good morning stocks trying to make a starngsd coming back from yesterday's selloff. we'll get you up to speed on the big market catalysts and the moves you maybe should consider making a move right now. big tech companies reporting. microsoft is jumping, but it sold off yesterday google shares are falling after youtube and others fell short. the u.n. energy crisis growing worse. russia halting gas supplies to two countries. it's wednesday, april 27th, 2022 "squawk box" begins right now. ♪

good morning welcome to "squawk box" here on cnbc we're live from the nasdaq market site in market square i'm becky quick along with joe kernen and andrew ross sorkin. stocks are coming back, and they're come back in a big way they're still concerning the dow is up by almost 4 pun points the s&p futures up by 42 and nasdaq up 137. all of n comes after a huge selloff yesterday when the dow one down by 2.4%, the s&p was down 2.8%, and the nasdaq was the big loser, almost 4% that makes it the worst day since september of 2020. let's take a look at where the markets stand right now from their 52-week highs because the

declines really are starting to build. the dow at this point now officially off by 10%. that's a decline that puts it in correction territory s&p off by 13% the nasdaq and russell 2000 off by 23% that putting them firmly in bear market territory the dow transports are almost there. they're down 19% right now by the way, take a look at some of the big fang moves from their 13-week highs. 23% will get your attention if you're looking at the nasdaq check out some of these. netflix down by more than 71% from its highs meta off nearly 53%. and amazon and alphabet each off by more than 20% through all of this, you've seen treasury yields start to drop just a little bit. this morning, slightly higher. 2.774% so you're talking about the 10-year well below the 2.8 and 2.9% in recent days. >> where's the stack

i think it's time to bring the stack back i've got suggestions too. >> what are you putting on it today? >> the vix because we're going to talk to amy wu silverman about the vicks. it's solidly above 30, and it's not good it's not just a lagging thing. it usually doesn't mean great things about the future. tesla. >> down 12% yesterday. i think it cost elon musk about $30 billion in declines. >> exactly after -- >> $115 billion total. not just for him, but for everybody. >> down 35% from the highs oh, i can't believe it did they do that quickly, or did they -- >> they did. >> now i remember why i didn't want to do the stack anymore because now all i'm thinking about is what's right there on the left. >> pancakes. >> mmm, doughnuts. >> nasdaz tesla is back up at 9.

>> how confident are you that we end up 300, 400, 500 today >> who knows would you make a bet at where we're going to be at 10:00 this morning? >> i can give you a range, up 1,000 or down 1,000. >> i won't bet you on that. >> i'm not really leaning one way or the other i guess maybe it got overdone. okay there is -- i know we probably shouldn't do all the news, but how much of this is really based on -- oh, i know what i'm thinking how about netflix. streaming, we may not blow a lot. what happened? how can this happen so quickly it was the end-all/be-all. all we were ever going to do again is stream and work for streaming companies. >> because we left our house again. >> he basically was trying to

telegraph to the markets they were going to be disciplined about spending. >> 100%. >> but specifically his line was, i don't want to be the winner of spending, i think. winner of streaming. i think there's been a lot of -- i see a lot of people in hollywood are taking different pieces away from it. is he really not going to be spend? is he going to be spending on hbo but not tbs and tbt? >> i think he's sending a good message to investors, we're not going to spend wildly and hope the market rewards that because the market has changed its perspective so draz particularly in a matter of months. >> i have crazy people that follow on twitter. actors and writers are mad about conglomerates taking over and now they're mad at discover -- tbs, and there are going to be no more scripted series? >> yeah. to be honest with you, there wasn't -- scripted series of tbs and tbt had basically all be

come to an end there were, i don't know, you could literally count them on one hand i think what's going to happen is what any rational businessperson is going to do. if you have scripted stuff, it will be at hbo if they want to move it at tbt, why have two develop arms, if you will that was the problem there was so much different -- so much overlap of people doing yauchb times similar things. >> we were stuck on netflix yesterday, again, andrew, and i got nowhere. i ended up on tinlder swindler. >> you ended up on tinlder >> tinder swindler i didn't get through the first episode and i gave up. how many episodes? >> keep going. >> really? stoo keep going. it's one of the great scams of all time >> i felt bad for the person talking in the first episode i felt so bad i couldn't watch

it any further because she was so enamored of the guy. >> she's not the only one. he's swindling these ladies all over europe. >> serious question for you guys is this the end of this golden era for content? my guess would be no, but maybe it's not going to be as flush as it has been for the last several years. >> i think they need more. there's nothing on netflix -- i was thinking about that. there's not one thing i want to watch. >> anybody could get green-lighted. >> like i said, $198 at this point. >> let's use this as a nice segue to the youtube story because this is what let's moving markets this morning. shares of google parent alphabet, lower $24.62 revenue also falling short a lot of this was a function of this the youtube ad revenue that's drawing a lot of attention, it fell well short of expectations.

t the cfo says it fell due to last year's pandemic boost and noted the strength of competitor rival tick tock. google's traffic acquisition cost came in higher than the street expected. that's the metric google pays other websites to acquire traffic. but the important point here is at a moement when netflix says maybe we should be in the advertising business, everyone looking around, maybe advertising is the answer, doing know that may not be the answer either maybe the pendulum has swung a little too much on both sides and it's going to land somewhere in the middle. >> i think that's it you see where everything goes and it's coming back by the way, alphabet shares are down but not as bad as they were

last night it's due to the big buy back what was it? $72 billion?had a lot of trilli dollar companies it's painful as they become -- net flirks has not been -- where is that? is it $90 billion now? where's netflix? it wasn't a trillion, but it's up there. >> it's at 88 now. >> i still ask, who should buy netflix? i still think that's a fair question. >> who should be allowed to. >> at $90 billion. >> and why at this point, if it's not -- >> elon may do that next. >> if it's not the library you're buying, are you buying the talent it's producing to watch? i don't know why. >> you're buying to subscribers. what are you buying when you buy twitter? you're buying users. >> right i wouldn't count on the

subscribers staying or at least increasing year in and year out anymore. they don't think that either it was international i don't know microsoft, we're going to do a quick one here but the shares are higher, but down significantly yesterday earnings of 2.22 theirs beat estimates by 3 cents the company turned in its smallest rev new beating having jumped 10% year over year cloud estimates, the cloud has been doing great despite the pandemic that's the other thing that's happening. little did we know the virus really scared everything -- it scarced d us much at the beginning. the flip side is the good times, and there's so many that are -- >> it's good to see the turn that the stock is now up by more than 5% because we've been talking about how this earnings

season, expectations are so high on the street, and if you miss by a little, your stock's going to be bun issued by a lot. you see a little bit of a gain at least it went down. >> the shares fell. >> they did. >> yesterday. >> oh. >> they fell $10 yesterday and they're coming back up to 14 it was down in the normal session. >> right just speaking to the expectations from the street. >> yeah. >>it's a much tougher earnings season we were talking about that with dan niles yesterday, the expectations and how hard it is to beat the expectations not the bummers, but overall. >> the outlook was up. remember it had a huge intraday swinging yesterday. we're smack dab in the middle of -- >> -- earnings season.

>> -- pullback in market on the nasdaq. >> where are we now? the s&p is at 4175 the numbers from mike wilson, 3800, 38 and 39. >> 38. will nasdaq lead other indexes down to bear market inventory? >> perhaps. >> dow has got a ways to go. it's only fallen by a few. when we come back, we're going to take you live to beijing where a mass covid testing campaign is underway. three big stock stories as we head to brachlkt first up, texas instruments citing covid restrictions on china. that stock is up by 3% visa earnings beat estimates it ee not slowed spending ehn when it comes to travel. the stock's up by almost 4.7%. and chipotle beat estimates as

customers were willing to pay more for its burritos and its bowls. stock up by 3% to 4% you're watching "squawk box," and this is cnbc >> announcer: this cnbc program is sponsored by bdo. people who know, know bdo.

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out with new warnings about the potential impact of the covid outbreak in china. let's get to eunice yoon in beijing. she's got the latest on what is happening. so good to see you this morning. >> reporter: thanks, becky the citywide results of its first round are. in out of 19.8 million tests, 12 pulled samples tested positive, which means the preliminary cases are in the dozens. this low case count is bringing some relief to people in beijing that perhaps the capital won't go into a full-blown shanghai-style lockdown, though, it's still too early to say. shanghai officials say their caseload has eased the city is expected to lift the lockdown in communities with zero cases, they say, though, know details were given as to when that would happen the auto factory said it's going to start lifting its lockdown in

phases starting today. the christmas individual known as yiwu went into partial lockdown after detecting three asymptomatic cases, and yiwu is responsible for 80% of christmas products shipped out of china. guys >> eunice, thank you very much joining us right now to talk more about it is dr. scott gottlieb he's former fda commissioner and cnbc contributor who serves on both boards of pfizer and alum nachlt scott, you hear the numbers, and it's hard to get your head around there 26 billion people where there are dozens of cases. do you believe that, and what do you think happens next. >> well, look, i think it's probably right in terms of what they're reporting. the reality is there is covid in beijing. the city is seated around they're not going to be able to repeat these mass testings china is more of the same. this is where they're going to

