the market debut moves as much as 117% during the session yesterday. the doj probing the deal with the pga tour and liv golf overc competition it is all anti-trust it is friday, june 16th, 2023. "squawk box" begins right now. good morning welcome to ""squawk box" here o cnbc we are live from the nasdaq market site in times square. it is friday i'm becky quick along with joe kernen and andrew ross sorkin. you will see green arrows.

these are mild dow up 27. nasdaq indicated up 18 and s&p up 8 the s&p 500 and nasdaq up 1.2% each up, up, up is what we continue to see if you have been taking a look at treasury yields, it looks like the 10-year treasury is yielding 3.73% 2-year treasury at 4.68% all of the concern heading into the week with cpi and ppi and what we hear from the federal reserve. markets have done nothing but go up crude ioil prices climbing o oov over $70 a barrel. signaling the potential for higher energy demand from china. that is damp ening prices to ths

point. and bitcoin prices this morning. blackrock is taking the first step to launch a spot bitcoin etf. filing an application with the s.e.c. to launch the trust it would allow easy access to get exposure to cryptocurrency coinbase is the bitcoin custodian. blackrock has a partnership with coinbase the s.e.c. resisted allowing a spot etf in the u.s. it is in a battle with grayscale. a very interesting turn of events given views of bitcoin as long as he had them. >> grayscale has been trying to

do this. now blackrock. blackrock has a better chance, i guess. it is more well known. and some of the same concerns the regulators have had about a spot etf. >> you can't control or regulate the underlining asset, it doesn't matter if you control the proxy for it which is what this is. >> you have to think it is a positive sign for crypto you had blackrock decide to do that is not moving everything in south korea the last couple days have something to do with it. not able to -- certain things weren't running smoothly wit the bitcoin assets >> this may have been in the market there was an article in coinbase of th coinbase

coindesk it looked like blackrock was doing this what is the phrase >> fiat and they use bitcoin they are not stopping. >> the market reaction is looking at this saying there is an end in sight. if it hasn't come already, you see it soon. i don't know if you heard larry summers. >> i don't need to hear him. four 7 5 points and now two 25. you can see it >> larry summers point was he doesn't understand the mixed messaging. you move it up and we raise rates. he can see both sides of the argument why waitand pause. he doesn't understand why you say you will raise your core

expectations, but not raise rates right now. >> i saw an article someone saying they were wrong about inflation. what was he saying about it? >> yesterday >> no. furman mentor and mentee. really stride dnt about that. take a used car sale increases of 35% out you have a core that is not out of control i've come to the decision and -- it is against my philosophy. inflation is due to the pandemic and reopening. we are probably headed back to what was normal for years. i like to say all of the spending and fed at zero and the biden administration -- >> now you put it on what?

>> supply issues >> the pent-up demand? >> a combination of the two? >> that's part of it the hardcore libertarian will say too many p dollars chasing o few goods. i don't think it is the '70s >> it would have been the '70s if it just happened here it happened everywhere >> why would yesterday be the busiest day since before the pandemic it's june. a three-day weekend. >> nobody works on fridays anymore. here we are. >> a lot of them it's summer. i get it people want to go. people want to go. things -- my crappy suite in rocky mount, north carolina was

$200 last year it is $450 this year it is free breakfast. >> what is the core inflation? >> they don't have a cough screen on the free breakfast it's not really -- you eat from those? >> we do when we're on the road with the kids. yes. >> someone said they don't change the tongs ever. >> that's not true they have to wash them >> would you eat at on buffets? >> i have. >> in new jersey >> i can't remember i have yes, i have. >> you live to tell? >> do you drink out of the glasses in the hotel >> no, never they never wash those. paper or plastic or bring your own bottle >> they change the sheets. maybe. they don't change that other thing. >> you don't sleep on that part. we're missing every story. department of justice

anti-trust division informed the pga tour it will review the organization proposed merger with liv golf. the saudi-funded league. >> i put this in a low not for the anti-trust piece you still have to get the rest of the board which was blindsided by this >> and the players. >> some players have to vote on it this is, to me -- the only thing to me they agreed on and we will see if they do it is they are withdrawing the lawsuit against each other >> we'll talk about it yesterday at lf.a. country club the pga says we are confident all stakeholders learn more about how the pga tour will lead the venture, they will understand how it benefits our players and fans and sport and protecting the american institution of golf. a source tells cnbc that the doj interest would be an extension

of the pre-existing investigation and not be unusual for the u.s. antitrust authorities to review the profile. golf fans are reviewing comments about the merger after the announcement here is yassir, the governor of the saudi public investment fund, who is the chairman of the combined golf entity he is speaking to david faber on the day the announcement was made >> the idea is to keep everything, but strategically all aligned. the idea we have instead of competing, we will complement. to look for additional venues. that is where the pif innvestmet will kick in we will be creating or acquiring or doing new things to grow the game of golf

>> to talk more about the golf issue is george pinyne. he will join us later in the show >> there is an element where when you come out publicly and say the reason we are doing the deal is effectively to end this competition. that is prima facia evidence on tape that is how it works >> i'm thinking who will be harmed competitively i think everyone will benefit. >> the players >> the players look at the guys that went all that will -- the pif is big. big. i think the journeymen will do better did you see -- >> how is it the pga puts out a press release sg.

>> i have children i'm busy >> once all of the stakeholders understand and our board and some of our players don't understand >> there will be guys, obviously -- >> i don't know they worked out the details. >> phil got at least 100 it was rumored rory said no i'll stand up for what i believe. >> i think that is the pga putting a press release saying and you read it. once everyone understands and you get it, it will be fabulous. i don't think at the top of the pga that they are all in agreement this is what they want. >> when it was announced with the framework that was nebulous. what are the chances i said schaffele. you don't shoot 62 at lfl.a.

country club the greens were receptive. it is a hard course. a couple of par 3s that are 250 yards. brooks koepka was 1 over he was even for the rest it is early. rickie fowler had four birdies in a row the u.s. open, you want the last day and hopefully 3 under. it has been worse. three or four guys are in the red. it is great. it is great watching it. it's cool because you see all of l.a. it's right there it is right next you see it on the 1st hole beverly hilton you aim for the "b" in beverly hilton great course very hollywood you love hollywood

>> apparently you do, too. coming up, cava shares soaring as much as 117% in the public debut and later, we talk to representative ro khanna about what is happening in congress. you are watching "squawk box" on cnbc >> announcer: this cnbc program is sponsored by truist wealth. where meaningful relationships happen 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.

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welcome back to "squawk

box. shares of cava jumped 117% yesterday. it opened at $42 it closed at $45 it was the top performing company valued above $5 billion. >> it opens the rest of the market everybody has been waiting to see what happens when you see the pop above pricing expectations a lot of people will be trying the head of the nyse yesterday as it was opening. you think you will get other calls? we are already getting other calls. phone is already ringing >> the company and a great restaurant chain is still a money losing restaurant. look at sweet green. i'm not putting this --

>> is it sweet green or chipotle >> a lot of companies have gone public and flew. >> i'm glad i understand it is not like a.i it is food people will keep going out that is one thing we know post pandemic we missed that so much we have a new appreciation for it i guess i understand adobe shares rising. a lot of people are talking about how important the number would be $16. it is a $500 stock company raised full year profit and guidance on optimism that a.i. features will increase demand for the software. the company is adding a.i. features throughout its products check the market cap $225 billion speaking of a.i., microsoft shares hit a record high with

the discussion with the technology chief and cfo which provided specifics about the impact of a.i. on microsoft and its earnings the next generation a.i. business will be the fastest growing $10 billion business in our history. following that event, jpmorgan chase analysts lifted price target from $315 to $350 hey, thanks. 348 to 350 taking a big swing microsoft announced a partnership with mercedes to introduc0,000 vehicles through the voice assistant. the hey, mercedes, voice as assi

assistant. >> i wonder how that works chatgpt at the moment is not in real-time. it must be asking -- >> stephanie might know. >> it must be a separate a.i asking a map service to tell it something. >> stephanie link is chief investment officer at hightower. i was reading your notes i thought about you after i read your notes i thought how happy you must be that you are mostly a bottom's up person. how would you feel if your business was s&p targets and raising them and lowering them i'm not going to mention names you watch the show you see how many times we heard 3,200 on the s&p you know how many said no, not now for the past three or four or five months

what do they do? what wdo they feel like? one guy from stifel was confident. i said don't you know about these things no, no, no only i know. he's 30. look where we are now. 4,425. you haven't had one way or the other. you say i buy u.p.s. here or there. you come up with the ideas and you don't have to get involved in the other stuff you have been friendly toward the market overall i would not have been a bear. >> no, definitely not a bear or raging bull. i thought would would stay ifn trading range. i think the reason we are rallying and why yesterday was powerful, joe, is because we are slowly checking the boxes of all of the concerns and we're getting resolution

debt ceiling, bank crisis and the fed. with the pause and on the other side with the dot plot going higher and powell kind of being hawkish to some degree because of inflation we got all that. the point is on the fed, you are in the ninth inning. whether they raise one or would more times from here, we don't know in 6 months or 12 months, we are not talking about the fed raising rates. i don't know if we are talking about the fed cutting, but not raising. that is all good we have to watch the fundamentals of the economy. it has been okay yesterday, retail sales were impressive housing has rebounded. o auto supply chains are getting through. the regional manufacturing data points coming out suggest pmi is bottoming. i'll not give you a target on

the s&p because that's not what i do of i do think all of these things bode well for earnings. everything was negative the last several quarters and now we are reversing that that's a good thing. i can find stocks i want to buy. >> you won't give an s&p target. i didn't bring up the nasdaq what is that up? anybody who missed that? they're in a pickle. how do you say buy now and the market is humbling for everyone. no doubt about it. i don't know how at this point any of the people say okay i guess you have to come out and say it i missed 35% in the nasdaq i was wrong. i missed something that is what you have to do. i would think. do you just hang on and hope for -- i don't know what you hope for a crash or something

stephanie, commercial real estate is a looming -- maybe not a duration risk story any more in the financial sector for what blows up how much could commercial real estate blow up the financial sector is that big enough component >> wells fargo was at a conference last week and talked about for them and exposure is 10% of their book. commercial real estate they are the less of the bad you will see the other regionals with more exposure wi what we are seeing with the the valuations, there are concerns not everybody has properties and not everybody has 10% of their book some have 20% or 25% that is something we all watch and worry about. we know regulators are watching

