and tesla making movies ahed of the issues in china. it is monday, april 22nd, 2024. "squawk box" begins right now. good morning. welcome to "squawk box" here on cnbc. we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. here we are. together. >> who is missing? >> nobody. we're all here for the first time. >> really good. really good. >> let's look at what is happening with the u.s. equities. you will see some pretty

significant green arrows. it looks like the dow futures are indicated up by over 160 points. nasdaq futures indicated up by 115. s&p futures are up 27. of course, this is coming after a rough week last week. you are now talking about the s&p on track for the worst month since december of 2022. you have the s&p back be low 5,000. we are watching this closely. this has all been happening with treasury yields picking up. you will see it looks like the ten-year note is all the way up to 4.658%. two-year note at 5%. this is a significant run in the bond yields and that's been responsible for the april pullback we have seen in stocks. the april pullback has been responsible for erasing the gains for the first quarter of the year. we saw the highs on march 28th. you are talking about the s&p at

5.5% from the record close. we have been watching crude oil prices which has been picking up on concerns in the middle east. you see it is down 31 cents for wti. let's look at bitcoin as well after the cryptocurrency completed the fourth halving on friday evening. cut the rewards by the miners by half. we are looking year to date at bitcoin up 55%. this morning, up by close to 2%. $65,927. on the squawk agenda, we have a lot going on. a few points of note. march durable goods orders are due on wednesday. on thursday, we get the first look at gdp in the first quarter. then on friday, the fed inflation gauge with core pce. we will hear from verizon before the opening bell and the firsti

ceo. we hear from gm and visa as well as tesla in the afternoon. we while talk about it. on wednesday, at&t, boeing, ford, ibm and we hear from meta and then on thursday is caterpillar and microsoft and comcast. on friday, we will hear from chevron and exxonmobil. there will be a lot of numbers to chew on. we can figure out what is going on. >> how far from toyota? >> in terms of the market cap? >> on tesla. >> yes. >> tesla is still the most valuable car company. if it drops another few dollars, it would put toyota. >> it has been written now. "do interest rates matter" now? >> yes. >> we will see. >> they he have been down.

>> what did jamie dimon say? 8%? >> he has been spot on. he has been consistent. >> he has. that seems like it would be significant. news from washington. on saturday, the house passing the series of bills to provide aid to israel, ukraine and taiwan along with the bill that would force china's bytedance's tiktok. emily wilkins has more with us. do you clock in on saturday? >> reporter: you have to be paying attention. you have to stay on top of it. it was a working weekend for congress. you are not alone. the house passed that $95 billion foreign aid bill for ukraine, israel and indopacific and attached to that had a couple of things. most importantly, it could lead to tiktok being banned in the

u.s. if they don't divest from parent company bytedance. they could finalize the bill on tuesday. the house has approved the foreign aid piece and the tiktok piece of the bill with the key endorsement from maria cantwell. the threat of the ouster of speaker mike johnson is still on the table. marjorie taylor greene called johnson a lame duck and said he should resign. johnson might survive a vote. several democrats said they would support keeping him in the speakership because he was willing to bring ukraine aid to the floor. republican michael mccall said johnson is in good shape. >> the stock in mike johnson has gone way up. the respect for him has gone up because he did the right thing

irrespective of his job. that garnered a lot of respect. >> reporter: johnson has at least one more week as speaker because lawmakers are back in districts and won't be back until the week after. >> thanks, emily. i saw one headline which was a cnn headline. who knew that mike johnson was going to turn into churchill. it's weird. he is getting support from places and less so from others. i think he's solid. what do you think? >> i think the democrats will jump in. >> in this particular moment, unfortunately -- for kevin mccarthy, nobody was calling him churchill at the time -- >> he wasn't doing exactly the same. we have to do this with ukraine

and for every one artillery shells fired, there are ten russian shells coming back. this is just going to stave off just in time. what is the end game? it will stave it off again, but you wonder the end game. >> that's the conundrum. let's talk about this. dire warning from the columbia university rabbi to jewish students over the weekend. the rabbi sending a message by whatsapp urging jewish students to go home and not return to campus because of extreme anti-semitism. it is the site of israel protests. students waving israeli flags should be the target of terrorists. the mayor getting involved in the statement saying he was horrified and disgusted by the

anti-semitism spewed at and around columbia and telling the university to reach out to the nypd to get involved. this is a private campus nn nypd is not on campus unless asked. all classes will be held virtually today to deescalate. we will talk about this in the 8:00 hour. we will talk to rabbi david ingber. of course, columbia business school has one of the most famous alumni in the world. warren buffett. a lot of famed wall street alumni all over. you could go down the list. we'll see whether they end up speaking out about what is really happening on this campus. just to see the images. we'll talk about this later. you would never think you would see this inamerica. >> no words.

>> there aren't. >> no words. i'm at a loss. it's not the only thing that has me confused. dazed and confused. >> a lot of confusing things. we'll come back and talk about what is going on in the world and the pullback of the big tech. 76 of the nasdaq 100 are 10% or more off the 52-week high. tesla on the list. phil lebeau will join us with the moves tesla is making. what does it mean for the future of the cpaomny? "squawk box" comes right back after this. >> announcer: this cnbc program is sponsored by baird. visit bairddifference.com.

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welcome back to "squawk box." tech stocks taking it on the chin in the last month. s&p technology index down 9%. 29 of the nasdaq 100 are now down 20% or more from the 52-week highs. joining us right now to talk tech stocks is stephanie link with hightower. are you saying everything is on sale and you should buy it or are you saying the knife is falling and i'll keep letting it fall until i want to catch it?

>> the expectations are still high, andrew. i think we have a couple of good looks at the bigger names in technology. i own amazon. i like that name a lot. i own apple. i like that name a lot. i know it is controversial especially as numbers are coming down, but i think both stocks offer good risk/reward into the prints and i will be long on both of them. i like bm very much. they are turning the company around into software and consulting and services and recurring revenue is going on the way up which is good. they are an a.i. play as well. i like lam research. that stock has come down a bit. i think semi cap equipment is interesting. you need seven times the memory for a.i. the fab equipment is recovering. i can pick and choose within tech. i will say i'm underweight the

sector relative the benchmark. i think there are other areas in the market. energy and financials and industrials will put up good numbers. >> we will talk to phil lebeau in a moment about tesla. that stock is sttaking a real shellacking is the technical term. >> i never like it when margins are going down in any company. that is happening in the last year or year and a half for tesla. that is a big problem. not only that, but as competition and hybrids taking share against ev pure plays. toyota has done amazingly well in this front and that's the way i would go at this point. i think we pulled forward a lot of the expectations in terms of ev demand. i think you want to be careful in that space. the valuation is still too hard for me to get my arms around it, andrew. >> in terms of the quote/unquote

a.i. play in terms of how you do that in last few years is to buy nvidia. at this point, you want to own either them or one of the other chipmakers or is there another play? google? microsoft? >> you want to have a.i. exposure. you can own nvidia. everybody owns nvidia. i have never really made a ton of money when everyone is on the same side of the story. i own broadcom. i mentioned lam research and how it is important to the memory side. i own snowflake. it is down 30% from when they reported earnings, but i do think a.i. is only as good as the data you put into it. these guys do that in size and scale. they have a new ceo. it is a prove-me moment for the company. i do think the setup is

interesting. maybe it is off the radar screen versus a pure play like nvidia. >> stephanie, the moves last week was violent. the tidal shifts taking place. $950 billion in market cap loss from the magnificent seven. nvidia losing $300 billion. that is more than an entire amd. we're 5.5% from the all-time highs from the s&p 500. do you think this pullback continues or do people stop and look at earnings and look at the great economy and say we hold here? >> well, i think technology has competition, becky, on terms of earnings and other sectors reporting very good earnings. that's one of the reasons why i think you have seen a broadening out in the marketplace. since october of last year, we had fits and starts along the

way. we are seeing many more names and many more sectors participating because you mentioned the economy is growing at 2.9%. we had the imf increase growth to 3.2% for global growth. china coming in at 5.5%. i think earnings can be better than expected in different sectors. i'm overweight energy. i think the numbers will be good. i do think there is a place in the portfolio for tech. they are more vulnerable. we just have to step back. we are 5% from the highs in the s&p 500 in a month's time. we are also up 30% in the last 16 months. we have had a heck of a run. long-term average, as you know, for the s&p 500 total return is 7.5% to had a good run of it.

now is the time when you see other companies take the spotlight beyond tech. >> okay. stephanie, we will see. lots to look at over the week and a lot of monthnumbers comin. thanks. coming up, tesla slashing the price of some models as well as the full self-driving mode. it is hard to get used to it. phil lebeau will have an update after the break. we will talk to eric rosengren about the economic data this week and the potential impact of the fed's rate path. "squawk box" coming right back.

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blackrock tripled spending on home security for larry fink last year after being a target for anti-woke activists and

conspiracy theyorists. analysis of security spending for ceos was from $1.2 million for bob iger and more than $1 billion from stepane bancel. tesla registered $2.4 million for musk's security last year with the additional $500,000 spent in the first two months of the year. tesla, as we have been reporting, slashing prices on several vehicles and in several global markets, including the united states, which is dealing with slow sales and rising inventory. we have phil lebeau with more. you can tell us what we need to see in tesla and toyota for that them to switch. not that far on market cap. >> reporter: they are very

close, joe. we will show you the two-year chart at the end of the report of tesla and what is happening. look at the decline since last july. teaser there if you want to see how much it dropped. the news on friday here in the u.s. and then we saw it confirmed in other markets worldwide. cutting models y, s and x by $2,000. they are dropping fsd fto $8,00 from $12,000. we know the numbers will be poor compared to tesla in the past. they need to see it. the estimate is for a profit of 49cents a share. if it comes in shy of that, that's not driving the stock lower. by the way, we expect the first year-over-year decline in revenue in four years of $25

billion picture expected in rev. the focus on the conference call and guidance. gross margins in the first quarter down 15.9%. i talked to a number of others who said it could be down 14.5%. that will not move the guidance lower. it is the guidance for the second quarter and specifically what elon musk says about small car bproduction plans. in terms of deliveries, the small car does matter. the growth trajectory in terms of annual deliveries is driving the stock the last six or seven years. people are saying they will grow annual deliveries. the delivery estimate for 2024 is just under 1.9 million vehicles. they delivered 1.81 million last year. if you look at shares of tesla

over the last two years, look at what i was talking about if you go back to july. it is hard to see here. the stock has been cut in half. it is down to $143. it was up to $290. something like that last july. as you mentioned, guys, they are coming close as the stock continues to fall and the market captain continues to fall in te of the most valuable car company. the issue is the conference call. what does elon say about the robotaxi. it has to be more than this is going to unlock the future or quantum leap. i think people would like to see benchmarks thrown out in terms of when beyond the unveil. when do we see it, in his opinion, put in production and into service. >> phil, do i misunderstand

this? to have a robotaxi in the wild would be at level five. >> reporter: correct. >> no human intervention. they are not there. do you think they will announce tech that gets them there? >> reporter: that is a huge jump, andrew. >> is it a dream? >> reporter: it is a leap of faith to say definitively -- 2027, i'm throwing that out there -- or 2028, the driver will be completely out of the car. if you are a tesla owner, you turn it into a robotaxi. you are part of the taxi network. when you are not using it, it toodles off and gives people a ride from point a to point b. that is a huge leap from where they he are right now in terms of technology. >> i just wonder do we need to change the narrative, phil?

