>> it will be a friends and family offering. you bet. >> thank you >> have a good weekend >> thank you. >> definitely. >> thank you. i feel like i need to write some code this weekend just to make it a legitimate thing that might be rough. i got to buy a book. andrew, and becky, will be on that coin on monday. the three of us. make sure you join us to see it. have a great weekend "squawk on the street" is next good morning welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber futures pretty steady. a day after moving dow 34 k for the first time 10-year 1.57, coming of that five-week low. our road map begins with wall street's record run. stocks on track for another bounce at the open as the dow does close above 34,000 for the first time plus morgan stanley had a strong

earnings beat but the investment bank disclosing a $911 million loss linked to the meltdown of archegos capital. and pulling the plug on robinhood, why regulators in massachusetts are moving to revoke its broker/dealer license. carl >> guys, it's a good day to take stock at the levels we're at here, jim, in terms of the market not only are 96% of the s&p above their 200-day, that's the highest percentage going back at least 20 years, and b of a's got this chart out this morning, jim, looking at year on year gains and the 76% from the march lows is the third best ever, going back a century >> look, we have weeks of earnings and i know one week is not enough but i'm struggling to find companies that did not report unbelievably good numbers. last night, it was alcoa and ppg. classic industrials. they were amazing. the day before, united health.

just an extraordinary number really igniting the health care group. morgan stanley if you look at wealth management, if you look at any line other than the one that david i think is going to discuss, which he should and a goldman sachs number and david, you have to admit, these stocks that look expensive, the price to earnings multiples after we see these numbers may not be as expensive as we thought. >> okay, then why have they not responded particularly well? and listen, we all know the financials have had a good run since let's call it november, but jim, when it comes to earnings, they don't seem, other than goldman, which has had a very good year, so it did respond positively i don't know what the moves have been off the earnings but they haven't been overly impressive, have they? >> well, i had thought that many of them would act like jpmorgan, i thought that the reason why we, they've gotten to where they

were, is because of these quarters, and then i see profit taking, and that is what happened in jpmorgan but take a look at wells fargo, wells fargo is really again, not as bad as we used to be. goldman sachs, you got to take the earnings, i mean $43 so i think david, i expect the group to start the season off with profit taking after the run they have and instead we have stabilization and i think that may be enough for some of us who are quite worried about the altitude we're at. david, it's not that bad and maybe that's the key for me. the stocks didn't sell off. >> right but in morgan stanley's case, let's talk about it right now, jim, we were talking about goldman sachs, they're not the same firm, obviously, they own e trade, investment management, certainly more important, institutional securities did see net revenues up 66%. but what's an appropriate multiple here? are you starting to get a sense forwhat an appropriate multipl

is, morgan stanley perhaps gets a bit higher because there is a belief of the recurring streams as a result of wealth management's importance overall, but nonetheless, i'm sort of curious as to where you come out here. >> 15 multiple i think this is the one that has the least risk the least episodic i also think by the way if they play e trade right, they can take a lot of business from what is more and more looking like a renegade firm, which is robinhood. and we're going to talk about robinhood in massachusetts, but the idea that perhaps a state, massachusetts has been aggressive periodically with securities, but for a state to say those guys shouldn't be in it, where do they go i think they go to e trade i think what he has going and i think he deserves the highest multiple in the group bass he has a business that i think is the stickiest and the least episodic and that's what matters. carl, when you look at what is going on with these earnings, you realize we spend so much time talking about coinbase and we spend a lot of time talking

about dogecoin which i think is a complete waste of coin, but these companies are where hundreds of thousands of people are working, and they're doing really well, and let's not forget, they're being paid a lot, it's then, then it goes into housing starts which are very good, it goes into autos which are very good and it makes the economy very flush, without a lot of debt. and carl, we're used to thinking that americans overpay, overspend, go out too much and instead what we really have, we have a country that is very solvent. now, are we 18% growth solvent no and i think we do have to talk about china. china's bigger than bitcoin. i know that's hard to believe that anything is bigger than bitcoin. but carl, we're doing pretty well without borrowing a lot of money. >> certainly retail sales, jim, would back that up and i know morgan stanley yesterday said on the heel of the retail sales, first half, gdp, they think, is going to average 9.6 first half 9.6. and certainly, as far as the consumer goes, that's what brian moynihan talked about on closing

bell last night. take a listen. >> if you look at the first part of april, that growth rate continues. so that bodes well for the recovery as long as the vaccine, virus track continues on, and as long as people get vaccinated, and the economies open you're seeing even before that happens, you know, through march, and now through the first couple of weeks of april, you're seeing growth at 10% plus rate which is very strong. >> jim, we'll get to some of the individual names today, on the sell side, but mcdonald's gets a price target increase. simon property gets an upgrade and the consumer wants to buy clothes but clothes in person. >> yes, one of the things that's happened is that it's so clear that the mall, the mall was pronounced dead, and yet, when i talk to american eagle outfitters, i'm getting a view that there are certain stores in the mall that are definitely dead but here's a company, this stock is up 71% year to date,

american eagle outfitters, and they have the right clothes for the environment, and pay attention to a man by the name of jay shottenstein, he may be the, david, i know that this is a tall order, and i know that someone has to please cover their ears, the mickey drexler of this generation, david. >> really? all right. that's high praise i think you can say. >> we don't have a mickey drexler. we got to have something. >> we still have mickey drexler. i mean he's probably out there watching right now saying i'm still here. what's the problem >> well, running a company ceo. >> yes. >> understood. >> i think mickey is the best. stitch fix may dress you, david, mickey dressed me. >> understood. >> mickey. >> yes. >> during the gap, and setting styles for americans for a long period of time and great success at j crew until of course they didn't have

great success but that's interesting that you feel that all right. >> i do. i feel that. >> so it's sustainable. >> i'm talking about the gap. >> i know, but when you're talking about american eagle, you think it's sustainable, in other words, fashion is tough, right? they can keep ahead of it? >> i think aerie, is real, with a couple billion run rate. >> and i knew when i said mickey drexler, you would feel that way. and i thought it would happen because all week we've been very simpatico. >> i want to talk about what we talked about at the top of the show briefly, but they did of course, jim, suffer a $911 million loss from archegos now they didn't tell us at the time, unlike nomura which put a statement out $2 billion and credit suisse admitted their total and they still continue to sell some stock prior to giving us that number

but goreman did comment on it, on the call. and here's what he more or less said it resulted in a net loss of $644 million that represents the amount the client owed us on the transaction and they felt they had to pay that back and we made a management decision to completely deen are hisk the remaining small or long or short positions and went on to say that we thought that was the best -- reduce risk as rapidly as possible and in so doing had h-another $267 million loss. and some contrast to goldman sachs which doesn't seem to have suffered much there, perhaps moving more quickly to get those default documents ready, for the second it was happening and boom, selling them out at the same time, morgan stanley was the lead underwriter of what may have caused in part of the entire implosion to begin with, that stock sale of viacom, at $85 a share, interesting of course, prime broker, getting ready at morgan stanley, to sell stuff out at the same time, they're selling stock, that they

thought originally archegos might actually step up to buy a lot of, of course that ended up not being the case there is a fire wall there, although you have to believe that the senior levels of management, they certainly knew what was going on in capital markets, and in the prime brokerage, jim very interesting >> yes, look, this is, this is the disaster that keeps giving, david. >> yes. >> i was shocked at the 911 million. i had thought that morgan stanley acted with alacrity, but this thing was just a disease. it was a pandemic. remember, this was the guy who had the mental quarantine, david, and there are still people who want to give him money. julian robertson says he wants to give him money and he should give him money to repay morgan stanley. >> the loss, it's almost a billion, morgan stanley, 2 billion nomura, 4.7 billion credit suisse and other firms that maybe the numbers aren't quite as large but this was just a complete and total disaster and as you say, and i like it, mental quarantine, something

went very wrong. >> jpmorgan was totally onned to guy. totally on to the guy. >> you think so? did they just get lucky? they didn't just get lucky they put it through the risk management and said this is not the guy? >> look. >> i'm sure they will say of course we did. >> maybe jpmorgan, they're joshing me, david. they're joshing me. >> they didn't do business with them i'm just saying it's nice to say we definitely knew because he was, you know, it was -- >> i like that they doesn't trust madoff, they got lucky on that, jamie dimon gets lucky a lot lucky jamie. >> do you think he was making decisions on this guy? really you think he came up to him? maybe. >> he's busy at home, i don't know they leave him out of the loop what do you want plea to say >> you may be right. >> i want to talk to jamie about it. >> do you have him >> no. >> why not >> maybe he'll call me now. >> why not >> i don't know. >> haven't talked to him in a