be for the foreseeable future with the rolling lockdowns across cities as the virus gets into the cities. remember, people aren't going to come forward if they're infected they're going to try to conceal their infections because if they come forward, they end up in a quarantined hotel and will be there for quite some time. right now china doesn't have a strategy they're implementing these lockdowns. when you're look at the variant, it's worse than the delta variant because even though omicron is less virulent, it's far more contagious. when it gets into ta population where there are low vaccination rates, it could spread very quickly, and there are still a lot of vulnerable people sort of in closing to give you a sense of that, if you look at the population of people who have been vaccinated in china, overall it's 88% they've done pretty well that's a high rate but when you look at the number of people boosted, people over

the age of 60, only 60% have been boosted 50 million over the age of 65 haven't been vaccinated at all they've done a good job of vaccinating the young. they haven't done a good job of vaccinating the older population, older individuals. >> which leads to the question of how long does this last when do they get to the point where they actually have some immunization built up either naturally or through these vaccination programs and by the way, how good are their vaccines >> well, if they build up the immune naturally, it will be very painful they have all the cities like those in shanghai. that's why they've taken these draconian steps. they saw it happen in hong kong. it's going to last in perpetuity the reality is right now beijing is seeded. in a couple of months you could

see an outlook like they saw elsewhere unless they repeatedly test people like they've done and get people in quarantine i don't know how long they can go on for. this is not the way they can run a country. there has to be a different endgame. right now nobody sees it they're not stockpiling therapeutics, they haven't made an effort to secure them, they don't seem like they're going to be deploys more vaccines against omicron. and the vaccines don't appear to be very effective against omicron. that's not a pejorative statement. there's been a drop-off else where, but it's been more pronounced with the chinese. >> let me ask you to put on your hat and tell us how it's going to affect business and policy here if these rolling policies go on,

eunice yoon was pointing out this is bad news for anybody associated with christmas products coming in to the united states it will be bad news for retailers. texas instruments has concerns about this if it's a rolling process, the lockdowns continue, what does that mean for our supply chains? >> i think it means perpetual disruptions like we've seen. i don't understand the policy either they had a chance to employ the mnra vaccine, the pfizer vaccine. biontech obtained rights they had a chinese manufacturer in company prepared to manufacture upward of a billion doses. they made a decision not do that, to go with the homegrown mrna vaccines which they're trying to develop. they haven't deployed that next. now we're going to be moving to the next generation vaccines and they'll going to be look at.

that so they're behind schedule in trying to deploy vaccines that are going to be more effective against the new variants, b 2, b4, b 5 until they get more immunity into their population and particularly protect the older population, which are the ones that will suffer the worst if this starts to spread in preesh yabl amounts like it did in hong kong. >> dr. gottlieb, thank you always appreciate it. >> thanks a lot. okay we've got a lot more coming. job cuts coming at trading platform robinhood we're going to tell you what's going on up next, more of the market turmoil. what's driving it and moves to consider making. we'll be talking with investors throughout the morning on what they're doing right now. ckquawk box" is coming right ba

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robinhood announcing it's going to be cutting 9% of its full-time employees. we've seen if you look at the stock of the company and also the usage, it's quite something, reflecting maybe where the markets are as well. meantime let's take a look at tesla shares this morning. they're bouncing back a bit, but only a bit after dropping 12% yesterday. that declined, wiping away $125 billion in market val yachlgs tesla stock facing pressure to buy twitter. we talked so much about it over the past couple of days. it remains unclear if he's going to come up with that money by telling some of his tesla stake

or boroughing from the shares. lots of folks looking through the agreement last night of course, some of the statements earlier about how those margins and margin calls work and if the stock drops, what happens so a lot of folks keeping their eyes on that becky? >> thanks, andrew. this saturday, a cnbc.com exclusive. berkshire hathaway's annual shareholder meeting will be held and livestreaming on c nbc.com this is the first time we'll be bringing you this live access. you can send your questions to berkshirequestions@cnbc.com. that email address is berkshirequestions@cnbc.com. then tune in live to watch the annual meeting itself. those day's events kick off at

5:00 p.m. eastern time. >> low, 10, high, 85. >> they say their best days of growth are behind them. >> $700 billion market cape. >> doesn't that tell you about the whole meme stock when the market's not going up, people in that realm are not playing -- i hate to say playing. it shouldn't be playing. >> i don't know. why do i have an 85 high that must be closing or something on the two-year chart or something it must be weekly or monthly closes. coming up, both said to report in about an hor from now. i'll still you what to expect. futuring are up almost 400 points on dow.

a big down day yesterday after that stunning reversal on monday is it wednesday? as we head to break, here's look at yesterday's s&p 500, the winners and losers >> announcer: executive edge is sponsored by at&t business at&t 5g is fast, reliable, and secure including the iphone 13 pro with 5g. that's the one with the amazing camera? yep! every business deserves it... like one's that re-opened! hi, we have an appointment. and every new business that just opened! like aromatherapy rugs! i'll take one in blue please! it's not complicated. at&t is giving new and existing business customers our best deals on every iphone. ♪ ♪

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good morning and welcome back to "squawk box" on cnbc take a look at this. the dow looks like it's opening up today, 73 points high e nasdaq up 25 points and all of that, though, as we just said coming after yesterday's sell jauchl here's a look at the moves in the hard-hit travel sector yesterday visa saying that after the "closing bell," it's seen strength in travel spending, but you've got jets blue off 10%, carnival and norwegian off 6 and wynn, 5. a lot of concern across the

board. stocks are expected to bounce back. last night we heard from g.m for this and more we want to get to phil lebeau who joins us. phil. >> good morning. if you take a look at general motors t company posted better than expected earnings for the first quarter and reconfirmed its guidance for all of 2022 it's an interesting outlook. that's the most interesting news when you listen to the analyst mary barra and the analyst the chip is up fly is improving and they're able to offset those costs with a stronger power. a few are raising their estimates for general motors for 2022 lots to discuss with ceo mary barra. that's coming up first i know you'll be part of that interview as well. take a look at shares of boeing.

they'll be reporting its q1 results in about an hour what are we seeing that's first and foremost in minds of memories we're talking about the p 37 max. is the production rate increasing as spectsed they're going to be purking out first deliveries, how much will it be. you have the 737 dreamliner. that's the plant we're at right now. we'll talk about that on "squawk on the street" with dash calhoun. lots to discuss. i'm glad to be back in the field, live her in charleston so we can see it and when thids mike might resume.

>> we will see you in just a little bill. thanks, phil. getting back to the markets, major averages were batter and bruised yesterday even after what happened yesterday. the s&p 2500 losing more than 2% the but the nasdaq suffered the most, plunging nearly 4% by the close of trading tech earnings could impact markets after the closing bell alphabet reported earnings at missed expectations. while mochlt earning beat the street for more on the markets and earnings, let's bring in amy wu silverman, head of strategy at rbg markets. start, amy, because we were talking about the vix earlier and some of your comments. the vix when it's above 30 is not saying positive things on

what we've been through and what we may be facing either. can you tell us? >> it's interesting. with vix above 30, we would characterize its as high regime, joe, i think investsers feel this i don't think you need the numbers to feel the whipsaw on a daily basis, but when you look back at time through 30 years of history, a high volume regime equates to a down market, down an average of 11%. including years like 2008 which were more. as the rates go up and the accommodation gets less accommodative, then we're in this place where the high volatility wheels is worse for turns as well as risk off in terms of investors. >> so it's not necessarily a reflection of what's already

happened typically how long will it be a problem? three months six months >> so one thing to kind of answer that question is not just looking at the vix, joe, but also looking at kind of the vix in the future curve, so looking at not only how volatility looks now but how volatility looks toward the future. so in days where the vix starts to spike, you see the shorts term go higher you're seeing the long-term kind of uncertain as well the key is what investsers will do through this earnings season. we've seen a lot of hedges placed, what's interesting is even yesterday as somethings went down, you didn't see further hedges take place and sentiment get worse even as companies came out and reported worse than expected news. >> sara, i think amy alluded to

i. you don't p need to look to the vix to feel what she's describing you're talking 2021. companies, there are quite a few. there was some room for some of these love stocks to come back to earth, and they have. >> yeah. i think that what we're see right now right there definitely some anniversary blues q1, 2021, was a very hot year. they were on a run to the moon and now they're starting to float back down to earth a little bit >> the three-month, how much is that moving in your view obviously the numbers were were looking at right there, i don't know how much is baden on the --

>> the stay-at-home are over the pell tones and netflix can tell you that in lasting detail. al fa bette, they didn't do poorly, but they didn't do great. their advertising through google slowed down because there's a war happening in russia. do you think that's going to keep happening no, and then when that happens in europe, next quarter you're going to see really different numbers from alphabet. i'm bullish. you have to look at these companies holistically. >> you would say in certain instances across technology, you would be selling some rallies, but buying some dips depending on what name you're talking aboutet? >> absolutely. if you're bullish on pell oton d

others, they're good for you alphabet, i would definitely look there the other places to look are social media in general. elon bought twitter and that means there's going to be a lot of renewed focus on social media. right now social media is the new newspaper. snap is under a billion. i think there are a ton of interesting tech stocks that are off their hiding and still people are interesting in buying >> how should we correlate we know nasdaq went down what should we expect in terms of really active performance for those three indexes? are they going to catch up with the nasdaq, or nasdaq, you know, comes back and getting more in

line with where the s&p and dow are? >> so, look. historically correlations are higher prepandemic, and they're breaking down partially because factors have gone in different directions i think that continues to break down there are four pillars that might make up. one from google yesterday, they also announced buybacks. that's been a poor theme when you start to see that happening, that artificially puts a floor in some stocks. can kind of make those correlations go back to one that is higher and more on the upside. >> hey, ammy, just in that same kind of vein of thinking, tesla being an s&p kpoenl and one that has a pretty big impact on s&p at this point, you see the volatility there how do you kind of fak for for that, especially when the stock

was down yesterday. >> it's interesting because i heard you talking about robinhood earlier. usually in tesla we expect call buyers to step in. we especially expect the retail cohort to step in because that's what they've been doing for two years and they would use a down percent opportunity to use callout options. we're not seeing it as much. i don't know that it's completely gone away this is a name that's very heavy, and so to the point, we don't keep it in the bucket as the rest of the stops because it's call-off -- count that out for tesla. >> very good amy wu silverman and sarah kunts, thanks. good to see you bonita.