evs. the time isunless it is tesla. now, i don't know. tesla might not be qualitatively different from the rest. you still have the charging station problem and mileage problem. >> reporter: they're still king of the khill. >> it is not panacea. >> reporter: in terms of the ev market -- are you saying the bloom is off the rose completely with the evs and let's look at the small niche part of the auto industry? >> i was shocked by 2050 that the biden administration numbers at 12%. >> reporter: you are talking about total number of vehicles on the road, joe? there are 280 million vehicles on the road.

a car sold today is likely still on the road, not all of them, but a good chunk is still on the road in 2040 to 2045. they last longer. >> 14% of total sales is all they were expecting by then. it's crazy. >> reporter: i'm not sure. i have not seen that statistic. 14% of annual sales will only be evs? joe, you are looking at 9%. you are saying over the next 25 years, it will grow? >> i'm saying that's what the report said. i'll send it to you. >> reporter: i'm not familiar if the report is talking total vehicles on the road, which i could see 14%. 300 million vehicles out there or if they are talking annual sales. >> andrew, there is a saying. you can hit bookmark -- >> yes, you can. >> -- if you see something on

twitter. if you hit bookmark, you can save it there. i have it. >> amazon, you can hit the button and they deliver it straight to your door. >> we are doing a new segment. how to tech help. >> i got it right here, phil. coming up, big week for big tech earnings. we hear from ma,et alphabet and microsoft. we will have it for you straight ahead. don't go anywhere. >> announcer: executive edge is sponsored by at&t business. next level moments need the next level network. usiness, you ne. it's a pillow with a speaker in it! that's right craig. a team that's highly competent. i'm just here for the internets. at&t it's super-fast. reliable. you locked us out?! arrggghh! ahhhh! solution-oriented. [jenna screams] and most importantly... is the internet out? don't worry, we have at&t internet back-up. the next level network.

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good morning. welcome back to "squawk box." we are live from the nasdaq market site in times square. the futures are up. they picked up in the last half hour. dow futures up 180 points. the nasdaq futures up 110. s&p futures up 27. of course, it comes after a rough week last week for the markets. s&p right now on track for its worst month since december of 2022 giving back half of the gains the markets booked in the first three months of the year. the s&p down 6% from the all-time highs. quarterly results starting to pour in from the biggest names in tech. it is happening this week. all eyes on it. steve kovach is here to tell us where to look with a.i.

>> the fun starts this week. it is like a two-week big tech earnings thing. meta on wednesday and microsoft and alphabet on thursday and amazon next week. i want to look at the names and through the lens of a.i. which is not a big business for any of them yet. here is what i'll call the a.i. gut tech. you have meta partnered with google to power new investversion of the a.i. chatbot. it is using meta apps. meta's a.i. chief is teasing a better version coming soon. you have microsoft with the copilot sales. listen for those numbers there. and the azure cloud has

reaccelerated lately. and alphabet is including a.i. researchers into the broader a.i. unit deep mind. next week starts off with amazon. not much consumer facing with a.i., but hosting a lot of a.i. activity just like microsoft. with apple, really not much of the a.i. story right now, but expecting that to come at the developers conference in june. more of the concern right now is the declining sales for apple, especially in china. shares are the only one in the group down 14% on the year. guys. a lot going on. >> what will happen with tesla this week? >> oh, man. >> do you have a view? >> for what? >> tesla. tesla. everybody is freaking out. >> i think phil put it nicely. will they ditch this model 2 for the robotaxi initiative?

i remember elon musk saying there will be a million robotaxis next year and that was five years ago. this august event is what people are looking at for tesla. >> keep the dream alive. >> this is what it will be like one day. >> steve, thank you. nice to see you. coming up this morning, the house voting to authorize foreign aid for israel over the weekend. we will talk about the potential impact of the funds on the war right afr isteth.

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welcome back. the wall street journal detailing the biden administration push to contain the crisis in the middle east. joining us now for the latest is mic michael o'hanlon at the brookings institution. we are trying to read this as a deescalation after what happened. this was a massive escalation with israel not allowing the u.s. know about the attacks on damascus and iran doing what it has never done. directly attack israel. what is the fallout this morning? >> becky, good morning. as you say, everybody is setting new precedence, especially iran with the massive scope with more than 100 missiles. it is incredible how well the

defense systems of the countries have worked. biden said take a win. israel is not going to think that way. they have to say we have to show iran or anybody attacking us will suffer. it is more of a psychological effect israel is after. there is room for negotiations about how many targets are struck and where they are located. originally, israel is thinking of tattacking in a number of places in iran. president biden persuaded israel if he got through one or two military installations, or nuclear facilities, you have proven to iran you could strike the nuclear facilities. that is enough of a message. it allows iran to stand down. it was a good decision. it is not the last step in the

process. >> we are not talking about deescalation, but temporary pause. how do you see this playing out? >> i think this is the end of the particular chap tur. chapter. it is not any need israel needs to do anything beyond the original attack. we need to see if hezbollah gets involved in the fight. those are the two biggest questions. on gaza, i think the israelis will do something around rafah. that is the area in the strip where they have not done any counter military pursuit of leadership. hamas leaders are still free and unaccounted for and hamas infrastructure in the area is in tact. i think israel will do something. the question is for how long and when and with what weapons. i hope they show restraint. there is the bigger political question of what do they set up

in the aftermath? the united states with the u.n. resolution last week to recognize the palestinian state. there is no end game as to what comes. i expect the military operations w will wind down this spring. i have no idea what is coming next on the political front. >> the aid bill that was just passed by the house this weekend and will be taken up by the senate this week -- how does that change the calculus? what does it snmean? >> it doesn't answer many questions. it allows the worst-case scenario alleviated in ukraine. it doesn't answer the question of how the political end game is revolved with gaza and doesn't answer the question do we believe in the ukrainian counteroffensive to liberate more territory? i tried to explore what ukraine might need to have a realistic or small chance of a successful counteroffensive. they need to build up a couple

hundred thousand more troops in the military to try to breakthrough the russian lines and evenncircle the russian lin in crimea. that is one example of how it might be done. using the principles of military planning and they need a couple hundred thousand more troops than they have. they lowered the age to 25. they are nowhere near the numbers i talked about. it is not clear they still have a plausible rprospect of pullin that off. we should give them one more try. the chances of success are modest. >> michael o'hanlon, thank you. this is serious stuff. this is not ending. thank you. >> thank you. coming up on the other side of the break, we take you inside the focus group of 18 to 24-year-olds for a look at how they view capitalism and socialism. it is eye opening.

frank luntz will be with us. later, verizon is set to report. we will have the interview with the ceo hans vestberg. "squawk box" returns after this. when it comes to investing, we live in uncertain times. >> announcer: this cnbc program is sponsored by baird. visit bairddifference.com. others can deflate with a single policy change. savvy investors know that gold has stood the test of time as a reliable real asset. so how do you invest in gold? sandstorm gold royalties is a publicly traded company offering a diversified portfolio of mining royalties in one simple investment. learn more about a brighter way to invest in gold at sandstormgold.com.

welcome back to "squawk box." pollster frank luntz had conducted a poll on gen z on capitalism and socialism. >> going after profits at the expense of the environment and lives of humans. >> ultimately, capitalism is what makes america, you know, so

south sought after. >> capitalism encourages the exploitation of people. i think capitalism supports people who are already at the top. >> i'm the son of cuban refugees. i understand firsthand the dangers of socialism and link to au authortarianism. >> we have frank luntz here with us. it was incredible. i watched a large portion of it. were you surprised by the language? >> the language i was surprised. not surprised by the conclusion. young people are always to the left. when use words like exploitation or corruption or greed, those send off bells to me. i'm warning washington, d.c. that all of this anger and all this frustration with the

economy -- it's not good. no, it's not working for them. you better pay attention to this because these young people are not just running off politicians, that's easy to do. >> here is the question. is the answer -- when you say the government needs to be watching and folks in congress and senate need to be watching -- there is a view that to make it work for the american people better than it is today, the answer is not necessarily capitalism, per se, but it is and may be more socialistic. we need more money in the hands of these people. how do you do that? >> the key for them is that road and that opportunity and that direction. all they are asking for is a fighting chance. if they see washington behaving in ways to deny them that chance and tax them so much and regulate them so much. the litigation. all of these things happening to

capitalism is undermining our faith. in the focus group, itself, they want to know it is a level playing field. they want to take us back, i hate to use this phrase, but s,d a chance to move ahead. family businesses they admire. the big corporations not so much. >> right! and i wish that the business community also paid attention. >> reagan said that only one generation at a time can understand that capitalism is what works, and we can't pass it down through our genes to our next generation. >> but we have to teach it. >> that's what i mean. that's what he said. >> and our schools, in colleges they teach socialism. they tell the students that you're not getting a fair shake. >> did they teach what socialism -- socialism and communism are not the same thing, but sometimes one results

in the other, they usually result in about 10 or 50 million people dead. i mean, we've tried this. we haven't done it right yet. is it the same old excuse? we've tried socialism, we just haven't done it right yet, frank? >> no, because i'm separating the politics. it's easy to get agitated. >> i don't want to get agitated. i just had two weeks off. >> this speaks to some of this. let's show the audience this. you asked a question about what america needs more of, meritocracy or quality, and i thought that was actually an interesting thing. a majority said they would choose quality. take a look at this. >> meritocracy has its place, and i think that people are often rewarded for how hard they work, but i don't think equality is the right word. i think we should be talking about a third option, which is equity because equality i think involves bringing some people down and brings other people up.

