Skip to main content

tv   Squawk on the Street  CNBC  April 1, 2022 9:00am-11:00am EDT

9:00 am
what can happen during the in season even if things go down. >> dan nooils, we want to thank you for your perspective a little bit of a downer but realistic downer we appreciate you being with us this morning that -- that does it for us on what was a big day quite a number make sure you join us next week. have a great weekend, everybody! "squawk on the street" begins now. good friday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer a solid jobs number for march. 431,000 shy of estimates unemployment down to a cycle low of 3.6 wages up 5.6 labor force participation up for a third straight month we'll start with that jobs number, jim. we added 1.7 million jobs in q1.
9:01 am
and this three-month average rate, we make up for pandemic by year end. >> yeah. i think it's a mixed blessing. wages aren't keeping pace with inflation. if you're jay powell, you're saying it's driven but the purchasing power is going down for americans what i think js will watch is what is going on in the equity market, will is that almost every group i follow, except for energy and cybersecurity, are expecting that they'll be pricing pressure so suddenly you have mortgage rates up in anticipation with the fed is going to do far beyond what anyone thought they would do that's the biggest that the fed has. some people talk abouted supply chain. believe me, if things slow down, if housing slows, if your whirlpool or a cabinet maker, your orders are not going to be as robust.
9:02 am
i think what jay powell is worried about is everybody going to be geared up and selling things at the moment when the market is -- when the job market -- >> by selling things you mean stocks yeah, no whirlpool. let's use whirlpool. they can't meet demand what happens let's say they're going full tilt then suddenly there isn't the housing market slows well, it isn't like they're able to kind of stop it it is one of those moments where there are a lot of companies that are rethinking how aggressive they want to be for 2023. >> on guidance or pricing? >> both. i fear when you look at dell going down today, it's the second downgrade. >> yeah. goldman today. >> there's a sense of william sonoma when do you l-- you look at rh. it was frightening i wish i wasn't kidding.
9:03 am
i think you see a belief that what has happened is there was a giant shift to hybrid. you had to have two houses, two cars, you had everything new, new dishwasher, you needed tools, and you needed to build that office out with a dell or hp i think everybody finished they've all built. >> it's the word out of jpmorgan today. they worry about end manned. if the macro weakness continues. so they take apple and qaualcomm off the focus. >> okay. let's explain why i think it's wrong. >> it fits with what you said. >>well, no 5g is a secular change yes, the consumer may be weakening. i would have said maybe you take apple lower because of europe. i'm not hearing that a lot of this is our interview is saying from micron. he said that pcs are soft and
9:04 am
cell phones are soft if you speak to qaualcomm, they'll tell you, look, worldwide everyone is going to ag and apple is going to 5g. i think that -- those were no the ones you should have picked. you should have done texas instruments. you should have done analog devices. >> some of the names goldman took. >> yes apple is once again trading. i love them because i built a career on people trading apple incorrectly. i think apple is having a darn good year. and if you sell apple, i want to see you get back in at 167.38. go ahead make my day. >> yeah. those who tried at 150 had the door shut on them.
9:05 am
>> where are they? they were so clever. they knew because the guy said tim cook called all the suppliers and basically, hey, listen, we're so stuck with phones could you please make less yeah like that's what he does. we'll miss the quarter i need your help that's what he does. i mean, now there are people who feel that i want to buy act vision. >> we'll get to the journal story. a couple of new developments on the tv ideal yesterday as for the jobs number, jim, obviously you think it clears the way for 50 >> yeah. with the party on. >> yeah. 75 >> well, no, that would be total outlier. i did have 430 today brian dooes we'll speak to him i think jay powell was waiting to see if omicron was going to be bad
9:06 am
what kind of guidance did jay powell get from the health it was around thanksgiving what he heard was this is worse an faster and could be deadlier. then you come in and the russians don't move against ukraine head of the olympics which they should have, by the way, then they could have gone and cut off natural gas when it was coal instead they wait because they don't want to upset president xi. >> yeah. >> we have people saying look out. it's starting to hurt demand, too. that's a psychological demand call is what we're getting if you go over rh. they're saying rich people who are worried about ukraine have cut back on their spending. >> yep. >> now rich people is not defined by wayfair that's being downgraded everywhere it's defined by william sonoma. >> there's a report on wealthy americans having second thoughts
9:07 am
on second homes. demand for vacation properties lowest since 2020. >> i love her. i think that's it. i think the second homes needed for hybrid work have been brought. the next second home you're not getting 5% you're getting 6%. so now -- >> on your jumbo >> yeah. if you're lucky. you have a great balance sheet you're getting 6 sudden will i you have a real cost these are slowing down americans. so jay -- you must say when is he going to call me fed chief. fed chief has got the market is doing some of his work he has to do the rest. he's doing it. >> sounds like you think maybe there's a time to sell in q2 >> yeah. >> you do? >> yeah. we let it come back. look at the housing stocks trading at a fraction of what they were. i don't want to get rid of travel yet i mean, if you hold off -- >> some savings. >> yeah. you hold off on getting married or having kids that'll happen but the stocks themselves are down so much that they're
9:08 am
completely anticipating a recession. many are anticipating a recession. if we don't get a recession and the stocks that are up now on our board, like a kb homes, which is at book value, those will be buys but i think talk will be at 40. >> it's interesting you mentioned it i don't know if we can build a chart of toll and cost costco and toll used by b of a today as proxies for staples versus home builders you look at the divergence there, jim it's a real recession argument, you could argue. >> oh, yeah. look, toll makes beautiful homes in areas where they need homes but at the same time they've been kind of -- they haven't kind of taken a pause in building doug yearly said over and over this is the best housing market ever now it is until mortgage rates go so high it's not. and i want to see the spring selling season see whether it's held back because 5.5 to 6 versus 3.5 to
9:09 am
4, i mean, people don't like to buy when they're that -- a lot of people think the rates will come back. i think that rates are going in the right direction. >> yeah. b of a. said what is the pain trade for q2 the contrary began trade long bonds and short commodities. you would be going from a rate shock to a growth stock. >> i love that it's fun it's a game. let's be serious real money is made by looking at great companies like costco and buying them. not like i'll -- yeah. that's a hedge fund. and the hedge funds love to lose money. they get their percentage. the rich people don't know any different, right they're busy buying calls on act vision. >> yeah. >> i think that for the most
9:10 am
part, the economy is going jay's way. the companies are all anticipating it. with the exception of fuel stocks and energy. believe me, president wants to make -- if the president wants to make pioneer more oil, it's not going to happen. that was a very impassioned plea that the president made. you want to plea open keystone. that's sacrilegium just like it was in germany relying on russia. >> yeah. we talked about the spr release yesterday. but oil today dips below 98. first time below the 50-day since january, jim. >> that's why the commodity trade is interesting. >> you think it's a temporary mechanical trade >> yes the fact is that if -- let's say
9:11 am
tomorrow the very fickle chinese government said, you know, we're going to reopen shanghai on april 7th. you'll see a huge trade into oil. that's what happens. the fact is oil companies are probably million barrels shy here our economy is still using a lot of oil we stopped talking about ukraine for a couple of days but they had 20% casual ity some people were saying it's going russia's way we had 11% casualties on d-day 10 to 11% casualties on. if you take 20% per month in the end you don't have an army i think you have to keep an eye on putin
9:12 am
he's losing the war because the ukrainian army is getting some offensive weapons. >> yeah. reports of a chopper attract cross border on a russian fuel depot. >> unbelievable they didthat thing is not the russia of old all the hype they have so much fuel, why can't they get the tanks filled? had they started the war when they should have, it's no different than hitler waiting and dealing with rainy season and had to deal with the russian winter these guys are as bad as the
9:13 am
nazis in terms of planning. >> yeah. we wish it hadn't happened at all. >> it's a horrible thing we're doing. i'm proud we gave $100,000 of the trust to the american red cross for poland you can do that. we're not adds tough on the russians as we were on afghanistan. woe should be talking about the humanitarian crisis that is created for no reason. we sent a hundred drones how about a thousand >> that's been your calling. a lot to get to this morning as kick off q 2. we mentioned the jobs number that revision, by the way, for the prior month goes from 678 to
9:14 am
750,000. look at this help wanted. std that woman win "jeopardy" la night >> we'll get david back next week more "squawk on the street" in a moment eals on every iphone - including the iphone 13 pro with 5g. that's the one with the amazing camera? yep! every business deserves it... like one's that re-opened! hi, we have an appointment. and every new business that just opened! like aromatherapy rugs! i'll take one in blue please! it's not complicated. at&t is giving new and existing business customers our best deals on every iphone. ♪ ♪ this thing, it's making me get an ice bath again. what do you mean? these straps are mind-blowing! they collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery. and you are? i'm an investor...in invesco qqq, a fund that gives me access to... nasdaq 100 innovations like... wearable training optimization tech.