>> russia cut off gas supplies to two countries we've got the details next. later don't miss our interview with general motor ceo mary barra also a reminder you can watch us any time on the cnbc app we'll be right back.

u.s. equity futures bouncing back friday and yesterday were like a toilet you can almost hear archie bunker toilet flushes because it gets ugly, although, we're at lofty levels we still notice big ugly 100-point losses after a selloff like yesterday, many times people don't like strength in the next premarket session because it just -- a lot of times it brings in more selling, people that didn't get out yesterday. we'll see. maybe it bounces back. you add friday and tuesday together and you've got big numbers. >> brian was announcing two stocks closed higher yesterday, cadence and the other was an auto supply company, two stocks out of the is it 502 >> we know there are literally thousands of stocks in the s&p 500. >> there aren't thousands.

>> there aren't? >> it's not exactly 500. it's up orr down because a couple of stocks have multiple listings, a&p shares >> look at crude prices this morning. it hassan bn' >> look at crude prices this morning. it hassan been the main story recently, even though we're still above a hundred. when the markets take center stage, stockmarket, we don't see. sometimes the bond market moderates. i don't know what would have happened if we were getting selloffs like this and surging through 3% over ten years. >> right, right. a developing story overnight in europe as well. russia cutting off gas supplies to poland and bulgaria today those companies refuse to give in to vladimir putin's demand that unfriendly companies pay for russian gas in rubles. state-owned energy giant gazprom says supplies will be halted until the payments are made. bulgaria says it's already

fulfilled its obligation with gazprom. poland has repeatedly said it will not pay in rubles and will not renew its contract poland, by the way, has been really smart about this. they've been building up supplies, including becoming the biggest supplier of american natural gas. bulgaria is a slightly different picture. they get 75% of gas from russia and has few remedial ways to replace it if you're looking at the prices in europe, this is on the dutch market here, up by 11% brian was talking about this this morning, brian sullivan, talking about how this translates to six or seven times what we're paying. obviously different measurements that we're using they pay five or six times what we're paying at this point, and there are huge concerns about what happens if it moves to

germany, italy, or even france andrew okay meantime let's talk about the tech sector because investors had to start wondering if th safety and faang trade is gone for good it's the each of the mega cap companies have fallen far from their one and year highs, meta, down by more than half the average slide around 25% for the group. joining us, senior research analyst, dan, it's great to see you. this raises the question, this is where everybody had their money. this is what was moving the indeces, moving the market and do you see an upside from here? >> good morning, andrew. i do see upside from here. we remain selective in our focus. so for example, we continue to like alphabet. we saw the durability last

night. microsoft, if we can put them in the camp performs well with azure. meta, of course, their business is transitioning they remain important to advertisers and users, but they're working on the next chapter there. when we step back, though, and certainly, there are headwinds from inflation, geopolitical risk, we see a lot of opportunity, and that's driven by these structural transformations. for example, the buildout of the digital infrastructure, we saw that with azure and google cloud. the growth of artificial intelligence, we have nvidia, and fraud detection. we'll see what qualcomm says tonight. but we think they remain very well-positioned in the internet of things, this notion of infusing intelligence and connectivity to the broader industrial world

>> dan, i hear what you're saying i think the question i would ask you, 12 months out from now, given whatever you think is going to happen with interest rates and where they're headed you look at the stocks on the screen now, and you can pick one, can you do alphabet if you like, since we were talking about the context of their earnings last night. that stock is where in your mind 12 months from now, fair value >> andrew, woe think that stock is significantly higher 12 months from now and beyond it's driven by the innovation, growth we think the market will look through a lot of the challenges that we're facing and see the innovation and the longer term growth ultimately, it's about the free cash flow generation and i think we'll see through the balance of this year and into next year which the market will price in, the stronggrowth of the free cash flow in the case of alphabet >> would you just buy the nasdaq

at this point? >> no, andrew, my focus and our focus at newberger is to be selective in where we're investing our clients' irreplaceable capital. we're trying to focus on where there's disruption, where there's innovation not all of these companies are going to survive in their current forum. and where we spend a lot of our time is trying to understand what is changing, which companies have the tlintellectul property who is becoming more important to customers, we saw that with alphabet for example, you look at the men and women on the front lines during the pandemic and after, we're looking for very specific instances where we think there's a lot of growth in shareholder value to be created. >> i get it, but the reason i'm

asking whether you just buy the naz, part of what i'm hearing from you is you think a lot of this stuff is just vastly mispriced. and so if it's vastly misprice at this point in the ball game you would think that everything should move, maybe not everything in total, obviously, but when we would talk about those particular stocks, if you're saying to me only one or two of them actually has a chance, that actually speaks volumes about the other three or four on the screen that i think you're saying don't have a chance i mean, you look at netflix. is that something you would even touch? had. >> we think netflix is transitioning the business they clearly have built a very strong franchise but they're in a period where they're going to have to work out what some of the newer growth drivers are going to be to attract subscribers in some of the markets where they're a little mless mature.

management teams have the ability, the power and really they are tasked with allocating capital effectivelily. so we are watching that very carefully to see where we think there's going to be value created. so it's not like a company like netflix or meta cannot survive and thrive on the other side of this but at the moment where there are transitions going on, those companies need to innovate, invest and reaccelerate. >> i'm just wondering whether any of these, they're either continuing to be falling knives or screaming buys, right that's the way a lot of people look at this, either this thing is really on sale or it's really not on sale. this is just the beginning of the sale the sale's only going to continue there's other things on the screen, docusign, zoom, paypal down 70% some odd, those were

the high flyers. is there a market for them now, where you say to yourself, maybe 70% is a deal. >> in the case of each one of those, you take zoom, you take docusign there were clearly benefits during the pandemic. i think those companies do have a role in the world ahead. it is going to come down to their ability to transition into the next phase of growth clearly if we think about the payments opportunity and longer term where they're going, the secular trends are healthy we saw that with visa last night. so these companies are going to have to innovate they're going to have to invest. i look at less screaming by or falling knife. we're very, very selective yes, i do think google and microsoft and nvidia are screaming byes and we have to think about where we get superior performance in a world where there are a lot of

different companies where we can potentially invest >> becky >> thanks, andrew. we want to give a quick shoutout to our squawk pod which received a webby mention. they celebrate the best of the internet each year and we are grateful for the recognition katie cramer is our extraordinary producer who pulls this together along with doing about 50 million other jobs. big shout out to katie and thanks to her. be sure to tune in to the berkshire hathaway annual meeting, you can only see it at cnbc.com/buffett is the address. "squawk box" will be right back.

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welcome back to "squawk box" right here on cnbc let's show you the futures, because they're looking up this morning after yesterday's very big selloff. right now we would open up higher, about 361 points higher on the dow nasdaq up about 123 points the s&p up about 38 pointing it was one of the worst days for stock in a very long time with the dow falling 800 points the nasdaq fell nearly 4%. and check out the bond market

this morning as the ten-year yield continuing to back up under 2.8% right now remember just even last week i think we were flirting with 2.9, at one point even 3% we will have roger ferguson with us later this hour to discuss rates to fed, what it means to markets. let's tell but the oil market. wti crude right now at 101.96, so things creeping up there. now on pace for five straight months of gains of the two single stocks to talk about, alphabet and microsoft, alphabet, of course, google's parent, a big miss in its youtube ad business, hitting sentiment stocks the board approved a new $70 billion buyback but does raise questions about advertising, the advertising model. it's just a situation that

alphabet, youtube specific painting another picture, though, this morning is microsoft. that was a top and bottom line beat it was good news, that stock a lot higher this morning. close to 5% higher we will have a lot more on both of those stocks a little bit later, beck. let's go to mike san toldy he's g he's got more on these wild market moves these moves have been pretty volatile >> that's right. and for better or worse, the premarket, the big question coming into the session is will the bottom of the range hold for the broad indeces. if you look at the s&p, broke below this back in january, january 24th, interday low was right here,

42.22. when did that bounce really take hold when all the mega cap tech earnings finally got through, they were okay people decided maybe there was value there. obviously, it's been a frustrating trading range since then the upper end is basically the minus 5% from theall-time high it's still struggling. also would point out week, also in march got the lift after we got the federate hike everybody was expecting. the nasdaq has been the down side leader just as it has been the upside leader last year. equal weight s&p doesn't have the market cap skew toward the largest companies. it's every one of those stocks weighted equally a three percentage point advantage. why is that? you've got 20% down in the nasdaq 100 etf

all of them, though, if you look at it, they're all basically testing what has been the floor for the year that's why it seems like as we get through april, the market's been unable to make head winds we'll see if we get any relief going into the end of the month. did also want to look at those big two, alphabet and microsoft, mostly because over the last year, point to point, they've been right tracking one another. obviously, alphabet's going to have a tougher time in the pre-open but not so bad, investors anticipated potential weakness for these companies because we got what happened with meta, with netflix. people were on the defensive these stocks took their medicine ahead of time. a lot of people talking about how alphabet still looks very reasonably valued. do too many people believe that, are they hoping as opposed to really analyzing that. >> just talking about that broad overview of the market, the idea that we've tested these levels once a month

makes you think about the air pockets in the market. you're flying around and all of a sudden the buyers disappear and you go down. you do have question about the retail investor, if they're sel as involved asthey had been. especially when you hear robinhood, some of the numbers with tesla we were talking about the options buyers not showing up for tesla. and that's very unusual because they have for the last two years, consistently. >> energy has drained out of the retail trade we saw equity fund outflows. that's a relatively small percentage of how much has been thrown into the market by retail but i do think that's part of the process. one of the elements of that, too, is that retail investors, you're losing on the stock and the bond side. you're not getting that diversification. bonds have a bid we have a little relief on the rate side. we'll see if that allows things to stabilize somewhat.

