers? that thing! billy, rock star is just how doug feels when he uses workday. thanks, rory. i'll show you rock star! be a finance and hr rock star. workday. for a changing world. billy idol just stole your golf cart!

good morning welcome back to "squawk box. live from the nasdaq market site in times square. we have red on the screen. dow off and nasdaq off 4 points and s&p down 5 points. in the wall street journal op-ed, biden writes my goal now is to protect and build on the progress joining us to talk about the biden economy is former white house chief of staff to biden is ron klain. he has done things for president obama as well. and we have former trump staff

member mick mulvaney ron, could you have thanksgiving dinner with mick would that go off okay would that make it to the pumpkin pie? >> i think it would. i don't know what mick's plans are for thanksgiving we always had a good relationship he is always wealcome. we had a nice chat >> joe, we're in the same building, but different studios. we had breakfast that is halfway to thanksgiving. >> ron, i understand how politics works we had some inflation issues that people can point to different things for what caused it the president does have some things he can talk about, but my only point when, ron, when he talks about reducing the deficit and we know it was post-pandemic

and it would come down because of that. his people and the president said that again and again. most people say we understand why that happened. it is really not reduced that much the 13 million jobs he talks about. it is not until january we got back to where we were before the pandemic both of those things are face value yare true he doesn't need to use the techniques to make those things look better. >> i agree the record speaks for itself in many ways. not just the 13 million jobs, some recovering lost jobs. the lowest unemployment rate we had in 50 years in the country we had 16 months of unemployment rate below 4%. lowest black unemployment rate ever in the united states. highest female labor force partic participation. real income is up. those are hard numbers not just recovering things we lost that is historic gains in the

economy. we were talking about the recession in europe. they are in recession in europe, we are adding jobs in america. i read an article about the de-industrialization in germany. adding jobs here in america. the american economy is showing strength >> that is undeniable. mick, a lot of the trends we saw were happening under the indicted guy under the former president the gentleman you worked for, mick a lot of numbers hispanic employment. overall employment the wage gains those were in place until the pandemic hit. >> in fact, i was listening to ron read that. i think i wrote that in 2019 we were saying the same thing. they had a really good run the jobs numbers are great i pay less attention to the unemployment rate. it is a quote. anytime you have a month over 250,000 jobs, it is a healthy

economy. they have been there every month but one or two i guess my question to ron and administration and to you is if things are so good and good as biden says they are in the piece in the wall street journal, why are his numbers so low is it possible that people back home care more about inflation and don't believe green energy subsidies help them? they will not buy a polestar for $75,000? are so many detached from the real word? t -- world? >> ron, i think thanksgiving is off. i don't know >> mick is always welcome. i will say this, mick raises fair questions voters don't feel it in the economy. there are reasons for that one, inflation is coming down and prices hit people.

the administration has done a lot of hard work to bring inflation down to un-kink the supply chains. you had a guest saying you could not find a car to buy. now the supply of cars will bring down the price that hits consumers hard groceries hit consumers hard the administration is working hard to bring down the price of groceries and deal with competition. i think everyone in the white house knows voters measure the success of the economy by their pocket back and not the macro stats. they still have work to lot of t there is still work to do. >> ron, i want to ask this you are being very frank i appreciate that. the inflation we talk about. we know we reopened. we know about the supply chain we know about what the president called the putin price hikes there is something to the notion that when you spend that much,

maybe it was smart initially with the pandemic, but when you spend that much, you will maybe instill some inflation that is hard to get out of the system. there was quite a bit of spending with the chips act and i.r.a. and infrastructure act whereas the highest levels since world war ii in terms of debt-to-gdp. would you push more legislation and more spending although we are at $32 trillion in total debt is that still a good idea or do you take a step back >> i would not take a step back. the investments that the president and congress made in 2022 were wise and add to the productivity of the economy for years to come. the chips and science act to help chip factories will create six figure jobs for people in left behind parts of the country.

i read about the electric battery belt creating high-tech manufacturing jobs in places where they were left behind before. >> none of the inflation was -- you don't think it was a binge >> i don't think it was a binge. you look where we are as an economy where europe is. europe has higher inflation and worse economic growth. i would take the u.s. economy over the european economy any day of the week. >> they rushed the green transition quicker than we did that has something to do with their issues of the. >> we will produce more oil in america than any year donald trump was president. >> in spite of fossil fuel out of business. read my lips what do you think, mick? >> i'll try to get all of us together at thanksgiving how about this regardless, look at it this way. it is always better with people working.

imagine the unemployment rate at 7.5% it will be better with people working. now we have to worry about inflation. is the fed going to raise rates ag again? you had that in the previous segment. it sales it is always good to have people working. it makes it easier for everybody to have a discussion at thanksgiving when everybody is employed. >> mick, would you spend more money? >> come on did you just ask that question i'll give you something that maybe doesn't raise revenue or raise spending or taxes. can we look at deregulating a little bit keep in mind too much inflation chasing too few goods. look at what it takes to get goods to market. the administration reregulated what trump did to deregulate we should be looking at ways to deregulate smartly to make it

easier to get goods and services to market. it doesn't raise taxes and doesn't raise the deficit. >> we can get more goods to market by investing in it chips fabricators and delivering -- >> you don't pick winners and losers there is a fine line. >> there is a fine line. central planning and trying to help the private sector. >> one unquestionable public good is infrastructure gets goods to markets. better roads and better bridges. >> ron, it takes too long to build a bridge and road. one of the down sides of passpas infrastructure bill is you overpromise and underdeliver it takes four or five years to build a bridge i'm for spending money in strst infrastructure it takes too long because of the regulatory climate i saw a bridge replaced because it was an emergency in my district in six months

if you built that from scratch, it takes three years there has to be a more frefficin way. >> thanksgiving is on. do we eat turkey or bugs because of the carbon footprint? >> we are serving turkey maybe less stuffing. >> cut down on the carbs it has to be bland for me now. reflux stuff anyway, gentlemen, thanks to ron klain and mick mulvaney. that was good. >> i appreciate it. >> it was nice both sides yeah thanks >> way too much about your diet. >> i know. when we come back, binance u.s. arm is being shutout of the u.s. banking system after the s.e.c. crackdown this week details next. reminder, you can get the dcst of "squawk box" in the poast. follow squawk pod and you can

listen any time. we'll be right back. it was just take, take, take. so i broke up with bad banking and moved to sofi checking and savings. now i get higher interest, pay no account fees, and get my paycheck two days early. get up to 4.30% apy, pay no account fees, and up to $2m in fdic insurance. download the sofi app and earn up to $250 when you set up direct deposit. sofi get your money right.

fresh, warm hot dogs! when i'm not selling hot dogs, i invest in a fund that advances innovations like robotics. fresh, warm hot dogs, straight out of my torso! one for you, one for you. oh, you're a messy one. cool, right? so cool. anyone can become an agent of innovation with invesco qqq, a fund that gives you access to nasdaq-100 innovations. hot dogs! fresh, warm hot dogs! before investing carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com.

binance u.s. customers will no longer be able to use u.s. dollars to buy crypto on the platform as early as tuesday next week. this is the signal to pause the channels following the s.e.c. lawsuit against it of

it is a sign that it is too risky to keep on as a client for u.s. customers those who have not withdrawn could convert to stablecoin and withdraw and convert to dollars elsewhere. google employees pushing back against the mandate that staffers spend three days per week in the office in a statement released by alphabet worker union. chris schmidt said worker professionalism disregarded in favor of ambiguous practices tied to performance valuations one-size-fits-all ignores life circumstances. employees deserve a voice in shaping policies. >> crazy >> and a participation award just for being involved. >> i understand if you want to keep people, you may have to offer flexible time, but i think

as an employer, you should be able to say here is the deal you want me to pay you, you have to show up >> yeah. i agree. looking at you >> why are you looking at me >> i want you to weigh in. >> you know i totally disagree >> that's what you're supposed to do. don't just sit there >> i disagree. i think we are living in a new universe i think if we learned nothing, work can be done in other places >> it can. if the boss tells you to come in, you come in. i think there is a recognition you can have a job elsewhere >> you have to listen to the boss by the way, as we learned at cnn and warner bros. and other companies, you may think you're the boss whoever thinks they're the boss is the boss to some degree of th the -- this goes to unions and staffs if the place doesn't want to do

what they're doing, at some point the inmates run the asylum you have to figure out the way to persuade the team of your view it is not -- look, one way to do that is to say you don't work here if you don't work here, we don't have a company there is a balance >> i think this is -- >> i think what is happening here culture rally, you have a bunch of companies doing it in a way that is not bringing people with them. how about that >> i think it is a reflection of the employment segment i do think >> you remember patco? do you know what that is >> no. ignorant to whatever you are about to say. >> oh, just a little air traffic controller union and ronald reagan fired all of them ushered in 30 years of

