Raphael Stevens

Monday – Friday, 6:00 – 7:00 PM ET

Investors should take Federal Reserve Governor Lael Brainard’s inflation policy comments to heart and sell some holdings, CNBC’s Jim Cramer said Tuesday.
“If you own anything you don’t like, this is as good a time as any to sell it. We’re up a lot, I think you’re going to get good prices in retrospect. When the Fed’s biggest dove turns into a bird of prey, you’d better take notice of it,” the “Mad Money” host said.

Investors should take Federal Reserve Governor Lael Brainard’s inflation policy comments to heart and sell some holdings, CNBC’s Jim Cramer said Tuesday.
“This is not a sell everything call. … In fact, the health care stocks and the oils are still very attractive here, and I’d put more money in it if they come down. Oil because of supply issues, drugs because they’re pretty much immune to a Fed-mandated recession. I’m simply saying that I’m getting more conservative,” the “Mad Money” host said.

“If you own anything you don’t like, this is as good a time as any to sell it. We’re up a lot. I think you’re going to get good prices in retrospect. When the Fed’s biggest dove turns into a bird of prey, you’d better take notice of it,” he added.
Cramer’s comments come after Brainard on Tuesday pivoted from her usual stance favoring low interest rates to calling for aggressive action against inflation. Brainard said in a speech written for a Minneapolis Fed discussion that policy action could include tightening the balance sheet soon and indicated that interest rate hikes this year could be more than the 0.25 percentage point increase implemented in March.
Investor fears over an economic slowdown roiled the markets on Tuesday following Brainard’s comments. The Nasdaq Composite fell 2.26%, and the Dow Jones Industrial Average dropped 0.8%. The S&P 500 decreased 1.26%.
All three market indices gained on Monday, with the tech-heavy Nasdaq leading the way. Cramer said the market’s moves this week are a sign that investors are confused.
“I don’t like it when you have a market where, on Monday, traders buy all the semis and dump the healthcares, and then on Tuesday” they do the opposite, Cramer said. “That’s a classic sign that no one knows what to do,” he added.

“I won’t allow myself to be oblivious to this wake-up call. … I am pulling in my horns and selling with alacrity,” he said.

WATCH LIVEWATCH IN THE APP More

Carnival Cruise Line’s Carnival Ecstacy cruise ship is docked at the Port of Jacksonville amid the Coronavirus outbreak on March 27, 2020 in Jacksonville, Florida.
Sam Greenwood | Getty Images

Here are the companies making headlines in midday trading.
Twitter — Shares of the social media company rose 2% after Twitter announced that Elon Musk will join its board of directors. The stock soared 27% in the previous session for its best day even after Musk disclosed a 9.2% stake. The Tesla CEO said “significant improvements” could be made to Twitter in the coming months.

Carnival — The cruise stock rose more than 2% after Carnival said that March 28-April 3 was the busiest booking week in the company’s history. Carnival has 22 of its 23 ships operational again after the pandemic effectively halted the global cruise industry.
First Solar — The solar panel stock dropped 4.3% following a downgrade to underperform from neutral at Bank of America. The investment firm said in a note that First Solar has received “too much credit for a reality that has never materialized.”
Ralph Lauren — Shares for the apparel retailer tumbled 3.9%. Ralph Lauren’s stock was downgraded to equal weight from overweight by Wells Fargo analysts, who said Tuesday that they’re cautious on the sector’s near-term picture. A hit on consumer spending will likely hurt the midtier retailer, analysts said.
MarketAxess Holdings — Shares of the fixed income trading platform fell nearly 11% after MarketAxess released its monthly volume statistics for March. The company’s total credit monthly average daily volume was down 3% from March 2021.
Starbucks — Shares of the coffee chain fell another 4.5% on Tuesday, as Wall Street digested returning CEO Howard Schultz’s decision to halt the company’s stock buyback program. The stock fell 3.7% on Monday. Wedbush downgraded Starbucks to neutral from outperform, saying in a note to clients that it was less confident in the company’s earnings.