while. >> carl, david is being very - >> we're getting breaking news this morning, on treasury, and we will turn - >> china is on a watch list of countries with questionable currency practices but not labeling china a currency manipulator. remember, the trump administration him posed that designation on china in 2019 and lifted it during the final stages of the trade negotiations today, treasury officials say they still have significant concerns about the impact of china's practices on u.s. workers, and they called for greater transparency around its foreign exchange intervention, the mechanisms that are used and particularly, the relationships with state-owned bank, and they said that china continues to merit close attention. now, in addition to china, ten other countries are also on that monitoring list, ireland and mexico were at it this year but treasury did not formally label any country as a currency manipulator even though it said

that vietnam, switzerland and taiwan met that criteria treasury said that the pandemic made it difficult to assess the policy changes and it is working closely with all three countries. back to you. >> thank you, interesting. we'll come back to you on that, i'm sure in the hours and days to come. we'll take a break here. futures look pretty good as the dow is going for the fourth week higher we will get to some of the upgrades as we mentioned comcast. the me bhouilders are just getting started with housing data back in a moment

the lexus es, now available with all-wheel drive. this rain is bananas. lease the 2021 es 250 all-wheel drive for $339 a month for 39 months. experience amazing at your lexus dealer. some say this is my greatest challenge ever. all-wheel drive for $339 a month for 39 months. but i've seen centuries of this. with a companion that powers a digital world, traded with a touch. the gold standard, so to speak ;)

want to save hundreds on your wireless bill? with xfinity mobile, you can. how about saving hundreds on the new samsung galaxy s21 ultra 5g? you can do that too. all on the most reliable network? sure thing! and with fast, nationwide 5g included - at no extra cost? we've got you covered. so join the carrier rated #1 in customer satisfaction... ...and learn how much you can save at xfinitymobile.com/mysavings.

massachusetts regulators seeking to revoke robinhood's registration at a broker/deal ner that state in a follow-up filing to an earlier complaint, they accused the firm of continuing quote a pattern of aggressively inducing and enticing trading among its customers. robinhood has filed a complaint of its own against the regulators jim, we know that massachusetts is aggressive relative to other states, but there's some other cross-currents too, including some of the issues, robinhood has had in the past 24 hours, trading in crypto. >> yeah, look, robinhood's doing a tremendous amount of crypto. it's up just an extraordinary amount in the last three or four days again, are they able to handle volume you know, when you handle volume, like the way they did in the last week in january, you would think that they would end up really being let's just say

castigated by younger people who would then move to e trade or swap, but it didn't. people keep opening accounts with them. they have the midas touch. this is a 24-page complaint by the state of massachusetts now, we all probably think, wait a second, aren't we a federally followed, federally, you know, we have the s.e.c., i always find these as being, are you kidding me, the state of massachusetts, aren't you a member, nt aren't you part of 49 other guys but they can cause a lot of problems if you're about to come public if you're about to come public with the state of massachusetts suing you, right >> speaking of regulators, jim, there are comments out of david eihorn talking about what he called i think quasi-anarchy, ruling the markets, talking about some very small cap names and if they wanted chamath

palihapitiya to stop manipulating, they should have done so with more than a slap on the wrist. and some believe with gensler confirmed this week that things will change. >> gensler is very sophisticated and i would say he's not a back hopper, i think he is going to look at the, at the morgan, i think he will look at massachusetts, and this thing by the way is not an iowa complaint, massachusetts is literally saying that, regarding options trading, they're not doing the right thing, when you see something like that, when you see violating company policy, that is what gensler excels in. i mean i think he may look at this thing and say this thing does not have the controls, really, that belong in any securities firm, david >> well, they learned the hard way, right it was an unexpected, to say the least, event what happened in gamestop and i think there is little doubt and certainly having spoken to many people around that, if they didn't raise that

$3 billion, they were done they were done >> it was a bad weekend for them. >> yeah. >> but they lived to tell the story. >> one would expect that their risk management and that they realize what they really are, which is they're a broker/dealer, right, and that's what they are. >> yes yes. it was the, by the way, it was the amc that really broke them, not gamestop. >> yeah. >> amc >> right. >> amc you know, what's amazing, david, i have a friend who got the call that saturday, it was from svlad tenev, and i need $3 billion and can i see a p&l, and apparently, vlad, we don't know for sure, but say, p&l well, i just need the $3 billion. now, david even in this day and age, i think $3 billion is a lot of money to ask for without having a p&l. >> it is a lot, i agree. it is. right?

>> i'm sure he had could have gotten together a p&l if they needed it but they needed the $3 billion pronto. >> they needed it immediately if not sooner. >> yeah. it's kind of like, well, you know, i mean, can we talk about it later, send the $3 billion in, and then we'll have a frank discussion >> how do you come public when you have massachusetts now on you like this? i don't know >> that's what i'm thinking. but it's a commonwealth, maybe the states are okay, it's a commonwealth, i guess pa is a commonwealth and virginia, and maybe 47 others? i don't know i tried to get vlad on the show last night hey, listen. i can get jagdeep on but i can't get vlad >> i don't know what's wrong with you. >> these are all the first name people in this new generation. you have jamie and jagdeep >> elon, of course >> elon. >> who else? who else is like cher of this year give me a cher. >> give you a cher

>> how about - >> how about mr. kitty, how about him, mr. kitty, what was his maim i forget >> roaring kitty >> thank you, carl >> i come to you with diamond hands in yolo and you give me nothing. >> i have nothing for you this morning. i got a lot going on here, what can i tell you. >> he doesn't understand pop culture or stock pop culture. >> sad. >> banking, right. >> it's really sad >> dj -- >> almost ten years, jim. >> somewhere. >> i need 3 billion this weekend, david. >> i'll wire you. >> i promise to give you a p&l later on i'll give you instructions. >> guys, we're back in a moment.

that's a very good question. will there be an ev for me? what about me? an ev for me? what about me? can i get one too? an ev for this princess? what's an ev? and there better be one for me. and what about michelle from michigan? me? what about me? us? will there be an ev for me? me? me? me? ♪♪ in the romo household we take things to the max oh yeah! honey, you still in bed? yep! bye! that's why we love skechers max cushioning footwear. they've maxed out the cushion for extreme comfort. it's like walking on clouds! big, comfy ones! oh yeah! everyone wakes up every morning to a world that must keep turning. the world can't stop, so neither can we.

because the things we make, help make the world go round. they make it cleaner, healthier, and more connected. it's what we build that keeps things moving forward. so with every turn, we'll keep building a world that works.

on this friday, what a week it has been, with the earnings and the j&j pause, the macro data, coinbase and crypto, and obviously the record highs, and the futures looking to build on it this morning. dow looks to open up 100 we are getting t oni bl hepengel in about five minutes.

when traders tell us how to make thinkorswim even better, we listen. like jack. he wanted a streamlined version he could access anywhere, no download necessary. and kim. she wanted to execute

a pre-set trade strategy in seconds. so we gave 'em thinkorswim web. because platforms this innovative, aren't just made for traders—they're made by them. thinkorswim trading. from td ameritrade. walter, did you know geico could save you hundreds on car insurance and a whole lot more? so what are you waiting for? world's strongest man martins licis to help you break down boxes? arrrggh! what am i gonna do to you box? let me “break it down” for you... arrgggh! you're going down! down to the recycling center! >>hey, thanks martins! yeah, you're welcome. geico. switch today and see all the ways you could save.