prosperity and not spoiled you can't coddle it is a buyer's market you can't get enough employees it will be back when people will be happy to have a good job. >> you're on the side of the people i'm so glad. i'm so glad. >> it's the reflection of a ng job market. >> show up stop surfing the web on the company's time

welcome back to "squawk box. warner brothers ceo david zaslav is telling us a lover's war will

bring an end he argues defining a job as a passion or calling makes workers a prime target he's author of the new book "the good enough job: reclaiming the life of work." there is a real question, and i'll use joe's words, the dignity of work and whether you have to be physically on the job to do it and the larger issues at play right now, which is how work is changing. >> yeah, andrew. i think we're seeing right now workers are starting to push back and understand their collective power i don't think there's anything wrong with loving or being passion ate about what you do for work, but there's a problem when you're looking at job security. >> it's a strong job market and

it's led to a shift at least in the thinking of how much power employees have when the boss calls and says, hey, i night you to do this or i need you to do that is that a healthy dynamic? >> i think that will always be there. i think they seen when they band together, there is strength. we're seeing this with the writers in hollywood, nurses in oregon, graduates in ann arbor, teachers in new york city. there will also be a healthy tension when workers will have a seat at the table and policies affect their lives. >> there are some industries like the teachers union that's a very controversial -- the outcome has been very controversial in that everybody would like to protect teachers everybody would like to pay teachers more, frankly, but there are a lot of folks who

might look at the outcome in america around education and say, we have a problem one may well be the protection that's been put in place for teachers i'm sure people will tweet me for saying that. there's a debate about that topic. again, this goes to the balance of where you think the employees should lie versus the boss if you will. >> yeah. i think this is a healthy tension. i think for teachers, for example, we often use this rhetoric around how they're doing such important work and in the same breath saying make due with what you have teachers have had enough of it they need fair payment not platitudes. >> this is new york city how many days were kids out of schools and teachers wouldn't

come back. >> it affects all of us. it's a market. teachers are understanding if they're the supply of this job market, that they have power to push back against the policies in place if they're not serving them. >> i think one of the issues is when you have a company in this day and age, what would you tell a boss you have employees that may be considering unionizing is there a way to do it without a union? i'm actually curious >> yeah, i think there are different approaches unions are one when employees feel useful and have job security, they want to perform. they need to feel some level of security as they go. >> it's a longer conversation. i'd love to have you back

because i think we have a cultural shift where employees don't anticipate staying at companies for a very long time, so that changes the relationship unto itself. we've got run. great op-ed, great book, and thank you. >> sounds good, thank you. coming up, our exclusive interview with cathie wood coming up at 7:30 a.m. "squawk box" will be right back. >> announcer: executive edge is sponsored by at&t business at&t 5g is fast, reliable, and secure ] copy that. make a hard left down the alley. network's got you covered. [please confirm requesting back-up.] -changing route. -go. roadblock ahead. ...back up, back up... reverse! reverse! next level moments, we're 30 seconds out. need the next level network. [north corridor, hurry!] -coming through! -or 3, let's go. the network more businesses choose. transplant received. at&t business.

♪ (upbeat music) ♪ ( ♪♪ ) constant contact's advanced automation lets you send the right message at the right time, every time. ( ♪♪ ) constant contact. helping the small stand tall.

ready to take your business to the next level? scale it with the commerce platform, made for entrepreneurs. shopify is specially designed to help you grow your business. with easy, customizable themes that let you build your brand. marketing tools that get your products out there. yeah, way out there. shipping solutions that actually save you time. and that's just the beginning. from start ups to scale ups. online, in person and on the go. shopify, your all in one commerce platform. meet gold bond healing. a powerhouse lotion that moisturizes, heals, and smooths dry skin. with 7 moisturizers and 3 vitamins, you can pay more but you can't get more. gold bond. champion your skin.

good morning gm partnering with tesla to use its charging network we'll get a check on both of those stocks and an exclusive interview with cathie wood. the s&p closes as investors look for new inflation data ahead of a policy announcement we've got a breakdown of what's to come and what it means for your money. and former president donald trump indicted with seven criminal charges in the mishandling of classified documents. we've got another hour of "squawk box. the second hour begins right now. ♪

good morning welcome back to "squawk box" right here on cnbc live right here at times square i even andrew ross sorkin along with becky quick and joe kernen. the dow is off by 69, 70 points, s&p off by 3 points, nasdaq around 1. the federal grand jury has indicted former president donald trump on seven criminal charges in connection with the miss handling of more than 100 classified documents and eamon javers joins us with more. >> word of the indict management came from donald trump himself he denounced it shortly after

that for all the attention it's gotten online and all the media, we still don't know the full list of crimes that trump is accused of committing here according to a source, that's because the document has been filed under seal we'll see if it's possible to get that seal lifted today the expectation is we might see that document as early as this morning. we do know that one of the charges against trump is a violation of 18 usc 793, which is the espionage act trump's attorney said on cnn last night that two other statutes cited are usc 1512, tampering with a witness or victim informant there are seven counts in all. we're told he's received a summons to appear in u.s. district court on june 13th at 3:00 p.m the white house declined to comment in the first hours after the news broke meanwhile, guys, a number of

prominent conservatives took to social media to urge republicans to rally around the former president of the united states there's no precedent to look for to figure out how this is going to affect his 2024 presidential campaign no other president has faced federal charges before this. very few defeated presidents would run after losing and only one, grover cleveland, succeeded in that. that means trump is in entirely uncharted waters morning's premarket movers l tors are higher the automaker is going to join competitor ford in partnering with ev giant tesla to use tesla's charging network in

north america. ite e going to integrate their charging standard in vehicles starting in 2025 that move further solidifies tesla's position as part of ev straur on the continent. tesla's shares are up and is working on a ten-day winning streak a lot of movement with regard to evs. next up, adobe, roughly 20,000 shares of volume following up on yesterday's nearly 5% gain tied to its announcement of making its firefly artificial intelligence application available to customers. this morning analysts are upgrading that stock to at least an overweight from an equal weight the target price goips as well you see 525 to 420 decided on it those shares up 2.5% we'll kick things off with docusign up 7%.

the electronic signature company and former pandemic stock darling is getting a pop after beating the revenue estimates. it's also offering more bullish quarter. up 6%. remember, down 56% over the course of the last three years stay tuned later on this morning because we're going to talk to docusign ceo about what to expect with its new product offerings. you may recall the shares hit back in 2021 they're currently much lower becky, it will be interesting to see if it can ever get some of that luster back from the pandemic era of the 300 dollar stock that's nowhere near that >> would you trade the goggles for docusign the golgs are the greatest thing. have you bought anything

>> yeah. >> you have to it is a -- i mean, there's a couple of yellow things and you're done, right >> it's amazing. you don't have to find a fax machine. >> it's unbelievable it's real and it's useful, not where am i, some game. >> you're going to be signing the documents in there sometime in the future, yes. >> too heavy. all right, folks younger generations are bearing the burden of rising housing costs and pending student loan payments according to bank of america's consumer checkpoint from may the survey found the older generation is spending 3% to 6%. gen x, gen z, and the millennials are climbing by 2% we have with us the head of the bank of america institute. liz, overall you saw some stabilization, but when you break it down by generations,

you do see a big difference. >>exactly. when you look at overall credit card usage this month, it's flat, stabilizing, which is a huge sign. it was a big difference in how generations were spending. two things drove it. first, housing, second, -- >> housing, you can see it rent has gone up so much, and that tends to affect younger people. >> it's rent and also mortgages. so it's people buying homes an also who are renting what was really interesting, we could look at change of address data to understand how -- who let's moving and how, and over a quarter of consumers under 35 moved in the last year. >> really. >> i can't imagine having to pack up my house that often,

right? but older consumers are moving three times less than that what happens each time you moved, you get exposed to the you're a renter, rising rents, o a home buyer, rising housing rates. if you look at what consumers are paying in terms of their payments for rent and for housing, it's double-digit gains. older consumers, when i say boomers and above, closer to 6%. >> that makes a lot of sense in terms of anticipating student loan payments coming back, how do you know? >> that's a great question we were able to go back before the moratorium went into place, back to 2020 and look at which consumers and households were making student loan payments when it went into effect, immediately the households dropped by half. it's since then dropped to a quarter of those we can see what's happening and how many folks are ding that this obviously impacts younger consumers a lot more than older consumers, although, interesting