9:15 am
uh, how long are you... i'm done. i'm okay.
9:16 am
game stop surging in the premarket. plan to sheek shareholder approval tesla outlined a similar plan.
9:17 am
gamestop proposing an increase from shares to 300 million tesla, amazon, google. it's growing. >> people have recognized you need to cater more to the individual investor. the hedge funds and the mutual funds are not who you want anymore. they're not sticky it's something ryan has right to do a game stop what you want to do is make it so the stock price is lower. there are a lot of people who are thinking that the share would take off people who love game stop love it even more ryan cohen said bcg did nothing. they think the gamestop skipped them ryan is out. he's saying -- basically he's
9:18 am
attacking bcg. in ryan said i want ice cream accept to bcg, it would be overwhelming. >> yeah. we're seeing halo on amc, bed bath do you think the split thing has legs >> very much so. >> b of a has note if you look at the s&p names above $500 a share, it's about 15% of the index. >> yeah. i speak to offline when i speak to a ceo i say please do history. look at history. during the great 80s when the pepsis and cokes went up they split the stock they were conscious of the individual investor. you're thumbing your nose at individual investor if you're shopify. you're thumbing your nose at costco i have not pushed costco enough
9:19 am
because they're a good company they need to take notice i said you stro get the individual investor in they have the big meeting. they bring everybody down to walt disney world. guys are shorting it and saying it stinks. do you think this is under the political heat and the stance in florida? >> yeah. they managed to alienate gays and straights. you have to work so hard to do that think about how hard it is you have to plot that one. ty thought the meeting would be important and move the stock, i
9:20 am
was wrong. one of the reasons is the controversial nature of the ceo. who seems to just not get the moment he was talking about the metaverse. >> first things first. >> yeah. >> we'll see parent company comcast try gifting in. >> yep cramer's mad dash on this friday morning whene wget closer to the opening bell just under 10. don't go away. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire (vo) your home internet is going ultra! introducing verizon 5g home. see ya cable! matching your job description. with 5g home you get blazing fast 5g ultra wideband internet
9:21 am
to power your entire home. (mom) i'm ordering pizza! (vo) yeah, i could eat. (mom) what's our new address? (vo) i dunno. set it up yourself in just minutes, no drama. and look here, 5g home is 50% off with your unlimited plan, just 25 bucks a month, no contracts, no hidden fees... what do you say to that?! (mom) shhh... (vo) right, you enjoy that internet. verizon is going ultra, with home internet at our best price.
9:22 am
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 indeed.com/hire
9:23 am
time for cramer's mad dash as we count down to the opening bell. >> if everybody is worried about supply chain and the economy slowing and the 2s and 10s i haven't mentioned it because it mystifies everybody it says stocks are going lower edward's life sciences they have a device that is the miracle device it's the one you set to crack open the chest now they insert the device it's on fire i had the company on mad money i think if you want a company that is not going to be impacted by the scenarios of the fed but doing well because we don't have to worry about covid, it's ew. i have given you the stock going back and forth about ew today. and whether it's too expensive on a pe multiple what i love about it, you're never going to see it's going to get hurt by jay powell. >> right are you the same with all
9:24 am
medical products >> no. it has to be heart. >> heart >> people will hold back there's been no surge in new knees or hips. i got that from a couple of companies, also. if you look at the heart, well, i mean, it's kind of valentine's day. ew takes care of this part and this part is abmd. you want to be involved in this. heart is very, you know, 6 to 700,000 avoid of congestive heart failure. people don't want to go. they shouldn't be afraid to hear it the device works. >> joints are easily deferrable. >>yes.
9:25 am
they are a remarkable company. i believe that people -- remember the short seller herb green berg he sent me a piece about why he likes ew ew i remember when my father had a heart problem university of pennsylvania doctor said oh, my gosh, you have to crack the chest game he said no e.w. >> a big catch we'll watch that got the jobs number to dig in on a little bit more. and white house reaction to the number in a few moments with the national economic council brian details. we'll talk oil prices and releasing reserves, as well. back in a moment
9:26 am
when you need help it's great to be in sync with customer service. a team of reps who can anticipate the next step genesys technology is changing the way customer service teams anticipate what customers need. because happy customers are music to our ears. genesys, we're behind every customer smile.
9:27 am
9:28 am
9:29 am
some u.s.-listed china stocks rallying in the premarket. according to bloomberg, chinese authorities are preparing to give u.s. regulators full access to auditing reports of most of the 200 plus companies listed in new york as soon as mid year it's being characterized as a big concession by the chinese. >> yes and if you want to know what the top pick is, if you want to go there, there are rigorous fellow rod bernstein that said jp is the top pick wynn is up. >> yeah. citi takes it to buy 96. >> yeah. you have to feel there's better times coming ahead in china. i want to the say there's a freeze coming between the
9:30 am
russians and the chinese it's just all the work i do say that the chinese have said, you know, we wish you the best of luck [ opening bell ] >> celebrating the first listing anniversary at thenasdaq kind of got played a bit with putin and have a stain on their hands. >> yeah. that's important people forget that italy, which has a economy the size of russia, kind of sold out to
9:31 am
china. italy is trying to figure out who they're with the germans are trying to figure it out the chinese will go with anybody because 25% of their business is there. what the chinese are afraid of -- it's interesting between our natural gas and australian natural gas, if the president wanted to, instead of browbeating the pioneers of the world and the eog, we can shut china down we can say no more to you, china. the president is uniquely tone deaf what it can happen. you can shut them down they met with australian officials yesterday. >> that's right.
9:32 am
the paper tiger that is putin, how many conscripts are just kind of every day saying, man, i can't wait to kill our people. i don't know why you would shoot your own people. >> or shoot down your own planes they were muslims and -- they are muslims and putin was telling the west, listen -- untrue but this is, you know, these are people who are -- it's hard. think about kent state soldiers killed people who are unarmed and it changed the world. they're killing civilians who are russians.
