Skip to main content

tv   Squawk on the Street  CNBC  November 1, 2021 9:00am-11:00am EDT

9:00 am
the noose gab futures up by 28, but remember all three of the major arches closed on report levels on friday that about does it for us today. andrew, back here tomorrow we will be back, and i think joe will be with us. it's time for "squawk on the street." good monday morning. november begins and the futures hold up, we will get record high, a big week ahead futures point to a higher open as investors bet a more gain. there's a shake-up at barclays this following an investigation
9:01 am
into staley's previous relationship with jeffrey epstein. american airlines cancelling more than 1700 flights, the latest mass disruption as carry es struggle to handle a rebound in demand. markets, though , 19 times over 70 year, people bought into the disappointment, but look at apple. i think there's some things going on in the autos. i'm looking for the autos to be able to get some supply in 2022. that could be very big, i mean, with the exception of tesla.
9:02 am
i've actually never seen a stock go when did we see a stock like tesla? >> oh, come on, your snowflake thing, remember that that was summer or fall of a year ago >> there were some positive headlines last week about hertz, but you're right, listen it's a market, now it seems as though people's imagination is being marked again, jim. >> if you go to adam's piece thor, our favorite stock is ferrari. pricing power, he's saying there's a two-year waitlist.
9:03 am
>> this is the great pricing power. i happened to love best brand this is a must read. >> moving -- have you ever driven a lucid >> what did you think? >> it was very nice. i don't think it has -- that -- lucid is purely luxury ev, with great mileage in terms of off the charge we know that, but that's what it is, as a fairly high price point. they're starting to deliver their dream edition but that's the same market value of ford. >> okay. >> you're doing that >> yeah, i'm doing it, because it's true.
9:04 am
>> i have to turn away from you. you're ridiculous. >> why am i ridiculous >> maybe you're saying lucid's price is ridiculous. >> i'm saying that ford -- >> did you say yes you said yes. >> yeah, look, lucid, i love the lucid, but ford had as anime heing quarter. they instituted a dividend >> ford han an incredible call. >> thank you very much. >> you're welcome. >> exboosted its different. >> a lot of this, too, the jonas note is about valuation. >> we need more jonass jonas is thought provoking you know, i think what he does is gets you to think, okay, you want ev?
9:05 am
how about quality ev i think that i was very -- >> i hear you. i hear you. >> are you buying what i'm selling? >> back to europe original point on tesla, the stock was $800 in the middle of october. here we are now at 1114. so that's about $314 billion, it's pretty easy -- $314 in market value -- >> how many fords is that? >> at least two in one day last week. >> it might be about five. >> it's part of an ongoing debate whether they will ever face competition piper's point is that all the model to date have not made a dent, but roth said last week, for example, the idea they're never going to face a real competitor is specious. >> i think the idea they won't
9:06 am
be able to go up again the ford electric truck is significant. unfortunately gm left a lead balloon. ford is still on a rampage >> but lucid is going to be a competitor at the high end rivian will be a competitor. ford has a big slug of rivian. >> amazon also owns a good amount of rivian will will be coming public. >> we're five minute into his a new months, and we're all talking about evs. there are people who have abandoned, say, index funds, and they're geniuses >> unlike active managers who
9:07 am
are nots because i guess they didn't buy enough tesla or enough alphabet, because most active managers are trailing hedge funds, by the way, had a rough month from what i understand they were certainly not up 7%. >> why don't they own tesla? is that so hard? >> because if you want to live in the land of fundamental valuation, it's somewhat hard to argue you should buy tesla. >> alice in wonderland, fantasy island. there's a piece out today that a lot of toy makers are worried about gluts, double ordering, and maybe a fresh look at -- >> mattel doesn't seem to be worried. >> why not
9:08 am
>> they have a lot of supply, what they need they do. there's an important note how costco, target and walmart will have what you want i think that's very important. these companies don't miss i think those stocks will go still higher i'm in awe of costco here. >> we talked a little bit last week about the largest players, home depot, lowe's and that world are able to manage their supply chain a lot better. >> cost to, 475 to 5, big box reta retailers. >> i've been to a target in the last few months. actually, i went the other day i was looking for something, didn't find it i liked it
9:09 am
>> didn't john oliver do that with me enough already already will have. >> i know you took note of morgan stanley's mike wilson, eps slow youing, fed tightening, risk of consumer demand flattening and said this could last until thanksgiving, but not much longer than that. >> what a party pooper he is ever since he went any tiff -- i'm going to leave it as he's a nice person. koston comes up with new stuff i think koston is more on the bullish side >> they were looking for eps growth, and now they think obviously it's not going to be that bad >> look, i got to tell you, i
9:10 am
literally think in we're some sort of bizarre halcyon period actually the last six days of october have been terrific i hesitate to even see -- i mean when -- reports a great quarter this morning, and by the way, we have nxp after the close they have chips, they have what you need maybe they give you a senses we should be out of this morass of semiconductor build. there's no companies that you read about that are not affected by the semi shortage >> but on the same day u.s. steel said we're delighted to hear from auto customers >> if you have one semiconductor piece missing, you can't ship.