Coinbase — Shares of the crypto exchange sank 7.6% on Tuesday after investment firm Mizuho highlighted spending on nonfungible tokens as a rising cost for Coinbase. Mizuho also cut its price target on the stock.
Carvana — The used car dealer’s stock dropped more than 8% after a downgrade to sector perform at RBC Capital Markets. RBC said in a note that it was skeptical that Carvana’s fundamentals could support its expansion plans.
— CNBC’s Yun Li and Sarah Min contributed to this report.

WATCH LIVEWATCH IN THE APP More

California just experienced its driest January and February ever, and the snowpack is dangerously low. As the West enters its third year of drought, water sources are drying up, and restrictions on the Colorado River are now hitting all sectors of the Western economy, including homebuilding.
While there is a shortage of water, there is also a shortage of housing. The U.S. currently needs over a million more homes just to meet the current demand, according to an estimate by the National Association of Home Builders. Other estimates are even higher. As the millennial generation hits its prime homebuying years and Gen Z enters the fray, the supply of homes for sale is at a record low. Builders are hampered by high costs for land, labor and materials, so they are focused on the West and areas like the suburbs of Phoenix, which are growing rapidly.

On a vast swath of land in Buckeye, Arizona, just west of Phoenix, the Howard Hughes Corporation is developing one of the largest master-planned communities in the nation, Douglas Ranch, flooding the desert with housing.
Howard Hughes CEO David O’Reilly says water will not be a problem.
“Every home will have low flow fixtures, national desert landscaping, drip irrigation and reclamation,” he said, adding, “we work with the local municipalities, the city of Buckeye, all the water districts, to make sure that we’re enacting real conservation measures, not just at our property, but across the entire region.”
The community is projected to have more than a 100,000 homes, bringing in at least 300,000 new residents. Big public builders like Pulte, Taylor Morrison, Lennar, DR Horton and Toll Brothers have already expressed interest in building the homes, according to the Howard Hughes Corp.
And it’s just one of more than two dozen developments in the works around Phoenix, all as the West is in the midst of its worst drought in more than 1,000 years.

“They’re expecting the growth in this area to be a million people. And there isn’t the water to sustain that growth. Not with groundwater,” said Kathleen Ferris, senior water research fellow at Arizona State University.
Ferris produced a documentary about the state’s 1980 Groundwater Management Act. It requires developers to prove there is 100 years’ worth of water in the ground on which they’re building. Douglas Ranch sits on the Hassayampa Aquifer, which will be its primary source of water.
 “And the problem is that with climate change there aren’t backup water supplies that you can use to save a development that’s based totally on groundwater. If it loses all of its water supply, there’s no water to back that up,” said Ferris.
Mark Stapp is director of Arizona State University’s real estate development program at the W.P. Carey School of Business. He points to various reservoirs that could replenish the groundwater, but admits there is still risk due to the sheer scale of development.
 “I would say that there’s a legitimate concern about our future, and policy-makers are very aware of this,” said Stapp.
O’Reilly argues that the current need for housing surpasses future concerns that could be unfounded.
“I don’t think the answer is to tell people that are looking for an affordable home in Arizona, ‘You can’t live here, go somewhere else.’ I think the responsible answer, the thoughtful answer, is to build them affordable homes, but to build it in a self-sustaining manner,” O’Reilly said.
A report last spring from ASU’s Kyle Center for Water Policy warned the amount of groundwater in the Hassayampa subbasin is considerably less than regulators estimate, and that without a change in direction, ” the physical groundwater supply under Buckeye will decrease and will not be sustainable.” The report also says that hundred-year model for groundwater is constantly changing, especially given the changing climate. The state’s department of water resources is now in the process of determining if the basin does in fact have a hundred years’ worth of water.
“The bottom line is that there are places in this state, in this valley where there are sufficient water supplies to support new growth. We don’t need to go way out in the desert and pump groundwater to build new homes,” said Ferris.
The land, of course, is cheaper out in the desert, but Ferris argues, “Well, at some point there’s a cost to that.”

