10year yield at 4. 47. A lot of questions where the movement will be next and if we have seen the height of rates or not. Thats been a big question part of it weighing on the broader markets yesterday. Meanwhile, boeings slide after the cfo spoke yesterday and said the company would burn through cash this year the delivery of planes will not increase from the First Quarter to the Second Quarter as they deal with tproduction challenge. The price of ethereum pulling back after the runup this week. The si. E. C. Approved the rule change to pave the way for etfs that buy and hold ether. Specifically, the s. E. C. Order approves applications from various exchange to list eight ether funds. The order does not approve the funds or set a date for the etfs to start trading issuers are awaiting approval from the s. E. C. For the funds and it is unclear how long the process will take. This has been the week this was a buy the rumor and maybe not sell the news. Thats most of it ethereum is down 2 . Look at bitcoin over this week it has been pretty strong over the week the year to date is up 58 this morning, sitting at 67,000. We had been as high as 71,000 in the last several days. In the meantime, lets talk about paris, if we could, for judgment a moment. You sound wistful yesterday n, in paris, elon musk speaking out. He doesnt support the announcement of the tariffs on chinesemade electric vehicles. Neither tesla nor i asked for the tariffs. In fact, i was surprised when they were announced. You know, tesla competes quite well in the market in china with no tariffs and no differential support. So, in general, im in favor of no tariffs im also in favor of no tax incentives for evs, but provided there are also the tax inc incentives for oil and gas must also be eliminated im in favor of no tariffs and no incentives for electric vehicles or for oil and gas. A little complicated. He is now in a position where the truth is he doesnt need the tariffs or san berubsubsidies. There was a time when he a advocated for them the whole industry needed them there was this whole fight over the an idea subsidies given to gm and ford and others that would set up that tesla would not be eligible for them i agree with the take generally. Not having subsidies out there or not having tariffs is the more accommodative way of looking at things. Neither candidate running for office will strip away all tariffs. The other piece of this, if you remember, he made a comment two months ago and we can grab the tape, where he said effectively that if you dont have tariffs on vehicles in the chinese evs into the u. S. He wasnt making a statement about his vehicles he said these are better cars and they are making them more cheaply and the entire industry in the u. S. Would be completely ruined this was also before he went to china he just went to china and had a good meeting there china is a big market for him. I do think he probably is speaking openly when he says it. I believe he believes what he is saying. Im not discounting what he is saying it is an evolving conversation the bloomberg reporting that musks spacex is in talks with sealing shares the tender offer would allow shares being sold for 108 to 110 apiece. Musk said they had not need for Additional Capital we do liquidity rounds every six months for employees and investors. I dont think this would impact, per se, but folks like ron barron of barron funds and other publicly traded funds have an interest in spacex finally, musks a. I. Start up is seeking so raise 6 billion in the funding backed by horowitz it includes commitments from capital and Tribe Capital and value the startup at 18 billion. This is a long gentlestating situation where he was looking for the money and go online and say he is not looking for the money. It appears we are closer to that the one other piece of it is on the xai side and if folks invested in x, may get a piece of xai that might be, because they are training on stuff thats on twitter, whether that actually might be a vehicle for them to get their money back if not more we all talked about the valuation. Rather than paying them to be trained on it, you get a cut you get a slice of that company and if you thought to yourself, okay we paid 44 billion for the company. Today, the company is worth 50 of that . Less than 50 . This may be the vehicle, it there is a vehicle to get you there. Being on that train without giving a value. If you believe xai is worth more than 1 billion dollars . It is a way to recognize the value that they may have lost. In the meantime, a landmark deal that could change college athletics. The ncaa and the power five have agreed to Pay College Athletes as part of the antitrust settlement that includes 2 2. 7 billion in back pay dating back to 2016 and p paves the way to pay up to 20 million a year to players. The deal still has to be approved by the federal judge overseeing the case. Revenue sharing could start as soon as the fall of 2025 obviously, this is sparking difficult decisions for some schools about how to value sports and teams that dont generate revenue and how to split that money it may get more complicated before it gets calmer. We will talk much more about this with joe moglia the former Td Ameritrade ceo. The burger wars are heating up burger king offering a 5 meal deal with the sandwich and nuggets and fries and a drink. It matches the offering from mcdonalds the burger king promotion is expected to launch before the mcdonalds promotion cocacola kicked in to make it more appealing to the franchisees. Thats an interesting relationship. Right we have more on squawk box. Big lthree hours. When we come back, the inflation debate at fed. We will talk about the renewed concerns of the prices and how it impacts rates. Later, nvidias ceo jumping three spots yesterday on the billionaires list. Squawk box returns from times square after ts. Hi with gold and copper prices pushing towards all time highs, us gold corp. Offers investors leverage to both gold and copper at its project, and mining friendly wyoming. U. S. Gold corp has a reserve of almost 1. 