>> stick around. join us now, carrie firestone. can we start tops down or top down carrie, because the s&p, we were talking about, and you maid comments in the notes about whether the s&p catches up with the nasdaq in the bear market territory. it's down 13 or whether it does not. what are the signs indicating to you right now about whether these averages correlate or whether the s&p makes a stand? >> you know, well, joe, thanks for having me. wh what's technically interesting is how important the top five names, alphabet, google, amazon, et cetera, have dominated the market over the last five years. those five have a multiple of 29 times earnings if you look at the rest of the s&p, 495 names, the multiple is about 16.5 times earnings.

the market sells for 18.5, but it's been driven by those top names that dominate the nasdaq we talk about the s&p selling tor those 495 names, selling for 15.5 times earnings, that's pretty reasonable number that's a level where we can have support and feel as if the market can start to stabilize and move higher. it's those five, and, you know, tesla's predominant now in the market, because it's in the s&p, it's a huge factor, and of course it's a very expensive stock which has been coming down, soyd down, so i think it's trying to find a place of stability. the earnings yesterday were fine visa was very, very strong

we need to see a few more names come in with really strong, reliable, sustained earnings so investors can get back on board. >> if you had to put your finger on what's ailing stocks right now, obviously, it's a rising interest rate environment. but as mike poirnted out, that hasn't been the problem the last couple days, are we closer to the are we getting near the terminal rate? is 3, 3.5 maybe on the ten-year, will that be enough fif the markets continue to swoon, where we don't have that far to go in terms of rate gos going up >> we've been feeling that 3, 325 would be about where we could stabilize. and it feels as if investors are worried about a recession.

when we see stocks slide the way they have because of fears of the recession, then interest rates seem to come back into this, you know, 275, 280 area on the ten-year and that's more comforting to investors. if we're thinking mentally, if the market thinks we're at 4%, 450, 5%. that's very worrisome, and that puts a lot of pressure on markets, so that, i think, felt pretty good yesterday. another interesting point is that investors have used apple, microsoft and google to some extent as their money market fund it's a circuit you park money there while you wait to see what else happens in the market when interest rates go above 3%, there's an alternative can you start to see money move from those big names out that's part of what's happened that's why these stocks are down but having interest rates seem more stable would be very good for the market

>> supply chain inflation, if that were to ease, that would be gr great, but now what do we know about supply chain issues in china? can we count on that that's another wildcard that we have, you know, you have to factor that in to something we don't know >> yeah. >> of course >> i was just going to say, joe, yes. you're right it's not something we can be confident in ha that it's goingo be easing. we've been confident with these issues for a long enough period that you're comfortable to price them in. you don't see daylight in any direction, right it's a don't fight the fed, don't fight the tape earnings are slowing down. there are indications it's about to roll. so it's essentially like we came into the year with retail in institutional investors pretty

heavily loaded it's been valuation compression, textbook in many respects. exactly what people would have thought coming into the year where people said, you know what, we've bet the favorites for two year in these huge top five stocks. let's vet the field for 2022 >> carrie, you never thought you'd miss the reddit mean guy, did you? robinhood did nine bucks, now where are they we hardly knew them a year ago everything was hot, now it's not. >> it's spare change for elon musk that's another company youhe can take over. how about that >> thank you both. thbitcoin moving in correlation with the nasdaq. we'll talk about that with anthony scaramucci as we head to break. take a look at these stats the nasdaq moving deeper into

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welcome back to "squawk box. april's selloff has been market wide, hitting pretty much aever sector check out this chart and then look at bitcoin. both are down. que joining us right now live from the crypto conference in the bahamas, of all places, anthony scaramucci it's good to see you we'll talk about the conference in a second, but let's talk about the price of bitcoin and how correlated, i don't know if you were able to look at that chart, it's almost a mirror image of the nasdaq. what's happening here? el >> it's directly correlated. i mean, they're basically treating it, it's bundled in with the stocks and high-growth

tech, and it will be correlated until it isn't that's one of the weird thing about it there have been periods of time over the last five years where it has been correlated or broken apart from it. i don't think that happens again, frankly until you get a cash bitcoin etf or something really changes now the fidelity announcement is a very big seminal event only 21 million coins out there, 19 or so have been mined fidelity's got $2.4 trillion in assets, in retirement assets, 11 trillion or 13 trillion yoveral. think about those numbers, and i think fidelity's going to end up doing for bitcoin what that corporation did for the stock market in 401(k)s in the '80s and into the early '90s. that could happen over time, and as you see that happen you will see things de-couple.

you will see every one have it but for right now, those two things are in synch and there's a lot of pain out there. when i look at bitcoin i see this fairly stable 35,000 to 42,000 seems to be bouncing in that range right now. >> the fidelity news, it's going to be depend not just on fidelity but on corporation whose do business with fidelity to obviously allow their employees to buy into bitcoin. what are you hearing on that front? how much do you think is going to get pushed by employees themselves who are going to call up their bosses and say "i want this"? >> you know, we had mayor zawsuarez last night he said to win the presidency,

you need 60 million votes, there r 70 million in the united states who own bitcoin. for me, when i look at global wallets for bitcoin. glass nodes is now saying it's over 260 million wallets bitcoin to me has reached escape velocity hopefully i'll be on the show with you guys and we'll be talking about a billion wallets at some point. that's not too far away, could that be three or four years away but imagine that and these companies will ultimately offer this as a solution now what should people put in bitcoin, that's a broader question i've been arguing 1% to 5% of the capital. >> we keep talking bit kcoin, b crypto is a much larger world. how do you think about those

relative to a bitcoin right now? >> so we like those. we have a diversified portfolio that has sew lana. we think these are going to be the future of transactions if i was giving an elevator pitch, i would say listen, think of the blockchain as a delayering mechanism you will be in a restaurant, you will avoid the 3% charges. if an el salvadoren is giving the money to their family, think can avoid western union. they're going to be a big part of the future. >> and then finally, anthony, want to get your latest take on twitter. there is a view that if elon

musk is successful, he might try to turn twitter into a payment platform unto itself, maybe with crypto or dogecoin a and. >> i would never bet against elon musk. i think these people who are betting against him are make ago mistake. he sees something in twitter that he wants to take advantage of i don't think he's doing it for money, andrew. i think this is a notion of creating more power to the individual and what we know about the blockchain is those d decentralizing, imagine if he's able to eliminate the bots, all the garbage on twitter, improve

the quality of the information but also be careful. we don't want to yell fire in the theater. we don't want to have hate crimes on twitter. he's a knowledgeable guy, he's going to surround himself with super talented people. look what he did with spacex and tesla. my money's on him to transform twitter. and yes, will he be using the blockchain for that? i think so because jack dorsey, the founder of twitter is in support of elon musk and we know how jack feels about bitcoin. so i'm very positive on this people are pushing back because he's a quote-unquote plutocrat but that's nonsense. we have to let visionaries do their thing. >> do you think that there's a way to have a town square with a civil debate happening where everybody has their view out completely exposed, nobody's being censored, without turning

into a dark alley? that's really the question >> yeah, i don't, i don't think that and so i think there's going to be rules of the road and i think that elon musk, as i said, he's a msmart guy. he will have learned from twitter's successes and past mistakes he'll get it roughly right it's never going to be perfect we have imperfect people, myself included, who are on twitter it's never going to be perfect, andrew, but i think he's going to get it roughly right. we're going to sit here, if he's able to close this transaction, get it through the regulators, we thought spacex was going to go bankrupt. look what he's doing with twitter now. i think he's going to improve the product, and certainly jack dorsey thinks so, so i'm with him. >> okay, anthony scaramucci, have fun at the crypto conference in the bahamas. >> i almost caught a fly in my mouth as we were talking

it's a great shot from here e. >> it look it is, it looks it. >> veri have so much to say, bui better move on guess can you catch them if you keep your mouth open long enough we have numbers and reaction mi minutes away travel stocks were hit pretty hard yesterday jetblue down 10% and this morning the stock being double downgraded by j.p. morgan we'll keep an eye on all those names and other movers this morning and keep you up to speed on what you need to watch in today's session. dow's up by 250 points we up almost 400 "squawk box" will be right back.

