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tv   Squawk Box  CNBC  April 26, 2022 6:00am-9:00am EDT

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general electric and u.p.s. and more all before the opening bell china stocks sinking again overnight as beijing begins mass covid testing to try to avon vod lockdowns like the ones in shanghai. and elon musk taking twitter private? the reaction from different sides of the aisle comments from mark cuban and jeff bezos and even donald t trump. it's tuesday, april 26th and "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.
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i'm rebecca quick along with joe kernen and andrew ross sorkin. if you want to check out the u.s. equity futures at this hour, this is interesting after the last couple sessions right now, we're looking at the dow futures down by 85 points. this is happening after yesterday's huge reversal. you saw the reversal where the markets actually ended up. dow up by 500 points from off the lows closed up by 238 points. this morning, dow futures down by 78. not down by too much nasdaq indicated down by 23. it was up by 1.3% yesterday. the s&p is down by over 7 points after closing up .50%. if you want to see what is happening with the treasury yields right now, the ten-year yielding 2.791% people are buying in as a safe
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haven after being back up on friday let's talk about elon musk's deal it is official it is done he is taking it private. twitter accepting the $44 billion offer yesterday. the ceo said that there were no layoff plans and the company's priorities are not changing before the deal closes after musk takes over, they don't know what direction the company may go musk tweeted for twitter to be an open platform for free speech he said i hope my worst critics remain on twitter because that is what free speech means. that raises all sorts of other questions, joe >> yeah. what everyone wanted to talk about what it meant for the former president
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i talked about it before it closed he said he will not return to twitter even if elon musk reverses his ban he says he will be on his own platform, truth social, within the week he praised musk. trump was permanently banned from twitter following the attack of the capitol by his supporters on my birthday. january 6th. god works in strange ways. i don't think he makes mistakes. i don't know about for maria born on september 11th shares of trump's media and technology group, as you see are up $1.79 >> you didn't tell me you talked to him >> it was brief i talked to him. i didn't know if he would
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answer he answered. i talked at the end about his hole in one. he said it was nmagnificent. stiff wind in his face slight wind. i have known him a long time i expected this is what he would say. i don't know whether he will have the reach on truth social that he has on twitter of i think he has to say what he had to say for competitive reasons. the minute if this were to not work out, truth social, i can't imagine he would not be back on twitter. >> reports yesterday that he still watches twitter. he still looks at it and is interested in it >> i say never say never he said no say never. i figure he would say that i don't know if i believe.
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>> i agree with you. >> it was a match -- twitter and trump -- match made in heaven and hell, depending where you sit. nfs >> in the meantime, mark cuban sending his reaction i think it will be an exciting period from now until this deal closes and more exciting seeing what elon does when the deal closes beyond that, i have no idea what happens once he takes control. i think it would be brilliant for elon to close the deal, make the changes he wants, and flip it the ultimate fixer upper deal. he will have fun messing with twitter and being the tweeter in chief. it will be entertaining to watch. >> he had other things going
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last night i'm sure he is very excited about. >> basketball? >> big win like a rout. >> i was busy watching the nets lose to the celtics. >> i saw that. durant gave it a shot. 39 points. >> they did make that rally run. i watched until the end because my son's best friend was there we were watching from home to see what happened. >> yeah. dallas looks like they have to win one more game. doncic is back he is unbelievable he is amazing. andrew, what is it they have to get the space who gets the space who is the richest guy >> this is interesting this is actually one of the most fascinating points a lot of questions of what it means to run a town sfquare if
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you are going to run the town square we haven't wanted individuals to run town squares what influence over the town square and how many musk will have influence over town square itself how many others might have influence over musk forcing him to do other things it gets interesting. here is what jeff bezos tweeted. interesting question by the way, he was forwarding effectively, a note or tweet, did the chinese government just gain a bit of leverage over th town square? referencing another tweet that china had almost no leverage over the platform after it was banned in 2009 twitter is not in china. that china is the second largest market for tesla bezos tweeted my answer to this
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question is probably not the more likely outcome in this regard complexly in china for tesla twitter pointed out that musk is good at navigating this complexity they are reasonable questions to ask. if, in fact, the chinese government called him up and said we're not going to be nice about the plant you want to build because of the crazy stuff on twitter, what would he do >> he raised this question for a while. >> the department of defense with spacex or all of the other businesses to, to me, is all of the other leverage points that others have over musk. not the leverage that musk has over them. it makes it interesting to run a public town square as we have discussed. >> you can go down the list of companies with different issues and serious questions raised about what is going on in china
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and their response and reaction and what -- and they look the other way. >> sure, they look the other way. that's the point. >> there are companies more important than twitter >> that's the point. a lot of companies do look the other gree with you. >> the nba >> often told to shut up about it not just shut up themselves, but shut others up employees. >> right >> they do >> shut up >> this is a valid point you make from the beginning. the first day this was announced, the idea of the political pressures that come with owning a newspaper or media outlet or probably to the highest degree of social media network. not just trying to censor millions of people there was a political cartoon, a
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bust, and elon musk. >> the first drudge. free speech record sketchy. elon musk. not so much. >> lots of times he has gone after people for lots of reasons. i know everyone talks about free speech you know, i admire the difficult. he has done amazing things this is great challenge no matter how much of a genius you are. i hope he figures it out >> does he care if he makes no money? >> that will be an interesting question >> the bankers' care he pledged more than that. $22 billion.
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>> he's basically on the hook for the first 30 some odd -- $33 billion. if the company were to go to zero, he is on the first hook for the first 33 valuation, drop $12 billion right now and he would be fine the issue is there enough cash coming in to pay the debt? does he care keep selling tesla shares if he has to do so that's why the bankers lent the money. he is the first to lose. >> cuban says poit is interesti. he will not feel the losses that much this is monopoly money at some point. >> the 180 degree response from
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people i tend to agree with what, i don't know, more centrist outlets feel it will be fascinating to watch musk break the culture of progressive conformity this is san francisco content style moderation i don't want anything from san francisco moderating the content. that's the last -- if he moves to texas, you see what the content moderation looks not austin i don't know amarillo >> that's why we're talking about it so much >> joe, there is interesting market forces to think about in this as well if you believe, which i think i agree with you i think the large population
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that lives on twitter today probably leans left. let's stipulate. so -- >> you are going out on a limb there, andrew. >> let's raise the question. if you are running this as a company, if in fact you need to make money, can you effectively add this other content and the question is is this conservative content? and then conspiracy theory and lewd stuff and the reason the kardashians are not on the site these days, they believe it is a cess pool for bullies. it is a miserable place to spend your time. how do you bring people back without alienating --
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>> jack dorsey's comments. he said it is held hostage by wall street. >> he is the billionaire as kara swisher pointed it out if you wanted it to be a town square, why didn't you set it up that way, jack >> and i look at the content moderation that guy >> comments with the guiding light and blah, blah, blah >> if there wasn't an issue and we will talk to jonathan gr greenblatt there wasn't an issue with the equal enforcement of content moderation if that wasn't at issue -- >> twitter is the closest thing we have to a global consciousness? come on. >> that is it. where do you go? let's say you are a person that wants to get an opinion out.