9:11 am
>> meanwhile, amazon complained specifically about the cost of steel being one of the key drivers of why it's spending more money. >> how about the idea that europe will ship more steel here, not much you look at the fine print. >> watching harley this morning. >> how about that? these are the bizarre tariffs put on by presumption. remember the whiskey tarch >> right i do thoughts are being lifted in the eu >> the promise is the demo is me i go there to feel young >> if it is you, you should have a ponytail >> the one on route 10 is fan fastic.
9:12 am
>> barclays says that jess staley is stepping down as ceo good morning, wilf. >> good morning. barclays' ceo stepping down after the bank was made aware of a probe by the regulators into the way he described his relationship with sex offender jeffrey epstein. the fact that staley has decided to coast the regulators. the results of the investigations have still not been released, and this latest development took both staly and barclays by surprise they did not know the conclusion was due imminently barclays' statement added, quote, it should be noted that there's no finding that he saucer was aware of any
9:13 am
epstein's crimes, which was the central question staley will receive his base pay of 2.4 million pounds and pension for 2021 still that support from the board was something mr. staley referred to when we last asks him about this in june of 2020. he will be replaced by a barclays lieutenant to maintain a banking presence guys, everyone is now bracing for the report understanding why it finally reached its conclusion was it simply they took their time, or was there in some piece of information that came to light? we have not seen the report, but it suggests the former case, but
9:14 am
we await the full report now >> barclays stock is doing quite will i think during this point in brexit, we wouldn't have expected that. doesn't it not skip a beat >> reporter: the interesting things is they just reportsed how it highlights how blindsided the company and staley were. it was a very upbeat earnings call, and obviously this didn't come up at all the biggest quest and he's faced threats try to go change his strategy, not just trying to question some of the wildcard aspects of his leadership, wanting the bank to pivot back to a retail, uk-focused back he's wanted to build that presence in the last year or so, results have proved that that was the
9:15 am
right strategy i think the fact that one of his lieutenants, a fellow jpmorgan alum who came over in 2016, who prince part of the investment -- shows that the board at least backed that strategy. >> wilfred frost, thank you for that >> we remembered day the appointment was made people got excited some people are saying momentum of the turn has stalled, but ryan -- what do you think? >> the stock is still there. >> between barclays and gamestop, which would you rather
9:16 am
own? >> i don't -- >> the answer is gamestop. >> thank you >> i think the banks are so strong, this is just their moment they're no ferrari >> there are some calls on b of a, which we'll talk about. spotify, starbucks, trip adviser. we'll kick it off in about 15 minutes. that's the thing about claims, you see. they don't happen on your schedule. i mean, take a chestnut, it doesn't just say “oh, beg pardon, sir, but is now a good time for a jolly bit of window cracking?” i mean, if they did, you wouldn't need a geico claims team that's available 24/7. but, near as i can tell, chestnuts don't talk. or maybe they're just really quiet. geico. your claims team is here for you, 24/7. well, got things to do mr. chestnut, so...
9:17 am
there is something i want to ask you. um... geico. your claims team is here for you, 24/7. the new iphone 13 pro is here, and when you get the new iphone at t-mobile, trade-in value is 'locked in' forever. we can always have a new iphone, forever? fall in love with iphone. when you get one now, you can upgrade every two years forever.
9:18 am
in business, setbacks change everything. so get comcast business internet and add securityedge. it helps keep your network safe by scanning for threats every 10 minutes. and unlike some cybersecurity options, this helps protect every connected device. yours, your employees' and even your customers'. so you can stay ahead. get started with a great offer and ask how you can add comcast business securityedge. plus for a limited time, ask how to get a $500 prepaid card when you upgrade. call today.