30 banks right now and just keeping an eye on things to see how things resolve that is a concern, joe it really is i think that at least from the bigger banks, they are more diversified and they are getting bigger look at brian moynahan if the regulators would let him buy a smaller bank, he would do it the bigger are getting bigger. that is why i don't worry. they represent a big faction of the overall market >> you are buying things today >> well, i like u.p.s., as you mentioned. the stock fell 10% on the quarter last quarter i didn't own it then that is when i started buying it i know it will be noisy in the next couple months because of the teamsters contract it could cost $1 billion as they renegotiate.

i think the bad news is priced in of in i like the new management. they are focused on cost cutting and returning capital. valuation is 16 times and traded 7.6 times. it will be rocky, but i'm legging in slowly. i'm fascinated with wendy's and what they are doing with a.i. and drive-thru they will launch that in june. overall, they are returning cash to shareholders. 500 million buy back they are expanding drive-thru and curbside business. i like that one, too >> thanks, steph i have a good memory barry has been good with piper i an the poapologize to barry.

when we come back, we talk about labor tension in the united states in a variety of industries and response from the white house. and google is taking action against a fake review scam details ahead. "squawk box" will be right back. you're a rock star. you are a rock star. no more calling co-workers rock stars. look, it's great that you use workday to transform your business. but it still doesn't make you a rock star. so unless you work with an actual rock star. hi, i'm ozwald. hello ozwald. pam, you are a rock- i wasn't going to say it. ♪♪ ♪ old school wisdom, with a passion for what's possible. that's what you get from the morgan stanley client experience. you get listening more than talking, and a personalized plan

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car designers can shape a piece of clay into a piece of art. so why don't they? at nissan, things are different. nissan knows what thrill looks like. because they design it into every car they make. now to the labor tension in america as writers and journalists strikes in several industries kayla tausche is joining us with the white house response ka kayla, the president has called himself the most labor friendly president in history >> reporter: he is, becky. many unions agree. we saw the resolution of the standoff with the west coast ports and their workers. that deal was brokered using what the white house called the secret weapon.

the former deputy and acting labor secretary to broker that deal after several weeks the white house is working overtime now to get julie su to the secretary role with the senior officials holding a war room call and listing senators on her behalf. president biden said the work with the ports should ex-pedite herconfirmation. some 300,000 u.p.s. drivers are expected to authorize a trying to -- strike today that could happen on august 1st. a contract with the united auto workers expires on september 14th those negotiations expected to intensify next month for the white house, intervention is seen as something of a last resort with cabinet secretaries urging

partners to stay at the table. here is how seth harris put it at the national economic council. >> dialogue with the white house council office they said they did not want direct negotiations or labor disputes because they simply didn't want the president to seem to be trying to influence the work of the nlrb or involved in back and forth fights with individual companies or individual unions. >> reporter: the administration wants the independent agencies like the nlrb to remain independent. the administration has to balance that with averting any economic slowdown or stoppage. another senior official i spoke to said package deliveries and car production is not viewed as critical as railroads. closing those last fall would have ground the economy to the

halt which is why they worked around the clock to reach the deal beck becky, any strike is not good, but not dire consequences like last fall. >> railroads and ports and add to the list the unite the airlines pilots looking to vote to authorize a strike. those are the types of things i can understand why the white house would not want to get involved because you are not going to want to see pilots, let's say, walk out on strike and shut things down for transportation in america. you are not going to be able to necessarily say you are the most friendly labor union president ever if you are forcing these guys to go back off the strike lines. i'm sure that is part of the reason the railroads and others cause a headache for the white house. >> reporter: right you will not be seen as labor friendly if you are taking the

side of the economycompany to se to go back to work and accept what the company is asking you and what you are standing up for. why are so many strikes now? more in 2022 and 2021 and more in 2021 than the year previous of th what does it say about the discontent about the worker? i put that question to harris who ran labor relations for a time he said that is the nature of the good economy that is a good sign. it is what happens when unemployment is as low as it is and workers feel they can strike to get what they want. it is at what cost and how long. >> kayla, thank you. kayla tausche. coming up, bud light losing its crown as the top selling u.s. beer. we will talk about the so-called "woke" backlash and the tightrope companies edne to walk

to avoid alienating customers. we'll be right back. >> announcer: executive edge is sponsored by at&t business at&t 5g is fast, reliable and secure hat. 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. man, i feel good. could be the food i'm eating. no artificials. or these toys that get my mind right. ♪ or maybe it's petco, keeping me healthy for less money. wait, what's money? better quality pet care for less human money. [tweet]

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welcome back to "squawk box. bud light dethroned as the top crown in america dylan mulvaney prompting a boycott since posting an ad on instagram. shares of ab-inbev have fallen since the close yesterday. it is not only the big company facing a backlash. target facing backlash with the trans friendly clothing. stock has fallen 12% since they pulled the lgbtq+ merchandise amid the safety. joining us to discuss the war over the "woke" impact on the bottom line. brad landers here. good morning to both of you. >> good morning. >> you are here.

i'll start with you. i think there were a lot of companies, including bud light and target who thought they were doing the right thing both for the consumers or for the country or just more broadly here they are in this place now where there has been such a remarkable backlash from consumers. it has been organic. i wonder as somebody who has been in the place who pushed for a lot of social progressive issues and how you feel about it >> look, you expect broadening your appeal and appealing to a wider array of people to say to lgbtq+, you are welcome here and that would broaden the customer base that is the vision of america. >> you also have a fiduciary duty to pensioners you have a situation where it may not be true what you said. >> look, pension investing is

different from selling customer goods. pension fiduciary is thinking about decades to come because teachers and cops will be retiring and i have to pay pensions i need a long-term strategy. that's what i do. >> do you think this is a long-term issue or a blip in american culture >> i hope it's a blip. that's a different set of questions. when i say long-term risk, i think the long-term risk to the pension portfolio. >> jimmy >> good morning. >> good morning. i imagine you are on the other side of this than where brad stands i think they did it with at least with good intentions i don't think they were trying to create controversy. here they are in what they major think is a pickle. they are getting pressure not just from consumers, but the other piece is pressure from the

investment community >> sure. here is the way i look at it i grew up in the restaurant business for 30 years. my family is still in it i can't divorce myself from the passion i grew up in i was at the restaurant the other day and talking to my brothers we were talking shop we feed everybody. i'm in the customer service business everybody is a customer. i know this. bud light was our number one selling beer in the restaurant it had a big place with 800 seats. in a week, we sold six servings. the customers are walking away from it. i remember my college roommate told me. he said, jimmy, never make a bad grade when you are in college because you will be digging yourself out of the hole the rest of the time you are there this is what is happening. in-bev and budweiser are digging out of a hole. it will be painful for a long

time they treated their customers like they were idiots. they forgot who their customer was was. at the end of the day, i'm a trustee over pensions. if you create the resources that takes care of the retired firefighter that left new york and decided to settle in the villages because they left the tax hell hole up in that state, this is where they have peace of mind that retirement funds are there. again, poor decision by ma mana management heads should roll. no excuse what in-bev did. i look at my route driver o route drivers work for family owned distributorships they are committed to the company for 20 years now the number one product and when they make the store delivery is no longer selling.

they are having trouble pivoting the customers to something else because of what happened with modela and coors light and miller ligte taking over the marketplace. >> would you advocate for heads to roll? >> at in-bev, if you have a bad grade in college and are you not doing well you will see a lot of thriving what i don't understand is why go attack disney and attack the largest employer in your state with the idea that politicizing the economy is a good idea florida is showing it is not true new york is looking beautiful this morning our economy is doing well. crime is lower here than it is in florida i'll take the decisions that we're making >> a lot of people are politicizing the economy started -- >> i have the biggest employer in the state

>> depending on what you believe, both sides want to use the economy to further cultural war. >> i disagree with that. >> you don't think it is -- >> taking climate risk seriously because it is a long-term risk to the portfolio that is what i would ask desantis of t what is a bigger threat? fossil fuels or rising temperatures or mickey mouse >> talk to china and india >> this is my question how many insurers have gone belly up in florida in the last two years? >> here is what we have -- >> the answer is ten ten insurance companies have gone belly up in florida because climate risk is hurting. >> we have an obligation to firemen. >> let's let jimmy respond. >> we had to have two special sessions of the legislature last

year to close the legal loopholes existing in florida statute. florida generated 7% of all insurance claims nationwide. we generated 70% of all litigation we were a judicial hellhole for the united states. we have loopholes and law firms that were printing lawsuits off xerox machines it wasn't about servicing the consumer it was suing and settling and getting a threat of going to court to get a settlement. we closed those loopholes. let me finish. when i talked to lloyds of london and chubb they said, jimmy, we can model for climate change in your state we cannot model for the litigation environment you've got got. they threw the towel in. they said i'll move my capital where it can be protected. >> i don't want to go down the

insurance rabbit hole. i have two questions one for jimmy. jimmy, the question around disney you are a fiduciary and you care about the state and economics about the state and the economics of disney and its ability to pay taxes and benefits it provides to the employees at disney. why the social issues matter to you and should they? >> so, disney, you have to remember, we have term limits in florida. the legislature over 50 years created a special district >> i understand that it is also clear that the governor did this as direct retribution. on tape, he said it over and over again you may disagree with the policy in place we can debate that on its merits the problem is nobody is debating on its pmerits in part because what created this conundrum was the governor

saying something specific about how unhappy he was about the social policies at that company. >> i think people that have carve-outs will lose the carve-outs s carve-outs they brought attention the fact they had a carve-out if you say governor desantis retaliated on the position after the bill was signed, we are going to finger point on that all day long disney doesn't have a desantis problem. disney has a disney problem. okay they should not have engaged the way they should because they brought attention that i've got special privileges that nobody else in the state has. that creates jealousy and that becomes a need for fairness. >> we're out of time i'm going to -- 20 seconds for you. how is it possible and elon musk said this or tweeted about this.