there are boomers who still have student loans outstanding. but over 50% of student loan debt is held by the consumers under 35 the largest in terms of dollars outstanding is the 35 to 49-year-old bucket and really what that's saying is millennials and gen z, they're going to be the ones who have to change their spending. and what we see is they're anticipating a shift at the end of the summer and preparing for it the other thing we were able to look at with our data is the monthly student loan payment was about $180 a month understanding the scale, i think, is important. >> however, when you look at every generation, they all have more in the savings surplus than they do in the prepandemic. >> i keep telling you this there's about 50% more when we look at it, it's across

all generations. the gen z's up over 100% so we think they still have gas in the tank. >> and that's -- if i'm the fomc and i em trying to decide what to do with interest rates, overall consumers have stabilized they're not cutting back on their spending they still have more on savings. and if you're trying to figure out if they're tapped yet, the answer is no. >> the other thing that backs up that argument is they're not spending more on their credit cards. so if we look at credit card usage in terms of total spend, it's essentially flat. the only generation that increased at all was the boomers, which went up half a percentage point again, really unchanged. >> and overall signs, health of the economy, what would you compare this to? >> i think in general, again, the consumers have got gas in

the tank, they're resilient. spending is stabilizing. we're not having the huge growth we saw a year ago, but the consumers are in pretty good shape. >> liz, thanks for coming in. >> thanks for having me. coming up, maryland governor wes moore is focused on bringing tech and ai to the state and cathie wood on her latest investment in coinbase and news that gm is joining tesla's charging network we're watching shares of biogen that's halted for news pending an fda panel is expected to address its alzheimer's treatments today we'll be right back. ♪♪ partnering to unlock new ideas, to create new legacies, to transform a company, industry, economy, generation. because grit and vision working in lockstep

puts you on the path to your full potential. old school grit. new world ideas. morgan stanley.

welcome back to "squawk box. maryland announcing a new economic council joining us right now with more on his economic agenda, maryland governor wes moore is with us this morning it's nice to see you, wes. you know, you've been on the program for so long, it's hard for me, but, governor, it's great to see you help us understand what you're doing, and most importantly, what do you think you can do to actually attract these companies to the state >> first, it's great to see you. you know, when i first came into office, i realized there's no

reason for a state that is as sea asset-rich as the state of maryland to be number 47 in the state of competitiveness or 43rd in the state of unemployment we have some of the best institutions including my alma motter johns hopkins university. it's the cyber home of the country. with the home of fort meade and and andrews bachlts so there's no reason for our economy to feel so stagnant. and so we really said how do we make our state to go from being asset-rich and strategy-poor to being asset-rich and economically competitive, and so the real focus we wanted to have is to say -- before i ran for office, i was in military, i led

soldiers in combat you have to understand your capabilities and you have to understand your capabilities and your opponents you have to understand the natural assets in insight and ai and say how do we go and invest aggressively toward those things so we can create pathways for work and in all ways >> governor, what does that look like and historically what that's looked like in other states is tax breaks, tax incentives, other types of payments. we've now moved to a time in parts of our country where those things that were popular are now no longer popular, especially among democrats. >> i think we have to able to have an all of the above approach i wear my heart on my sleeve and i acknowledge that i also know this i don't movie without data

we have to examine the data and have to ask why we're not being competitive with our partners. we have to look at the complexity of being able to restart businesses there's no reason for why it's taking over three years for industries we have to focus on measures of regulation and finding ways of making it not so complicated, cutting the red tape for businesses to be able to grow and start in the state of maryland it also means we have to be able to think about the other things that ceos are asking about when they're saying tell us about your transportation assets, schools, public safety if we don't have better answers for those questions, we're not going to be able to compete with how fast our other neighbors are moving >> how do you approach this? do you go on a tour in silicon valley pick up companies in florida where do you see the opportunity, and what do you think you have to offer?

this is a long-term gain. >> it is a long-term gain. but when i say this is going to be maryland's decade, i mean that and it starts now, and it does mean we're going to have a council that's focused on asset mapping our state and identifying what are the specific elements and areas we are investing in and want to be aggressive on? it means we're going to be taking maryland on an eight-year road trip. i want the other governors to like me, but i'm going to make it clear when i go to their states, i'm going to bring three businesses back with me every single time. something else that's going to be important is we're also going to be going to these areas where you find companies that are being built in states that do not match their values, where you're watching the hyperpoliticalization that seem more worried about getting in fight with washington employers than actually serving the needs

of their society so it does mean part of the instructions i have for the council is to be able to identify these names and places where they say, we're not comfortable building a business in a state where we know that half of our employees are watching their reproductive rights being taken away. we're not comfortable being in a state where we're watching them being consistently tested and banned then come to maryland and we can make this not just a hospitable environment but also make it easier for businesses to be able to grow and thrive, for our businesses to be able to gain liquidity and for our state to be able to have an understanding of global macrocircumstances that allow us to put together a better ballot. >> we've known you a long time, great friend of the show and andrew already documented your past lives of which there's more than a few. i'm wondering. i have a political family i come

from your name comes up a lot, specifically with my son i don't know how much experience do you think you need there is some disillusion with some of the candidates we have, maybe, for the next election i don't know -- >> are youing him? >> i want to know how much experience -- >> he's nearby. >> i know. -- as a governor, how long will it take -- some governors like chris christie said he needed time how long would it take because obviously you would be an attractive candidate with your past, your military, all the things you've done, all your experience what do you think? are you going to do eight years in this job? >> first, i want to let you know i love my job and i'm not going anywhere i love being the governor of maryland because i really do believe this is going to be maryland's decade and we're just

going to move faster than others. >> do you think democrats need a backup plan? how's that, to be perfectly frank with you because at this point, he'll be 86 at the end of his term, president biden would. >> here's what i know. you know, ever since i -- just since i've been the governor, that we have had the president here on multiple occasions, and in the first weeks of me being in office, we were there announcing a joint partnership that's going to fix the frederick douglass cone. that's going to create 30,000 jobs i know that we've already received -- the state of maryland has received $3.2 billion. i'm excited about the fact that i have a partner inside of washington, and that's the reason i'm excited to support his re-election. but i tell you on the experience thing. i do think it's important to note that, you know, when we

were going in and running for office, we were running against people who were statewide elected officials, cabinet secretaries, and all this stuff. i told people if you look at what we were able to get done as are combat veteran, i ran a small business, worked in finance, and worked with one of the biggest poverty organizations. >> i with draw the question. you're too qualified. >> i think what it is, the way we're leading is we're focusing on depot lit sizing this process, that we're focusing on making sure we're eliminated the false choices that people continue to seem to have when it comes to do i want to have a strong economy or do i want to have an equitable one. can have both, and we don't have to keep making these false choices. that's how i think we're trying to lead in the state of maryland. >> governor, real quick, tiktok, your predecessor had banned it in the state for state

employees. what's the long-term prognosis what do you think should happen on a state level and a national level? >> i think the concerns that were laid out before about tiktok still stand i think, you know, until we have a better understanding of how the data is being mined and processed, until we have an understanding how extensive the data collection actually is -- and i don't think we yet still fully have a grasp on the impacts of tiktok, again, not just the content and what it ee doing to children and young people and do they have the proper controls in place, but also that is a significant amount of data of not just our present and our future, that we do not have a clear indication of how that is being used and utilized the same concerns that were there before are the same concerns i harbor as well. >> no tiktok account for you i think i follow you on ig, on instagram. governor, great to see you this morning. >> it's great to see you too

have a great friday, everybody. still to come, don't miss our exclusive issue interview with cathie wood of ark investments and dr. scott gottlieb stay tuned you're watching "squawk box. this is cnbc >> announcer: time now for today's aflac trivia question. in 2013, elon musk bought a car featured in which hollywood movie? the answer when bcwkcn ks continues. now there's a hole in your defense; look at the size of that- gaaaaaaaaaaaap!!! is that a goat?! you talkin' about me? gaaaaaaaaaaaap!!! i think this goat is saying “gap.” must be talking about the expenses health insurance doesn't cover. so who's talking about the money aflac pays to help close that gap? gaaaaaaaaaaaap!!! aflac! aflac! gaaaaaaaaaaaap!!! it's about to go down, baby! aflac! aflac! stop that goat!

get help with expenses health insurance doesn't cover at aflac.com

now the answer to today's aflac trivia question. in 2013 elon musk bought a car featured in which hollywood movie? the answer, "the spy who loved me." musk purchased james bond's lotus esprit car for $1 million. d disciplined risk management are needed most. drawing on deep expertise

across the world's public and private markets in pursuit of long-term returns... pgim. our investments shape tomorrow today. i am here because they revolutionized immunotherapy. i am here because they saw how cancer adapts to different oxygen levels and starved it. i am here because they switched off egfr gene mutation and stopped the growth of tumor cells. there's a place that's making one advanced cancer discovery after another for 75 years.

i am here... i am here.... because of dana-farber. what we do here changes lives everywhere. i am here.