9:33 am
if you have no free press -- i don't mind talking about the nazis anymore. when they said we have to have the chorus singing christmas carols when there was no men's chorus and they were dying >> a lot of polling research suggests russians aren't really paying attention to the war at all. they're not fed any information. >> yeah. or saying the war is going well. you see polls saying putin's ratings are high okay you're in russia you want to say i love this phone. no, i don't like putin are you out of your mind i would say putin is the greatest man ever. nobel peace prize. >> you mentioned atvi a couple of times now what do you make of this diller's comments i didn't wait until i was 80 to participate in some obvious fraud
9:34 am
i know diller and it seems crazy. he's a savvy person about businesses and stocks. i don't know the details i know there were calls bought i'm going with innocent until proven guilty. he didn't fall off the turn up truck but neither did martha stewart. but barry diller -- i'm not buyingit
9:35 am
bobby is incredibly rich you have to be miserable and horrible because you presided over the enterprise. you were hoping would give it to microsoft and maybe get rid of it no he's being dogged. again someone would say, jim, he's rich. so what. it's not great to have the senate -- senators come down and say, listen, we see what you did. bobby came on "mad money" to talk about, hey, listen, we're doing our best amazon watching for the final tallies in alabama and new york. it looks ike alabama will reject union efforts once again we have data even higher than gelsinger.
9:36 am
i would imagine you argue more deserved. >> yeah. that's bad i don't want a mission i want profits i'm not talking about the propgt kind i'm a seller of the profits. it's a remarkable thing to have the ceo who is deciding himself he's going to take the company and rebuild american
9:37 am
manufacturing. i think you can do things. praise the company and not own the stock. that's my feeling. i think amd has come down too much the sanjay interview on our show was what caused a huge shift in people's thinking. he never quantified that the weakness is in 4 not 5 people want to upgrade they want to get out of 4.
9:38 am
g4 is dying. when he's saying is g4 is dying. you get to 5 and the 5 is growing like mad is gaming strong or weak i keep hearing it's weak but i want to hear it from best buy. i don't want to just hear it from the shorts. >> sure. >> we'll watch it. >> yeah. we'll pay attention and get consumer in demand for chips the jobs number, of course, is hugely consequential today the ongoing inflationary head winds for the economy and potential recession warning signs. we're joined by brian details. brian, good to see you happy friday, brian deese. >> happy to be here. >> some people looking at the print today and saying with 1.7 million jobs printed in the quarter, hard to imagine that we're in a recession now
9:39 am
hard to see. it's a strong report and what it un underscores is the seeing about 560,000 jobs over the last quarter. that's been consistent over the last year. importantly we're seeing that in broad breadth. of course, we see the unemployment rate down to 3.6% we've not had an unemployment rate lower than that in the last 50 years there's been three months in the last 50 years that the united states has had an unemployment rate lower than 3.6% we're continuing to see a lot of momentum and strength in the labor market recovery. >> labor force 624 within a stone's throw now of getting a prepandemic levels do you think it's going to happen why is it up for three straight months >> i think you're raising an important point. we've had talk about people getting back to work the 12th month increase in labor force participation over the last year is stronger than at
9:40 am
any time in recorded history in the u.s. it has come back stronger than any of the past four we're seeing it accelerate over the last couple of months. it's a good sign it's a sign people are getting back into the labor force. we're seeing more segments of the population get into the labor force, as well that's, of course, good for the question on the long-term of price pressures in the economy we need more people to get into the labor force. what we're seeing is that happening at a historic rate now >>well, brian, jim cramer. i'm concerned that the wages are not growing as fast as inflation. if the price of everything is going higher, what are you going to do about it >> we're continuing to see strong wage growth the wage growth at the bottom
9:41 am
ha hatch is continuing to rise it we're seeing strength in the wage base at the lower end but you're absolutely right. we need to focus on costs and prices what the president did yesterday to historic step to put a million barrels a day on to market in the short term bridge over the next several moonlts as u.s. producers ramp up it's a step we can take. we've seen some moderation of the price of oil as a result we'll keep looking for places where we can lower costs there are a lot of places we can lower the costs of lower income families in a way that wouldn't add to inflationary pressure those are the kind of things we should prioritize in this economic moment. >> are you ready for the long-term strike >> i'm sorry what?
9:42 am
>> for the contract is up. long shoreman strike. >> the west coast? >> yeah. we've been on the issue of fluidity at the west coast ports for some time now. as you know and have covered it's been a journey. we've made extraordinary progress 12 times at l.a. and long beach are 60% since we all started focussing on this. and, of course, as we look forward. there are challenges labor shortage one of them all of those risk factors. we have an entire team focussed on this. we nominated the president put -- into that role because we knew these are issues we need public/private collaboration and on that issue and others, we're going to continue to do what we can to bring people around the table and try to find practical solutions whether it's sharing data more effectively or figuring out a path forward through the labor negotiations. >> hey, brian. the spr release got a lot of
9:43 am
attention this week. actually gasoline futures have levelled off a bit started the week around 340 and about 312 this morning what is the long-term strategy of that release given it's going to take awhile for the oil to hit the market and how do react to people saying it's a midterm gimmick? >> oh, look. i think it's exactly opposite. it's a well calibrated but historic step to actually supply the market into what is a clear supply disruption. we have a clear supply disruption not enough supply in the market because russian oil has come off. we can use this national asset to put a million barrels a day on to the market we have the operational capacity to put up to 4 million through the four different caverns that make up the strategic petroleum reserve. we can do that we can do it in consultation can with our allies. there's a meeting going on now we anticipate they'll be an announcement out of that around collective release from reserves
9:44 am
around the world this isn't a gimmick this is practical way to get supply on to the market more quickly than production can ramp up elsewhere. >> okay. so one of the things that concerns me about what the president said was there are a lot of wells that have been drilled. not in the operation these are on land and not known by the federal government by responsible companies that are trying, hard, by the way to reduce the carbon footprint. suddenly they wake up. instead of being told, hey, listen, we've got the -- and doing a great job. you pump or else what does it mean? does it mean a tax a tax if they don't pump >> well, i'm glad you asked the question what the president was talking about yesterday is only activity on public land on federal land. >> okay. >> 90% of activity happens on private land the president wasn't speaking to that on public land, where companies
9:45 am
are getting permits from the federal government for land that is the taxpayers' resource, what the president has said if you're going to actually use the permitted areas you have permitted and explore or turn those wells back on, that's fantastic. if not, you should pay a higher royalty to hold on to the permits, if you're not going to explore them the companies, as you know, have the option of returning the permits to the federal government or transferring them to others. so this is really not intended to be punitive it's sbenlded to be a practical step to try to encourage increased production on federal land given the tools that we have companies are free to operate outside of federal land. the way they are and the way they continue to be. >> right because it would be -- you're absolutely right we're talking about a million barrels they're holding back i'm going to say it.
9:46 am
i don't know you want to hear it it's less than keystone. let's rethink keystone are you thinking about that? >> i think you know we know from covering this any action on keystone wasn't actually increase supply and it would bring oil and transmit oil years into the future. what we're focussed on now is what we can do now to your point, there are wells that are shut in and they can brought back online over the course of the next couple of months that's why the reserve is an appropriate and important tool to use that's why the question of using permits. the 9,000 permits on federal land where there is already activity that is already explored those wells that can come back on that can bring the million
9:47 am
barrels a day in the short term. not long-term questions. they cloud what is the short term priority. we're trying to keep our focus there. >> finally, brian, at the risk of not getting too wonky we end up talking about 2s and 10s and 5s and 30s how does that get talked about in your office is there a sense it remains a reliable indicator about recession risk >> look, essential it's something we focus on and track. i think what it goes to is the broader question of recession risks in the economy it's something that we pay attention to i think the report today and a lot of other contemporaneous indicators underscore what we're seeing in the indicator now is a
9:48 am
strong and incredibly labor market a strong u.s. consumer with household balance sheets continuing to be in healthy shape. and the u.s. actually quite uniquely positioned globally to drive an economic recovery through a number of, you know, a number of shocks, including the war and the supply shock it's facing now if we look across indicator, what we see is resilience, continued strength, real challenges on the side which is focussed on things like the strategic petroleum reserve. >> brian, i appreciate it. covering good ground today have a good weekend. brian deese. >> i'm used to dreading the interviews this is the questions.