if we get everybody to the same starting place we really could have a shot at meritocracy being very fruitful for people. >> i think we can thrive under a meritocracy. i think it's inherently not fair if we were to do that at the place we are now. everyone needs to be at the same starting point. >> that's an interesting conundrum, we are all not at the same starting point, and the chances of that ever happening are nil. >> exactly, and the challenge here, our country is based on the idea that you do more, you get more. you do better, you make better. and this is challenging that exactly. in the end, i look at this as an entire generation that's been educated to have resentment, to have a sense of denial and it's now coming through in how our young people respond. >> let's show everybody the final question that you asked this group, and it is this. you asked -- i don't know if we can flip that board back again before we go because we do want

to show that. i don't know if the folks who have that videotape can put that in the prompter for us, but the question, if i recall it, was about democracy, and the role of democracy and really whether democracy is in danger effectively of failing. let's show that. >> a lot of it stems from the fact that we're constantly fighting with each other and we're not even trying to solve the issues that everyone sees. our democracy is not going to kond to stand if we continue to fight the party lines. >> i think about like january 6th, when we're talking about politicians straight up lying to people about election fraud, things that are critical to our democracy, the foundation of america making those things unstable, making it so that we question, have faith in our election system, i think that is extremely dangerous. i think that is dangerous to the very core of our democracy. >> i trust them. these are not dumb people.

in fact, i think they're very articulate. i may disagree with them, and the things aisli'm looking at r now, and you and i were talking off air about the minnesota timber wolves, here's a great can example, the owner sells the team to new people. >> marc lore for those who don't know, also a-rod. >> and that new owners have done a fantastic job. by 20%, which is a huge number, the fans want the new owners to own the team and yet the old owner is saying, oh, no, no, no, now that we're doing well, i want the team back. that's crap, and i'm using very careful language here. this is why people have come to distrust capitalism. when they've come to distrust the system because the old owner thinks he can steal it back, he's going to try and the fans are saying no way. so my question to people watching right now, are you paying attention? are we going to make sure that the system works for everybody, and do you believe in some sense

of integrity and honesty that when you make a commitment you follow through. >> did you see anthony edwards on saturday night? you did? >> yes. >> i had the timberwolves. >> it's a great team now. >> 76ers. >> frank, we want to thank you very, very much. appreciate it, thank you for coming in. coming up, we're going to dig in to the move in bitcoin after friday's having echvent. that's next. plus, verizon set to report. we'll come right back.

bitcoin achieved its fourth

having on friday, fourth ever. checking on the price of bitcoin now, it is up, and joining us, kathleen brightman. there's nobody that -- welcome, it's good to see you, kathleen, but there's no one that didn't know that the having was going to occur, so i'm a little bit surprised, although there had been a little bit of a pull back. but i'm a little bit surprised that you're seeing this much buying interest. one thing is for sure, though, if you are trying to buy bitcoin for these new etfs, it's harder to buy them now, right? >> yeah, i suppose so, and i agree with you, it is kind of silly that this is a meme that's been very popular. oh, the having is going to make the price go up. but ultimately it's a market that trades on mow mettics and you have to do the memes, right? >> got to do that. i'm using your numbers here, so 900 new bitcoins used to be created. now there's 450, and how many do

we need for ets in your view? is there an estimate for the demand that is now being generated by everyone being involved, all the blackrocks of the world? >> yeah, so i mean, one way of looking at it is the amount of bitcoin issued in every block is a security budget. it's set independently of how much security is actually provided so you can kind of look at it as it's set to create too much inflation until it creates too little security, which is kind of an interesting fluke of its design. what we saw over the weekend is that bitcoin's fees rose preci precipitously associated with this new project on it, a project bringing meme coins which are really popular right now to bitcoinland, so even though the actual reward for minting a new bitcoin or mining a new bitcoin was halved, transaction fees were really high, buyers made a lot of money, but fees tend to be

cyclical in bitcoin land, whereas obviously rewards are more set in stone. it's an interesting market for that reason alone. >> we only got about 30 seconds left, i think, kathleen, or maybe less. this is the first time we've had a having where it's happening at an all-time high, and it's always result ined in some pret good momentum for the months after a having. will that happen again? because we're already -- we've already had a move with the etfs or whatever it was? >> yeah, i think it's -- it's funny, it's not a large sample set of data to go on. it's only happening three times. definitely there's a lot more sophisticated actors. one would hope that the bitcoin market would be less susceptible to these self-fulfilling properties or memes. it also seems to ride very heavily on momentum or people are staying on the internet. it's obviously a lot of retail participation in the etf market. yeah, i think you know, it will probably go up because people think it's going to go up.

i think it should have also been accounted for well ahead of time so yeah. >> you can't go anywhere and not hear about it at this point, so i don't know what that means either, but kathleen, thank you. >> thank you. >> okay. okay. it is just now after 7:00 a.m. on the east coast. you're watching ""squawk box" here on cnbc. i'm andrew ross sorkin along with joe kernen and becky quick. it is the busiest week for earnings season with seven of the magnificent seven and one-third of the s&p 500 ready to report quarterly results outside of earnings. key factors to watch include gdp and the fed's favorite inflation gauge. pce. "the wall street journal" reporting that deal talks between salesforce and informatica have stalled. salesforce was reportedly considering buying the company for $10 billion in what would have been one of salesforce's largest acquisitions. nike set to sign an eight-year deal worth up to

$28 million with basketball star caitlin clark beating out a adidas, under armour and puma. nike's offer includes a signature shoe and given all the debate that we had just last week about how much caitlin clark was going to get from the wnba, $76,000 a year. it's nice to see a $28 million pay package ahead of her from nike. >> we're in an interesting place the wnba right now. >> they're finally getting the viewership. >> the draft, 3 million people watching the draft. >> yeah. >> and once again, you know, i got -- i fell in love with the caitlin clark phenomena. if i had seen more of south carolina, there's no way i would have bet on iowa for that. did you see -- >> it was unbelievable. unbelievable game. >> that center. >> yeah. >> dominant. i think there may be more really good players than just caitlin clark. checking the futures, taking a

look right now, up 191 points. we've had a couple of rough week weeks, probably not because we were out, becky. an andrew tried. >> it was really just last week. >> last week. you gave it the old college try, but we were down about 5% now. >> it was momentum. it was momentum play, technology. anti-momentum. >> i have delusions of grandeur. >> you do. you do. >> let's get to kristina partsinevelos. >> let's start with amazon, still a top e-commerce pick according to goldman sachs. they point to a resilient consumer but more so this year's size and dominance of amazon as a platform versus etsy and ebay. they believe amazon web service wills benefit from the migration to the cloud and increase in ai platform. ap apple earnings out, may 2nd, bank of america more optimistic with earnings estimates than most on the street, even though we do expect lower iphone sales

expectations, they suggest that $1 billion of apple vision pros are just not priced into the stock right now. they see gross margin benefits and services. jpmorgan not as positive on networking name cisco. they moved to neutral rating with a $53 price target. it's trading at 48.10 right no it's the medium term that worries them, driven by a slow down in networking. they think that right now dell is actually better positioned to benefit from ai trends than cisco. guys. >> thanks, kristina, we've got a big guest here, holy cow. in person. >> this is hans vesper we're talking about. he is joining us right now because verizon's first quarter results just out this morning. the company actually beating estimates by $0.03 with adjusted

quarterly profit of $1.15 a share. the stock up by 2.4%. the chairman and ceo is here to talk more about it. thanks for coming in. >> thank you, great to be here as usual. what happened? numbers were better than the street was can expecting even though the revenue was in line. >> what we are focused on is service revenue, continued momentum since the second quarter last year. now our service revenue growth was up 3.3% compared to a little bit over 1 hlast year in first quarter. continue with our offerings that are really sounding well with our consumers, and then on the business side, on the wireless, we have been growing all the time. our broadband business, we're almost almost 400,000 new net adds for the quarter, three, four quarters right now. actually, 18% more broad subscribers in one year.

all our businesses, our strategy's working actually and we had our challenges in '22. we didn't really perform. we did a lot of changes in the team, how we're offering products to our customers. so it was a good quarter, continued good momentum for us. >> subscriber base, broadband subscribers up 389,000. as you mentioned, i think it's been five quarters in a row now of about 400, just north of 500 or 400. what do you have to do right now to get those subscribers is part of it the streaming services that you guys have been pretty aggressive about partnering up with. >> we have exclusive distribution services. i think what we have for the consumer side is very clear plan, which actually offering to our customer different type of network solutions. right now we're running netflix and max, only us can do that. really working well with our customers.

it's also saving for our customers. we just stacked new editions and value for our customers, and that's how we expand our average revenue per user. just continue that, more innovation. the team has innovated good on the consumer side. on the business side, we have been taking share for a very long time. we're number one on large enterprises. we're number one of s and bs and the government when it comes to wireless. we have a very solid position in the market. this a quarter $12.1 billion. >> can you give us any guidance in terms of what you expect broadband growth to be this year or wireless growth >> i think what we have said, on the broadband side we like being around 400,000. you optimize your capital, how you deploy it. we like that number. when it comes to growth on wireless, we are going to be

positive this year on consumer net adds. consumer this year is going to be positive. we had actually our strongest year in consumer net adds in q1 since 2018, and that's a quarter when we see what's happening around us, inflation, high interest rate. we actually have our best first quarter since 2018 on consumer si side. >> we've been talking to you for years abouted g the growth of a what would happen with fixed line wireless. folks would have wireless, broadband to the home. bypassing cable, we have a unique interest in this. i think a lot of people do. where are you really on that product? >> the product is resonating extremely well with the market. it's easy to install as you install it yourself. takes you five minutes of broadband at home, and it works in any type of setup in the house or in residential, so it's -- so the rollout is going

really well, and that's when we turn on our band that we bought two years ago. then we see an opportunity in every market. >> but not yet. >> we see it right now, of the almost 400,000 unit adds this quarter, the majority comes from fixed access. fie i it's not only for consumers. think about that. historically we thought the idea of 5g to the home as broadband was mainly a consumer product. today we sell to small and medium businesses. >> and you can get enough throughput for a small business? >> we guarantee 300, so it's an extraordinary great experience. our mps skyrocketing on fixed access. >> if you're getting so many subscribers right now, broadband and beyond s that a reflection of a strong economy? you say despite inflationary costs. what do you see just in terms of the health of consumer? >> first of all, i see the same

thing that everybody skpraeds what you are reporting here every morning. first of all, our product, wireless and broadband is so important for every individual, for every organization. our product is moving up. secondly, our segmentation and having products all the way from low income families to some more advanced plans on broadband and wireless means we can address the whole market. i think that's -- and then our quality of customers is the highest in the market, so so far we haven't seen any impacts on our customers' payment regiments. they are stable. which is probably a bit different from other consumer brands, but i think the strength of the product, the strength of verizon's customer base, and the segmentation. >> one thing you and the other telecom companies are all pretty aligned on is pushing back against some of the federal regulations to give access to lower income consumers at price caps for your product.

