Down 70 points. The nasdaq was the standout yesterday adding 1. 6 to close at the alltime high. Apple was up 4 on reports that it could be overhauling the mac line. We have more coming up in a bit. To the treasury market, lets look at what is happening with yields. This is a wild week for yields. The tenyear yield is lower. Still well above 4. 5 . 4. 53 right now. The twoyear note at 4. 92 . Lets also look at crude oil prices. The prices are moving higher on rising tensions in the middle east. In fact, this morning, you see things up by 1 for wti. 86. 05 a barrel. We are waiting for the banks to report. Over the next hour, Jpmorgan Chase and wells fargo and the Worlds Largest money manager blackrock and citi will turn in the First Quarter report card. We will get reaction as soon as numbers are released. We need to get to leslie picker because black rock is out. Leslie. Bottom line in at 981. A 24 year over year. Top line is 4. 728 billion. Up 11 year over year. Aum at 10. 5 trillion. That was up 15 and beating estimates on aum as well thanks to total net inflows of 236 billion over the last few months. 76 billion of longterm net inflows. The top line was driven by the positive impact of average aum. That is based on the higher performance fees and operating margin coming in at 42 . That is up 180 basis points there. Larry fink saying in the release with markets full of complcompl, clients coming for advice and we see Growth Potential in infrastructure and retirement and whole portfolio slux portfo. The company issuing global debt. You can shares up 1. 6 . Guys. Leslie, thank you. Those are good numbers. I assume we will see good numbers from the last quarter. The question is what the numbers look like moving forward. Leslie, the big question for the other banks that are reporting today. The banks, what happens with higher Net Interest Income . If we are talking about rates higher for longer, that is a significant change in the outlook for what we can expect profit wise. It is a change and benefit of the bigger banks that have more asset sensitive Balance Sheets. Shorter Term Duration loans they lent out. They are repricing at a higher rate. Higher for longer benefits them. They dont have the competition that we have seen in the previous rate hiking cycle the thes to require them to pay out the depositors more. That has to do with the regionals we saw last year and the issues surrounding Community Banks and Regional Banks. People have kept their money in the bigger banks regardless on wha they pay on deposits. If the rates are higher for longer on the asset said. Especially how they change their guidance. Leslie, i appreciate it. We should mention that larry fink is going to be on cnbc later today on squawk on the street after the Conference Call with investors. Morgan stanley is expected to report results next week. That stock dipped on reports that the company is under investigation. The multiple federal regulators are probing morgan how it vets clients at the bank who are at risk of laundering money. S. E. C. , office of the comptroller of the treasury and other offices are looking into the bank and if it investigated the identities of prospective clients and the wealth. Shares are down. 04. Shares of globe life recovering after tumbling 50 yesterday. It is looking at a new short seller report from fuzzy panda research. You saw that . I want to make sure everybody got that. Alleging multiple instances of fraud at the company, including policies written for dead or fictitious people. We will watch that. The stock is back up close to 10 this morning. Obviously, a tumble after that report. A drop of 50 on the week. Ford motors is preparing to resume shipments of the all electric f150 lightning pickup truck. The automaker is working out quality issues. The price cuts come three months after the adjusted prices on the lightning which included increases on some models. Ford shares this morning are unchanged. For the year, the stock is up 3 . When we return this morning, apples mac line may be about to get an a. I. Upgrade. That stock is on the move. We have more on that story in just a little bit. Amazon is one of the names that also pushed the nasdaq to an alltime high. Amazon back to the alltime high levels. The last of the big five to do that. Powerful moves this week. Wl talk to the top analyst about that sector next. 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. Theres a place thats making one advanced Cancer Discovery after another for 75 years. I am here. I am here. Because of danafarber. What we do here changes lives everywhere. I am here. Hi, im jason and ive lost 202 pounds on golo. So when i first started golo, i was expecting to lose around 40 pounds and then i just kept losing weight, and moving and moving and moving in a better direction. With golo and release, youre gonna lose the weight. Youve got xfinity wifi at home. Take it on the go with Xfinity Mobile. Customers now get exclusive access to wifi speed up to a gig in millions of locations. Plus, buy one unlimited line and get one free. Thats like getting two unlimited lines for twenty dollars a month each for a year. So, ditch the other guys and switch today. Buy one line of unlimited, get one free for a year with Xfinity Mobile plus, save even more and get an eligible 5g phone on us visit xfinitymobile. Com today. Welcome back to squawk box. Apple shares are climbing yesterday. Jpmorgan chase analysts saying apple shares are getting attention from Hedge Fund Investors due to the stock slide. P a apple shares are down this month. And bloomberg reports that apple is overhauling the line of the macl line. The company touting the m3 chips and they could have the new chips later on this year. We will talk to steve kovach in the next hour about this. The magnificent seven doing the heavy lifting for tnasdaq. For more on the tech sector and internet stocks, we are joined by marc mahaney. Marc, the big stocks are picking up. Lets start with amazon. That is the best longterm call. It is our number one pick in the internet space. Why . We think we had an Inflection Point. We had aws growth acceleration and record high retail operating margins. I think in the shareholder letter yesterday and interview with andrew, we got a couple of data points to that. For the company, we will have record high Free Cash Flow margins this year. When you have that come together, you have more of a rerate in the stock. 