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you can't call a news organization and expect them to public it. >> i know people can get out their opinion. they can get out their opinion people will see it it is a valuable service for the world. it could be for musk >> and marketers >> and then you are missing one other point which is you have to the degree it will be an advertising platform and maybe it will not be maybe it is subscription only. then it limits the size of the town square. do marketers want to be next to content -- you think it is run by libs in san francisco, a lot of people say cmos in america, the companies, don't want to be next to misinformation and big on oted content elon musk may not have to deal
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with any market forces since he doesn't care and he has so much money. >> you know, corporations have heretofore been fine with content so woke and so from the other side we will see. >> if you believe that's true. >> there is the other side of things we all see what we want. we have others coming up in just a moment earnings out for u.p.s. and pepsi. we will have details next. plus, the slide in tech stocks with nasdaq down 8% in april. we have alan joining us next we will hear from gm and warner brothers discovery all before the opening bell you are watching "squawk box" only ocnn bc
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from epic trips... to the original jurassic park... on us. join over 3 million members and start enjoying rewards like these, and so much more in the xfinity app! and check out jurassic world: dominion, in theaters june 10th. pepsi -- i'm laughing because i gained weight. you get your care package from pepsi? >> i didn't see it i got mine the day after last time. >> $1.29 a share beating estimates. revenue beat expectations. interesting selection. i got lebron's spicy cheddar
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ruffles. i agree with him they're hot. sorkin, smart food doppleritos. 70 calories a cup. >> wow >> and then i got something -- how many people are here, mac, to give stuff to i got some stuff to pass out beyond meat beef jerky i can't. i tried one. i don't know it started coming back on me >> you could and you did >> i tried do you want them mac says he's good sorkin, you want the beyond meat jerky? >> i'm good. depends. i think jerky can be good,
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depending. >> this isn't meat i don't know what this is. >> turkey jerky is good. >> a lot of salt in jerky. >> i don't know. i prefer meat. >> tmi u.p.s. reporting with $3.05 a share. that was better than the street. the street was looking for 2.88. revenue ahead of the estimates revenue up 8%. beat expectations. $15.12 billion they beat expectation of $14.83 billion. 9.5% revenue increase. supply chain solutions revenue up the company is affirming guidance of about $102 billion
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compared to the consensus at $102.08 billion. stock down 11% year to date. this morning it is up 2.8% meantime, it is a huge week for tech stocks after the rough ride last week joining us right now to talk tech earnings and the fallout from the musk deal to buy twitter. alan patrikoff good morning to you, alan. let's go musk first quickly. what is your reaction to all this good thing bad thing? can he make it work? >> i actually was -- i want to say dumbfounded. it is ironic he would come out with the purchase at the same time that we have the digital services act in england going up before the commission. the digital markets act going
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up we have the two proposals in the united states to address the whole world of what speech should be allowed broadly. what markets should be allowed you have a bipartisan effort among amy klobuchar and gr grassley there has never been more legislation pending, it hasn't been passed. in europe, it has been passed. that is to deal with just the kind of thing that's happening now with twitter obviously, they have been focused on facebook and apple and google and amazon. we're entering a period of great concern of the no monopoly control. you have the great social media site of the world going into the -- remember, it is private it is not public it is in the hands of one
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person i would say he's going to have to face a lot of restrictions. he will not be able to be a wild cowboy i think it is interesting. i would be very surprised a white knight can come in here because all of these guys will be restricted. >> alan, do you think that he will fight that legislation in the united states? i don't know how he would operate the business bifurcated with the u.s. and europe will he have more from washington or more pressure because he is the owner? >> more pressure we had gdpr pass in europe that influenced how advertising was handled. everybody tried to be gdpr c
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compli compliant. there will be a general movement to be compliant. i saw the list of the companies that are talking about it. over 100 easily. over 200 lobbyists fighting any legislation. twitter will be one of them. i don't think it is healthy for the country to have too much concentration and too few people and too few companies. >> alan, this has been a dead money company for a decade people say this is a challenged business do you look at this business and say if it was in private hands, there are things that could be done to it that make it a remarkable business that it is today as a business business >> that is up to musk. he demonstrated with everything he's done. he's got to be a hero in a certain respect. since steve jobs, forget all of
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the others elon musk has accomplished an enormous amount with the companies he built that are changing the face of society and country. he has the ability does he have the personality does he have the style is he willing to play the game you know, we lived in a media world. you know as well as i do whether it was on air or whether the newspaper, people had rules. we haven't had any rules on the internet none a bill hasn't been passed in 25 years. more attention is paid to c concen concentration. >> alan, before i let you go, i want to get your views of where we are this week a number of big earnings reports. that will set the table for valuations, not just in the
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public markets, but private markets that you live in do you think everything is on sale right now or is everything bubbalicious >> the area of concern where you see softness developing as advertising. advertising powers a lot of the companies. we saw netflix now resort to advertising. i think my sense is advertising -- by the way, advertising will be controlled among the top companies we're talking about. i see that as a concern with the supply chain as a concern and more than anything, this china situation -- i had a young man working for me 10 or 15 years ago back in china. he wrote me a long email last friday about his life with his wife and child locked up in his apartment for the last month of what life is like china is really a great unknown
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as to when they will open up again and the implication for all of the things we have to deal with with china i would be cautious where we see the long euphoria with the first quarter. the market was doing great at the beginning of the year. the market had setbacks here i don't see the market running away on us. >> alan, we have to thank you. alan's memoir of the 50 years in venture capital comes out next week right behind you there "no red lights." we will talk more about it >> shamelessly promoting the book >> shameless thank you. i appreciate it. joe. ge just reporting.
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adjusted earning per share of 24 cents. topping the 19 cents per share wall street was looking for. revenue at $17 billion above consensus. the company went on to say it is keeping its full year guidance for earnings it cautions the lower end of the previous forecast. among the issues being cited by ge, supply chain, rising freight, raw material costs. "squawk box -- the reverse split. it is back it to uernd $91 a share. "squawk box" will be right back. >> announcer: this cnbc program is sponsored by ibm. ibm. let's create technologists in india, and customers all on different systems. you need to pull it together. so you call in ibm and red hat
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fidelity investments is allowing inn vvestors to put bitcoin in their accounts. it is up to employers that use fidelity to decide to put bitcoin on the menu of options under the plan, they allocate as much as 20% of retirement savings to bitcoin the company will expand the offering to others is in the future the price rebounded from 38 and change after the elon musk news. i don't know if it is cause and effect it happened at the same time let's run through 3m numbers. out with the earnings. this is a complicated earning report i'll walk through it slowly. the company came in with earnings of $2.31 a share which would be in line with the
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expectations there are charges included in that 2.31 that the street did not know about if you look at adjusted basis, $2.65. that was because of charges of 26 cents charge related to remediation in belgium that was disclosed so the analyst knew that. they took 13 cents in charges for litigation from the first quarter. the street had been pushing them to strip out the costs so they could see better about the strength of the business they have done that with this. if you add the 13 cents back in, that is an adjusted number of $2.34. the company coming in with $2.44. i think you can call this a beat the street did not know about the 13 cents in charges that would be there big question of 3m what would happen to the
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margins? dealing with the higher inflation pressure that is going to be a bit of relief for the street. they talk about the guidance they are looking for here. they talk about the macroeconomics and geopolitical environment remaining challenging and fluid, in their words. they say they are continuing to face the headwinds and navigate all of it. for the full year, they are looking at full-year gap in the $9.89 to $10.39 range. it falls in the middle of that for the 2022 adjusted earnings, $10.75 it does look like it say beat on the street expecting the stock is down by 60 cents. it is complicated and it will take time to work through the numbers. berkshire will hold the annual shareholder meeting saturday, april 30th the meeting held in person for the first time in omaha,
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nebraska the first time this has happened since covid hit. you have to go back to 2019. for the first time, cnbc will be live streaming this event. warren buffett and charlie munger on stage taking questions for five hours they are joined by two others. it is not too late to get questions. send to you can tune in live to the event. go to that is this saturday beginning at 9:45 a.m. eastern time to watch the meeting. you can get the pre-game and halftime and post-meeting shows. >> he loves jay powell >> he has been supportive of jay powell in the past we haven't talked to him since
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last may. >> behind the curve. long-term effect of whether inflation stays secular or the supply chain goes away what is long term for warren knowing him, it is 20 years. someone -- the oldest person just died at 119 i want to beat that. >> i will shoot for that goal as well we have not heard from him in a long time. he put out the shareholder letter in february they did not see anything worth buying then. they bought allegheny and a big chunk of occidental shares when we come back, new lockdown fears in china sinking stocks for a second straight day. we will take you live to beijing where the mass cidov testing campaign is under way. stick around "squawk box" will be right back.
