tv Squawk on the Street CNBC August 2, 2021 9:00am-11:00am EDT
this company. >> sarat, gene, thank you. appreciate getting specific picks. it's good to see both of you. final check on the markets before we pass you on to "squawk on the street. right now we are in the green. it looks like right now the dow futured are indicated up by about 111 points the s&p futures up by close to 20 the nasdaq up by 71. joe, i will see you back here tomorrow >> i'll be here. don't skip leg days, becky that's the moral of the story. >> yeah, check out the doggie. anyway, make sure you join us tomorrow right now it's time for "squawk on the street. good monday morning, welcome to "squawk on the street." i'm carl quintanilla with jim cr cramer, david faber at the new york stock exchange. shanghai closes up 2%. we've got an infrastructure bill, big m&a day and another crowded week of earnings our road map begins with a new month. stocks are going to look to pick up where they left off
s&p's coming off six straight winning months. square is buying australia's after pay. it's a $29 billion all stock transaction as the buy now, pay later trend takes off. and he's an award winning journalist, our co-host and not only a past champion, but this week's host of "jeopardy!. yes, who is david faber. >> oh, my god. >> yes, finally here >> we taped it some time ago very excited for my five episodes i hope everybody out there will watch. >> it's a big deal. >> such an exciting moment. >> it's a very big deal. >> and hopefully the contestants thought i did okay that's the most important thing. it's actually making the game work for them. >> yes, have you been able to see any of your completed -- it will be new to you too. >> not a thing >> interesting. >> they are -- as you might imagine, they are very close -- they just released this one picture of me with mike richards, the great ep there, i had the clues and he kept giving me pep talks. >> can you tell us who won, please >> no, i can't
i can't do that. it's an interesting week i guess that's a good clue >> it's an interesting week? >> it's always an interesting week yes, always. >> never mind. >> you know, it was obviously a lifetime experience and one that i'll never forget, and i'm looking forward to actually watching it myself because to your point, they, you know, for obvious reasons don't let anybody know anything. >> very protective we want to implore our viewers to watch how great would it be if david's stint blew every other guest host away ratings wise wouldn't that be great >> up against the olympics in august, but yeah, we're going to do it. we have a really smart audience and so does "jeopardy!." at least we've got that going for us. >> my family's watched it, i don't know how many years. 30 years i mean this is just a staple in people's homes and you're in people's homes.
>> yep >> and it's just one of the i'd say -- it is iconic, and congratulations. >> thanks, thanks. >> i was telling my wife, i said this is -- you know, david's got this week and everyone i talk to said it's a really big pdeal this is a big deal >> and maybe as we get our first look at it tonight and tomorrow, you can talk a little bit more about the challenges of hosting because i know there's some intricacies in terms of prep and the life and tapeds a p personal account -- taped aspect of it. >> we know what we're doing here pretty well, and you've been put in any number of different situations, but it was unique, very unique, and not a lot of time to sort of adjust and figure it all out, but i tried i tried my best, and hopefully the viewers won't be disappointed. >> we can't wait >> do you change after each one? >> yes, after every one. i think i wore this tie. i think that's in one of them. >> that is so cool >> change for each one >> check your local listings make sure you watch tonight.
s&p as we said up six months in a urow, jim that's usually a pretty good indicator of where you're going to end up a year from now. >> i think august has been a rocky month. thins get thinner. i like the fact that the month's starting right ch china's not bringing us down this time. this is not a key week for earnings it's not a bad week. we had a lot of the damaged ones and we came through okay the caterpillar was not great. what you're having is that it's now obvious. the raw costs are hurting people there's only so much room. if you don't have a raw cost problem like the financials, you're in great shape. >> and yet, it's funny because we have had any number of ceos come on and industries across the board talk about supply chain issues, talk about typically one of a key commodity that's gone up in price.
some we know have come down sharply as well. lumber certainly is one we would think of and wage inflation, and yet there does seem to be a belief that this is -- and you've been arguing this for quite some time, going to be transitory and the markets seem to fully believe that's the case. >> well, look, there's still plenty of reason to stay at home now with the delta variant, there's even more of a reason to not try to find a job. when i listen to dr. fauci, they do put the fear of god in you. >> really? even with the benefits running out, you think that people are going to not pursue employment as aggressively as they might otherwise? >> i guess what i'm saying is -- >> because of the delta variant? >> -- i agree with what chairman powell said, which is that it's still too early. look, the delta variant is one that we all found ourselves calling our doctors and saying if we have moderna can we take a booster, if we have j&j, must we take a booster, and there's certainly a feeling from
provincetown that -- are where r was a terrible outbreak, you're not protected, and i went back to masking >> inside. >> inside. >> absolutely. it's just too dicey. i mean, i could not believe, i had the mask on again. like that moderna didn't do anything >> although gottlieb on squawk today talking about the rate of transfer in some southern states starting to either stabilize or in the case of tennessee go lower. i see ihme who's done a will the o -- a lot of good modeling work since the beginning. >> this is obviously herd immunity the bad way i still don't understand, maybe you can answer this for me we do have a lot of antibodies that do well so my doctor said if you get sick, we're just going to give you the monoclonal antibodies >> regeneron, they need to be infused so you need to go to the hospital to have that tdone or
some setting where that can take place. >> you can do it at home. >> you can >> you're right, jim it needs to be done at a certain point to be most effective >> right we hope that gottlieb, who i think has been the bets ost on s is correct in talking about maybe we're closer to a peak than we think. that said, i also am still focused on both the company that he's on the board of, pfizer and of course merck which both have these antivirals in late stage trials that would be taken early in the onset that conceivably would greatly minimize the impact if you knew you had covid. >> but my wife lisa took the j&j -- took j&j. >> j&j is a little more concerning even the provincetown, the people who went to the hospital there, that was pretty -- i think it was almost all of them were j&j. >> right and the issues in the baseball, mostly j&j, but let's just make it clear that you're still -- no
one's dying if they have the j&j. my doctor says listen, you've got -- j&j, go get a booster i think the issue is can you go to walgreen's and say, look, i had j&j. what are they going to say >> well, i did notice tsa passed through 2.25 million passengers yesterday, another post-covid high to your earlier point about fauci who talked over the weekend about the fact that although delta may be a concern, probably not likely to bring new lockdowns. here's what he said. >> i don't think we're going to see lockdowns. i think we have enough of the percentage of people in the country, not enough to crush the outbreak but i believe enough to not allow us to get into the situation we were in last winter but things are going to get worse. if you look at the acceleration of the number of cases, the seven-day average has gone up substantially. we're looking to some pain and suffering in the future because we're seeing the cases go up, which is the reason why we keep saying over and over again the
solution to this is get vaccinated, and this would not be happening >> and to that point, friday the companies mandating vaccines for workers, google, facebook, disney, uber, lyft is a few others too >> this is the beginning, and then when you get pfizer hopefully that the fda, which has been very secretive goes and says, listen, pfizer is no longer emergency it's regular then i think that you'll see the big banks just say, okay, you're done you have to do it. and you'll see the big industrials. you'll certainly see health care. >> it will happen. they will -- what you will say is you'll mandate vaccines for people who want to come to the office, and then over time, they will also basically say, listen, if you're not showing up in the office, we have an issue. >> yeah. >> not going to say you get fired if you don't get the vaccine, at least not at first >> no. >> that will eventually, as hopefully we all hope this subsides yet again and we get back to really sort of being in a -- >> we need to get rid of the
voluntary. like i see, i went to the supermarket last night, david, you buy stuff there and it's incredible. >> i try not to. >> and it's just masks only if you haven't been vaccinated. and there's -- there's like ten people walking around with a mask, and i'm saying to myself, really are they kidding me? i mean, jersey >> well, at least they're wearing the mask. >> that's why i'm wearing the mask how about if they take off their mask how about if they say listen, i can't hear you, take off your mask no, i'm not doing that, just to order cold cuts. i'm not dying for cold cuts. >> you're not going to die >> okay, i'm not getting sick from cold cuts. >> you're probably not even going to get sick. >> i'll be asymptomatic for cold cuts. >> speak of going to the store buying stuff, square is looking to capital ieze on buy now pay later trends 29 billion in stock, we're going to talk to the cfo and the after