where does that stand right now? >> so there is the program acp, which is the government is a subsidize for low income families. it seems like that will not renew. we have plans, we have fios that is efficient for low income families. we have the full breadth of prepaid wireless that is also addressing that. we will continue to address that opportunity and see that everyone in this country regardless of who they are should have access to wireless and broadband. >> but you don't want the federal government to push you to do that. >> no, this is segmentation for us. i have products for all types of individuals, organizations on wireless and broadband. i mean, we are number one in this market by far, and our job is to see that we address all the opportunities in the market, and that we do. think about it, we build a network once and we want as many profitable connections on top of it to get the best return on invested capital. that's what we're doing. >> hans, we want to thank you

for coming in. shares up by 3.25%. >> okay. coming up, a big week for earnings. we're going to talk markets after the break. tesla cutting prices for many of its cars as it deals with falling sales and weaker demand for electric vehicles. we'll have more on that story straight ahead as well. do not go anywhere, "squawk box" coming right back.

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♪ let's talk markets now ahead of the busy week of tech earnings. an sta sha am roe sew is chief investment -- it would be nice to get 10 h%, will we? >> i don't know if we're going to get there, joe. the reason i say that is we came into the month of april with a technical backdrop. we've quickly corrected that. what was in overbought conditions for stocks is shaping up to be oversold for stocks. >> that quick? >> that quick. in the beginning of april you couldn't find any investors that were bearish on stocks and now

the percentage of bears is outpacing the bulls. i think we got a pretty quick technical correction, and with almost 3.5 to $4 trillion of money markets on u.s. household's balance sheets i think investors will be looking to step in. >> i don't know if fundamentals are ever coincident with what happens. we've got plenty of reason to explain 5% in terms of inflation fears, rate cut hopes. i don't even -- you know, there's some people saying 2025 now. >> right. >> and they say until we get the first cut. how do we know there's going to be a cut and not a hike at this -- so there's plenty of -- does that shift to allow us to make a bottom at only 5%? >> i'm really glad you bring up the fundamentals because there has been a repricing, specifically in yields, and i actually think that's very constructive. so when i look at yields today, i mean, we've moved, you know, almost 100 basis points since the beginning of the year. not quite, but what that means is that the market is now more

in line with the fed's thinking. the market is more in line with where we're seeing growth and the market is more in line with inflation expectations. what i like about the ten-year at these levels is it's actually trading above the implied fair value by some models. you know, we've now priced in maybe a rate cut, if that, so i think the market is exactly where the fed wants it to be right now. so if the ten-year treasury yield can pause around current levels, that's another reason to say that equity market probably presents good value. >> someone pointed out we're up 30% or so even after this pullback in the s&p over the past 18 months. why is bearish sentiment, why was it rekindled so easily with only a 5% pullback? why aren't people more in love with this market? >> yeah, i think a lot of people were optimistic on the markets because of the rate cuts. you know, that was a big narrative going into the year. there's another reason to be optimistic about the equity

markets, even without the rate cuts, you have resilient growth. we get gdp growth for the first quarter this week, and we're looking for about 2.5% increase in the fourth quarter gdp. that's a reason to be optimistic on the market, but for those, you know, previously in the bullish camp, they were looking for rate cuts. >> bear sentiment right now has been increased enough to where you think we make a bottom before a further pullback, before another 5%? >> i think you always need a cad list, and for this week in particular, obviously we've got the big tech earnings to look forward to, and i like that the reset we've had in some of those valuations as well. the other catalyst i'm looking for is actually this friday, which is a core pce number. clearly the last few inflation prints, that's what's stoked the bearish sentiment. if you look at the core pc, the big distinction between that print versus the other inflation print is you have a lot less housing exposure. versus 30, 32% in the core cpi basket, here you have about 15 or 16% exposure.

and by the way, last week we've got the new tenant rent index that registered at 0.4% year-over-year increase versus, you know, it was running at 12% some years -- a couple of quarters ago. so i actually think that core pce number if it comes in in line with expectations of 0.3 month over month, that could be your catalyst to say we have had enough of a correction. >> what happens if it's hotter? >> well, then, i do think, becky, that there's more downside to go. although i'm encouraged by the pickup in the bear sentiment, the reason i say investors are looking to buy this pullback gradually, is you do have a lot of length from systematic investors. the commodity trading advisers they're just about near max long. hedge funds, they've add add lot of growth and net exposure, if we do trade down because of a core pce miss, then i think you have more of a technical unwind. so you know, look, investors

still are sitting on those money market funds, and i think a lot of investors have their strategic allocation, but they're underweight equities quite significantly, so we've been waiting for this all year for the opportunity to get back to strategic allocation, and i think that's what this pullback is about. you don't need to buy it all here right now, but gradually buying the dip is what i would do here. >> anastasia, thank you. >> thanks so much. good to see you. tesla shedding more than $70 billion in market cap last week. over the weekend, elon musk announcing price cuts in a number of major markets including china and germany. we'll talk about that move, the stock, and elon musk's price war right after this. and then founder and ceo of operation hope, john hope bryant joins us for a wide-ranging interview from politics to the wonomy. weill cover it all. "squawk box" will be right back. amelia, weather. 70 degrees and sunny today. amelia, unlock the door. i'm afraid i can't do that, jen.

why not? did you forget something? my protein shake. the future isn't scary, not investing in it is. you're so dramatic amelia. bye jen. 100 innovative companies, one etf. before investing, carefully read and consider fund investment objectives, risks, charges expenses and more prospectus at invesco.com.

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at 88 years old, we still see the world with the wonder of new eyes, helping you discover untapped possibilities and relentlessly working with you to make them real. old school grit. new world ideas. morgan stanley. welcome back to "squawk box," shares of tesla hitting a 52 week low falling about 40% this year. the company cutting its model y, x, and s vehicles. tesla slashing prices in china and germany. according to "the wall street journal," the company may be losing potential buyers, mainly democrats. joining us now is tim hagueans, wall street journal business columnist. let's talk about what we might hear from elon musk tomorrow when he does his earnings call later in the afternoon, which i

think is the much-awaited moment where we may find out where this is all headed. you have a take, which is that you believe that democrats may not be buying the teslas. i was going to say that may well be true. the other side of this is you oftentimes hear that republicans aren't buying evs. i don't know if you think they're not buying evs, they're not buying teslas either? >> that's the dilemma. that's probably the challenge that elon musk has right now. for years democrats have been the biggest kind of canohort of electric car buyers, and that has been the biggest cohoert of buyers for tesla. when we started to see last fall elon's more controversial comments regarding immigration, regarding that infamous tweet that some saw as anti-semitic or at least amplifying that kind of vitriol, his kind of public battle against dei. you started to see consumers,

democrat, pulling back, which it could be very troublesome this year, you know, in a very hot political year when evs have been very much polarized. we've seen republicans traditionally have been for every five democrats buying an ev, only two republicans have been buying an ev here in the u.s. >> tim, are you surprised that ev buying in the united states has become political? i mean, you can see a clear distinction between red states and blue states, and europe, by the way, it is not like this. in parts of asia, it is not like this. >> yeah. historically it's really been this way. you go back ten years ago when the obama administration was saving general motors from bankruptcy, the idea of the volt was going to be the future of kb gm. it was very easy during that presidential cycle for republicans to talk about the volt being the obama mobile and

tasked it as a political wedge in that election. you started to see some improvement when car makers's focused on the performance of the vehicle and frame it as not just an electric car but the best car. that resonates with buyers. they aren't buying an electric car, they're buying a tesla. that has been increasingly important in the u.s. for the mind-set of the buyer. >> tim, you've been following elon musk and tesla for a very long time, and we're going to be hearing from him tomorrow afternoon, lots of various expectations about what we're going to hear. we talked to phil lebeau earlier, the biggest, of course, is this announcement about a robotaxi. the question i asked him, for a robotaxi to work you have to be at level 5 autonomy, which means no human intervention at all. how far is tesla from truly level five, no human intervention ai in the car? >> well, we haven't seen it so

far. we haven't seen the tests of it. we haven't seen these vehicles out in the real world. to me, one of the -- to me and other experts, one of the red lines here for judging if this technology is real is when tesla starts to take a legal liability for these vehicles, if the vehicle is driving itself, then tesla should be liable, according to a lot of experts. right now auto pilot, fsd, these are essentially glorified cruise controls. i'm not saying they're not impressive, but they cannot drive the car and the company even says so. the company says the driver needs to monitor. the driver is in charge. that at the end of the day is the dividing line. >> the technology that's on a cruise, for example, or some of the waymo vehicles include lidar, which is effectively a laser system with radar and other things. elon musk has avoided those technologies for a while saying he believes it can be done with cameras. do you believe that the tech and the rig, if you will, of

technology that exists in the car, on the car needs to change to be able to get to level five? what do you think the cost of that is if it has to? >> the biggest party debate here in silicon valley for years has been this question. elon makes the argument that humans just have eyes, so essentially the camera can be like the creyes of a huchlman. the challenge is that the lidar, the radar, other sensors they put on their vehicles essentially helps the vehicle in these edge cases. the concern is that when they launch these vehicles that the humans are not going to be tolerant of a robot car crashing. if you or i were to crash in a bad situation, maybe it wasn't our fault. it maybe was our fault, humans are going to be more understanding. if your toaster attacks you, you're not going to trust it. >> tim, it is a longer

conversation, i imagine we may get to have it with you later this week. we'll see what happens when we do hear from elon musk and tesla tomorrow afternoon. thank you for joining us this morning. >> thank you. coming up, a new nbc poll on who voters trust when it comes to handling the economy. then later in the prom, former boston fed president, eric rosengren is going to join th to discuss the fed's rate pa, sticky inflation and much more. "squawk box" will be coming right back. we never lose focus on the life you want to build. it's time for wealth solutions as sophisticated as you are. it's time for corient.

a new poll from nbc news found that more voters trust donald trump than president biden when it comes to handling their top concern, that's inflation and the cost of living. only 11% of respondents named jobs and the economy as the most critical issues facing the country compared to 23% who said inflation. overall, the nbc poll found that biden appears to be catching up to trump's lead. it found that trump lead biden by two points in a head-to-head matchup which was lower than his five-point lead in january. the poll does have a margin of error of about 3%. up next, operation hope's founder, chairman and ceo john hope bryant joins us for a wide ranging interview. and later, stocks on pace for their biggest monthly drop since 2022 as technology tumbles ahead of a very busy week for earnings. katie stockton will join us to talk technicals. quk x"ilbeig bk.