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a mass covid testing campaign under way in beijing sparking new fears that lockdowns could soon follow. eunice yoon joins us now live from beijing good morning, eunice >> reporter: hey, joe. i'm standing in front of a pop-up mass covid testing
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center the result of the first round of testing are just in. city officials wrapped up the briefing and said out of samples taken from 3.8 million people in the biggest district, one case is a preliminary positive. they added that they cannot rule out the possibility of further transmission the city aims to test 90% of the 21 million residents here three times over the next week by the end of the week after detecting omicron here outside a locked down area and closed buildings, the city has shut non-essential venues gyms and after school training most schools remain open the city is urging residents not to travel for the holiday this weekend. and urging precautions the state media has been saying
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precautions are necessary to ensure beijing does not suffer from a shanghai-style lockdown shanghai right now is imposing hard isolation for certain locations. that is setting up fences around buildings or streets that have seen one positive case to ensure that people do not leave those areas. there are lessons learned here from shanghai. most of all. the authorities have inseven in here in beijing that medical supplies and food supplies would be guaranteed. the supermarkets have run out of food there is a lot of hoarding and stockpiling of essentials. guys >> eunice, what is a possible realistic gdp number that we could see? i know it's reported
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i guess it is asking a lot it is not easy for you to venture a guess. this seems -- the shutdown of the city the size of shanghai and beijing and you can lower to 5% or 4.5% it doesn't seem real >> reporter: right those projections are the same we see here although the government still sees what most economists believe is a relatively strong growth the economy is going to suffer some of it with the interesting commentary with beijing. beijing, because it is not a manufacturing hub, like shanghai or other cities, the impact on the supply chain will not be as great. one stat from the chamber of commerce is they believe
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shanghai has been spending $31 million for every mass covid testing round that it had to endure that is a lot of money when you consider that for us in beijing, it is going to be three rounds in the next couple days all of that is hurting the economy economy. at the end of the week, the upper echelon of power from the beijing leadership are expected to hold a meeting. they are holding the meeting expected to be about the economy. there will be a lot of people watching looking for tactics to stabilize the economy. >> okay. thanks, eunice yoon. i'll check back with you soon. let's get back to the elon musk $44 billion twitter buyout and the potential changes to the plat platform joining us is anish chopra
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he is now founder of the platform care journey. anish, thanks for being here with us. >> thanks for having me. >> a lot of hand wringing over what may happen. elizabeth warren said nobody should be in control like this you look at it as a potential of a good thing to sort out disinformation and protect free speech layout how you view this thing >> i'm cautiously optimistic president obama delivered a significant speech at stanford and highlighted the challenge with the free and open internet while protecting against the harms we've seen over the last several years with disinformation one of the critical factors is whether or not plat fornls meant to be neutral are putting their thumb on the scale with the
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agent algorithm and what it looks likes. musk says he wants to make that better and contribute to it. that goes a step beyond what president obama called in the speech to make social media companies to submit source code to be monitored for ill harm in addition, we know a challenge with respect to authentication on the internet. we have significant amount of b onbots over propagating disinformation these are accounts thats have an associated with harmful content. he wants to clean up the user base to be more human oriented that is the third aspect we had anonymous internet. that led to innovation and the first several chapters of the internet in the economy. authenticating more of us to communicate may put us better to
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the civility like wikipedia and less about the shouting match we have been worried about. >> how many bots do you think there are? 5% of the accounts 10%? >> i don't have a sense of the size of the bot market it breaks down to good bots and bad bots there are clearly bots designed to propagate certain agenda. we heard accusations of that with respect to russian disinformation there may be others used to promote positive messages or promote advertising in a way that advances our economy. there will be thoughtfulness of how to manage the broader user experience anything that can be done to reduce those bots which have been known to propagate the disinformation and harmful content may get us away from removing content
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>> you think it is possible to be protecting free speech, but also making it a more civil place at the same time those are not mutually exclusive ideas? >> it has never been the thought. we have been arguing for a free and open internet around the world. the idea is when we confront problems, we work together to solve them my frustration from the past is the industry has not stepped up in the public-private collaboration to bring emerging technologies to the greater good to some degree, some of the ideas that musk advanced, leave aside his personality, the ideas he advanced indicate a handshake with the public and private secto sector open the algorithm i'll open source the algorithm that is the formula for success in emerging technologies and making a difference in the economy. >> i like it, aneesh i hope it gives us a lot of hope
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on this. thank you for being with us. >> thanks for having me. coming up, check out the futures right now. in the red after the big market swings yesterday if in light of the selling, will e d epaingthfeke rsi rates we will talk more about that next. and keep raising rates? we'll talk about that and more next
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talk about, welcome back let's talk about the recent selling on wall street and whether the fed will lose its nerve. joining uses, president and investment strategist. that would be the wrong thing to do will they? >> i expect that it's not going to be immediate, but if they really raise rates 50 basis points in may, june and july and
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at the same time they start to cut the balance sheet of the central bank, you're going to have the equities getting clobbered. the question is, last time that happened in december of 2018, powell diverted, even though the fed is supposed to have inflation and employment as its objectives its job is not to protect equity holders, but that's the way they behaved in the past, and at some point in the next two months i expect it will be very great the problem is the inflation in 2018 at the end of the year was 1.8% a year. now it's running at 8.5% so if you pivot again, he's going to make the inflation a lot worse. and whether he is there to clean up the mess or he leave it is to somebody else, as the previous
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chairman did in 1978, '79, we had to find a new chairman within one year. if that'sma happens, it will be very, very difficult to clean it up in 2023 finally, you also have the temptation not to have an economic slowdown, a stock market drop before the november elections. it is better to postpone it to 2023, and that temptation could also suggest the pivot by the fed during the months to come. >> the fed can always say that if the market goes down that the wealth effect is going to have an influence on the economy, so the market is going to be doing some of the work for the fed itself, so therefore it can take its foot off the rate hiking accelerator and say that it made sense. i'm not trying to help equity
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investor, or we're not trying to help equity investor, we're realizing that the market is doing some of the work for us. there's some truth to that, don't you think? >> you're making a good point, joe. yes f the stock market goes down, you spend less and you cause a recession. that is true but if that is what is going to dominate your thinking, you are also going to be oriented toward the market it is much better to have a clear decision rule as i have written in the past, like the taylor rule with professor john taylor where the fed doesn't have to jump in and jump out this problem was caused by the fed underestimating inflationary pressures. i would rather the fed had not done this with inflation in the past, then they won't have the
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problem they are in today. >> you have what's happening in china which would obviously give the fed an excuse, maybe not to raise as quickly, that that was not necessarily foreseen, and then i just think in general, you know, both republicans and democrats like to spend, obviously. but in this case, the fed will err on employment, on the employment mandate, not on the dollar, currency stability mandate. when you've got an administration that is in a spending mood, the fed's got to be, it's not political, but it's got to neienable that. so it's got to be stability, not the job mandate that they emphasize. >> you're right. employment is very important, politically, employment is very important. economically as well but it is not just that.
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they're not trying to support dollar stability what is the big political problem today, inflation the inflation is coming from it whether the dollar is trading at the dxy today the highest level in two years >> all right, thanks thanks for the latest update it's episodic, your episodic appearances. thank you. >> thank you, joe. coming up, two pig big hour ahead. will musk make twitter aaper hpi place to spend time? with kevin o'leary and jonathan greenblatt we're back after this.
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welcome back to "squawk box. let's show you the futures this tuesday morning, two and a half hours before the market's set to open we will open down. the s&p looking to open down about 15 points. let's show you bonds this morning. in particular, let's show you the ten-year right now we're sitting at 2.793 the thing had crept back down. and crypto has been bouncing back up. let's show you that screen if we could. we're looking at crypto above 40,000 for the first time in a couple days, in a couple days, it's back and forth, back and forth, we were about 38,000 yesterday morning. >> lots of earnings news already out this morning let's get to don chu
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which one does you twoopwant tor with on this >> some of the bigger and more active movers are tied to the quarterly reports. we'll start with shares of general electric, right now down around 4% on around 5,000 to 6,000 share of volume. the industrial conglomerate better but ge did give a little more color on profit guidance so it kept the previous range as stated, in terms of overall adjusted earnings, but ceo larry culp says they are seeing that trend to the lower end of the range due to inflationary pressures. next up you've got shares of u.p.s. which are up about 3% or roughly 4,000 shares the shipping and logistics giant which is viewed as a global
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economic bellwether also came atop expectations thanks in part to a stronger u.s. package business it plans, by the way, to double its yearly share buybacks to around $2 billion. then we're going to end on shares of pepsico. the beverage and snack giant reporting better top and bottom line results it also raised its full-year guidance for a key measure of revenue growth that strips out the measure of acquisitions and other things. things like dorito chips it's one of those situations where we talk about the consumer demand picture, but in an inflationary environment it appears that certain companies with some of those quote-unquote trusted brands are the ones passing on those costs and consumers continue to pay them >> on that note, let's look at shares of 3m
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3m is another one of those companies. there were concerns that it would have lower margins and get hit by this. but it turns out their pricing has hung in as well. and as a result they did c see sequential margin improvement. it's a confusing report. the adjusted numbers, $2.65. the street was looking for $2.31. but the apples to apples number is the 2.61, versus street e expectations of 2.44 the street knew about 26 cents a share. remediation in belgium, the street did not know about 13 cents in charges for the litigation in the first quarter that includes all kinds of thing, things like legal fees
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for res straighter face masks. they were able to keep up with improvement. >> and to your point, but over the course of the last year, becky, a high-profile one has lost a quarter of its value because there was so much expectation built in that the margin pressure continued to hit them you saw those raw materials costs permeate through you could see that kind of impact a down trend has been in place for some time. i don't know whether this will be one of those reports that's going to change the trend for 3m a lot of 3m investors are probably hoping that it does but even in an environment where others like ge say the inflationl inflationly pressures could
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persist for a time i'm not sure if 3m is going to be one of those situations where you can say hey, a 1% gain in reaction to this earnings report is necessarily one that's going to be the overall turning point, the bottoming part of that process. it has been a complicated report to go through for quarters and quarters now especially when we were going all the way back to the march and june periods in 2020, when we were talking about covid and everything else. >> it's true and honestly, the street wants to show me, it doesn't matter what you've done in the last quarter, what are you going to do for me in the next quarter. >> let's go through some of the morning's earnings a cnbc contributor we heard from ge u.p.s. on the list
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3m on the list and pepsi on the list you your big take aways? >> i think pepsi's interesting, because just like coke, they said look, we were able to pass pricing on their organic growth went up 6% to 8%, and the consumer is still strong for branded products. tha that's kind of been the theme. the consumer is still strong how much longer can they pass it on and even though the stocks are trading in the multiples, pepsi's buying back more shares and has increased cash flow. i think the interesting part also going forward, you were talking about 3m and get ge did say we're going to its had lower end of our earnings. they're a complicated story like 3m and when they broke up their businesses, they did highlight that although they are seeing strength in health care and aviation, the power segment, the
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wind, is weaker. if you are not performing on all cylinder cyl cylinders you are in the short term going to get hit. everybody's been very cautious in the last month. so i think this is going to be rea really telling who's able to keep their margins going forward. becky as right, it doesn't matter what you did for me in the last quarter or two quarters we're in a new ball game with a slowing compliment and they'll either keep their stock price going up higher or not get killed by the market >> we've got big tech on deck later today, apple later this week where do you think those are going to land? and what do you think that means? >> those are going to be really important for the stock market, andrew microsoft and apple and google,
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although they're all down for the year have not been taken to the woodshed like some of the other stocks i think if they show improved sequential growth, these kind of become the safety stocks like we talk about the consumer staple stocks like coke and pepsi they're still a big component of the index, but if they actually talk about a waiversvering grow, you've seen what's happened to the paypal and facebooks of the world. and i think they're going to be meaningful for the world maybe not for individual stock pickers. but because they make such an interesting component. >> it sounds like you're a little bit bearish about that. if you turn out to be right, whether in a very perverse way that is helpful to the fed in terms of not having to slam the brakes as hard as some people
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fear could be the worst case >> in a way, that could be helpful, but i don't think you're going to see that now i think the fed is en route to raise rates and if the market does come down maybe doesn't raise it as fast as possible i am a little more cautious this time on tech because the expectations are so high for some of these big tech companies, and if they don't hit them, given their market size and the amount of cash flow they produce. they talk about hints of corporate spending coming down, i think the multiple contraction you are going to see, it's the multiple story at this point with head winds. you could see the market kind of pull back. final question, are you buying anything this week? >> i'm actually, if very new canew, i
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want to see are there fallen angels i'm not selling. i'm just kind of holding because the market is so volatile at this point, and you could get some really good companies on sale. it's early we're still a quarter into the earning season and so. big some of the big boys are coming out. >> sounds like we're holding steady >> i don't know. yesterday mike wilson kind of scared me. katie stockton scared me but then the markets, on a day when the markets should have sold off >> when they say that, that we were going to drop 20%, when you don't see, it's like oh, no, you have to wait for the selloff to come if you rip off the band-aid and get it out of the way, you'll almost feel better about these things >> rates are headed higher >> if you look at ten-year today
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t's below 2.8% again >> as things slow, as rate goes up and then rates don't even go up catching lightning in a bottle we do it avevery morning here ford's f-150 creating quite the buzz in the market phil lebeau has that story coming up next e. and elon musk's deal to buy twitter leaving some questions unanswered we'll discuss what could happen and the social impact. "squawk box" will be rooity back ♪ be the last thing on my gty back canhty backames? sure! ...after homework. thankfully, voya provides comprehensive solutions, and shows me how to get the most out of my workplace benefits. what's the wi-fi password again? here... you... go.