25 times Free Cash Flow on the numbers next year with the 220 stock price. This could go 20 or 30 times Free Cash Flow at 40 . That is reasonable. You can get up to 2 250. I think amazon is still one of them which is a high quality asset. In terms of what we are seeing right now with a. I. And what that could mean for apple, the stock which has been under more pressure this year, what do you think when you check those things out . I dont cover apple. A. I. And generative a. I. Is the number one issue out there for tech companies. Generally i think it is a tailwind for Digital First tech companies. Most Internet Companies have been investing in a. I. For several years. If i just pivot back to amazon, this is a company that improves products and processes on the retail side and helps the ad targeting and ad creation. That was interesting that came out yesterday. On aws side, the gen a. I. Revolution will be on the cloud. Somebody needs to store it and compute it. Aws is hard to see anybody doing more compute or storage with gen a. I. Than aws. The other advantage they have is the infrastructure they built up on the retail side. Andy jassy laid it out in the letter. They can deliver 7 billion items same day. That is something that is hard for anybody else to surmount. Two key points, becky. They built the moats around the business. This is the competitive advantage. Logistics. They can serve an item. Go from click to your door step more cheaply than anybody elses can. That means they can do it faster than anybody else can. What an advantage. You mentioned the 7 billion number. You are in the investment cycle. They are in harvest mode. That investment cycle that caused the stock to under perform, now you are on the back side and you will have that number that they gave yesterday for the First Time Since 2018, the cost to deliver decline by 45 cents. You will hear that again next year and the year after that. That is where you are in the cycle. That means margins will rise for the company. A great spot for investors to be in. You are on the other side of the investment cycle t. Mark, how do you feel about aws as it relates to microsoft and google . There has been a view among some they were behind when it comes to the large language models. Andy jassy has taken the approach that all of the large language models, not becoming commodities, but notthe important element that will change everything and having the exclusive relationship with openai or someone else isnt the thing that will change everything. Do you have the same view or no . Im not sure, andy. Maybe andy jassy is right or wrong. It is unclear to me. I think this is the one big risk to an amazon bull like myself. If in two or three years we look back and say this was the moment at which aws lost its cloud leadership in terms of Product Innovation and market share thats a plausible scenario. That is the one thing that would take out the long call here. I dont think thats true. I think amazon has the wonderful advantage. First mover advantage and scale advantage. Great data security. A lot of advantages they have, but theres no question competitive risk has risen for amazon over the last five years. They are building and i made a couple of references in my questions to him. You can tell he did not want to address it because they have not announced it publicly. There is a large language model project inside amazon called olympus. It will be as good or if not better than the chatgpt. Clearly, they are behind in terms of building that. How important is the project like that in your mind . I think it is extremely important. You are right. I dont know they missed the gen a. I. Trend, but they were not at the cutting edge of it, i would say. I know the company has invested a lot in a. I. Over the years. When it came to Enterprise Solutions and the rollout of gen a. I. Tools, they were caught offside. I guess they could catch up with the advantages with the scale and data security. It is possible they dont. I think this is something they absolutely need to nail down. Their lom offering. Mark, im surprised thats the only risk you see this being your number one call. Andy jassy was outspoken yesterday and talking about government regulations and how far it has come and how wrong he feels they are on some counts. That doesnt rank as something to change your mind if regulators come after amazon hard . There are tons of risk when it comes to amazon. The biggest is the potential loss of cloud market leadership. Regulatory risk is up there, too. You know, andy jassy sounded a little bit i was surprised by the tone he took on the pushback on the irobot acquisition getting shutdown. Theres no question the head of the ftc made her career on antiamazon antitrust case. I did not think that held water, but what do i know . Amazon, theres not the dominant market share in the segment. You can easily find with some other companies, perhaps google the and search. I dont know what acquisition you force them to divest . Could you force them to divest in aws . That isunlikely. The Regulatory Risk at the least is amazon cannot do acquisitions the way they did before. That is a risk. Mark, thank you very much for joining us on this friday morning. Good to see you. Thanks, becky. Coming up when we return, we will talk about this one. Harvard now the latest