pay co-ceo later on this hour. big deal. >> huge, and i've got to tell you, square can do no wrong in the eyes of the analysts this is a stock deal, it's gigantic, and square also reported a somewhat noisy quarter people are saying is fantastic. david, in the m&a world, have you ever seen someone offer this much stock and it's possible they'll actually be up >> yes, it can happen. you rely on you to characterize the quarter itself. >> great growth. >> you're right. watching the stock sort of hang in there down 1% maybe is going to be important for them as you said, it's an all stock deal, it's about a 30% premium it is an australian company. 29 billion reminiscent of that late '90s, early 2000s period where i've referenced a number of times by the way, after pay trades at
higher multiple their square does 18.5% ownership for their shareholders of the combined company. here's this kind of -- this is david speaking of 1999, 2000, jmp, no premium looks to high for buy now, pay later no premium so if they pay, what, doubles, is that all right? >> there's nothing you can pay that would justify paying it >> it's like you could go and say listen, square app, the cash app's not being used it will be used. >> but listen, it does speak to the enormous size of square and what's been its incredible growth, 112, $113 billion market value as we start trading today for this company, and obviously going to be adding another 29 billion when they add that stock if and when they close you have two deeals this morning >> dave meggitt, remember him, he was great and it's, you know, it does make you wonder about u.s. antitrust.
i mean, both of these -- afterpay does not have a large market here. >> right >> this mega deal obviously parker hannifin, are u.s. companies looking abroad because they do feel certainly any deal of any size, it's going to get such a close antitrust look that at the very least, it will take a very long time. >> it's all about the voting trust on ksu the stb's vote on the voting trust. if they can delay the vote, the shareholder vote until after that, then that sort of will make a lot of sense. >> again, right, that's actually canadian coming for u.s. but that's a powerful potential trend here is u.s. companies looking abroad they do feel like anything in the u.s. market is going to get so much scrutiny look at all these deals, but the companies being purchased do not have large market shares tin thi company. >> you talk about premiums >> i was shocked at how high now, typically how -- you know,
aerospace isn't that good, but i should be careful there because air bus is good. it's boeing. >> it says they've been transforming their business over the last four years over a focused strategy they're streamlining their portfolio. >> are they laser focused? >> investing in new technologies and they've been growing through customer aligned divisions. >> any best practices in there okay. >> it's the mlge >> yeah. >> ge, by the way, splits. people should not think that it went there -- >> it went from 12 to 100. >> he got that big bonus now, right? what was his bonus >> yeah, no, they split it. >> in fact, ge will begin trading o'an post-split basis. got a bunch of calls on consumer names, levi, estee lauder, under armour and just wait until you see what jim and david have planned for the mad dash we're back in a minute
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and now here is this week's host of "jeopardy!" david faber. >> that was actually johnny gilbert. you like that? >> now i'm scared. >> you should be you've got to make some decisions here let's go to the board. let's go to the board. we've got faang, our categories, work from home, reopening, crypto, and cramer's choice. jim, you're in control >> krcramer's choice for 400. >> the clue is, this underperforming apparel company which reports this week was named a fresh pick today >> what is under armour. >> correct, well done.
okay, cramer's choice. no, we can't do it, we're not ready. david, this is a very interesting call this is a sftock that has underperformed nike by 40% baird's making a point this is a great trading call, which is why i like it we'll find out quickly like you in "jeopardy!" we will know whether this one's the right one or not i like it because i think people have forgotten under armour. they just kind of said it's never going to catch up again. i think it's wrong, baltimore based coming back. >> it's not a very good year. >> looking for $30 rather quickly. i'll take that i mean, that's a 50% move. so i think people are underestimating how important this call is i think obviously when you do a call the day before, you better be ready i think the confidence of this piece is very strong. >> you do? >> yeah, i do. you don't usually go over it on "jeopardy!" like that kind of
thing, right once you say, jim, tell me why you like it. >> no, you move on very quickly. >> very quickly. in fact, we would be on to -- you had control. we might be on to faang or crypto we'd be deep in. you got to keep it going. >> when you're like at final "jeopardy!" if i put like $1, do you have to very quickly say -- >> thankfully there are commercial breaks so we can figure some things out before final "jeopardy!." >> but there had to be things that are dangerous. >> in terms of at least understanding exactly where you'll be. >> there are moments where being host is not easy. >> no. no. there are plenty of them, certainly when it's new. certainly when it's new. we're going to do this all week, though, and i love the categories, so you know, you keep picking. >> i'm just -- all week david you're going to be shocked and surprised at how much i care about you running "jeopardy!" >> i appreciate that >> there are other people who
have run it david, candidly, low bar. >> low bar. >> there have been some very good ones. there have been some very good guest hosts. >> you are going to be the best. carl is he going to be the best? are you kidding me >> setting me up i don't think so. >> will you stay with us even if you're the best ever >> always, always. and you don't have to worry. you don't have to worry. i don't know if it's going to be the quarterback or the champion, but. >> the quarterback signed. >> it's not going to be this gu t quarterback signed. except for these five days >> we'll be right back
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jim mentioned under armour earlier in the half hour got a bunch of other calls regarding consumer names db does cut estee lauder to hold, looking at 322, although stifel initiates levi at a buy >> yeah, look -- >> looking at a multiyear cycle in dedham. >> i think there is a -- i love the levi strauss because it's not even up since they reported that amazing quarter you do get that quarter. the denim, the more i look at this denim super cycle and i
know super cycle is kind of dangerous term it is early. and levi strauss chip bergh did a great job when we had him on this is one where they confound the analysts will you look at that, and he calls it a valuation valuation has not been a good reason to sell anything in this market. >> what didn't you like about the call, though >> it's up too much, and they don't think it's going to say anything special, well, and the last quarter by the way, the stock did get clobbered. he is getting ahead of that. and this is deutsche bank, maybe with the stock up 25%, the rationale could be you know what it gets hammered and maybe i'll upgrade. >> to your point, you've liked el for a long time >> i've always been right. >> absolutely. and their business in china has been important take a look, to we have a five-year? that does put it in better perspective in terms of what he's been able to accomplish there. >> there are some -- wow
>> yeah. >> not bad. >> there are some trends here that are operating well. when people wear masks, they get -- their skin is very hard to clean he's got the best cleaning products, and then when they're on zoom, you have to make yourself up, and now you'll be going out and you'll be buying the best estee lauder is the best, and i think this is kind of -- they're kind of in a way a covid winner except for the fact that they need travel. when you talk about 2.2, they are duty free. and they also use in china, so yes, if you think that travel's going to slow down, duty free slows down, that will hurt their earnings >> speaking of that, we are going to get a lot more clues over the next few days marriott, expedia, right >> travel. >> booking holding is going to post this week we're going to find out if there's been any kind of deceleration in travel, leisure or otherwise let me tell you why i think there would be i think people are very hopeful
about delta. i think that those of us who are scared of delta, they tend to be people who watch the news and say listen, i'm listening to the warnings the people who don't want to get the vaccine, they don't really care what fauci says they'll travel they'll do whatever they want. they don't care about infecting you. besides the "jeopardy!" host for the week. >> i think you're right. that's probably more or less a true statement >> i'm serious >> or maybe they're just waiting for full approval, which the journal over the weekend said could come in december the fda is starting to set aside other work to get this done quicker. >> they rushed the alzheimer's which the panel recommended against, and here we've got a billion people have tried this, and they still don't get approval what is that, david? >> i don't know. you know, the biogen drug that you point to was very interesting. and that stock has come up by the way in part because there are many doctors who are not going to use it.