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. ford's now riding the f-150 lightning. phil lebeau joins us with more, hey, phil. >> we're here at the rouge plant where we on the line the first f-150 lightnings are being built. it started production a couple weeks ago. huge vehicle for ford, probably the most important launch since the model t, because they have got to get this right to make inroads on tesla and other competitors rolling into the ev
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market they have about 200,000 reservations already for the lightning. there is no doubt there is heavy anticipation, heavy demand they're going to ramp up production as quickly as possible they think it's possible they could get up to 150,000 lightnings produced this year. if that happens they'll be well on the way to meeting the demand out there. base price starts at just under $40,000. the ev pickup market is going to explode over the next several years. not only do you have the lightning, and the gmc hummer is a pickup truck you put that all together and this is what lnc automotive expects. a huge pickup in sales, with the lightning going under a million in 2030. tesla sells three out of every four evs in the u.s. that will come down as you see more models like the lightning
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roll out ford expects to dramatically improve its market share in evs in the u.s. from the 4.5% range. will it get a boost in shares of ford remember, when they first announced the lightning in may of last year, look at the pop in ford shares immediately afterwards it has come down since then. they are expecting that they should get some momentum here from the lightning how important is it that they make this launch go well we'll talk with jim farley, coming up on power lunch you do not want to miss what he has to say a clean launch is critical for the lightning. ford has had some problems with its vehicle launches in recent years. they do not want to have that happen again guys, send it back to you. >> pretty famous truck, phil, still a big far opart of ford's legacy how important? >> it is it is the bread and butter for this company it's where they make their
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profits and yes, they make it on the internal combustion versions they think the lightning has first mover advantage. you will have a liben electric silverado coming up. and i will have one from dodge eventually there will be one from ram so electric pickup also explode in demand over the next decade they believe the lightning could have first mover advantage >> thanks, phil. tomorrow on "squawk box," don't miss mary barra. she'll join us at 8:15 eastern when we come back, elon musk adding another corporate feather to his cap but questions on the twitter and the social media industry remain right now as we head to a break.
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welcome back to "squawk box. if you are a bitcoin bull, you might like this news they will allow investors to but the a bitcoin account in their 401(k) it will be up to employers to decide whether to put bitcoin up as an option fidelity would allow up to 20% amount of their account to be bitcoin. the price is $40,493 so maybe moving a little bit on that news. pretty amazing i don't know if i want up to 20%. but i imagine employers may control that a, whether it's on the menu, and b, how much you could put in
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>> it's got a long way to go, as pointed out in some detail the labor department has issued guidelines that make it very difficult for employers to cya if they were to do this. it says extreme caution, exercise extreme care before they consider adding a crypto option to 401(k) plans if they do so, they could expect regulators to ask how the hell do your duties of prudence and loyalty, with that guidance, how do you square that it would be very, very difficult. >> you might be on the hook for making them whole. and bitcoin, which has soared, depending on when you got into it you're talking about a pretty volatile move. but the story in the "wall street journal" illustrates how volatile it has become
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there are 80 million u.s. investors who own at least some form of a digital currency that's pretty significant. >> the labor department guidance is so, i don't know, prohibitive that fed idelity, along with ot trade groups have written to the labor department asking them to withdraw that guidance >> abigail johnson has been one of the, she was an early crypto and bitcoin bull she's been running fidelity, they've been wanting to do something like this for a long time >> fidelity's had a trading platform for this since 2018 so they did get into it pretty early. >> i imagine there would be a higher fee one of the things that warren buffett has mentioned over the years, becky, is some of the 401(k) plans charge low fees to the company, high fees on to you, the individual, low fees on
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to the company the ones with low fees for the individuals usually charge high fees to the company. it will be interesting to see what companies are willing to pay for this option. >> fidelity is a behemoth, just in 401(k), 2.7 trillion. they are kind of crypto friendly, but they're kind of ahead of regulators in the labor department we'll see. >> make the fair point, that it's going to be up to employers as to whether they want to go head to head with it meantime, still to come, we've got the debate of the morning. kevin o'leary and jonathan greenblatt, they'll join us to talk elon musk's twitter purchase and what it means for free speech. and we'll talk about what it means for the global economy you're watching the one d lyanon
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> twitter accepting elon
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musk's offer yesterday musk tweeting his intentions for the platform saying in his words i hope that even my worst critics remain on twitter, because that is what free speech means. here to talk more about the future of twitter, kevin o'leary and jonathan greenblatt, welcome both of you gentlemen. just start with jonathan, something that the way that "the wall street journal," i know, you know, people have their own perceptions of that, but it will be fascinating to watch mr. musk try to break silicon valley's culture of progressive conformity and i guess my question to you would be do you think that the way twitter's content was moderated was fair and unbiassed heretofore s
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and i'll mention one other thing. employee donations 98.7% by twitter to the democratic party so if there wasn't a problem, why do you think elon musk decided to take this on? he's just a bad guy who wants to spread hate speech he was sad that there wasn't enough hate speech around? or was there an actual reason that he decided to spend that much of his own money in what he's saying is to try to help free speech. >> well, joe, look, you're a talented investor, and you and i both know what all our audience knows. he bought the platform because of the upside. facebook has 3 billion users, youtube has 3.2 billion users, tiktok over a billion users. i think he looks at this asset which has been sub optimized for years and sees a product he can
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harness. i deeply admire elon musk as an investor and i think you know i want to give him the benefit of the doubt. i want him to bring his extraordinary talent to this company which needs it, and i would love to see him make it a beacon for the exchange of ideas and the tradition of athens, right, or what the founding fathers intended what i worry about, it could go the way of gab and parler. we should talk about that, because that is material but this kind of smoke and mirrors, that it's all about censorship, i don't know, joe, from my point of view, my job is to present the jewish people and other marginalized communities and data showed a 34% spike in
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anti-jewish incidents last year. i don't believe in the freedom to incite violence, whether it's alt-right nazis. my hope is that he will do the best to make it better for all users, not resort this freedom of speech issue, because it should already be this vibrant town square for all of us to use. >> i don't know how many yachts he needs to water ski behind he's already worth $250 billion. no one in their right mind with the economic performance of twitter would buy this, that already had $250 billion trying to make $260 billion he may be the first tri
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trillionaire kevin, you have mentioned in the past that this company has underperformed, miserably in terms of sptock performance but we're talking about at this point today, this is a free speech debate. do you think at this point elon musk will be better at content moderation >> i do. i think this platform has underperformed, it's, as you said, been miserable for investors for a decade now basically, what happened here is you got your money back after putting it to work and at risk for a decade now that's behind us the board's been put out of their misery they were abysmal at managing this business. they didn't even use it, which i found incredible and now the future's open. the challenge is, how do you bring back all the people you lost by silencing voices
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indiscriminately that was pretty bad. over time, people just left this platform as advertisers did, because at the end of the day, advertisers come from eyeballs you don't need to like the eyeballs you just need to have the eyeballs what i think will happen is he'll open it back up, and use algorithms like other platforms do to allow you to choose your content. i could point to wikipedia or linkedin in the case of twitter, get everybody back on, so it's an open forum build bactek the user base, doul it if you can. you need some cash flow from adve advertisers, and there's lots of opportunity here if you enhance the filtration opportunity here so i can take out, if i'm a democrat and i don't want to hear from