>> we're back. general motors and ford are teaming up to gain access to 12,000 of tesla's fast chargers

starting next year gm and tesla on higher news. cathie wood is the top holder of ark innovation it's a remarkable thing. we us listening to twitter spaces elon musk with mary barra. it's been hard for her to utter the word tesla over the years and here is this partnership what do you think it means for tesla and the legacy of automakers gm and ford >> i think it's great for america and our transition to the electric future as elon said, and i do think it increases the probability that our forecast of 60 million electric vehicle sales by '27, it's increased the probability that that is right

we had globally 7.7 lekelectric vehicles sold last year and it's going to completely dominate the industry i think having both general motors and ford on this charging network, which is the big gaming factor, will get us there that much faster. >> i think there's two questions. some people would say, great, short term and long term for ford and gm. everybody's a winner in this there are others that are concerned that would say may be great for ford and gm short term i think there's almost no question about that. the question is what happens in the long term if effectively two of the largest american automakers are effective driving sales effectively to tesla in terms of electric power piece of it and the advertisement that is the tesla charging station, what that means long term in terms of elon musk's ability to sell more

vehicles, potentially at even cheaper prices >> this reminds me of what happens with most technologies that proliferate and scale there's a standard, and here we have a charging standard, charging solves the range anxiety problem. what's interesting about this is it does help tesla underwrite the charging station expense because if you look at tesla's sales, they are highly concentrated on the coasts now it's going to make a lot more sense for tesla to roll out charging stations that much faster throughout the country. >> right how much of their revenue and profits do you now imagine over time will be a function of the infrastructure part of their business versus the automobile manufacturing part of their business >> well, actually we think another revenue source is going to be much bigger, and, of

course, that's the autonomous taxi platform, and we think it's going to drive the valuation because the margins associated with autonomous are going to be sass like. instead of electric vehicle gross margins in the 25% to 30% range, we expect autonomous, the platform strategy, to deliver 80%, 90% margins some of the combined will be north of 50%. >> in terms of the grid, though, that they're building and these charging stations, you think that's a small part of the business the services that they may be able to add on to some of those stations >> we have not counted -- so we are in print at $2,000 in 2027, and we have not counted the possible revenue sources associated with this strategy, and we haven't even done much in the energy storage business away

from electric vehicles because we think the most valuable part of the business will be the scaling of vehicles to create this autonomous taxi platform. >> the other big part of the business this week and one included you was the s.e.c. filing a civil case against coi coinbase on the back of, that you picked up more shares of coinbase what'sure thesis, and are you effectively betting against the government >> no, we're betting on the checks and balances inherent in our government you've got gary gensler appointed by the executive branch it has to be ratified by the senate but we now have the judicial system and legislative system studying and getting involved in this topic, and i think it's great. i think we're going to end up in

the right place. right now the s.e.c. regulation and uncertainty around it is chasing digital asset business away from this country, and i think -- i think the legislative branch understands it. this will be an election year issue, and i think the judicial branch is very interesting in terms of, you know, the voyager binance case you know, the judge basically said, s.e.c., what are you doing? you can't prevent the sale of assets from this company to this company. the grayscale case seems very logically going grayscale's way, so hopefully we get a bitcoin etf. and even the ripple case gentzler did not mention or the s.e.c. did not mention ripple among the securities in these suits. so that's very interesting as well. >> but, cathie, is your thesis based on the basis that the

judiciary will rein in the s.e.c. >> i think between the judicial process and the legislative process and perhaps an elect year -- i think this is an election year issue, that they will weigh in in a way that gives us much more clarity in terms of regulation, and the pathway to legislation, which is one of the ways that brian armstrong has been saying, okay, tell us how to do it he's just been facing a stone wall so let's get some of these answers. let's get clarity. the market hates uncertainty, and i think in the next year, we'll get a lot more certainty. >> cathie, when you look at the upside/downside on coinbase, to the extent they may lose this case, how much do you think they could lose >> this is going to be going to the courts and be in the courts for years and years. if it needs to go to the supreme court, brian armstrong said it

will go to the supreme court, and we think it is that important. meanwhile we have binance, which is in much more trouble from the s.e.c.'s point of view than coinbase is. coinbase and binance are -- the suit is about securities on their exchange and not being registered and that sort of thing. but binance now is being accused by the s.e.c. of some ftx-like behavior, which is very interesting. and i see this morning that binance u.s. has stopped fiat deposits, which from a market share point of view is a benefit to coinbase. we hope this all gets settled in the next year, and we do hope that binance is -- has not done some of these things and that the crypto -- we're starting to

use the words digital assets as opposed to crypto because that's more understandable. as parents and grandparents see their children buying digital assets away from cryptocurrencies with some of their favorite games. >> gary gensler says dollar or digital. they're inflating everything now. i don't know if you saw that yesterday. said because most dollars aren't in circulation and they're on -- you know, they're just entries, that they're digital i don't know where that dropped in the conversation. >> one thing that i think will help clarify things, and i think as this goes through the legislative process, this is more of what you'll hear what the internet financial system is doing -- and that's the crypto ecosystem -- is building in the layer that the architects of the internet did not include in the early days of the internet as we were building it out in the '90s, and that is

the financial layer. instead what do we have today? the traditional financial system for a merchant to get from his store online -- website, to a customer, there are nine steps two of them are the merchant and consumer seven are toll takers, anywhere from 2.5% to 4%. the internet will make the financial system so much more efficient. i think as individuals begin to understand that, it will become much more acceptable and will delight the consumer. >> cathie, let me ask you a separate question just on the currencies themselves. bitcoin, by the werek trading at $26,566. we've had many a conversation about your expectations of the value of bitcoin, $500,000, i believe, was the last number you had put out in terms of where

you thought this could go. i think you thought that was several years away do you want to update us on that do you think bitcoin has changed under this dynamic >> in our big ideas 2023 -- it's on our website, you'll find our digital asset forecast so we expect the bitcoin price -- the base case is 600,000 plus our bull case is more than $1 million. and i think as time goes on -- >> what's the time line for that, kacathie >> 2030. >> 2030. >> this is a very big idea this. is the first global private -- no government oversight digital rules-based monetary system. and there's a lot of discipline here in the metering to get to

that. >> would you agree, cathie, in fairness you had much higher expectations where bitcoin would be today if we looked back two or three years ago conversations, you would have talked about bitcoin being much higher, right are you disappointed where things are >> in fact, something really important happened very recently during the regional bank crisis. if you will notice, the regional bank stocks were imploding and bitcoin went from 19$19,000 to $30,000. what was that? a flight to safety a flight to safety think about that we think all of it will be flight to safety we talked about tesla before flight to safety accelerate onto this charge platform m make it a national standard.

let's do it all together, flight to safety. our strategies, you mentioned arkk actually arkk holds more tesla that's our robotics strategy we believe that all of these -- all of our funds, which have been hurt very badly by interest rates going up over the last few years, they they're going to benefit from the deflationary ramifications innovation -- >> we'll have to talk about that kcak cathie, i want to thank you. >> we wondered why would you ruin your reputation on bitcoin. >> some people have been right but there were people -- >> 26,500 though. >> and go and look at what all the people at 60,000 who were trying to get people -- >> i got -- i got interested at 8,000 and as low as 4,000.

26,000, i remember having a conversation. >> we'll see. >> okay. >> we'll see. >> all right it's just -- i don't think it's been the best performing asset across all asset classes in the last 15 years. >> you know -- >> bar none. when we come back, dr. scott gottlieb will join us. stick around you know, the definition of the word "pride" is cons consciousness of one's own dignity, and i think this annual event doesn't take the time to but to celebrate out loud is to celebrate awareness of others that we're deserve of love, honor, and celebration, and dignity, and i think everyone deserves dignity [phone: starting route.] technology helps us navigate to work. [phone: go straight.]

but, to navigate the complexities of modern work... [phone: turn left.] ...you need more than technology. you need cdw. [phone: you have arrived.] so we'll implement cloud based microsoft modern work solutions like microsoft 365, teams and azure, so your teams can collaborate with zero trust security anywhere. [phone: destination ahead.] microsoft makes modern work possible. cdw makes it powerful. what do you get from the morgan stanley client experience? listening more than talking, and a personalized plan ♪ to guide you through a changing world. ♪ this thing, it's making me get an ice bath again. what do you mean? these straps are mind-blowing! they collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery. and you are? i'm an investor...in invesco qqq, a fund that gives me access to... nasdaq 100 innovations like... wearable training optimization tech.

uh, how long are you... i'm done. i'm okay. good luck.