WATCH LIVEWATCH IN THE APP More

President Joe Biden has directed the Health and Human Services Department to lead a national research plan to better understand and treat long Covid.
Some people who contract Covid experience symptoms months later.
Symptoms include difficulty breathing, fatigue, problems concentrating, body aches, tingling sensations and mood changes, among others.

U.S. President Joe Biden delivers remarks on the coronavirus disease (COVID-19) before receiving a second COVID-19 booster vaccination in the Eisenhower Executive Office Building’s South Court Auditorium at the White House in Washington, U.S., March 30, 2022.
Kevin Lamarque | Reuters

President Joe Biden on Tuesday directed the Health and Human Services Department to lead a federal effort to research the diagnosis and treatment of long Covid.
HHS Secretary Xavier Becerra on Tuesday said he will lead a national council that includes the Departments of Defense, Veterans Affairs and Labor. The council will share information in real time on how to prevent, detect and treat long Covid, Becerra said during a White House Covid briefing.

Scientists and doctors still do not fully understand why some people who contract Covid experience symptoms months later, sometimes with debilitating consequences for daily life. These symptoms include difficulty breathing, fatigue, problems concentrating, body aches, tingling sensations and mood changes, among others.
Even people who only had a mild illness after infection and individuals who initially had no symptoms can develop long Covid, according to the Centers for Disease Control and Prevention.
Other individuals also experience autoimmune conditions that can affect multiple organ systems including heart, lung, kidney, skin and brain functions. Nearly 8,000 children have developed such symptoms, known as multisystem inflammatory syndrome or MIS-C, according to the CDC. At least 66 kids have died from MIS-C.
The national research plan will accelerate enrollment of 40,000 people in the National Institutes of Health’s study of the long-term effects of Covid-19 infection, according to the White House. The NIH launched the large study, known as Recover, in September.
The federal effort will also tap a nationwide survey from the Department of Veterans Affairs about persistent symptoms after Covid infection, and a Defense Department study on the risk factors for developing the disease among service members.

Biden’s 2023 budget would invest $20 million to help deliver better care to long Covid patients, including the development of multispecialty clinics. The budget also includes $25 million to boost CDC research into the risk factors and health effects of long Covid.
“If we receive additional financial support for it from Congress, we will launch new centers of excellence in communities across the country to provide high quality care to individuals experiencing long Covid,” Becerra said.
However, Congress has proven less willing than the Biden administration to fund the U.S. Covid response. Senators on Monday reached a $10 billion supplemental Covid funding deal for therapeutics, vaccines and testing — a sum less than half of what the White House wanted.
In July, HHS and the Justice Department said people with long Covid qualify for protection against discrimination under the Americans with Disabilities Act. Medicaid and the Children’s Health Insurance Program must also cover treatments for long Covid, according to the Centers for Medicare and Medicaid Services.

CNBC Health & Science

Read CNBC’s latest global coverage of the Covid pandemic:

WATCH LIVEWATCH IN THE APP More

WarnerMedia CEO Jason Kilar will be stepping down from his role as the company’s merger with Discovery nears its close.
Kilar, the one-time CEO of Hulu, was named the head executive of AT&T’s WarnerMedia division in April 2020, a month into the pandemic.
The executive is expected to depart on Friday.

Jason Kilar attends The 15th Annual CNN Heroes: All-Star Tribute at American Museum of Natural History on December 12, 2021 in New York City.
Dominik Bindl | Getty Images Entertainment | Getty Images

WarnerMedia CEO Jason Kilar will be stepping down from his role as the company’s merger with Discovery nears its close.
Kilar made the announcement to employees via email on Tuesday before appearing on CNBC’s “Tech Check.”

