beijing is firing back i,000 they were get i a along awl together is this the beginning of the shorter days >> stop it not tomorrow today. >> today is the oi official first day of summer. that means winter is right around the corner. "squawk box" begins right now. ♪ good morning, everybody. welcome to "squawk box." we're live at times square i'm becky quick along with joe kernen andrew is off today. the market's going to hear from jay powell he's expected to testify on his semiannual report on monetary

policy always a wait-and-see for investors. take a look and you'll see that the futures are up, but just barely dow futures up by 12 points, s&p futures up by less than 2% nasdaq by less than 2% as well treasury yields, if you want to take a look at what happened the 10-year note right now yielding 3.7%. bitcoin surging back to just under 29,000 29,918 that's the highest level since early march. getting positive news with blackrock filing for an application for what would be the first ever spot bitcoin etf. these are big names. they launched a crypto exchange sort of to fill the void left by -- i don't think they want to be

-- well, ftx i don't think wants to be thrown into that area. earlier i was looking because i knew about obviously the news from blackrock, but then these others if you hit it up and you hit bitcoin, the first story that comes up is a barron's piece that makes sense to me that bitcoin is becoming more of when you say crypto, you're not allowed to say what those coins are called they rhyme, but they're called other types of coins as more and more dominance comes to bitcoin, apparently barron's take, that's bad news for crypto. >> bad news for other crypto. >> maybe it hit a high of, as you can see there, over 60,000, but it's

go gotten down to 25 and change a couple of times in recent weeks and didn't break remember it was as low as 16,000 or 17,000 not that long ago. >> you can see it on the chart. >> yeah. >> now back challenging maybe -- maybe challenging 30,000 we'll see if it gets through. >> meantime shares of fedex lower this morning after the delivery giant provided week guidance for the year aheading the company's arguing inflation and lo interest rate this is the third straight trop in quarterly revenue this is another one of those stories where this is a change in consumer behavior post-pan dechl ing. they were shopping online. we saw a huge advance in the number of packages shipping constantly fedex has laidoff about 29,000 people in terms of the heightening.

mike lintz would be retiring in june there are concerns at u.p.s. where workers could go on strike as early as august 1st other companies are shifting their delivery to fedex, away from u.p.s. >> it's strange. >> weird. >> weird winners, weird losers if you're at home, you're ordering everything for fedex to be delivered but you're not spending money on services. >> that's been the shift and they've had so many delivered to their house. >> there's a big piece about -- you know, taking a shot at blue states that have spent a lot of money. they were flush from capital gains. >> oh, right. >> now -- >> the market -- >> so the one that's killing it is florida not because of

capital gains in the stockmarket. business is moving there because all the blue states when they can, they raise taxes. >> not to mention you kent get on a flight to get down there. >> right florida's killing it,s where a lot of others, new jersey, new york, huge a lot of it has to do with plunges in state revenue because there's no capital gains another effect so the pandemic was an era of capital gains. figure that out. think of the stockmarket and everything el. the stockmarket went from 2,200 to 4,000. president biden referring to china's president xi as a dictator during his speech last night is that a stretch i mean he check almost all of the boxes.

they met with others and beijing firing back saying biden's reference is extremely absurd and irresponsible and amounts to a political provocation. it's true he gets 99.99% of the vote usually, and what he says goes we -- if one of our competitors is allowed to say that joe biden is a wannabe dictator, i think the person got fired for saying that, for butting the chyron on. but -- that might be a stretch obviously, but is this a stretch? i guess we don't want to make value judgments. it's the drn liench you mentioned. two days ale we thought we were

moork forward. >> what was the quote? >> i'm trying to think kwhat was. at the same time blinken was also saying if they were unexpectedly attacked, we would try to help. india's prime minister nir rehn draw modi meeting with several high-profile techs seema mody joining us. good morning. >> good morning. india's prime minister modisetting up possibly an electric vehicle factory an also looking into battery production. it comes as they've tried to diversify a way from china

musk saying, quote, i am confident tesla will be in india and will do so as soon as humanly possible, modi making it clear if musk wants access to the growing consumer base, tesla will need to invest in jobs on the ground. >> if he really cares about india because hi's pushing us to make significant investments in india, which is something we intend to do. >> a number of indian state ministers, i'm told. while the largest factory is outside the u.s., tess las has been expanding to other countries like mexico and jaefrmt becky and joe? >> seema, they were kicking things off with yoga at the u.n., which i thought was the brilliant way to start the day

that's the way we should do it every day. >> looft people don't know yoga actually originated from india and modi is take charge of doing that he does it every morning at 8:00 a.m. he'll be leading with 2,000 people at the u.n then he'll go to dc where he'll have a meeting with president biden and the first lady followed by tomorrow a state dinner, whether there will be a number of ceos who will be p joining him for that dinner. >> all of them very important in china as well when you see elon musk, when you see tim cook, and i think that kind of sets up -- we were talking about the tensions between the united states and china trying to firm up ties with the other major, major country in the region with major population and a huge place that a lot of

businesses have set their sights. >> that seems to be the narrative. as much as they want to prioritize, the need to diversify and find other ways to manufacture is clearly something that's clearly top brow and why so many of these ceos are going to make this dinner happen and brush shoulders with modi tomorrow. >> thank you very much. right now as we head to a break, let's check out shares of tesla. barclays taking it from overrail to two and the questions will remain on ma margins and demand. stock is up 22% year to date we'll have more on the markets and stocks you should be watching for stick around this is "squawk box," and you're watching cnbc. coming out for me at work

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fedex shares reported weaker than expected results jresults. joining us now to take a closer look, is this a trend that we're seeing would you say is fedex a canary in the coal mine where else can we see this >> good morning, joe obviously fedex is telling us something about that quantity of goods purchased by consumers as you guys were talking earlier. we're still seeing the strength of that shift as consumers move from buying stuff to servicing and the demand for services is obviously much greater now

fedex is the canary in the coal mine we've seen it elsewhere too. i think it's a real challenge for fedex. they're going to struggle with this decline they have big physicianed costs. they're trying to retire some of their fleet for aircraft we don't like the cyclical headwinds that they're facing right now. we are concerned about recession and the consumer weakening as their excess savings start to really, you know, wind down as they have been dining or the last several mcdonald's is more resilient or tj marx or lennar. >> why lennar? >> because there's a real strong demand for new homes

they 're purchasing new homes o one step up. there are new families looking to get into their first home you have a real mismatch out there between long-term demand and the supply right now and you're seeing that folks with mortgages in homes don't want to sell them and move because the mortgage rates have jumped so much since they first locked in their financing. that pushes all the demand over to the home builders we saw the numbers out yesterday with new homes being much stronger t stronger than expected a year or so ago if you go back to lennar, would you say it initially sold off on fears of higher rates? but it's counterintuitive to see the moves it's made as rates have moved high sneer that's a

good chart there, joe. it shows you what happened when rates went up. even said, oh, no, this is going to be be baits what happened is buyers recognized, okay, i have to pay on the month so there was this period of time when the builders and buyers sort of backed away and reassessed how much home they could afford and the buyers came back mortgagors were still really high, except we've seen this rebound since the beginning of the year in permits for single-family homes and new starts some of we're seeing the demand come back as potential buyers have re-evaluated what they can afford. we go back to lennar one step up from a first home, it's the right part of the market to be in and there's

years ahead to close that gap. inventories are so low >> people like you should make a lot of money because there's very few binary choices. there's a pandemic selling sell stocks. wait a second. think of all the stocks. the pandemic's owner, you buy all stocks that didn't happen interest rates are rising, sell the homebuilders didn't happen. you really need to think through all of these things, and it's all very nuanced. >> look at tech, joe who would have expected that tech would have taken off when it did back in november. >> right. >> what we're seeing is investors are looking for a place where growth is going to last for some years, and with recession risks ahead of us, i think there's a real focus now on companies that are in markets

that are going to grow for other reasons outside of the cyclical reboundings that investors have latched onto in the past whether it's ai or cloud computing, we liked in individual yea there's years ahead of the expansion of data centers that are going to enable all of the changes the technology it's really expanded and is going to continue to do so. >> i don't remember anyone in january -- and if you saw the chart up, it was pretty convenient i quickly figureds out that that's 36 7. do you know anyone who came on the show and was bullish in january, specifically anything, but about the tech and the

nasdaq, and it ee only a few stocks i get all. that but that's 36% in a yoor. there were flat earnings in the middle of a recession. so nobody knew nobody knew, and the market once again left everyone behind, but not everybody because someone's buying it. it's all very extend i may have to go yoga. if we do yoga at 8:00, that's like the afternoon for us shah some days i do it at 4:00. >> that's like yesterday joann, thank you, joann feeney. when we come back, a house gop retirement fund bill is taking aim at gop investing, "squawk box" will be right back.