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boeing just reporting. we want to get to phil lebeau. >> this is a miss often n the tn bottom line. four etf loss. revenue coming in light of expectation at 13.99 billion the street was expecting 16 billion. some of that can be explained by charges that we're going to go over in just a little bit. numbers within the numbers, negative operating flow. the company does reiterate that it expects to be cash flow

positive for 2022. this terms of those charges, i made a mention of them 1.5 billion total in new charges for the first quarter, including 669 million for work on air force one. the t-7a you have russia and ukraine comes out to 212 million in terms of the business, and so much is going to be focussed on the commercial operation, some important notes from the company. the company plans to submit its 787 certification to its plan to the faa. that's reason we're at this plant down here in charleston where they're doing work on the 787 dreamliner that's an important distinction. they are, however, when it comes to the 777 pausing passenger plane production through 2023. they will continue building the

777 freighter, then when it come to the 777 x, they are pushing that out to 2025 finally, the company say it is is on track to build 31 737 maxes perfect month. we will be talking exclusively with dave calhoun coming up on squawk on the street you don't want to miss what he has to say not only about the 787 dreamliner and the news they made in terms of submitting a certification plan to the faa, we could see delivery sometime maybe in the second half of the year we're also going to be talking about inflation, the impact that's caused on some of these charges as well at 777 lots to discuss on squawk on the str street guys, back to you. >> we will see you in just a little bit with mary barra

let's get to dom chu, who is looking at other movers. there are lots to talk about >> phil came out with boeing let's talk about some of the fresh ones out this morning. you have kraft-heinz it's the latest food and beverage company to raise its outlook for a key measure of full-year sales growth that strips out the effect of things like acquisitions. as well as a continued rekocovey in institutional food service. then you have shares of harley-davidson down about a percent or so. maybe a percent and a half the motorcycle maker reported profits per share that matched estimates. total revenues, though, did fall just shy of expectations harley reformedity guidance.

it is still dealing with certain supply issue and a check on the mega tech trade. microsoft's quarterly beat, more upbeat outlook remember that meta platforms is on deck after the close today and then amazon and apple tomorrow in terms of its earnings, but after a big, big downdraft, alphabet down, microsoft up apple down fractionally and amazon up about .75. >> one thing we discussing earlier is this idea that expectations are so much tougher on wall street, and i'm not talking about the bottom line and the top line numbers i'm talking about overall, investors seem to be taking a much more critical eye in terms of what these companies are

saying do you have any empirical data to back it up? >> with regard to the overall price action what you have noticed with regard to that, you have to focus an a little bit more on that mega tech services. what you are seeing is some of the expectations, they are actually not that bad. they're actually fairly robust there are a number of companies out there who are starting to raise guidance, and actually earnings are looking pretty good for the full year coming out of this particular move you are seeing more and more companies talk about this idea that they're optimistic about the second half of the year. more companies reference the idea that supply chain issues are starting to resolve themselves if you take a look at the overall picture for how these things are shaping up, it's about reassessing the environment, given that interest rates are still a part of the

story. the last couple days not withstanding, given that interest rates are lower if you do have interest rate continuing to rise in a more steady or predictable fashion in the course of the coming quarter or beyond that you have to change the calculus for how you value thei value these companies. not necessarily that earnings are going to collapse anytime soon the likelihood of a huge recession, at least monday the fo folks i talk to, it's something we're keeping an eye on. in the latest data on weekly mortgage applications, that's out. diana olock joins us >> application volume was half what it was a year ago jumped to 5.37% from 5.2

that is the highest rate since 2009 the rate was 3.17% a year ago. mortgage applications to buy a home fell 8% for the week, down 17% year over year buyers are going in big for adjustable rate mortgages. the average rate on a five-year a.r.m. was 8.2% last week. a.r.m.s can be fixed for five, seven or ten year. they are considered slightly more risky than a 30-year fixed. refinancing just still crashing, down 71% from a year ago the refinance share of total applications fell 35%. a year ago that number was 61% back to you.

how do we see the supply issues, how does that finally work itself out? how long does it take, and what happened in demographically, what can we expect how many years >> how many year the supply of homes for sale coming on the market you mean? >> how many years before we say there's nothing around to buy, that's why prices are so high. we've got the demand and the issue with supply. what happened, builder, supply chain? what caused it >> all of it the builders never seem to recover after the last housing crash. they didn't want to build spec homes, they were very conservative so housing starts were well below demand for many, many years, they're just start being to to come up to that they had land, material costs. and prices are up 21% on a newly-built home that's really hard for buyers coming in. then you have the seller issue

we're in the spring market we should seate tons of sellers, but if you sell your house, what are you going to buy or what are you going to rent that you can afford you probably have 2.5, 2.7% on your mortgage. do you want to trade that for 5.5% probably not you have a lot of sellers sitting there saying, i might have wanted to sell, but i'm definitely not going to do it now. that's why we're not seeing the inventory come up. until the builders really start going with steam ahead and getting more houses built faster, we're not going to see supply come up >> seems like another inflationary force that isn't going away anytime soon. all right, diana thanks, supply and demand. funny how that works, isn't it we've got a lot coming up. big tech earnings, apple, and we've heard from google last night.

let's say alphabet check out the performance, meta down 53% apple down 14%, amazon down 26%, the whopper there is netflix, down 72% and then alphabet down nearly 22%. are all these companies on sale? is this a falling knife? what is this we'll be talking about all of it and what you should be doing and whether you should own these names right after this up next wlie tae will talk withe fed vice chair, roger ferguson all that and so much more as squawk goes on and strengthen client confidence in you. before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully.

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bill wangs has been arrested by federal agents. the mechbn arecharged with racketeering and wiring fraud. you may remember bill wang he had some $20 billion in play. responsible in large part for

the uptick in the price of companies like discovery right before it was trying to mi merge with warner media. this looks like perhaps one of the biggest white collar prosecutions in years. we should note that bill wang, fu remember, a former tiger asia global guy was, pled guilty to insider trading back in 2012, and interestingly and of note, he was responsible and was in business early on with kathy wood in helping her launch some etfs there will be a lot of eyes on this case and what it all means and lots of other e-mails and texts and other traffic. a lot to watch here. meantime, we'll try to bring you some more news on that as it

comes. we have gm ceo mary barra with the earnings expectations for this year. profits and margins dipping. we're going to ask her about that and so much more coming up right here on squawk and then later, kyle bass on china's lockdown and the supply chain, as we roll on this morning.

welcome back to "squawk box. the consumer showing little hint of slowing down. good morning, steve. >> economists keep looking for what they think they need to see. but it's hard to find, meaning the fed has something of a brewing consumer problem i'm told strong balance sheets have consumers ready to weather the market entertainment and travel in the credit card data have been standouts. the increase in gas spending, this is important. it's below the increase in gas prices that suggests some economyizing.

and there could be more interest rate increases and autos, the other leading interest rate sensitive sector, it suffers from supply problems, so there may not be much weakness there as it rebounds from these artificial lows we have and then at jeffries, in a piece writing this underlying resiliency of the consumer means the fed will have to be even more aggressive in order to dampen demand and slow recession. at some point the fed's going to need to get the consumers' attention. >> what are some of the data points we will hear about that may give us an actual read on the consumer that will impact that decision. >> we keep following the high frequency data it was my second report where i was looking for it, didn't find

it we'll get personal income and spending this friday next week there's a bunch of consumer names that report robert hum, our earnings maven is interested in, starbucks, shake shack, marriott, some consumer facing names that may give us a sense of are consumers meeting the higher prices, but are they going further that's the interesting thing it's one thing keep pace with inflation, but it looks like consumers are keeping pace with inflation and still finding ways to spend more. that may be the other thing to watch, which is jobs the jobless claims numbers have been very low. we get another round of that tomorrow morning then of course we're pointing towards next week's jobs report where it looks like people are still looking for the unemployment rate to ten to decline. >> okay, steve liesman, we'll continue this conversation with a very special person who knows

a lot about it, becky, right >> we bring in roger ferguson, former federal reserve vice chairman and a cnbc contributor. this is a confusing time how would you way in on the perils here and what the fed should do? >> i think the peril is visible for all to see the market expects inflation to remain high for decades to come. you just heard a good report from steve on the forward momentum from consumers. the fed is probably feeling that it has to move promptly and quickly to get ahead of this they're behind the curve, i think they know it, and the only answer is to see several move the up i'm expecting one, probably at least two 50 basis point moves but that's where i think we are right now. >> how much of this has already

been baked into the market and i ask because this week, even as the fed's in its quiet period ahead of the next meeting, you're watching yields come down. we went from 2.9 to just above 2.7% does that tell ut myou the markt understands all of this? >> i think the market understands the fed is going to move, because the fed has said that and i think they understand it the other thing, and you talked about it a little earlier is to some degree these equity prices are coming down in part because of expectation of higher interest rates so i don't think 50 basis points at one or the two meetings is going to be a surprise >> that's what i'm trying to get at i'm sorry, i'm sorry if the fed does what we anticipate, do you think the market's already moved or is there anything the fed can say next week that makes people reconsider and say whoa, wait a

second we've got to push these yields back up? i think the market is expecting what is the most likely outcome. what the fed might indicate, and we'll see what those words sound like is a sense that this is going to be a real campaign, and indeed, we'll start to hear what they say in terms of the number of moves, the base so if they really start talking about thing like a 75 basis point move, which i sthink is highly unlikely, i think the market is priced in these 250s, not much to come from a downward leg here, does that make sense >> yeah, it does it makes perfect sense i was listening to a conversation this morning about the ecb and that they've been so much more dovish on this stuff they have one mandate, and that's inflation inflation's above 7%, and think have to start worrying about their currency at some point, too. >> i agree to be fair, while they have one