9:49 am
look at the light. someone probably said he sounded like a republican with the oil but, you know, it was a delight to hear someone from the administration come on and respect and respond to our questions. and i applaud that it's usually a complete sham. >> by the way, as we were talking, market manufacturing bmi for march coming out a couple of moments ago 58.8 we were looking for 58.5 time for the bond report we have inversions a bit don't go away.
9:50 am
competition beat us again. how? they have a better finance system than we do. i feel like they might have a better finance system than we do. workday. how do they make better decisions faster? workday. it's got to be something workday. i think i got something. work... hey, rob, you're on mute. hello! hey, rob, there he is. workday. the finance, hr and planning system for a changing world.
9:51 am
[sound of helicopter blades] workday. ugh... they found me. ♪ ♪ nice suits, you guys blend right in. the world needs you back. i'm retired greg, you know this. people have their money just sitting around doing nothing... that's bad, they shouldn't do that. they're getting crushed by inflation. well, i feel for them. they're taking financial advice from memes. [baby spits out milk] i'll get my onesies®. ♪ “baby one more time” by britney spears ♪ good to have you back, old friend. yeah, eyes on the road, benny. welcome to a new chapter in investing. [ding] e*trade now from morgan stanley. hey, did i tell you i bought our car from carvana? yeah, ma. it was so easy. i found the perfect car under budget too! and i get seven days to love it or my money back... i love it! [laughs] we'll drive you happy at carvana.
9:52 am
it is another day of some downgrades for some retail names. and in this case barkleys cuts gap to under weight along with way fair
9:53 am
but look at lululemon, the biggest gainer for the week. >> upcoming meeting, mirror doing better the new fashion style is really good ca calvin mcdonald has it going and that is a pandemic stock that wasn't a pandemic stock. >> docu sign we'll watch and opintrg holdings as the reeng ade is in place. dow is up 70 don't go anywhere. ♪ ♪ we all need a rock we can rely on. to be strong. to overcome anything. ♪ ♪ to be... unstoppable. that's why the world's largest companies and over 30 million people rely on prudential's retirement and workplace benefits.
9:54 am
who's your rock? cal: our confident forever plan is possible with a cfp® professional. a cfp® professional can help you build a complete financial plan. visit letsmakeaplan.org to find your cfp® professional. ♪♪ [bat swinging] the aflac pre-pain show. aflac! ohhh, mark is about to become a living piñata. luckily, aflac will help cover his unexpected medical bills. aflac? [whimpers] i don't think he has any candy in there. am i at least going to get hit hard enough to forget this? nobody is going to forget this, ever. [bat hitting] ohhhh! i'mma call his momma. aflac! ♪ aflac! official partner of march madness.
9:55 am
9:56 am
time for jim and stop trading. >> i did not mean to send nvidia down gaming is an open question but i think gaming is strong i want to clarify that i'm get aig lot of heat. so barkleys comes out today and said they cut the numbers proctor and colgate and kimberly and clark. if you're proctor, these raw costs, you could stand up to any plastics company and say we're not going to take that price increase the other guys, maybe not. but i think the analysts should recognize that scale means that the chemical company takes the hit, not proctor i like proctor very much here. same thing with pepsi and coke the people who supply them, they take the hit this is not nvidia where they're telling everybody, listen, you need a subscription if you want
9:57 am
our chips. you want our chips, a subscription and then you have to buy the chips so give me a break >> kind of the inverse of what pelt said about big lumbering brands. >> yes exactly. >> what is tonight >> so right. and a big wedding coming up there. so tonight have i broad ridge, we're talking about the actual voting business proxy season. and then blue owl, which is a company people have been asking about. which is a financial company that is doing quite well look, i have to tell you, people should vote. but the younger people like robin, they should recognize that you could vote. got to work on that. >> that is part of owning. >> i love stocks, i'm coming after you if you don't do them you favor the rich and you don't wan to do that >> we'll see you tonight at 6:00 p.m. and have a good weekend, jim "mad money" and 6:00 p.m
9:58 am
jan hatis is underway as we get the numbers for q1 and q2. (bell dings) (pages slipping) ♪ ♪ ♪ (trumpet solo) ♪ ♪ ♪ (typing) (bell dings) ♪ ♪ (cheering ♪ ♪ (typing) ♪ ♪ ♪(trumpet solo) ♪ (vo) your home internet is going ultra! introducing verizon 5g home. see ya cable! ♪ ♪ with 5g home you get blazing fast 5g ultra wideband internet to power your entire home. (mom) i'm ordering pizza! (vo) yeah, i could eat. (mom) what's our new address? (vo) i dunno. set it up yourself in just minutes, no drama. and look here, 5g home is 50% off with your unlimited plan, just 25 bucks a month, no contracts, no hidden fees... what do you say to that?! (mom) shhh... (vo) right, you enjoy that internet. verizon is going ultra, with home internet at our best price.
9:59 am
cal: our confident forever plan is possible with a cfp® professional. a cfp® professional can help you build a complete financial plan. visit letsmakeaplan.org to find your cfp® professional. ♪♪
10:00 am
welcome back to "squawk on the street." rick santoli with live breaking news construction spending for the
10:01 am
month of february up half a 1% exactly half of what we were expecting. but then again, we all know you may want to spend on construction but supply chain issues may be preventing some of that activity. on the manufacturing, it is a march read headline number expecting 59, it is a bis of a miss at 57.1 57.1 is the lightest level going all the way back to, well let's see, 57.1, back to november of 2020 when it was 57.3. so i'm sorry, 57.3 won't do it we have to go back to september, 55.4 and prices paid, it is going in the other direction. it is zooming. 87.1 87.1 i have to go back to june of '21 to find a higher number at 91 and new orders, 53.8 and that is a miss 53.8 is the lightest since may
10:02 am
of 2020 and finally the ism ploim report, after we just had a good employment report, better than expected, at 56.3 and 56.3 is the best level since march of last year. carl, back to you and have a good weekend >> you too, rick it is been that kind of friday rick santoli good friday morning. welcome to another hour of squawk on the street here with morgan brannon, david faber is on assignment and the month of april, with all of the date you just mentioned and the jobs number, 431 k shy of estimates but unemployment down to 3.6. >> we're 30 minutes in the trading session. here are the three big movers this morning we'll start with a volatile day for gamestop boosting the numbers ever outstanding shares to propose a stock split from 300 million and that stock is up 9% right now. plus wynn resorts getting
10:03 am
upgrades to buy from neutral from citi and licenses in make ow and they about end with neo, the chinese based ev company delivering of 10,000 vehicles in march. that is a 38% increase from a year earlier stock rallying today still down big on the year though, carl almost 30% on the year about 6% right now >> let's turn back to the jobs numbers. we said the economy adding more than 430 jobs in the month of march. our senior economics reporter steve liesman has more on the internals. good morning, steve. >> good morning, carl. yeah, despite the missed march report showed strong job gains as the economy continued to recover from the covid slow down showed little signs of weakness related to the recent numbers rick just gave us. back to the other numbers. nonfarm payroll up 431 and looking for 490.