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welcome back to "squawk box," everybody. cnbc washington correspondent emily wilkins joins us right now with an exclusive story. emily, good morning. >> good morning. republicans are continuing to attack esg funds, raising concerns that investors could knowingly be making less money if they're invested in environmental, social, and government priorities. andy barr is rolling out plans today. the bill would also ensure that retail investors know when their funds are in esg and what it's costing them i spoke with barr in an exclusive interview. he said that many americans may be blind-sided

>> environmental and social and government investing has become a cancer and a fraud within our capital markets, steering retail investors sometimes unwittingly into a lower performing, less diversified, and higher fee funds. >> barr and other lawmakers are concerned that few americans know how esg impacts their portfolio. a recent gallup poll shows 40% of americans were not familiar with esg investing while only 11% were, and that's roughly the same as a similar poll done two years ago. the legislation wouldn't ban investments in esg, but it would show investors fees in different profits between an es fw focus and would require retirement funds to focus only on maximizing proufbts, you can expect to hear a lot more who plan to focus on the issues in july with plans and bills.

for more on this story, check out cnbc.com. >> that makes sense to me. first of all t confusion when it comes to esg investing, i have to say i don't always know what it means because these companies are not always clear what they're choogz what makes something good governance, environmentally, and socially it's probably a fair point to say we're not going to ban any of this, but we're going to require you show us the fees sew associated with that. >> 11% what have we been doing here for the last -- that's -- that make me sad. >> i understand what it is >> to find it first. >> they haven't heard of it after we've been talking about it i never thought it was great now we know. i've been trying tole dig into this in some of cases philip morris

can get something that's higher than tesla. >> that's ludicrous. >> insane. >> ludicrous i like that report. >> she's only been here a day and she's already figured thing ts out. >> i know. i like that report. >> emily, welcome, it's very good to have you here. >> it's good to be here. thank you. it's going to be good with all the regulations we're expecting and a wide variety of other things >> emily, if we really like you and want you on "squawk box" a lot at 6:00 a.m. -- >> oh, goody, right? >> -- do you have an answer for that >> as long as the coffee in the office remains free, i'm happy to do it. >> i can't guarantee that with court cutting and everything else i don't know you can only hope >> i think we can get the coffee emily, thank you and welcome it's very good to see you. >> thank you so much happy to be here. coming up, derisking versus

decoupling with anthony blinkening back from beijing while president biden referred to president xi as a dictator. yeah, is there a problem we check out the biggest challenges facing businesses in china next and nba chris paul having a hall of fame career on the court, but off the court -- ebb knows this guy from the insurance commercials. he's got some big investment jobs that paid off, and he joins us in the next half hour here's yesterday's winners and losers ♪ >> announcer: winners and losers is sponsored by state street global advisers.

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good morning welcome back to "squawk box"

live from times square there's the futures. we'll take it. it was a big week in terms of gains and a little bit of a pull bac back we're down again. >> you're projecting again. >> i'm not drinking against it's left for young people, which is fine i'm not going to mention other vices, but youth is wasted on the young. >> president biden referred to xi during a speech last night. xi fought back saying his words are extremely absurd and totally irresponsible. joining us is cnbc contributor michelle caruso-cabrera. michelle, good morning. >> good morning, becky. >> i guess you could say, so much for thawing relations.

>> president biden is not wrong. if this derails what's happened thus far, it shows that xi jinping is very thin-skinned it finally was an improvement in relations to have secretary of state blinken to go there and we expect further visits from other members of the cabinet i think the big disappointment was there wasn't a establishment of military conversation and communications, which is very concerning when we're seeing incidents happening in, for example, the taiwan straits with our two militaries ending up in a situation that was confrontational. this is a tradition or custom or something that was steyned back during the you can missile crisis right after to make sure the kremlin and pentagon would always be in a state of communication so we wouldn't have accidents

that's a bit of a problem. >> we've seen prominent ceos invariably make their way to china. does that tell us what's really hatching there >> well, xi jinping has enjoyed showing off all the high-profile business leaders who have bin to china. the fact of the matter is it's not near what everyone expected. goldman sachs, only the most recent wall street bank to lower their growth expectations. the issue is that xi jinping and the chinese communist party have chose on the prioritize security over prosperity. i'm talking about the people's security i'm talking about their security in power and how does that play out? it leads to a very bad busy climate. it means that they decide where

-- how are banks going to distribute loans it's going to go to the companies that the government wants to get the investments, and the way it plays out is when they start attacking and arresting people from these consulting firms that are trying to provide business information back to chinese subsidiaries that in chugdly. they're illegal. add to the farkt you can't get much more growth out of there. it's not clear that he cares about that though. what he cares most about is security and staying in power. >> look. i thought jamie dimon did a pretty masterful job when he was there. he said, yes, i'd like to do business in china. first and foremost i'm an american patriot and i do what's best for my country. he never does anything to side step that.

he was more plain spoken than any of the other ceos. all of them are trying to walk a fine line. jamie dimon came right out and said it. i'm a capitalist and a patriot. >> he said he was a patriot. the rules changed underneath them because they were move toward more free markets, less regulation, less politically directed capital, more free market policies that would lead to more growth that's all changing. and so all the investment bets that they made are questionable at this point, right so they're there, i think, to figure out what is going on to try to send the message that the situation isn't what they expected and doesn't necessarily lead to more growth. and after all that investment, it's got to be very, very frustrating for them to see what's happening both geo politically, din employee

maticly between the u.s. and china and the concerns about taiwan and not getting whey they wanted out of taiwan when it comes to economic growth it's hard from chinese to englash and things get lost in translation. is there a world for dictate eartha's difference, and i don't see what the problem is here would anyone dispute that president xi has total power there are a couple of little details that maybe they'd have an issue with. usually you use force or fraud to keep from gaining political power. intimidation i terror, and fundamental civil liberties, check and employ techniques of

mass propaganda to sustain public support, like saying it's absurd to call me a dictator or it's absurd to say a wuhan lab was the origination of a virus does putin get mad if you call him a dictator they are dictators, both of them, are they not >> yeah, and i would say xi jinping even more so than previous leadership. there used to be factions within the chinese commerce party and we would talk about who are the new people, which factions do they represent, and we always heard there were internal dynamics, with througher there was anymore. with don't hear that anymore he's taking on roles that previous ones had not taken on he's more ought carat ilk than

the people before him, so, no, it's completely correct. >> it's completely correct i'm not saying that we shouldn't engage, and i'm not saying that our ceo shouldn't go over there. kind of the same as having a king domg like the saudi rulers. i mean it's a kingdom and they're not going to, you know, take a vote every time -- sometimes we always try to americanize things and i think they're going to do thins like a rye pub lek. what else? >> absurd and irresponsible. i agree with michelle, getting back to the point. it would be nice if we had military protocols and military lines that were open. >> especially when they -- you know, taiwan's -- >> that may be

we're talking about cuba. >> cuba too. >> he may be using that as leverage we can establish communications as long as we get something. they're concerned about outbound investment controls that we talk about so much. shall see. >> michelle, thank you always good to see you by the the way, a programming note for you am new cbc documentary is talk about chinese americans. we deev deep into the world of espionage and details, what u.s. law enforcement says is china dominating high-toke global industries "china's corporate spy war" at 10:00 p.m. eastern time and pacific right here on cnbc. coming up, tech under fire what the eu's antitrust chief to say about regulations and ai that's next.

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jio ur competition commissioner margrethe vestager is regulating code of conduct for artificial intelligence she joined "worldwide exchange" earlier this morning. >> i think the most strategic choice is not to regulate technology as such but

regulation the use of technology and to only regulate when something fundamental is at stake. so what we're pushing with the u.s. and other global partners is a voluntary code of conduct when it comes to generative ai because the potential is so enormous. >> voltaire for now. if they don't take it, we'll be meeting with them. eu is also all rightedly looking to possibly block adobe's $20 billion deal for digital design company figure madieu coming up, nba star and entrepreneur -- he's a star, an entrepreneur, and an investor, chris paul, he's partnered up with state farm as you've undoubtedly seen, fanatics, and he joins us next

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diving into the world of sports and business, our next guest balances his time on the court with a slew of high-profile partnerships. nba super far and ee olympic athlete chris paul supporting plant-based life i'll ask and

historic black colleges now is sharing his success in his life and business world and basketball in his new member wall "61 life lessons from papa on and off the court" which hits bookstores today chris paul, great to hav >> whatever, whatever. >> i admit, first thing i did, so it is not too short that's not why i'm the worst basketball -- i'm not an a athlete. but everything you've done, are you 6'1" >> depending which day it is, which shoes i decide to wear, but, yeah, maybe 6 feet, 6'1" on a good day. >> what was the very first thing you did, versus on the court to say i'm going to expand my horizons because there might be a life after basketball? >> man, i started asking a lot of questions you realize you don't know what you don't know so, at 19, 20 years old, i

got -- >> way back then >> that's when i came into the nba, you know. you sort of just are thrown into it, you know i'm playing in college, decided to go to the nba and now you get here and you're thrust with money and opportunities, so you're just trying to reach out to mentors and people who will teach you. >> what sometimes happens to great athletes when they're, you know, their playing days are over and they don't have a whole loss necessarily to show for it. you're huge -- you're still playing. >> yeah. >> and have a huge -- almost an empire of chris paul sidekicks, businesses not even side. i think basketball is the side. >> no, basketball is never the side thing but it is funny because i had the opportunity to be the president of the union for eight years and i was on the executive committee for seven years and it has been amazing to see the transformation of our league and to see how our players now are so engaged in all different types of businesses, no matter what it is, whether it is tech,

you got different players that own wine brands, fashion, guys are so much more than just these athletes, you know guys see themselves as their own ceos and businesses as they should. >> does the league help with that in terms of taking people who are so young, coming into so much money, having so many people who i think are probably preying on them at times too, is the league doing more? >> the league helps but also the union. we have amazing union, the mvpa and players are so involved now. there is a group of players who were just in milan, italy, for a week, you know we have different classes and courses and there are a lot of different things out there that guys can use there is resources and the communication in the community of players is really important >> do all your -- you're not just a spokesperson. do you partner up, like, with state farm or how many -- how many -- that's your main one i've seen 100 commercials. >> yeah. you know, it is funny, when i

first came into the nba, when you're young, you're out here doing sort of quote , unquote, endorsement deals. as you get older and start to understand, i want to do partnerships with companies, right, to make sure that, you know, we're both getting out of it what we would like to get out of it and making sure our values are aligned. and so that's why it's the coolest thing with brand jordan and stat farm. we have done so much than just the fun commercials i've been able to do with my kids and i appreciate that. >> why plant-based foods at some point with beyond meat and others what appeals to you? >> for me, i'm 38 now, right so i just went plant-based four years ago and i'm always trying to figure out how i can get better, right, in what i do. i'm out there, especially at the point guard position, playing against a lot of 22 and 23-year-olds so, it started out for basketball, but then transformed into a lifestyle and just trying to educate my family on health and wellness.