9:19 am
more travel trouble for american airlines. it's canceled at least 270 flights this morning, according to flightaware american cited poor west and staffing shortages we've been through with this southwest a couple weeks ago jim, you were pretty tough >> there's the perception that the southwest is not the old southwest, but there's an investigation of pilots going into a chant, that i don't want to get into, because it's so -- i think ryan air had pretty critical comments about boeing, saying it was delusional
9:20 am
oh, leary, delusional. >> i've been fascinated by your ability to navigate boeing, even though you really don't like it very much, yet you continue to own it -- is it -- >> same thing. the investment club recommends more than i can. >> you actually own -- >> mites charitable trust owns it, because i generally believe the chinese are -- >> you don't recommend. >> i just have a hold to i am waiting for the big chinese order. >> you asked calhoun about that last week. >> yes, i good -- i do think that, look, we just made deals in europe. anything can happen. come on. >> but xi didn't travel there. >> yeah, xi is kind of intransigent. >> number one emiler of carbon,
9:21 am
you would have shoppe he would be there. >> but they are doing a dual mandate for the olympics. >> at the same time they have power supply issues in china and building a lot of coal plants to make up for it, because, again, that transition can't happen overnight. >> coal is on awful. >> how did tom friedman put it -- you have to keep your belt on before of the suspenders? >> germany has a lot of coal we're the only ones shutting down coal. norfolk -- no one was ready for what's been happening. i was going to wear a suit for hall halloween, but decided it was not that special. >> some kids dressed up as you wearing suits, i think
9:22 am
>> i'd like to see kids go as cramer. >> there was a woman once who went as cramer. >> really? >> yeah. yeah >> we'll get the real cramer and the real mav dash in a moment. back in a moment this is the new world of work. each day looks different than the last. but whatever work becomes... the servicenow platform will make it just, flow. whether it's finding ways to help you serve your customers, orchestrating a safe return to the office... wait. an office? what's an office? or solving a workplace challenge that's yet to come. whatever the new world of work takes your business, the world works with servicenow. esg is responsible investing. who's responsible for building esg into your investments?
9:23 am
at pgim, the pursuit is on for outperformance. as active investors, to outdeliver with customized strategies, integrating esg best practices into our investment decisions. as asset managers and fiduciaries, to outserve, with our commitment to better esg outcomes. join the pursuit of outperformance at pgim. the investment management business of prudential. ♪♪ ♪♪ ♪♪ unconventional thinking means we see things differently, so you can focus on what matters most. that's how we've become the
9:24 am
leader in 5g and a partner who delivers exceptional customer support, and 5g included in every plan, so you get it all. -hey, fridge, -hey. did you know autotrader lets me shop for cars by monthly payment, so i know what i'll pay before i buy. cool. was that a refrigerator joke? kenan, chill. alright, just stick to making ice. i didn't mean right now! tesla is going to lead your nasdaq 100 gainers this morning, once again on no real news,
9:25 am
1100.39. we will get the openg llinbe in five minutes don't go away.
9:26 am
you're a one-man stitchwork master. but your staffing plan needs to go up a size. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit (rhythmic electro rock music) (crowd cheering) - bito, bito, bito, bito! - [announcer] bito, the first u.s. bitcoin-linked etf. as an independent financial advisor, (crowd cheering) -i stand by these promises: i promise to be a careful steward of the things that matter to you most. i promise to bring you advice that fits your values. i promise our relationship
9:27 am
will be one of trust and transparency. as a fiduciary, i promise to put your interests first, always. charles schwab is proud to support the independent financial advisors who are passionately dedicated to helping people achieve their financial goals. visit
9:28 am
>> announcer: the opening bell is brought to you by -- let's get to a mad dash, and we'll count you down to the opening bell as well we had kevin johnson join us on friday after starbucks reported earnings why today? >> steven upgrates it, and talk about the market being shortsighted about the wage increases, it could frankly mean that the competition will frankly lose, because starbucks has been able to maintain the employees and have the growth. i think a lot of us go to these stores, it's understaffed, a lot of restaurants are understaffed. a lot of restaurants have different hours now. i think what he's saying is it's short-sighted to think this kind of money in the pocket -- don't forget also col-- it's going to a competitive advantage. >> think announced by next
9:29 am
summer, they could be earning $17 an hour, a barista perhaps as much as $23 an hour you were talking about an investment year, and he didn't seem to want to say that. >> yet the cfo really went heavy investment here, heavy as a theme. what happened is, you know, investment years is something you say, you know, we need some time kevin, who has done a perfect job, is saying, ignore the man behind the curtain it's going to be fine. i think -- they can take share from other coffee shops, they're also doing a lot good stuff technologically. i was surprised the stock got hammered so badly, because the numbers are roughly in line. >> what's wrong?
9:30 am
>> i like to be able to hear you guys it's something i learned when i was little. >> this is nothing compared to the usual crowd. >> i just forgot it's monday, you know, i had a squid-like weekend, and suddenly here we are. >> let's get to work there's the opening bell [ bell ringing ] >> energy storage company celebrating its recent -- >> the story is on the story is on semi, because on semi is very much auto auto is up we need to see these automobile companies get all that it has. they need chips from everybody global foundries is going to be very important for the autos it's a gigantic deal
9:31 am
i have geneina raimondo on toni. >> smith made one of his names at starboard they liked it a lot. >> it's just a good combination, and -- >> you have gina raimondo tonight? >> yeah. >> most importantly she is leading the charge to get that $53 billion out of congress to start building fabs, in part because the idea that maybe we shouldn't be so hostage to taiwan, taiwan being a place -- >> understood, but it still takes time. >> we want to push it so it doesn't take so much time. >> how do you do that? doesn't it take a few years? >> a few years it doesn't matter.