how is it possible that phillip morris has a higher esg rating than tesla is that a mockery of the concept? >> people do esg differently we don't buy esg funds look at our program. we outperform florida the last three years. now we're the fourth largest retirement system. >> tesla is doing more and better things for the planet than phillip morris? >> we have a big tesla investment we focus on risk and climate risk is financial risk costs are growing in florida of the -- florida >> we are over time. thank you. >> great to be with you. >> take care coming up, ceos courting china in person. china. talk about a hot button issue. we will talk about what companies want from china and what beijing wants in return next mportant thing you c

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bill gates is the latest high profile businessman to visit china. a litany of american executives have visited the company in recent months trying to recalibrate relations with u.s. business for more we want to bring in jim mcgregor, greater china chairman and, jim, other business men have been going there in recent months, but this is the first person from the united states, from a business background, who met with president xi. what does that tell you, especially some of the commentary that xi made afterwards >> well, it shows that they are trying to have a bridge with the american people because things are so off kilter with the governments. look, gates went there on global health with the gates foundation and they talked about global health he was involved in making a donation to a drug discovery center i mean, that's a good thing if

we're connected on global health remember we just had a pandemic where it would have been nice to have better communications, not that china was very cooperative at that time but i think china's in a very weak position right now. so there is more bluster coming out of hem their economy is in real trouble. and they need engagement so, i think we got to just keep moving ahead and have our companies derisk and pull back on things that could be threatening to our tech leadership, but keep the commercial lane open because the market is that important. >> you said things are very bad between the governments at this point. that's probably the case but you do have blinken visiting and you've got yellen saying a lot of things lately like decoupling would be a big mistake. she's derisking, like you did. but decoupling seems to be a particularly painful word from the chinese perspective. is there a movement afoot for these two governments to actually try and mend fences

>> i think there is very much so remember, we got the g-20 coming up in india, in september, and then in november we have got apec in san francisco where i think the chinese government would like to be able to have xi there and be meeting with biden, et cetera. and so i think everybody's trying to settle things down a bit, despite some of the rhetoric coming out of beijing i think we got to -- look, we have to do it. this is a competition between systems, a competition economically and in tech and we got to be pushing on that competition. we got to be talking to -- we talked to the russians during the worst times in the cold war. this is a new type of cold war >> we talked to the russians during the cold war, but we didn't have the same sort of economic partnerships. we didn't have the same sort of economic co-dependence, we didn't have companies from america that had set up operations in china to such an extent and we didn't have russian software companies that were

collecting data on americans at the same time. i mean, this is a much trickier situation and there are serious concerns that have been raised about security not just from -- from people who actually understand and who have seen the secret data that goes back and forth who have seen how these operations work. should we take those concerns and threats seriously and how do you continue to operate in an economic cooperation when you know the other side might be trying to game the system or spy back and forth, not that spying is unusual or new, but we know an awful lot about what they have tried to do recently. >> absolutely. i mean, all of the hacking that has gone and the technology theft and the force technology transfers, those are real and serious and we have to be aware of it. no business should be pandering to china no business should be doing business in china that could threaten our tech leadership we have to unwind certain things we do in china, but we also have

to keep -- we have to stay in that market because it is that important. if you want a global leadership and many businesses, and there is a lot of business we do in china that is just normal business, whether it is retail, or clothing or god knows what, that can keep going. and i think we need that and actually china needs it. they need foreign investment now more than ever because their economy is in real trouble so it is complicated yes, it is complicated but it is not black or white like, let's pull out tomorrow. we pull out tomorrow, the rest of the world doesn't agree with us on our view of china in many ways >> jim, thank you very much, jim mcgregor when we come back, stocks on the move ahead of the opening bell adobe getting an ai-related boost. we have the details afr e brk. ea teth this is cynthia suarez,

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good morning futures pointing to a higher open as wall street looks toward a winning week we will break down what's moving markets. chinese ev makers gaining

traction in one of the most lucrative markets for electric vehicles, europe the names you need to watch and what it means for vehiclemakers right here in the united states. that's straight ahead. and the justice department telling the pga it will reveal its deal with saudi-funded liv golf what is at risk for the sport and the money behind the deal as the second hour of "squawk box" begins right now good morning and welcome back to "squawk box" on cnbc live at the nasdaq market site in times square. take a look at u.s. equity futures at this hour we got a little -- well, about off six points now on the dow. we're getting closer to lunch. s&p 500 basically marginally down nasdaq up 13 points. treasuries right now, treasury

yields on the ten-year, 3.725. two-year, move around to see it, 4.684. we want to show bitcoin? it is interesting. no it hasn't moved, but you would have thought it wouldn't be big news black rock deciding they're going to make an application for an etf, a bitcoin etf. we'll see whether that succeeds. frank holland with a look at this morning's premarket movers. you haven't done this in a while, frank we're honored to have you. >> happy friday, joe, becky, andrew great to see you i'm honored to be here earningings ings mover, adobe. shares of adobe crossed $500 a share mark the stock is up nearly 50% since may. see in the big upside move here, all of it over adobe's recent ai push the ceo also meeting with big media companies including comcast owned sky and disney to

discuss custom models for outlets to use adobe's generative ai for images for their purposes of creating content. chip news this morning as well micron, micron reportedly closing in on a deal to commit at least $1 billion to setting up a new chip packaging factory in india according to bloomberg, announcement on that pivot away from china could come as soon as next week. intel will also invest more than $4 billion in a new chip factory in poland as part of its overall plan to expand chip capacity on the continent. upside moves here. micron up 2.5% intel up half a percent. broader movements in the sector, nvidia up 1.5% and fast casual making a big pop. mediterranean restaurant chain cava with a very impressive market debut on the new york stock exchange yesterday the stock closed up 100%, rose as much as 117% intraday the restaurant company plans to use the proceeds from its ipo for new location openings.

shares are up 2.5% right now and a lot of thought is that cava's performance, the ipo performance can inspire other restaurants to go public we're talking names like panera bread and bogata chow. >> we'll see you later, i think. look forward to it major indexes finishing yesterday's session, more than 1% higher. marking the sixth straight day of gains for the s&p 500 and the nasdaq the s&p 500 now at its longest winning streak since november of 2021 joining us right now is sarah house, who is senior economist at wells fargo's corporate and investment bank and greg branch, managing partner at veritas financial group and cnbc contributor. welcome, both of you great to see you >> great to be here. >> i don't think i've ever sat in studio with you before, greg. >> i'm here for you guys to pummel me in person. >> no, no. >> we have been talking this morning about this unbelievable continued run for the markets.

s&p 500, dow, especially the nasdaq, but just what we have seen over time defying any of the concerns that have been thrown out time and time again you have not been bullish at the beginning part of this year. do you look now and say, okay, it is time to pivot because you talk about the fed pivot, is that time to also pivot from a market perspective >> not at this juncture. i don't really believe the fed has pivoted. i think they paused for good reason they're trying to estimate how much of the work they have to do versus how much of the work the systems is going to do organically. we know liquidity is pulled out of the system at the bank level. we know that from channel checks, banks aren't lending as much as they used to and at rates they used to so the fed is keeping a watchful eye on that, keeping a watchful eye to see if there is any other systematic risk in the financial system, which i do believe there are. but, if you want to get to 2% inflation, their stated goal, we're not close to that yet. we are at double that rate

core has grown by 30 to 40 basis points month over month since october. i think jerome said it best, he said the measures that they have taken thus far hasn't had a meaningful impact in terms of getting them where they want to go as long as that's the case, i see further fed action i see another 100 basis points, a terminal rate over 6%, consensus isn't forecasting that consensus has 10% growth in the fourth quarter so until i see consensus, aligned with the realistic macro scenario that the fed is painting, the acts they have to take, until i see us through the other hiccups in store for us with the financial system, i have to remain bearish. >> how hard is it to maintain that conviction as the markets keep going up and what do you hear back from people? >> let's say i'm not everyone's favorite commentator right now and admittingly, just like in july, august of last year, i missed this rally. but my outlook tends to be more long-term, 6 to 12 months and very macro-based while i wasn't necessarily happy

to miss the rally, the difference here is that we have been paid to kind of wait out in the short end of the curve, 5% yield. it hasn't been as painful as last year, even though longer in duration that the markets have been rising. >> why are you -- what do you think inflation is going to be so stubborn. as an economist, do you feel the same way >> it will bepretty sticky as we move forward. i think there are some disinflationary pressures that are mounting and i think we'll see more meaningful improvement here in the second half of the year but i think there is a big difference from getting to 4.7% on core pce, to we're estimating 3.7 at the end of this year down to 2%. we think that last percentage point is -- i think implicitly they'll be comfortable once they get below maybe not quite 3, but 2.5% if that means staving off a recession or mitigating the damage, i think they can live with that for a time but i don't think they're going to give up on 2% over a more prolonged period. >> rates this year, next year.