td ameritrade, this is anna. hi anna, this position is all over the place, help! hey professor, subscriptions are down but that's only an estimated 15% of their valuation. do you think the market is overreacting? how'd you know that? the company profile tool, in thinkorswim®. yes, i love you!! please ignore that. td ameritrade. award-winning customer service that has your back. still to come, advancing health care with the use of ai former fda commissioner dr. scott gottlieb will join us. and then the ceo of pandemic darling docusign, shares surged after reporting results last night, and they're up again this morning. still the stock is down by about 20% since its pandemic high. stay tuned we'll talk more about this coming up. a car that goes as far as it does fast.

as sleek as it is... spacious. as smart... as it is beautiful. introducing the lucid air. experience the best. ♪ [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. so, you've got the power of xfinity at home. a now take it outside busin with xfinity mobile.ss. like speed? it's the fastest mobile service around. with the best price for two lines of unlimited. only 30 bucks a line per month. that's hundreds in savings a year when you wave bye to the other guys. no wonder xfinity mobile is one of the fastest growing mobile services. you really shouldn't walk out the front door without it. switch today at xfinitymobile.com. we moved out of the city so our little sophie could appreciate nature. but then he got us t-mobile home internet. i was just trying to improve our signal,

so some of the trees had to go. i might've taken it a step too far. (chainsaw revs) (tree crashes) (chainsaw continues) (daughter screams) let's pretend for a second that you didn't let down your entire family. what would that reality look like? well i guess i would've gotten us xfinity... and we'd have a better view. do you need mulch? what, we have a ton of mulch. former fda commissioner scott gottlieb out with a new piece in the "journal of american medical association" outlining how the fda should be regulating i guess if you picked the top three, i guess, most exciting things, areas for a.i., i think

this always falls in one of the top three, what we could do with medical science and drug development. >> yeah, look, i think that's right. anybody who's engaged with these large language models can recognize what they'll do in health care. you can look at genomic data, data on human response to disease and try to find associations that wouldn't be discernible through traditional methods. you can use it for drug opt imization, trying to find reasons why certain drugs might not be absorbed well, look at many different drugs and start to tease out the qualities around molecules that can help define when they're going to be good drugs, when they're likely to be absorbed efficiently and likely to have fewer side effects and allows better

stratification of patients in clinical tries and practice and you can look across large data sets look for markers of disease, severity and causation of disease that might not be discernible. and you can start to define which patients will be high risk for a recurrence of cancer, which patients might be at high risk for heart disease and enroll those patients in clinical trials so you get a signal more easily or target therapies to those patients. so all these uses are right on the horizon. these things are being adopted right now. the fda will need to think differently about how it regulates these data sets in order to bring these to patients >> drug development i think, can you -- what do you foresee in how does that play out how long does it take and when do you actually see sort of the promise of that being played out with a.i.? is it five years off is it less

more >> it's right now. there's companies right now that are using these tools to improve drug development some companies are based on these kinds of tools so, for example, we spent the week with chris gibsons, they're using large language models to do drug development. there are other companies like that adopting these tools. even inside the big pharmaceutical companies, collaboration is under way to improve traditional methods of developing drugs i think the harder part is going to be adopting these tools in clinical practice because where fda is going to have challenges is trusting the tool that's built on a data set where fda can't decouple of data set that the algorithm was trained on you have an algorithm that's got an intelligent, large language model based on data sets the fda might worry are biased, have certain problems, don't have

reliable data. traditionally the tools that made their way into clinical practice for drug development or prescribing to patients are built upon data sets where they're closed data sets where the fda knows that the data that the algorithms were trained on is reliable, for example, a tool that does pattern recognition to help radiologists identify certain things on scans like tumors, you know the scans that al gore ralgorithm was trained on, with the large model, you don't have an assurance that the dwr data is necessarily reliability in every instance. >> i haven't seen you in a while. we had the lily ceo.

what kind of progress are these drugs making and what do you expect to hear today >> this is a profound result that biogen had. i wouldn't expect there to be any results looking at the briefing documents 27% reduction in cognitive decline in early alzheimer's patients can be profound the biggest challenge will be reimbursement. medicare is not paying for this particular drug. they said they would only pay for it for a clinical trial. they said once this drug gets full approval and other drugs within this category, they're only going to pay for it with some kind of coverage with evidence development that could put real burdens on providers and patients and create access dislocations, particularly for patients who already have obstacles getting access to these kind of

therapies. medicare said the example they would turn to for how they would turn for this is the minimally invasive aortic valve. that required an 11-page form to be filled out by clinicians and doctors to pay a $25,000 entrance fee to get into that clinical trial if they impose something similar here, that's going to create real problems for patients and providers. >> all right, scott, thank you >> thanks a lot. >> we'll see you again thanks >> when we come back, docusign ceo will give us an update on the company's restructuring plan that stock moving higher after strong earnings and guidance plus are tesla shares up more than 20% so far. wel lk t'ltao gene munster for his thoughts on the stock. "squawk box" will be right back.

what do you see on the horizon? uncertainty? or opportunity. whatever you see, at pgim we can help you rise to the challenges of today, when active investing and disciplined risk management

are needed most. drawing on deep expertise across the world's public and private markets in pursuit of long-term returns... pgim. our investments shape tomorrow today. good morning the bulls, they are back in town the s&p ending its longest bear market in decades. complete market coverage straight ahead and former president donald trump indicted on federal criminal charges in connection with his keeping classified government documents after he left office. he's been called to court early next week. and gm will now use tesla's fast charging network just like ford announced a couple of weeks ago. cathie wood weighing in on all

of it. the final hour of "squawk box" begins right now good morning and welcome to "squawk box" here on cnbc, live from the nasdaq market site in times square i'm joe kernen along with becky quick and andrew ross sorkin and the s&p 500 ending its longest bear market since the middle of last century oh my god. that sounds like the stone ages. it's up 20% from the october lows it's also on pace for its fourth straight positive week and it would be the longest winning streak since last august meanwhile, the nasdaq is just barely negative for the week but if it ends that way, it would snap a six-week win streak treasury yields, i don't know, are they cooperating not really not with the fed

a little bit 375 with a 5 to 5 1/4 fed fund rates are still inverted, two-year not as inverted as it had been, but we'll see who's right. still some disagreement between the markets and the feds >> gm announcing it is going to follow ford and partner with tesla to use its north american charging network starting next year, gm owners will be able to access 12,000 of tesla's smart chargers we spoke with tesla's kathy wood last hour. here's what she had to say >> i do think it increases the probability that our forecast of 60 million electric vehicle sales by '27, it has increased the probability that that is right. we had globally 7.7 electric vehicles sold around the globe

last year, going to 60 million and will dominate the industry and having general motors and ford on this charging network, which is the big gating factor, range nxiety, gets us there that much faster >> appearing on "fast money" last night, gm ceo mary barr saying the deal with tesla will almost double the number of chargers that gm customers can access and that was the thesis behind getting this and super charging, if you will, their efforts to get those cars on the road >> in the meantime, kathy wood also weighing in on coin base. she actually added more than 300,000 shares of the crypto company on tuesday, even as the stock was getting hit on news that the sec was suing it. here's what wood told us >> i think between the judicial process and the legislative process and perhaps an election year, i think this is an election year issue, that they will weigh in in a way that

gives us much more clarity in terms of regulation and the pathway to registration, which is one of the things that brian armstrong has been saying, okay, tell us how to do it you know, he's just been facing a stone wall >> she's been buying in before, bought a lot of shares when coin base was first served the wells notice as well look at where the shares are trading, off by about 1.1% >> the u.s. arm of crypto exchange binance says it's halting the dollar deposits and users may lose the ability to withdraw dollars after the sec has filed suit against the company and its founder and on tuesday asked a federal court to freeze binance u.s

and said it used extremely aggressive and discriminating tactics in a campaign against the american digital asset industry it says it maintains 1-to-1 reserves for all customers assets >> we want to get over to don chu. he's looking at big premarket movers >> we're going to hit some of the big analyst calls starting with retailer target, down roughly a percent and a half, around 40,000 shares oftrading volume not helping are analysts at citigroup who downgraded to a neutral rating it was a buy they cut their target to 130 and it was 177 they cited more competition from the likes of walmart and others. those shares down about 1.5% then you have shares of corning,

roughly 8,000 shares of volume the specialty materials and fiber optic technology company is getting upgraded to overweight from equal weight they think demands for fiber optic improvements in the display business will be positive catalysts for that stock. this year up about 3.5%. we'll end on artificial intelligence, a big, huge deal, shares of adobe up 3.5% to 4%. it was 5% yesterday on news it would make its fire fly platform available for corporate customers. they raised their target price to 525 it was 420 a lot of stuff on the move due to analyst calls back over to you >> thanks. the longest bear market in the s&p in decades coming to a