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republic republicans, i'll filter them out. i'm not saying that's a good idea ultimately, you don't have to have a twitter account if you find it offensive. we use the product in our companies because it's starting to get better at what it did, in terms of communicating products and services i would like to see the ability to edit it you can't do that, it's the only platform you can't edit if you made a typo, which is ridiculous >> kevin, but here's the business question. i agree with you the success or failure of this is going to be getting more people back on the platform. how do you do that it's not clear to me that the reason people are not on the platform is because they being silenced by some algorithm or, you know, young staffers at twitter. it's because there's so much hate on the platform already,
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that you can't go through your men'ses mentions without being told you're terrible, without seeing bigoted information, just terrible things on there already, already this is the case and so the question is, when we talk about free speech and opening this up to even more, from a business case, you talk about cmos, they don't want their corporate message next to some kind of bigoted, racist online nobody wants that. and i'm unclear how quote-unquote opening it up, where you're going to allow all of it, including misinformation and things about, whether it's about covid and who knows, i know there's going to be debates about all of that. that's why people are not on the platform, in fact, i would argue it's the opposite. >> the platform hasn't really innovated in about four years. the feature set has been staying the same, and it's been in a constant debate in the same dialog you're having about content that's inappropriate
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but with innovation, to make it more interesting, and the fact that this is elon musk's perm platform is going to bring a lot of people back to it he has huge fan base all around the world. and i wasn't to nt to point out something that he did very well. he used this platform and it has been well documented on twitter, he used it as a megaphone for free >> when trump was on the platform, this company wasn't doing doing better there weren't any more people on the platform this idea that people are canceled, this doesn't make sense. it's like a complete myth to the math >> andrew, if you want to innovate and you want more users, you have to do both fitt twitter has become very, very boring there's not a whole lot new to
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it you can say i'm going to get a public dialog going and make this far more engaging for people, because at the end of the day, for all this debate about eyeballs, you need more. it's basically that's the problem. you can't grow this business without innovating on it and letting everybody on it. now you will get the lunatic fringe, you might as well admit that, 2.5% will be craze eechlts th that's the cost of freedom of speech i've already pointed out linkedin and wikipedia they had that issue and they fixed it and getwitter can do te same thing imagine the only car company on earth that doesn't advertise twitter is a big part of communicating thebenefit it's mercy for the board, mercy for shareholders, and now we start a new page
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turn the page, open it up. let's see what happens what is wrong with that? >> jonathan, just comments about, you know, you and kevin always sort of stake out both of these territories. kevin says people should be able to see things and decide and say oh, my god, that's awful, but i do want to see it. you just think there are certain things that should never see the light of day but who decides how to do that and we know now that the people that were in charge of deciding thous how to do that, 98.7% went to the other party. i don't want that. if you could assure me that you're going to have an objective arbiter of what i see, i could do it, but the way it is right now, it needed, it was broken, and thank god elon musk came along >> look, i agree what kevin said about the fact that there's a lot of room for growth and a lot
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of opportunity for innovation. i will make a comment, though, joe, i think it is troubling that our public square, if you will, is controlled essentially by elon musk and mark zuckerberg the concentration of media in the hands of two people who aren't accountable to anyone other than themselves, i think that is what we should be talking about. we'll put that aside for just a moment the reality is, i believe twitter is a product, and the company is a publisher and i do think that in a world where we have atmofreedom of sp you should have all views. it's not the freedom to slander people i know kevin agrees with me on that elon has shadeaid he's going ton source the algorithm but the default should be down the middle and, again, nazis and
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anti-zionists, put them back on the lunatic fringe, not where my kids can find them when we know that hate is on the rise i don't say that anecdotally, i say it empirically twitter can play an important role if you will in opening up the conversation in a moderate way which, again, encourages dialog but maybe dials down the drama and re-imagines the public square that i think we all want. liberal, conservative, progressive, libertarian it's the lunatics i want to keep on the fringe. >> you both have the slippery slope argument, and that's just the way, it's never going to change you think the slippery slope had jonathan wants to take you through, it opens up the slippery slope to just
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armageddon in terms of hate speech and i don't know how we find something in the middle between you two. >> who should decide what you see? you should it should be your personal decision do i need a twitter account or not? you should decide. if my interests are watch collecting and guitars, i want to see more people that have that interest so i can have a dialog with them i think we should build that into twitter an interest that very, if i'm democrat or republican, why can't i talk to others of my party, nothing wrong with that again, not featured there yet. bottom line is, at the end of the day, and this should be for all social media, twitter included it's my decision i decide what i want to see and not see. personally, i want the option myself that is the essence of freedom of speech. and i think we're going to go now. i think what will happen, we're all speculating, those voices that were silenced, they're
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coming back to twitter with all of the controversy and the eyeballs who have come back, too. those individuals will come back because they want to see the person they follow, and whoever that is, you may not like that person but who cares? it's their decision, an individual decision. my guess is if we have this conversation again in 12 months, twitter will be 40% bigger, because we'll get voices back that have been lost that should still be there >> okay. all right, very good thank you. good to have you on. we'll do this again. thank you. >> get rid of all the bots, and then it will be 40% smaller. when we come back, new kearns over a stealth covid-19 outbreak in beijing that has the city scrambling to avoid any shanghai lockdown in the meantime,check out
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some of the names that have already reported this morning. general electric, 3m, u.p.s., pepsi and stwae management we'll be right back. go, go, go. sorry. nope. okay. fresh donuts - hot coffee! they deliver real time data and business forecasts when you need it. i think it was fine how it was. (air tool sound) to help you stay ahead of the curve... or you could use workday. the finance, hr and planning system that helps cfos make better decisions faster. on the other hand, we had a great fourth quarter. for a accelerate your decision-making world. workday. for a changing world. your record label is taking off. but so is your sound engineer. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit
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welcome back, everybody. this saturdayque, we have a cnbc exclusive. warren buffett and charlie munger will take the stage and it's the first time we will be bringing you this live access if you are a sheareholder, you still have time to submit your questions. we will ask as many as we can to mr. buffett and mr. munger be sure to tune in live. go to this saturday to watch the annual meeting itself the day's events kick off at 9:45 9:45 a.m. eastern. futures right w,no down but not out. we're coming right back.
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a developing story out of china. concerns about more covid cases in beijing and the possibility of more crippling lockdowns for the capital. this is all happening as people begin to horde food there out of concern that they may not be able to leave their homes. yu yunis joon joins us, what is the latest >> you do is take your phone and
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scan your id, this health code or this code, and you register your id, pay about $4 and get your covid results in 24 hours this is all part of the city's drive to get 090% of the 21 million people here tested three times by the end of the week the authorities here have already said that the first round results show that out of samples taken from about 3.8 million people in the biggest district, one case is a preliminary positive the authorities also added that they cannot rule out the possibility of further transmission now outside of one lockdowned area, the city has shut non-essential venues the this is mainly cinemas for example as well as gyms most schools, though, remain open beijing is urging residents, though, not to travel for the upcoming mayday labor holiday which starts this weekend.
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they also are urging residents to take precautions. the state media has been saying that the precautions are necessary to ensure there is no shanghai-style lockdown here >> thank you very much our next guest says lockdowns for china could be the single biggest risk to growth this year joining us is china's beige book ceo. how do you start breaking it down >> i think the first thing you have to understand straight out is that this is not really about covid. it's about covid lockdowns so the government's view in how draconian they have to be. we saw in shanghai, this has been dragging on for five weeks now. one case resets the clock.