we haven't talked a whole lot about vaccine or pharma yet, that brings us to cramer's "mad dash". >> you know, something, carl, a stock that's been left behind, that is almost quizzical is pfizer here is a company that has obviously the cure so to speak for the hour at least, and that's what i want to go for

because what they've got is a vaccine that is considered to be incredibly effective but you know what, it looks like because of all of these variants we will need a booster pfizer makes a tremendous amount of money off the vaccine maybe people feel it's free. it's not and that could really help them bridge what is regarded as being a very difficult patent cliff that we have in 2025, if we have to get a booster every year. pfizer's very disliked i mean the price earnings multiple at pfizer one of the lowest in the market it sells at about 10 times next years, if you get this additional booster, and it fields 4%. carl, it just, to me, the amount of money it's making could allow it to bridge what the patent is, because they've been an inquisitive company, and i can't believe that this thing doesn't trade higher it's been a dog. >> it's amazing scientifically and logistically what they've

been able to do. b of a points out a billion jabs by april 23rd. a billion jabs around the world for something a year ago seemed unthinkable. an journal story this morning that says that j&j privately reached out to both pfizer and moderna and said hey, look into clots, and maybe we can speak with one voice, and the other two declined >> i would say dr. borla, who is truly a scientist and an intellectual, was able to rustle up what i think is probably the biggest farm in kalamazoo, everything is done right and independent and i think a lot of people in this country recognize that they owe their lives to pfizer but they don't want to own the stock and i find that curious. i think the stock could represent great value. >> and it's funny, jim, i know, i think i saw you yesterday tweeting, starting to question the decision making behind polling, or pausing, i should

say, the j&j vaccine. >> david, this is such a small, look, one person died, we never want that, but david, i think that they've made it so that some states have already pulled, and people don't want to take it because they think it's dangerous. the cdc david, i think is kind of acting in a rookie fashion. the nih seems to have lost touch with america these people seem to be not understanding that there's a resistance to taking the vaccine to begin with. and they've just made it so you're more scared what about a simple label, which just says look, if you have x, go back to your doctor but this is more dangerous than the flu shot, that you go to walgreen's and take, that's not right, david less dangerous, and now they've made us feel like it's more dangerous. and then this j&j, can't get these other guys to go with them, now you really feel like wait a second, you have this baltimore facility and bio and

nih and cdc making you feel like the vaccine is dangerous and you have new hampshire saying no more masks, there is no social distancing anymore, people on top of each other again, and it's not cured we're getting 70,000 people getting this every day and a thousand people dying. what is going on, david? >> well, i'm not the right person to ask, as you know >> you're my partner here. >> i am your partner, don't you ever worry about that or question about that, no matter how mean you might be to be, i'll still be there and i'll give you the $3 billion this weekend i promise. and behavior, you're right, a lot of people don't have full answers. there is a belief of course, in michigan, we've talked about, because that unfortunately right now is the center of the worst outbreak amongst the states in the country, and hospitalization rates are going higher and deaths are unfortunately going higher as well but the hope is the vaccines will overwhelm it all and they likely will, carl, given the rate at which vaccinations are taking place. but there is still a need to

potentially be somewhat cautious in certain interactions if you're not vaccinated, the three of us, at least jim and i are fully vaccinated, jim, you and i will be back on this set together on monday >> are we? >> yes. >> can we do a mad dash, with clasped hands. >> yes yes, we can. >> clasped hands >> okay. >> yes >> i spy joke from a long time ago. about 50 years ago >> i got to tell you, the restaurants are getting open, and you have to be half your, you have to put half the people in that you could, or otherwise, you basically have to, you have to do contact tracing. now, i love you, david, but i'm not going to contract trace you. i don't have that in me. >> okay. that's okay. but you know what, carl, testing is going to be with us for a very long time and then when you, you know, it's funny when we have this conversation, i get back to thinking about reopening and people coming back to offices and when that is going to fully happen and how businesses are going to be dealing with it and

when they're going to potentially say well, we would really like to you get a vaccine but can we require to you know, but when you come back, we'd like you back and go from encouraging to perhaps being more a disciplinary approach these are key questions and a lot of people who run organizations are grappling with right now, as we move forward with fully reopening. >> are you aware of the citi program, the citigroup program >> no, tell me. >> where they're make can, people have to get tested at citi this is done in conjunction with dr. mina from harvard. and basically, monday, wednesday, and friday. before you come to the office, do a little test i'm getting the avid test this week i'm going to start taking avid every day, because if i'm that close to you, i got to protect myself from you and vice-versa i promise to test every day. >> really? well why, would you do that? you're fully vaccinated. the chances that you could actually catch anything are extraordinarily low. >> 1500 people.

>> 0.08% >> 1500 people. >> true. >> why would you do that >> i don't know. i thought it was a good idea. >> is that a rational approach is that based on the data. if you would approach risk in other areas if you new the actual data? >> no, but this one, you still have to quarantine periodically, like david, where the hell am i right now? everybody, can you get the dog over here? where the hell is marlin i mean this place, look, i'm at home, the doorbell rings, the dog barks, this is amateur hour, it's an amateur hour carl, i can't stand. it i want to go back to the set. and yesterday somebody ordered chinese food in the middle of "mad money." i mean this is nuts. i hate it. >> it's a weird collision. everybody who works from home understands the word collision between your work and your family when you're working at home but by the way, guys, a lot of

optimism about vaccination we are nearing the all-time high globally for cases, canada of course, ontario, not in good shape, and india is still a mess, david, i see right now, the head of the tokyo olympics is having to once again reassure the world that the games won't be canceled, because of the surge in cases in japan, and by the way, we do have an upgrade of our parent comcast which relies heavily on the distribution of those games. >> yes it does and obviously parts of comcast business, in terms of theme parks, for example, also impacted and movies as we all know as well you know, jim, when we talk about other parts of the world, and we are doing quite well, in vaccine distribution, in this country, when we talk about the eu, we look at those chinese growth number, okay, they've been open for a long time, they're back to normal, quite some time back and what about worldwide growth, and how you sort of try and interpret that, and infuse that

into your overall view of the market at this point, given there's a lot of laggards out there when it comes to combatting the virus with vaccines right now >> well, look, i know that i personally thought that j&j would be producing hundreds of millions this year, i mean pfizer's capable of doing that, but there's 7 billion people on the planet and i think that the best doctors would tell you, given the fact that this is a, we have no immunity against this, that unless we get everybody, then we're in trouble. now, israel is about 60% and they think that they've wiped it out so we don't necessarily have to get to 100%. but so maybe we get, we still need more, and there are countries that will be offlimits for years if they don't get this solved italy is not solved. my daughter is in spain. she hasn't been able to leave madrid for two years that's ridiculous. it's not ridiculous. but spain doesn't have it under control. italy, not under control these are developed country,

david. >> carl, we know the eu, while it did a fairly good job in terms of containing the virus with actions to do so, it has not done a particularly good job when it comes to, when it comes to distributing vaccines yet and that continues to be a key issue. >> yes you know, guys, i thought, i don't know if you've seen this yet, kind of a long report, 90 pages out of katy huberty this morning, guys, but basically about the new workplace and her argument that work from home is going to last longer than we think, and there are implications for technology on that, jim and in her words, longer and higher, because the idea that we're just going to go right back to where we were in terms of office work is just not in the cards, she says >> look, the banks want it to happen i think that they may want it to happen, but they'll often tell you, look, there are people who won't come back. one of the things that's happened in this era that is different from when i worked on wall street, is there's actually

freedom of action. there are people who are saying to the top boss, look, i can't come back, i have a comorbidity or i can't come back, i'm worried about immune problems i have, and none of these companies is going to take on the risk of telling someone with that, that they can't come back. and then there as he also this hybrid model where people are saying listen, tuesdays and fridays i don't go into the office and what's amazing to me is that the bosses are not saying well you're fired it's almost as if they are afraid of discrimination suits they're afraid of suits that basically say these are protected class people so it is going to be a new play, a new work force that basically says hey, today's not my day and there's going to be a substantial change in the way office work is done. and how the cubicles work. and the offices work i think it is really great for any company that does, you know,

when you rent a few offices at a given time, including some firms that we thought were never going to make it so i don't know, carl, i had never seen ceos have less power in my life they can't get people to come to the office what a basic thing that is gone. no, i'm not coming in today. well, are you sick no, i'm not coming in today. i mean, david, i don't know -- >> hearing it constantly and you're nailing it. it's exactly the same conversation not sure what we can do, how we approach, it maybe by september we start to make it clear and maybe our culture and your view of our culture are two different things and therefore we should part ways but we're not there yet. carl >> and by the way, guys, at georgetown, add georgetown to the list of colleges that are going to be mandating vaccines for students in the fall we have record highs on the s&p, again, record high dow, the vix closer to 16, this morning, than 17, and let's get to bob pisani.