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welcome back to "squawk box," last hour we spoke with frank lunds about how gen z views capitalism, take a look at this. >> our country is based on the idea that you do more, you get more. you do better, you make better, and this is challenging that exactly. in the end, i look at this as an entire generation that's been educated to have resentment, to

have a sense of denial, and it's now coming through in how our young people respond. >> for more on this and so much else, let's bring in john hope bryant, founder, chairman, and ceo of operation hope as well as a cnbc contributor. he's got a new book out called "financial literacy for all," we'll talk about that as well. nice to see you, sir. >> nice to be here. >> you've talked about meritocracy for a long time, but you've also talked about equality, equity. one of the things that is discuss instead this focus group is this idea of equity that everybody needs to start now, some of the folks said, at the same place because everything is so out of whack to begin with that they're never going to get up. that's at least the underlying message of that. what do you think of that? >> i think frank is a good guy by the way, the guy who did the survey. >> a but, here it comes. >> i hear it. >> first collected like a capitalist, right, and the

ladder is broken, but we don't all start at the same place. that's just ridiculous, and of course we can't have time on this session to go into the great history of this country where 10% of all land was districted to people who don't look like me, that was the homestead act and it goes on and on up to 1913 which was the fha red lining community. the fact that we are somehow all fair and equal is factually, mathematically incorrect. what he is correct on is the perception that the ladder is broken. that's one of the reasons i wrote this book. i think capitalism's image is bad. i think -- and capitalism's branding is bad, and that's capitalism's problem. and the 1% has to empower the 99%. if you work hard, play by the rules, do the right things, stop at red lights, respect your elders you can have a shot at going from the bottom to the top, just like me because as you know, i was homeless for six months of my life. as you know, i lived in compton,

15502 south fray lee for six months of my life. my mother had a high school education, my dad too. i sit here as i guess top 1 prerng which meant i got role models, mentors, not just because i was smart. somebody opened the door for me and kept it open. doug mcmillon, the ceo of delta said the guy is smart, but let's open the door. >> let me ask you a separate question. after the murder of george floyd. >> yeah. >> we went in this country and in corporate america -- >> by the way, women went through the same thing, by the way. >> through a major dei movement, right, around corporate america, there's a complete ecosystem now around dei, and yet, it appears that the dei ecosystem is being dism dismantled. you can look through -- there was a big story about it, s.e.c. filings by companies. dei being removed from the topic

du jour in those filingsment what do you make of that? >> it's mathematically stupid. >> which is stupid? >> dismantling of it. take the moral issue out, i think will is a moral issue. i mentioned it briefly in my remarks. take the ethical issue out. there are four authoritarian nations who want to take our place in the world, china, russia, north korea, and iran, and they're working every day to knock us off, and everybody wants to be american but americans. the math says we have the first generation over 65 in our lifetime, those are white people who have done well who are trying to retire. the math also says that social security won't be able to pay 100% of their returns by 2034 or something like that. the math also says that today black and brown people and women and poor whites are half of this population and growing and no

one taught them capitalism or free enterprise. you take those numbers alone -- >> but that's something that -- that's something you actually agree with frank on. he thinks that capitalism and free enterprise should be taught in schools and that it's not being right now. >> by the way, this book is a culmination of "squawk box." me coming hiing here and talkint this has main streamed the issue. the color is not black and white today, green, and we've got to save the largest economy in the world to be the super power in the world, and if we stop- de and i is almost like research and development for the future economy. so it's stupid to stop it. >> is dei and meritocracy at odds? let me ask you maybe directly that way. one of the things that's happened in the past two weeks, harvard university and a number of others now have replaced, have brought back the s.a.t.

there was an argument that had been made that the s.a.t. was racist, that the s.a.t. was actually preventing minorities from getting opportunities is and giving universities the opportunity to make their own choices about meritocracy, and then studies were done on the s.a.t. and you're now seeing harvard and others -- i know some people disagree with those studies -- suggesting actually that the opposite was happening, that it was making meritocracy less valuable. >> another one of my first public board i screwed up something and didn't know when i screwed it up, and i got a call from the s.e.c., and i was -- i did it innocently, but no one had given me a briefing book on a public board. no one had said, here's the memo. i'm a pretty smart guy but it's what i didn't know that i didn't know that was killing me but i thought i knew. once i got the memo, i never did that again. it's not about -- the s.a.t. is not racist. credit scores aren't racist, but

it's an and conversation, not an or conversation, and sometimes you need some additional context around the conversation because some people just never got the memo on how this system works and some people come from a different cultural background. once again, i think we're shooting ourselves in the foot. >> it doesn't help anybody, even the people that are benefitting you hope from dei itdoesn't help them if there's this stigma or even an unfair criticism that they're not there because of -- >> i could care less about a stigma -- give me a cash loan, give me a line of credit. >> i've heard them say didn't earn it. do you want to be in a position where people -- >> not one ounce of my self-esteem depends on your acceptance of me. joe, you started it. i want to finish it. now, i love you, that was one of the craziest things you've ever said. there's been pushback on progress since reconstruction. abraham lincoln did it and was

assassinated because he wanted to give blacks the right to vote. >> it's not my criticism. andrew brought it up. >> i'm not picking on you burt you've got to listen, i'm going to do this quickly. they stopped reconstruction within two years of 40 acheers and a mule, then covers did. >> don't gaslight me. >> he brought up the article that says dei is under attack because it impugns the people that it's meant to help sometimes. >> no, it doesn't. no, it doesn't. i believe in the james brown version of affirmative action. open the door, i'll get it myself. but i don't mind somebody opening the door. i thank them for it. tony rexler cracked the door open and said you are not going to close the door on my foot until john comes through. i thanked him. somebody helped you, somebody helped becky. somebody helped andrew. >> let me ask you this -- >> i love you, joe. >> we're going to talk about what's happening at columbia university in the 8:00 hour, you can say what are you talking about, how are these things connected. one of the things that happened

in this focus group was the idea that those in capitalism that are successful effectively are the oppressors. we've worked into this sort of oppressor, oppoppressee framewo in life, those who have got success have done it on the backs of others. i'm curious how you think about that. it's important. that framework is now being used i would argue at columbia university over the weekend as it relates to anti-semitism in this country. >> i think we start getting in these petty arguments we're going to start shooting ourselves in the foot. we got to realize that we live in a capitalist democracy. we have to realize it's never a super power and economic power at the same time, france, britain, i mean, just name it, germany, at the same time, super power, but when france ignored the least of her god's children, they got into trouble. all i'm saying is we need -- people say they hate rich people.

no, they don't. you hate rich people until you become rich. what you hate is a gamed system. >> right. >> you hate a system that you think is rigged against you to suc succeed, and i think that we have a responsibility -- that's why i call it the civil rights issue of this generation. the issue is not in the streets anymore. it's in the suites, and i believe there needs to be a new constituency in the suites that is opening the door for free enterprise and opportunity for all on a reasonable basis, on a fair basis. i think joe and i would 100% agree on that. i'm not talking about somebody who's stupid or dumb. my mother was brilliant. she just didn't have a formal education. there are a lot of people like that who just need a shot. i think we're arguing about the wrong things and the wrong ways and the wrong places. we need to be trying to figure out how do we get the bottom to the top before we're all speaking mandarin in 20 years. i'd love to come back on and have a proper debate about the business plan for america, which i will publish in a couple of weeks, which will lay out the math of why de and i debate is

ridiculous. the math is undeniable. >> the invitation is out, and we hope to have you back for that conversation. >> i do. and joe, you're one of my favorite people. >> gaslighting. >> the book is called "financial literacy for all," we appreciate you being here and participating as always. it's good to see you, sir. >> thank you. we should also mention john's got an op-ed on our website right now on this very topic on cnbc.com. the tale of two real estate markets, robert frank will join attoight after the break with th sry. "squawk box" will be right back.

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visit xfinitymobile.com to learn more. doc? while broader housing market is suffering from higher rates, there is more supply. and robert frank is joining us. all cash buyers? i want to be one of those pl. >> real estate sales broadly

falling 4% nationwide, but luxury real estate saw the biggest increase in three years. the tale of two markets is being driven by rates and supply. mortgage rates above 7% have put homes out of reach for most buyers, but wealthy buyers are paying cash, about half of all luxury homes were bought with all cash in the quarter. highest in at least a decade. in manhattan cash deals hit a record 68%. all that cash is pushing up prices. luxury home prices soared 9%, twice as fast as the broader market. higher prices are also drawing more buyers. the number of luxury homes for sale jumped 13% in the quarter, that compares to a 3% decline in the rest of the housing market. so you actually have inventory at the top, market with the fastest luxury price growth was province, rhode island followed wou by virginia beach.

seenl seattle and then austin. you can read more in the inside wealth newsletter for a lot on where the wealthy are investing. >> anything that -- any activity is good. is is it not? >> yeah. i mean, you are just talking to john about inequality. you have a situation now where homeowners are seeing their price appreciation growth, but you are not getting equity and buying in to homes new. and so that is even wired now when you look at sales at the top where people can exit a home because they will pay cash for their next home. so you have a much more liquid market at the top than you have where the rest of the market is frozen because no one wants to get out of their -- >> what is happening as a result of the lack of mobility? do you think a couple years from now we'll realize nobody has moved and what that means?