mandate, banks recognize that there's a duality about what they have to worry about and europe, closely to the front, more likely to concern, be concerned about the risk of recession with energy prices, energy supply now under threat in ploipoland and other places the ecb is also aware of the risk profile which i think is somewhat higher on the immediate recession front. i think there's a risk of recession in both the u.s. and the ecb zone but i think the ecb is more attuned to it, because of the geopolitical context in which they operate, right on the front lines, vis-a-vis the war in ukraine. >> roger, earlier this morning we spoke with dr. scott gottlieb, his best assessment of these lockdowns in china is they continue as rolling lockdowns, but they don't have any way of really addressing things because

they haven't prepared, they don't have any vaccines that are working right now. they haven't gotten booster shots to shots out to a huge portion of the population if that's case, it's going to create all kinds of problems with the global supply chain for a long time to come. this isn't going to get cleared up like we thought it was going to those are problems the fed can't address. what do they do? >> they have to address what they can address, which is inflation, and the fact that the supply chain issues are certainly out of their control however, they're going to have to worry about bringing demand down gracefully if they can to align it better to the supply situation that is very, very complex and tricky so this is going to be a really challenging time you know, they don't want to create a recession they don't want to go too far, but they understand that, you know, the supply chain issues are being met as you've heard

from others, by consumers that have flush balance sheets, by labor markets that are tight as a drum, and something's got to give here. from the fed's standpoint, like it or not, all dhthey can do is try to focus in on getting supply and demand into balance they have to slow the u.s. economy in order to reduce the recession pressure which is clearly a clear and present danger >> thank you >> very tough. thank you, becky coming up, general motors reporting first quarter numbers. as we head to break, here's a quick check on the futures they're up 100, 120.soff.

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good morning, and welcome to "squawk box" right here on cnbc where we're live in times square i'm here with joe kernen and andrew ross sorkin

s&p futures up by 15 the nasdaq up by 30 points remember, this is coming off steep declines yesterday the thanasdaq was the worst we'e seen since 2020 in terms of a single-day performance for the nasdaq we are talking about the ten-year yielding 2.794% people are buying treasureies at this point if you are talking about where we've come, the dow down by about 10% off its 52-week high and that's best performer, believe it or not. the nasdaq and russell down by 23%. and the dow is down about 19%. >> let's talk some earnings. perhaps this one's going to be in focus

boeing's out it still says it expects to be free cash flow positive this year detailing a billion five in new charges. that includes 6$670 million the stock now off close to 5% this morning other company news, boeing getting ready to submit its plan to the faa for the 787 the company also saying it's pausing its 777 passenger plane production through 2023. and you don't want to miss an exclusive interview a little later with ceo dave calhoun on ska squawk on the street, joe? >> that stock is in reverse, andrew that would be a new low today.

52-week. that is, a lot of people recommending boeing over the last 18 months or so as a rebound play and that's a new low, 52 week. as i said, i believe get back to the broader markets, as we come off the nasdaq's worst day in year and a half 2.75 might look okay do the math there. that's not bad, right? >> yeah, if you're going to get it back, there is an alternative on some level. corporate bonds up 4% if that's your taste now we talk about tech weakness. it's obviously not been the only thing hampering the market but clearly the biggest swing factor has been the giveback here's how you break apart the technology sector, the se&p 500 apple is almost a quarter of the

sector sector you see they've rolled in sequence first software, the big clouds and such were the first to go. then later on, semi conductors join apple has managed to really withstand this polar gravity so far. it closed yesterday on its 200-day average. and of course the question is, can it continue to do that or are we in one of these environments where you kind of have to have everything participate to the down side before you can say that perhaps something has ended. now i said tech's not the only weak point look at the tech sector relative to the s&p 500 banks over the last two years, oddly enough, right in synch with one another, although not right along the way. you saw this big separation at times where tech was outperforming banks as rates were low and it was more of a

disinflationary. you see banks outperforming when people got excited about the reopening. here we have them both going down in concert, not really for the same reasons, but recession fears are a big deal as bond values have gone down, it's not just about higher rates are good for net interest. it's other factors driving down rates right now, one of the answers to why we haven't had any kind of perfect rotation to support the broad indeces, joe >> you've been watching boeing, mike, just out of cure iosity $98 billion. that's a market cap of like the preeminent u.s. manufacturing concern. and it was 440 now at 160, indicator 160. that's a 64% drop. from the highs in boeing >> ge's down below 100 billion

as well. you know, i think people have been, obviously prematurely saying you're going to get the backlog rebuilt, and i think it also reflects that at the highs, boeing was give and ton of credit for basically having this really clear path to high free cash for years to come that's why the give back has been that more dramatic. >> same people still running, down 65% >> >> some reopening play global travel re-emerges let's talk a little tech, though, because it has gotten hit so hard. they named all trading well below. alphabet slammed after earnings last night microsoft popped on solid reports. later in the week we get apple and amazon and others.

joining us is gene munnser is this the beginning of something great? >> microsoft earning, their outlook is actually favorable, even for google. google is down because of the impact of eastern europe on youtube. it's the same growth that we've seen the last four years microsoft talked about strong growth off of difficult comps, and so what's there not to like with these results, and the simple take away is not much, except one fine detail, which is the magnitude of the upside of both of these companies has been diminishing over the past year if you look at google, they exceeded revenue expectations by 10% in june of 2021. and now they're essentially in

line for the march quarter microsoft, a much more stable business, exceeded by 4% in june and was exceeded by 1% in the most recent quarter. and the reason why i mention that as kind of the beginning of a transitory period regarding tech is that we have to look at the curve in terms of what does this tell us, this less upside and ultimately, the market is thinking that it's not about the march quarter. may not even be about the june quarter. it's about tseptember and december quarter and the recession that may or may not happen but i think what will probably happen is there will be some sort of relief around this earnings period. i think apple's numbers will be strong and then investor also settle back into this uncomfortable place and wonder what's upside going to be in the june quarter and ultimately, are we going to get into a recession. just to finish the thought, andrew, these more cautious view

over the next three to six months doesn't change my optimism i think these companies are going to have a fantastic 2023, because ultimately, the base is going to be reset in 2022, and i think that's going to provide some strong growth, and that upside will return in 2023, but the simple take away is i was relieved last night, but i don't think we're out of the woods yet. >> so, gene, for those hanging on, it sounds like continue to hang on. but if you were thinking of buying in now, it sounds like you're saying you might want to wait >> exactly i think that we're going to be putting this basin to some of these tech companies over the next three to six months, if you have more, i would consider that anything less than one year, i consider that a trading mentality. and, again, i'm basing it on a belief that there will be a relief and then this concern is going to reemerge around the

recession. that's exact same thing that we saw three, four months ago when there was concern about rates going up and then there was relief and then concern again >> obviously, everyone's concerned about the advertising piece on youtube how much do you that i is youtube-specific and how much do you that i says something about the larger economy right now? >> i think google's message on the larger economy was favorable. it was very favorable. to answer your question, i think youtube was a 600 million negative impact from eastern europe if not from that, they probably would have come in line. and again, that 24% growth number, there was a piece within that 24% growth for the advertising business, that's really the barometer, it's the beauty of google, the barometer for how advertisers are thinking something that came up on the call last night, was that 24%

growth stoked by advertising dollars switching over because of some of the change apple's made with their ios. and the cfo said no, that's not the case they didn't see that bump which says that's a real number, that 24% number and i would say all systems go, everything looks stable when it comes to tech. that doesn't give me comfort about what could come noin the next three to six to nine months >> gene, thanks for that analysis we'll see what happens to multiples. gene's going to be back later on "fast money" to break down meta's results i'll be watching andrew, thanks when we come back. an arrest in the case of phil hwang. and we will talk about growing electric vehicle competition with gm's chair and ceo, mary

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and not just for my shows. get $400 off an eligible samsung device with xfinity mobile. take the savings challenge at xfinitymobile.com/mysavings or visit your xfinity store and talk to our switch squad today. news out this morning from our parent company, comcast. it's forming a joint venture with charter to develop a next generation streaming platform that will be offered nationally. comcast is going to be licensing its streaming hardware to the joint venture. charter is going to be a 50/50 partner in that joint venture and make an initial contribution of $900 million funded over multiple years for this. this is technology, the hard ware and software that's already available, already out there for millions of subscribers. comcast uses this. this is the voice remote where you can say "show me

yellowstone", or, "show me live content. you can think of this as a competitor to roku comcast shares up about 32%. if you look at roku, it was down probably on the idea this is a much tougher competitor. everyone wants to be the one who shows you how you get access to all these apps it will have a lot of apps including peacock, but it's already available for millions of subscriber, and this is a way to expand that national platform and extend to cox and providers in canada, too >> it's a pretty interesting play for comcast to get to cable operators and places around the country that they haven't been similar with charter meantime we have white color new, probably the biggest white color pros dmugs decades, bill

hwang has been arrested by federal agents patrick hal began also arrested, accused of manipulating stock prices higher. at one point there was a view that they had something on the order of $20 billion in play that had pressed and pushed up the prices of stock, if you remember like discovery, right before they were trying to merge with warner media. also viacom, as they were discussing their plans, so lots of eyes on this. this is a former, i don't know if we call him a, a tiger cub, he was part of tiger global or tiger asia global many years ago. we should say he pled guilty in 2012 to insider trading and interestingly, we have a clip, he was one of the original folks who helped seed kathy woods