there are many hospitals who are not going to -- you know, and -- >> insurance companies that won't pay for it given that very mixed message we got from the fda going against the advisory panel >> i do a lot of stuff with migraines and also the brain society, they don't see more than a couple of months, a couple of months, but there are some people who say listen, like a couple of months, by the way, no one thinks it works once you have you got to take it before, and you have it without knowing it for a very long time i get why the panel's against it yet they still won't do this >> here's a look at the opening bell at the big board it is gxo logistics is celebrating its spinoff from xpo logistics and at the nasdaq it's rover group,
an online marketplace for pet care. >> logistics, i never thought of that -- it's like plastics. >> they have a cardboard cutout. >> brad jacobs from xpo. and then kind of felt like it wasn't getting its valuation. >> uh-oh, they're moving the cardboard cutout out. >> they turned him around now. that looks strange >> they're taking pictures the other way. >> suffice it to say, both can be winners this is one of the few -- i had these guys on. one of the few companies where people want a logistics play but they also want xpo you see these kpsxpo trucks all over the place a great online commerce company, and online commerce has stock. >> definitely not, even after the concerns about the u.p.s. quarter. >> and amazon, people didn't like amazon. >> yeah, we got another independent research today cuts, they go to 4,100, they were at
4,500 on amazon. that's been a talker we're back about 35k, im i wonder if you think the harsh lessons of august and september of recent years are going to apply. >> i think they will. >> you do? >> yeah. i mean, all of us are pretty -- there won't be a shutdown. all of us are pretty exhausted, though how many people call their doctors? i keep coming back to -- >> you keep coming back to the delta variant over and over again. >> why not >> how do you know you're immune. >> i'm not immune, i'm vaccinated i'm not going to get particularly sick if i even get it at all because frankly i still have a very good chance of not getting it. >> not to nemention the rollover in the uk, which was written about by jpmorgan on friday. there seems to be this sort of 45 to 50-day curve in india, in the uk, and hopefully here. >> incredible in india incredible so i mean, there is great hope, but i'm with jay powell, a couple of weeks.
let's give them three weeks and i'll feel better three weeks from now, and david, i will not wear this it's k n95 >> got it. >> i saw you ordered a bunch on thursday. >> i ordered 100 i ordered 100. why not? >> no problem getting it >> came the next day maybe that's why fauci said -- remember they didn't have enough, so they kind of told you it didn't matter that mixed message really killed a bunch of people. >> that was the cdc, that was not good. >> gottlieb made the great point this morning that the cdc, their mission has never been to issue quick guidance their mission has been to assemble a ton of data and then make a call over the long-term so they're being asked to do things that are sort of antithetical to their culture. >> yeah, but so is the -- so is the illness. >> right >> we can say, listen, you keep your way you do things or we could say this is our first pandemic so let's get on the case let's just use some things that
make it so that there will be fewer people who die >> right >> what are you looking at >> actually, i'm looking at square because, you know, you made this point earlier -- >> david, there's no price. >> square is up. >> you got to be kidding me. >> it's up nicely. >> oh, it could have bought anything it's up nicely. >> it's up 3.5%. >> when i heard about it, i was very excited about the deal. i did ask them why not buy a firm. >> this is what you want to see when you're selling your company to them for stock and you're a current investor in square, worth roughly 29 billion and now worth 3% more than 29 billion. and -- in fact, those guests are ready. should we just get started >> i think we should go right to it >> ann marino, major acquisition news, square has agreed to an all stock deal, usually cut ways with stock at 29 billion, but, no, not this time. joining us now is amrita husa.
chief financial officer at s square congratulations to you both. a lot of people were worried the stock would bedown let me ask you point-blank what about this deal has you and wall street excited don't we have a lot of buy now, pay laters. >> thanks so much for having us on today we're so excited to talk about this transaction, which brings together two of the fastest growing fintech companies globally buy now pay later going after a $10 trillion online payments industry we're about 2% penetrated today from a buy now pay later perspective. we're seeing those consumer sentiment shifts towards transparent borrowing opportunities like buy now pay later and merchants looking for that omni channel experience to serve buyers across channels whether in person or online
through this means and with after pay, we have the opportunity to strength and closely connect our seller ecosystem, which serves millions of merchants and cash app, which serves 70 million active consumers on an annual basis together we can create an even more powerful commerce platform connecting the two >> okay, let me go to nick, amrita nick, why did you want to sell the growth here was absolutely incredible why do you need to cash out now? >> yeah, look, thank you for having me. from our perspective, you know, this all stock deal represents a huge excitement for us on the long-term, you know, prospects when you think about the merchant side of the equation with square's seller business, you have millions of retailers on one side and 70 million annual abouctive consumers on te cash out point of the equation
to think about the point where we are right now, can we're growing very strongly off a really large base. it's an incredible opportunity for us to expand, particularly in the u.s. where we've only been for three years it's already contributing 50% oe after two and a bit years, we processed over, you know, a billion dollars in the month of volume so, you know, last financial year we on a constant currency basis grew 170 plus percent year on year in north america i believe this opportunity for buy now pay later -- mission and
values accelerate that growth curve, it's an amazing opportunity for us >> amrita, you know, when i look at square, i just -- i wonder in terms of your competition against banks sort of what had been some traditional lines of their business and obviously others that you've created, are you or should you be considered in any way something that should be regulated like a bank >> you know, we always work closely with our regulators, and as you know, we have a which are thor for a bank, which we -- charter for a bank, which we just opened called square financial services, but the rest of square works across partners, across the ecosystem, and in fact, with after pay, what we're seeing here is customers using their own money to make purchases over time in a way that after pay can responsibly finance with 15 turns in a year from either their own balance
sheet or from financing warehouses and so we see a real opportunity to enable, you know, the next gen consumer who's looking for different ways in this experience, an interest free way of expanding the purchase potential what that ends up doing is merchants pay for the after pay experience, but they get higher average order volumes. they get greater conversion. they get greater frequency and lower returns, and they get a marketing channel from after pay, which is sending an on average million leads a day to merchants, which is ultimately helping those merchants grow their business that's what square is all about, helping our customers grow their business >> okay, we all know a competitor, a firm, weit's less expensive in terms of dollar amount than after pay. why did you not buy a firm >> so there's a couple of reasons that we think afterpay is the right partner for square.