9:32 am
we want to get the equipment let's get it going here. >> as far as the labor shortages go, secretary yellen did say that labor force is still 5 million short of pre-covid she think as lot of that is fears of covid and child care. >> i think she's right. >> we'll know more on friday >> we still continue to hear that people are afraid to go to work. >> i don't believe that. do do you believe that? they don't want to go to the office listen, there may be people who dan want to actually return to the workforce, as carl said, in part because of the child care, though i think all schools are open at this point. >> how about the backlash about millennial >> now you're at the point where children 5 to 11 can be vaccinated very soon other antivirals will potentially be available as
9:33 am
well caseloads are down across the country. >> daily vaccinations were 2x a week ago. >> then where are the people what are they doing? >> a lot of them might be doing gig work, starting their own businesses. >> that's going along with trucking, two, three, trucking company started by two, three people i do think that we've got in -- >> that's also been the story -- >> how do you eat? >> the great resignation, you hear about whether it's real or not, but it does appear there is some -- >> where is the money that comes from it to sit at home and not work >> to that point, the saving rate is now back to 7.5, lowest since december of 19. >> so they're spending. >> so they're going to need income at some point no more sitting on the nest egg. >> and i'm still focused on the millennial rebellion.
9:34 am
>> what is embodied by what? not coming to the office >> it's twofold. one, they wear whatever they want, and two, they work when they want. that's not the way it was when i was growing up. >> no, nor when i was growing up, but it is the way it is now. no traffic on fridays, but they're working just as hard at home. >> that's the world we live in and likely will be living in this is still an experiment in terms of people not working from an office regularly. we may readjust, but for now it's the way it's going to be. >> which is one reason why trip gets a downgrade. >> the patterns are unusual. plus given what phil says, maybe your flight's not ready when you get there. >> we've talked a lot about business travel. it's hard to imagine it will ever come back to what it was pre-pandemic. >> other than tesla is anything working? >> we have new highs on every
9:35 am
major index. >> everybody has supply problems i'm still stunned by that apple quarter. yeah, so what? it will get the 13, when you get to 13, who cares no i mean, that was -- the quarter was amazing, but the fact that apple can't get chips? who's getting the chips? pepsico? >> they have a lot of chips. >> too many. are you a believer i think it's 54 days to christmas, as of today there's a lot of talk about gift cards being a much bigger deal, and then physical retail, people are searching for the terms open near me, as people say i'm not going to wait for this amazon box, i'm going to go down the street. >> unbelievable kohl's was
9:36 am
packed packed. >> then you have this issue, is it worth advertising when you don't have any goods to be selling? that is an issue that seems to be concerning some as well >> so what's the ipo that is most exciting to you >> the one that's coming >> no, in the last year, what's your favorite ipo? [ laughter ] >> i don't know. >> dutch bros. >> i was going to mention it when you mentioned starbucks as your mad dash. >> i need you to look at dutch bros they may have a competitive disadvantage. >> it's up another 2%. >> it's the annihilator. when i used to see my daughter, i would leave the show on friday, fly up to oregon and see her, and have an annihilator. >> what is in it, jim? >> more than what's in bodyample
9:37 am
-- bodyarmor. >> today 5.6 million. >> what do you make of it? >> nothing more than an opportunity for coke to try to compete against pepsi. >> i have the g2 after a workout today, wow, that's one special group of chemicals frank mitch could cover that, the chemical analyst i don't think that g2 should be covered by -- >> it's not a beverage. >> no, it could be covered by the people who have supply-chain problems i think it's made in the southeast of america >> you know, looking at america, facebook is the only one -- well, tesla obviously is up.
9:38 am
>> facebook? >> it's up 2%. >> facebook? >> yes >> after last week. >> no, that's a -- >> no, meta. i'm sorry. i forgot do i real ly. >> you're going to go in the metaverse with me. >> right now it's still facebook. >> i'm telling you, i went back over that video, you've got -- >> it really rolls off the tongue. >> i'm going to go surfing with you and mark. >> really? in the metaverse. >> mark is quite a surfer. >> i saw that thing on july 4th. that is impressive. >> dyswhat eric shall mid said in maureen dowd's article? >> not necessarily the best thing for society. that's eric schmidt. >> he was basically saying the mate ricks is coming
9:39 am
he agrees with musk, it will be out of control, and we're all -- >> he's number 457. >> we're a living in pods providing energy to the machines >> the matrix? >> no, the squid remember 456 >> i watched the entire thing. it was equally disturbing. i didn't get from eric schmidt to "squid games. >> never mind. crypto has news today. morgan stanley launching coverage, jim, with a big -- >> i've got to take that home. it's less than "war and peace. can we say we've had the big credit card companies, no one is actually using ethereum to buy anything they're not. they're an investment. by the way, can we go back to
9:40 am
robinhood? >> that reminds me of amc, which says october was the best month in 20 months. >> and he's not come back to me, kind of a disappointment. >> adam has been embracing -- >> never mind, he just gave it to me. >> that market value stays right there at 18-plus billion gamestop, as we said earlier will go -- >> even though jenna left? >> they got meme'd and never got unmeme'd >> mess h-- >> we call it meta platforms inindividual contrawas quietly one of the best performers last week, jim, in part because i think we talked a lot about the
9:41 am
metaverse, and you talked about jensen -- >> jensen was first with m meta metaverse. >> he's talking about the world being a better place, because if you're lonely, where there's so many people who are lonely -- i don't know if you saw that special thisweekend, depressio one of the great hopes could be getting in a a room and being with people, even if they don't exist. >> it will be a brave new world. no doubt about that. record highs on the dow, record highs on the s&p, record high on the nasdaq we'll keep an eye on the bond report as we obviously have a fed meeting, along with the jobs number on friday here's a look at the indices we'll keep an eye on the ten-year, at some point. we'll be right back.