“I have been here almost a year since the deal was announced for a couple simple reasons,” Kilar told CNBC’s Julia Boorstin. “One, I love the team, the mission, I love this company. There was never a doubt in my mind I was going to stay through the end until the transition.”
Kilar, the one-time CEO of Hulu, was named the head executive of AT&T’s WarnerMedia division in April 2020, a month into the pandemic. He began the role in May with the launching of streaming platform HBO Max. He also was responsible for making the controversial decision last year to release all Warner Bros.’ movies, both streaming and in theaters.
Kilar, who has long lamented that the upcoming Discovery transaction would ultimately lead to his departure, is expected to leave the job on Friday. The executive has been open about his disappointment that he will leave the company, but has not publicly said what is ahead for him.
“I don’t have any grand proclamations,” Kilar said about his future. “I’m not going to a beach to retire. I’m excited about what comes next. Right now, I am focused on WarnerMedia.”
David Zaslav, the chief executive of Discovery, will take over the combined company once the merger is finalized.

Read Kilar’s full email to employees:

With the pending transaction with Discovery nearing close, now is the right time to share with each of you that I will be departing this amazing company.There are many feelings one could have in a moment like this, but for me there are none bigger, or more lasting, than the feelings of gratitude and love that I have for this team, this company, and this mission. I’ve never been more fulfilled professionally. I’ve never been happier professionally. This team — and what we’ve built together — are the reasons for that. We’re leading the industry creatively. We’ve elevated technology, product, and design to the highest levels in the company. We’re operating as one team, proudly and successfully going direct to consumers across the globe. It has been deeply gratifying to lean into the future alongside each of you and to do so with conviction.The joys are many, especially the walk-and-talks that I’ve had with a great many WarnerMedia team members, diving deeply into the matters at hand, whether on the storied lot in Burbank, along The High Line at Hudson Yards, in and around Techwood and CNN Center, inside our archives, across the expansive lot at Leavesden, at any of our game studio locations, or the many other locations where this team quite literally changes the world. Apparently, word has gotten around that when Jason calls for a walk-and-talk, be sure to wear comfortable walking shoes!For those of you that know me well (or follow me on Twitter), it comes as no surprise that I adore our history and the footprint we have as a company across the globe. I’ve done my best to visit and get to know as many of you as possible and to photographically document my love for this team and this company along the way via social media. So, when my wife Jamie and I were thinking about what we could do on our own to adequately express our appreciation to each of you, we came up with the idea to create a series of artifacts featuring some of the photos I’ve taken to celebrate this team and WarnerMedia. We’re inviting each of you to visit this website and choose an image that resonates . . . from the iconic Warner Bros. water tower, the gleaming towers of Hudson Yards, the virtual production stage in Leavesden, and several more. An artifact featuring that image (and a note from me on the back) will be shipped to you in the coming weeks. Our hope is that this memento will bring a smile and remind you of the important contributions we’ve made to the 99-year legacy of this extraordinary company.Leading this team has been the honor of my lifetime. My heart is so full, and I am beyond thankful to each of you. There is no better team on the planet, and I will savor every last step as I wander the lot in Burbank several more times this week, with this team on my mind, always.

WATCH LIVEWATCH IN THE APP More

Dr. Scott Gottlieb believes the U.S. this spring will avoid a “national wave” of infection related to the more contagious omicron BA.2 subvariant.
“I think we’re further into this than we perceive,” the ex-FDA chief told CNBC on Tuesday.
Gottlieb added he thinks cases are being “dramatically” underreported in some parts of the country, like the Northeast.

Dr. Scott Gottlieb told CNBC on Tuesday that he believes the U.S. this spring will avoid a “national wave” of infection related to the more contagious omicron BA.2 subvariant.
However, the former Food and Drug Administration commissioner said on “Squawk Box” that he thinks cases are being “dramatically” underreported in some parts of the country. Given the reliance on at-home testing now, he estimated that in the Northeast, as few as one in seven or one in eight infections are actually showing up in official case counts.