close. as we told you the s&p now 20% off the low from last october. joining us now is kevin, president and chief investment officer of hennian and walsh asset management i don't know if the market knows we use base 10, i don't know if it knows that 20% is a round number i don't know if any of that matters. is this significant that it's gotten to that number or is it still possibly just a reflection rally testing the high end, the upper end of a range that's going to continue? >> i mean, there's been a party in the stock market this year, joe, but only seven companies were invited for the other 493 companies in the s&p 500 to receive their evariet e-vite to the party, we're going to need comfort that any potential recessionary period will be relatively short and shallow and then we'll see more

breadth in this market recovery and we'll know we're in a true bull market rally that has more sustainability >> are we at the end of this rate hiking cycle? >> my mantra is hike in may, go away i -- the federal reserve has told us they were going to continue to raise interest rates and shrink the size of their balance sheet until something broke. well, something broke in the banking cycle. they're forecasting gdt to be .4 of 1%. that suggests more difficult days ahead for the economy the economy is slowing they can't continue to raise rates in the face of that. >> do we have better underlying fundamentals in europe >> i think there's more opportunities overseas i really do. >> no, they're in a recession. does that mean one follows here or did we do things better, do things differently do we have different underlying fundamentals we headed there

>> we're headed there, in my opinion. that's an intended consequence of the fed's aggressive moves. they wanted to cripple demand. they did that by hurting the consumer the consumer is continuing to spend but unemployment should grow to 4.5% by the end of this year the consumer is still spending but they're dipping more into pev personal savings and putting more on their credit cards than ever before. >> you said that could cause the market to extend its move above 4300 so even with a recession, so it's going to do that facing even though a recession is in the cards soon >> yes, i believe -- if in fact we hit recessionary waters during the second half this year, which i believe we will, that will lead the fed to start cutting rates early next year.

>> so in your view the stocks that led us higher, they don't come back to join everybody else if the water becomes clear that the water is fine, the rest will join in? >> the rest should join in, particularly in the health care and technology sectors. >> you're pretty bullish >> over the long term i am >> you have a year end target for the s&p in. >> i don't but two years from now the picture becomes a lot clearer. if the fed starts cutting rates, it's time to jump back in the water again. but you can't wait because then you'll miss out on the bulk of that recovery. >> so we'll see new highs in all the averages >> by the end of 2024 we'll be hitting new highs. >> you think stocks in europe are attractive, too, even more attractive >> i think the next super cycle

of outperformance will be overseas the u.s. has been in this cycle for the last 13 years over internationals internationals are going to keep rates higher if we start moving rates lower, the dollar starts to get lower as well and you can see more rallies overseas >> is either hennian or walsh still there? >> they're still there >> you go out and put your rear on the line for all the calls and they take credit when you're right? huh? >> it's a team effort, joe >> you have to go out and take the flak if it doesn't work. >> i'm happy to do it. i'm happy to be at the forefront. >> have a good weekend >> thank you >> when we come back, we're going to talk afrmgts i., the current state of employees working from home and much more with docusign. the stock is up this morning first as we head to a break, let's great few more things you

need to know about this morning's business headlines chinese producer prices plunging by 4.6% last month, the steepest drop in years. and ubs covering billions in losses from the emergency takeover of credit suisse. and air quality apps are surging in popularity. as of yesterday the air now app created by the environmental protection agency was the sixth most downloaded free app on the iphone, beating out both tiktok and instagram. this is cnbc

i was having relationship issues with my old bank. next to no interest, the fees... it was just take, take, take. so i broke up with bad banking and moved to sofi checking and savings. now i get higher interest, pay no account fees, and get my paycheck two days early. get up to 4.30% apy, pay no account fees, and up to $2m in fdic insurance.

download the sofi app and earn up to $250 when you set up direct deposit. sofi get your money right.

welcome back to "squawk box. take a look at futures this friday morning some red it's mixed dow off about 44 points, nasdaq up 48 points and s&p 500 up 2.5 points docusign shares jumping in the premarket, the e signature company beating analyst profits and revenue estimates for the first quarter. full-year guidance came in better than expected it has been a busy year with

many moves including leadership changes and job cuts joining us is docusign ceo alan teaguerson what do you see coming in the months and quarters to come? >> well, it was a strong quarter. we were pleased to beat on both the tom and bottom line. i think in general this is a foundation setting year for docusign we are setting the foundation for future growth, making significant progress, releasing new products at a much more rapid pace, broadening distribution channels, including direct serve channels and partners and improving internal operations and filling out our team i feel very good about how we're positioned >> i think part of the enthusiasm has to do with what

you said about .i.and why you don't think artificial intelligence is going to be a huge threat coming from places like chatgpt >> we think it's actually a fantastic enabler. to start let me just note that we have shipping products with a.i. embedded for years so we have deep experience and expertise in house and i think that positions us well second, look at the overall agreement category, there's substantial opportunity to improve of aspect of it, whether it's drafting, editing, negotiating, settling and of course managing the graagreemens from a docusign perspective, in addition to our historical experience and expertise, we have a trusted relationship with most large companies they already give us their agreements we have the largest corpus of

agreements of any company in the world and that fuels our ability to create the best agreement models i'm very bullish on the opportunities for a.i. drafting and editing and managing agreements is not putting out high school papers i think we're in a very strong position given the unique proprietary knowledge that we have and the unique aspect of the case >> you bought an a.i. company back in 2020 before it was such a hot commodity and people realized how big of a deal it was going to be. what do you do with that analytics company >> we're currently shipping that product. it's been fantastic to learn we do well with it with a number of clients as we look ahead, we'll have next generation products that leverage the amazing cloud capabilities from companies like microsoft and other, complement it with our own in-house models that we're developing.

it's been a fantastic learning experience for us and we get a lot of feedback from customers on what people truly value i'm very bullish with the opportunity of a.i >> shares of docusign are down more than 35% for the year but they're up by i think it's something like 21% and even more than that with today's gain since you took over last october. part of this is what you've been doing in terms of laying off and downsizing the company where do you stand in that process? >> you know, i would prefer it was right sizing it was more a reprioritizing our resources and we pivoted some of the capacity into our product and technology organizations where i felt like we have an incremental opportunity to go for growth and we returned some additional funds to shareholders and just upped our estimates for

upgrading as a share of our revenue so balancing all those situations >> joe talked earlier about docusign and how we're all incredibly familiar with it. if you weren't before the pandemic, you certainly are since then i don't think the world's going back this is a much easier way to do things your biggest competition comes from adobe is there anything that says you do better as an independent company? is there anything that says, hey, maybe you'd be great in a suite of other services? >> well, i can't comment on the plans of our company we're focused on building a great independent company. we are the clear market leader in the agreement space and i think we command a premium because people value the convenience, the trust, the higher response rates you go et with docusign. we're very focused on the agreement space and we're the leading player in that area and i intend to keep it that way >> i'm trying to figure out, allan, whether i was signing

things by hand there would i be reading the things i'm supposed to be reading because i don't read them with -- it scares me i hope there's no unscrupulous people out there because i can get through a docusign so quickly. and cursive is hard for me now i get a cramp. the one bad thing is i can do it in like 30 seconds and i'm signing major documents. it's just as bad if i'm doing it wrong and i'm still not reading it >> i'd say that's similar. we focus first of all about the trust aspect >> but i lie about saying i read everything >> on the a.i. topic we launched an agreement summarization

agreement. >> when are we going to get to true notaries? >> there's a lot of state regulation and so on on that topic. >> i know. >> in europe we did something very much like that and we just announced that this quarter where not only can you upload your i.d., but we will do realtime liveness check to ensure the person whose i.d. was just uploaded is present that's all automated >> we got to end the notary business the notary thing is the killer thanks, allan. >> we have to support that so we partner with third-party notary services when required as i said, i think it's possible to deliver a better program or

equivalent >> you're right. that's the one thing -- >> you need a person >> you do. we got to get rid of them. >> you can go to ups these days. >> i know you can find them. i still wonder what's the point, the stupid thing they squeeze. >> allan, thank you for joining us >> thank you so much for having me >> coming up, kathy wood telling us the ev company ahead. we'll get reaction from gene munster and we'll get you ready for next week's federal reserve meeting and talk expectations with former governor fre frederic mishkin en covid hit, we had some challenges. i heard about the payroll tax refund that allowed us to keep the people that have been here taking care of us.

learn more at getrefunds.com. ♪ i think i was like, ten, maybe. our team came in second... ...i wouldn't accept the second place trophy. i wasn't... i didn't want second place. i didn't want it. i was in tears, crying. my coach told me “you won't have success if you can't handle failure.” that's big. not just for hitting. for anything in life. ♪ [anncr: “that ball is gone!”] ♪