10:04 am
unemployment rate ticking down more than expected, more than 3.6% we put people back to work that came back and labor force participation at 62.4 and strong hourly earnings at .4 and up revised 5i9d thousand with a 750,000 number in the month of february where the jobs were in march goods producing frong gains and construction and manufacturing doing quite well and then we have the rebound from the slow down restaurants and bars up 61,000 hotels up 21,000 and retail trade up 49,000. hospitality still down by more than a million job and labor market relmains extremely tight but we've seen 700,000 come back into the job market almost 2 million this year trouble is they are put to work and then some. that drives down the unemployment rate and drives up wages, too
10:05 am
kathy from mont economics said the strong wage gain should continue to draw individuals into the labor market, boosting the labor force participation rate such a rise in labor supply will be essential to alleviate some of the current inflationary pressures. the fed, it is unlikely to wait around for that happen markets are baking in another 200 basis points of rate hikes this year. including a 50 at the meeting in may. and balance sheet reduction. if the labor force supply comes back, helps keep a lid on wages, that is going to help the fed be easier next year, but not this year >> steve liesman, thank you. for more on the markets, let's bring in deutsche bank bengie chadda and david kelly. good morning to you both perhaps i'll call it a middle day for markets to start off this new month and this new quarter with the s&p just above the flat line. 4535 there binky, i'll start with you your take on the jobs report we
10:06 am
got today and what we are seeing in terms of a market reaction to start a new quarter. >> hi, morgan. thanks for having me in terms of the jobs report, i'd say it is what we basically expected it is just that the economy is in pretty good, strong shape certainly increases the likelihood of 50 basis points hike you know, in terms of the markets, what i would basically say is, you know, the other key issue of course has been really the geopolitics in russia and ukraine and that basically the market sort of worked its wau through what would be a typical trajectory around those events already. so if you look at where the market was on, you know, february 10th close, before president biden's speech on february 11th warning of, you know, imminent invasion, we were
10:07 am
sort of round numbers at 4500. which is kind of where we are at this morning the fed three weeks down, three weeks back up. 6 to 8% is down. and the market sort of pretty much work its way through that and so, you know, the main issue now is really basically the fed hiking cycle and what that does. we see first year fed rate hikes as associated with positive returns in the s&p it is solid, ten out of the 11 fed hiking cycles have seen the market up one year later >> okay. >> so i would say, yes, 50 basis points hikes, but relative to past, historic cycles, it is still relatively modest and so, i think i would stick with historical guidance saying things are okay. >> okay.
10:08 am
>> and we should be fine >> david, i'll put the same question to you. especially given the rally we have seen in equities in recent days, recent weeks is it for real >> yes, i think the market rally could continue but everybody needs to focus on the fact that interest rates will go higher. what jumped out at me in this report and i know steve was talked about 700,000 people came back in the labor force in the last two months and that is good but the problem is that 700,000 is more or less equal to the number of people who were -- who said they weren't staying out of the labor market because of pandemic so we had a big decline in people scared of the pandemic. there are still 900,000 not in the labor force because the pandemic and we'll get them back but the problem is there are now 5.3 million more job openings than unemployed workers and there is no way to close that gap. and we're going to undershoot the employment number. so i think we're looking at the labor market continuing to tighten more than the fed
10:09 am
expects and strong wage gains and i think the fed going to be aggressive on raising interest rates. the equity market could do okay but what will do well in a rapidly rising interest rate environment. >> gib all of the strength that david just mentioned, we just got ism slowing down and watching housing slowing down, getting more analyst calls about slowing and consumer electronics and demand is the phrase fed hiking into a slowdown a fair phrase >> it's definitely accurate to say. as, you know, pretty much everybody on the channel this morning has said that, you know, the fed is far, far behind the way i would put it is the fed is hiking at a much later stage than the economic cycle. and we don't have, you know, sort of a lot of experience with that and so, yes, i mean, i think that basically, you know, it would be the intent of rate
10:10 am
hikes is to slow growth, that will slow inflation and growth is already slowing, it is coming off the boil in terms of rates of growth as activity levels sort of getting back to trend levels it is even more challenging and so, you know, one of the key questions is will they be able to stick with sort of this very rapid pace when the ism like this morning are coming down, which they should be coming down but it is difficult to do things against, you know, a trajectory or a baseline because what is the baseline, what is the i pack and what is the noise. it is a challenge, yeah. >> david, we're talking about a blooming labor market and we're talking about booming inflation and aggressive potentially even more aggressive ramp up in terms of fed and other central banks tightening what do you make of the yield curve inversion? >> well, it is not as reliable as an indicator as you used to
10:11 am
be because you have massive central bank in the long and the yield curve but the basic message is correct which is that the economy is looking strong this year i get some of the weakness in manufactures the market numbers as of 9:45 were strong. but this is rotation more back into services any way as the pandemic fades and i think growth will be strong this year and much stronger than the labor market could take. the problem is going into 2023, momentum will slow an the economy could be weak and the real danger is the fed pushes things too far right now and by the end of the year we're looking at weakness in 2023. so the basic message of the yield curve of much slower growth is correct, the real question is does as much growth or do we have a recession in 2023 >> okay. gentlemen, thank you for kicking off the hour with us as we head to a quick break, here is a look at our road map for the rest of the hour including chinese tech stocks rallying baba, baidu all in the green
10:12 am
and the house is set to vote on bill to decriminalize cannabis finishing up a rough week of trading. >> and fortress energy offering to build the first lng port facility wes edens will join us live here at post 9. we have more "squawk on the street" ahead, so don't go anywhere ilo your data. and start crunching a year's worth of transactions against thousands of compliance controls with the help of ai. now you're making smarter decisions faster. operating costs are lower. and everyone from your auditors to your bankers feels like a million bucks. let's create smarter ways of putting your data to work. ibm. let's create
10:13 am
10:14 am
10:15 am
coming up, we'll talk prices with ceo wes edens what a week it has been for the energy complex as we have oil below the 50-day for the first time since january and we'll talk chip stocks as well, qualcomm and amd on base for their worse week in more than a month as jp morgan takes qualcomm off the focus lt. 'rba ia nuiswee ckn mite yeah...uhhh... doug? [children laughing] sorry about that. umm...what...it's uhh... you alright? [loud exhale] [ding] never settle with power e*trade. it has powerful, easy-to-use tools to help you find opportunities, 24/7 support when you need answers, plus some of the lowest options in futures contract prices around. [ding] get e*trade and start trading today.
10:16 am
10:17 am
10:18 am
time for our etf spotlight looking at chinese tech today. ticker k-web rallying on this report that beijing is preparing to allow u.s. regulators to see the auto reports of most chinese companies listed in new york names like baba, and jd.com and baidu surging on the news. talked about it with cramer this morning. being seen as a big concession from some chinese regulators. >> we've seen incredible moves in both directions in many of these names for weeks now. shares of new fort res energy popping this morning the company proposed to build the first off shore lng export
10:19 am
facility in as little as a year. as a potential solution to russian gas dependence on europe on the heels of president biden announcement to release 1 million barrels of oil per day starting in may from the u.s. reserves joining us now, wes edens founder and ceo and fortress investment group co-founder and co-coo and the co-owner the milwaukee bucks and aston villa. so let's talk about the fast lng project. you just filed applications yid. it is off the coast of louisiana and the fact that you could get it up in 12 months traditional facilities take four years or longer. how are you able to do it? >> we're using some of the new and some of the existing so the infrastructure to liquify is exactly the same. so it is a technology that has been used and proven what we're doing is we're putting it on to existing marine infrastructure, jack up rigs and
10:20 am
fixed platforms off the coast and then the real benefit is we could use ships as our storage so we build these liquifiers, building the tanks is the expensive complicated and environmentally most sensitive part by using a repurposing existing marine infrastructure ships, you cut down the time and expense dramatically and that is the secret. >> so this just comes days after the u.s. and eu announced the goal just a week ago for the u.s. to supply 15 billion cubic meters of additional natural gas to the e.u. market with hopes to ramp up in the years after that. have you spoken to hevation about these plans. >> i was down in washington, d.c. all day yesterday, second time in a couple of weeks because they're very active in the application process and i saw lawmakers to talk about exactly this fortunately, wee green lighted this project about a year and a half ago the only commodity you can buy is time and so we did it because we saw there was a systemic shortage in gas around the world. there is the right thing to do and it was a very good idea, a year and a half ago.