“I think we’re further into this than we perceive,” Gottlieb said, pointing to Germany and the U.K., where cases have started to decline quickly from their recent, BA.2-related peak.
In the U.S., BA.2 is the dominant version of Covid, according to the Centers for Disease Control and Prevention. Some expect that within two weeks, it may displace the earlier version of omicron, which caused a surge in cases and hospitalizations late last year and into 2022.
Both Covid infections and hospitalizations have retreated more than 90% since their January highs during the omicron wave.
“It’s probably not going to be a national wave of infection” from BA.2, predicted Gottlieb, who led the FDA from 2017 to 2019 in the Trump administration and now serves on the board of Covid vaccine maker Pfizer. “It’s probably going to be centered in the Northeast, maybe Florida. I think by the time it starts to spread nationally, we’ll already be deep into the summer, and that’ll provide a seasonal backstop.”
The picture may change once fall rolls around for a few reasons, Gottlieb said. “We’ll have to contend with this in the fall,” he said. “If [BA.2] is still the dominant variant in places in the country that it really didn’t get in right now, it’ll start to spread in the fall as people’s immunity starts to wane, they get further out from their vaccination and their prior infection from omicron.”
Disclosure: Dr. Scott Gottlieb is a CNBC contributor and is a member of the boards of Pfizer, genetic testing start-up Tempus, health-care tech company Aetion and biotech company Illumina. He also serves as co-chair of Norwegian Cruise Line Holdings’ and Royal Caribbean’s “Healthy Sail Panel.”

WATCH LIVEWATCH IN THE APP More

Former Seahawks star Bobby Wagner acted as his own agent as he negotiated a new deal with the Los Angeles Rams.
“I never had any intentions of leaving,” Wagner told CNBC. “I planned on playing my whole career there. So, when it happened, you’re frustrated, and then you add on how you found out, you’re even more frustrated.”
The Rams signed him to a five-year deal that could be worth up to $65 million.

Bobby Wagner #54 of the Seattle Seahawks interviews after practice at Training Camp on July 29, 2021 in Renton, Washington.
Alika Jenner | Getty Images

NFL linebacker Bobby Wagner wanted another challenge as he prepares for life after football. So he represented himself on the 2022 free agent market after he was released in a cost-saving move by the Seattle Seahawks.
On Monday, Wagner, 31, agreed to a five-year deal with the Los Angeles Rams that could reach $65 million in value. The agreement includes team- and player-based incentives that Wagner said are “achievable.” He called it “a win for me and a win for them.”

In an interview with CNBC on Monday night, Wagner discussed his new contract and explained why he again negotiated terms without using an agent. It’s not the first time Wagner elected to forgo representation, but he admitted this time was more difficult.
“But,” he said, “I’m always looking to challenge myself not just on the football field but outside the football field.”

Setting aside emotions

“Crazy part about all this,” Wagner tweeted on March 11, “I played there for 10 years & I didn’t even hear it from them that I wasn’t coming back.”
That Twitter response came days after reports surfaced that the Seahawks would release the eight-time Pro Bowl linebacker. The cutthroat move saved the team $16 million. The club, which competes in the NFC West alongside the Rams, is rebuilding. They also traded their Super Bowl-winning quarterback Russell Wilson to the Denver Broncos. Head coach Pete Carroll and general manager John Schneider took the blame for the lack of communication with Wagner.
On Monday night, Wagner explained his frustration with how the Seahawks handled the matter.

“I never had any intentions of leaving,” Wagner told CNBC. “I planned on playing my whole career there. So, when it happened, you’re frustrated, and then you add on how you found out, you’re even more frustrated.” Wagner added he “took a minute to let the feelings out, and then locked in.”
Asked for a request for comment on the matter, a Seahawks spokesperson emailed CNBC, “Terrific player, wish him the best.”
The Seahawks drafted Wagner in the second round of the 2012 NFL draft. He has represented himself in contract talks since 2015 when he landed a $43 million deal from the Seahawks.
This time was different, however.
“The first time was a little easier because I knew the team, the GM and the club history,” Wagner said. “Free agency this time was a bit different because you have to reach out to all the GMs – it was another challenge that I wanted to take on for myself.”
The NFL Players Association keeps a list of general managers’ contact information. Wagner obtained the list and “started to send out text and emails reminding the teams that I represent myself, and this is how they can reach me if they want my services,” he said.