>> so we see lower rates probably by the middle of 2024, just because inflation will be coming down significantly enough that if they're not cutting at least a little bit, they're going to be passively tightening where the u.s. economy will be slowing meaningfully and entering a recession early in 2024. >> what would it take for you to change your mind how big of a pullback, a reversion before you say, okay, this is something i feel better about. it sounds like you're expecting some serious damage in the financial sector >> i am. a pullback will only be part of it i do expect that we will revisit the october lows i don't see this as very different than what we experienced in july and august and that the rally is driven a lot on sentimental factors the relief we're through the bank issues or so we think the relief we're through the debt ceiling issues, the relief that the fed has at least paused here so in addition to a pullback, the fed pretty clearly took interest rate cuts off the table, unequivocally and

conclusively in their language and so i'm waiting for consensus to catch up with that. we have some downward revisions in store for the back half of this year. i don't see any plausible way we can get to 10% growth in the fourth quarter so taking those rate cuts off the table, i think it is going to force consensus to re-evaluate that 10% growth, to re-evaluate the earnings. >> the speed with which the fed tries to get to 2% it could be -- i have a view once it gets to 3%, they may say i got a lot of time. i can take my time and that could be a very long time >> i think that's part of what got us into this mess to be honest with you, andrew. so, very many -- well, a few of us, i think in 2021 were saying the fed needs to raise rates now, lest we end up ina hyperinflationary environment 2022 that's what happened and though it is vogue now to say the fed was behind the curve, very few people were actually saying that in 2021

so the fact that they waited to address the issue exacerbated the issue and i think the same, if we try and draw this out instead of cutting out the dead cells here, then it is going to make the repair that much more lengthy and probably that much more painful. >> it is hard to believe we're not in this mess but there are people who think we're not in a mess and the fed has successfully walked a fine line, economy still good, inflation's coming down, maybe we don't need to induce higher unemployment, maybe they successfully soft landed but that could never happen. i agree with you on that that sounds impossible. >> is inflation coming down? >> a lot of the core inflation was due to used car prices if you back them out, we got -- but, still, though, so you think things are fundamentally different from that disinflationary period we had for how long was it, five years? we had ten years, how long did

japan have a -- is it really different now? >> i think it is a bit different. let me first quibble with the notion that inflation is coming down at this point i second what sarah said we picked the easy fruit, four or five months ago and now we're stuck in this 4% to 5% range with core inflation rising in a narrow band of 30 to 40 basis points month after month since october. the headline number is a bit of a moisnomer because it is t triggered by the energy decrease, beyond the fed's control. when you take out energy and factor in the base effect, because we're now lapping that 8.6% and 9.1%, that's what really drove that headline decrease i don't know if we can call that inflation is still coming down i think we have not seen any disinflation at all right now, quite frankly. >> what is your twitter handle, greg >> no twitter. only linkedin, my friend. >> well, you got to really open yourself up. >> to more hate mail

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phil lebeau joins us from london to talk about the push into one of the most lucrative markets for ev companies "squawk box"ilbeig bk. wl rhtac our heritage is ingrained in our skin. and even when we metamorphosize into our new evolved form, we carry that spirit with us. because you can take alfa romeo out of italy. but you best believe, you can't take the italy out of an alfa romeo. power e*trade's easy-to-use tools, like dynamic charting and risk-reward analysis help make trading feel effortless. and its customizable scans with social sentiment help you find and unlock opportunities in the market. e*trade from morgan stanley.

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>> reporter: good morning, andrew chinese automakers have long thought that europe would be the perfect place for them to expand their sales and that's what they have been doing. take a look at the market share by destination of the auto brands this doesn't mean that these are being all exported from these areas' regions but the chinese ones, largely exported from china, and they now have the third highest market share in europe and, by the way, they're growing very quickly some of these are historic europe brands now owned by chinese automakers mg most notable here polestar, owned by volvo and we're also seeing the other traditional chinese automakers, ev players like byd coming into this market. and this is what worries european automakers. >> the european auto manufacturers are worried about this onslaught of chinese automakers who will enter the

markets with affordable, good quality vehicles what's the answer to that? they're not prepared they want to buy time. and that's why we see the top ceos saying, whoa, not so fast, maybe we need to put quotas in place, delay this thing because we're not ready for this chinese invasion >> reporter: and basically they were caught flat-footed in europe big difference with the united states, where the i.r.a. act is essentially said, okay, look, if you're going to get these incentives for ev sales, which we believe will stoke the market, we want the batteries made in the u.s., final manufacturing to take place in the u.s. the chinese are not yet ready to enter the u.s. in a big way. that will lewill likely change r this decade. what we're seeing here in europe will be replicated in some fashion in the united states because the chinese believe they have the lower cost vehicles, they now believe that they have the quality of evs that can compete with vehicles from

europe or from the united states, and it is only a matter of time until we see the chinese really try to make a push into the u.s. we're already seeing it here and they are coming strong here in europe guys, back to you. what is the tariff situation like >> well, that's the problem. they don't have the quotas in place here so there are some tariffs that go into effect in terms of vehicles that are exported from china into europe. it depends where they're being sent to. here in london, different than if you were going into the heart of central europe. so, there are some tariffs that are in place here. but, look, they're coming in at such a low price point, if there are tariffs put in place, these are attractive vehicles for people saying i want to go electric, it is being pushed much harder here, overall going electric is being pushed much harder here than in the united states and unlike in the united states, you see a lot of mass market, middle of the road offerings coming to the market here and

that's why the chinese are having so much success >> okay. phil, great to see you what a great shot. i hope you're having fun over there. >> yeah. >> the london eye just right over there >> mm-hmm. will do. >> yeah. when we come back, women's soccer scoring the largest institutional investment ever made in a professional women's sports franchise u.s. national teams legend b brandi chastain and brady stewart will join us to talk about the investment next. "squawk box" will be right back. time now for today's aflac trivia question. locomotion number one became the world's first steam locomotive to carry passengers on a public line in what country the answer when cnbc's "squawk box" continues now there's a hole in your defense; look at the size of that- gaaaaaaaaaaaap!!! is that a goat?!

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from darlington to stockton at a speed of 15 miles per hour in 1825 >> welcome back to "squawk box." newly formed women's soccer team scoring the largest investment ever made in a women's sports franchise, pouring $125 million into the league. joining us now is one of the co-founders of bay fc, brandi chastain, a bay fc co-founder, and bay fc ceo brady stewart good morning to you. i think -- it has been a remarkable sort of ride that you guys have begun on and the journey, but i start with you, brady. where does this all go when you think of this as a business and as an investment >> yeah, absolutely. what i'm focused on is building bay fc to be an iconic team here in the bay area. but also building it into an

iconic global franchise. >> and what does that mean, what does that entail, where are you in that journey? >> we're just getting started. we're incredibly fortunate as you mentioned, sixth street made the largest investment in women's sports team in our team putting $125 million into the team and where we go is we're trying to harness the incredible interest and momentum that we have for women's sports today. the opening weekend attendance was up 50% we know that when the games are on tv, they get the same viewership as the mls games. we're trying to harness this and bring it to life >> brandi, what is your sense of just fan engagement, and not just fan engagement, but the issue of sponsorship, how important it is not just for -- to get tv licensing deals, but sponsors out there really pushing this in a way that they -- i would argue they have,

but they probably need to do a lot more >> well, if you look historically over the growth of women's soccer, starting in 1996 and specifically 1999, the explosion of women's soccer has been exponential the thing that we have always known is that women's soccer and women's sports has the richest, deepest, most talented well out there that has been untapped so, for sponsors, big brands, if they -- if they're looking to -- for the new frontier, it is women and women in sports, so for me, i've been on this crusade for, i would say, nearly five decades but the growth of women's soccer just recently with nwsl just proves we're going on a trajectory that is like a rocket ship and so, again if you're a big business and you want to have your brands associated with something that is spectacular, it is women's soccer

and it is bay fc, it is the right resources, the right people, has great leadership, we have a great business structure, we have amazing demographics here in the bay. we're nine counties connected by nine bridges, and we are -- we have a winning mentality that is about championships and that's what we want to produce and provide. >> there has long been big debates as you know about pay, the pay disparity between men and women, on the field and off. what is the going rate right now in terms of what pay looks like? >> you know what, i'm going to defer to brady because she's our leader and she'll know more about that than i do it is increasing, that i know that i'm very proud about, having been with the u.s. women's national team from the jump start in the late '80s. we have made huge strides. u.s. soccer has been a part of the crusade to have pay equity

but i will let brady speak to the nwsl and our team. >> yeah, i mean, i think -- the way to think about it is soccer is the most popular sport in the globe. and our women athletes are the best soccer athletes in the world. and so when we look at that and look at the trajectory of building this into an iconic brand, building it into a global franchise, where we want to take this is obviously that we are rewarding our athletes >> and, but in terms of the -- i mean, look, we're all watching this, this contract that messi is getting in florida. >> pretty amazing. >> a remarkable situation, right. what do you think you have to do to get from where you are today to that? is that something you think is in your sights >> well, i mean, messi is an absolute global superstar. so, yes, that is the dream we want to create global superstars in women's sports as

well when we look at it, we know media consumption of women's sports is an absolute all time high 365 million people tuned in to watch the european women's championship we know that we saw sponsorship partnership revenue up over 20% last year here in the u.s. for the nwsl you see that rising tide and we absolutely would love to bring a messi effect to women's soccer in the u.s. >> i think on top of that, we here in the bay have historically and traditionally been associated with women's soccer and we have had championships, we have 40% of the women's national team have come from our region we are in the development process, you know. we want our players to grow. not only to be great here, but to be great when they leave us and go out into the world. so we are -- we are in an incubator for great ideation and

innovation and we have seen that with other global brands and we plan on doing the same >> brandi and brady, we appreciate it. we wish you a lot of luck. >> thank you >> thanks. talk to you soon sports, one form or another. still to come, the department of justice reviewing the pga tour's planned merger with liv over antitrust concerns we'll talk what it means for the deal with george pine. nothing to do with hockey, but he's here anyway stay here. you're watching "squawk box" and this is cnbc my advice is to tap into the power and uniqueness of your identity that is the undeniable essence of you and will in fact help fuel your career growth. early in my career, i was a queer disabled woman in tech it wasn't until i brought all the aspects of who i was into work that i hit my stride. don't shy away from bringing