hey, bob >> hello carl, happy friday great week overall we're up 1% on the s&p all 11 sectors started on the upside two to one advancing to declining stocks this is a really strong week every single day i want to point out techs flattish today but it's fine this week. it's with the markets up about 1% but it's defensive stuff that has lagged before that sort of caught up this week, so health care, for example, and reits, have been doing well, and health care reits, health care up 2%, so far this week and the defensive doing well and banks up fractionally today and banks have lagged this week and two reason that the banks have lagged this week, one, they tend to drop a little bit going into earnings season and immediately after that, and the second reason is you know, other than the, the core numbers have been fairly peppered, the stuff that people who follow the economy care about, trading numbers have been fantastic with the big money center banks but now you're getting into the big regional banks where the economy

is more important overall to what they're doing look at pnc today. a big provision release a huge beat on earnings a provisions release there were some other things that were in there that was important to them but look at what i call the economy stuff. average loan balance was down 2% net interest income was down 3%. net interest income and margins were lower because there were fewer loans out there, and there were lower securities yields overall. so that's the stuff people care about. net interest income to loans all on the tepid side. all of the banks basically reported this. yes, trading activity was amazing for many of the big money center banks but look at the response to the market we had blowout earnings from the companies this week and that's this is what they've done this week pretty tepid response given the amazing numbers. the street is looking through it and saying how's the actual real economies doing, and it's fair but not amazing overall. meantime, if you look at what's really going on in terms of like the sectors that are lagging,

some of the tech stuff has been lagging recently as the markets move forward and boy the electric vehicle stocks, these stocks were just darlings of the media, five, six months ago, and most of them are down 20, 25, 30% this month, this week, and well off of their highs. some of them are 50% off their high, plug power was just a tremendous company towards the end of last year and all of the companies have tremendous potential in the future and none are making any money and right now what we don't see on the list is tesla, a good week overall, up but these stocks have had a stunning fall from grace, just in the last couple of mons. carl, back to you. >> bob, thanks bob pisani obviously, you got to keep your eye on the 10-year which had an interesting day yesterday. good morning, rick. >> good morning, carl. you know, there's so many ways to look at yesterday i like to keep things simple consider yesterday a technical violation of an important level.

now, look at the intra-day chart of 10s what you see at 8:30 eastern, we went zoom, zoom, zoom. that's because we had pretty good data. you might be saying, well yesterday was a day to really, was it that bad to make interest rates go down? and maybe claims were a bit disappointing but i say the answer is. no it was technical. if you look at a two-day, i can give your virtual reasons why it was technical. first of all, look at yesterday's low, 1.52% and where did the violations start from 1.60 now if you open the chart up, to the 24th of february, here's what's interesting, i can't show you an intra-day that far back, and too many days back but i'll tell you on the 25th, that spike there to the right, that little spike, that close is 1.52. where we held yesterday. and you know what the intra-day high was that day we closed at 1.52 yes, that was the day we had the 1.61 spike, comes down settles at 1.52, that was the low, that

was the violation. technical. look at the knob the knob is starting to firm up a bit. it gave us early warning when it started to move lower and flatten. that maybe the long-dated treasuries were running out of virtual horsepower upside in yield and down side in price, that may be a baby and we might be coming into support levels and finally, the euro versus the dollar why am i showing this? the dollar has been under pressure down pretty substantially for the week probably the euro dollar 57% of that closing nicely, closing up at the best levels in well over a month. back to you. >> rick santelli, thank you. later this morning as we wrap up this inaugural week of "tech check" do not miss an interview with airbnb's brian chesky 11:00 a.m. eastern time more "squawk on the street" continues in a minute.

hey lily, i need a new wireless plan for my business, but all my employees need something different. oh, we can help with that. okay, imagine this... your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown, your sales rep lisa has to send some files, asap! so basically i can pick the right plan for each employee... yeah i should've just led with that... with at&t business... you can pick the best plan for each employee and only pay for the features they need.

what if you could have the perspective to see more? at morgan stanley, a global collective of thought leaders offers investors a broader view. ♪♪ we see companies protecting the bottom line by putting people first. we see a bright future, still hungry for the ingenuity of those ready for the next challenge. today, we are translating decades of experience into strategies for the road ahead. we are morgan stanley. esg is responsible investing. who's responsible for building esg into your investments? at pgim, the pursuit is on for outperformance. as active investors, to outdeliver with customized strategies, integrating esg best practices into our investment decisions. as asset managers and fiduciaries, to outserve, with our commitment to better esg outcomes. join the pursuit of outperformance at pgim.

the investment management business of prudential. at this time of the week, we like to go over the landscape

for spacs. which of course we've spent so much time talking about this year, given their importance in the capital markets, and the importance they've had to any number of investment banking firm, and morgan stanley and goldman sachs and goldman says 15%, as i recall, but they have been an important component but slowing down dramatically in terms of issuance and this week is less than last week, and last week less than the week prior to that you can take a look. still looking for deals, 431, filed not yet public, 245. and there's the proceeds raised. but what about this week well, there are only two only two spac ipos and three companies that filed, jim. so it really is slowing down dramatically and i want to talk about the ipo market itself, because it's been an interesting week on that, but i will say one thing, jim, we talk so often about the s.e.c. and i would point out that today, two spacs that filed that are going public, both don't

have warrants. warrants of course have been the key component of all of these deals, particularly at 11.50, remember the shares sold usually at 10, but the s.e.c., you know, created some uncertainty, in terms of accounting for those, and the treatment of spac warrants, so you've got a halt on a a lot of new registrations and you see a few of these without warrants jim, not just spacs but a weird week for ipos. we focused yet on coinbase yesterday, not good performance from the other companies that came public and we see this sometimes, and we don't know if this augers for difficulty in the future, more broadly speaking, for actual ipos as opposed to spac ipos, but we're pointing it out as well. >> look, the market's exhausted, some breaking down, typically anything that is e.v., and i think gensler is someone who is very sophisticated regulator, who will say, i don't understand

how you can make these projections from romeo power and be wrong six months later. we're going to eliminate projections. or he may just say, let's put a pause on this thing, i want to study it the previous administration was kind of a, i that's over by the way, clayton, just a terrific guy i mean, really a nice guy, but you know what? that historically has not been criteria for tough sec commissioner >> no. nice guy is not necessarily in the job description. that's right and to your point, it's not just sort of some unusual structures or warrants but it is also -- we've talked about it a lot, the projections made because they can be, they aren't beholden to the same things as an s-1. that said, yesterday we saw another company come public that autonomous trucks with a subscription service that also had paltry revenues and is all on the come, basically, jim.

>> you know, kathy wood loves these. >> yes she bought a lot of that stock yeah >> yes, she did. if an ev leaf blows into her desk, she'll buy it. that's -- i don't mean that as being any slight at all. that's something larry cud low used to say. like that person really doesn't know anything. with all due respect, that person is really terrible, but with respect, but yeah, she brought a lot of that. >> are we talking about too simple i want to make it clear. we talked to the ceo yesterday >> it was too simple the whole thing was too simple i wonder where she is with jag deep sing. i'm not kidding. there is not a lot of due diligence. no one ever claimed they didn't do a lot of due diligence. when i was selling soda at veteran's stadium in the 70s, i did a great deal of due diligence in coca-cola before i sold it. >> i'm sure you did. >> i checked the label yeah hey, i got -- when i did ice

cream, i didn't do enough. vanilla and chocolate. i had not studied it enough. >> carl, i'm all about -- >> i love hearing about all your old jobs, jim. let's take a break here. market obviously having incremental gain over yesterday. about 25 points away now from 4200 go aflac!!! what the heck, troy - that's not your kid! the aflac duck is just covering for sophie. same way he got me money to help cover her hospital bill when my health insurance didn't pay for all of it. but this isn't fair! that's exactly what i said! but then i learned health insurance isn't even supposed to cover everything. wait...for real? for real real. luckily i had aflac. aflac!!! get help with expenses health insurance doesn't cover. go aflac! !mm-hm! get to know us at aflac.com. wealth is your first big investment. worth is a partner to help share the load. wealth is saving a little extra. worth is knowing it's never too late to start - or too early.