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.

welcome back to "squawk box. take a look, if you would, you don't have to. take a look at the small cap russell 2000 it's up 2% small caps inexplicably took off the other day, which probably is not an awful sign for everybody

else >> palantir ceo calling for a pause for a.i. research. he said many people asking for a pause are asking for a pause because they have no product he said it could lead in adversaries stealing the lead in applications when asked if he wanted an a.i. arms race, he said there already is one and the race won't stop if we slow down. >> another feather in the cap for tesla, saying it's going to use elon musk's fast charging network after the break. what that means for tesla investors. and get the best from squawk

pod. listen any time. we'll be right back. [bees] should we have another one? talk to us about retirement today, feel comfortable about tomorrow. massmutual.

ahhh! icy hot pro starts working instantly. with two max-strength pain relievers, so you can rise from pain like a pro. icy hot pro.

welcome back to "squawk box" on cnbc. the futures right now are mixed with now green, the s&p barely but the nasdaq showing some gains this morning

i'm not sure about today but next week the fed and the cpi both on the docket, on the docusign for next week the 2-year 4.53. nothing's happening over the weekend. we can relax for a couple days, right? >> i hope so every time you say that, look out. >> gm will follow ford and partner with tesla to use tesla's network of fast charger. >> it does help tesla underwrite the charging station expense because if you look at tesla sales, they are highly concentrated on the coasts now it's going to make a lot more sense for tesla to roll out charging stations that much faster throughout the country. >> joining us with his reaction, gene munster, managing partner

at deep water asset management we've been talking about the implications of straight up cash-on-cash earnings this may create for tesla beyond the brandings and all this may do for tesla, the fact that this becomes the standard and gives them an opportunity to grow even larger, just as an infrastructure play, gene. >> that's true, andrew this is a positive step for a small business that investors historically have not given much attention to there are public lly trading companies that do just that. when you look at tesla's overall revenue, this is a fractional business and will probably remain a small business, even with the addition of ford, gm and other car makers undoubtedly will go to this charging network. i views this more as a positive for gm and ford. it's probably a neutral or

slight possible for tesla because they will pick up infrastructure revenue but ultimately they are giving the rails to these competitors which have been struggling i this i traditional auto is in a really tight spot over the next decade in part because of infrastructure i think elon is making good on his promise he wants to advance electtorification. it's part of the company's mission statement to advance energy independence. i think he's doing this as more of a move for greater evs than as t positive for tesla >> you probably listened at twitter spaces between mary barr and him. it was awkward to be honest, just hearing the different personalities on the phone but it's an amazing thing. the up side is for the industry,

for the country. i was going to argue for tesla generally in terms of potentially both revenue and the marketing and advertising they get from any time any of these vehicles now if to a tesla charging station having said that, on twitter this morning, a number of folks say there's now a line around the block already for some of he's tesla charging stations and the line is only going to grow larger that's not actually a good thing for the tesla brand. what do you make of that in. >> it's if you polled a tesla owner, they would be disappointed in this announcement one thing that came up on the twitter space yesterday that you're referring to is that tesla would not give preferential treatment in terms of being able to jump the line with some of these other car makers and would not essentially

demote what these other car makers are getting from technology, the charging speed times. so they're not going to meter it that is something that could -- back fire is probably too strong of a word. range anxiety is the big issue here it's kind of a bizarre topic ultimately range anxiety and charging times and wait times all play into it i think you could see a situation where this is viewed as a negative by tesla owners. >> my question was going to be whether you think the way the charging stations ultimately will work will still be a more seamless process if you're a tesla droo or ultimately will be be the exact same, same as the billing process no matter what kind of car you get in in. >> they addressed that both for ford and the gm announcements is

that next year these cars will be able to charged from the tesla charging networks with an adapter. but that's not seamless. 2025 they want to embed the charging network into their software that means if you're going to go on a trip with a tesla, you can and then it will optimize your charging route, essentially. that's going to start in, say, 2025 i think from a user experience ford and gm is going to be that's just for the charging piece. think but the substance of it, there's going to be relative parity around the charging experience by 2025 >> is there going to be a way

to, for tesla, to market or provide other services to gm and ford owners over time? just given elon, i think there is some fun direction they could take these charging stations over time. they could really stick it to traditional auto and turn these into pry craig show in terms of making those destinations. i wouldn't imagine that ford and gm would want that pu this. kathy is correct here in the sense they're going to be gm and ford they haven't been embassy police it about what the amount is but they're going to be funding some of that infrastructure build it is la could add other

services at the randing, the cost of traditional auto >> you have a another of other auto makers on the screen, including toyota does this force the issue? does basically every car manufacturer in america now have to get on board? >> yes i was surprised at the speed it took two weeks for gm you mentioned that kind of distance, that bad blood between the two companies. it runs deep i think it was a telling sign and i think eventually other carmakers, they can't build their own infrastructure they have to adopt at this point. this is tesla. there as still oxygen because there a a long risk of why traditional auto -- >> the other charging companies out there, what do you think it does to those businesses >> i don't want to go through them by name but i think they are in trouble i think ultimately there

probably an opportunity for some companies that maybe specialize in high-speed charging for trucks, things like that but as far as from a, tesla will run the table on these charging networks they just got two huge backers to that and i would suspect they will be fractional businesses in the future, those of the charging networks >> gene, thank you for your perspective on all of it >> thank you >> when we come back, we're going to talk about the fed next week up know what's going on. we'll talk all about that. is the central bank setting up for a june skip or another rate hike skip mean there's going to be more i guess it would depend. we're going to ask former

governor frederic mishkin. and check out carvana. short sellers are looking at more that a billn lls iodoarin market loss necessary that stock this year. stay tuned you're watching "squawk box" on cnbc possible to us e predictive monitoring to address operations issues? we can help with that. can we provide health care virtually anywhere? we can help with that, too. is it possible to survey foot traffic across all of our locations? yeah! absolutely. with global secure networking from comcast business. it's not just possible. it's happening.

the first time your sales reached 100k with godaddy was also the first time your profits left you speechless. at the counter or on the go, save 20% with the lowest transaction fees and keep more of what you make. start saving today at godaddy.com narrator: the man with the troublesome hemorrhoid enters the room. phil: excuse me? hillary: that wasn't me. narrator: said hillary, who's only taken 347 steps today. hillary: i cycled here. narrator: speaking of cycles, mary's period is due to start in three days. mary: how do they know so much about us? narrator: your all sharing health data without realizing it. that's how i know about kevin's rash.

who's next? wait... what's that in your hand? no, no, stop! oh you're no fun. [lock clicks shut] welcome back to "squawk box," every. the futures this morning have been mixed dow futures off by about 68. s&p futures relatively flat, up by less than 2 and nasdaq up by

about 45 and netflix delivered a windfall of new subscribers according to a wall street journal report citing antenna it says netflix added more subscribers between may 25th and may 28th than since 2019 the stock up 3.4%. i guess it goes to prove if you're going to get kicked off, you're going to pony up the cash we are days away from the fed meeting. there's been talk about a possible pause in rate hikes but nothing is guaranteed until wednesday at 2 p.m. eastern time joining us is rick mishkin, he's a cnbc contributor rick, you're not a fan of this idea of pausing. >> i actually think that -- i can understand why you might want to do it. it's not terrible if they do do it, but i think that we're in a

situation where inflation numbers are high, very slow to come down to the 2% target, particularly on future inflation. the economy is still quite strong, there is some weakening but we have a long way to go before inflationary pressures and i think the fed will have to raise rates and better off doing it now to show a strong commitment to keeping inflation under control. particularly important because they did blow it earlier on when they were too slow to start raising rates but luckily got on the stick and started raising rates quickly. >> you don't sound assume concerned, if they pause this time around and raise in july because the next meeting is just the next month that, wouldn't be catastrophic in your opinion >> i don't think it's catastrophic i think the key is communication here they have to communicate, number one, that they think that the buy is certainly they have to keep raising rates

they have not got inflation under control the way they want to they still have some work to do and that's something that they have to commit to. the second issue is even maybe more important is that the markets have completely talked about the fed easing when the economy starts to slow i think the fed has to be very clear that until inflation really is heading down to the path of 2%, that -- and it's really clear that that is happening that they're not going to pivot, they're not going to reverse course, that it's going to take a sustained period of high interest rates to get inflation under control and that's a lesson that they should have learned from the past there have periods during the volcker disinflation when volcker blinked and cut rates before the job was really done and had to raise them even more. i know people don't like rates to be higher i sometimes get some nasty emails about this when i advocate that rates have to be higher, but if we don't do it