10:21 am
it looks like a terrific idea right now with all of this happening in russia and ukraine, european dependence on russia for gas, this is now a real, real solution to the short-term. >> when we talk about the systemic shortage, is there enough natural gas being produced here in the u.s. to go through that facility? >> 100%. so we have an abundance of resources here we're blessed in the u.s. and we have the infrastructure and we have the people to actually do all of these things. i think that actually it is a real moment in time geopolitically where the u.s. could supply what we need today but what needed around the world in the very short-term so it is a really exciting prospect for us and to be part of that in the short-term is a big thing for the company. >> the last time we spoke was back in act october. you warned about the energy crisis and you talked about quote/unquote the messy transition to renewables as well and that is well before russia invades ukraine. where do you see prices going in general from here. >> the prices spiked last
10:22 am
summer, in october and then with the russian crisis it went up even higher. i think it is less the question of price and more the duration of the problem because when we think about it, if russia supplies 40% of the gas to europe, that is about 150 bcm, roughly 100 million tons of production to replace all of that there is only 400 million tons in the world and that is already spoken for so this is going to take a long time to really sort out. and it does get back to this question about this energy transition and i come to believe that the messaging on this, the narrative is a false narrative we talk about replacing dispatchable power with nondispatchable renewables an that is a fairy tale and it doesn't work that way and you're seeing that play out it doesn't mean it shouldn't be a big part of the future but we should replace it in the loepg which is dispatchable power, nuclear power, those are the long-term solutions and if you're an optimist you hope that something like this is focusing
10:23 am
more on that in the near term. >> of course the hydrogen piece of the puzzle is what you're working on long-term at new fortress so it raises the question, what does all this mean for new fortress energy which is coming of what steve called the best quarter in the company's history. >> yeah, we built all of this infrastructure and it takes time for it to turn into cash flows so if you look back, we made about $30 million in ebidta two years and $600 million last year and we projected this year a billion dollars plus with the new developments it could be multiples of that so kind of slowly and then all at once, as it really turned out. but we view ourselves as being the leading company in the world and in this energy transition thing. we think that that is a -- the moral ground in terms of trying to play a role in the energy problems in the world and it also happens to be a very lucrative one. so hopefully this is the beginning of a bright future for us. >> so we're having this conversation what does it do to the inflation picture globally and central bank tightening and risk of
10:24 am
recession. you're involved in so many different types of projects around the world how do you see it? >> yeah, i think that unfortunately it is not a very good pike for the inflation. because you have commodities inflation across the board and when you look at natural gas, that is obviously gone up a lot. the first derivative is the food part because we have ammonia produced by natural gas and that is fertilizer and the case is that the people least able to pay for things are often asked to so i think food inflation is on the way. wage inflation is hard to take out. so it is a challenging future and i think that the answer to it has to be focused on growth and entrepreneurship and really growth around the world. that is how you get out of these things but there is not many pages in the playbook when it comes to sorting out inflation, what does this mean for markets, both public and private >> i don't know. i'm not in the business of that. i think higher interest rates are on the horizon and the good jobs report this morning, i'm optimistic that we'll have a decent period here
10:25 am
in the short-term. but long-term you need growth to get through the inflation picture for sure >> thank you so much for joining us good to have you here on set. >> thank you coming up after the break. don't miss goldman's chief commit imjan hatusment and the global economy but the u.s. as dohas gone red, 44 points to the down side we're back in a minute this thing, it's making me get an ice bath again. what do you mean? these straps are mind-blowing! they collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery. and you are? i'm an investor...in invesco qqq, a fund that gives me access to... nasdaq 100 innovations like... wearable training optimization tech. uh, how long are you... i'm done. i'm okay. the pursuit is on.
10:26 am
the pursuit of outperformance at pgim. with deep expertise to outthink across multiple asset classes, actively managing investments in the world's public and private markets. outscale, with the resources to serve 1,500 clients in 52 countries. and outlast, with long-term conviction that looks beyond today's volatility. join the pursuit of outperformance at pgim. the investment management business of prudential.
10:27 am
welcome back to squawk on the street jobs and the impact of inflation in focus this morning as employers both public and private continue to hire back workers at a very quick pace ace hardware just announcing plans to hire more than 40,000 new workers by the end of spring and here to discuss that move and more, ceo john van heisen. great to have you back on the show i'll start on this jobs friday
10:28 am
as able to bring people in and employees in and what is it going to take to recruit them. >> yeah, well good morning, morgan and thanks for having us we're in a position of hiring and a lot of it. it is primarily driven by three things for us. one is we've a lot more new stores we opened about 206 new stores globally last year 183 were in the u.s. and we opened about 115 within our ace handyman services business and that creates more jobs we'll doing about the same again this year so we're in need of managers, back and office and what we call red vested heroes throughout the enterprise. and the second reason is growth. ace is the 42% larger company than it was just two years ago and candidly it almost feels unseemly to be talking about all of this growth knowing about what is going on around the world and many small businesses still really suffering to try to get back on their feet but that is the environment we're in
10:29 am
and then for us we're entering peak spring is our peak so we have a lot of hiring to do and it is a high class problem. >> in terms of the growth, which i know really kind of turbo charged during the pandemic with people staying at home and the focus on home improvement. how sustainable is it at these levels >> we feel that a good portion of this growth, which as you said was certainly induced by covid, we were declared an essential retailer and that is a meaningful driver of the 42% growth but chance favors the prepared mind and our stores were prepared and so as we sit here today, we're actually up double-digit again. and that is on top of the 42% two year tack growth so we think a lot will stick some of that is driven by inflation. that is not the way to grow. but it does artificially make the numbers for many retailers and durable goods look better and we're in that camp so i think that the desire to preserve and protect one largest asset, their home, is
10:30 am
sustainable over the long run. >> i wonder, we've been asking this last quarter some retailers in which categories they're beginning to feel a pushback from consumer on pricing i wonder, are there certain buckets when you're beginning to see real resistance. >> small resistance, carl. but feeling it for sure. and i'll quantify. last year our average ticket in our retail stores again, we have 5600 of them, they are locally owned and operated and they enjoyed a 10% increase in each ticket but 4.2% was inflation driven and in the fourth quarter as we enter november and december, that started to knock on the 8% number and that is carried through. that certainly impacts more discretionary oriented purchases, but thankfully for our business we have a lot of it driven by home preservation and whether the economy is good or bad or the stock market is up or
10:31 am
down there is a need to preserve one's largest asset. further, a lot of what is driving our growth, paint, power, barbecue, when folks want to buckle down, they tend to stay home and they do those things but higher ticket is being negatively impacted by the inflation for sure >> so then i guess just to dig a little deeper on that. what is your sense of the health consumer as this year progresses >> there is no question that the least among us get hurt the most by inflation and that is a horrible thing and unfortunately that impacts people in meaningful ways. so, with respect to inflation and our business, i think we are generally insolated from the adverse effects of that because again preserving and protecting one's home is not generally discretionary but the higher ticket items will be impacted as consumers have to buckle up a little bit because they're going to have the gas and they have to pay
10:32 am
rent and they have to get their groceries. and all of that is up meaningfully that certainly impacts the consumer and monetary and fiscal stimulus is decreasing and that is an adverse effect as well >> john van heisen, thanks for joining us today ceo of ace hardware. let's get a news update, frank holland has that for us. >> good morning. here is what is happening at this hour. talks are back on between russia and ukrainian negotiators and the red cross is headed to mariupol to attempt to evacuate citizens and russian officials are asking or are accused ukraine of attacking a fuel depot in russia federal regulators are raising fuel economy requirements for new vehicles they will have to average 40 miles per gallon in 2026 that is up from 24 for the current model year and soerns are closing in on a deal to pass a smaller covid emergency aid package and cut new funds to $10 billion from the 15.6 originally requested.