♪ ♪ wealth helps you retire. worth is knowing why. ♪ ♪ principal. for all it's worth.

want to save hundreds on your wireless bill? with xfinity mobile, you can. how about saving hundreds on the new samsung galaxy s21 ultra 5g? you can do that too. all on the most reliable network? sure thing! and with fast, nationwide 5g included - at no extra cost? we've got you covered. so join the carrier rated #1 in customer satisfaction... ...and learn how much you can save at xfinitymobile.com/mysavings.

what's coming up tonight, jim? >> well, look, one of the things that happened is the attacks i have scorpion that is just putting really wood to the executive who runs ponzi scheme. you know what? jag keeps firing back. he's coming on mad money is going to make his statement and say why skorpcorpion is not rigt but you really don't just in terms of the scheme of things, you don't want to be pauled the next theranos. i think jag deserves his day in court and he's going to get it tonight on "mad money" >> we look forward to that we got a few seconds left. i'll ask you about next week and

the next couple weeks as earnings continue to pour in one thing that's been said is it's not like a few quarters ago where the analysts had no clue what the numbers were going to be the fact that they're beating on pretty decent intention says something. >> yes, they were way too conservative people are starting to realize things are much better than expected i think it's going to matter i think we can go even higher than we are. wow. >> jim -- >> big >> look forward to seeing you tonight and back onset next week

all the things, all around you where you learn, work, and fly we help make them healthier. we are the people of abm. for more than 100 years, we've been a leader in making spaces cleaner, from the things you touch to the air you breathe. today, more than 100,000 of us are innovating to ensure spaces are more efficient, healthier and safer. abm. making spaces healthier for you. it used to be that brainstorming required a whiteboard and squeaky markers, but when you have devices that let you collaborate in real time from anywhere, the future works better. microsoft surface devices with teams, orchestrated by cdw enable employees to stay productive when working together,

with high-quality audio-visual features designed for natural collaboration. so your team always captures every detail. microsoft and it orchestration by cdw. people who get it.

good friday morning. welcome to another hour of "squawk on the street. i'm carl quintanilla with morgan brennan and david faber. opening brings us new highs once again on the dow and s&p although we've setted back a touch as morgan stanley puts the closure to this first big week of earnings. >> we're going to talk about

that more as i introduce you to our wall of fortune. we're 30 minutes into the trading session. here are the three big movers we are watching starting with morgan stanley posting below results in what has been a blowout week for the banks. morgan stanley had $911 million in losses tied to the acay gose fund meltdown. we're watching comcast raymond james upgrading the stock telling clients to expect strong results when comcast reports on the 29th of april and we continue to track coinbase purchasing 110 million of that stock, you can see right now shares are up about 1.5% trading around 327, 328 a share. consumer sentiment is out. rick santelli has that for us. >> these are april preliminaries. in a couple weeks we'll get the final turns and toss these

they're strong if we look at headline number, we're expecting 89 the whisper number was larger than the 86 .5 that just popped on the screen. the interesting thing is in order to find a higher number than 86 .5, should that be the final, you have to go precovid it was march of '20 when it was 89.1 that is a good number even though it's less than expected current conditions, 97.2 very powerful number versus 93, our final read last month. if we look at expectations, 79.7 this is a big miss based on expecting a number more in the mid 80s. it's exactly the same as the final look for last month, 79.7. here's where it gets interesting. the one-year inflation jumped to 3.7. 3.7. well, 3.6 last time we had that was 2012 that number goes way back. and 2.7 on five to ten-year. we've already hit 2 .8 the highest since 2014

that moderated 2014 a while ago we want to pay close attention to the inflation dabts, especially when we get the final read in a couple weeks back to you, carl. all right. rick, thank you. that's interesting stuff rick santelli, goldman sachs, jpmorganchase, wells fargo with a bullish economic guide with more reaction let's bring in jim stewart normally joining us on fridays jim, great to see you again. good morning >> good to see you, carl >> i wonder -- >> it's been quite a week. >> yes and i was going to ask you what part you found most interesting. i thought about loan growth. archegos on come the capital markets and some of the reserve releases what do you think deserves to be the headline after this week >> there's a lot going on, but i guess what i was most impressed by and looking forward, i think, make these banks very attractive to investors

one of the most fundamental things which is the yield curve. and that didn't seem to get as much attention i mean, it's impressive that they've been able to release all the reserves and that's given the earnings a big boost this week, but that's going to be kind of a one-time thing the yield curve may be around for a long time, and i was kind of startled when i looked to see how steep it has become. i mean, you know, the fed has said that it's going to keep short-term rates near zero and they are near zero meanwhile, the ten-year is moving up. the 30-year is moving up we're hearing the recent inflation numbers, the economy is booming the lock-term rates have gone up the ten is close to 1.7. so that spread between almost zero and the ten-year at 1.7 is quite high i look at the historical data. it has been higher but it's getting up there, you know, close to maybe three quarters of the sort of peak spread. that's very good for the banks

because they pay deposits. a low rate and they lend longer term at a high rate. and that differential is where they make the most of their bread and butter money this could be more like the classic banks like jpmorgan and wells fargo. less than investment banks but it's bullish both for the economy and bank earnings. >> right and i assume you think that investors are going to give them more credit for that kind of growth rather than the trading activity which historically investors have said that's great, but what are you going to do for me next quarter >> exactly although, i don't see a lot of focus on this yet. i mean, again, i was looking at some of the multiples where these banks are trading. and you know, most of them are in what i would call the value category they are trading at a below normal price earnings ratio even with these new big earnings puffed up by the reserve releases so you know, i personally think that the banks look like very

good values here >> i want to get yur -- your thoughts on the coinbase debut largest direct listing to date and being heralded by i think the crypto currency bulls as a real success and coming of age for crypto currency more broadly. retail investors are able to jump in with the listing this week and we're still well off the highs from where we saw this new stock begin trading. >> well, i think it's important to kind of separate some of this generational enthusiasm for crypto for sound investment analysis but that said, and so i'm not surprised it's come off a little bit of those euphoric highs. there's been a lot of static out there that oh, this is the coming age of crypto and this is the way to play crypto, and jump on the band wagon.

it's really -- it's kind of passing enthusiasm in my view, but i do feel that coinbase has a pretty impressive structural advantage here in the market which is the classic network effect and tech investors love a network. i mean, facebook is a great example of that. and you get a platform like this where it has the most users, so sellers want to be there and buyers want to be there. it's kind of like e-bay in the early days and they're charging quite a healthy transaction fee to trade to take advantage of that. so i think the big question is they unquestionably have a network effect which could translate to very impressive profits in coming years. it's going to be hard for others to overcome that the question is how much competition will spring up

in my own mind, i'm grappling with longer term, is it more like the credit card companies classic network effects. the nobody has penetrated the dominance of really the big two or even you can add the american express and discover there are only four credit card companies. is that going to be the situation with traders of the crypto currencies? or is it going to become like stock trading where the commissions are like down to nothing? everybody can do that. so i think the key going forward is they're going to have to model themselves on the credit card companies i think they could do it >> that's interesting. jim, have you owned bitcoin along the way here do you own it now? >> no. >> have you been among those who kind of shake their heads. >> i have not owned bitcoin. i have friends who bought in pretty early thought it would be a fun experiment but no, i'm -- you know, i'm just an observer of this i guess it's -- but i get it

you know, typically when you've got a super low interest rate environment like this, why not have a storehouse of liquid capital that could actually gain in value it's a little bit like gold i think. it's historically served that function and i think -- i get it why a lot of people are looking at it as a legitimate asset class. >> i'm curious what you think about the sec that's taking shape. we have ginzler taking the helm. a lot of focus on what it means for crypto currencies. there's a lot of stuff on the sec's plate in general right now as this new team basically now materializes, and as i said, takes shape. also spacs >> well, there's a lot for them to look at ginzler, i think is an impressive choice. he's got great credentials and they are going to have their plates full. their flats full

on the other hand, this isn't really any different, the markets than many others that have sprung up and the question i think is simply going to be how much regulation and how much disclosure i mean, we've seen already some pretty big scandals and frauds in the crypto currency area. the sec has the tools and the laws one of the things i've thought is great about securities laws in the united states, although they're sometimes criticized for this is how vague they are and that enables them to be very flexible to cope with new trading patterns and new asset classes, and so i don't think there's anything to stop them. and i hope they will, in fact, focus on some of the areas as we know, with everything happening in spacs, something is going to happen one of these days >> yes that's generally the view. the question is when and what? jim, i guess we'll have to wait and see.