>> the studies of mobility which take a look at -- you know, you look at decades. basically say that it has been flat. it hasn't decreased. there were some studies that ten years ago showed a decrease. it hasn't. it remained flat. and what we have seen about inequality, inequality shrank. but now it is growing a little bit again and that is because of the stock market until recently has had such strong performance. >> and i'm talking about physical mobility. you are unwilling to sell your home. >> absolutely. >> because it will cost you too much to go somewhere else. the idea that people are not going to go take that job across the country. or they won't- >> and it is a logjam. >> and that has created areas of labor shortages where i think normally america is known for its labor mobility. that is what we have, better than europe. americans are more able to move than europeans.

and so i think that is where you have pockets of the country where the labor shortage sch more dramatic than other parts because people don't want to move. and i think companies are seeing that. i think that is why remote work has survived as long as it has because it is one solution. housing is -- higher rates are trapping people in their homes. >> and the supply of housing should have been increased because of the demand that usually matches. and it hasn't. we've had the supply problem for much longer than you would think. >> higher rates, lower prices has not happened this time. and we saw that shelter was one of the big reasons that we had an increase in the cpi. and if you look at new york, you look at the major cities, rents are still very high. they are not going up as high as fast, and prices are still going up. because there is zero supply especially in the middle to bottom. >> robert, thank you. and when we come back, oil markets apmid tensions in the

middle east. we'll talk about where prices may be headed. and later, protests at columbia university in new york city, we'll speak to a rabbi whose congregation serves columbia student and faculty, about a situation that is growing with anti-semitism on ca campuses.

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welcome back. let's get a check on the oil markets. right now it looks like crude oil is town by about 8 cents. for the week 2.75%. $83.06 a barrel. but year to date, still up by about 16%. joining us now is the global a head of commodity strategy at rbc capital markets. and there is so much to talk about. things that are impacting the global energy markets. maybe we start though with the foreign aid bill that the house passed over the weekend. but that has major implications not just for the middle east but ukraine and russia as well. >> i think it is a very significant bill. two things we're watching. we've seen the increase in attacks on russia energy strzok

by ukraine since the start of the year. the position of the ukrainians, if we don't get money and weapons from the west, we'll defund the energy atm. white house not 4happy about that. so with the aid going to ukraine now, will ukraine essentially say okay white house, we'll cease our attacks on russian energy. so we're watching that. second yissue, the sanctions on iran and calling the white house to have to implement sanctions and also penalizes ports that take iranian crude shapements. so the question is, is the white house going to go forward if this bill passes as expected and actually have to start taking iranian volumes off the market. >> so let's back this up a bit. we've talked about how the white house was trying to push ukrainians not to attack those russian oil installations because the white house doesn't want to see oil prices go

higher. that is a difficult thing to face in any environment, but particularly in an election year. same story held true with iran. they have not played more hardball because they didn't want to see iranian oil not get shipped out for the global market. >> this has been a limiting factor on u.s. foreign policy in both these instances. in the case of russia, we have essentially allowed russian oil to stay on the market. that is what price catch was designed to to, enable russian barrels to flow to egypt. same thing with iran. iranian exports are at a five year high. so the question particularly on iran with congress now saying to the white house we want to see a significant reduction in iranian crude exports because what this money is funding in the middle east, will the white house go along with this or will it basically say we have a waiver 180 days, and we're concerned about tightness in the oil market. so a tough choice for the white house come summer.

>> so combine that with the attacks that we saw from iran launching for the first time, direct attacks on israel last week, where do you think that puts oil prices in the next six months or so? >> the interesting question is, are we done. essentially is this latest dust up between iran and israel the peak of tensions in the middle east or is more potentially going to come. i think for now both israel and iran have signaled they do not want a direct war at this stage. iranians are happy to fight it through proxies. that does not mean the middle east is going to work through the period. but for now they are saying we'll focus on other issues, we'll focus on the fundamentals. that still means that we have support for oil prices around this level. the question is as we get into summer and peak driving demand, is it going to be a situation or a back above 90 for brent, $4 a gallon for retail gasoline

prices, and does this administration go back to the spr. they have signaled to try to bring prices down. >> and thank you very much for joining us today. just after 8:00 a.m. now. you're watching "squawk box." i'm joe kerr in that along with becky quick and an through ross sorkin. we're at full strength this morning. two of us well rested. >> i'm well rested. i had the weekend. >> low 80s isn't bad. >> and among the top stories, tesla shares falling in the pre-market, the company slashing car prices in a number of countries as it battles for ev market share. speaking of tesla, carmaker set to help headline a big week of earnings. very busy week. also reports from meta, alphabet and microsoft in the next two days. and a $95 billion aid package

for ukraine, israel and taiwan is on the way to the senate after the house passed it over the weekend. and it includes a threat to ban tiktok or have it divested in the u.s. and we're up on the dow about 213 points hire. s&p 500 up about 23. nasdaq looking to open about 100 points hire. take a look at treasuries. you are looking at the ten year at 4.658. two year at 4.993. just below 5%. meantime want to get a look at this morning's pre-market movers. good morning. >> and let's talk about shares of verizon. they are up over 1% because customers are sticking around. they lost fewer than expected wireless subscribers in the first quarter thanks to flexible plans and streaming bundles including netflix and max. and i know you caught up with verizon ceo in the last hour and

he spoke about service revenues. here is a snippet. >> what we're focused on of course is service revenue. continued momentum. since send quarter last year, now service revenue growth up 3.3% compared to over one in the first quarter. >> and so let's move on to salesforce. shares are up about 3% this morning on a report that it was backing out of what would have been salesforce's biggest acquisition. in-formatity came down over 6%. the twocompanies couldn't agree on terms to the deal. and so shares over 6%. bitcoin up this morning, cryptocurrency is trying to maintain scarcity. many expecting a fire sale, but the price surged from 60 k to over $65,000. up 2%. bitcoin miners and traders are dealing with chaos.

because transaction fees have jumped. but that is helping the brokers. you can see up around the 2% mark. and now back to the markets. we're going to talk technical strategies. and we won't talk fundamentals. no worry about that. i'm trying to figure out whether we're in a 50% retracement of the recent pullback or are we in a 50% retracement of the even bigger rally that we saw. >> i think it is a pretty orderly pullback to this point. but it has damaged some of the intermediate term gauges. so one of our risk metrics is the 20 day moving average. ruled over for the major

indices. and that is a significant enough of a loss of momentum to suggest that it is more than just a brief pullback. so we've had the pullback. what we're looking for is rebound. >> like a relief rally rebound, not a -- >> right, something to sell into. we think the corrective phase could last seasonally. and because of the loss of momentum, we also have finally a reaction to intermediate term overbought territory and that is something that tends to see several week of corrective action. >> and finally, a creation to some of the fundamentals that you don't talk about in terms of interest rate paths and the 10 year and -- because you don't need to talk fundamentals on what is causing it, but what about the ten year, what are you seeing there, what should we be expecting? >> it does clear a resistance level of about 455 and that gives it room to 5%. sort of unfortunately.

butare looking for a lower high because of a loss of the up side momentum behind yields. and as to maybe after a corrective phase. we think yields will be a near term challenge perhaps still for the market. maybe not next couple weeks but beyond that. >> kind of hard to divorce the opportunity fundamentals from the technicals. we have the cpe coming out on friday. and i would imagine that is going to reset the bar for one direction or the other. >> and it can serve as a catalyst certainly for any kind of volatility up side and down side. we think it is more likely to the up side based on what we're seeing in terms of the short term up side -- >> up side of yields? >> for equities. rebound higher for equities. something that folks can sell for stocks that have either broken down or what wire e're sg on a broad basis.

and it follows what was a major and prolonged up trend, so we feel lick it will prove to be healthy yield, nice buying opportunity for us during the summer months. >> and live by the sword, die by the sword. apple, tesla, nvidia. >> those two are tough. >> a lot of the former darlings are? of the biggest losers. >> and amazon fell its 50 day. and those have exited such up side leadership, strong up side momentum. and i don't think that that will change. but apple and tesla are different beasts. apple has taken out the support that we've been watching around 169 to 170. if that breakdown is confirmed, that is a significant decline or sort of setback for apple. you've heard of a double top

formation, it basically looks like an m, that is apple for you if it confirms the breakdown. and tesla oiis a down trend andt is sort of respecting lee lower highs and lows. as to not really part of the mega cap complex at this time. >> how about gold? very famous william devane, he's an actor, but he sells gold on another channel. and he's worried about debt. but what about gold? >> i wouldn't put all my money in gold. it has been doing well. we can arrive at targets that are pretty impressive, 2800 plus for the price of gold. and yet we're looking for near term consolidation. we've had a major breakout from the long term range. we're seeing strength in other

commodities. no one is talking about copper. and we're looking for consolidation there too. and i mean days to weeks, not weeks to months. >> yeah, i don't feel it. >> they look like equities. so short term bounce to give way to the corrective phase. and we should welcome that as an opportunity to take advantage of what was a long term breakout. >> tied to equities. >> i don't think of god as risk on speculative. >> and it is not necessarily overly riskoff at times. >> thanks, katie. and when we come back, a dire warning from a columbia university rabbi to jewish students. he will join us to talk about the ongoing campus crisis.

and late, former boston fed president eric rosengren will join us to talk about the rate path and much more.

tomorrow the senate set to begin considering the new house

passed legislation providing billions in aid to ukraine, israel and taiwan. the package also includes a measure that would ban tiktok in the u.s. if bytedance doesn't sell its stake. president biden said he will sign the measure. joining us now, florida republican congressman byron done olds, a member of the financial services committee. he voted against the ukraine portion of the aid. and i don't know whether we were able to get you on before. i've wanted to have you on. i've seen you at the correspondents dinner and said hello. and great to have you on. and i want to hear your side of things on ukraine and there are factions in the republican party that are diametrically opposed on what the right move is. why did you vote against it? >> first, good to be with you. somebody who has worked in

finance for almost 20 years, it is pretty cool to be on "squawk box." i've watched you guys for a long time. but when it comes to ukraine, the issue in our conference is very simple. we have said up until last week's vote or until saturday's vote frankly that money for ukraine should be tied in some way to securing the southern border, that america does have national security problems. and they start here in the united states with what joe biden has allowed. so if you are going to send more money to ukraine on top of the $114 billion that has already gone to ukraine in prior suppl supplementals, then secure the southern border. if joe biden had done that, there would have been more support from republicans with respect to what is happening in ukraine. nobody wants to see putin take the country. there are many other national security implications of that. but at the same time, you cannot ignore the crisis that is in peril of new york city and every

other city and state in our country simply because joe biden and the testimon bombs want dem want open borders. and this package did not do that. >> you can see the other side.o. and this package did not do that. >> you can see the other side. the two things don't seem necessarily lynned. fill solve lsolveicily, and i'm sure what the real viewpoint should be, but philosophically, if you think this is akin to the 1930s and 1940s and poland is next on putin's list, there would be no doubt if you believe that it would have nothing to do the border. that would be like the democrats saying we want this, but only if we get, you know, abortion -- i don't know. pick whatever issue you want. they don't seem necessarily to be linked. >> and my response is in washington things are never

linked. what happens in washington is deals with cut based upon leverage and the ability to count votes. so you use every laegislative tool to accomplish your means. many bills have gone through capitol hill where there are two diametricry opposed subjects but put together to get the votes for it to become law. we all know this. so to ignore the reality of security for our nation while you are providing for security for other nations, as far as i'm concerned, does not make sense at all. so the fact that you are talking about security, whether it is here at home or abroad, those are linking subjects. at the end of the day, this is the package that the speaker and the leadership put on the floor. and that is why you have a majority of republicans, 112 of us, vote against funding to ukraine.

and we wanted the border secure. >> will speaker johnson survive -- i'd say long term, but that means until the weekend in the house these days. you were almost -- i think your name was thrown in there. you don't want it. why would anyone. but you think speaker john sob s son survives this? >> i to. cooler heads will pre-australia. prevail. and i think that speaker johnson will remain. we'll figure out the election and go from there. >> do you know if you are still on the short list for veep? >> you're going right to the hard stuff. okay. >> you said that you've seen -- you're not a first time viewer.