5 million ounces of gold equivalents. Permits to mine zero debt with only 10. 73 million shares outstanding and a portfolio of world class american Strategic Metals assets. U. S. Gold corp, join the golden age. At pgim, finding opportunity in fixed income today, helps secure tomorrow. Our timetested fixed income suite, backed by over 145 years of risk experience, helps investors meet their goals. Pgim investments. Shaping tomorrow today. Norman, bad news. Pgim investments. I never graduated from med school. What . But the good news is. Xfinity mobile just got even better now, you can automatically connect to wifi speeds up to a gig on the go. Plus, buy one unlimited line and get one free for a year. I gotta get this deal. I know. Faster wifi and savings . I dont want to miss that. Thats amazing doc. Mobile savings are calling. Visit xfinitymobile. Com to learn more. Doc . Welcome back to squawk box on this friday morning for insight on the feds fight on inflation, lets bring in the fixed forecast portfolio manager. Good morning. It is the front page of the ft. Janet yellen saying the u. S. Is open to further rate rises to quell inflation. Is this going to get better . I think it is Getting Better. It Getting Better slowly i look at the inflation numbers. They declined fast at the end of last year. That progress stalled in the First Quarter. We feel strongly you shouldnt extrapolate from that. If you see the last inflation report, that did slow i dont k k knowdown better than the. 4 in the First Quarter. The other thing i would highlight is if you look how concentrated that number is, 3. 6 we are seeing in core cpi and. 3. 3 of that is coming from shelter and cars they are lagging home prices have stalled and that is the High Frequency press measures of rents are slowing down it is happening slowly the fed is trying to be patient. I think the market got a little too nervous around the minutes after that meeting, we had a payroll report that suggested growth moderation. We had an inflation number showing it i think the market is getting nervous around fed rate cuts its going to happen by the end of the year where they will be on to cutting rates because they will look at the an come lay tan come laytive process you have your boss, jamie dimon, talking bengal the comments on air and you have firms like Morgan Stanley which thinks the whole thing will roll over in the crazy way you have seen who is right i think the market is in the soft landing. Your boss or not . Your boss or Morgan Stanley when jamie thinks about the entire distribution of outcomes, he has to look at the outcome where if inflation doesnt slowdown, what happens i think the soft landing is predicated on the fed starting to ease off. It comes down to the Monetary Policy being restrictive this is when we look to the fed minutes and the fed is debating it it is likely it is not restrict restrictive. The tricky part is it is restrictive for some parts of the economy and not restrictive for other parts. There was a good piece by ben emons yesterday laying this out which was a mic microcosm into s the fed minutes reflected that to some extent there are area where is theres a whole lot of demand and lot of money spent. They cant cut rates right now because you will see inflation which continues to push higher by Big Tech Companies, but government, too. You have the areas if they dont get lower rates will be in trouble. Commercial real estate and some regional banks which have gotten into trouble the fed is dealing with the tale of two cities and which side do you Pay Attention to first when you look at the starting point and 5. 5 on the fund rate or 10year at 4. 5, you can take your foot off the pedal. The market is pricing in 4 . Thats the point where you start to ease off. There are cracks they dont want the cracks to become recession. How much are the equity markets keying off what is happening with the fed we used to be fed crazy. Now were nvidia crazy i think the part of the equity market has to look at fundamentals when you have high cost of capital, you have to look at the Business Model and Balance Sheet t. Is right for the free market to look at that. If tInterest Rates dont come down, do they pull back . We are seeing some signs of that does Consumer Confidence slow down that is a good thing. It is more of the soft landing i think so slowing is good, but too much slowing and it starts to become the vicious cycle. We havent seen the a. I. Productivity boom you are talking about. If that is the case, it helps the inflation story. We have seen the significant labor supply in the last couple years. You are getting 200,000 payroll growth per month the fed can start to cut rates slowly they can be patient. You are looking at wages if wages are decelerating, it is hard to see how companies have pricing power. Priya, thank you. When we come back, nvidias ceo jumping three spots on the list of the worlds richest people yesterday this is Pretty Amazing and watching what he has done. He owns 3 of the company. Details next. Later, we will talk to two social Media Influencers who are working to use their platform for good to advocate for people with special needs i love these guys. I follow them myself nick and gabe are going to be joining us later this hour theyre amazing. I think you want to learn more about their story. We will talk about the positive sides of siamea. Ocl di squawk box will be right back. You know s brilliant . Boring. Think about it. Boring is the unsung catalyst for bold. What straps bold to a rocket and hurtles it into space . Boring does. Boring makes vacations happen, early retirements possible, and startups start up. Because its smart, dependable, and steady. All words you want from your bank. For nearly 160 years, pnc bank has been brilliantly boring so you can be happily fulfilled. Which is pretty unboring if you think about it. Time for the executive edge. The surge in nvidia shares is cat puting jensen huang to the third richest person in the world. He is richer than the walmart founding family. Huang cofounded nvidia in 1993. He has served as the ceo since and has built an amazing company. He owns a 3. 