great seeing you thank you for the help on the financials today talk soon. >> have a good weekend >> you too we have retail names on the move courtney reagan has that for us. >> hi there. as the economy rebounds, retailers are poised to catch onto consumer spending they want those dollars and over the last year, the s&p retail etf is up 180% hitting a new high again here today. remember, yesterday jpmorganchase ceo jamie dimon said on a call that consumers are coiled, ready to go. they're starting to spend money. even when you look at the laggards, they're still up between 16% and 20 % over the last year. names like dollar general, kroger, cvs, wall greens those are staples names but names that were played early on in the pandemic trade as beneficiaries of the pandemic, essential retailers allowed to keep their doors open during the early pretty scary days.

and amazon, we talk about it all the time it's the company that changed retail and other industries forever it's actually within the top 15 laggards for retailers over the last 12 months it's still up 40% in a year. and take a look at some of these p/e rations. kroger's forward 12-month pe about 13 times looking relatively cheap when you look at the overall market maybe it's time to revisit some of these early pandemic plays as time to go in. again as opposed to some of the other names that seem more obvious when we're talking about the denim trade so much with a levi or an american eagle, for example. >> mom jeans i'm not for it i realize that's the fashion now, but i'm just -- i'm just holding off on it. i'm already a suburban soccer mom. i don't like the mom jeans >> i am too. >> i don't think those are flattering >> as we head to a quick break, a look at the road map for the

rest of the hour including an exclusive with christopher waller and his first televised interview. plus >> yes, plus, investor david einhorn is blaming elon musk and another for throw, quote, jet fuel on the -- >> we'll discuss with the ceo of red lobster on a hiring spree rks.having trouble finding woer all that ahead on "squawk on the street." llness company? their groomers work wonders for my confidence. i trust their vets, and i'm known to have trust issues. they deliver high quality food the same day. i was outside digging, what'd i miss? just everything regarding our physical, social, and mental health. exciting. i'm gonna take a spin around the room. great idea. ♪ ♪ petco. the health and wellness company.

obsession has many names. this is ours. the lexus is. all in on the sports sedan. lease the 2021 is 300 for $369 a month for 36 months. experience amazing at your lexus dealer.

. adding if regulators wanted elon musk to stop manipulating stocks, they should have done so with more than a light slap on the risk when they accused him of manipulating tesla shares in 2018 interesting. i would point out when it comes to tesla and mr. musk, he would short the stock for some period of time and if he'd been shorted for some period of time, chances are you did not do particularly well >> yeah. i was also looking back to his q3 letter last halloween where he said we're in a tech bubble question the market's sanity said all the signs of a bubble are there including ipo mania which has not at least in his view i'm sure is not coming back in any way

>> no. not at all and we won't go into his long-term track record, but he is a thoughtful fellow but yeah i mean, your point is a good one when it comes to that, and a lot of other things as well, morgan, in terms of -- you know, i guess what i would say is we all wondered about the behavior of elon and fueling the flames in terms of the cohort that decided that gamestop was a company worth $20 billion. >> yeah, and whether right or wrong, i would say you know, this -- again, elicits the debate around that, and sort of i think also again whether right or wrong, kind of what's the word i'm looking for it kind of -- this idea of a tiered system. and a nondemocratizing of the markets that fuelled the populist sentiment behind

everything we've seen over the last couple months in some ways the comments reinforce that reality the irony is that whether you are any of them, you're saying don't focus on the day traders focus on a system that's broken and how it's going to be regular you laylated that's the debate. especially given there's a new sec in place let's get over to steve liesman and christopher waller steve? >> yes morgan, thanks we have chris waller, the new fed governor joining us for his first television interview thank you for joining us >> hey, steve. thanks for having me on. >> yeah. and maybe if people hear the familiarity of your voice, people should know i've known you as the research director of the st. louis fed before you a big deal at the fed for a number of years governor waller, let's start i

think having this opportunity to hear you views for the first time, let's start at the beginning. what's your view of where we are in this recovery from the pandemic and where the u.s. economy is going >> well, sti -- steve, i think e economy is ready to rip. we're looking at dwroet forecast for nearly 8% for 2-2. my forecast is about 6.5% for the year i see unemployment falling to the low fives by the end of the year and inflation running about 2.5% for the year so i think the economy is really ready to go. the vaccine program has done amazingly well there's still more to do on that but i think everybody is getting a lot more confidentable with -- comfortedable with having the virus under control and we're seeing in the form of economic activity >> when you look at the -- i guess the character of the economic activity right now, do you see us going through a sugar high right now that is

essentially based upon the huge amount of fiscal stimulus coming through, or are we on the verge of what you would call sustained growth >> yeah. no, i think it's more on the sustained growth you're going to see some surge in demand from the stimulus. you're going to see it from the pent up savings. just the desire to get out of your house and go do things you haven't been able to do for a year so you're going to see that, a bigger surge, but i think the fund fundamentals of the economy are if we can get the virus pretty much under control we get 70% of the population vaccinated, then all the fundamentals are there for good, strong growth that we left back in january and february of 2020 last year. >> so getting back to the familiarity here, chris, you and i have both been following fed policy for a long time and you have to admit, given the outlook you just gave, it would be normal for a federal reserve

official such as yourself to be talking about constraining what is easily the most wide open policy that you and i can ever remember is that what you're thinking is it time to put the brakes on here given that you just said i think we have up there on the screen, the economy is about to rip. >> yeah. i mean, the thing is we have to keep in mind that from the level of where we were, we're not there yet. so we still have room to catch up where we were we're making up for lost ground. so just because the growth rates are really good and everything is looking like we're heading off in the right direction, we're trying to make up a lot of ground as the chair said, we're in the neighborhood of 7 million, 8 million jobs from where we were a little over a year ago so we've got to make that up first. other parts of the economy seem to have already come back. but we still have relatively high unemployment rates. particularly for minorities. so we still have a long way to go there's no reason to be pulling

the plug on our support until we're through this >> one of the potential down sides here that we hear has a lot of -- getting a lot of concern out there is the issue of inflation and let me give you some of the data from this morning, governor waller, that i bet you've seen university of michigan one-year inflation expectation the highest since 2015 the five-year at 2.7 one tick off the high since 2015 are you a subscriber that inflation that will be coming will be temporary, and how can you be sure? >> yeah, i am. i do buy into the idea that this is going to be temporary we know there's a bunch of reasons for this one is just the base offense we're coming off low ratings everybody forgets service prices drop something like 6% so they can come up 6% and you're just back to where you were last march. so you can't -- again, you can't look at the growth rate. you have to look at the levels where you're at. we know this stimulus is going

to have some impact. once the stimulus checks are spent, they're gone. once the pent up savings is spent, it's gone there's no further demand excess demand coming out of the things. we also know the bottle necks that are currently there are going to go away firms will get capacity up and running again. whatever temporary surge in inflation we see right now is not going to last. i think if you look at the -- as you said, five years, there's still around the 2 .5% they haven't really taken off. they're about where we would think is reasonable. and these are people that have money on the line. so they're not betting on outrageous run away inflation or we'd see it in their pricing of tips >> if fed policy right now is to let inflation run above it's 2% target, how comfortable will you be with inflation running for how long and at what level above target before you begin to have concern? >> yeah. i mean, the committee's been clear. we're happy to let it rise above

2% we were below 2 % for seven years. we kind of let that go but just temporaries bumps up to two. that's kind of the idea. we wanted to be on average around 2%. i don't think anybody would be more comfortable if it got to 3 or 3 plus and stayed there for a while. the bigger concern is if it did, and we saw inflation expectations drifting up to those levels, then we've got a problem we have to worry about as long as inflation expectations are anchored near 2% targets for pc, a lot of things are in cpi numbers, i think we're okay we're not going to be worried about inflation. again, we're not going to let it rip either inflation is not going to take off. we're going to say that's fine >> governor waller, right now when i look at the fed futures, obviously there's a lot of noise in all that outlook there, but they're pricing in a rate hike at the end of 2022

is that appropriately priced in your mind? and what role do the fed dot plots or the forecast for the inflation -- for the funds rate, what role does that play in market expectations? is it helping or hurting >> yeah. i think the dot plot is kind of a problem right now. as you know, we adopted a new framework last year. it was just an outcome-based framework. and the sep was designed for our old framework. so we're still giving projections of policy instead of saying this is all about outcomes now we shouldn't be doing calendar-based plots of interest rate hikes based on perceived or projected movements in inflation in output. we want to see it. i'm from missouri. we take the view, you know, we're the show-me state. show me the outcomes and we'll talk about doing this. i think the markets are getting ahead of themselves in terms of really understanding what our new framework is i don't think the dot plot is