9:42 am
i'll shoot you an estimate as soon as i get back to the office. hey, i can help you do that right now. high thryv! thryv? yep. i'm the all-in-one management software built for small business. high thryv! help me with scheduling? sure thing. up top. high thryv! payments? high thryv! promotions? high thryv! email marketing? almost there, hold on. wait for it.
9:43 am
high thryv! manage my customer list? can do. will do. high thryv! post on social media? hash-tag high thryv my friend! get a free demo at
9:44 am
9:45 am
welcome back to "squawk on the street." rick santelli here with breaking news we're awaiting the october final read on market manufacturing, pmi, expecting 59.2, the mid month read, but we lost ground the final read will under up 58.4, which happens to be the lightest read of all of 2021 as a matter of fact, to find a lightest read than 58.4, you have to go to december of last year we have the ism manufacturing indices coming out at the top of the hour for a comparison. right now we're up a handful,
9:46 am
five basis points in ten-year note yields. "squawk on the street" will return after these messages. don't touch that dial.
9:47 am
hey businesses! you all deserve something epic! so we're giving every business, our best deals on every iphone - including the iphone 13 pro with 5g. that's the one with the amazing camera? yep! every business deserves it... like one's that re-opened! hi, we have an appointment. and every new business that just opened! like aromatherapy rugs! i'll take one in blue please! it's not complicated. at&t is giving new and existing customers our best deals on every iphone, including up to $800 off the epic iphone 13 and iphone 13 pro.
9:48 am
a lot of headlines regarding
9:49 am
the treasury secretary this morning, as she is in europe she did tweet she met bono, who of course has done a lot of work regarding climate in the last, say, 20 years with a bit of ode to his letteyricsism >> yeah, i mean, look we're over there with a total charm offensive, a redo of what we did before i think it makes it so that europe and the united states are closer i think it does matter, by the way. i think it matters for world commerce we want to get along with them we have to influence them, too. >> we want to get them away from gas prom, and toward southeast american liquid gas. >> if we only we are better at
9:50 am
exporting it. >> well, you know, it's at a high, nat gas. we do need -- but it's difficult. it's a major, you know i think we -- i don't know if you've been down went down ther be shocked that part of the country is still booming. >> yes >> they go to work there. >> we do export 15 to 20%, right? >> well, we have to do more. we have what we need so we can export not like australia where they sign all these contracts and ran out. >> we got 4606 on the s&p. to bob this morning. >> i wonder what bono was showing her there. she knows a u2 record "it's a beautiful day. we're at new highs essentially, s&p, nasdaq as well, dow jones industrial average, and it's being led by banks which are back again doing well. nice move up for them. energy is also good with the oil
9:51 am
near $85 consumer discretionary is on fire i mean every day for the last several weeks it's straight up a rocket tech is lagging because semiconductors are down but not dramatically so. moving the markets just an awful flurry of activity and interest. very busy weekend here the key for me the margins still remain high on the s&p 500 12.5% after record 13.5% in the first and second quarters. that's why the market is holding soup well. there's a lot of debate again not settled over whether supply chain issues are peaking i think they are in automotives. the yield curve flattening short term coming up, but the longer term, not going up much that's not good for growth overall and we want to hear from the federal reserve this week. ford last week came out and said semiconductor supply chain issues were easing a little bit. that's a real key right there because remember the downturn in the supply chain had all started with the automotive sector
9:52 am
when ford made that comment -- sitting near seven-year highs on ford -- that was a turning point for the supply chain debate regarding some of the semiconductor issues people are optimistic because, well, partly calendar. we're entering the seasonably best three-month period of the year, not only the best of the year, going out of the worst three-month period november to january traditionally the best three months of the year this goes back to world war ii i thank my friends at the stock traders almanac for giving us this information we're coming out of the worst into the best, traditionally down that didn't work this year the end of october a nice rally, up almost 4% for the three-month period regardless you see other periods like february to april, march to may are all good this is that six-month period which tends to outperform the markets. finally just want to note, we've heard for months now, active managers saying once we get the numbers in, you'll see active
9:53 am
management outperforms in periods of high volatility they make this claim all the time we had numbers recently. the last couple months from morningstar and s&p, indicating that is not the case there is no real change going on here over a one-year period for the last year, 47%, not 75%, that's a typo,47% of fund managers, active managers, outperformed their benchmarks over ten year periods, only 25% and large cap fund managers over very long periods, 10 years, only 11% out perform. david, the problem here is, there is no evidence that active managers outperform passive managers, passive indexes in the last year and there's certainly no evidence they're outperforming over much longer periods of time. back to you. >> i read your story yesterday with great interest, bob and actually noted it this morning as well. yeah. active management and by the way, terrible month for hedge funds too is what i understand the october numbers people have
9:54 am