first, it's high growth and accretive to square's growth it's rare for square, which is growing at 91% in q2, our highest growth quarter as a public company to find another company that at scale is accretive to our growth. if you look on an ltm basis, square grew our gross profits 71% year-over-year, afterpay grew theirs 96% year-over-year second, we see this business model, which is interest free via after pay to be better suited to our view and our purpose of economic empowerment. we see a more complimentary merchant base, which enables higher frequency purchases across the retail and beauty categories that after pay serves, and we see a global footprint with afterpay paying 50% of their gross merchant volumes in the u.s. and 50% outside of the u.s., key areas that square wants to continue to grow and then, you know, most importantly we see nick and ant,
the two cofounders and entrepreneurs who lead afterpay and will be joining square who are culturally aligned with our mission, and we can't wait to work together. >> i was curious about that. you just heard amrita say you're culturally aligned what does that mean? >> as we've gotten to know the square leadership team, it's become imminently apparent how entrepreneurially led the team is we're grounded on the same vision, you know, with square being around economic empowerment and afterpay around financial freedom for all, and our teams throughout the whole organizations, you know, live those values every single day. so as we've gotten to know each other over recent times, it become really clear that not only were our strategies aligned, but there was just really clear alignment of purposes and values. to me that's ultimately the foundation that achieves our long-term strategy and our long-term objectives
>> okay, just explain to me, let's say i miss a payment there's a fee. how much is the fee, and what happens if i miss the second payment? >> yeah, so from an after pay perspective, the moment you miss your first transaction, we actually disable your account, so you can't keep shopping until you pay that late payment back so fundamentally the opposite of, you know, consumer credit company, if 100% of people pay back the credit card on time, the industry simply doesn't work we've taken the opposite approach our late fees vary state by state and in many instances actually have a grace period as well it's good wizbusiness for us tot earn late fee revenue and income is the opposite of a consumer finance company being about 90% from the merchant and approximately 10% from the consumer it's fundamentally the opposite of how traditional finances worked in the past >> amrita, i know -- i was
talking to jpmorgan this morning. they have buy now, pay later they haven't really promoted it. i'm sure if somebody wants it, it would be -- they are heavily regulated, and i think they always have the regulators in mind before they do anything it's okay for you to say it. you've got a big advantage, is it an unfair advantage i'm sure you don't say so. when you look at what they're doing, do you want to crush the jpmorgans and the wells fargos >> look, this is a competitive space. one in which we bring with after pay two complementary sets of assets we're focused on providing greater choice for our customers, whether it's merchants or consumers we think we will have a differentiated offering. we believe afterpay today has a differentiated offering because they not only have relationships with 100,000 enterprise merchants, but they have
relationships with 16 million consumers afternoon the world, and that ability to drive inflow of customers from their consumer ecosystem into merchants is ultimately what's valuable to the merchant, and their brand that they've developed over the years is very popular amongst gen z and millennials, similar to square, so we see some real potential overlap and synergy as we think about combining our businesses together. >> wow, i mean, you got the cash app. you have the millennials i understand why the stock is up i want to thank you amrita and nick, always good to see you congratulations. >> thanks so much. fantastic. one thing we didn't touch on is square's ongoing strategy regarding crypto, which has actually been raised a few times in the context of the infrastructure bill. >> right, yes, the infrastructure bill is very interesting. i called that up because they want your 1099 look, if it's -- why do you need it if it's a currency. the answer is they may not view it as a currency, capital gain.
>> that's a key area of contention. >> yeah, i didn't view it when i did it, took the gain, i thought i had it. >> thought you were done. >> i didn't know i was sharing it with the government. >> why shouldn't you share it with the government? >> i did it thinking i wouldn't be sharing with the government. >> coming up on a trillion dollars now in uncollected taxes. >> i was kind of hoping -- >> now you're talking some real numbers. >> square up 7.5%. >> square could pay -- they could have paid double, david, and they would be up one when you look at these charm stocks, go to jpmorgan, yes, they do have buy now, pay later. they've never emphasized it. but the millennials crave anything square does the cash app, they think it's like the greatest thing in history. it's just a cash app. >> let's get to santelli who has manufacturing pmi. >> markets manufacturing pmi is
a july final, carl, we take 63.1 and we now replace it with the final read, which is 63.4. so an improvement of 3/10. this is indeed a post-covid high interest rates are near unchanged, slightly lower yields despite the strong opening in equities, construction spending and ism yet to come, and "squawk on the street" will return after these messages my retirement plan with voya keeps me moving forward. they guide me with achievable steps that give me confidence. this is my granddaughter...she's cute like her grandpa. voya doesn't just help me get to retirement... ...they're with me all the way through it. voya. be confident to and through retirement.
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walt disney's "jungle cruise" debuting with 34.2 million domestic this weekend, an additional 27 million international, 30 million in paid streaming on disney plus. the film did secure a total of $91 million in its first three days as we continue, jim, to kick around how the back end comp is getting dramatically altered right now. >> true, true. and i know that scarlett johansson wasn't that happy with the amazing movie "black widow". >> nobody came off particularly well in that little back and forth. she got paid 20 million right away and then complaining sort
of didn't -- and then disney's response was a little harsh too. >> unbelievable, callous disregard for the pandemic. >> i know. >> but there's been a lot of analysis on how that deal could have been changed, right >> right >> yes >> the deal s being done now are accounting for, i think, to a certain extent the massive change that's taken place in term and yet, obviously, a lot of deals. you should stick by your deal. >> what does it mean for amc >> stock's up again. >> that box office number was not a great number certainly -- >> no. >> not compared to pre-pandemic weekends for a major picture with the biggest star out there. dwayne johnson. >> he is huge. his tequila is the number one seller. >> amazing. >> he has some other thing, i see, on the olympics
what's it called some other drink he has been pushing. >> as i recall, his national anthem might have a history in the spirits business so sort of close to his roots. >> they do a great job amc up $1.25 amc very much -- we have not mentioned robinhood. >> amc is a $20 billion market cap company. >> well, there are people who like it very much and they tend to be concentrated in -- >> but that's not based on any fundamental understanding of their current ability to earn money. >> why do you -- i used to think like that, dude. >> and then you changed? >> well, david, the relevance of your view, it's questionable >> thank you for that appreciate it. >> wet get stop trading in a moment dow's up almost 250. ♪ ♪
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now that the dermatologists are open and people aren't afraid, at least, you know, aren't afraid before delta, people are going back to botox. wrinkle-free skin versus delta. >> you think this company is vulnerable at all? >> yeah. >> not takeout maybe activism >> i am glad you mentioned that. eight times next year's earnings, yes. yes. i don't know how a drug stock sells at eight times earnings that doesn't attract attention from someone who says, well -- like glaxosmithkline who is undervalued. this is cheaper. >> to your point, elliott has taken a large position - >> yes this company's gotten a free ride the stock's up it yields 4.4. what does that say the market hates this company. they are going off patent. they have other drugs that are going to make it for them.