>> you had a really solid, i think, family experience growing up which included even your grandfather, right >> yes >> what did he do for you? how did he inspire you >> i'm born and raised in winston-salem, north carolina. my late grandfather had the first black-owned service station in north carolina. so, you know, gas station where you go pump the gas and rotate tires and i wanted to be just like my grandfather. i used to have a red rag and just wanted to be like him and when i was 17 years old, he was murdered by five teenagers and it was the hardest thing for me and the day after his funeral, i scored 61 points in my next game, in my first game in my senior year and he was 61 years old when he died. >> the book is "61." >> yes, sir. >> hairs on my neck -- it was at a robbery, at the gas station? >> yeah, so growing up everyone knew me and my brother, mr.

jones' grandkids everything he did, and it is kind of reflective -- i talk about it in the book how even at church, when you saw my grandfather, used to just have oil on his hands, just showed his hard work and i talk about how it sort of came full circle. i had four hand surgeries since i've been in the nba, which is sort of symbolic of my relationship with my granddad, but it was unfortunate situation, you know, but he was the rock of our family if i wanted shoes back then, he wouldn't give me the money he would make me and my brother work so, it just all went back to doing the workday in and day out. >> how tough was it reliving some of the memories as you put the book together? >> writing a book, it is extremely tough because you want to make sure it sounds like you, you want to put your emotion into it. it was tough there is a lot of things i hadn't sort of discussed in over 20 years, but i was so happy to have the book completed and more

so so my family, everyone can enjoy it, but also people who don't know me. i'm interested to see what they think about the book >> a lot of -- eventually you get, you know, so well off, you have to give back. so you're involved with philanthropy, hbcu, all that becomes a natural thing? >> yeah, so i went to wake forest university for two years, which was amazing. and i went on to the nba, but growing up in the south, i was always around different hbcus. around winston-salem state university, north carolina ant, so during the pandemic, i said let me go back to school let me go back to school i want to get my degree. i enrolled at winston-salem state university and i graduated in december. >> congratulations. >> only took me 20 years, but i got it done. >> i'm wondering, you know, just watching what happens, i see, like, embiid should be able to

win a championship then i think, you know, you put one guy in and it is not going to happen. but everybody's looking for the chemistry that results in a championship could you do that? would you know how to do that? >> what? >> how to put together five guys that get it done because it is not one guy, ever. >> i've been playing -- just finished my 18th season, i'm still trying to figure it out. but it is fun, man and it is hard i had a coach of mine that used to always say -- coach used to say never delay gratitude. he had all these things, i also had a coach who said you need a little bit of luck being good is one thing, but you need a little bit of luck. >> you need to be in shape, too. i think -- honestly, i could run -- i think i could make it from one side to the other of the court once and then have to sit down i do but for an entire game, you watch those guys >> yeah. >> not only -- then you got to play defense, which is --

>> yeah. >> and shoot. >> you got to do all of that >> chris, thanks. >> thank you, guys, so much for having me on >> "61" is the book. >> thank you. when we come back, we have a rundown of stocks onheov t me this morning "squawk box" will be right back. my name is joshua florence, and one thing i learned being a firefighter is plan ahead. you don't know what you're getting into, but at the end of the day, you know you have a team behind you that can help you. not having to worry about the future makes it possible to make the present as best as it can be for everybody.

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good morning investors taking a breather after last week's rally. what will be the next catalyst for stocks ten years ago waze was searching for direction until google bought it for over a billion dollars. that's the highest price ever paid for a consumer app at that point. co-founder and entrepreneur orie leven will join us to talk about tech startups, the state of silicon valley and the future of ai. plus, it is the new great depression, the number of teens who say they don't enjoy life has doubled with social media. a closer look at the numbers and the future of america. the second 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 with becky quick wouldn't have had to settle for just the waze founder, but you nailed it. >> looking forward to seeing him. >> could have just skipped it. >> no. >> normally happens. u.s. equity futures at this hour as you can see up about six points on the dow. now we got some red in the nasdaq down -- now actually in the green. but muted today after a bit of a pullback yesterday but what a week last week which was unexpected, like so many things, because the fed said yeah, we're going to pause, but we got two more in us and inflation is really stubborn and yet, market took a different read and things rallied. there is 3.74 now on the ten-year 4.7 as you can see on the two-year bitcoin has been right around 29,000, just above or just

below. 28,825 that shows just a gain of 3% depends on what you measure it from it was at 25,500 in the last ten days you can do the math. it moved up about 12, 13, 14% in the last week. but it has been volatile but not as volatile as it has been in the last two or three years. >> let's get over to dom chu with a look at this morning's premarket movers dom, good morning. >> good morning, becky good morning, joe. so we have an earnings mover that is driving a lot of the premarket action and sentiment fedex, the package delivery and transportation logistics giant is down nearly 3% right now. roughly 5,000 shares of trading volume it reported mixed quarterly results, profits came in better than expected, but revenues were also now below estimates fedex also offered a full year profit outlook that was seen as disappointing. it fcontinues to try to streamline costs

so fedex shares just down about 3% right now adobe shares higher by nearly 2% on just around 20,000 shares of trading volume the company is getting upgraded to outperform by analysts over at bmo capital markets market perform before. the target price goes up to 5.70 to 500 they cited the potential for getting new customers and market share through their new artificial intelligence ai-related product offerings those shares up nearly 2% this morning on that. and we'll cap things off with a check on tesla, which is up by over a percent right now, jut over 1.5 million shares of volume that's despite analysts over at barclays who downgraded it to an equal weight, but they raise the target price and acknowledge the strong run tesla already had above the target price i think the recent rally has been too far, too fast, amid challenges for tesla as

questions remain about profit margins there. so tesla stock has been a juggernaut remember that big cut, 13-day winning streak we have seen that added $240 billion tesla stock is still continuing that momentum. we'll see if it can stick with it back to you. >> dom, thank you. right now we want to turn to the broader markets and for that we bring in marian bartel, chief investment strategist at sanctuary wealth marian, we have seen the markets run pretty hot a lot of people starting to wonder if it is time for a pullback, but i think you're looking at things and thinking, look, this makes sense, based on what you're reading, correct >> yes, good morning, becky. thank you for having me. the market, becky, had traded in a range for almost a year. and we had to break out of the range to the upside or the downside and we made the argument we were going to break to the upside just because of positioning. positioning was so bearish that we thought we would break to the

upside markets don't peak on pessimism. they peak on optimism. now what we're also starting to get is estimate revisions are starting to get revised to the upside second quarter numbers still look negative, but looking out to third and fourth quarter, the numbers are getting positive the market does not trade on the economy, it tratrades on earnins it is extremely overbought we can get a pullback, but i still think this year is going to wind up being a very good year for investors >> you know, you look at things like fedex, and the warning that it issued last night, just for its earnings for the rest of the year, normally you would look at that and think this is going to be bad news for the economy overall because fedex, one of the transportation issues you face, can be a signal for the economy. is this different because fedex was dealing with the change in consumer behavior after the pandemic it is really hard to read these

things at this point >> becky, you're spot on yes, fedex does have an issue. what is keeping this economy going is the consumer. we all know that it is really the services side and i know there is a lot of concern that savings is coming down and we're starting to see debt, but that can continue. we're not at any extreme levels. we're not at negative savings. we don't have extreme debt, which means the consumer can still save i don't know about you, becky, but when i go out to dinner, every restaurant is packed >> yeah. >> many people going on vacation so there is still money moving in this economy. >> i guess if that's the case, if the consumer is still hanging in and still keeping the economy strong, do you think the fed is going to do even more? additional rate hikes or keeping rates stubbornly high for an incredibly long time that's the weird balancing act >> i do agree that they want to keep rates as high as long as

they can and as high as they possibly can we're going to have to wait to see. obviously the signal that we could possibly get two more rate hikes, but that did not derail the markets. and i think the reason why that did not derail the markets is the markets are looking forward and they're seeing that earnings are beginning to improve as a whole. as you know, tech has been on a tear this whole ai theme is really playing out. and i think the market is really more focused on the longer term than the very near term. >> mary ann, where would you allocate money would you chase the technology names that did so well would you look at sectors that haven't seen the same sort of gains to this point? >> since the beginning of the year, the pocket we have been focused on are semiconductors. i was a junior technology analyst very early in my career and i learned the importance of the semiconductor cycle. and if you're in a cycle for

semiconductors, everything else follows and i still still think there is a long cycle for semiconductors another pocket we do like is computer software and services now, i'm not saying to sell, you know, the kind of faang plus stocks, but, you know, some of them are a little bit extended, a little bit pricey. i wouldn't necessarily sell them either because i still think tech is the leader tech is going to continue to drive this market higher, but i think you can broaden out and be specific in what you own, and even go into other cyclicals the cyclicals are really starting to perk up like industrials, and that's another pocket that i really like. >> mary ann, thank you mary ann bartels >> thank you. coming up, the ceo of the trade desk joins cnbc's julia boorstin live from the festival to talk digital advertising, the

future of ai it has been ten years since google acquired waze orie leven will join us to talk generative ai technology, the future of big tech and the state of startups. we'll be right back. at pnc bank, you can find us in big cities and small towns across the us, where our focus is to always support the people who live and work there. because you call these communities home, and we do too. pnc bank.