seen them tell me. nowhere nears the broader market return >> yep the one exception, david, bond fund managers did dobetter we'll have jerome snider from pimco. they can take more credit risks than the index funds bond fund managers did do better in the last year. >> okay. bob, thank you >> interesting bob pisani. >> shares of discovery having a rare moment which is up over4% been following this company closely as it continues to move forward in its deal to merge with the assets of at&t, essentially warner media, and will become warner discovery got an upgrade dan was singing praise at bernstein. we believes the linear tv business the source of all free cash flow will face headwinds. meanwhile the integration and rationalization of discovery and warner media discovery from linear and screening is a massive, complicated, management
9:55 am
task investors don't know how the sbinds company intends to go to market but this stock has fallen a lot and the valuation makes it more compelling. a market perform but that's enough to get it moving up 4%. >> i thought the piece was good. setting you up for a chance to buy. the stock has really fallen. >> those are the concerns of shareholders the linear part of the business, what will it look like in terms of hbo and discovery plus their direct to consumer and then the five times leverage they will deleverage very quickly. that's going to be a key discovery will report earnings later this week. >> i like the call i like it. i've been negative right. >> yeah. >> and value added. as opposed to lockheed martin downgrade today, thanks for nothing. right. >> we're going to get to interesting nice mix of earnings this week. roku and pins and peloton. >> pins, of there a neutral. why would you start wright neutral. neutral. >> let's do stop fragds.
9:56 am
>> crowd strike. this morning btig says there is competition going. downgrade to neutral if you are in the cyber security it's just been such a great time so this is the first chink and when i looked at this, i said, maybe the easy money has been made and it's been just an amazing period i still like palo alto networks, but we've seen some let's say there are many companies into this, only a matter of time before they start bumping into each other i like this piece. good job fighting large numbers, incremental gains, moderate. those who have hidden in cyber security, this is a wake-up call that perhaps you're getting late in the in stocks that sell. >> these guys went public it's a $63 billion market cap >> look, everybody needs these companies. we know that i think the world of george curtis he's terrific. i have to tell you, if you want
9:57 am
to be in this group, you're going to have to have on prem and cloud. you can't just be one. cloud strike is cloud native and palo alto has both they're on prem and cloud. and tonight what a special show we have. gina raimondo, secretary of commerce, gxo and ben gliklich. >> sir martin franklin >> what a show >> haven't seen martin in a while. >> just getting started. >> today seems so benign doesn't it seem benign benign day >> benign? >> by the way, you can get the c me investing club. sign up and find more at club or use the qr code that we put up on the screen for you all-time highs at the open as we said and the dow crossing 36 k for the first time don't go weigh.
9:58 am
9:59 am
[uplifting music playing]
10:00 am
♪ i had a dream that someday ♪ ♪ i would just fly, fly away ♪ welcome back to "squawk on the street." rick santelli live with breaking news construction spending for the
10:01 am
month of september expected to be up 0.3% it's a miss, down minus 0.5% that is the first negative number and the weakest number since february of this year. now let's move towards ism manufacturing for october. 60.8, stronger than the 60.5 expected follows 61.1 let's look at prices paid. 85.7 85.7 that's the highest since we had the high watermark in june which was 92.1 yes, we're seeing hot, hot, hot, when it comes to prices. new orders, new orders moving the wrong way. instead of a 64 handle, we're under 60 59.8 that's sequentially follows 66.7, and it's the first time that we've been under 60 since june of last year. finally, we look at employment,
10:02 am
what a week to looks at employment the big employment report friday, adp midweek. 52.0 a bit better than expected sequentially higher than the 50.2 in the rearview mirror. carl, back to youp >> thank you very much rick santelli. good monday morning. welcome to another hour of "squawk on the street. i'm carl quintanilla with morgan brennan and david faber live at post nine. markets did open at all-time highs but settling back a bit. s&p is down about 4 points on the pmi miss and the prices paid on ism. >> 30 minutes into the trading session. three movers we are watching this morning we're going to start with spotify rising after a top pick at morgan stanley on the prospect s for accelerating growth in its premium service and expanding profit margins stock up more than 30% over the last month of trading. meme name amc getting a boost after the company said the
10:03 am
theater admissions revenue in october was the highest in any month since february 2020. starting to move back towards the prepandemic levels you can see amc is up 1.5% right now. finally, harley-davidson rg those shares are revving higher after the u.s. and eu ended a year's long dispute involving steel and aluminum tariffs the mort cycle make wear have paid tariffs 56% on imported american made bikes if the dispute had not been resolved. they've been paying 31%. that's going to drop down to 6% regardless of where the imports come from into the eu beginning in january you recall, all of this debate over the last couple years was the reason that harley shifted some production overseas and caught the ire of president trump at one point as well i would like to note rival polaris is trading higher on the news too. >> which had tough news on supply chain last week thanks, morgan november opening its first trading day of the month record highs for the dow, s&p and nasdaq