Jeremy McNichols #28 of the Tennessee Titans is tackled by Bobby Wagner #54 of the Seattle Seahawks during the fourth quarter at Lumen Field on September 19, 2021 in Seattle, Washington.
Abbie Parr | Getty Images

Inside the $65 million deal

Wagner said he examined past contracts, players’ statistics and current NFL deals for linebackers to help determine his value. Another stigma he needed to overcome was age.
Wagner said older linebackers aren’t valued correctly due to age as teams favor young players. But he referenced other Pro Bowl linebackers who played “well beyond age 31,” including Baltimore Ravens icon Ray Lewis who retired at age 37. Other greats in the over-31 club: former Rams linebacker London Fletcher and New Orleans Saints Pro Bowler Sam Mills played until 38, and Tampa Bay Buccaneers Hall of Famer Derrick Brooks played until 35.
“There’s this idea that you can’t play as long as you want to,” Wagner said.
Teams, including the Ravens and Dallas Cowboys, reached out. During negotiations, teams had to get over “the idea that if they send something low or send something that may not be appealing to me, it’s going to be offensive,” Wagner said.
“I felt like I was in a good situation where I knew how to handle my emotions and what stage of my career I’m in,” he added. “I just wanted to get the right deal for me.”
The Rams offered that deal.
Wagner’s contract is really a five-year, $50 million deal that can reach $65 million if he achieves incentives. They include Wagner playing 90% of defensive snaps; the Rams make the playoffs and finish a top five defense. Other extras include nearly $10 million in roster bonuses and another Pro Bowl selection, according to Spotrac, a website that tracks sports contracts.
“They are very achievable incentives,” he said. Wagner added he needed to study teams’ salary cap space to “know what team you’re working with. Some teams don’t have cap space, and some don’t have the flexibility to work with the numbers. So ultimately, you have to create your market.”
The Super Bowl champion Rams deal also met other criteria: Wagner, a Los Angeles native, gets to play near home. And he plans to keep a residence in Seattle, too.
Wagner also said he had a real flirtation with the Cowboys. “That was a real thing. We had conversations. I love [Cowboys defensive coordinator] Dan Quinn and have a lot of respect for him. But between their needs and what they were willing to spend, we couldn’t agree. But there was mutual interest,” he said.
“Between the Rams and Cowboys – those are teams that have been around for a long time and have a lot of history,” Wagner added. “Being able to be a part of any of those franchises boosts your notoriety. And I landed on one.”

Bobby Wagner #54 of the Seattle Seahawks stretches before a game against the Green Bay Packers at Lambeau Field on September 10, 2017 in Green Bay, Wisconsin.
Joe Robbins | Getty Images Sport | Getty Images

Wagner aims to be an NFL team president 

When discussing the decision to represent himself, Wagner requested to end the narrative that there’s “animosity or I feel negative” about using NFL agents. “At the end of the day, I don’t do it to say I’m an agent. I do it for growth.”
In addition, Wagner said he was able to create more relationships with NFL team executives and learn more about the business of football. The goal here is positioning himself as a future team president.
Wagner would be one of the few Black team presidents in NFL history if he reached that goal.  
The NFL added its first Black team president in Washington Commanders executive Jason Wright in 2020. The Ravens hired the second in February 2022, bringing in NFL and NBA team executive Sashi Brown. And throughout pro basketball, the NBA slipped from a league-high seven Black team CEOs in 2007 to only three now. And MLB lost its first Black chief executive after Miami Marlins CEO Derek Jeter resigned.
Wagner noted most players go into coaching or media after their careers. But he’s aiming higher.
“That’s the box people put you in,” said Wagner. “I’m not saying anything is wrong with that, but that’s the box we get put in. They put us in this box where we can’t be a president or CEO, and it’s like, ‘Why can’t I if I understand the business?'”
He further explained: “What happens with players is we get stuck in our bubble. We get stuck in our world, and regardless of how long you play – three years or 10 – we get so stuck and think that the world is a certain way. And then when we get out there in the real world, we haven’t experienced anything outside of just being a part of a football team.”
Added Wagner, “If I start where I started, understand the business, and understand what happens in the locker room, to me, that makes me more valuable.”

WATCH LIVEWATCH IN THE APP More