>> i mean, i don't know. i think that is something that the president and his team will work through. i've been very clear that whatever the president trump cities ty decides to do, i'll b assumption difference. i just want us to win. there are a lot of fiscal and security issues that we have to address. they are hurting americans through our country. so we just want it fixed. so whatever the president decides to do, i fully support. >> and i wanted to have you on for a long time. and good to have you on today. and maybe we'll see you again this week in person. maybe that is a possibility. is that possibility? >> oh, no, you won't see me this year. i got stuff do. i think i'll be in arizona. >> you got stuff? >> yeah, i got stuff going on, joe, it is important. >> we watch what congress usually is it and i figure you have a lot of free time. i'm kidding. congressman, thanks. good to have you on.

>> thank you. big story after the break, we're coming off a tense weekend here in manhattan with intimidation and harassment aimed at jewish students from columbia university over the israel-gaza war. we'll speak about all that has transpired and what may come next.

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actually doing to be held virtually today. this coming in a statement the university president saying they neat a reset and a chance to deescalate the rancor of recent days. she is referring to protests and calling for the school to divest for companies connected to israel and in-tim ltimidation ay more that has emerged. a rabbi recommended that group of jewish students return home and not come back until the security situation improves. yesterday the white house blasting really the calls for violence, intimidation of jewish students. and joining us now is rabbi ingberg, he is senior director for jewish life and senior director of the 92nd street wide. good morning to you. i think that we're trying to understand first of all what we think has even happened over the weekend, what you've seen given

your proximity to it all. >> my proximity is not only because my sin going is in that neighborhood, but also i have congregants who are members of the faculty at columbia university, i have family members who are actually -- they tend the university. and so i'm hearing firsthand and we're seeing firsthand videos from my niece, and i'm seeing it around me, and it is also -- i live in that neighborhood, so seeing it on the streets. it is unbelievable. just for the viewers to know, about 75 blocks from here, there are people chanting that october 7 and the massacre of jews, they are saying ten final this is can happen, a thousand times. >> and so we've said we want to tone down the rancor. someone will get hurt or killed. >> absolutely. and what the president said about there being a reset is

absurd. we don't neat reset, we need k consequences and enforcement. the university brought in the nypd in order to come kind of like -- you know, to clear the encampment, but it is just a small ggesture. it is not safe on campus. >> what counsedo you think is happening from the administrative live? we've seen it at other universities. what do you think is happening at columbia? we were talking columbia business school, one of the most famous, warren buffett a famous alumni, a whole long list, where is the pressure point on these universities for there to be some kind of meaningful change? >> so i don't know, i'm not in those back door conversations, but it is appalling that it took a congressional hearing in order to get the president of columbia university to begin some small gesture of disciplinary action toward professionals to revel in

what took place on october 7. this is the level of infection in our elite academic 123450ugs institutions. >> explain hughow this is diffet from spofree speech. institutions. >> explain how this is different from free speech. >> this is not an issue of free speech. people are not protesting a political stance, advocating for sovereignty, they are actually -- they are essentially calling for the genocide of jews who live in israel and israelis. they are physically intimidating students. students don't feel safe. one of the rabbis said that students in 2024 have to leave columbia's campus upper west side of manhattan, they will be safe on passover? the irony is so thick, we should actually be -- passover is a holiday this celebrates the jewish liberation in the face of

gee fwip shan ebegi egy egyptians. and they used the blood of christians, a common trope in europe that would make -- and here we are telling jews that unless they go home, they are not safe. and we know -- i know personally from my niece who is at home know, we know students are terrified. fwhaec they have been bullied and spit at. >> and the reason why i mention the business leaders, historically they have had influence over the universities. last night cnbc made calls to a number of business leaders, alum 23450i on alumi and connected to the university before and to a man, nothing. zero, no comment, no statement. we don't want to say anything.

and we could take columbia out of this. but more broadly, and i've had a number of conversations with ceos about this who all say i can only talk to you off the record. i don't want to talk to you on the record about this. i can't say anything publicly. i fear my employees will come for me, i fear that the customers who are against this will come for me. what do you tell those people who are watching right now on this issue? >> this is a time for moral clarity and for moral courage. one of the great things about the story of passover is that in order for the israelites to become free, god gave them a test, they said take the god of egypt and bring him 24 your home and that will become the paschal offering. israelites said that is terrifying, how do we bring the god of egypt into our home and sacrifice. so that is forever the emblem. the courage to do the scary and

risky thing. it is remarkable to see how leadership here is so wanting. >> is there a way to -- >> governor hochul and mayor adams are more vocal and the white house who already issued three statements on anti-semitism has more moral courage that be columbia university leadership. >> so is there a way to stand up for jewish people and against anti-semitism and at the same time potentially disagree with the approach israel has taken as it relates to gaza? >> of course there is. peaceful protest is something guaranteed by -- that is our constitution guarantees that right. but we're not talking about peaceful protests. go to nyu where encampments are also happening. >> and i think we have live video of yale right now physically as we're having this conversation. >> absolutely. >> and you can make the case

that anything easy really -- >> and this is yale right now. >> and anything israel is doing is the stated intention of making it safe for people that are in those areas so that this never happens again. and the fwaugauntlet was thrown down. so i can make a case against what you are saying that they should be taking a different approach. >> i'm suggesting there is clearly disagreement -- [ everybody talking at once ] >> some of these feckless krokrceos are willing to speak out on gender misidentification and the left wink tropes. but they won't speak out on this. it is disgusting. it is a joke. >> the double standard of using a jewish -- the persecution of jews or the way that protests is

it happening is just glaringly obvious. and so to answer your question, of course to be able to disagree with the government or policy is one thing, but for those using libelist terms that are inaccurate and not true, but ironically also supporting hamas, we have people who have saying -- holding up signs next to jewish protestors that says next hamas rockets star get these students, these people. >> and these are protests on campus and the university administration has done nothing about that? >> absolutely nothing. small measures. token measures. the token measures from the university president is shameful. the fact that it took congress -- >> i got one that you think will be very easy or very hard. it happened after some of the issues at harvard.

bill ackman came out and others said that if you are doing this, we won't ever hire you. and larry summers said young people don't know any better, we sthoont g shouldn't give them a hard time. what does the rabbi said? >> it is clear there has to be consequences for this behavior. moving forward 12steps that we should be taking, they should be expelling and firing professors and students would social media accounts have the celebration of hamas' attacks and that the vile support for those activities. it is not resistance to murder men women and children and so on. and business leaders should be penalizing employees. goggle just did that. right? a great thing. we have alexander carp.

and so we have a examples of the business word hold holding the universities and students to account. and marketing conversations can teach how they lose brand e equity. the product is subject going forward. and the business world should use those consequences to help make a change happen. >> rabbi, thank you for coming in. >> absolutely. i'm hoping for safety for all people especially for jews. last thing i want to say, to the jewish students, they are banding together, i know they stay go home. but with our allies, we should be banding together to make all universities safe for jews and for all people. >> thank you. appreciate it. >> thank you for having me. when we come back, more on the markets and the fed. tom lee will be joining us.

futures this morning have been pretty strong all morning. mur do dow up by 80. and stay tuned. at corient, wealth management begins and ends with you. we believe the more personal the solution, the more powerful the result. we never lose focus on the life you want to build. it's time for wealth solutions as sophisticated as you are. it's time for corient.

buy now pay later loans are seeing a boom. and also a boom in private credit markets. kate rooney is joining us now with more. good morning. >> good morning. so these installment loans for things like pelton booikes have been packaged up and sold. and there 1 strong demand. but with anything, it comes with risks. this is under the broader umbrella of asset based finance. roughly a $7 trillion market. expected to grow to about $9 trillion in the next five years or so. roughly half of that is consumer loans. so mortgages, autos, credit cards. buy now pay laters that been supplants some of the car landing. luring some in with 0% apr. especially popular with the younger shoppers.

it hit a record the last thanksgiving shopping weekend. some though are raising red flags when it comes to more consumer loans being off loaded to private credit. it is an opaque market making it difficult to determine underlying credit quality. and dodd-frank regulations make it less appealing to the banks. and there are tighter rules around asset-backed securities. and a stanford professor telling me that another risk is that lot of finteches specialize more in tech versus underwriting. a firm though that is one of the largest players, it says it is a core competencompetency. and demand from the issuers affirm at least about $10 billion in loans last quarter.