helping us >> governor waller, they're going to kick me from the control, but we had a debate this morning about the recession. is it over and does it matter if it's declared over or not? >> yeah. i think this is something i used to be a college professor. i used to teach this to my students it depends on whether you measure things on levels or growth rates if you're measuring the recession, are you back to where you were, we're not there. so in that sense, by levels, we're still in a recession employment is not back gdp is not back to trend if you were looking at growth rates, then growth rates weren't positive back in the third quarter of 2020. so it's really a question of what you want to think of when you think about a recession recovery for it. so it's really important when you want to think about it in levels or think about it in growth rates and i am thinking about it right now in levels. >> governor waller, thank you for joining us

it's been a real pleasure to have you for this initial interview. i hope it's not the last time we see you again. >> thank you steve thanks for having me on. >> all right carl, back to you. and i guess if you lose your video, you can put up a nice picture of yourself. that's a better way to do it >> that was a great interview, steve. and an important one thanks, steve with governor waller as we go to break, watching pinterest. fell as much as 10%. already surpassing the 30 -day average on volume. getting back to the earlier part of the month wee ckn mont'rba ia me

did you know that petco, is now a health and wellness company? their groomers work wonders for my confidence. i trust their vets, and i'm known to have trust issues. they deliver high quality food the same day. i was outside digging, what'd i miss? just everything regarding our physical, social, and mental health. exciting. i'm gonna take a spin around the room. great idea. ♪ ♪ petco. the health and wellness company.

let's look atticer iyt rising almost 20% this morning so far this year we're starting to get earnings j.b. hunt was on top after the bell last night. that stock is up 3%. kansas city southern in particular is in focus this morning. it's off the lows of the session after missings quarterly results. the railroad citinging several unique and challenging events. the ceo adding he can confirm

full-year guidance that stock is turning positive kansas city southern is being acquired by canadian pacific we keep our eye on that one. >> yes although, it's going to be a long time until they get that closed as we know. after the break, people are returning to the restaurants are there enough workers to meet the demand we'll discuss the challenges of reopening with the ceo of red lobster. folks the world's first fully autonomous vehicle is almost at the finish line today we're going to fine tune the dynamic braking system whoo, what a ride! i invested in invesco qqq a fund that invests in the innovators of the nasdaq 100 like you you don't have to be a deep learning engineer to help make the world a smarter place does this come in blue? become an agent of innovation with invesco qqq

did you know that petco, does this come in blue? is now a health and wellness company? their groomers work wonders for my confidence. i trust their vets, and i'm known to have trust issues. they deliver high quality food the same day. i was outside digging, what'd i miss? just everything regarding our physical, social, and mental health. exciting. i'm gonna take a spin around the room. great idea. ♪ ♪ petco. the health and wellness company.

welcome back here is your cnbc covid update at this hour india's covid surge is accelerating new records and more than 1,000 people are dying each day. doctors without borders is blaming the government in brazil for what the aid group calls a failed response to the pandemic.

the daily death count in brazil is between 3,000 and 4,000 accounting for a quarter of all global deaths. while not as bad as brazil, japan is trying to control a covid rebound. the head of the world health organization doesn't like what he's seeing. take a listen. >> around the world, cases and deaths are continuing to increase at worrying rates globally the number of new cases per week has nearly doubled over the past two months. this is approaching the highest rate of infection that we have seen so far during the pandemic. >> that was your news update for this hour. back to you. universal hollywood cnbc's corporate cousin is reopening the doors today. julia is live from the theme park and has that for us >> reporter: hi, david i'm happy to be back in the

field after 13 months. and this park's reopening after more than 13 months is a sign that southern california which has been hit so hard by the pandemic is a starting to come back online. tickets for the park are sold out from yesterday when they did a preview for season pass owners through today when they opened up to the public they're sold out through sunday and the company tells us the demand is strong and enthusiasm is strong. universal along with all the other parks in california are allowed to operate for now at 25% capacity and only for residents of the state. of course, they are operating with temperature checks at the entrance mobile payments for food to try to make the experience as touchless as possible. and in addition to building a new measures for social distancing in the year that this park was closed, the company was investing in the attractions finished a new ride based on the secret life of pets. it just revamped the jurassic world the ride and getting people back to the parks is important to keep the

brands top of mind for the media giant between those films. in addition to that ticket revenue, of course, universal and all the parks from the revenue from all the parks is, of course, valuable for the virginia economy there are 49 amusement and water parks in the state employing 135,000 employees. it generates about $1.5 billion in annual tax revenue and $14 billion in state commerce. now, the biggest of all the parks is disneyland and california adventure down in anaheim. that is set to open on april 30th there's no official report on early bookings for disneyland just yet, but there was more than an hour long wait online yesterday before i could even look at booking those tickets. morgan, over to you. >> yeah. i'll tell you i was at disney world in orlando it was a similar situation julia, if you get the chance, ride a roller coaster for me >> good to see you

restaurants are seeing diners return as vaccinations ramp up. businesses are feeling labor crunch the nfib reporting 42% of owners can't fill job openings. that's a record high joining us now, ceo of red lobster. thank you for being with us today. >> my pleasure >> before i get to the labor dynamics here. first, just i guess take us through what the reopening efforts have looked like what from a state to state and city to city basis what that means in terms of capacity and whether perhaps most importantly customers and patrons are coming back >> they are coming back. you know, recent sales are actually more than triple what they were at this time a year ago when we were experiencing the initial covid impacts and had 100% of our dining rooms closed across the country. but remarkably, they're almost back to two years ago which is

surprising give than we're still using only half the tables in most of our restaurants and that we're still spending less than half as much on marketing and yet, we're within 5 % of sales we had two years ago >> so you are hiring we had the ceo of dominos on cnbc earlier this week, and he characterized this labor market as tight how do you see it? >> i would certainly agree it's a tight market but we actually have added 10,000 employees in the last 15 weeks. and plan to continue adding about 3,000 a month more going forward as we are allowed to eventually use all of our dining rooms again. but certainly it is a tight hiring market. it varies tremendously but we are having success attracting new employees >> you know, kim, those who are watching wage growth and are worried that it's going to

spiral out of control seem to be -- seem to believe that it's going to remain in check because small businesses especially don't believe they can pass forward the additional costs to the consumer and they'll turn to things like technology do you think that narrative is essentially right? >> you know, first of all, we think it's important that we treat our employees well a typical red lobster server is already making over $20 an hour including tips but it is true that consumers are very value sensitive right now, and it is very difficult to pass through cost increases. you know, we actually think consumers are coming out of this caring a lot more about value and convenience than they were before the pandemic, and i think every business isgoing to have to do a really excellent job on both of those things

in our case, for example, we introduced a number of new menu items recently that are affordable but terrific like our bacon burger, our new crispy cod sandwich which is enormous we're nicknaming it codzilla a number of new bowls and things like that that are a sesame soy salmon bowl. >> and chicken too right? >> they're delicious and we think convenience is becoming super important we've invested in rapid red curb side pickup where you can order and pay before you get to the restaurant respond with a text with the word here, and you can be in and out of the restaurant in less time than it takes to go through a mcdonald's drive through >> i want to followup on the initial comment. even with the capacity constraints you said you're seeing numbers similar to two

years ago. is this year potentially when everybody is ready and all the constraints are off, is it possible you'll see a record year for your company? >> you know, there's a lot of -- certainly there's risks of further flairups of covid, things like that but we actually think it could be a really great year ahead our new fiscal year starts in june, and we're thinking it can be a really great year >> all right kinl, we appreciate you joining us you're laying out the new menu items. i'm still a purist i go for the cheddar biscuits. keep those, please >> well, thank you i want to say thank you to our employees. last year was a really tough one, and i think our employees acted heroically we're grateful to them for sticking with us our turnover has been low, and we were quite surprised to see forbes named us to the list of

america's best large employers for 2021 despite the fact that it's been tough on our employees and we're grateful to them >> thank you for joining us today. >> thank you my pleasure. take care. we'll take a break look at the s&p gainers for the week got some materials in there. freeport, invid in a and tesla and the banks have been a standout wells on number five on the list we're back in a minute nvidia

are traders ready for under the radar ways to play the surge. find out more on trading nation. more squawk on the street straight ahead

did you know that petco, is now a health and wellness company? their groomers work wonders for my confidence. i trust their vets, and i'm known to have trust issues. they deliver high quality food the same day. i was outside digging, what'd i miss? just everything regarding our physical, social, and mental health. exciting. i'm gonna take a spin around the room. great idea. ♪ ♪ petco. the health and wellness company. morgan, look at shares of hilton hitting a 52-week high. they price in the travel recovery while marriott and

hyatt hit highs in february. cruiselines are ending the week lower. i learned from multiple sources the ceos of carnal and royal had a meeting with the cdc urging health officials to update the current guidelines in place. one former cruise executive said this decision has turned political pointing out the two states that rely most on the cruise industry, alaska and florida are republican and yesterday senator richard blumenthal said the cdc should not prematurely lift restrictions on cruising as the days pass, a growing number of politicians from the left and right continue to weigh in on when the let the cruiselines sale b -- sail. >> a great piece about that meeting and worth reading. coming up this morning on tech check, you don't want to miss talk act the future of travel and the company's comeback >> well, i think it's safe to say that winter is now over.