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crypto platforms are under increased scrutiny after the s.e.c. filed two lawsuits last week against binance and coinbase was that only last week? now our next guest in his latest note says that more retail crypto traders are actually moving to robinhood from coinbase joining us right now is dan dolev, managing director and senior analyst of fintech equity research dan wh dan, what leads you to that conclusion >> good morning, becky thank you for having me on the show this is actually fact-based research and we have got enough data points on both coinbase and robinhood for the month of april to trangiangulate to he isee th relative share between the two that share must be coming down and that's a fact. there is literally no other way for you to basically triangulate into the data without the share

coming down. so, that's why we feel very, very strong about that shared loss that we published yesterday. >> but the 65/35 shows a much larger share for coinbase? >> yes, they are the -- they are the legacy sort of like household name, right? our call is the fact that the s.e.c. is going after them, they raised prices for small ticket items that people are worried and we think that 65 going to 62, maybe to the 50s and people are walking to robinhood and we feel strong about this call. >> how much of this is, you think, because of the s.e.c.'s action how much is because higher prices, raising prices >> i think it is a little bit of both so, you know, we were actually shocked to see they raised prices on small ticket items that's why the yield jumped dramatically, from 150 to 160. that's the only reason why robinhood did not follow suit, they kept the spreads the same

and kudos to them. i think at 50, i think people are worried about the s.e.c. i think people are worried about the -- those tokens or the off coins becoming crypto asset securities and i think that's the reason they're moving away from the platform. >> look at the shares, coinbase's shares have come down substantially the last several weeks while robinhood's have risen. does that change the valuation play on this or do you think as a result of the research, you would rather own robinhood >> 100%. robinhood is much more diversified. we spent some time with the founder. i think they're a much better platform crypto is a low double digit percent of revenue they're the real quintessential sing later when it comes to young people trading, where as coinbase will basically fade over time. there is nothing beyond trading of those coins i expect we have a $27 price

target i can see it coming. >> if coinbase were to switch its strategy and bring prices back down, would that change your mind? >> no. good question. i think if they did that, then they're going to lose even more money. the reason the stock traded up in q1 is because they said they'll cut costs and they raised it. i think what would change our mind is if they actually went into more of what robinhood is doing. so if they actually diversified away from bitcoin and alt coin and safety and into equities, into options, that would be -- that would make them more here to stay, i would say, for the next, you know, for the next two, three, four years that would be a game changer as long as they become a one trick pony of crypto trading, i think it is going to fade. >> dan, thanks for your time have a good weekend. >> thank you coming up on the other side of this break, with all three

indexes on track for weekly gains, is this run in the stock part of an ai bubble or a sign of stability jon fortt is going to break that down for us next you can get the best of "squawk box" in our daily podcast. follow squawk pod on your favorite podcast app and listen anytime. we're comingig bk. rhtac

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yesterday. and the nasdaq above 13750, taking both the levels that those indices haven't seen since the spring of 2022 a lot of reasons, maybe because of the ai bubble or maybe because the economy is showing signs of stability even in the face of higher rates jon fortt is here to weigh in. we really need to know not just two different things. we need to know. >> i'll tell you at the end of this one it is clearly, joe, artificial intelligence bubble that has taken us to these heights. the s&p 500 is up 16% in 2023, the nasdaq is up twice as much without a doubt the poster child of that run is nvidia, which is basically triple i'm not taking anything away from nvidia itself, the only company that took billions of dollars of revenue upside from ai this past earnings season does the rest of the s&p and the nasdaq deserve to have this much of a run-up? no look at the other stocks besides

nvidia four of them mentioned ed ai moe than 6500 times combined at least 35% in 2023, leading this year's big surges nvidia aside, it is too hard to model how ai might act that's what's doing it. >> all right really okay thanks, jon. >> yeah. >> good to see you >> got another -- >> on the other hand, joe, an ai bubble is not the main thing driving the markets gains. it is cooling inflation that debt ceiling deal functioning regional banks, fed pause, resilient consumer and several other indications that that looming economic disaster we fear for months might never

come now, now more than any other moment since the market started really tumbling in 2022, we can imagine a somewhat normal post covid world where throngs of people go to concerts without masks on, vladimir putin has annexed all eastern europe and a mediterranean restaurant chain can find enough workers where it can stage an ipo with a straight face and see shares double in the first day. chatgpt, a startup, shaking investors free of the dumb idea that tech isn't worth investing in anymore unless the company is already profitable the market is mainly because of signs of stability and intelligence, nothing artificial. >> i would like to ask chatgpt to write an -- >> i've asked. i've asked. >> this exact subject. have ai argue whether it is a reason for the rally or whether there is other reasons.

>> it is not that -- >> self-interested would it say, yeah, because of me >> the training doesn't have the latest numbers from the market indices and i would say it is a little less entertaining >> and then i see here, maybe you wrote this, the moment of truth coming for the ai segment, i would ask it in a different way. is it going to go the route or route of meta? because meta -- >> no, it won't. >> it's going to be real >> the metaverse is not a thing. i'm arguing that i'm very clear i might argue both sides, but, no, the metaverse not really a thing. ai is real i think -- >> metaverse is not a thing or will never be a thing? >> it probably will never be a thing. because mes vtaverse, an actual place you live in, as opposed to a layer over your -- that's different. different interface, sure. that will happen >> the interface, you're accepting of an interface, but what is the difference between the interface piece and the --

>> the metaverse vision was we're going to work and live and play in this place with this thing blocking our eyes. that's not the metaverse that's a digital layer over life. >> tony starks stuff >> i think it is like wall-e somebody mentioned wall-e, remember the big figured people sitting in the chairs with the -- with the taco food iv they're playing on ai. >> i think the metaverse maybe misunderstood then because i actually think about it much more as the first version. i thought of it as an interface as a world you could be in for an hour or two or three and that would be it. wasn't like you lived there. it was taken to this extreme idea that -- >> kind of the ready player one, you're actually in a different place as opposed to i can do, you know, some computer work here and have a layer over

regular life and still talk to you guys while i got this thing. that's different it feels, though, like it is time for me to plug the on the other hand newsletter. i'll do that with the qr code on the screen which will make it easier for you to sign up or sign in, gets you easy access to the weekly poll on linkedin where you can weigh in, let me know which side you agree with more the results from last week, can vision pros become apple's top selling wearable by revenue? this is split. two-thirds of people said absolutely not, it will not be the most popular wearable. thinking the apple watch is still going to win out >> earbuds all right, good job. good topic just the s&p in general, not whether it is ai that is doing

it, we have analysts from both sides every day. >> a lot of people saw that coming tom lee on "overtime" yesterday afternoon taking a little victory lap. >> i bet he was, yeah. it is weird. people say it is easy to be -- he doesn't buy into all this -- the market over time goes up and up and up. it is weird you keep your job as a -- >> you get to be dr. doom. >> they all get to stay forever. meredith whitney is back >> where was she >> no, she's -- she's genuinely back she's now writing ai -- >> using chatgpt. >> analysis anke tround the ban business, financials again >> i don't know. she said -- i don't know something was going to explode and it never happened. coming up, doj antitrust division announcing it is going to review the pga tour's proposed merger with liv golf.

could this put the deal in jeopardy what will it mean for the golf business we'll tee off on that next and here are the futures you can see right now, we're somehow still green after yesterday's big surprising gains following what people said was a surprise of the fed still hiking entllmit. we'll be right back.