10:04 am
joining us is advisoriry services keith learner and head of investment strategy and cnbc contributor meghan shoe. good to see you both keith, start with you, a lot of clashing between the bulls who argue the seasonality trade this time of year is tried and true, but the bears saying that the fundamentals, central banks, consumer downside risk means you should be cautious where are you? >> first, carl, great to be with you on this monday morning we're still positive we came in to last month saying that market had a healthy reset. we told our clients to use that as an opportunity to position for year-end strength. you are right as far as we are in a sweet spot seasonty and look back historically, when you've seen 20 plus gains into october, the final two months of the year have been positive for eight times with an average gain of 6%, it's almost double the norm now that's not a guarantee, but i think what will continue to support this market we think we're set up for positive
10:05 am
economic surprises as we end this year. after the big one, maybe a little bit of tie guestion here but think there is upside before year end. >> interesting meghan, earnings beats in the 7 range is not, you know, historically probably the weakest we've done since video be covid began, but you seem to be impressed with the way companies are navigating these supply chain challenges. >> absolutely. this has been a quarter we've been watching carefully because we see it as having had the highest risk of disappointment in quite a while i wouldn't get surprised by lower numbers, lower earnings numbers compared to where we've been since covid began because we have to get to a more normalized rate of growth, but we've been happy with how companies have delivered this quarter. those supply chain challenges are very real. they seem to be hitting every industry, even those that seem
10:06 am
to not have direct exposure. you think about some of the communication services companies that actually have exposure through their ad revenue we are expecting this to persist for the near term, but we do think it sets up for a nice backdrop beginning in the middle of next year i expect equities to start to sniff that out several months in advance. namely, we're looking at a rebuilding of inventory that possibly is at historic levels and should be a support for growth. >> what i'm hearing from both of you and keith, i'm going to direct this next question to you, is that stocks are still relatively attractive investment given the prospects of returns we can see potentially in other asset classes in a week where we have this debate every day, but in a week where inflation commentary is in focus given what we'll see from the fed and the meeting and chair powell later this week. keith, i mean would a changing narrative about inflation actually change this perception in terms of risk assets?
10:07 am
>> well, i think the inflation picture is a risk as we head into next year, but i think what we're learning in the earnings quarter is that companies are able to push those prices in many cases and what's really amazing, stocks this year, some people are unaware of, the market is up 22%, but forward earning system are up 30%, so last week we made a new high in the market and we made a new high in earnings i think as we move to next year, you know, the overall market gains should moderate because valuations are still somewhat high and the earnings will come down on a relative basis they're still attractive you have to look more micro. look at small caps small caps are trading below their historical average in a 20-year low relative to large caps earns are moving higher and the small caps are set up well into year end >> meghan, the same question to you, biggest risk to your thesis for equities as we start to look into 2022? >> i do think inflation is one
10:08 am
of the biggest risks we're approaching a fork in the road if you will if inflation continues to move higher i think we have real problems it's been constructive in my view that the market has quietly been pricing in more activity from the fed next year so we're at about an 85% probability of three hikes in 2022, and yet we've hit all-time highs in the equity market. that is positive our base case is for inflation to start to moderate which i think gives the fed a little bit more breathing room. we don't expect inflation back below 2% any time soon we have to get used to slightly elevated levels of inflation where the pricing power story for companies will continue to be relevant. >> it does raise one last question and that is, the fed meeting this week, there's a bit of a debate about whether or not people expect the fed to lose the transitory language. a lot of people argue probably not because they don't want to blow up the front end of the curve. do you think they finesse it,
10:09 am
though >> they probably do finesse it but they have been telling us for some time they are going to be gradual still this is one of the most telegraphed moves we've seen in a long time. i think what you're hearing on the inflation side, some of the fed uncertainty will inject more volatility into the markets next year the last in 2013, markets still went up. it was a moderate period but overall positive gains and that's what we expect as we head into next year >> appreciate that thanks for kicking off the hour with us. keith and meghan, good to see you. >> thank you world leaders are gathering in scotland for the united nations climate change conference diana olick is there with highlights so far. hi, diana. >> hi. more than 120 leaders are here and speeches kicked off two hours ago. president biden arrived without a deal in congress on his spending framework which includes more than half a trillion towards climate that plan in limbo the president was expected to speak by now, but the conference
10:10 am