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julia boorstin is in the south at france at the cannes

lions festival good morning good day >> good morning to you, joe. yes, that's right. the afternoon here at the cannes lions advertising festival i'm joined by the ceo of thetradedesk jeff green. thank you for being here today you help various brands and agencies target and deliver ads across the internet, everything from connected tvs to mobile advertising and to ads on the likes of walmart give us a sense from your perspective what are you seeing in overall ad ecosystem, is there a contraction? >> across the entire ecosystem today, there is more opportunity than there has ever been before. it is the best time ever to be in internet advertising, largely because things like connected television have really come online during the pandemic, but that's become much more ad-fueled. and then there is all these opportunities coming around retail where we created all these partnerships with companies like walgreens and

albertsons and dollar general and kroger and so many others to provide data end to end so people know what advertising is working. there is so much going on. >> part of your approach is this idea of a unified i.d. so you can target ads and track their impact, you just announced walmart is on board. you just announced a deal with warner bros. discovery what is happening with the growth of the unified i.d. and how is that helping your business >> so, what advertisers really want to do is bring their data to the table so that they can make better decisions about who to advertise to. so, especially if you have data about the customers that have already bought your product, you want to look for people in the world that look similar to them in terms of their interests and likes and preferences so that you can use your ad dollars more efficiently. in order to do that, you need a currency, an identity currency to know where the users are. and so unified i.d. makes it so that companies like warner bros.

or disney or even companies like snowflake or amazon can take the log-ins they have and put those to work or enable companies that use their platforms like in snowflake or in amazon's case, aws, so they can empower thure cust customers. >> you announced a new version for the eu there is a big sense that the eu is really going to crack down on anything that is violating privacy. there is a push for the eu to crack down on google's practices. and there was also a big lawsuit just filed by gannett alleging that google has anticompetitive practices. google is your main competitor >> that's right. >> what does this regulatory crackdown and lawsuit from gannett mean for you >> yeah, so, of course there is always lots of people looking in at privacy and making sure everybody is doing the right thing. we're very excited about the

opportunity that creates for us to do the right thing for advertisers, brands and for publishers but separate from privacy concerns, which have often been something that google is under a lot of scrutiny for and lost lawsuits over, but there are also antitrust lawsuits from european commission, from the department of justice, from the texas attorney general, and then yesterday a lawsuit filed by gannett. i think this is really significant. while they don't necessarily have the same leverage against google, the department of justice, the european commission has, i do think somebody who is financially dependent on google filing a lawsuit, despite their financial dependence, saying their practices are not fair, speaks to the government's case against google and i think it shows a very significant strong opinion from a publisher saying that the marketplace isn't fair and needs to be fair >> what do you think of the potential outcome and how could

that impact your business? >> i think at the end of the day, a lot of people are criticizing google for being judge, jury, defense attorney, prosecuting attorney, bailiff, warden, bail bondsman, all of these roles in the justice system and they just want it to be super clear of what they're doing and to essentially pick a side i think it is likely that the remedy will be negotiated between them and government, to make certain they pick a side. as i said before to our investors, if we have been winning in an unfair market, imagine what we could do in a fair market. >> so what's next for the tradedesk, regardless of what happens with the regulatory approach to google's business, you're adding more partners effectively. cnbc's parent company nbc universal is a part any of the tradedesk. what about a market that may not see as much overall growth as we have seen in years past? >> i think overall advertising will continue to grow. i think advertising is the distance between success and failure as barriers to entry for companies continue to get lower actually and when you think about things

like cloud and what that has enabled, you don't need infrastructure costs that can scale with variable costs instead of having to go buy a bunch of servers the way i do when i started in internet advertising 20 years ago there is so much opportunity for investment that i think we'll continue to see that i think ctv will continue to climb and rise i think there is tremendous opportunities in audio as spotify continues to evolve its business model in advertising. there is a lot of opportunity, particularly some of the smaller walled gardens as they call them, companies that have only bought and sold their own ads or sold their own ads to advertisers, as they open up to allow -- >> who are some examples of those? >> pinterest or roku or twitter have historically been smaller walled gardens but i think they're likely over time to open up. >> in terms of what's next for you and for this industry, what is the biggest threat and who do you think could be the biggest

loser from all of these changes? >> i think the -- those that benefit are anybody that is on the open internet. so i honestly believe that as the market gets a bit more competitive and fragmented, particularly because ctv is perfectly fragmented, that that creates opportunity for everybody except for google and facebook who have benefited from simplicity and from having a very closed protected ecosystem. as the open internet gets more competitive, and more compelling, it gets more dollars. >> there is a big netflix logo, we have peacock, cnbc's sister company as well as hulu, amazon, all in the ad space now. so much going on in the space. jeff green, ceo of the tradedesk, thank you for talking to us here in cannes back over to you guys. >> thank you, julia. coming up, uri levine, c

co-founder of waze will talk ai and the tech landscape there he is. futures ahead of the opening bell on wall street. "squawk box" will be right back. time now for today's aflac trivia question. according to redfin, what percentage of home owners have a mortgage rate below 6% the answer when cnbc's "squawk box" continues gaaaaaaaaaaaap!!! is that a goat?! you talkin' about me? gaaaaaaaaaaaap!!! i think this goat is saying “gap.” must be talking about the expenses health insurance doesn't cover. so who's talking about the money aflac pays to help close that gap? gaaaaaaaaaaaap!!! aflac! aflac! gaaaaaaaaaaaap!!! it's about to go down, baby! aflac! aflac! stop that goat! get help with expenses health insurance doesn't cover at aflac.com ♪ i think i was like, ten, maybe. our team came in second... ...i wouldn't accept the second place trophy.

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now the answer to today's aflac trivia question. according to redfin, what percentage of homeowners have a mortgage rate below 6% the answer, 92%. the latest read on weekly mortgage demand just in. diana olick joins us with more on that. diana, good morning. >> good morning, becky yeah, most mortgage rates fell for the third straight week last week mortgage demand did not move much, this after a big surge from the week before this weekly volatility is likely because the overall volume is just so low. now, the average interest rate for 30-year fixed mortgages with conforming loan balances decreased to 6.73% from 6.77%.

that's for loans with 20% down now, interesting the rate for jumbo loans rose to 6.8% and that was the second straight week that it was higher than for conforming loans that hasn't happened in about two years. it is probably because tighter liquidity conditions prompted jumbo lenders to pullback and that's increasing rates in the process. that according to an nba economist. applications to refinance a home loan fell 2% for the week and were 40% lower than the same week one year ago. mortgage applications to buy a home increased 2% for the week, but they were still 32% lower than the same week a year ago. the continued drop in new listings of homes for sale, that's keeping overall sales low. but fha demand rose more than conventional loan demand, which is at least a sign that first time buyers who generally use fha are still trying to stay in the game becky? >> did it surprise you that 92% of americans who have a mortgage have a mortgage rate below 6%?

i guess i'm surprised -- >> not at all. >> yeah. >> it is high the number who have a mortgage rate below 4%. it goes even further than that that's why nobody wants to sell their house now. nobody is putting their house on the market because they don't want to trade perhaps a 3% mortgage rate for 6% or 7%. >> that's what happens when the fed raises 500 basis points so quickly like that, sticker shock sets in. diana, thank you. still to come, chinese spies are targeting corporate america. an inside look at the response from capitol hill. and then is social media harming children an industry expert weighs in on the surgeon general's extraordinary warning to lawmakers. first, though, tenth anniversary of google's acquisition of waze, we'll talk to the waze founder uri levine about the evolution of ai. that's straight ahead. "squawk box" will be right back. how's the chicken? the prawns are delicious. oh, i have a shellfish allergy. one prawn. very good. did i say chicken wrong? tired of people not listening to what you want?