10:33 am
and a landmark apology from pope francis. he is begging forgiveness from indigenous people for the deplorable abuses suffered in canada's church run schools. more than 150,000 native children were isolated from their culture. he hoped to deliver the apology in person in july. that is the very latest. back over to you. >> that jobs number today showing 431 jobs added for the month of march despite the recent recession fears. nec director brian deese was on it us earlier to discuss. >> what we're seeing is a strong labor market, a strong u.s. consumer with household balance sheets continuing to be in healthy shape. and the u.s. actually quite uniquely positioned globally to drive in economic recovery through a number of shocks
10:34 am
>> let's get to goldman sachs janhatus >> hello. >> you've written quite a bit later about recession risk not being a 2022 story if that is fair, versus 2023 perhaps and beyond does today's print sort of radfy that view? >> i think it does i mean, i would certainly agree with brian deese that we have a lot of momentum in tlabor market the risk is that it is going to be too much of a good thing because we're seeing an overheating of the labor market. and in particular if you focus on the number of open positions relative to the number of unemployed workers, there is a gap of more than 5 million between those two numbers and that sort of says labor demand is way ahead of labor supply at
10:35 am
this point >> when we look at labor force participation, are you encouraged by three straight months to the upside and does that mean that wage pressures in the labor market at least are beginning to top out >> well, i am encouraged that we've seen faster movement in labor force participation. but we've seen even faster increases in labor demand and so i think that the gap is now significantly larger than it was a few months ago despite that return into the work force, as far as wages are concerned, the last three months were a little bit slower than the prior three or six months. so i think that is somewhat encouraging. there were probably some special fak -- fakers in 2021 in the second half, including the extended unemployment benefits that have now gone away.
10:36 am
but wages are still growing faster than what we can sustain in the long-term at a 2% inflation rate in my judgment so i think that it does underscore that the general reserve needs to tighten monetary policy and slow things down here. >> i wan to dig into that a little bit more. but quickly, jan, there are some areas of the labor market where unemployment rate is trending significantly higher than in a national average disabilities is a great example. 8% is the unemployment rate there. are we going to see more groups come into or get hired within the work force now that we are seeing this blistering pace and this need for jobs >> i would expect that, yes. i mean, typically what happens is that more disadvantaged groups are lagged behind in terms of seeing their job opportunities improve and once
10:37 am
you get to very tight levels, then the opportunity there improves and that is a great thing. that is a great thing. and we are seeing the job opportunities that we're now seeing, that is very good in the short-term the question is just is it sustainable in an environment where the fed wants ultimately to return to 2% inflation. >> yeah. so, are we going to see a front-loaded fed are we going to see bigger rate increases over the next couple of months and how does that play out in terms of when you think about recession risk going into 2023, how does that play out >> well, i think that the next couple of meetings, i would expect 50 basis point hikes from the fed. and beyond that the june meeting, we have a return to 25 basis point moves. but frankly it is very possible that the 50 basis point hikes
10:38 am
are going to be extended and i think that is going to depend on the data, the extent to which growth decelerated through the year we do think it is going to decelerate and the sooner we see a slowdown through more of a trend pace and in both gdp growth and employment growth, the better the prospects. i think that we'll avoid a recession. we don't have a recession as our baseline forecast for 2023 we've said that it is maybe as high as one in three or so and i think if that is a significant risk relative to the average risk that you see through the cycle, but i think it is still avoidable. but we do need to see a deceleration >> finally, jan, as you look to history and how famous the
10:39 am
street has been for overestimating the degree to which a fed could be hawkish, we've had this discussion in -- in the recent years, how does that weigh on you when building your base case why does it time feel so different? >> well, i think we've seen just much stronger recovery in labor demand if you're looking at what the cycle charts look like post-2008 and post-2020 in terms of the speed with which employment has come back, we're back to the levels that we had on labor demand in february 2020 within just about two years i mean, there was nothing like that in the map of the great recession as it was called then. but it took many years to get
10:40 am
back to the sort of levels that we have in 2006 and 2007 and i think that is the most important driver of inflationary pressure and the most important driver ultimately of monetary policy decisions >> yeah. difficult to look in the past for an environment that had all of the ingredients of the one we're in right now for sure. jan, thank you so much good to see you. talk soon, i hope. >> thank you still to come, we'll talk pot stocks finishing up a rough week in the red with the house set to vote on a bill to decriminalize marijuana. we're back in three.
10:41 am
10:42 am
(vo) your home internet is going ultra! introducing verizon 5g home. see ya cable! with 5g home you get blazing fast 5g ultra wideband internet to power your entire home. (mom) i'm ordering pizza! (vo) yeah, i could eat. (mom) what's our new address? (vo) i dunno. set it up yourself in just minutes, no drama. and look here, 5g home is 50% off with your unlimited plan, just 25 bucks a month, no contracts, no hidden fees... what do you say to that?! (mom) shhh... (vo) right, you enjoy that internet. verizon is going ultra, with home internet at our best price. i didn't know my genetic report could tell me i was prone to harmful blood clots. i travel a ton, so this info was kind of life changing. maybe even lifesaving.
10:43 am
♪do you know what the future holds?♪ as we head to break, the s&p is basically the flat line right now. 4529 on pace for a weekly loss. nonetheless, these are the top performers for the s&p this week nielson, up 22% on the takeover news e pam systems and dex come and
10:44 am
cruise lines like norwegian and royal caribbean each up 8%9%, on the reversal of cdc guidance. stay with us we'll be right back. i am here because they revolutionized immunotherapy. i am here because they saw how cancer adapts to different oxygen levels and starved it. i am here because they switched off egfr gene mutation and stopped the growth of tumor cells. there's a place that's making one advanced cancer discovery after another for 75 years. i am here... i am here.... because of dana-farber. what we do here changes lives everywhere. i am here.