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a health crisis in the capital during a political year would be a catastrophe for xi jinping the question is, can they maintain zero covid cases in the capital for very long. it seems hard to contemplate >> a health crisis would be a huge crisis for xi jinping, but what about an economic crisis and just the idea of locking these people in. are he this doubling down on the zero covid poll anyor are there signs that they might let up on it >> i hear this all the time, what about what's going on right now in shanghai suggests that that's not the big city model going forward. when you're talking about economic damage, one or two twe weeks down for any particular city if we start talking about lockdowns that are not just going through april but into early may, and then we may have some of the major ports, four of
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the largest ports are in shanghai if we have the ports shut down, economic activity shut down into may, we are looking at just awful q2 numbers the supply chain snarls are going to have cascading effects throughout the economy >> we were speaking with eunice yoon earlier today our reporter there on the ground in beijing she was saying that the authorities have been saying, don't hoard, this is not a situation like shanghai. are part of the shanghai lockdowns because they don't have enough to go around and even if you have menough to go around, it doesn't matter if you can't go out and get that food >> they're stocking up it makes sense to do it from a family by family basis the idea is things will be better handled in beijing, let's
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hope they're anticipating the worst they understand they can't have covid running unchecked. the capitol will be shut down indefinitely if there is any kind of tiny little outbreak they're being defensive, but they've seen what's happened in shanghai >> it's hard to believe the numbers that come out, especially when they say there's one potential positive case. if you question those numbers then you start to question the economic numbers, the economic slow down for china and what that means beyond. >> if you look at what happened for the first quarter. the numbers beat expectations. i think people got complacent. the q1 gdp number ts, half the
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country's shut down. things are looking bad if they can get the lockdowns over by early may, but if we're talking about this two, three, four wiebeeeks from now you're looking at grisly data >> we appreciate your time >> thanks, becky coming up when we return, con congressman ro khanna will join us and then a quick check on markets on this tuesday morning. we're already in the red big tech coming up later this week with today dow off about 27 points
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good morning, welcome back to "squawk box." i'm becky quick. let's take a look at the equity future the we did see a big bounce back yesterday. the dow staged a turn around of almost 500 points to end up 230 points at the end of the session. this morning not carrying through on that.
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the dow futures indicated off. the nasdaq is off by about 43 points right now in the futures market the ten-year yield has come down, it's all the way down to 2.774% after hitting above 2.9% on friday and then crude oil, which was off by about 4% yesterday is staging a little bit of a come back not a lot, but by about 70 cents. andrew >> thank, becky. mainland chinese stocks struggling again today, though hong kong ended with a slight gain investors there try to avoid a long-running lockdown like the one in shanghai. our eunice yoon told us, one case was a preliminary positive, but officials say they can't rule out the possibility of
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transmission they are aiming to give the 21 million residents three tests by the end of the week. talk about an enormous project >> really. >> yew nis was saying they have to pay $4 each, mandatory tests that they have to pay for. >> you look at different countries. the zero tolerance is coming back to haunt. we'll see. hopefully they get this under control, but it's almost like a virgin population for covid infections, and that's good and bad. and, you know, kramer's pointed out, do they not kwwant our hel? remember j&j actually stopped making vaccines because there's a glut and therapeutics as well. it's omicron, which we have this
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notion that it's much less deadly, much less virulent, based on -- >> you have some immunity. >> based on either people who have had it or vaccination it may be, the elderly population in china would be very vulnerable people or anyone with not a great immune system, so moving on state side, the senate is scheduled to hold a final conversation today for lanell brainard. two other fed nominees, lisa cook and filip jefferson from davidson college are expected to win confirmation in the days ahead, but they likely won't be part of deliberations, though, on rate hikes at next week's fed policy meeting and the biden administration has reversed a trump administration plan that would al lout
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govern them to lease the land to drilling it will shrink the amount of land available for lease, allowing fossil fuel extraction up to 52% of the reserve, compared to what would have been 82% allowed by the trump plan. big morning for corporate earnings, one of the big names, 3m, scoring a top-line beat came in better than expected. let me walk you through this very quickly the company came in with an adjusted number. it cloud some charges that the street knew about and some it did not. there were charges of 26 cents for remediation in belgium but there were 13 cents in charges for legal fees that the street did not know about. so if you add it all up, it
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actually looks like a 2.65 versus 2.44, if you were trying to compare apples to apples. right now that stock is up there was expected to be margin compression. it wasn't the case for the quarter they just reported but we'll continue to keep an eye on this. dom chu joins us for a look at some of the other top premarket movers in the morning session. hey, dom >> let's get a check on some of the other earnings reports in addition to 3m a few to keep an eye on include sherwin-williams shares are up roughly 6% you've also got defense cont contractor ray threeion
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technologies warner bros. discovery is up just about 1.5%, 30,000 shares of volume. media assets and discovery these results key here are just for the discovery side of the business, since the deal to merge those two assets with warner happened after the end of the first quarter. results were beeps on the top and bottom line. we also a have check on the trillion dollar club some investors stepped up to buy some of those beaten up stocks we're seeing some of those gains reverse. apple, microsoft, alphabet hold a huge, huge amount of influence. and microsoft and alphabet are the once to watch after the bell today and amazon later in the week as well as apple. and then a new call from deutsche bank is getting some attention on trading desks this
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morning. the economics team at the german lender have a more dire warning about the recession. they point out to us the risks of this outlook look skewed to the down side, our central message is that there are good reasons to expect inflation will continue to surprise to the upside and in it some stubbornness to remain well above targets. we regard it as highly likely that the fed will have to step on the brakes even more firmly so if you're into more of that bearish side of things if you feel that the risks are not being put into the market as much, the folks at deutsche bank have a little bit more of that fear, juncertainty and doubt creeping in. >> it's hard to imagine, dom,
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the economy's running so hot, we keep hearing again and again and again, and consumers are flush even a lot of the demand, they are willing to pay up for things it would be the quickest 180 in history, if the economy we were in right now were to contract. >> that's problem. things are too good right now that the sgedingfed is going tot aggressively hike rates. these are all calls that have big assumptions, right, built into some of them in terms of timing >> never do both never do direction and time. it will never work >> you can't do both of them e. >> if you don't do both you're going to be right in the hereafter, theoretically >> pepsico revenue beat expectationes company raised its full-year forecast for organic revenue
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growth u.p.s. too >> u.p.s. reporting earnings of $3.05 a share, better than the street's estimate of $2.88 and it was the domestic business where they really saw strong growth package business there helped that a lot u.p.s. i think is the best-performing stock of the earnings that we've gotten today. up about 1.25% coming up, inside elon musk deal for twitter then congressman ro khanna gives us his thoughts on the world's richest man buying a social media giant. stay tuned cnquk x"n ching "sawbo o bc
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let's show you crypto currencies bitcoin trading over 40,000 after coming down to about 38,000 yesterday morning one of our top stories today, twitter's board unanimously approving elon musk's $44 billion offer for the social media company julia bore stin join us. the employees were told that once the deal closes we don't know which direction the platform will go but what we do know is musk has said he's focussed on free speech and making it a town square he wants to make twitter's algorithm open source and make
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transparent the ranking of tweets he wants to ah thents date more users and remove more spam bots and to push for unfettered free speech then there's also the question of what happens about twitter's business model he has praised the subscription offerings and has warned if musks to reduce content moderation and content feels more risky, analyst think that will make companies less likely to put ads on the platform they expect some of the dollars to shift into digital ad
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companies, including hulu. but of course there is still so many unknowns about how musk will change the company, how that will impact not just users but also advertisers, becky. >> you know, we spoke earlier with someone who had a pretty interesting view that suggested that you could really do both of these things continue to push free speech and make it even more open but also rein things in by getting rid of some of the bots, requiring authentication how many people have you talked to, julia who think there is a way to split this very, very fine hairs on this and end up pleasing both sides? >> well, look, there is a sense, i was talking to some people yesterday who said look, elon musk has made the automobile an incredibly seamless, high-tech, simple experience. and with tesla, could he teslafy
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the twitter experience and make it really easy to use. i think making twitter easy to use v more free speech and also less harassment, i don't know. it's possible that those things don't have to be in opposition to each other. it's a complicated question. >> it is this was president obama's first chief technology officer, and he said some of the thins elon musk has already put out there are things that go further that president obama himself was suggesting in a recent speech where he said you need to open up the algorithm and let regulators take a look at. elon musk has said we should open up the algorithm and let everybody take a look at it, with that transparency, maybe there is a way to do both of th these things at the same time. >> some of these recommendations he's made are simply a good idea it seems the algorithm
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transparency is a key piece. the other is authentication. are people going to behave better if their identify city tied to their witwitter handle will they find ways to get around that? >> i sure hope so. >> some of these things would be yes, great but i think there are so many unknowns here, musk has never run a company like this. and he's also never run a company when his primary interest hasn't been making money. he said he was interested in taking twitter private, it was not because he see ass a huge business opportunity here. >> spacex may make money, but i don't think that's the primary reason he got into it. i don't know it's an interesting debate