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merger with liv over antitrust concerns in a statement, the pga tour says we're confident that once all stakeholders learn more about how the pga tour will lead this new invention, they will understand how it benefits our players, fans and sports while protecting the american institution of the day after, george, you were very -- what word would i call it? you -- you really didn't talk much about the morality involved or all the overhang from all the fighting and the lawsuits. you just talked about what the future could look like for golf players and fans and it was a bright future you were painting, sort of notwithstanding all of the other stuff. do you still feel that way and still think it's going to happen >> well, i think it's good for the game of golf, meaning it's going to make golf available for more fans, the players are going to make more money, more money will be invested in the game of golf the wild card, quite frankly, is saudi arabia and, you know, where that goes

and predicting where that goes is really hard to predict. >> george, andy competitive. so we had this discussion earlier. i'm trying to figure out -- the justice department was already looking at the pga tour for a variety of reasons for anti-competitive behavior. now they're going to look at this merger from an anti-competitive viewpoint who gets harmed if this does go forward, if they find out a way to do it and i don't know if that actually happens. it's sketchy, this whole framework right now for how it works, but who would be harmed >> it's hard to say who would be harmed really because the players are going to make more money. there will be more events around the world. it's hard to say who is going to be harmed. now look, in europe there's what concept called the super league. it was a good concept, had great capital backing, and the political process stopped that from happening you have a department of justice

investigation, two congressional inquiry, the charitable status of the pga tour in play. how this comes out will depend on how the deal is structured and the executive leadership navigating this process, which again saudi arabia to me creates a wildcard that are doesn't exist in typical transactions. not surprising the government is looking at two competitors merging, but you'd like to think you could navigate your way through that if you're the tour and liv golf >> and not surprising that the saudis, if they see, no matter how far you're talking where hydrocarbons don't power the planet, they've got to diversify. are they smart i can't think of anything better than sports. it's like, yeah, you can be e.r. but it's not the same as live. you can run commercials. i almost said subscribed to peacock the other day, i thought

i had it free because of the ads but to watch the early rounds of the u.s. open, they wanted me to join or something. so i will, i think so you get the subscribers, you get advertisers. sports is the only -- and then up got betting i mean, there's no headwinds for sports >> you're nailing it, joe. i mean, sports is being globalized through technology so it makes a ton of sense that golf and or sports are globalized and it creates new business opportunities for saudi arabia, it's going to be a good investment it's going to be good for their country and they're going to have a seat at global golf for 30 years for them it's a good deal. for the tour, they're accessing capital to really roll up global golf it will be better for the players and better for the fans. again, there's a lot of positives. obviously the negative, the participants and the political process is going to determine how that falls >> george, but i think part of the question is there's the

regulatory question and one of the things we've raised now multiple types is you can watch even the interview when the deal first came out, it effectively said we're doing this to end the fighting and to create they didn't say less competition but basically less competition on its face when a regulator hears that that's primia facia evidence an they were pretty explicit about that a, i remain sort of baffled about that piece of it the other piece of it that i don't understand is there doesn't seem to be much more of a deal -- this could be described as a settlement around a lawsuit. the rest of the merger was never approved by the board. clearly not the players that are on the board there's a lot of -- there's a

lot of things that have to happen that i'm not sure the public really understands for this to get going and to actually be a deal of any sort >> well, there are a lot of off ramps for the deal one, there's the regulation, the political process. through the deal itself, it hasn't clearly been exposed. but as i understand it, andrew, they're really going to merge commercial assets, okay, and that will create efficiencies in value. and remember, golf is won regionally it takes risk capital to globalize it as someone who is in the business, i understand how putting the commercial access together works i understand how the capital is needed to build global golf and i also understand there are a lot of things that can be created that aren't created by putting these two things together t at the end of the deal, there's a lot of details and constituents and today it's

players. tomorrow it could be the different entities there was a lot of collateral damage in terms of communication to stake holders to say it's a lock would be incorrect. there are pitfalls and challenges >> george, one last question we all talk about how sports is this sort of special, unique content product and that it's only going to -- it's only going up from here there's even more and more money to be made from it i'm curious about how you think about regional sports networks there is a big question actually as to whether the model actually is broken, whether actually there's been too much money put into the space i'm thinking of what happened to the padres you probably know with that team, the mlb effectively had to take over a contract and create their own effectively streaming service and local regional network, the equivalent of so how clear is it to you?

>> on video sports networks are being disrupted. 15 years from now, 20 years from now, it's going to be a very different revenue stream, direct to consumer streaming. no question about it, andrew and for some of these clubs, depending on the clubs, it's $80 million to $100 million a year and that money is not going to get replaced if it goes to the streaming model. as joe points out, gambling, technology, those are all areas that could augment that revenue stream but even that will be a 10 to 15-year transition the regional networks are under assault. that revenue stream is going to diminish and there's going to be a transition no question. >> thanks very much, george. we have a lot more coming up on "squawk box. congressman mike gallagher will join us to talk u.s. and china

relations. how they could have a huge impact on small businesses when "squawk" come back and boundless curiosity. we dissect the market from every angle. helping to build portfolios that redefine what's possible. because investing isn't one size fits all. allspring. purposefully divergent. narrator: the man with the troublesome hemorrhoid

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good morning, the s&p 5 hund the nasdaq are on pace for their best week in month coverage straight ahead. meanwhile, a tasty debut for a restaurant chain, cava, that stock soaring. and as the u.s. secretary of state heads to china, bill gates is already there and with the country's president. what could each trip mean?

we'll take you live to beijing as the final hour of "squawk box" begins right now. good morning and welcome back to "squawk box" here on cnbc live from the nasdaq market site in times square i'm joe kernen along with becky quick and andrew ross sorkin a 400 gain yesterday and nasdaq was a lagard early on yesterday but joining the party as the session went on and the s&p also tradin trading at levels we haven't seen in years, actually, for the s&p in holding on to those gains up fractionally. tres treasury, the higher yield moderated, we got the 10-year,

and the 2-year now below .7 >> shares in cava showing gains in the free market, doubling to close at $44 a share after opening at 22. cava's ipo price of $22 was already above the initial expectations it is now the top performing ipo this year for companies that are valued above half a billion dollars. this morning up another 2.2% asset management giant black rock filing for a bit coin exchange traded fund that would allow investors to easily access the crypto market. coin base is listed as the bitcoin custodian for blackrock's product. the fcc has resisted allowing bitcoin.

and virgin galactic says it is aiming to launch its commercial space tourism service later this month. the company says it's looking a the a launch window between june 27th and 30th. it wants to follow that up with another flight in august and monthly commercial flights after that virgin galactic has about 800 passengers waiting to take a trip not on the list. not here >> i don't want to go on the yacht. i definitely don't want to go on this >> i went on it once i saturday right in the very center like this wanting it to be over. >> it's imperceptible you're even moving. >> it's not the movement it's where i am. it's when you're on one side knowing you're not even at the top and you got to wait that for and slowly -- i don't like heights. i don't. microsoft co-founder bill gates sitting down with china's

president xi jinping eunice yun joins us now with beijing. good morning >> she tells bill gates -- it shows how unusual the meeting in this heightened period between the u.s. and china this is the highest profile attempt by the chinese leadership to repair badly damaged relations with the international business community, especially with corporate america. in the meeting, president xi highlighted what he believed beijing needed from the economic ties with the u.s., expressing the need for technology cooperation. but this, of course, attempt runs counter to what we're

seeing washington want, which is to curb chinese access to u.s. technology now, gates' visit comes only days ahead of secretary of state antony blinken's arrival that would make him the highest official to visit china since the pandemic the expectation is he'll be meeting with his chinese counterpart and possibly with president xi the expectation, though, is being managed pretty low by any side and any sort of outcome, though the fact that he's coming at all seems to be an attempt to fall the very tense relationship >> we had a discussion about globalization and whether it's over i don't know we need that express that the

horse has left the barn or whatever there's no way we can try to onshore some stuff, but the actual planet being one place for goods and services and trade, that's never going back in the bottle ever, eunice so we got to get along somehow i don't know i wish china would be a little less strident about -- and obvious about some of its goals for world domination can't we be frenemies? >> well, i think the chinese would agree with you on many levels they would say that there shouldn't be any decoupling. they really don't lukeike that term they also don't like the term derisking, which is the u.s.'s, s as well as a lot of western nations' new buzz word that the chinese think is another way of saying decoupling. of course the u.s. would say that isn't the case, like what

you had said, too, they don't think it's possible really to decouple i think from the chinese perspective, they would say that the fact that and in fact in chinese state media they've been saying this today, the fact that someone like bill gates would come here really shows how important china is to the business community in the united states one -- just kind of giving you a little background and, joe, i know you know this as well, a very common strategy, though, that we've seen over years and years by the chinese leadership is to really look for the connection with the american business community in a way to try to influence u.s. policy overall when it comes to china so that's something that we have been seeing. and continues. although it's unclear exactly whether or not this meeting is going to have much of an impact. >> yeah, those guys have no values or principles really when money's involved i just don't want to be lulled

into a false sense of security and then, you know, another balloon comes by or more farmland next to all of our defense assets you know, it's a little bit frightening. when you say the chinese, we're talking about the ccp. no one's got anything against the chinese people it's just the regime so you've got to worry about how -- is that forever they're telling me we've got to go >> that's your distinction but the chinese government would say that the ccp is the chinese people is the voice for the 1.4 billion people though i don't know necessarily if the chinese people would agree. >> okay. all right, eunice, all good points. >> our next guest says the u.n. is trapped in a cycle of zombie engagement with beijing. china keeps doing pretty much whatever it wants. joining me is republican

congressman mike gallagher, he chairs the select committee on china in the house what do you think the answer is, to disengage >> no, i think it is first of all to dramatically enhance across the taiwan straits. perhaps the most difficult is to get about this business of selectively decoupling i say selectively decoupiling s that at a minimum we can start to reduce the leverage the chinese communist has over us. what i'm worried about, like a zombie in a horror moving rising from a grave is we're going back to this idea that we can engage with china and induce them to act responsibly but instead we see rising aggression across the board and our fear of provoking xi jinping leads us to shelf the defensive measures that we need

to take. beyond the fact that engagement as a core pillar of our strategy has not worked for 30 years, the problem with the zombie engagement in my opinion is that the china communist party advances their anti-american agenda when filtered, that olive branch we constantly extend becomes an invitation to aggression we need to be smart, we need to be strong but can't get lulled back into this idea that economic engagement will somehow induce the ccc to become a responsible stake holder >> but congressman, what ultimately do you want is it a fear they are going to do ultimately do something demonstrably damaging to the united states? is this an issue about democracy and human rights that you think we're supposed to be succeeding and we're not? what is it >> well, in the near term, my concern, as i alluded to at the