. back to you. >> that is pretty good rate com pupd bound rate. thanks. and we're getting a set at the latest look at the preferred measure of inflation. later this week we'll get core cpe. investors hoping that the data will help clarify the plans for interest rates and whether we'll see any cut this goes year. a much better take on what is happening for inflation. and for more, we want to bring in eric rosengren. let's talk about this because this is a huge issue. we have one strategist saying that the pce will be more important than earnings this week for determining the direction of the markets. we've seen yieldses run up pretty 1257ksly. a lot of questions about inflation and whether it will be strong are than people anticipated. what do you think? >> i think you get different

perspective depending on which infliction index you use so the skrchlt pi which measures out of pocket depends schurs by consumers is much higher than the pce index. so core pce is currently 2.9%. and there are several differences but the most important aspect is that he have cpi puts a lot of weight on shelter. and shelter coming down only very slowly. pce puts more weight on medical services. and medical services i've been much closer than 2% in terms of how much the prices have been increasing. so we have a divergence between the two indices. i expect that the general trend for pce core will continue to be down. so if you look at year over year pce, there is still a towndownw

trend. cpi looks like it is flattening out at a high rate. some is the difference in weights. so to the extent that shelters coming down much more slowly, that means that it will look a lot flooter and taking longer to get down to a level consistent with 2% inflation while pce inflation is likely to continue to drift town. i expect it to go down a little couple tenths over the course of the year. >> pce is the fed's preferred index. it stlips out some of the things that are usually a little more vol tail. volatile. so maybe that explains the difference between people versus exp experts. >> consumers focus on what they write checks for. and biggest check made most consumers pay for is their cost for either rent or their mortgage.

medical costs, some paid by employers or the government dependsi ing on what kind of insurance you have. so consumers don't necessarily feel the full cost of medical services the way they do for shelter. and transportation is another area where car insurance and car repair has gone up. so the fed isdoes look at pce, t it looks at all indicators. and it will be a little bit concerned if cpi looks like it is leveling off where pce continues to drift down. it will make it a slightly more difficult debate than it normally is. normally the two indices move together pretty well prior to the pandemic there was really only three tenths of a percent

difference. >> fair to think maybe this time it is different with husing and it being more persistent of a problem some interest rates change so drastically. a lot of people locked in to 3% and lower mortgages that won't move. and this could push up housing for some time. >> two components to the important areas on the shelter component. one is for people that rent, and the other is for people that have a house but they calculate an owner equivalent rent. detached homes have continuely high prices. but apartment units are coming down. so a mixed difference but there is more persistence. it doesn't come down nearly as other components. the many goods categories that

are basically flat right now. >> eric, thank you very much for joining us. obviously a big week and we'll see how things play out on friday. thank you. >> thank you. and coming up, amazon's quest to dominate pretty much all of commerce and we'll speak this morning with the author of a new book that is typhooning in to the company's tactics. you've read about some of them in the "wall street journal." we'll discuss it and the morality of it as well. and meantime tomorrow two interviews from the front lines of ai, co-founder and ceo of anthropic and also perplexity, two startups making massive waves in the ae chreluol it vot. . he is really boxed in here. -not a good spot. off the comcast business van. into the vending area. oh, not the fries! where's the ball? -anybody see it? oh wait, there it is! -back into play and... aw no, it's in the water.

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a new book is titled the everything war, amazon's ruthless quest to own the world. and joining us is the author. great to see you. good morning. condigratulations congratulations. book will be out tomorrow. but so many questions about amazon. uhe been publishing a number of the excerpts and other stories that relate toot issues that you raise.

a lot of talk ctics amazon uses understand how folks are doing certain things. saying that they are somebody else in some cases to find out some of the information. and i'm curious whether you think this is right or wrong ultimately. >> so amazon likes to tout all the good it does for small businesses and consumers on its website. but what i found in investigating the company for the book is that it actually spies on its third party sellers, it steals ideas from entrepreneurs. and it gouges a lot of the third party sellers that it holds up as an example of the small businesses that it is helping. they say they are customer obsessed but what i found is they are competitive obsessed. they are misrepresenting themselves to get on rival platforms to get secrets. >> and so let's talk about the tactics in a second, but the customer obsession versus the competition obsession, there is an argument to be made that the customer obsession has helped

them grow their business and also their -- one of the reasons that i am a prime member, so i pay for the membership, but i think for the most part i think i have a great deal, convenience seems worthwhile so this is a pretty great store. am i misthinking this? >> no, but think most customers realize that 60% of what is sold on amazon is sold by third party sellers. and it flyers in the face of some of the things that they are selling. things like carbon monoxide detectors that don't detect carbon monoxide or children's toys with lead. if you are customer obsessed, why would you be selling stuff like that? >> and when you talk about the tactics, this big river investigation, a company effectively made up company to try to pre-extend that they wert

amazon so they could go on walmart and others so they could understand what is going on behind the scenes. >> and i imagine -- and we were debating the morality of this. i imagine that there is a lot of folks who are always looking at their competition, trying to figure out how they work things. it would shock me if somebody at walmart is not -- or hasn't tried at some point in the ball game to sell products on the amazon marketplace, which is a very open marketplace. i'd be shocked if they hadn't opened an account on shopify to see how it works, to see how quickly the shipping really takes place, to see what kind of advertising and promotion they're going to try to charge. so, this is why we were sort of debating what this really -- how we're supposed to feel about all this. how do you feel about it? >> i would say that there's competitive intelligence, like secret shopping or, you know,

maybe an employee sets up an account on a rival website. what amazon did here was set up an entire shell company, they were super secretive, and misrepresented themselves. they took meetings with their rivals to get information and shared it back with amazon executives, and i think that goes beyond the normal secret shopping or benchmarking that a lot of companies do, and ultimately comes down to what they learned, how it was used, and that gets into the legality of it. >> underneath this whole book, i think, is a bit of a -- a lina khan question, which is, frankly, what should happen to this company. is this company good for society, bad for society? and if you think it's not good for society, not good for the consumer, is it supposed to be broken up? is it supposed to be regulated in a different way? is it supposed to be fined if you believe that some of these things are not appropriate? where do you end? >> the ftc obviously sued amazon for being a monopoly, and if you read the lawsuit closely, they say that maybe they'd go after structural remedies, which could be a break-up of the company,

but there's a question here. amazon's been around for nearly 30 years. it has all these tentacles that are market leaders. you could get into a standard oil situation where you break it up and the pieces are so big in their own right that they just gain more power and increase in value. i think that's what the regulators are grappling with right now. >> do you think it's a monopoly? and i -- online, obviously, it has a huge market share, but the question is, are we supposed to define it strictly as online? are we supposed to define it as retail writ large? >> wi don't know if it's a monopoly in the legal terms but they resort to business tactics and they have their finger on the scale in a lot of ways. >> final question, what has amazon said to you about all this? what was the process like with them? were they saying -- >> i did a full fact check of thebook with them. they did not really participate in an official basis,so they didn't give me access, but i got a ton of access on my own.

>> did they call you up when they saw the book and say, this is crazy, we love the book, we hate the book? >> they haven't read the book yet. i guess they'll see it tomorrow. >> congratulations on the book this morning. thank you. when we come back, fund strat's tom lee is going to join us on the recent market volatility, the bitcoin halving and so much more. some things that work better together. like your workplace benefits and retirement savings. voya helps you choose the right amounts without over or under investing. across all your benefits and savings options. so you can feel confident in your financial choices. they really know how to put two and two together. voya, well planned, well invested, well protected.

guess who's here? tom lee, fund strat global advisors cofounder and a cnbc

contributor. i was thinking, who would i like to talk to? and here you are. there are some reasons that you think maybe we're nearing the end of whatever you want to call this, this tough period for the past two weeks >> yeah. it's been a painful two weeks with. i think some of the ways to think about why we're near an end is inflation expectations have way overshot to the upside. one-year forward inflation is at 4.5%. it's where it was in october 2022, march '23, october '23, so at the peak pessimism. >> that's one thing. >> yeah. short interest has soared. like, one week, goldman shows one-week short interest in etfs rose by the most since 2022. median short interest in stocks is at basically a three-year high. we're rarely oversold. if you look at internal measures like the percentage of stocks over their 20-day moving average, it's down to 8%. again, a turning point. and now, we just need a positive

catalyst. i think as long as inflation tracks better than expected, i think we're in a good position to rally. >> you look at different things than katie stockton. she said, there has been some damage, and therefore she thinks maybe there's more work, maybe not a lot, but maybe some more. has there been some damage, or do you see all positive indicated as far as we're getting close to the end of the -- beginning of the end? end of the beginning? >> i think probability is probably what she's looking at, and i think there has been a lot of damage to the markets, but there are ways to look at why things could be turning. mark newton, our head of technical strategy, says the cycle turn date he was looking for is april 20th, and that's -- >> 4/20. >> yeah. >> perfect. >> if you look at things like the demark count, we're at almost a 7, so we're only one or two days from a potential

bottom. >> and we got oversold really quickly. i don't know why. >> they say bull markets rise in an escalator, fall in an elevator. it's what you would expect in a rising trend is sharp corrections, and it shakes people out, and i think there's a lot of top callers, but to me, i think this is a good opportunity. >> so, also, the day before 4/20 -- did you know 4/20/24 is frontwards and backwards? >> it's a palindrome? >> certainly is. but the day before was the halving. what does that mean for your bitcoin projection? >> it's a reminder of the sound money of bitcoin, right? it's preprogrammed every 210,000 blocks to cut the block award. we know it means you're cutting supply, but demand has been strong, and actually, bitcoin network usage has really been strong because of things like protocol, so you've made the demand side stronger and the supply side smaller, so i think it's upward pressure on price. >> so, you always have crazy

forecasts. what's your forecast now? i'm doing something while you're doing this. >> i think bitcoin definitely makes new all-time highs this year, so i think something like $150,000 is probable this year. and then, longer term, i don't think there's anything wrong with those targets people have of, like, half a million for bitcoin or much higher. >> i was opening this for andrew, because first thing i read this morning was the dirty money. billions. and i kept looking for the b-word, and it's -- jesus, it's just not anywhere here. not one thing about bitcoin being used for the money laundering. so, it can be done without bitcoin, i guess? >> yes. i think that money launderers -- >> since the beginning of time. we always point that out, right? >> and commodities, collectibles. >> ransomware is always bitcoin, and that's the nastiest kind of

extortion, so there can be some uses, but you can use cash, right? >> you can use cash. >> did you see that. >> i did see the article. >> did you think about me when i read that? do you ever think about me? >> happy passover. >> thank you. thank you. >> thanks, tom. >> make sure you join us tomorrow. "squawk on the street" coming up right now. ♪ good morning, welcome to "squawk on the street," i'm carl quintanilla with jim cramer and david faber. mideast tensions ease, the house passes some foreign aid, and we get set for a third of s&p market cap to report earnings this week. our road map is going to begin with stocks aiming to rebound following the s&p's worst week of the year, investors gearing up for that headline. tesla is slashing the prices on several of it