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anyway, julia, thank you great to see you >> it's an interesting debate. i don't think we have any resolution >> good to see you meantime, here's a thought about muxsk's deal. quoting a tweet from the "new york times" reporter, who pointed out that china was the second-largest entity. thank you for joining us, congressman, what do you think of the deal? do you think this is great are you concerned? what's your take >> well, look, i mean, it's a
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free enterprise economy. obviously, it's for twitter's board of directors to decide who they sell to the question is which board of corporate gofrns is going to be set up when jeff bezos of amazon bought "washington post." there is an independent. and my question for elon musk, does he really want to be running twitter? it's a thankless job and is he going to set up some sort of independence, is he going to be influenced if the chinese communist party wants people to be taken off the twitter platform >> in terms of that influence, how concerned are you? do you think regulators should be looking at this transaction in a way that perhaps they typically wouldn't on anti-trust grounds you historically wouldn't. is there some other rationale where you look at this and think congress or washington is going to lookaskance >> i think it's hard to look at
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the deal itself and say that there's some anti-trust violation or some regulatory problem. i think what is more important is to say, well, if this is why we need actually internet bill of rights to present otect peops data some of his suggestions of getting rid of bots, having transparency, those are good things, but i think there should be a hearing about what is the commitment to make sure that this is truly independent, that you don't have situations where foreign governments have leverage, that you have transparency of who's making the decisions on twitter mark zuckerberg learned that he making the decisions was not a good thing that's why they created the facebook oversight board my sense is that elon musk would be well served to have an independent board, maybe bring back jack dorsey, others to run
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the day-to-day decision making of what content moderation is on the platform >> do you think, when you look back at elon musk, do you think that he will be a good steward of this concept a town square based on what you've seen from him? i would also say by the way, the u.s. government does a lot of business with elon musk through spacex, department of defense. we could talk about debates around or not debates, conversations that are ongoing right now between tesla and the u.s. government as far as infrastructure for electric grids. there are lots of government roles related to the tesla businesses >> look, i think it depends osen what he does if he's taking over the day-to-day management of twitter, making determinations of who should be on the plorp, who shouldn't be on the platform, making determinations of what speech crosses the line
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and what doesn't, then i think it's a disaster. first of all, it's a thankless job. no one in america would be popular. and he would have a lot of conflicts of interests but if he says, look, i have ideas, getting rid of bot, leaving the day to day management to other people, it would be fine. he hasn't said what the plan is. we should hope that he does the right thing. >> now i'm going to put it on you and some of your colleague, not just in congress, but governors and the like, who have stepped in and oftentimes used their own political pressure on businesses the greatest example in the last week was desantis in florida some people cheered that others said that was actually on the wrong side of free speech. we've seen this issue come up time and again where you've had companies speak up in certain
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cases in certain states on voting rights, and some trying to take back tax benefits and the like i'm thinking of what happened in georgia. talk about pressure, in china on elon musk, but how that is, that dynamic has changed. that feels new >> i think it's a fair point and it's one of the reasons i can come on and say, well, of course twitter can't sell to elon musk. i think people in political office need to be careful about dictating what a company can or cannot do. doesn't mean we can't express our hopes, our ideals. it would be nice if a company did x or wy, but you have to be very careful to use pressure of the government in a way that is pickin picking on one particular company as opposed to having
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broad-based rules that apply to everyone >> the rules that they have put in place, including president trump that they banned for life, do you think those are fair things do you think that that is free speech >> first i'll address trump, but how many people have they kicked off? there's this idea that somehow twitter is kicking off all these individuals. can you think of other people who they've kicked off they really haven't kicked off that many people >> alex combs. >> you know why they kicked him off, he would say the massacre in connecticut of those kids was not true >> it is a question a lot of our viewers looked at and asked and they believe for bertt better oe
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that twitter has silenced ann tirean entire group of people >> but in the case of trump, if it's elon musk, anyone at twitter would have a hard time saying that that person should be denied access to the platform and then the question is, if he does enter the race in 2024 and he's allowed back on, what are the safeguards and guardrails saying if you incite violence again you'll be back off my sense is that decision would be made regardless if it's elon musk i don't think you can keep the republican leading contender off the platform unless there's again a ban for repeated bad action >> congressman ro khanna, always good to get your perspective e thank you. >> thank you coming up, believe it or
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not, we'll have even more on elon musk's deal for twitter plus, big tech earnings which really get going tonight stay tuned "squawk box" will be right back.
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coming up, becky quick with more on the twitter news
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and breaking economic data t.rch durable goods orders are ou and we'll bring you the numbers when "squawk box" returns. want more from your vitamin brand? get more with nature's bounty. from the first-ever triple action sleep supplement... the only 24-hour vitamin c... heart-healthy support every day. get more with nature's bounty.
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welcome back to "squawk box. rick santelli with breaking news on our preliminary read on durable good orders. it's up .8 we went a little sideways as we went with negative numbers if you take out transportation, it improves to 1.1 if we look at capital goods. up 1%. the best since january when it was up 1.2 if you look at shipments, up .2, half of expectations, sequentially following a revised. and it stacks up
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the surprise is of course is that the capital spending aspects of capital goods orders, non-defense aircraft, the year-over-year number's been pretty strong. interest rates have dropped rather dramatically the last several sessions 294 is the high-yield close on the 19th currently at 276 we see so many maturities snugged up toward 3% and backed away the dollar seems to be the king currency of late, due to all the nervousness around the globe on inflation and growth, we see that relationship between the japanese yen and the dollar. the yen on the wrong side. making everyone a little nervous about who's going to end up stepping up to the plate to take the place of the purchasing of the federal reserve on the
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treasury complex >> the recession fears are you seeing an economy, how long would it take for an economy like this to roll over, even with higher interest rates? it just seems like, i mean, you can't turn an ocean liner around in a bathtub is it possible it could be here in six months? it's just hard to imagine. >> i don't think it could be here in six months but i do think there's a certain inevitability to the notion of having a recession just because, right, essential banking has tried to write out recessions out of our history we really haven't had the kind of purging that i think we need, really since the credit crisis. i don't think it's the next six months i think we're looking more toward 15, 16 months, and the cycle of the central banks will probably be one of the catalysts, but i that i is somewhat inevitable. at some point, we're going to
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have to feel some pain after all these years of basically, what, a punch bowl that's been too big, super kbglued to the countr top. any way you want to say it anything else about twitter? >> what did becky say about twitter? >> you can read me so well >> why is everybody, i don't understand why everybody have their hair on fire >> oh, my god, i know. in what >> what's so threatening about free speech? i don't understand it, actually. i think the advertising model is broken anyway, with respect to anything that has the word "free" in front of it. >> thank, joe. >> i have no thoughts at all on that, joe. >> i see that, i see that.
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>> there is. i smell hair burning everywhere. steve liesman joins us with more when you get done talking about this, i want your forecast when rates go up and the fed is trying to do something, they can eventually do it, i guess, but didn't this economy running kind of hot do you see it turning around on a dime and going into recession? j i was thinking about that question you asked of rick i am reminded of the 2001 recession. i think it was the president of kodak who told me that it seemed like all the cameras around the world stopped clicking at the same time, which i've always remembered that, that yes, in some cases it can stop on a dime, even though i get your general sense that it's a big economy, and now we have this
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durable goods report february was a weird month, maybe seasonals in there something strange about february but you have a good bounce back. manufacturers, companies still buying manufactured goods, computer goods, machinery, and i haven't seen yet, by the way, the increase that we're probably going to get in defense goods, new orders what we're sending to ukraine is out of stockpiles, but eventually, that might be replaced where that's down the road, too. there's a lot going for this economy right now. in terms of low unemployment and i wish rick was still there. one thing you have, joy te, tha going on the fed has this big suppressive action on trading in the bond markets. you have tremendous volatility, up 20, down 20 basis points. and you want to be careful not to have a macro call from all
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this what we do know, the fed is going to hike, relatively rapidly at least throughout summer but right now you have people coming back to work and companies still buying things. and increasing their inventories. the thing that happens, joe, that is the thing i was taught first to watch is inventories. i know it's like the least exciting part of economics, but it's kind of the place where you get recessions when inventories get too high relative to demand and if they can keep inventories under control in this restocking price cycle, then it's really hard to have a recession when you don't have hefty inventories that need to be worked off and production has to stop down the line there's some reasons for optimism, but it is possible for the economy to stop on a dime. >> becky wants to talk about twitter, but i checked, and i'm
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right. we blocked each other. we blocked each other. i just checked your twitter account. you blocked me, and i blocked you. we co-blocked. >> now we must talk to each other in person. >> that was a long time ago, wasn't it, steve i just hit up your account and says you're blocked. i cannot follow his tweet. >> there was a scene that they couldn't remember why they were not talking to each other. >> i forgot you blocked my >> that kind of pissed me off. >> i thought it was kind of stupid for you to block me, joe. >> it was child oish. let's get to the broader markets. our next guest said he would fade don't buy on the dips, but sell on some of the strengths, why?