beginning, is the risk of a conflict look at ukraine to be reminded of the fact that as the old saying goes, deterrence is hard but war is hell. a conflict with china over taiwan, even one in which the free world is able to stop them from dislodgement -- over the long term my concern is for democracy, it's for freedom, it's for our ability to say what we wangt without fear of an economic retaliation by china. it's increasing economic coercion across the board. it's the effect of a totalitarian regime and that model being exported around the world. it's their ambition for global domination in a world in which china sets the rules as opposed to the united states is a very dark world that we do not want to live in >> how concerned, though, are

you that right now the risk for american businesses to increased their business and potential business opportunities in china is being limited not by china but by their fear of the government and the united states >> i don't agree with the premise. look at what china's just done in recent months they raided the prc offices of three separate american firms, they targeted micron in an effort to destroy their china business, we buffed a communication channel and i think we have to realize for years now it is the chinese communist party which has been trying to decouple from us, from the rules-based international order. what is baiting china in 2025, a very intense and sophisticated strategy for decoupling. an author, first wasn't yourself

off critical dependency, make sure foreign adversaries candidate spread their propaganda, don't let them buy up technology or infrastructure like ports the author of that was xi jinping. that is what he is pursuing. ours is a defensive strategy against their aggression >> when you see bill gates sitting with the president of china, do you look at him and say what a mistake, he's some kind of entrepreneurial interest rateo -- traitor? i'm thinking jamie dimon, tim cook at apple has a huge business in china. what do you make of the work they're doing and the positions they're taking >> first of all, i would not and have not questioned anybody's loyalty. on balance i think some people are waking up. all i'm asking is that they

recognize a few things one, that it would make sense for us to stop funding our own destruction, that american capital continuing to flow into china, particularly where it's invested in chinese military companies or technology companies being used to perpetrate a genocide, that's bad for us funding our own destruction. second, let's take off the golden blindfolds when it comes to doing business with china and at least recognize the risk. i recognize that supply chains rebalancing is not going to happen overnight what are the risks of your assets being taken let's have an honest conversation about that so we can protect americans from their exposure and finally, yes, this is where we in the united states need to figure a few difficult things out and we need to talk to each other and come up with a coherent, lasting framework. how do we reclaim our economic independence in key areas? we're experimenting with

semiconductor technology right now. unless we have aggressive regulatory reform, it may not work what's the solution when it comes to advanced pharmaceutical ingredients and when it comes to energetics figuring out -- i can see you cannot derisk or selectively decouple without simultaneously increasing your engagement and economic and technological partnership with other countries, allies, partners and people that don't fit neatly within the free world. that two-part process is critical to our success across the world. >> whoa. this guy, there's a lot going on you're in the house, congressman? >> i'm too young to be in the senate they wouldn't let he in to the early bird special >> where'd you go to school? got any notes? >> he won the debate club.

that we know >> no doubt. >> i'm just a kid from northeast wisconsin. it's wisconsin common sense. that's all i'm asking for. >> very good congressman, we appreciate you joining us this morning. have a great weekend >> thank you very much when we come back, we're going to chart the s&p 500's rise to its highest level in who are than a year with chris verone and why is a congressman from silicon valley heading across the country to talk job losses representative ro khana will explain when he joins us in a few minutes. you're watching "squawk box" and t this is cnbc ( ♪♪ ) ( ♪♪ ) ( ♪♪ ) constant contact delivers the marketing tools

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many. the s&p 5 and nasdaq seeing their highest numbers in 14 months and the dow is less than a percent off its two-week high. and joining us, the head of

technical and macro research we'll stock with the stock market we want to talk bonds also is this a -- is there more to come or are we at the high end of a range in your view? >> this entire move has come against the backdrop of an inverted curve we went back and looked what were the largest rallies look with an inverted yield curve 1979 you get about a 30% s&p rally and the curve was inverted the entire time. and mid '06 and '07, 30% rally with an inverted curve if we put 30% on the october lows, gets you about 4,500 we trade 4425 today. my suspicion is we're pushing up against the higher end of the range. at the end of the day the trend is the trend and that's just history and you have to respect the price momentum i would watch two things number one, when we've seen markets falter in the past, it's

with leadership changes. this has been very pro cyclical leadership if something was going to change, that would have to be the knife's edge and there's no evidence of that yet here. >> the reason that i said we'll start with stocks is because in terms of yields, you think we're going to break out to higher yields and i'm trying to decide whether that would mean the economy is in pretty good shape, which could be good for stocks, or it could mean that the doubt that the bond market has had with the fed's resolve, maybe it's been wrong and the fed does stay tighter for longer >> it's a unique back drop where you've had softening in the economic back drop yet you have yields up. it's particularly true in the u.k. and recently in germany as well had you 10-years here chopped for eight or nine months the move we've seen in u.k. over

the last ten weeks has been explosive and the yield in germany has been explosive as well i think if something is going to upset this market, my suspicion is it would be what upset it last year, yields running away look at 10-year yields, they've broken out, that i think will be the big test for the second half of the year. this whole move in equities has been against the back drop of a very, very tranquil yield environment. if that starts to change, your antenna has to go up. >> what is causing yields to go up >> i think the -- >> fundamentally, not technically or do you even care? do you even have a reason? >> so intellectually i have a reason i'm not sure i should let it impact my thinking i'm in the business of price and volume and momentum. >> i understand. everything's so perverse in the financial world that, you know, bad times sometimes end up with good effects on stock prices it's so messed up the way it works. but i would think higher yields

would indicate that we have a pretty good economy. whenever we see a flight to safety -- a bank fails, you see the bonds rally. >> i think that's where this relationship between yields and leadership is going to be important. yield up with pro-cyclical leadership -- >> it's no recession >> we start to get worried when it's yields up and defensive leadership starts to creep in. that happened in second half of '18 into '19 and in '07. why is it different than yields? that's what we need to be on guard for? >> that usually means what >> the market anticipating that yields will break something. in 2018, summer of '07, we saw it in '87 in the run-up to the crash there. >> what if inversion narrows and

goes away? >> i think that would be the most bearish thing we can survive in this purgatory of inverted curve. we've seen big rallies with inverted curves. i think we got to be very careful what we wish for here. >> because we think the inverted yield is forecasting -- >> some of the great moves have been with an inverted curve and some of the great bull market moves have been with an inverted curve. this is the 12th consecutive month where the yield curve has been inverted. look at the latter part of the 70s where you had good equity bull markets there let's be a little careful on this idea that inverted curve that it's a problem. that's the message that the economy is changing. it means leave is coming they're cutting eventually >> but they're cutting why >> but at least they're cutting. >> the pause historically has

been bullish the cuts have not. so very fine line there. >> i don't know what the hell to do now thank god i don't have to invest but we do have mortgages to worry about, things like that. so you think we're at the high end of the s&p range but we don't -- do we retest the lows >> it's a long way away. i'd be surprised if we did i think you got to focus on what's the leadership. look at the industrials. >> did trevor tell you to say this market is petering out? >> no. >> when he's on now, he looks scared >> we all try to look at this market as objectively as possible >> do you? he's your boss, though, isn't he >> we have two rules at our shop you doun't fight the tape and yu don't fight the fed. the first is most important, you don't fight the tape particularly when you look at industrials, illinois tool

works, common engines, those are bull market charts you got to respect that until it changes. >> all right, chris verrone, thank you. >> he says the tape is more important than the fed most people think -- >> no, no, if you fight the tape, you're in denial, you know the fed doesn't control it >> meantime, when we come back, goldman sachs and a final chapter. adobe beating second quarter profits and revenue expectations were helped -- it's mind blowing what adobe has managed to do look at what the company ceo told jim cramer last night on "mad money." >> part of the conversation that everybody has associated with this is this going to replace human ingenuity or is it going

to augment human ingenuity i think it's going to make people so much more productive and bring so many more marketing folks and smaller media businesses into the fold in terms of we have this eavecrti idea and now we can use the tools even more easily to create it

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top tech firms are in talk with journalism publishers about using news contents to help training artificial intelligence models google, microsoft, chat and open a.i. have met with news executives to talk about copy right issues sources say it is possible publishers could be paid a subscription-style fee when their content is used to envelope a.i. programs the paper said "the new york times," "guardian" and "news corp" have been involved with the same issues. some have worried if you train all of these artificial intelligence bots to go ahead and figure out all this information that no one will ever pay to go to their web sites ever again, meaning the end of money to produce this news >> i don't know how this really works itself out and why the companies would ever pay except -- this is very cynical -- to buy off the media companies so when a regulatory

fight actually happens, the media companies like to be in bed with the a.i. company. i think most of these regenerative a.i. programs already have as much data as they need. it's sort of a weird negotiation. and this idea of an ongoing subscription seems odd once it's in the system, it's in the system forever >> meantime, gamestop executive speaking at the company shareholder meeting. it happened yesterday. he had harsh words for corporate culture that he says panders to wall street. >> i will speak briefly. my father always told me talk is cheap, actions speak louder than words. my responsibility is making sure gamestop is run by managers who treat company money like their own. in corporate america, the people in charge, the professional

directors and management teams are not aligned with shareholders they are always the recipient of stock grants, however, they rarely purchase company shares with their own savings there's a big difference between as a result, money is wasted, work is delegated and a lot of time is spent managing the short-term expectations and pandering to wall street i like people who roll up their sleeves and do real work people guided by within in corporate america, there's no shortage of overpaid executives, bad capital allegationin and most of the behavior is predictable and reprehensible and it is precisely what creates opportunities. thank you for being a shareholder. >> a little built about listening to a young version of

cal ican they own less than 1% of the stock and here think sit around passing papers back and forth. he said a hundred of them make more than 2 and he then went on to agreed is good but it was mostly accountability to the share olders was what that speech was about >> was that speech based on carl icahn? >> i think it was. remember he wrote a book he was so astute at predicting mergers because he was paying for inside information very good at figures these things out >> a programming note for everybody. cnbc has a documentary, "making

of the people king." check it out on peacock and on youtube. >> coming up, ro khanna will explain why he's traveling to key states thousands of miles from his own district. 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.