5 stake in nvidia. The number of 401 k accounts at fidelity with balances of 1 b 1 million or is up 43 since march of 2023. The average balance rose to 126,000 that is skewed by large account balances the median average is 29,000. I read a fascinating article with the great mistake in our country. Why larry fink has talked about it he is an advocate for 401 k when you look at the Retirement Savings today compared to 20 or 30 years ago from pensions we cant afford to do pensions he said we cant afford to do pension funds, but it left a spiraling problem of retirees. 401 k is the solution to part of that the companies the question is if there is a different way to do it and if you can go back in time i dont know send the hate my way i remember losing a couple of my pensions over time where they got rid of them. The Companies Say we cannot have this openended. People are living longer they were worn out. The conundrum is employees are not investing early enough some companies are not matching enough we will have a Retirement Crisis in the country you are seeing it play out there are a lot of folks watching right now who dont have all of the money they thought they would have when they retire. One thing that is great a pat pra paternalistic way when they made it the most complicated way to opt out of it. That was a great thing for me. I would not have done it that way when i was that young. There are places like australia where you are forced into it. You are in a forced savings program. Thatsing so something larryfins advocated for. As we go to break, dominic chu will have the latest as we head to break, he eris a look at the s p 500 winners and losers announcer executive edge is sponsored by at t business next level moments need the next level network. Ed an id its a pillow with a speaker in it thats right craig. A team thats highly competent. Im just here for the internets. At t its superfast. Reliable. You locked us out . arrggghh ahhhh solutionoriented. [jenna screams] and most importantly. Is the internet out . Dont worry, we have at t internet backup. The next level network. I sold a pillow good morning welcome back to squawk box here on cnbc we are live at the Nasdaq Market site in times square you are seeing the dow up 32 the s p 5500 looking to open 5 points higher. In the meantime, how do the homeowners fit into the economy . We have dominic chu with the sectornomics they are part of the particular sector in consumer discretion we know they have been on a rocket run with the shortage ofy if you look at the ticker itb it is up 40 in the last year much of the housing picture is correlated with the idea of Interest Rates and where they are and Mortgage Rates cnbc crunched the numbers of the correlation with the particular etf, Home Construction etf and one etf that tracks the seventoten year. Things are more correlated to what happens with Interest Rates. As the value of bonds goes up and Interest Rates go down, we do tend to see the value of Home Construction etfs go higher. The notable part on the chart, we are at the highest correlation, trading relationship with the housing etfs and longertomedium term bond etfs. As for the stocks doing well in the sfpan, look at the names lennar and dr horton which have done really well if the rates picture is key to the housing trade Going Forward and inventory is scarce, Home Builders could have room to run. It is part of the consumer disc discretionary picture. We talk about the names in the retail space with the tapestry and ralph lauren, but Housing Construction is part of the picture. Back to you. Dom, thank you for that have a great weekend if we dont see you again. We will see you ill see you at the top of the hour i can wish you a great weekend later. We are watching shares of gildan active wear the 12person board resigned immediately. Looking at eight board nominees from browning west restoring the former cfo who had been ousted by the board it is the second massive resignation in the board sroom gildan is a supplier for Companies Including amazon and target that is a wild drama it could be a soap open rachlt. When we come back, we will talk to two social Media Influencers working on the platform to bring positive change you can follow us on your favorite podcast app and listen rcongig bk. Wee mi rhtac announcer sectornomics is sponsored by sector spdr etfs. office chatter is it me. Or is work not working . At least, not the way it could work. Your people are buried in busy work. And you might be thinking. Can ai make it all work . Can ai help your people work. Without all the workarounds . Feel better. Make Customer Service work the way customers expect . That one. Make your old tech work with your new tech . Thank you. And todd here is wondering, can ai do all that. Now . No pressure. It can. On the servicenow platform, ai transforms your entire business. Your people work better, your customers are happier, and todd. Well. Hes practically euphoric. Practically. Because when your people work better, everything works better. So what are you waiting for . Lets get to work. Idris elba works here . Mmhmm. Ya, hes super nice. Welcome back we have something you dont often see on social media these days that is positivity while congress is addressing safety online, there are corners of the internet where good things are happening and thats one of the things we want to highlight. O