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ten years since google

acquired driving app waze. one of the first consumer facing products to leverage ai and machine learning joining us now uri levine, co-founder of waze and author of "fall in love with the problem, not the solution: a handbook for entrepreneurs. a big acquisition at the time, biggest, i think, at the time, a billion dollars. spend it all got anything left? >> you know, it's -- it was the biggest acquisition for an app ever and facebook acquired whatsapp for way more, but later. >> way more. and you parlayed, i'm sure you're involved in so many things now, it is exciting what do you have what is it that makes you do this, who you are, how can other people do it and i guess it is in this book, right? >> it is really simple my destiny is about value creation and i find multiple ways to

create value so waze or movie or different startups i'm building, but all of them are about value creation is one way i'm also ended up to be a teacher or sort of teacher so i feel equally rewarded if i build something myself or guide someone to build it and the book is fulfilling my destiny as a teacher. and sharing my know-how with many other business people and helping to become more successful. >> don't take it literally, though fall in love with the problem. what good is examining the problem. >> very simple just imagine we would be here in 2007, just before we started waze and i'll tell you, i'm going to build an ai crowd source based navigation system and you'll say very interesting, but you don't care i'll tell you i'm going to help you to avoid traffic jams, you do care. >> you work on things tha ss the you nuts >> exactly

i get frustrated with stuff and i ask is there a way i can change that and the next thing i'm going to do is ask a lot of people if this is an issue for you, if this is a problem for you. i always tell people, start with the problem, think of a problem, a big problem. something that it is worth solving. and then ask yourself, who has this problem if you happen to be the only person on the planet with this problem, you know what, go to a shrink, way cheaper and faster than building a startup. if a lot of people have this problem, you want to go and speak with those people and understand their perception of the problem. and only then go and build the solution. >> what else besides having traffic problems has driven you nuts to the point that you actually have done something about it >> one of my more successful startups these days is pontera it is actually focused on retirement plans in the u.s. 401(k) and help people to retire richer you think about it, you say, wait a minute, this is -- this is a major mission this is something that it is

worth -- most of us, if i ask 100 people on the street, what is your 401(k) investment at, they will tell me i don't know but i do know. in the default, that was the default, when they joined, right? so no one is looking at it and saying, wait a minute, this is my retirement saving, i need to make sure that the return on that is the right one. and so we are pretty good in looking at stuff that is around the corner and we failed to see the way to the future. >> there are quantum leaps in technology suddenly ai, ten years, we didn't -- it wasn't on everyone's lips when you started waze what changed do you think in the last year? >> we all heard about ai as soon as the open ai chatgpt came about and that was about six months ago, right?

before that, we never heard that all of a sudden, we say wait a minute, they started in december and everyone is using it i said, wait a minute, they are six years old. it is a long journey to create this value and it is still not there. if we will speak with a lot of people at that, and i would ask them, okay, have you tried chatgpt or any other, you know, language generation ai system? and many of them are going to say, yes, asking are you still using it most of them are going to say no the use case is still to be determined this is a language model so for everyone that is generating content, very important. and you can actually increase your productivity by 10x or 5x and become way more successful using these tools. but if you are not in the space, then you haven't found the use case yet and i think that we will eventually we will find different use cases, but will increase

productivity and we'll make the world a better place. >> how do we -- it is out -- the genie is out of the bottle a little late to decide it could be dangerous could be dangerous near term do you believe it could be dangerous long term to the species? or is that all science fiction >> you know, a decade ago when we thought about ai, we spoke about autonomous vehicles. >> what? >> autonomous vehicles so cars that can ride themselves and obviously we're ten years later and still most of the cars we are seeing out there, they actually have drivers. so we are still not there yet. and there the value is clear, right, because it is going to save us time we don't need to sit behind the wheel. we can sit in the back seat and do whatever we want. and still the challenge, some of the challenge is what if, right, what if something bad happens? what if there is an accident with an autonomous vehicle and we in general, when we think of something bad happens, we are looking for someone to blame

and we should actually do it differently, which you think of something to repair rather than someone to blame with ai, it is -- they will be -- >> you can't look for something to repair after you lost human lives. that's the danger. >> we were talking about everybody dying? not just somebody dying. i mean, you know, way out there, past the singularity, machines know a trillion times the sum of all human knowledge. you've seen that >> historical knowledge, right. >> everything. but that's still not -- doesn't equal what we have in your -- >> it's not. it's not equal not even close >> really? >> and probably never, right the ability to actually, you know, create, imagination, re-create stuff, even though

i've seen, you know, the different models of gpt and creating stuff that is not fact-based, but language-based, right? they will make up something. >> if 50% of teenagers already are depressed from social media, and then you throw in the negative possible outcomes you see from ai, i don't -- we need to be careful, don't we? are the regulations that we need -- we're afraid to regulate it because we don't want to get behind everybody else. >> we, i think that we do need regulation but what the regulation should do right now just wait and see, right. because for social networks, i would say wait a minute. there is a major impact on our life and we should have regulation here. and in general, you know, at the end of the day, you look at the media and say, okay, wait a minute, it is google and facebook that controls what we get. >> that's interesting. because we're going to have a

segment talking about this too, with the social media networks, you do think they need to be more regulated and -- >> i think it should i think that there is too much power, too much power for anyone will eventually become devastating. it needs to be regulated and i think that the model of countries is way stronger than the model of corporates. corporate have one agenda, right, make more money and they have no social code and governments occasionally do have social code >> i started -- when i see the cop, i started alerting people do you do that >> on waze, look out, look out >> you get a lot of reward points and i feel really good about it that was smart to do that. it wants me to buy a backpack 20 miles out of the way i still like getting points. do you do that >> yes, waze rewards, yes.

is the car still there yes. >> i lived in los angeles back a while ago, always afraid to leave the freeway. always no, no, i can't leave the freeway, no, i'll never -- i can't leave the freeway and i would sit there, like a robot. this all of a sudden, i got short cuts through here, i'm in residential -- >> it has turned formerly quiet -- >> it does but you can leave the freeway, you know what are you doing we don't have fun anymore. that's me in traffic which almost is so bad, it almost makes up for the nice weather. almost offsets it. >> almost. >> i will say two things, right. number one, you know, when i speak with people around reward, everyone says, you don't get it, but our traffic jams are the most severe. and -- >> seems pretty bad. >> you know what, u.s. in

general is pretty good >> relative. >> think of latin america, think of asia, think of india, think of jakarta china is actually -- they can work hard and change things, right. they control, they can change their traffic. >> uri, it has been a pleasure having you we hope you'll come back the book "fall in love with the problem, not the solution. thank you. >> thank you. when we come back, how china's spies are trying to steal u.s. trade secrets eamon javers will join us with a preview of a new cnbc documentary that premieres tonight. "squawk box" will be right back. that's what you get from the morgan stanley client experience. you get listening more than talking, and a personalized plan built on insights and innovative technology. you get grit, vision, and the creativity to guide you through a changing world. ♪

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president biden referring to china's president xi as a dictator during a speech last night. those comments came just days after secretary of state antony blinken met with xi and other chinese officials in an effort to try and lower tensions between the superpowers. beijing firing back this morning saying that biden's reference in their words was extremely absurd and irresponsible and amount to political provocation. in a new cnbc documentary, eamon javers has a rare bipartisan interview with the democratic and republican leaders of the senate

intelligence committee about how china's spies are trying to steal u.s. -- >> today, the world we live in the world we all benefited from was a world framed by an american-led order now they are dominant in these fields in the 21st century the entire world will be responding to chinese standards which is leverage in and of itself over geopolitics, over decisions of policymakers can make, over society >> the old notion of 20 years ago, who has the most planes, tanks, ships and guns is no longer the case. who has the most advanced wireless communications, who controls overhead satellites, who is going to make the most advances in synthetic biology or controls next generation energy? that is all within the gamut now of national security >> that was rare even more rare eamon javers is in studio. >> on set. >> here on set >> in person with my jacket on i didn't go jacketless like you.

>> you could, if you want. you got a nice figure. wouldn't matter. >> i need a little help. just cover it up a little bit. >> like to see your lululemon pants. >> never i'm holding the line, joe. >> i know you are. i won't wear sneakers with a suit >> fine. feel uncomfortable have things crushed. >> right look, this interview with these two guys was just a fascinating opportunity to sit down. it is the last bipartisan issue in washington, d.c., right >> the two of them together, but it makes you feel like this is something that must be very, very important. >> they really care. they wanted to do that interview together side by side to send a message to the country this is not a democratic or republican issue. this concern about china and what they're doing to corporate america is really front and center for them. and we got started on this documentary back in october, we were starting to work on this, and we have been talking about it for a while because my sources in the u.s. intelligence community kept coming to me and saying we think corporate america doesn't get it corporate america looks at the

china espionage threat as they're stealing ip, causing problems, this is going to cost us money, but they're stealing to catch up to us. and we're ahead. so things are fine what u.s. intelligence is saying and i think what comes through in the documentary is that the threat is a lot more existential than that. the stealing that is going on by china is about stealing to then subsidize a chinese state champion company that will then go on to displace the american incumbent. so they're not trying to steal to keep -- to catch up with you, they're trying to steal to kill you. they want to take those corporates off the chess board. >> is this stealing from companies that do business in china or by -- is the goal from intelligence to try and get companies to stop doing business in china or is this a problem that is going to happen whether you're operating in china or not? >> that's a good question. i asked christopher wray that question in the documentary. he said we don't want you to stop doing business in china, but we want you to be a lot more careful about how you do it.