but this is pfizer without -- pfizer without a shot for -- >> without a vaccine >> without a vaccine which is not great but, look, i like it but they are undermanaged. they've got to do something. >> 20 years of pfizer hasn't been great either, jim. >> how did you though that i was going to activism? >> who can say, carl maybe that we spend, oh, hours a day together >> yeah. >> i think it's a "jeopardy!" question, right? >> by the way, is "mad money" going to run at the same time as "jeopardy!" in some markets? dhou they choose >> that can't happen that can't be allowed. >> you can take david. it was money months ago. mine's real time i mean, honestly, newell, newell, you can watch newell or david. which wiould you -- come on! >> half an hour. can't you watch a half hour and come back to "mad" >> there you go. david crushed it
even i'm going to wiatch it. my kids don't know i have a show, so it's not an issue. >> your kids don't know you have a show >> my kids have watched "jeopardy!" since they were 6. >> it's got a history, man see you tonight. >> one way or another, "mad money" 6:00 p.m. eastern time. dot ay.s 2 n'gowa do you have a life insurance policy you no longer need? now you can sell your policy, even a term policy, for an immediate cash payment. we thought we had planned carefully for our retirement. but we quickly realized that we needed a way to supplement our income. if you have one hundred thousand dollars or more of life insurance you may qualify to sell your policy. don't cancel or let your policy lapse without finding out what it's worth. visit conventrydirect.com to
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♪ good monday morning. welcome to "squawk on the street." live at post 9 of the new york stock exchange nice way to start the month. dow up 200 plus at the open and s&p hanging on to 44.12. getting data here. manufacturing and construction spending let's get to rick santelli rick >> yes, carl for our june read on inst construction spending a big miss up 0.1 of 1% when we move to ism, july reads, headline number expected to be
61.0, also a miss at 59.5. 59.5 that is the lightest since january when we came in at 58.7 and all reads since then had been over 60 so we retrograde there and moved down a level by the way, construction revision minus 0.3 last month, now minus 0.2. the nighty gritty on the ism manufacturing. prices paid, expecting 89, definitely lighter there that's good because prices paid, of course, underscores one of the nervous aspects of the reopening, that is higher prices so coming in at 64.9 on new orders, 85.7 on prices paid, and 52.9 on employment now, employment definitely jumped up a bit. last look was 49.9 so we moved back over 50 that is very important and on prices paid, just to put a face on it, prices paid at
85.7 is the lightest prices paid that we have had since march, and the last read that we had at 92.1, that was the highest read going all the way back to 1979 melissa lee. back to you. >> rick santelli, thank you. 30 minutes into the trading session. the three big movers we are watching starting with shares of square, rallying after agreeing to by after pay for $29 billion in stock. we will take a closer look at that later uber shares getting a boost. coverage with a buy rate, down double digits on the year. and we will end with g completing the previously announced one for eight reverse stock split. that stock up more than 20% year to date. >> let's get to bob pisani, check out thing market action. good morning. >> three to one voonsing the declining stocks we are just high of a new high and it's risk on
cyclicals doing very well this morning. materials, industrial stocks, consumer discretionary stocks doing well tech lacking a little bit. we have had a spectacular earnings season. we are 60% of the way down q3, q4 estimates, key pricing, a notable absence of commentary about the affects of the covid variants on business that is starting to change heineken, big, big beer global manufacturer, came out with comments there is the ceo talking about a significant impact on asia sales and they specifically referenced vietnam, mallish a, asia sales slowing down due to the impact of covid variants on them. they had higher costs denting the margins, higher costs for barley, sugar, even beer cans. they are raising prices somewhat aggressively as you can see, it was enough for them to tag it as a concern. heineken has held up well this year, up 8%, better than most beer manufacturers just off a new high about a
month ago. the key point here is we have been put on notice that the covid variant is starting to impact business. we want to keep an eye on that the story so far, the margins have been spectacular. over the weekend s&p released new numbers for profit margins keep an eye on that 13% for the first quarter is continuing into the second quarter is this good or bad? these are record margins normally, historically, you are dealing with 8%, 9%, 10% marches for the s&p. 13, that's unprecedented and a sign that individuals -- or companies are able to raise prices to sort of combat higher costs. there are limits to what you can do, as heineken pointed out. t in terms of the markets, earnings rising, new highs for the margins and the fed on the horizon. this is why we're hitting new highs. there is a debate about china. this is a major problem. big international investors are debating is china invesable at this point chinese regulators increasing oversight, tech, education, food delivery in the u.s. regulators getting
more aggressive. gary gensler talking about warning investors about the ownership structure on chinese companies and the shell companies. it's getting much more difficult. and people are debating is china separate asset class from the rest of the world? some say focus on the consumer and consumer focused chinese private companies. others say it doesn't matter they are all private they are all owned by the chinese government essentially so these are the fault lines we are seeing another big problem, international investors have been underperforming for more than a decade and not just in china. the s&p has just outperformed everybody. not just china, but japan is underperforming, emerging markets essentially flat loot of people are saying, if you are an international fund manager, you have had to defend yourself for the last ten years because you are underperforming. now you have additional regulatory risk. no wonder it's miserable to be an international fund manager. the chinese stocks a little more stable today we will debate this on etf
edge .cnbc.com at 1:00 p.m. >> thank you l elizabeth burton of jpmorgan asset management phil, how are we priced? a good read on earnings from a broad swath of companies, the biggest in the s&p 500 in terms of the tech giants maybe all but one alphabet had things to pick on. so how are we priced >> yeah, good morning, melissa good to see you. and welcome to august where you get a lot of noise not that much liquidity. it's hard to really make sense of anything sometimes in august. but to answer your question about how we are priced, i think we are still being validated by our overweight to the u.s. equity markets, our overweight to credit versus government bonds and the pro cyclical trade. we are keeping an eye on the u.s. consumer. you could make the case right now that the u.s. consumer has never been as strong as they are today. we saw that in last week's
number we see that with high savings rates, low interest rates, we see that with higher stocks. also, financial conditions are the easiest dthey have ever bee. real interest rates at an historic low corporate rates are very, very tight and affordable then you also have low volatility on top of that, finally, we talk about where we are when it stands to covid we, don't agree with jerome powell every wave has had less of an impact on economic growth. remember that nasty feedback loop of lockdowns, forcing the economic data lower, forcing the stock market lower that is so much less strong, less acute today, especially because of most will be vaccinated in this country we expect that third quarter to have 8.5% growth
phil is usually bullish, elizabeth. you sound a little more cautious here and you are positions your portfolio for inflation. what are you seeing that makes you think it's not transitory because break-even retails on fives, sevens, tens, they indicate that inflation is, in fact, not here to stay >> well, i mean, a little bit -- i mean, they are being manipulated by the fed they are buying over $200 billion net in the market that's more than an outstanding. so, i mean, care may be a strong word i won't stake my entire portfolio on it. i think inflation is not transitory there is a high potential for it
to be longer lasting i am not sure what definition of transitory they are using. i hope i'm wrong but we have to be careful. even if there is a rise in equities, you have to think about it from a pension perspective. we are constantly rebalancing and what are we rebalancing into that's mostly our portfolio. that's not super exciting if we are trying to hit our return target going forward so it's a big problem for us. >> elizabeth, it's david again, back to the big problem you talked about you have the bogey, i don't know what it is these days, 6.5, 7% how do you not just have -- how do you allocate so much of the portfolio there in this current interest rate environment? >> exactly that's the problem if you look at our portfolio we are not -- i don't think anyone is 60/40 any more. we are 65% growth
into more active strategies and getting extra yield where we can. a lot of oesoteric strategies we don't have access to there is places for opportunity. the cost of doing so is much higher and i think you need the right team in place to make sure you know how to execute on those you look back to 1900s, 60/40 up until 2020 got you to your bogey. but going forward, not only will that not get you there, it will get you negative yield returns >> phil, is infrastructure going to be interesting for equities at this point? looking at some of the -- your plays like united rental, a two-month high today how much is not already priced
in by the market it's been a long time for this bill to get in front of the senate. >> yeah, carl, good question not as much as you would think on the infrastructure side i think the other piece is, is infrastructure going to cause an increase in supply treasurys no, we think that treasury issuance next year is going to be about a trillion last than this year. think about that for a second. you can get infrastructure spending and less? that's a good story going back to financial conditions. carl, i'd say the biggest thing we are watching developing are the jobs reports the fed is making a big bent on labor slack. we are making a big bent that inflation is transitory because of the influx of labor supply and we get a q on this friday with the labor report. i think that's the biggest thing to watch the jobs claims numbers and the report for signs that the economy is reopening, labor supply is coming back and you won't see a persistent rise in
inflation. >> yeah, friday will be a big day. phil and elizabeth, thank you. as we head to a quick break, a look at our roadmap for the rest of the hour the federal moratorium on evictions is expiring over the weekend. we will speak with the ceo about that and just what the covid delta variant might mean for the real estate recovery. >> plus, retailers rallying. >> and who is david faber? all week long, do not miss david guest-hosting "jeopardy!." more "squawk on the street" continues in a moment. - [narrator] at southern new hampshire university, we're committed to making college more accessible by making it more affordable.