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our next guest is getting ready to head out on a tour of states that has seen jobs migrate overseas, he'll include stops in virginia and ohio joining us is silicon valley congressman ro khanna in studio. it's always good to have anyone but particularly you >> it's a low bar. >> what are you doing? can you explain the rationale and some of the specifics? >> since i've been in congress, i've been focused on this idea that we hallowed out our manufacturing base for 40 years we allowed jobs to move offshore, 70,000 factories closed between 2000 and 2010 we need a manufacturing renaissance. we can do that with some of the policies of chips and science,

ira technology and i want to go to some of these factory towns and see if it's making a difference, what's happening in these communities and how do we restore our manufacturing? >> we were just talking about that with unieunice that globalization is here to stay. you can explain what happened to a lot of the jobs based on comparative advantage and what happens in a global economy. you want to reverse that will it be economically productive to not go where you can do things much more cheaply? >> we want to rebalance it during the pandemic we realized we didn't make masks in the united states. we didn't have semiconductors, we didn't have baby aspirin and tylenol. there's a huge opportunity for america to become the workshop of the world again and to

revitalize the factories what we need is a partnership. we need the private sector involved and they need to have the market involved. they need to lead it but here's the reality they can't make the investments in scaling and they can't compete against other countries if they don't have some assistance from the government, the government purchase made in america projects, the government helping finance large ska scale factories. cantonville, north carolina, 900 people work at that paper hill that just shut down. in wisconsin there's a plant making core rugated paper.

>> my son is a moderate. i said you were coming in and i said we have a potential ticket, a ro-joe or a joe-roe. >> if someone is working 40 hours a week, someone should be able to support their family without food stamps but i also believe in innovation and technology in the private sector >> some of the stuff is mutually exclusive to what bernie believes in. >> he's not a capitalist he's a democratic socialist. >> i call myself a democratic capitalist i have a difference of opinion joe, you'll keep me in line when i'm working for you. >> we haven't decided who's on the top of the ticket. that's the problem >> being so far outside your district, looking at things

nationally, is this part of a plan to run for higher office at some point >> no, it's a part of a plan to help make the case for what joe biden's policies are we have had a manufacturing boom in this country but i don't think people are arguing statistics somehow that message is not getting through. i want to go and say is there actually a difference. people who have been laid off a and are all the plant going to columbus and -- >> we had the case on yesterday and trying to make sure there are technology jobs that exist outside of places like silicon valley and new york city but what you're doing is pretty different, though. this is more about. >> we've done both i'm a hunk fan of steve cases. i did a partnership with google tour about bringing new a.i.

jobs, we set them up in al ga. the modern factories are going to require technology jobs yes, they're going to require blue collar jobs as well so in my view it's technology, a.i., data management, that can allow for the productivity advancements that have the modern factories >> you said you were here supporting president biden did you see the governor of your state, gavin newsom with joe hannity where he said he thought that president biden had rolled kevin mccarthy was the phrase, rolled i think he said he cleaned his clock. do you believe that's the case >> i wouldn't characterize it that way i blow the president did the best he could under the circumstance there were aspects didn't like. the fact that you now have the

mountain valley pipeline being green lighted, the fact that 50-year-old women are not going to be able to get food assistance at a time of the slowing down of the economy. i think the president did the best in. >> i couldn't get you to admit on camera that the president said negotiate but now you're glad he did and glad we got this done >> my view is the president should have said treasury go pay. it's a manufactured crisis the previous congresses have said to the pred and i don't think jerome powell would the reason that we did all that was because a bunch of democrats got elected. if republicans don't want to pay for what's already happened, then they need to win some elections is the way that you prevent, if you think the spending is frivolous or too

much, stop the spending before it happens after it happens, it's kind of a moot point >> you just said that the spending was the fault of the democrats? >> i just said that over the past couple of years -- what we just paid for -- >> right >> we paid for all the things we spent over the couple of years are you going to make this i insipid point that trump -- >> but you admit it's insipid? >> democrats under republicans historically as you know deficits have gone up. it's true! >> i don't even have to chime in here >> first hp, that would rise ab. >> steve case is brilliant

you're going to have 25 million new digital jobs in this country. many of them aren't going to require a college degree the a.i. will make it more accessible you don't need to know math and computer programming and steve case is saying don't have all those jobs in silicon valley. >> are you okay with people not come being back to work, people in your district in. >> no, i think there has to be a hybrid, to come back some days and -- >> you can't live in idaho if you have to come back three days a week >> the challenge in my district or north of my district in san francisco, we've got to get some of the crime under control, we've got to get the homelessness under control >> isn't the crime piece a law piece? >> yeah. >> willaw and order piece that's missing in your state? >> i don't know if it's missing in our state but there have to be more consequences if you

break into walgreens the pendulum has someone too far on one side. >> it also means you can't have somebody like a facebook marketplace taking stolen goods and basically fencing the operation and letting people sell things easily there >> no, i think -- >> amazon, facebook, they've all kind of contributed to this by not policing the stuff that they're selling. we just spoke with the home depot ceo this week, he said just that. you can now go online in any of these places and those are things that if they were for sale in a home depot, home depot would be in big trouble. how come they're not responsible for it >> they shouldn't be able to take intellectual property >> no, stolen goods like straight out of home depot and these other places that's why there's organized crime going to these stores. >> there's laws against stealing

cars, we can't chase them anymore. >> we should be enforcing the rule of law. just on sill i con valley, this idea that there's some mass exodus, i want people to come to the valley and talk to folks they're going to be leading the. >> a.i. revolution there are new startups every day in silicon valley. it's a booming chase it's not that there's a mass exodus in silicon valley is a.i. going to help other areas of the country or is all the new concentration of waealt going to remain in silicon valley they can't take your job >> i agree with you. and if we do eventually start learning things, we got to do something with crypto. are you ready to do something

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will talk to -- who joins us with the latest. leslie? >> hey, andrew. regulators are investigating as part of a wider probe into what happened with the downfall of silicon valley bank. filings in early may that quote various government bodies were in touch about them engaging goldman to assist with the capital raise. and folio to goldman. there causing the emergency sale to be scrapped. a securities purchase conducted through investment banking and trading are typically done with an ethical wall to prevent conflicts of interest. the journal reported that investigators are looking into whether that communication wall had been breached by an

improper information. goldman says it is cooperating with these investigations. i am told there is a paper trail that it would not act as an adviser on the cell and it urged svb to hire a third financial adviser . they reported that the s.e.c. and fed are investigating and that justice department has subpoenaed goldman. >> this was inevitable. i remember when we first reported the goldman sachs transition. this is at the same time they were the adviser. maybe this investigation was inevitable. the question i would ask for investors is, why go down this road to begin with? even if you decide in the end that this was above board, are that these various letters are saying, go get your own advisers. we are not helping you. you knew this was going to happen.

the question is, is that cost worth it. right? >> yeah. i think the ultimate question will come down to ultimately the share sale was scrapped. it didn't take place. there weren't any official mandates made because there was no stocks sold as part of it. there are a lot of fine details. there is a lot of gray area that i think will be looked at here. >> leslie, thanks for keeping us up-to-date on this. we will talk more about this i'm sure. meanwhile, ahead on this program, what to watch for the opening bell on wall street. come right back after this. ♪ ♪ 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!!

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a little more than an half hour to go into the opening bell on wall street. talking more about the markets right now. the jon hancock investment management's. emily, we have been on a roll when it comes to the markets. does that make you feel optimistic and feel like the train is surging ahead? or does that make you a little nervous as evaluations go up? >> yeah.

if you are on this market right now, you are probably pretty exhausted. you have seen these across different assets. whether it is ai, looking overseas. you name it. this is plunging to 14. we want to participate in this market for sure. we look at this as a pivot party that is happening right now. a relief on the notion that it is getting close. data is coming in. you can see the big rift on rallies that happen, which is where we are today. we want to be disciplined in the way we participate. we have been thinking about it. we want to be drafting the market right now. people are trying to take the lead here. we are seeing many investors do

this. you want to trail just a little bit behind. do it for the lower data. emphasizing higher-quality stocks, more durability, less risks, the need to tap the capital markets in order to grow. you also might want to think about emphasizing bonds on top of that portfolio. the income in high-quality bombs, not a terrible way to go right now. we are participating, want to think about where the next leg is from here. >> first of all, some stocks that would fit that bill would be what? >> this is an area, it is your poster child for quality.

more durable profitability. we want to be there. we do see that this is also between -- we want to ride the wave of higher quality. again, paving the way. >> when you are talking about bombs, you're talking about corporate bonds? >> yeah, corporate bonds, and even credit spectrum. we are looking at single a as our favorite here. if you do the math, the sites to be a friend. you had the income on top. >> emily, thank you. have a great weekend. >> you too. >> we will take a final check on market before we hand things over. s&p is up another 12 points. nasdaq is up.

right now, it is up 3.75. the two year at 4.7. oil, they have pushed it above $71 a barrel. seven $1.18. folks, that does it for today. have a great weekend, everyone. monday is juneteenth, the market is closed. ♪ ♪ ♪ >> good friday morning and welcome to trenton on the street. it has been a great week, right? it looks like that may continue, but who knows. that is why he had to taste -- stay tuned. it can all change. let's start with the stocks