>> how do you do it? >> the central case is a case of ge aviation. there is the ministry of state security spy in china who was targeting composite fan blade technology that ge aviation had that is absolutely crucial to the economics of a modern jet engine and what this spy did, he found the exact engineer inside ge in ohio who had this information and who had family back in china, and targeted that guy under the auspices of the chinese university inviting him back to china to give speeches, talking to him about getting access to his laptop. >> how do you protect from a situation like that? the answer to that is, what, you can't hire any chinese corporate people >> that's not a good answer. that's not a good answer what the fbi will say is the way you -- we protect against that, you work very closely with the fbi. in this case, ge did work with the fbi. they found out that this engineer had been traveling to china and had not been disclosing it to ge.

they met with the engineer and they said, we understand that you're the target of a chinese espionage operation. you can either face the consequences for what you've done so far, or you can work with the fbi and the engineer inside ge became a double agent and they flipped him and the fbi sent him back to the chinese. so the chinese thought he's still ur guy, he's going to give us the secrets, he's talking about downloading his entire laptop with all the secret plans on it for the chinese, they didn't realize he was working for the fbi the whole time i won't give away the end of the story. they did send some fake plans. ge worked up some bogus docs the chinese agent travelled to meet with him, the chinese had on their phones lots of pictures of this guy's family, right? which is leverage. right? so there are real concerns here in terms of the espionage that is going on, but what folks told me is that the target of that operation wasn't even really ge aviation the target of that operation was boeing because if you can steal all the

different components of a commercial jetliner, you can build one, they have a company called commack in china, you can subsidize commack and threaten boeing, not just the market share, but boeing's existence. if you come out with a corporate jet program that can sell jets for half what boeing can or three-quarters of what boeing can, where is the global market going to go, right if the components are the same, the safety is the same, why not buy the cheaper one? >> we shouldn't be under any illusions. they have a billion and a half people that they think they want to bring in to the same type of prosperity that we have. how do you blame them? are there any international rules for the way businesses should behave? and if there aren't, then we just have to take the same tack. we need to fight fire with fire. but we shouldn't be under any illusions that they're going to be nice about things. >> i interviewed a long time veteran cia officer named jim

olson for this, under cover in moscow in the '70s and '80s, counterintelligence expert, and he said what he would be doing right now is flooding the chinese channels with double agents, just like this operation we detail in the documentary because you keep them on their toes, they never know what's real, what's not real, it wastes a lot of their time and you learn a lot about their operations so, in his view, what the cia should be doing is just sending a lot more corporate double agents back into china and confusing the nation >> hopefully there is going to be goodwill. i don't think question do that. >> corporate espionage has been with us since there has been -- >> i don't think there are any rules. >> the cotton gin, all the legendary things, back to the time in memorial. >> business. >> yeah. you got to protect yourself. people steal when there is somebody who has an advantage over them. >> good teasing. >> 10:00, tonight, on cnbc. >> thanks. tune into that new documentary, "china's corporate spy war"

premiering at 10:00 p.m. eastern on cnbc. when we return, is social media harming children an industry expert weighs in on the surgeon general's trrdarwainexaoiny rng to lawmakers. we'll be right back. u stop callg each other rock stars? 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. ♪♪

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depression the u.s. surgeon general saying that social media is an elevated risk for depression. and, jacqueline, first, let's talk about this. the incredible increase we've seen with teen-agers, do you tie that back to social media are or are there other factors as well? >> thank you for having me there are a lot of open questions about how social media use impacts mental health among teens. i think what we can say from the current evidence isthat the impact of social media on mental health really depends on how

it's being used. we know there are real risks to social media use it's not all bad there are also benefits and the impact is going to depend how it is being used by an individual teen what i think that means for solutions is that we really need to be thinking about how can we maximize the benefits that we see of social media for teens while minimizing these risks that we really know are present on these platforms >> the u.s. surgeon general taking a pretty extreme measure saying we know almost every teen-ager uses social media. we don't have any idea if it is safe i think the next step is that the biden administration saying they're going to take a year to figure out what guidelines and regulations should be set. look, this is also fueled, though, by the facebook papers, the research they did themselves and then chose not to release that showed that there was a very significant impact on teen-agers using it.

what should we be doing as parents, as a society? >> the surgeon general advises we take a safety-fuirst approac. this is something we do for other products, things like cars, even children's toys where until we can really prove that these products are safe for youth, we're putting protections in place to minimize the risk of harm i think that's really important for us to do this this case as well there's also a lot that we know parents can do of course, though, we know that this can't be on parents alone it really has to be a multi-facetted effort from, you know, legislative efforts to the tech companies themselves. but ifa few things parents can are things like communicating with teens about using social media, asking questions, setting

boundaries around time they're spending and types of things they're looking and they can model the types of healthy social media behaviors parents using social media plays a big role in how their teens will use it as well. >> we're almost out of time. if this is a bigger societal problem and you're basically kidding your kid off from other social media that kids are using. why this lack of urgency >> i think this is a really tricky issue i think that we don't necessarily have ideas for the best solutions on how to address this at the same time, i do think that there are some common sense steps that tech companies can take to address these issues so i think that they can be really prioritizing kids' safety and health as a first principle in designing their platform,

including things like protecting children's privacy on the platforms, enforcing age minimums and i think these things will be really important to move the needle >> i'm sure they'll talk a lot about it jacqueline, thank you. >> i mean, we're adults. >> we're adults and it gets to us >> twitter gets to some of the -- what gets me is the -- >> the meanness money. >> but what it's based on sometimes. >> and take that and put it on 13-year-olds >> you can get bullied at 1 a.m. you can leave school and you are never safe you're never safe. >> for the life of me, i don't understand the lack of urgency this is more than a decade after the horse left the barn. still going to think about it. >> my teeth were white at one

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good morning investors standing by for new messages from jay powell he's set to testify in the house today. renewed tensions with china. that country firing back after president biden called his chinese counterpart a dictator and details on the fourth quarter as the final hour of "squawk box" begins right now. good morning, everybody. welcome to "squawk box" right here on cnbc we are live from the nasdaq market site in times square. i'm becky quick along with joe

kernen andrew is off today. we've been watching equity fut futures, we're a little off. the nasdaq off by about 25 we are waiting for some testimony today from jay powell that could influence what you see with markets later in the day. in the meantime the 10-year at 3.74, the 2-year at 4.7. >> new heated words between the u.s. and china speaking yesterday at a fund-raiser about the chinese spy balloon that we shot down in february, president biden referred to china's president xi as a dictator. and a spokesperson of china's ministry of foreign affairs responded today calling biden's comments ridiculously absurd and irresponsible. and this follows a meeting in which blinken met with xi and talked about stabilizing ties

between the u.s. and china and sticking with this story, in general the country of china unveiling a more than $70 billion package to boost sales of electric cars over the next four years chinese ev makers are higher on that move. >> and rounding out a trifecta of overseas headlines, british inflation coming in hotter than expected in may. the core number was up 7.1%, the highest number in years. the bank of england will try to tamp down high prices. >> let's get over to dom chu what's catching your eye right now? >> we'll talk about a couple things joe mentioned in the open there. we'll kick things off with a stock that's very much a topic of interest, that's fedex. the stock is currently down 2.5% premarket, 25,000 shares of

volume the package delivery giant did beat estimates but the revenue missed expectation and fedex's full-year forecast underwhelmed wall street. it continues to do with a reduced demand for shipping. overall fedex shares down 2.5% on the analyst front, movement in spotify, up roughly 2.5%. the streaming music and podcast company is getting upgraded to outperform by analysts it was previously a peer perform. they call it their top idea in subscription based companies due to expected revenue growth acceleration driven by price increases and new subscriber additions. and we'llnd end with a check on the bank stocks, which are relatively calm ahead of jay powell's twice a year testimony before congress.

shares of the big money center like jpmorgan chase, citigroup all fractionally higher and wells fargo fractionally lower there's not a huge expectation powell will make any lines out of line with inflation or policy he's slated to go before the committee at 10 a.m. and the senate tomorrow, joe >> dom, thanks and on the same day last week that our next guest was confirmed as the white house's top economist, we learned annual inflation cooled in may to 4%, the lowest rate in more than two years. joining us now, jared bernstein, chairman of the council of economic visors. it is global what i don't understand in the u.k. is why they're just seeing a peak in the core when we saw a

peak months and months ago what's going on globally i guess it's supply chain and pandemic related >> supply chain and pandemic but also the war in ukraine. based on proximity, they're going to be more, posed. it is the case that at this point we're getting more -- considerably more disinflation than any other of the g7 countries. part of that is exposure to ukraine and part of that is policy as well of course the president has really leaned in to policies that are designed to help ameliorate some. price pressures, especially around prescription drugs, insulin, investments in the supply side. so i think policy and proximity to the war in ukraine. >> you know the success has a

thousand fathers, sailors, whatever you want to i a tribute our strong economy to, i attribute it to some of the initiatives of the prior administration i know that you probably don't you like all the things that the biden administration has done but it is a pretty strong economy and that's good. >> yeah. >> what the fed's trying to do, i know you want to let them retain their independence, but there's one thing that -- this is going to be a sore subject, 24 straight months workers have made less in terms of real wages because of inflation now, the president glosses over this and says -- he just uses the -- he doesn't use real wages and says everybody's getting a raise. do you tell him that's disingenuous do you say don't say that, it's not true >> well, i disagree with you, not with the president and let me correct a

misimpression. the president has consistently and i'll be happy to provide you and yours with evidence of this, has talked about real wage gains, particularly over the last six to seven months but most recently and you can look at this on his comments when the last inflation report came out on a year-over-year basis. this is the first time in a couple of years that year over year inflation rose less than wages. wages grew 0.2% and inflation 0.4% you said something else that's really important and it ties into the real wage growth story and that's that this is a solid, strong economy i think at the heart of that is the american consumer, who you should never bet against if you

haven't learned that by now and the fact is that we have a pretty nice fly wheel going where the very strong labor market, along with some excess savings has helped to fuel strong consumer spending, and that feeds back into money in wallets and purses and that's helping to drive, you know, consumer spending, which is almost 70% of the economy. so that virtuous cycle is under way. and, yes, i do think the rescue plan has played a role in that >> okay. so you're telling me the president was only talking about the most recent report because dating back to april of 2021 there were 24 straight months, according to the bureau of labor statistics, 24 straight months where hourly earnings fell after adjustments for inflation. so you got one month or two months versus straight where workers earned less. >> no. in fact, again, real wages on a