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bitcoin is digital real estate people are starting realize it's better than real real estate it's scarcer it's not taxed the same way as real estate. you can take it to any state, any country. they used to say you can't take it with you. you literally can take it with you to the grave if you want >> that was micro strategies michael sailor, about the benefits of holding bitcoin. his company owns more than 105,000 coins. and speaking of crypto, there is a new push by grease that could cause some unwelcome tax bills for trade ners the future. >> bitcoin under pressure today
and one likely reason is that that draft infrastructure bill includes a crackdown on crypto taxes that could raise an estimated $28 billion over ten years. there would be two big changes proposed here. it would impose mandatory tax reporting for any business handling crypto. right now it's largely voluntary. we have exchanges like coin boyce. they would have to report the flows of its customers and the prices at which they purchased and sold their crypto. now, secondly, it would expand the definition of crypto brokers saying that any business that facilitates the transfer of digital assets would have to report those transactions. which is why crypto lobbyists are fighting back hard against this the blockchain association saying the rules pose an imminent threat to the budding crypto industry here in america and they say the language could result even in crypto miners and
investors in crypto countries and exchanges getting affected they want this olympic village removed along with some of the other reporting requirements crypto exchanges argue, they say tax evasion is not that widespread so a crackdown wouldn't raise the expected revenue the irs chief saying in april that cryptocurrencies are one reason that uncollected taxes in america now total up to $1 trillion a year david. >> that's all taxes, right, robert that's not just involving the potential for revenue here >> that's right. yeah, that's the entire tax gap. but he says crypto is a big contributor to that. we just don't know how much crypto taxes go uncollected. a lot of crypto holders don't realize that when you purchase something with crypto, you have to pay the capital gains tax on the appreciation of the crypto that you use so some of it may be deliberate evasion. some may just be that people don't realize how crypto is taxed.
>> i thought it was odd, robert, when you said, quoting somebody that evasion is not a big problem, when evasion is evasion, so you don't know it's going on. >> that's exactly right. >> aside from that, you mentioned businesses that facilitate crypto transactions does that mean a company like a tesla that allows the purchase of a car in crypto, do they facilitate crypto transactions, so, therefore, need to report in some way >> yeah. and that's what the lobbyists for the crypto business are concerned about, that that language could mean that any retailer that accepts crypto, mines crypto, an investor in the crypto space could get wrapped up in this we haven't seen the official language when we see that, we will be able to see whether companies like tesla that accept crypto for their products would be subject to this. it's likely they would because, again, it is a transaction that involves crypto.
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china is looking for more communication with our s.e.c. regarding overseas listings. live from beijing, eunice has latest >> thanks, david yeah, china stocks regulator wants to have more communication and also more collaboration with the s.e.c. over the weekend the china securities regulatory commission issued a statement on its website where it said that it hoped that with its american counterpart they would be able to find a, quote, proper
resolution over these listings and this is after the s.e.c. had said that it was going to demand additional disclosures for chinese companies in the wake of the regulatory uncertainty that was created by beijing with all those crackdowns the regulator said that it had a couple of important points with the statement. the first is that china, it says, always is open to ipos at home and overseas, as long as they abide by chinese rules. that china supports dual listings, its regulations are meant to promote healthy industries, and china disapproves of decoupling. now, in seeking communication for what it described as a proper resolution, the watchdog added it hoped the discussions would be based on mutual respect. now, the chinese state media has been echoing the perspective by the securities regulator and likely, because one of the perhaps unintended consequences
of these regulatory crackdowns is that investors here in china have also been quite panicked about what they were seeing, not exactly knowing which sector was going to be hit next, and this really helped to calm things down, david. we saw the stock market rally again and people coming back in, feeling a little bit more comfortable, especially spa with the line about the regulations meantto promote the health of the various industries >> well, yeah. that has been the key. this seems to be at least somewhat constructive for the first time in weeks, something at least some investors here in the states could grab a hold of as a positive. but i wonder, trying to give some perspective to our viewers right now, i mean, what can you share in terms of the longer-term goals here that the chinese government has been trying to achieve through all of these different regulations that have, obviously, cost so much money for u.s.-based investors and chinese companies? >> yeah, i think the longer-term
goal is likely that the communist party does want to have a little bit of a greater handle on the private sector in fact, there was a circular several months back in which president xi jinping had alluded to that, that he hoped to the private sector and prime time entrepreneurs were going to be much more patriotic so the communist party would have much more of a handle on these businesses in the sector but from an individual sector basis, you can see that, for example, in food delivery there is the -- the issue was labor. in technology there is a lot of concern around data security so there are specific issues with individual sectors, even though there is in overarching concern from the communist party that perhaps it doesn't feel it has enough control over the operations of the economy. carl >> eunice, fascinating work, as we have been trying to understand what exactly is
happening in china the release regard to equities thank you. our "etf spotlight." we go to a break looking at the ishares u.s. consumer goods iyk adding to yearly gains the top holdings tesla, png, coca-cola. levi's today, a buy, they go to 38 shares are up more than 130% from a year ago. they are talking about a multi-year cycle in denim and a credible case, in their words of credible growth in six to eight. back in a moment folks the world's first fully autonomous vehicle is almost at the finish line today we're going to fine tune the dynamic braking system whoo, what a ride! i invested in invesco qqq a fund that invests in the innovators of the nasdaq 100 like you you don't have to be a deep learning engineer to help make the world a smarter place
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tesla, ralph lauren in there the laggards include target, which is interesting because it's been a stellar kmart for a long time. there have been a couple other valuation calls in retail specifically regarding e.l. to meg, she has the latest on the rising cases of the delta variant. good morning. >> if you look at where we are with the delta variant compared with just the beginning of july, it's really striking to see how the numbers have risen daily cases now averaging more than 72,000. that's up more than 400% since july 1st people going into the hospital more than 6,000 a day. that is also up dramatically since the beginning of the month and deaths are also up 40% more than 300 people dying of covid every day now here in the country. now, the infection rates across the country are spreading. you are seeing a lot more counties in that high and substantial transmission that's the red and the orange there, which are, of course, subject to the cdc's new masking
guidance this is increasing you can see 60% of counties in high transmission, 20% it, it's very similar to the wave it seems to be coming down in that part of the state even though it's going up elsewhere there is a hope it will move through quickly, but it's leaving a lot of damage in its wake if you look at florida, a record number of hospitalizations right now for the entire pandemic. they recorded more than 10,200 people in the hospital yesterday with covid that surpasses the peak that they hit last summer so we are this this crazy sense of deja vu, even with vaccines, that some states and counties with low valuation rates seeing