10:45 am
10:46 am
♪♪ i'm using xfinity xfi's powerful, reliable connection to stream “conference calls” on every one of these devices. i'm “filing my taxes” early. “wedding planning.” we're streaming uh... “seminars.” are your vows gonna make me cry? yes! babe. (chuckles) look at that! another write off. that's a foul! what kind of call is that!? definitely “not” watching basketball. not us. i wouldn't do that. welcome back to "squawk on the street." we're getting breaking auto sales numbers let's get to phil
10:47 am
lebeau with the latest. >> let's start with general motors report aig decline of 20.1% in q1 sales, in line with the estimate of edmonds of 20% we know the story here it is a lack of chips which means a lack of production and lack of supply, that is limiting sales. but gm does say that it is seeing some incremental improvements in terms of chip supply and then toyota with a decline of 14.7% a little bit better than the edmond's estimate. and the story with toyota and the other automakers in terms of a lack of chips. 23.3% of the vehicles they sold in q1, carl, we are hybrids or plug-in hybrids. so that is a strength that they continue to rely upon. back to you. >> a lot of numbers out today. phil, thank you. let's turn our focus to the hill the house opening up discussions this morning to decriminalize cannabis use at the federal level. speaker pelosi voiced her
10:48 am
support for that bill expected to pass the house today. take a listen. >> i'm all for it. i -- look, there are so many discussions that have gone on over the -- over the years about the use of marijuana or cannabis or whatever. the fact is, it exists, it is being used, we've got to address how it is treated legally. and not in a way that mistreats people on the lower income scale. >> joining us to discuss the impact on the cannabis industry, cura leaf's boris jordan good to see you. >> it is good to be here. >> it is great to talk to you. stocks have moved on the promise of this, but everybody said that dead end in the senate how is the industry thinking about it >> well i think this time it is a little bit different so that this particular moore acthat passed the house i think
10:49 am
almost five or six times an this is really a message as everyone knows senator schumer an booker andwide widen will launch their cra bill on the national day of cannabis or the week of 4-20 so this is a house bill to push them along because the senate is a road block but they are issuing this bill on 4/20 and i think we'll have robust debate in the senate and the house going into the midterms and we're hopeful that there be a compromise, like something on safe plaus to address the real problems in the cannabis industry and they are becoming real, and people are getting murdered in marijuana shops in washington state last week and incalifornia, we're having rea problems we need banking and we need to be able to address the issue of the fact that the minority communities that are trying to get involved in this business can't do it. those that have been harmed
10:50 am
because they can't even open bank accounts. >> you might as well hang a sign out of the door saying we have a lot of cash in this building it does make you a targ. would you be happy to settle for the safe act for banking parameters at the expense of a full blown moore act, let's say. >> everybody kit and coo done but i have to be a realest first, i think it will be banking and social equity issues that need to be resolved like expungement, the hope act of alc i'm supportive of that i think the next up will be taxes. the 280 e tax burden apffecting the tax industry 1and scheduling and e commerce i don't think the senate is ready to do the whole thing. i think there will be compromise and something like state plus is probably the first step that will address the issues in the minority communities,
10:51 am
expungement of criminal cases as well as banking. i think those are two things we should try to get past this year men look to further legislation and future years. >> so boris, what would that actually mean if this is how this plays out, what does it mean for the business you have here in the business you have in the u.s. >> i think for all of us, cure leaf, all of us, the cost of capital would drop the safety of employees in our stores would be much higher. we're very concerned we have armed guards that never helps because that creates potential conflicts but we have armed guards in our stores we have to hire armored cars to drive our products and our cash to and from the banks every single day everybody knows the roots of those things it's become a real problem we're having in california our trucks delivering products of being abducted regularly by criminals who are trying to steal the cannabis out of these or the cash out of these trucks.
10:52 am
and so we're having a problem in keeping our employees safe now, thank god we haven't had a problem with safety yet but a lot of other companies with the safety of our employees will help get access to banking so they can let a single social justice program has worked in illinois, new york, new jersey, anywhere and it hasn't worked for one reason minority and entrepreneurs, minority entrepreneurs can't open bank accounts everybody talks about helping these communities but nobody is doing anything we need safe banking and we need the hope act to expunge these criminal charges that have been laid against the minority communities in the united states so we need these two things and i'm hoping we can get them this year. >> rhetoric versus action. compelling
10:53 am
boris, i'll ask you another question we talked about in the past we see at some point decriminalization on a federal level and even legalization here in the u.s what does that mean in the competitive landscape? will you see more canadian producers come in the market in a more meaningful way? we seen deals in anticipation of that. >> i think that really is only going to come with let's be honest, interstate commerce. that's furthest away clearly, we're not concerned if we're the largest operator in the world, we're operating in europe and eight countries and 23 states, in the united states. we welcome competition we think it leads to better products, better services, better customer service but i don't think that that's going to happen any time soon i think that's a ways away because you have to get the whole bill, the whole moore act or the act and the state is trying to protect it at the
10:54 am
state level. that's one of the problems we're facing this is the process over the five to ten year period where we'll start with at least legitimizing banking and expunging criminal cases and then move on with taxes and everything else that needs to be done in the industry. >> we'll keep an eye on it debate happening now in the house. boris, good to talk to you again. appreciate it. >> thank you for having me. disney winning over some on wall street and where does the mike go from here? it is down the last couple days. we'll talk with michael nathanson in the next hour don't go away. power e*trade gives you an award-winning mobile app with powerful, easy-to-use tools, and interactive charts to give you an edge,
10:55 am
24/7 support when you need it the most. plus, zero-dollar commissions for online u.s. listed stocks. [ding] get e*trade and start trading today. never settle with power e*trade. it has powerful, easy-to-use tools to help you find opportunities, 24/7 support when you need answers, plus some of the lowest options in futures contracts prices around. [ding] get e*trade and start trading today.
10:56 am
431,000 jobs nice sound to it we also learned that in january and february our economy created 100,000 more jobs than we previously had thought that means that over the last three months, the economy created more than a half million, more than 500,000 jobs a month. over the course of my presidency, our recovery has created 7.9 million jobs more jobs created over the first
10:57 am
14 months of any presidency in any term ever and that's striking, but what's even more striking is this, in march the unemployment rate fell to 3.6% down from 4.6% when i took office 15 months ago the fastest decline in unemployment to start a president 's term ever recorded. there are only three months in the last 50 years when the unemployment rate in america is lower than now and that means is clear, what is very clear, americaens are back to work and that's good news for millions of families who have a little more breathing room and the dignity that comes from earning a paycheck just the dignity of having a job. and more and more americans get jobs as they do it will help ease the supply pressures we've seen and that's good news for fighting inflation it's good news for our economy and means our economy has gone from being on the mend to being
10:58 am
on the move. you know, the american people, i think, they are beginning to understand that the american rescue plan, there is no reason why they should know the names of the pieces of legislation that got passed but the american rescue plan, we got americans vaccinated, schools opened and businesses humming leading financial firm moody's estimated because of the rescue plan 4 million more american jobs were created and unemployment is 2% lower than it would have been had we failed to move that legislation. thanks to our infrastructure law, we have more than 4,000 projects getting started this year, 4,000 in every single state in america, total of 4,000 and all 50 states rebuilding america. we're building a recovery worthy of american workers, strong and resilient and we're going to be able to overcome the head winds of delta, omicron and even more
10:59 am
in europe. our policies are working and we're getting results for the american people which is what it's all about to state the obvious. record job creation. record unemployment declines record wage gains and by the way, jobs and unemployment are not just another statistic, they go directly to the core of what the economy represents the ability for hard working americans to live with dignity, support their families and build a better life for their children people are making more money they're finding better jobs and after decades of being mistreated and paid too little, more and more american workers have real power to get better wages and to do what's best for themselves and their family. some people see that as a problem. we've had this discussion in the past i don't. i see it as long over due. so when you hear these numbers, they're not statistics it's a statement of the type of economy we're fighting for an economy as i've been saying from the beginning built from the bottom out and middle out,
11:00 am
not from the top down. when we do it that way, everybody does well. everybody wins even though we created a record number of jobs, we know, i know that this job is not finished. we need to do more to get prices under control. putin's invasion of ukraine has driven up gas prices and food prices all over the world. to help deal with that, yesterday, i authorized the release of 1 million barrels per day for the next six months from our strategic petroleum reserve. acknowledged this by far is the largest release of the reserve in history it is a wartime bridge is the way i look at it to increase our oil supply as we work with our oil u.s. oil producers to ramp up their production to get us through this period. i've coordinated this release with partners and allies around the world. this morning, over 30 countries from across the world convened in an extraordinary meeting an

63 Views

info Stream Only

Uploaded by TV Archive on