monthly basis have been growing for the past if you months and on a year-over-year period as well i think it's important to recognize what we're tucking about here in terms of economic dynamics the thing we'd like to see is for wage growth to remain robust of course the fed wants to see the labor market come more in line we'd like to see price growth decelerating, slowing, more than wage growth. that gives a sweet spot result that's what we saw in may and we'd like to build on that progress >> what do you think we need to do long term jarrett is it on your radar screen in terms of the size of -- what are we at 32 trillion? it's a big part of gdp, we had the pandemic, the financial crisis there's a lot of reasons for it. i don't know can we learn anything from --

there's a piece in the "journal" today about blue states. they keep raising taxes but keep keep moving. is it all about raising taxes or is there something we need do with either social security and medicare or with spending? don't we need to address the spending side of things? >> look, you're opening up a very important and sizable discussion here but i think you've left out a really important variable, which is economic growth. yes, i do think that we need to raise revenues and -- not particularly, exclusively on high-end families, those above 400 k. that's very much in the president's budget, reduces the deficit by 2.5 trillion over ten years. that strategy is written down. i can talk to you and defend that all day but i think in terms long-term strategy, both for the economy and our fiscal outlook, it's really important to

continue to make and implement the investments that the president has managed to legislate, whether it the bipartisan infrastructure law or inflation reduction act, we are finally investing in the nation's infrastructure. there are 32,000 infrastructure plans already out there in the country being implemented. we have hundreds of billions of private investment coming in look, anyone who knows anything about growth accounting will tell you not only to that help in our current economy by helping to boost investment growth and keep jobs drawn but also oaf the longer term that's a piece of the puzzle that i think most people on both sides of the aisle have been missing for a long timing. and president biden has worked really hard on resilient supply chains and on climate. >> the budget that the president introduced that was never going to be the final -- the blueprint

was never going to be the end all be all there's a philosophical difference between the two parties in how they see growth one party and i think what you're talking about it is government investment, which basically is taxing the private sector to raise more money for the government to decide how to spend to try and instill some growth, with layer over layers of regulation. am i wrong about that? shouldn't you try -- shouldn't the one thing we try do is leave as much capital in the private sector where it's treated better and that's where the growth comes from will we just have this argument forever between republicans and democrats? >> i think where you landed is important. capital flowing into the private sector is absolutely essential but where you made a substantial misstatement there was on taxing

capital. in fact, if you look at the investment reduction act, the subsidies to private businesses investing in climate, investing in resilient supply chains, investing in health care, those subsidies are very, very substantial. and, by the way, if you talk to companies themselves, which we do, they're very happy to see them and moreover, if you want even better evidence than that, private capital is getting pulled in to the market to help complement the policies in the ira and infrastructure law so i do totally support your view about capital but i think you have it kind of backwards to the extent to which our policies are pulling in capital investment >> they're telling me we got to go we'll probably put out a video you called it the investment reduction act. you had a freudian slip. >> what? >> yeah, instead of the inflation reduction act.

i think that's more appropriate. >> joe, the evidence is really strong on this one >> i know. i love having you on >> that was a freudian slip. >> i know. we all do it jared bernstein, thanks. >> i've had way worse ones >> so have i >> and in this day and age -- >> be careful. >> when we come back, we've got a view from the restaurant industry on inflation, pt usefulness of a.i. and much more plus, what investors can expect when fed chair jay powell goes before congress today. stay tuned you're watching "squawk box" and this is it cnbc. helping businesses both large and small, communities and the people who live and work there

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fathom it's up 36% and no one really thought there were great things happening, interest rates going up and headed for a recession and it's not across the board but for whatever reason, pretty amazing check out the shares of restaurant chain cava. it's up about 75% now since its ipo. and restaurant ipos are expecting another one before this week is out, korean barbecue chain gen >> sticking with the restaurant sector, our next guest has a unique vantage point on the u.s. economy. he gets a good look at hire and labor costs and inflation. joining us is jeff kobza

this is his first u.s. interview in his new role. first of all, welcome. three months in, what would you say has surprised you most both about the opportunities and the challenges that you face at restaurant brands? >> good morning, becky it's a pleasure to be on the show thank you so much for having me. it is about three months in to my new role as ceo i spent the time traveling all around the world with our friends, guests, employees, franchisees. that's the biggest surprise is how much opportunity we still have left in front of us we're a large company but with decades in front of us and that's been the most exciting about the first few months >> let me tell you a few things that have kind of surprised me just looking into these things restaurant brands may be focused

on the international side of from it. tim horton's canada makes up 30,000 do you look to that and say how do we spread that magic everywhere >> tim horton's is one of the most remarkable things we've seen in and it's an important part of canadians' lives there are some amazing things. we have about a thousand different franchisees, and there is really magic there. that's what takes and that's some of the magic we try to bring to all of our businesses around the world >> i think people look at where you have a the change has fallen

in recent years. you've gone through a lot of different owners and i think the complaint has been there's not been enough investments in burger kings what do you do about that? >> gurger and like any business, you're going to have great times and you'll have a few ups and downs along the the way. tom curtis and the team at burger king put together a claim the flame plan together with our. it's one of the biggest investments in by. you probably heard the whopper jingle a lot weep also working on remodding and it looks amazing it really transforms the

business we're excited doing more and more of that over the next couple of years. >> part of your problem here is meridian restaurants, they had 116 restaurants, they closed at least 20 of them what do you do do you who. >> so we have some incredible franchisees for their whole lives, others for many generations. we have had some that have gone through some difficulties and we've been working to make sure we get those sflunts the hands of great local operators and that will allow us to success -- commonly concerned >> so in terms of inflation, like everybody else and across a

lot of industries, we saw so as we look especially into the back half of 2023, we see some of the cost of goods that flow through our business starting to moderate a bit and that's really helpful. that's what we're starting to see there. on the labor side, we did have some challenges, especially a couple of years ago during covid but that's really improved a lot. we've seen improved staffing levels across the business and across all of our brands, especially in the last 12 to 18 months and that's helping us to make a lot of progress on operations weir seeing improvement that comes from more stability and better staffing in the restaurants. >> josh, i want to thank you for coming on with us. you're early on in your tenure there. we hope to hear against you soon >> thanks so much, becky have a great day >> coming up we'll talk a fed

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congressional testimony that fed chair jay powell is scheduled to deliver later this morning is now being released. steve liesman has the details on that steve, anything shocking >> nothing shocking. he's very much reiterating what he has said at the press conference and in the statement. he says that nearly all flmc participants believe it's appropriate to raise rates and he said the hold allows -- notice he not using the term skip or pause there. the federal will make decisions,

he says but there's still a long way to go to get it back to the fed's it% inflation target he said it will require below trend growth and some softening in the labor market. ho said it will he said it's slowed significantly from last year but is now expanding at a modest play pay and slowing outputt grot are slowing business agreement persian gulf there are some signs that labor and play the wage growth is showing some signs and often

repeated phrase from about that were exposed in the failure of silicon valley bank and part of a the about thor poe frm. >> i guess steve, maybe if there's anything that would prize marcus, it would come as part of the q-and-a sections any speaks, we listen closely. >> yeah. it's railroad i don't know that powell is disappointed or they do have a and there is no second hike built in anywhere in the fed fund futures curve

if you'll give me a second, i'll check to see how that courted from before the meeting. i don't think it's any different than it was been and i don't mean the bond market you you a and i think it's fair what powell was saving if. if he no and they want to at least 20 it hole it may or may none may but they at last leave open the possibility what they may have done enough. i think that's all the markets needed to seize upon >>io, i think it a they took a

max mall of peek peacekeeper dc. >> they've gone that now they're at a minimalist approach where they're going to be do as little to get inflation back to the 2% target. so do a lot, take a pause, see where we're at and and then do more, tweak more as we go along and do as little as possible to do as little damage as possible to the economy i think he needs that labor market to ease up stwha, wants inflation to come down and wants to see the effects of things so i think it's a little bit more maybe aaccount. do no harm at this point >> joining us to tack jeff dimon, former c of barclays. even if we do another 50, we

have four straight 75s so if we got two 25s left maybe as pop we've made sop progress i think the head if it end at 3 to 3.53, i believe pretty pleased i do not believe nat fed seeing in so i think that your pretty pleased. i think there's more lookly hood or another 50 at a time than there is from a cut this year. i think the hurdle for the fed to reverse course is really, really, really hi.

and cutting or stopping? >> no, i think a prose is a. >> no, no, i think you phrased it correctly i think they may steer hair. i don't think it data descendant. >> i hate to say that they're rahal do a gob and i don't think it's the same thing. i don't think the inflation is the same >> no. >> i don't think the threat is the same and i think a stop or pam whnd nwoker stepped down in 1987, inflation was just about

4% he was like the icon ofvilling inflation. i do think we worry too much f and want to give get sup set tr. the target has been set. they have to pay attention to it if height late inflation is the consumer has been incred is there going to be a recession? a hard recession an easy re i think it's all tied up on the consumers. >> you look at 5 trillion, no

wonder businesses and consumers thor, both on the business side and on the consumer id i think the fed is doing a very, very, very good job in taming inflation. i think they were part of the kaurs earlier on by waiting too long before they started to cut. it's a little bit of two tales there. but right now, becky, i don't feel like this is a recession. i do think we're going to have a longer period of sluggish economy. you have to adjust to 5, 5 1/2, 6% interest rates, which i think there's more adjust pent we're going to see some of that same impact on corporate. though i think a longer shrub

about hotels being abandoned in season fran. nobody returning to work it there's something r something really happening in trm rm. >> is it supposed to be like, i don't know, a mini nbco those type of situations is there anything looming? >> it looks pretty serious i'm falling from the -- >> crime >> and everything i've talk about has been rahal that was the latest there was it wall screens or are frj

and holding something. whether i don't think -- the crime issue leads to problems with the you have a rool nark i i mean, the pakt on flom i mean being beksit has so the u.k. is macro head winds that in a way were by them ele chal if frpgs i would expect another 50 basis points.