high hospitalizations. the one good piece of news here though is we are seeing vaccinations start to tick up nationally 30% week over week it doesn't seem like much when you compare it with where we were in april, but they are increasing and particularly, guys, in states that are seeing the most impact of delta right now. back over to you. >> meg, you know, we keep our eye on valuation rates, obviously. but crossing our fingers on things like therapeutics and moderna had news about an autoimmune therapeutic candidates this morning. where are we is that something we can hope for in the next six to 12 months >> well, the next catalyst we will see in terms of covid anti-virals will be merck's, which david knows a lot about. this is the pill that they licensed from ridgeback bio. they expect that phase 3 results to come in around october. we also are expecting data from pfizer on its completely new
anti-viral that it designed for the virus that causes covid by the end of the year. these would be pills taken twice a day for five days to try to keep folks who are diagnosed from getting so sick they go to the hospital this could be incredibly important and helpful. so we have to hope that those work but they are a few months away at least >> meg, thank you. mer terrell. meantime, the federal ban on evictions expired midnight saturday millions are at risk of losing housing. that's where we will 'start. brown harris stevens, beth friedmann. is it a concern in the new york area for people perhaps who are not in a position to continue paying the rent or have not been >> yeah, i mean, i think it's certainly a challenge. you know, the moratorium ends in new york at the end of august, and, look, the courts are really packed so i think it will take a lot of
time for those evictions to work through. there is $45 billion of federal aid and only $3 billion has gotten to the people who most need it. i would encourage state and local agencies to really try to work quickly and give people the money that they need so that families don't get put out on the street i think that would be terrible in this environment, especially with delta, the variant, you know, as you guys just talked about, ticking up. we don't want people to get sick, especially people who have children so i would just say i would encourage these state and local agencies to really try to get the money to the people so that they can have some relief and stay in their homes. >> all right bess, let's go back a little bit now, maybe a year or so. so many people, of course, new york is dead new york was never dead. never going to be. your thoughts in terms of the real estate market, which you could have argued might not be coming back to life anytime
soon where are we in terms of rentals and sales in new york city when it comes to real estate? >> great question, david you know, listen, the market, we just have closed our second quarter. it was historic. i would have never thought we would be in this place today people are coming back to the city the city is not dead people have said that the city is not safe to walk around i walk new york city every single day it is a very safe city historically crime ticked up during the pandemic we know that but that's expected. when people are desperate and they are struggling economically, they do things that are not in their best judgment but the city is back even rentals, which a year ago, the vacancy rate was something like 30%, now people are standing in line to rent apartments, they are coming back to the city. i have so many stories an agent had 35 people and that's not hyperbole 35 people interested in that apartment. so people are back the city is back our biggest threat it people not
getting vaccinated i would just encourage everybody to please get vaccinated if you care about teachers, if you care about nurses, get vaccinated it's the most patriotic thing that you can do for your country. >> so you got -- you cite in one of your quarterly reports this study from the partnership for new york city about returning to work 62% they found of manhattan's 1 million office workers back by september. 62 is that high enough? >> mine, that's a good start i'm requiring everybody to come back to work this september. and i think it's a good place. i mean, people are saying it was going to go down something like 90%. so i'll take 62 emerging market. and i think that's going to move up because people want to come back to the office people want to be together as i always say, you cannot build a culture from home doing zooms. you need to be together. i think it's going to be required of companies that really care about their workers and for their well being we need to be with each other.
that's how we work best together. >> bess, we saw during the pandemic a rush to the suburbs where to we stand? if somebody were thinking about investing $2 million in new york city or in an outlying suburb, and i know you have offices in places like connecticut, what would be the better return on your investment on that two million right now? >> melissa, that's so -- >> every place is different and facts and circumstances depend on the individual. you know, real estate is very local. and certain parts of the city, like the upper east side, you can still negotiate and get a good deal and certain parts of the suburbs. new york, actually, has ample supply there is a bottleneck of supply throughout the country but new york is still a buyer's market, although it's starting to switch a little bit i would say new york city is a great place to invest right now. the suburbs there is not a lot to buy because the demand is so high and prices have ticked up so i would say new york city,
certain parts of the city, brooklyn, there are great places to invest right now. >> i wonder though, bess, because certainly the cohort that i know well seems to be leaving still. whether it's quality of life to some extent. not really public safety as much just overall and/or, importantly, income taxes. they are making a chasoice to n be in new york as often. who are these people lining up to rent these apartments or buy these apartments >> you know, there is a variety of people. they are companies requiring people to come back to work, who have to be here for september. there is a lot of students coming back. look, new york city, people did leave the city and go to the suburbs or lower tax states like florida, but we have a new leadership coming in we have a new mayor coming in. there is a new sticandidate whos going it work with all the communities and work with the city council and try to create a more positive political fairtive it keeps businesses and people here, companies here
so, yes, i think things are shifting a little bit, david i think you are seeing a lot of optimism it's abound in new york city i think people will want to be here broadway is going to open up soon there is no place like new york city, david. we know tharjts i do, i do, but not without challenges, including that $99 billion annual budget. bess, always a pleasure to have you. thank you. >> thank you, david. have a good day, everyone. time now for an olympics update rahel solomon has that. >> good morning. and here are the top stories team usa gymnast jim cade carey taking home gold after the event she told hoda kotb winning gold was, quote, everything u.s. soccer team lose ing to canada it ended their hopes of winning a gold medal, although they have a chance at the bronze poland is grant ago buell
russian center a hugh humanitarian visa after her home country forced her to go back home she forced to board the flight saying she feared arrest she criticized her coaches for registering her for the wrong event. and simone biles returns tomorrow for the balance beam final. the event will be her last chance at winning gold in tokyo after withdrawing for most of her other qualifying events due to mental health issues. and on the medal scoreboard the u.s. with 64 china 62 russian athletes are third with 50 you're now up to date. carl, back to you. >> thank you very much. a check on the markets as we go to break. shanghai up 2% overnight, highest since me, the best day since may, and the dow an rd high of its own we will watch that we'll be right back. ar
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matching your job description. visit indeed.com/hire active consumers on an annual basis together we can create a more powerful commerce platform connecting the two. >> tshe joined us in the last hour discussing that $29 billion all stock deal to require after pay. it's workth more than that give that substantial jump. cash app gross profit grew 90% year over year, but afterpay is the quicker grower, valued at 35 times 2022 gross profit. >> higher on the back of this deal cramer asked that question, why