now, they'll have to be even higher in the future that's a lesson that we learned in the past and i think the fed understands that but has to communicate that well as well. >> rick, we've heard that message from neil kashkari and others but for some reason the market doesn't really believe it you look at interest rates and where people are anticipating things is that just -- i mean, how do they correct it, say it more firmly and make people believe them >> eventually it happens the markets continually thought the fed wasn't going to raise rates as much as they were raising rates. the fed just had to keep on doing it that's part of the credibility issue. that's one of the reasons why i would prefer right now the fed raise rates because it would provide a signal to the market to wake up, guys, we haven't yet finished our business here and we're not going to stop keeping rates high until we actually have success in getting inflation down on a path towards 2% in a reasonable period of time so that's part of the process,

the fed has to keep at it. it's not unusual that the fed and markets disagree but you don't fight the fed. when the fed keeps doing its job and lets people now, eventually the markets will come around >> we've heard people recently estimate it could take rates up to as high as 6% we heard that from the former richmond fed president earlier this week. jamie dimon said similar thing what's your estimation on where you think rates need to come, how high and what that means for the unemployment rate? >> that's a reason i like raising rates now. the quicker you move, the less high you have to go. that was part of the mistake that the fed made, being too easy for too long, which i was very critical of for a period of time >> we don't know exactly how high rates have to go. if the banking sector actually is in good shape and that's not going to be a big drag on the

economy, i think we're going to have to go to at least 5 1/2 and not out of the realm of possibility we might have to go to 6 i hope not i hope that the fed's credibility -- that the market gets it, that people get that the fed will be serious so they don't have to raise rates by as much but this is a tough game you don't know exactly what you need to do and also communicating is not so easy >> but that's an interesting point, though, what you're saying is that if you don't do this quickly, you're going to have to go higher and it will eventually cause more pain you're basically saying you have to be cruel to be kind here. >> it's what i call tough kids i have kids. a lot of times you got to basically say, tough nuggies that's an old phrase, by the way. if you're going to grow up to be a decent kid, i basically have to say no to you right now that's sort of the role that the fed has to play in an important

way. in fact, if the fed had acted much quicker and was not as slow to get to stop removing their accommodating policy, we wouldn't have to be in the position we are now with the high rates that we have now. that's unfortunate but at least the fed got its act together when the fed doesn't get its act together, you get periods like in the 70s and 80s where interest rates were 20% under volcker. and just as with kids, if you're not tough enough when you're raising them, they're going to grow up to be rotten kids than if you gave them tough love earlier on >> we had bank of america on earlier, bank of america institute just talking about the numbers they see and it's kind of phenomenal to see consumer spending is still hanging in there. it's not growing overall if you break it down by

generations, you see the younger generations slowing down on spending because more of their spending is going on rent and housing. they still say in every generation there's about 50% more of a safety net, more in savings than they had safety n than they had pre-pandemic and that tells you it's a healthy consumer >> this is one of the mistakes in the fed's forecast. the forecast basically didn't worry about what we call a demand shock, that people want to spend more, when, in fact, people have had all these pent-up savings, and furthermore, they just couldn't go out i remember as soon as i -- i was spending nothing, and then i got my shots, my vaccines, and then i started spending again we're big goodies in my household. eating out is a great central pleasure in life, but we couldn't do it, and in fact, we had a lot of pent-up demand. so, strong blealance sheet, pent-up demand the fed missed that.

i don't think they're going to miss it now. the issue is they've got to just keep being tough unfortunately, that's life nobody likes to say no to their child. nobody likes to raise interest rates, but sometimes you got to do both. >> rick, thank you hope you get to eat out tonight, this weekend >> i do too. >> taco bell coming up, what to watch ahead of the friday morning opening bell on wall street. take a look at futures right now before we go 59 points, dow looks like it would open up lower on nasdaq up 46 points. s&p 500 up about 3 points. we're coming right back. father's day is almost here, and dick's sporting goods has gifts for every dad. like golf clubs from taylormade, callaway,

titleist, and ping. and coolers and drinkware from yeti. find the perfect gift for every dad at dick's and dicks.com new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today.

u.s. household wealth hitting its highest level in a year in the first quarter of 2023, elevated by a strong stock market americans' net worth rose to nearly $149 trillion that's according to the federal reserve's quarterly report on u.s. financial accounts. americans saw the value of their stock holdings increase by about $2.4 trillion, offsetting a $600 billion dedplien real estate holdings. despite that increase, americans' net worth is still below the recent high point of

nearly $153 trillion that was recorded in early 2022 >> in just over a half hour now until the opening bell on wall street joining us now is julie biel, portfolio manager at kayne anderson rudnick julie, would you say that you have participated as much as you would have liked in what we now know in hindsight was a new bull market in the s&p? >> yeah, i mean, you know, i think as investors who are long-term focused, we always stay fully invested in the market, and we try not to predict the macro, because it is so darn difficult to participate -- to predict, but you know, what we haven't done is try to chase any of this a.i. frenzy it's really hard to understand where it's going from here it's bizarre to me, if you think about how people talk about their technology and what the opportunity is, if you listen to

the sam altman and microsoft, they're saying, we have this amazing technology we don't really know what it's going to be. it's like that metaphor. you are building the plane while flying it, except we're building the plane while flying it, but we don't know if it's a plane. it might be a blender. that's the challenge of a.i. we don't really know what it is, and we don't know how to regulate it, and i think that's also going to be a challenge for it >> and you think that the whole a.i. frenzy, for lack of a better word, that's part -- that partly explains why the s&p has managed to get to 4,300, which is far and away probably higher than most wall street analysts really predicted this soon >> i think it's a big surprise, right? but if you think about how narrow this rally has been, and if you think about looking just at fundamentals on earnings, if you take away that kind of top eight tech business, we're still down mid to high single digit in

earnings, so we're in a earnings recession for a lot of these businesses they're not correlated, which is unusual for, you know, recessions typically, but i think that really makes it hard to feel confident that this rally has sticking power if it's so narrow. >> do you think, at this point, julie, that there are -- there are going to be really clearly delineated winners and losers for how we come out of this most recent, i don't know, worst bear market since 1948? will it be the same leadership if we are coming out of it or new leadership >> i think absolutely you're going to see a divergence, and i don't even think it's by sector. i think it's at the level of companies, and so i think it's actually going to benefit your stock pickers where we're not just being driven by narrative, but we're actually being driven by earnings. if you just look at retail, the divergence we're seeing at retailers, even at the same income level, so you have dollar

tree reporting strong traffic, dollar general reporting weak traffic, it really tells you that execution is really critical and the economy really benefitted from broad stimulation, and now it's really a function of how well are you executing. fundamentals start to matter more and more as we go on. >> do you, at this point, julie, think the fed will raise again in the next 12 months? do you think they're done? >> you know, i think, look, for june, i think they've preordered the pause souffle. we're not going to see a rate increase based on their commentary, but i don't think july is off the table, and i think there are real challenges. they're very much handcuffed to the labor market data, and labor market data is really conflicting. you can make a narrative for recession or expansion based on whatever survey or bls report you want that's the challenge, and i think that makes it really hard for them to know exactly the strength of the labor market, and that's what they've kind of handcuffed themselves to

>> the economy is in good shape, average shape, or looking at the cusp of a recession? >> i think it's really mixed i think you have full sectors of the economy that are absolutely feeling a bear market recession, and you have sectors that are actually seeing nice expansion so, i think you really, really depends on the long-term drivers. i think it's best to be positioned, diversified across the economy, because it's hard to know exactly what sectors are going to take off, but you have to own quality businesses, particularly, i think, it's really important to be thoughtful about how much leverage each business you own has because it's going to continue -- i believe the fed when they say that rates are going to be higher for longer. >> very good all right, we're going to end it there, julie thank you. enjoy the weekend. don't think about all these things unless you have, you know, something you have to turn in on monday but i don't recommend it i don't think i'm going to think -- i might, though i can't help it. >> skies are looking clearer i think we got other things to

entertain us >> you mean the markets? >> no, i mean outside. >> i thought you meant a metaphor >> it's friday have a great weekend let's take a look at what's been happening with the futures dow futures are still off by about 47 s&p up by 4. the nasdaq up by close to 50 that does it for us today. join us next week. look up, everybody bye-bye. time for "squawk on the street." ♪ good friday 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 a mixed premarket as the debate this morning shifts as to whether we're in a new bull. s&p, 20% off the october lows today, b of a declares the new bull market has legs our road map begins with the return of the bull, the s&p, as we said, highest close of the year, up 20% from that october low. plus tesla's rally, it is rolling on stocks now up more than 100%