rtfs take a listen. >> i met him, actually through a church we were both advisers to what was called the financial services ministry, younger people going throughout financial services industry, especially in new york city. we were exchanging stock ideas back then, and i know he bought into one of the stocks in which we had a high degree of confidence, netflix, and he hadn't been involved at all in u.s. stocks. so yes, he did provide the seed for our first four etfs, and we are very grateful to him >> and lots of folks will be watching this case and what it means. joe? >> and the other interesting thing is the market manipulatation part. if you raid the charges out

today, they would say hwang would routinely buy and sill more than 15% of a stock's daily trading volume knowing it would influence the price and that hwang himself put in this requirement allegedly that any additional exposure, once think got to 5% position of the stock would have to be done for a return swap so you wouldn't have to publicly disclose any of that, that's probably what this case hinges on not trying to skirt around regulatory requirements but basically completely flouting them, making it so you don't have to tell anybody what you're doing. >> also raises the question whether the fcc needs to change some of the rules. they give you exposure without declaring that exposure, flight. >> exactly let's get to the big interview. gm stock doing well. the first quarter slipped and

the company moted cnoted challes ahead and phil lebeau joins us with the special guest >> let's bring in mary barra youheard what joe said you reiterate your guidance for 2022, but you're seeing real challenges out there, particularly when it comes to commodity cost and inflation give me your sense of the market right now and those challenges that you're seeing >> sure, well, phil, it's great to be hire, and before i get into that, i want to thank the entire general motors team for helping us deliver a very strong quarter. we're seeing strong demand for our products and that pricing which we've already seen is allowing us to really tackle some of the issues around inflation and some of the higher commodity cost, so that gave us the confidence that we can reaffirm our guidance and we have levers that we can pull the vehicle the silverado and

sierra that's what we're focussed on. and, again, we're going to keep moving forward and executing, not only the ice portfolio that we have, but accelerating the evs that we're putting minto the market >> i want to talk about pricing real quick you're able to pass some of this along, ultimately to the dealers, who are then passing it along to the customer. but if we see an economy that is slowing down, potentially sliding toward a recession, do you start to lose some of that pricing snowshower. >> we are seeing a pricing environment stronger than what we thought at the beginning of the year i think it's because of the general motors, the strong product portfolio we have in the market right now we're still very constrained almost every truck that ends up at a dealer, the vehicles are moving quickly or are already

s sold that's a good place to be in as we work through the inflationary pressures. >> you already mentioned you'll be pulling forward your ev production as much as possible when you look at that type of outlook for production and sales, there are more than a few people out there who are saying, a, can you get the battery production up to speed in time, and b, are the commodities that you need for battery production, for ev production, is that market going to be there i know you've made some side deals or exclusive deals with some of the suppliers, but there is concern in the market about that >> well, we are well on our way to executing to make sure that not only can we deliver 400,000 evs, when you look at 2022 and 2023 on our way to a million by 2025, and we're seeing strong demand for our products. the hummer ev and truck and suv already have 60,000

reservareservations 140 on the silverado the lyric, again we'll start taking reservations because of the initial limited edition is already sold out so we're seeing strong demand for our products let's talk about the supply side our first battery plant comes online this year we have another plant coming online next year and another the following year, and one more that we'll announce shortly. so we're really controlling our own destiny here when we look at balancery cells, and then for the raw materials necessary to produce evs, we have been doing wlrks it's strategic partnerships and joint ventures, we're working to secure the supply that we'll need not only for the 400,000 but for the million. so we have confidence that we'll be able to execute on our plan >> on the conference call last night, you guys announced that executive compensation will be tied in part to ev sales and the development of your ev portfolio. any further discussion by the gm board of saying, let's nuput ths

in silos in terms of profit and loss when is it comes to evs, when it comes to ice, when it comes to other divisions >> we are evaluating a number of things as we move into this all-liball electric future. we have a team, we did that in the '18-'19 time frame we pulled outall of our softwar together we have flexibility as to how we want to move forward we want to make sure that we have transparency in the numbers that show our progress, not only in evs but in our autonomous activity as well as software services and subscriptions >> mary, how concerned are you about the covid lockdowns in china and the impact that will have on the chinese market, which is huge for general motors and the demand that may be

either delayed or pushed off a ways for 2022, in china. >> well, it's something begin that we're watching very closely. you know, we saw some green shoots in the last few days with a commitment from the government to get plants operating, automotive has been deemed an essential business so getting our plants running is going to be important, and then also the supply base so again, we're cautiously optimistic we're watching it closely, but we believe our china business will be back to pre-pandemic levels once we get to a more steady state and get rid of some of the supply chain challenges that we have we have a really strong ev port portfolio rolling out in china as well. we already have the number one selling vehicle in china which is part of a joint venture >> hey, mary, the most profitable sales that you have in ford and a lot of others are big suvs and trucks. has there been any indication that consumer demand for those

types of vehicles have dropped as gas prices have risen in the past it's been pretty closely tied to that >> i think there's a lot of different factors than there was, you know, back in the '08-'09 time frame first of all, our trucks are much more fuel efficient we're rolling out a brand new chevrolet p p and we're seeing strong demand. at our dealer lots, we have less than 12-day supply that gives us confidence that our trucks will be selling we watch this carefully and we have a very good product, too, with our mid-sized utility early days, but i think because of the more efficient fuel and consumers indicating strong demand, we not seeing any impact for our trucks right now >> meaning you're not changing

anything you're doing in terms of production at this point? ver i have to admit when you see gas bill at $100 at the pump, people get sticker shock over >> we are not changing our plan. we think there's pent-up demand for our trucks and with a new one coming out, we're well-positioned as we move into this mary, were you talking about that pent up demand out there not just for gm but all autos. his to historically, auto sales move with consumer confidence if consumer confidence continues to slip, at what point do you think becomes demand destruction in terms of auto new vehicle demand for the industry overall in the must. >> there are so many factors that play into that. we're watching the economy closely, inflation, interest rates. and so we'll continue to

monitor, and we can adjust our production of course, but right now the demand we see, we're running everything full out, everything we can build, we're able to sell so it's hard for me to predict what situation will cause that, but we're watching everything carefully. but right now we're really pleased with the strong demand for our vehicles >> and in terms of the ev demand, and i know early on, we were still this that reservation phase s t phase, is that slowing down at all? or are you seeing the same cadence for reservations for evs and the plans that you've laid out over the next year, year and a half >> we're seeing strong demand. it grows every week. hummer had one of its best reservations since we first put it out with all the attention it truly is a super truck. strong demand for the hummer we started in the month of april that we're producing volt evs. and we plan to sell more volts

in the u.s. or north america than we have in the past that's about 40,000. globally, about 50,000 and then the sierra ev truck is also growing every, every single week week, and we're at 140,000 right now. and it's retail and fleet customers. four-wheel steer, faster charging times and a larger cab tcab, it is a truck people are very excited for. >> we'll be watching it and tracking it. mary barra, chair and ceo of general motors joining us from the company's headquarters in detroit, andrew, i'll send it back to you. coming up, insight finto the latest market pain check out three of yesterday's hardest-hit stock. tesla, ge and warner bros.

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just about an hour to go to the opening bell on wall street. dom chu is here. a lot of this is on earnings >> we're going to start with one that just came out in the last 15 or 20 minutes or so and that's with norfolk southern right now the shares are up 1.75%. norfolk southern came out with results for profits and revenues that both topped analysts' estimates. they were shipping a lot more coal, believe it or not. that's one of the big things they're making more money from that and their intermodal business, that shipping from trucks to train, using multiple forms of transportation those shares getting a bit of help from that and remember that transportation trade has been a key focal point

for a lot of traders and investors out there to see if that signals anything about the broader economy. also in yesterday's trade, real outsized losses as an industry overall. very big losses yesterday. qu we're seeing a bit of stability. norwegian cruise line up fractionally darden restaurants, all names that had outsized losses yesterday, tied to that selloff on risk aversion watch the travel and leisure stock today. as we often, do check on the most popular ticker search and it's always big on a down day. where people are searching tor these particular quotes, microsoft, no surprise, was the number one searched ticker, tesla's always in the top ten. and we know alphabet, meta platforms and apple all in the top tena as well

wti crude has fallen on that list and don't see as many treasury yields. but it's on my twitter feed at the domino >> good, so you didn't leave qui twitter. >> i'm going to be here for a while. >> you didn't threaten to leave if this terrible outcome came to pass, which is great >> i'm not quite as mellow dramatic >> kyle bass, i do want to talk about china, and it's horrible what's happening over there, kyle, and we've pointed out, i want to know just on, in terms of the markets how big a risk it is to the globe right now. but also i just can't help thinking about how china handled

this right from the beginning in looking at what's happening now. we thought that some of the actions that they took initially were smart and prudent and now it seems like they're where we were two years ago, and they have a population that really hasn't seen a lot of the virus, three rhett clirks and an elderly population now that seems like there's going to be a lot of misery and death that maybe could have been avoided. how do you view it, just in terms of, i mean i would never say come uppance, but they did export it while they shut down their own country, and it's sad to see what's happening right now, and i feel bad for the chinese people >> yeah, i mean, given the regime that commits genocide and crimes against humanity, again, we can talk about that until we turn blue in the face, but i think what's important to note is china didn't have any problems with the virus in the