not affirm, and the afterpay ceo said effectively it's the culture. it was a better fit to go with square but certainly raises the profile of affirm as a potential takeout target also it underscores the value tha lies in a firm, especially for incu incumbent lenders out there. >> it's fascinating, the buy now, pay later trend household balance sheets have hardly ever been stronger. you wonder why a consumer would need to pay for something over time clearly, you can't argue with what consumers are doing. >> no. some of the bigger -- you know, some of the bigger-ticket items, perhaps, more nicer to do it in four installments. he did point out if you miss one, you get cut off and that is sort of the way they deal with people who perhaps are not in a position to pay them back when they are supposed to. >> this it tackles the demographic. younger consumer with no credit profile. this is done on the spot with to credit check
if you don't have a credit card because you are a younger consumer, you might be able to do this. so this is a whole demographic that i'm sure a lot of incumbents are salivating over there was a bloomberg report in july that apple and goldman sachs are teaming up to do a service like this as well. so this is definitely a way that lenders, traditional credit, they are looking to get into they are looking to figure out, like, how we make money on this? this is a growing $10 trillion part of that loan market. >> there has been discussion on the street this morning about whether square is importing credit risk because of the size of the loans on afterpay's books. and how much of your business is one client or one vendor are you looking at a firm's relationship with, say, peloton, and how over time that has given ammunition to the skeptics. >> speaking of buy now, pay later. don't miss clarna. that begins at the top of the
the show must go on. broadway announcing the covid policy for reopening requiring all audience members to wear masks and show proof of vaccination. that policy said to be in effect until october. joining us to discuss the decision, the president of the broadway league, charlotte st. martin thanks for your time it's good to see you. >> thank you great to talk you to. >> i want to talk about masks and protocols in a moment. just in general, in terms of whether shows reopen at all, have all of these concerns about the delta variant in recent weeks, is that a threat to the reopenings planned for early september, let's say >> what i would say is the delta variant certainly made us rethink opening in our previous way, which was requiring vaccinations, but not masks. so we don't think it will stop us from reopening, but it will
just make us be even safer with the new protocols. >> as for the new protocols, the masks and the vaccine proof as we mentioned, some wonder whether that is a deterrent to someone who wanted to see a show others may argue it's encouraging for those who would feel, arguably, more saf environment. how do you think the theatergoer psychology is going to work? >> well, we were not sure, but if this past weekend is any indication, what i will say is there is overwhelmingly positive response to the requirement. i would say it is a 90/10 positive versus 10 negative. we heard from people saying we were waiting a bit before we bought tickets and now with this we're definitely buying tickets right away that's a good thing for our shows and our producers and theater owners. >> is springsteen a good case study here how is that working out?
>> certainly springsteen is always a good case, and his requirement of proving you were vaccinated was certainly a very important step he did not require the masks, but with the delta variant, things changed >> right of course, the other angle is international travel and a lot of people who argue you can't get back to houses at full capacity until some of these restrictions fall. there were some hopes that was going to happen the last couple of weeks it has not happened yet. how are you thinking about that right now? do you see that dropping anytime soon >> actually, we were planning on the international travelers not being here quite so quickly. history has shown when international travel goes down, domestic travel goes up. and if you think about it, that's kind of logical if people aren't coming here, people here probably aren't going there.
so we have planned on a year, maybe a bit more, for the international travelers to be back full force. but we are expecting great domestic tourism >> charlotte, what is your read on the confidence of theatergoers are they buying tickets way in advance or are tickets mostly purchased closer to the performance dates? >> well, again, that was a nice surprise when we announced our opening dates, we were surprised because that was at least 90 to 120 days out with the amount of tickets that were bought immediately. certainly there was pent-up demand for those tickets but it continued today mostly because of the internet, people tend to buy tickets closer in because their travel plans may change, their business plans may change, so we have been very pleasantly
surprised at how many people have been buying tickets since we announced our september openings. >> given that, what are your expectations for later toward the end of the year in terms of how many theaters are going to be open, and producing a -- and having a production every night? >> well, fingers crossed, right now we have 36 shows that have committed to open or reopen by the end of this december so that's about what was playing when we shut down on march 12th. and so we are expecting a very busy successful fall >> finally, charlotte, all of the ancillary services, theatergoers need, restaurants, enough hotels to stay in, is that going to develop, do you think, concurrently with broadway's reopening or do you think -- are they tracking a little faster than you had hoped? >> well, actually, i think we're tracking together. certainly the restaurants and
hotels in the times square area are very anxious for us to get open the head of the hotel association of new york said we're not really open until broadway's open. so we're opening this week and that's a good thing. everybody will be back to work or at least large numbers will be back to work. >> you got a lot of people rooting for the league and broadway in general and new york's recovery. charlotte, thank you appreciate it. >> thank you see you at the theater now let's get to dom chu >> see you at the theater indeed stocks are higher to start the day with most sectors trading in positive territory led by gains in energy and financials as you can see here meanwhile, consumer staples are lagging, still hovering near the flat line about .1 a mix of names are leading us higher including goldman sachs on the banking side. the regional banks holding up
well with names like key corp., m&t and the gainers out there. one of the etfs that tracks the names, kre, is starting to strike this month off on a better foot after declining for two straight months. over the last month, the financials had been one of the worst performing sectors in the s&p as interest rates have generally trended lower in that time span. if that trend continues, there may be renewed pressure on the banks and insurers despite today's gains. keep an eye on that. i'll send things back down to you folks at the exchange. >> thank you, dom. let's look at the biggest gainers on the nasdaq 100. tesla is leading the way right there, up over 5%. we'll be right back.
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as you remember, alex trebek in that clip. >> yeah, he was, as i said, there are only a handful of people that can understand what is required to try to do a good job in that position i watched a lot of trebek. i met him one time on the show, but i certainly watched an awful lot of him and can appreciate just how good he really was day in and day out. >> what was the best piece of advice that you got going into this stint >> it was to just focus on the contestants and try to keep a good pace for the show >> to be in the moment. >> to be in the moment you can't -- there is no -- even here we can -- we can take a brief moment to look at our phone if we're texting on a story or whatever it may be, to think about a question no time there at all, melissa. you have to -- you cannot let your attention for one second drop >> you had a good run on
"jeopardy" yourself. did you know all of the qu questions during the show? >> i did not know the correct responses to any number of clues that i was actually dealing with of course, they give them to you on a big thing i tweeted out a picture -- >> giant all there. so i did know them going in. >> look forward to it david. >> please, hope everybody will tune in. that will it do it for "squawk on the street. "techcheck" starts now good monday morning. welcome to "techcheck. i'm carl quintanilla with jon fortt and deirdre bosa back at one market today jack dorsey decides to pay now more on square's $29 billion acquisition of after pay then more disney drama as streaming continues to