it's pretty crazy to think one year ago we had seen a drop in our business about 80% in about eight weeks. now we're starting to see a big rebound. full interview coming up on tech check at the top of the hour don't go away.

want to save hundreds on your wireless bill? with xfinity mobile, you can. how about saving hundreds on the new samsung galaxy s21 ultra 5g? you can do that too. all on the most reliable network? sure thing! and with fast, nationwide 5g included - at no extra cost? we've got you covered. so join the carrier rated #1 in customer satisfaction... ...and learn how much you can save at xfinitymobile.com/mysavings.

cme and rick santelli for the san tell ri exchange >> good morning. thank, david whether it was coinbase, the ipo spac that was so successful, or all the various crypto currencies out there, virtual success takes a bite out of traditional markets. they say there's over 4,000 crypto currencies in existence many of them you never heard of, but many of them you had the total market cap exceeds 2 trillion now, there's issues. whether it's the irs, the treasury, you know, we know that janet yellen brought this up they're inefficient, although you can have bitcoin cash versus bitcoin transactions but there's more to it on the regulatory side. we don't know what's down the road janet yellen hasn't made up her mind and many of the things worried about were pushed in the future if you build a new asset class,

they're trade. it's a new asset class and it's getting fuel. this money is coming from somewhere which means there's donors in other parts of the capital structure whose capital is coming in to this and how big will that be well, i know this. that low interest rates, inflation rates, inflation fears, debt fears will be a ver tile environment for the cryptos to take hold and potentially siphon business interest other areas. yesterday we had larry fink on from blackrock listen to something he said. >> if you're asking me specifically about long-term investing from sovereign wealth funds, pension funds, from retirement services, from big family offices, the conversation about crypto is a very minor conversation compared to so many other conversations. >> so that basically is our benchmark. on one hand we have a fertile environment where maybe even the volume of capital coming into

treasuries to support our debt, maybe some of that gets siphoned off in other areas as mr. fink said, maybe the real story here is, even though there's all this potential ultimately the big boys might not play in that sandbox no matter how it turns out, we need to be cognizant this is out there, and only going to grow from here. morgan back to you. >> rick santelli, thank you. after the break, what would you do if you got a notice to pay back a loan you never took out. it's a very real problem and part of a scheme to steal taxpayer money don't go anywhere.

do you struggle with occasional nerve aches, weakness or discomfort in your hands or feet? introducing nervive nerve relief from the world's number 1 selling nerve care company. as we age, natural changes to our nerves occur which can lead to occasional discomfort. nervive contains b complex vitamins that nourish nerves, build nerve insulation and enhance nerve communication. and, alpha-lipoic acid, which relieves occasional nerve aches, weakness and discomfort. live your life with less nerve discomfort with nervive nerve relief.

the world's first fully autonomous vehicle is almost at the finish line what a ride! i invested in invesco qqq a fund that invests in the innovators of the nasdaq-100 like you become an agent of innovation with invesco qqq

welcome back to "squawk on the street." small businesses around the country got a needed boost from the government's ppp and economic disaster loan programs that were rolled out last year notices are making their way to businesses and individuals to pay back those loans the notices are very real but the loans in numerous cases were not. this is all part of a staggering nationwide scheme to rip off taxpayers and steal money meant for mainstreet cate rogers takes a look in a cnbc investigation "stealing from main street". >> reporter: with guns drawn police in florida order the

driver out of his car. >> step out of the vehicle hands in the air. >> reporter: responding to an unrelated complaint, officers discover the suspect has an outstanding warrant for defrauding the small business administration it's one example of a potential overall $84 billion fraud to steal money meant to help small businesses richard clark is a detective with the lauder hill, florida, police department. >> based on my experience, i mean a lot of people have taken advantage of lapses in the system to benefit personally from applying for loans either deceptively or using other person's information. >> reporter: clarke says 32-year-old xavier taylor was able to obtain $81,100 from the sba's paycheck protection program by stealing information from a business owner facing multiple fraud charges taylor has pled not guilty. so far, $626 million has been

seized or forfeited as a result of civil and criminal investigations of the paycheck protection program and economic injury disaster loan program according to a recent report by the house select subcommittee on covid. victims around the country tell us they're astounded at how easy it was for criminals to exploit the system max hebert lives in wisconsin and fulfilled grocery orders for wall street. after being deployed in ukraine last year with the national guard the sba sent hebert this notice to pay back a $45,000 loan with his name misspelled. he said the sba told him there was a disaster loan taken out in his name. >> they recommended i go to identity theft.org >> reporter: the economic injury disaster program allowed small businesses to borrow based on temporary losses of revenue due to the pandemic. hebert doesn't even over a business >> so you're not planning to repay it, i assume >> i don't really have a good way to repay that.

$45,000 is more than i make in a year. >> reporter: the agency says the loan is on hold pending further review. >> by next tax season are they going to try to seize my tax return or try to garnish my paycheck if i don't resolve the situation in time. there's a lot of things to be worried about. >> reporter: he's not alone. korena keys owns a digital firm in south dakota who received a loan under ppp she didn't need another one from the sba. then this payment notice came in the mail for a $150,000 loan taken out under the eidl. >> the shock turned to really a lot of frustration and anger >> reporter: even though the application listed inaccurate details for the company like the phone number the loan got approved the sba notice says she has to start paying back the loan in november >> do you think it will get resolved >> i am a very, very trusting person and so i want to believe that it will get resolved and

that we will not be responsible to repay that loan >> reporter: in response to our investigation, the sba says that the biden/harris administration takes seriously the responsibility to safeguard taxpayer dollars and prevent fraud, waste and abuse in federal programs, adding, quote, in recent months new enhanced checks have been put in place to intensify system validations used to mitigate the occurrence of fraud in the economic injury disaster loan and paycheck protection programs. the sba went on to say that it is working with various federal law enforcement agencies to combat the fraud it would not discuss individual borrowers. >> great reporting and such an important issue that's affecting so many people right now i'm curious if the sba says it has put new enhanced checks in place, what are some of those changes meant to ensure that this type of fraudulent activity doesn't happen anymore >> yeah. morgan, the c.a.r.e.s. act removed some of the guardrails as the oversight board looking

into the sba and potential fraud there. said one of the most important things they took away the ability to get tax information directly from the irs. now information from the sba says that about a dozen itten new checks, including identity validation, bank account validation, ipo address screening have been put in place and there's money allocated from the american rescue plan to considering and continuing oversight to ensure that this doesn't happen those new checks are in place. remember this was kind of a struggle with getting money out the door versus ensuring it doesn't get into the wrong hands. a challenge there but new checks in place and hopefully this won't continue to happen >> you got to wonder, if this is going to make it harder for lawmakers to pass which is covid relief, which i realize might be in some ways a moot point or disaster relief in the future. >> yeah. the disaster loan program is an ongoing program that's been a part of the fda for years.

paycheck protection program a new program rolled out as covid hit so those programs are important, main street will continue to need aid many say that the ppp money that's there may run out it is important and i think oversight is important as well we'll see what happens back over to you. >> kate rogers, great work thank you. that will do it for us on "squawk on the street. "techcheck" starts right now ♪ good friday morning and welcome to "techcheck. i'm deirdre bosa with carl quintanilla and jon fortt. a big show to close out our very first week trouble in the listing market. coinbase, the largest spac ever and a few under water ipos signs of euphoria or the air c