Ivy League School going back to standardized testing requirements. What are the implications for dei on campus and Corporate America . We get a crash course xt wnehen squawk box returns with that story and so much more after this. Encore energy, americas clean energy company, now in production in south texas. Energizing america with reliable and affordable uranium for Nuclear Energy fuel from our environmentally friendly extraction process. Encore energy. Welcome back to squawk box. Harvard university is the latest school to reinstitute standardized testing. This is following other schools like brown and yale. We have sean harper who is the founding director of race and equity center. Good morning. A big decision. A controversial division in circles. Im curious what your reaction was given that harvard is atop the pecking order in universities and may now, if this is a trend, it may become many other universities follow suit. Good morning. Thank you for having me. I will say that i was obviously disappointed that harvard and a handful of other highly selective private institutions have unnecessarily returned to a practice that ultimately makes no difference in the determining who is likely to succeed in college. It has been proven over and over and over again that standardized admissions testing is most useful to admissions offices for conveniently sorting applicants. Not determining the student likelihood for success. Har revard cited a study suggesting as a result of not having access to the scores and the scores are not the entirety of how they will decide to admit or deny people to the school, but it was an extra metric or an important one that would help them in a very socioeconomic and blind way of trying to understand the full strengths of the student. You dont believe thats true . I do not believe thats true. As a matter of fact, it is the exact opposite. The research makes painstakingly clear this is generational wealth and zip code and Household Income and socioeconomic profiles of applicants high schools and high cost of private coaching and high cost Test Prep Services that ultimately shape how students perform on these standardized admissions tests. They are not iq tests. In other words, really using the holistic set of metrics without using standardized testing scores gives us more of an opportunity to ensure the students who are not privileged in the ways i just said are not given unfair advantage. What do you make of the results of some of the studies and other commentary from admissions offices saying we get the essays and grades. Every school around the country will be different. Some schools are going to be getting as and some schools dont have the same grade inflation. By having the test, a singular test, that you can see something that is the same across the board and across the entire country. Thats the problem, right . The test itself is not a test of merit. It is a test of wealth. It is a test of Parents Educational attainment and the factors i noted. They are not iq tests. I will also say it is so disappointing that harvard and others have chosen to pull the plug on an experiment that is too early to make conclusive determinations. What i mean by that is during the covid19 pandemic, just about every college and university in america that o relied on standardized testing relaxed the standards and made testing optional for students. You know, what we have seen certainly from the university of california is the nations highest Education System. Uc and berkeley is tied for the top universities, public universities in america, both get twice as many applications as harvard. They have suspended their reliance on standardized admissions tests. They found that they have gotten more applications and have been able to be more selective and able to offer admission to more deserving californians and others around the world. That experiment is going very well. We have seen it in other higher insti institutions. Shaun, i know you brushed it off as being lazy as sorting through students. If you are supposed to go through tens eof thousands of student applications and cannot rely on gpa because you dont know the School District or great inflation at one school over another school, how do you expect them to sort this out . There are so many students who can look similar on one page. You can write an essay, but the average time on an essay is five seconds. You have to catch them in the first line of the essay. How are they supposed to distinguish between students and that many students in that small amount of time . Im so glad you asked me this question. I worked professionally in College Admissions and graduate admissions for five years. Over the entire 20year career, i and my colleagues are reviewing admissions for the program at usc. This is not conceptual. You have to read the materials. You have to do the holistic review of all of the various pieces. You know, we should not make this a convenience exercise for admissions officers. Tons of applications. If harvard is overwhelmed by the thousands of applications, it should take money from its endowment and hire more people to review those applications. Shaun, we have to go in a moment. I want to connect this to Corporate America and the dei efforts going on there and what you think it means. One of thethings that i wanted to ask is there was a review after universities would not bring the tests back because they were trying to enact a more progressive dei policy at the universities and by putting the tests in place with scores like this, that it actually would make it harder because you can look at the Supreme Court decision and others where there are and we can decide if they are meritocratic or not. My score is higher than that guys score. How is it possible you are not letting me in . Without the test score, there was more flexibility to make decisions separate