>> you know what's swhaep while everyone else on the planet is from they stayed probably to be a long in a rosed on economy, i think people's excitement about china coming back meant misplace pd think think this with how quickly it would all happen it going to take some time >> we go with a m in they're an old line, old federal blankly types. does it spies you? did you see citadel, charles

swa. joe for me, regular laug npg start regulating it and help us out. you would have heard me say this during 2008 when i was at park will nm for anies to i regulation and charity and i love seeing some of the more mainstream firms get involved here like blackrock. and blackrock, we worked with them on certainly,le it's a digital of tirklein tmg. >> buy any bit join? >> no. sadly.

>> my farer in and i were on the so and you an investor from fin fnl i've never followed to my -- >> still haven't learned >> i mean, i can't -- i can't do it >> do you have bit to you in. >> atted at low as 4,000 >> it started at 8 >> that's not a tig sorgs of your >> el with, i'm just so loaded we have bob dimon here 1 to 2% of your network. i thought you'd be smart >> didn't get there. >> drink, horsey drink. >> good to eyou did. >> i'll send it to you

>> there's a -- i bought the whole -- >> yeah, you're like three derivatives away from stepping up to the plate. don't leave! we're still on tv. oh, did you forget >> when we come back -- >> we're still on tv >> we forget when we come back, what the latest results from fedex tell us about the state of the economy and how companies handling costs right now, a reminder for you. you can always watch or listen to us live using the cnbc app just in case you can't get enough of us stay tuned we'll be right back. lley. 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.

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shares the rv maker winnebago, earnings coming in at an adjusted $2.13 a share, topping estimates but revenue fell over the prior year the company said the revenue miss was driven by lower unit sales in the rv retail market conditions and higher allowances from the previous year that was a pandemic play, too. >> a lot of pandemic plays >> and slumping express volumes

and lower express pricing contributed to the company's revenue miss this is the fifth time in a row sales came in below p expectations the stock down 6.2%. joining us is barclay's senior airlines and transportation analyst. and the market is little concerned about what they're hearing but brandon, there's a lot that you liked that you heard from the company last night. >> that's right, becky thank you for having us on i get it we go through cycles the pandemic just compressed everything, we paid everyone to stay home, bought a lot of things online and that filled out fedex and ups very quickly and everybody is going back to traveling, spending money on airlines the bigger issue here is fedex is going through a once in a 50 year transformation of the business they're merging their overlapping ground and express networks where they have

overlapping pickup and delivery drivers, trucks, facilities. they put a lot of capital into the ground business but the express business has seen lack lackluster volume. they're doing it with a new leadership team, they're looking for an external cfo, the first executive coming from the outside of the company for the 17 years i've before covering. i think we're actually coming out of a cycle here. we could talk pin ventories and why we think import activities will pick up later this year, the company actually guided to that, but this is more about transformative change at the company that we think can more than double profitability. >> i think i read they let go s something like 29,000 employees. am i right about that? >> there's obviously seasonal employees. volumes have been negative for five or six quarters now but i do believe -- we were just

out there last week. imports into this country have been down about 20% now for about three quarters that that's not a sustainable level. everyone is worried about rates and gdp. i think down, activity and supply needs to step up >> you've got a price target of $280 that's more than a 20% increase from where it is right now, and that's before you talk about the decline that you're seeing this morning. what gives you that faith? >> arguably, becky, if they do things right, margins here could more than double because there's all this overlapping operational cost that they have that they're competitor, u.p.s., doesn't. and what fedex has that u.p.s. also doesn't is a nonunion workforce. so, if they can make this right, we actually think profits could improve beyond their competitor, and i would argue that in that scenario, the market cap could more than double here. these are one of these opportunities that we see, going

back to canadian pacific, when they first brought in harrison, what you see is a transformed operation, better profitability, and better cash flow i think the market still doesn't really believe this is happening. >> you think u.p.s. will actually go on strike, i think, august 1st >> well, the rhetoric has been very hot, and for sure, the teamsters understand that there's a lot of inflation in the economy. we think cpi has moved about 15 or 16 points from their last contract i think inflation on that has been a little bit less, so for sure, at a minimum, i think the union wants to keep purchase power parity if anything, this is good for fedex, because if there's a lot of cost inflation at their competitor, there's going to be a big focus on price carol tollman came into u.p.s. a few years ago. she was really transformative there as well, because before, between brown and purple, it was all about service, who can gain the most market share, with kind of an afterthought about what's the profitability of this

business, what's the return to shareholders i think with the change at u.p.s. and now fedex, this is becoming a much better business. >> more focused on profitability. when we return, we will talk about what to watch ahead of the openg lln lltrt. ay tunedwa see this is "squawk box. ♪♪ ♪ a bunch of dead guys made up work, way back when. ♪ ♪ it's our turn now we'll make it up again. ♪

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more than a half hour from the opening bell on wall street. our next guest says the worst of the bear market in stocks is over, but the bad news is this probably is not a bull market yet. steve parker is head of specialized strategies at jpmorgan private bank. i don't know if we're taking you out of context yet, steve, but maybe with that intro. the nasdaq is up 36% can you really tell our people that the worst of thebear market might be over i mean, you wouldn't say that with the nasdaq up 36% i mean, it's been -- that's better than that, isn't it >> i think you have to think about that, joe, in the context of what we saw last year obviously, this is only a -- this is a big recovery, but in

the context of what we saw over the last 12 months or so, this is just markets getting back to normal levels. i think what's more important about the forward-looking outlook and why we think that there's potentially more room to run in equity markets is what's happening on the earnings front. and over the last 10, 12 months, we've been in a persistent cycle of earnings downgrades in terms of expectations. those expectations are just beginning to bottom out and recover, and at the end of the day, we think the bull market can continue based on the earnings support >> did you ever go full bore on telling your clients to buy, let's say, back at the beginning of the year? have you been cautious the whole time >> the good news is we actually came into this year with normal levels of risk in portfolios, which was a little bit painful last year, but having the discipline of living through those markets, we did come in saying to look for some of the opportunities on some of the things that have been beaten up. we had a black and blue list we were talking about some of

the tech names that had been under pressure, semiconductors we certainly didn't go full bore in terms of a bullish call, but sitting on normal levels of risk, complimenting the equity exposure we had in portfolios with the diversification of bonds, we felt very good, and we're still sitting on those normal levels of equity market risk and portfolios. we're not looking, necessarily, to make any significant reductions in risk we think now is the time to stay patient, build the shopping list, because we could certainly get a pullback, given the magnitude of the rally we want to be ready because with everyone saying they're waiting to buy any sort of dip, we think any pullback in the near-term is likely to be short and shallow, so we want to be ready to go >> that's interesting. so, we don't see the october lows, steve? for a while, did you think we were going to return to those? did you think, in october, that it was onward and upward >> i wouldn't say that we were calling the bottom in october

for sure we would have been ramping up risk a lot more aggressively than we did, but i think when we saw the reaction to markets at the beginning of this year, the reaction to a lot of the large cap tech companies in terms of how they were able to adapt their business models, focus on profitability, and navigate the -- some of the market headwinds, andthen more importantly, seeing the easing of some of the inflation pressures, which certainly haven't gone away, but the trend is certainly moving in the right direction. that gives us confidence that whether the fed is looking to potentially have one more hike, maybe two more hikes, we're closer to the finish line than we are to the middle of the ball game as it relates to the fed, and while our base case is still for a modest recession towards the back half of this year, equity markets tend to price in recessions 6 to 12 months before they actually happen, so we think the bottom is in we think we're probably in for a little bit of volatility and range-bound trading in the near term, but certainly not something where we would be looking to dial back risk at

this point >> so, it's june is it june >> yes, it is. 21st summer >> june. you see new highs in the s&p this year, stephen >> i think we do get new highs in the s&p >> i mean, back to the -- new highs, all-time highs? >> i don't know if we'll see the all-time highs by the end of this year. i think over the next 12 months, we'll get there. we're not looking to make short-term market call but i think the trend is still in the upward direction, and so i think we're going to get there, our 12-month outlook will take us back to those all-time highs i think that's going to be driven largely by the earnings story we talked about and i think we're going to get there >> that will be a shocker, and that's really saying something, isn't it it's been the most unloved market all people talk about is it's been like five or six stocks, so it doesn't count we've got to end it there, steven thank you. >> thank you >> appreciate it

and time will tell we got that out of the way june it is june >> it is summer. >> okay. it is summer now too >> the 21st. >> yesterday was spring. >> yes yeah okay, that does it for us today. make sure you join us tomorrow right now, it's time for "squawk on the street. ♪ good wednesday morning, welcome to "squawk on the street," i'm carl quintanilla with jim cramer, david faber, all back at post nine of the new york stock exchange. stocks trading a little heavy ahead of powell, day one on the hill, although his prepared remarks are out. meanwhile, inflation runs hot. our road map begins with the macro picture. powell is set to testify, and fedex sales fall short plus we're watching that ev race we're going to hear what jim farley told our jim about why he didn't hesitate to team up with tesla for that