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>> i think because we've only just bee gun in terms of tightening monetary policy the fed funds rate would normally have to be above the rate of inflation, and right now's 25 to 50 basis points and the cpi's 8.5. there's a long wraay to go i'm not particularly worried about earnings it's the multiple that people will pay for those earnings that makes me nervous >> would you wish the fed would not do it, jason >> they have to do it. >> they hav've painted themselvs into this. but the markets moved a lot since the pandemic woes,
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obviously >> at this point i think the fed has to do it they had the luxury of forecasting inflation in 2021 and frankly, they wifhiffed they were wrong. inflation is the most progressive tax. it's a politically sensitive issue. the feds' job is to maintain price stability. the primary job to maintain price stability and the job supermarke market is tight as a drum. i would not delude myself in thinking there's a fed put any longer the fed put for the time being is gone. >> do you have a question about twitter? >> no. but why don't you unblock leisman? >> what do you think of elon
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musk buying twitter? >> you are such a nudge. >> listen, joe, for the first part of this i'll stick to the investment conclusion. i think it's an important reminder that if you're a public company it's not your company. it's the shareholders' company, regardless of what you think of yourself as the ceo on board, the shareholders own it. so if you want to take positions on certain social and political issues you have to be willing to withstand the fact that somebody might want to buy your company for other reasons. i do think this, on the heels of the disney news, for anyone on either side of the aisle, it's not a good idea to alienate potential customers or users >> everybody biuys sneakers
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>> that's right. michael jordan, republicans buy sneakers too if it's a private company you have a fiduciary duty to your shareholders >> just so i'm clear, you're taking it on the position that the corporations should effectively say nothing. it sounds like you are not a believer in what the business round table talked about in terms of various constituents speaking out when there's human rights abuses and the like, that that's not the role of a company. do you think's fair for politicians. by the way, there may be a constitutional case over what happened at disney, where you have politicians effectively publicly saying it's retribution for using their voice in the context of what happened in
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florida. >> andrew, i would say, though, that the primary goal of a company is to provide its shareholders with returns. >> of course that's the case >> politicians have the job of making the laws and creating trading relationships with countries that may not have our same values. those are the people that we entrust through elections to make those decisions i would be more inclined to be sympathetic to companies that took these issues if i felt in any way that in many cases they were genuine i don't believe in many cases that these positions are genuine in any way i think it's virtue signaling, and. >> but jason, isn't there hypocrisy on all sides you look at elon musk for example. here he is saying he wants free speech in the united states. that's the whole message of this twitter situation, and why et
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his second biggest business is in china, and you've never heard him say peep about that. what are we talking about here anymore? >> unfortunately, i believe, and this, i'm an american first. i think american companies should think about america first. personally unfortunately, we live in a post patriotic world in which a lot of companies do whatever is convenient to make money i think there was a time in american business where that wasn't true. where there would be some real questions about, about doing business in some parts of the world. but, again, ultimately, that role, i think, really moves to the political field. it's t it's hard to expect businesses to do anything other than to make money politicians have to be the ones that regulate the way companies make money i don't think companies should be in that business too much
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>> you know, you break that down, it's a straight gas. >> that's right. >> trying to bring the straight gas, man bringing it. >> cooking with gas, with jason. >> cooking with gas. >> thanks, jason >> by the way, i have more twitterers asking you to unblock them asking me to ask you to unblock them >> no. it's just like trump permanent. are you permanently banned >> can you take that to the bank when we come back, jim cramer's thoughts on the trading day ahead. ge kept its full year profit guidance of 280 to 350 a share in place and the company is trending toward the lower e andnd the
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want to get down to the new york stock exchange where jim cramer joins us. yes, we're going to talk twitter. we were talking about jeff bezos's comments on china. i remember when president trump wanted to go after tiktok. do you think the chinese will ultimately try to influence aeln musk, given his business in china? >> i don't think anyone can influence elon musk other than
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elon musk. he's the one who's least susceptible to the chinese communist party. >> what do you think he can do with this business do you think there's two or three things he can do that can be game changers where this become as wildly successful enterprise >> i don't know wildly but yes, you can diversify from advertising. put more money toward subscription what they've lacked is what alphabet has if you give them money to try to sell a product, can you can do t branding and i think he can change that i think he's going to make it more fun and can use direct messaging. if i were american express or chase, i would contact musk right now. he could do it with morgan stanley. and say look, we want to use
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direct messaging and that's something that i know that really, when you think about it, that benioff had when you think about where you need to kimberly-clark or clorox, to get a sentiment. and these are things, there were so many different revenue streams that twitter left on the table in part because they were so poorly managed. >> jim, we got to go but i'm so looking forward to hearing what you got to say on "squawk on the street" on this market this morning and the big earnings reports that are going to be coming later today or some that already came out this morning and later this week, big tech on tap. jim, we'll see you in just a couple of minutes. i want to remind you about jim's new investing club re rcan point your phone at the scenight now to get on the list "squawk box" coming right back ♪ ♪
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welcome back, everyone big tech earnings get into gear tonight with microsoft and alphabet reporting they're coming off of a big turnaround to start the week joining us now is the founder of the satori fund.
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let's start by talking about your biggest conviction right now. you're doubling down on this idea that the consumer spending is really shifting, those patterns are changing right now. how do you play that >> well, i mean, if you look at it very big picture, the news that's come out recently, netflix have their first global loss in subscribers since 2011 and on the flip side, you had the united ceo coming out and saying it's the best demand environment he's seen in 30 years. so i think for me what we started doing in the middle of march off that prior leg lower, we started buying cruise lines, airlines, hotels, you know, casinos, all the stuff where consumers wanted to go out and get services and so you're seeing this big switch from people buying things like pcs and smartphones, which, by the way, units were down 5% year over year in the march quarter
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for both of those categories, to now they're going and taking flights and going to hotels and et cetera. that's where the big switch is that we're seeing right now and from pandemic beneficiaries, you know, to reopening plays as well >> dan, it seems like the market is really kind of caught up to this if you look at netflix, it's down at $208 from above $600 is there more to kind of play into this? do you short any of those names at this point? do you buy additional? do you go long it's kind of hard to believe in a there's even more to play out here >> i mean, there's more to play out. and i think, you know, you brought this up yourself right now, becky if you look at netflix, last year, netflix already missed a couple of quarters the stock was up 11% last year this year, the stock is down 60. last year amazon missed a couple of quarters also the stock was up last year i don't think the market is treating companies the same today as they did back then for
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one simple reason. people say, don't fight the fed. and it worked great during the pandemic the market went up for two years in the middle of a global pandemic but the same thing applies ton way down which is without the fed as a backstop, you have a problem with your numbers, your stock is going to get clobbered. i think tesla versus netflix is a good example where tesla beat the revenues, margins, it was a stellar quarter. your reward was the stock was up 3% that day. netflix misses, was down 35% the same day so the risk-reward is a lot different which is why yesterday we bought more in the reopening category because of that, because we feel like there is a lot more to come because people are still fighting this and believe somehow that the pandemic beneficiaries, that the aren't going to get worse. >> so i know your long names like southwest, penn, uber, what
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stocks were you buying yesterday and what stocks are you short? >> sure. i mean, for us, anything that benefitted from the pandemic, those are the names we're going after. and so those are names in the smartphone category, pc category, that's streaming category, all the names that you can imagine that benefitted from this over the last two years those are the names we're short. for us yesterday, we started nibbling at some of the names in the medal space, copper which goes into electric vehicles, uranium because people want to get off of natural gas from russia so europe is going to push hard. we bought some more in the travel area, so we bought lyft yesterday, for example, we added more to several of the names we already owned in the leisure space. so just adding more to the stuff we already started buying in mid-march in those categories.
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so we own -- we own booking, airbnb, hyatt hotels, norwegian cruise lines, we own a basket of about ten of these names and we continue to add to those as we get more opportunities to do so. >> we've continued this conversation today, this debate about whether a recession is coming when you're looking at such an incredible economy right now. as you point out, with all of these consumers willing to spend and having the money to do so at this point, what do you do when it comes to the fed. the fed is going to raise rates. what do you think happens next >> i mean, it's real easy. don't fight the fed. if you look at what's happening right now, we're looking at, you know, 50-basis point hike is in the bag coming up in early may i think it's likely -- you got a 50/50 shot you end up with 75 basis points at some point and if you look at the last time
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we got 75 basis points, that was in 1994. and during that period of time, the s&p trailing went from 27 times to 15. and you're sitting right now with the trailing pe of around 22, 23 times so, trying to fight the fed, it just -- i didn't work on the way up during a pandemic where they shoved so much money into the market and the government added 5 1/2 trillion in stimulus we're two years, you got 4.8 trillion in fed balance sheet expansion, plus about 10 trillion that's against a $20 trillion u.s. economy almost 50% of gdp. multiples are still really high. look at ge and how it trades today for a clue ge expectations weren't that high coming in stock was already down 22% coming into today. they beat the revenues they beat the eps. by some miracle, they're guiding to the low end of the range. i'm surprised it's not below the
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low end of the range and the stock is still looking like it's down 2 to 3% >> down 5% now. >> and so i think that tells you what you need to know about the risk to reward in this tape. you need to be careful -- >> dan, thank you, we're out of time it's great to see you. right now it's time for "squawk on the street. ♪ good morning and welcome to "squawk on the street. i'm sara eisen back with jim cramer carl has the morning off david is on assignment he's going to join us to talk twitter in a moment. not much follow through to that positive intraday turnaround yesterday where the market ended higher futures under a little pressure. s&p down 19, nasdaq down 58. we have a lot of earnings to digest and we're going to begin on that earnings from. what does it tell us about the economy?


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