first two or three rounds of the global pandemic. and now it's pretty convenient that they're having trouble with the virus at a point in time in which food prices were at a multi-decade high, and oil prices were at a 13, 14-year high or almost there. you know, joe, and maybe i sound too cynical, but china, the one thing that they are desperately afraid of, and the regime is desperately afraid of is high food prices and high inflation and what the virus forced the u.s. central bank to do was grow our balance sheet from $4.5 trillion, almost $9 trillion we printed more money in the system, so we created this global inflationary boom going on right now, and china needs to buy food every day they need to buy oil every day, and they have to pay dollars for it in the end, this is really

hurting xi you have to remember, tiananmen square protest which turned into a massacre, the chinese government killingity its own students was basically based upon food availability and food pricing. where we are today with a global potential, call it global famine, with many of the foodstuffs and food items around the world are in flux due to supply chain and the war between russia and the ukraine, i think china's panicking, and i think these shutdowns might have more political rationale than they have, let's say, scientific rationale. >> can you, one of the ramifications of all this has been serious moves in currencies that could have wide ranging effects, and i'm thinking about what's happening with the yen and what that means for our debt here and what the fed's trying

to do. and it's, things are not moving in a positive direction for a lot of reasons, but what is the down side to some of these currency movements >> yeah, what the central banks have realized is they made a faustian bargain you look at japan. it's really interesting to see the japanese ten-year rate at 23 basis points and the u.s. ten-year rate at, call it 275, wherever that is so we're a good, over 200 basis points higher on our en-year now, because we've allowed our rates to move up, trying to squash inflation, and japan can't allow that it will break them fiscally. what they've got to do, as you've seen corona, engage in unlimited bond buying for where they need the boj to be. every bond they buy puts more yen in the market. and the yen immediately searches

for high yield in the u.s. and elsewhere. so the yen has gone to 127. >> 128 to the dollar the central banks have to try to maintain confidence, and they're just going to let the currencies flap in the wind so whether you're looking at the yen or you're looking at the hong kong dollar or the chinese yuan, what you're going to see is much larger stressors on the currency side, because some of these countries with such high debt to gdp can't let their rates move as fast as we are i don't think the fed can move rates the distance they say they're going to move our rates, and i don't think they can pull a hundred billion before we have to about face and start cutting. >> if we bring this back home, we've seen fnasdaq 23% is that,

is the sentiment shifting to where we've done enough and there are individual names down a lot more are we in the process of making a bottom your view? >> i don't think so. i think the bottom will be when the fed starts to talk about pausing. i know all we hear now are 450 basis point increases can and then 75 is not off the table concurrently, with shrinking the balance sheet by almost 100 billion a month, and they're talking about potential amount bs sales, so the u.s. stock market's not going to find a bid until the fed talks about pausing. the question is how important is our equity prices to the fed vis-a-vis u.s. inflation and inflationary fears, because we have inflation is a monetary phenomenon, and then it becomes a psychological phenomenon and i think we're still at the beginning of the psychological phenomenon you look at our country and

there are still all-cash buyers for houses out there the demand hasn't come down very much, even though you're seeing the mortgage refys. the bid, if you talk to brokers, is as high as it's ever been the fed's trying to stamp that out, and unfortunately, the negative consequence of such are stocks i don't think it's time to buy stocks until the fed decides to pause. >> i could argue, as the devil's advocate that they have feet of clay, the market's already doing what the fed needs, it's already down from almost 3 to 2.75 there's an election coming up in november i know the fed is not, you know, overtly political, but they could, they could pause there near term. if things continue to

deteriorate, i know there's not a fed put anymore, but with the election coming, there's going to be immense pressure on them to pause or at least talk vlasic the as if they're going to pause the inflation, it's already out of the bottle and think won't do what they need to do, but i can certainly see them pausing before they should >> sure, as you know, we're in april right now, and the elections are in november. that's a long period of time, joe, between now and then. and you know, the question is what is the fed's tolerance for asset price declines in the stock market and you just brought up the fact that we're staring a midterm election down in november. you know, given all of the polling the way it is now, it will be one of the largest red waves in the history of the united states. so is the fed trying to do everything it can going into november to keep those numbers down and i think the answer's yes and unfortunately, your stock

portfolio will suffer if they're really trying to normalize, you know, printing 40% more m2 clearly the fed overcooked it. when you make 40% more money, the price of everything goes up about 40%. and now they're trying to unwind that, and i don't think they'll get very far >> hey, kyle, i just wanted to go back to china for a second if i could. you've been on our air multiple times and been very critical of u.s. k. u.s., i'm talking disney, nike, not willing to speak out and that china has too much influence over those companies i'm curious what you think of elon musk in all of this, especially now that he's going to own twitter >> yeah, you know, look, tesla has a large operation in china and in the past, musk has

defended china i think for political reasons. you know, it, if you take the time to read everything there is to read about what the chinese are doing to their own people, the chinese government, and their kind malign intent all over the world it's really inexcusable to engage in any kind of a major relationship with the genocidal government and the only reason we do it is because we're trying to line our pocket books when you look at disney, disney decided to take a stand on a domestic sexual orientation issue while at the same time thanking the secret police where the genocide's going on, where they filmed "mulan." disney's the most hypocritical large company in america, apple's one of them. tesla does business mr. in chin musk owning twitter. they have valid arguments that

we need to make sure that the relationship with china, the iranian government and north korean, we need to make sure there's not undue influence on our public square which has become twitter, and i think your question is a great question and one i think musk should answer to publicly. >> and the headline today, president xi, we're clamping down, but you make sure we beat the u.s. in gdp. that's a strange edict to be looking behind you what's, who cares whether they beat us or not they should do what's right for their own country and for their own people kyle bass, thank you good to have you at "squawk box. "squawk box" coming right back e, so you know all you need for recovery. and you are?

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want to get down to the new york stock exchange right now. jim cramer joins us now. i have four items, two minutes hard to do microsoft, alphabet, meta. >> unbelievable, microsoft >> and bill wang >> bill wang that's a perp walk i think the bill wang thing is extraordinary because it just shows you, andrew, no matter what kind of compliance we have, no matter what people are looking at, you can still have a guy -- you cannot predict fraud. i think that that is the great lesson that the government has to recognize we can't predict fraud microsoft, what can i say? azure amazing. amy is great there were clowns selling the story before amy she's always stabilized the stock. i think alphabet is terrific

did we think ukraine was annexed to germany there are countries in between gm, i think she did a good job, people feel like she didn't sell too many cars, raw materials boeing, it's a duopoly >> jim, you did five items in two minutes. thank you. we'll see you in a couple minutes where you'll probably get ten. >> mattel? real the guy's booked tonight we cancel? if so, i have to scramble and get andy jase. sorry. i referred to that interview 100 times. 100 times. >> thank you, sir. >> you're welcome. >> see you in a little bit joining us right now for more on the markets is jim paulson, chief investment strategist for the litho group

people get nervous with stocks down, volatility up, but you say everything is good how is that? >> you know, becky, this is the fourth time we've been down to this level, and i thought the first three times rp which were emotional bottoms, would be enough to put the lows in. i don't know if the lows are in. i kind of suspect they are here. the vix has been well above 30 now for the first time since thanksgiving in each emotional bottom it is tough. i don't know if we have more to go on the downside it certainly would be possible here but i think we're at peak inflation, and because of that, we're at peak fear and i think both are pretty close to rolling over. if inflation does roll over, i think fears will ease and i think that will set up the second leg of this bull market people are worried that the fed is behind the curve in treating inflation. but the reality is the fed's

becoming increasingly irrelevant because policies across the board have been in major tightening mode for the last 12 months, a big slowdown in money growth, a big rise in the u.s. dollar, a big flattening in the yield curve. and every yield in the economy except for one lonely interest rate we call the fed funds rate has been significantly increased. why should we worry about what the fed will do with the fund rate when the one-year yield is at 2%, the two-year at 2.65%, the ten-year at 2.75% and the mortgage rate is at 5.50%? that's why the stock market has been struggling. i think the signal is about over which means we'll have a soft landing and a second leg that's where i am, at least. >> we had two analysts on this week, katie stockton and mike wilson, who said they see a bottom closer to 3,800 if we

fall below these levels. that means you still have about another 7% or so to go for the s&p 500. would that shock you >> no, it wouldn't shock me. that would be right at the 20% level, the cusp of a bear market for the s&p 500. that could happen. i have no way to know it won't but i don't think even if it happens it will last very long i still think the s&p 500 will be that close to 5,000 sometime before the year is over this year i wrote at year end i thought we'd range between 4,000 and 5,000, and i still think that's likely we could go lower here there's a lot of fear. but combination of a lot of fear with ongoing solid profit, income, job fundamentals with strong balance sheets in the household and corporate sector and even the banking industry i think is a dynamite combination to think about what you want to buy today for six months down the road rather than what's

going to happen in the next six weeks. >> and there is a soothing start to this wednesday. jim, thank you always great to see you. >> thank you for having me >> dynamite! >> dynamite! >> he's back back on all the commercials. the dow up by 227. that does it for us today. it's time for "squawk on the street." good morning wednesday morning. welcome to "squawk on the street." i'm sara eisen with jim cramer carl has the morning off david is on assignment we have an exclusive interview with the ceo of boeing, dave calhoun, on the heels of that company's results. looking at futures, looks like we'll rebound from an ugly session all around everything sold off yesterday, we're up 240 or so on the dow. s&p 500 up 16 points and the nasdaq up 34 the nasdaq got