is running late due to just the sheer number of people attending as well as protests outfront absent at this conference is china's president xi expected to send a written statement after today's speeches china is the world's largest emitter of greenhouse gases heavily dependent on coal. it did not ub mitt an agrees serve plan, saying it would stop increasing emissions by 2030 and net zero 2060. that will not get the earths to the 1.5 degrees celsius warming set by the paris agreement most of the leaders so far today have appealed to each other, britain's prince charles focused on the private sector and specifically corporate ceos. >> we need to align private investment behind those, behind these industry strategies to help finance the transition efforts which means building the confidence of investors so that the financial risks is reduced
10:11 am
>> reporter: ceos of major corporations are arriving here in glasgow as well many of them will come after the world leaders depart and the focus on funding for adaptation, resilience, innovation and assistance to developing nations. >> thank you diana olick in glasgow where she will be for some time. this will go on for a couple weeks. as we head to a quick break, a look at our road map for the hour including an exclusive interview with the co-founder of bodyarmor, as coca-cola buys full control of that company the largest ever brand acquisition. >> world leaders endorsing a global tax agreement we'll discuss. >> and don't miss micro strategy's ceo michael saylor. his company noci ianunngt bought more bitcoin in the last quarter. a big show still ahead don't go anywhere. the pursuit is on. the pursuit of outperformance at pgim. with deep expertise to outthink across multiple asset classes,
10:12 am
actively managing investments in the world's public and private markets. outscale, with the resources to serve 1,500 clients in 52 countries. and outlast, with long-term conviction that looks beyond today's volatility. join the pursuit of outperformance at pgim. the investment management business of prudential.
10:13 am
it's another day. and anything could happen. it could be the day you welcome 1,200 guests and all their devices. or it could be the day there's a cyberthreat. only comcast business' secure network solutions give you the power of sd-wan and advanced security integrated on our activecore platform so you can control your network from anywhere, anytime. it's network management redefined. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities.
10:14 am
got to keep your eye on tesla. shares up 43% in the last month alone. notching another all-time high today. the best performing stock on the index for the month of october up around 60% for the year after the break, an exclusive with the co-founder of bodyarmor on ha deal with coca-cola. in the meantime dow hanging on to a 93-point gain don't go away.
10:15 am
10:16 am
reducing our carbon emissions to net zero may be our biggest challenge yet. there's no single action that will lead us to carbon neutrality. but there is a single source of essential sustainability intelligence. s&p global sustainable1.
10:17 am
. coca-cola announcing a multibillion dollar deal this morning to take full control of bodyarmor. sara eisen joins us now with a special guest for us as well
10:18 am
sara >> good morning, david and good morning, mike repole, the ceo and founder of bodyarmor. congrats on the deal thanks for joining us here exclusively. talk us through what led to today. coke bought a stake in 2018, you went through the bottling system and then what? >> well, it really starts back in 2011 when we had a vision to create a better drink than gatorade a lot of entrepreneurs talked about the survival years, the first five years of a company, you basically go from revenue to 10 million in five years and probably lose $75 million, and then all of a sudden you pick it up and coke made the investment in 2018 and we have a ton of credit to james quincey and john murphy and brian smith and alfredo rivera to buy a minority interest, into
10:19 am
the bottling system to see what we can do with these bottlers and the rest is history. since we've been in the system, we've gone from $200 million to $450 million to $700 million and next year $1.1 billion in revenue. the coca-cola bottling has done an amazing job getting this brand to the next level. >> $1.1 billion in revenue this year how fast are you growing because the category isn't as exciting or it hasn't been as energy drinks or coffee or some of the other fast growing categories and beverages >> you know, what's interesting, sara, when we got into the category in 2011, the category was $5 billion it was stagnant, $5 billion for probably the last five or six years. when i was dumb enough to try to get back in the industry, i wanted to do something epic and really big and the category now and years later is $8.4 billion, and i think it's going to be a $15 billion category
10:20 am
we've had pepsi gatorade because we've added real competition and they're growing, we're growing they came out with gatorade zero, and it's real -- >> you've got a lot of big celebrities which has helped the brand grow what else is your edge versus gatorade which has been the king of the category and still commands almost 70% share? >> for me it's really two things it's brand and the people. the brand is we created a better sports drink, natural colors, flavors, high electrolytes, 10% coconut water. that was easy compared to gatorade's formula that came out in 1965. the second key is we have 400 dedicated employees, some have been here ten years, seven years, six days, three years, a year what i'm most proud of is that the 400 -- i don't have 400 employees i have 400 owners.
10:21 am
everybody has stock, a stock shareholder and what's special i think today my cfo told me half the company will make over a million dollars and everybody else will make over $100,000 or $500,000 to me, my family has always taught me about success is best shared and knowing that this is a life-changing moment for so many people, our investors, it's a really special day >> well, one of those earliest investors we should pay tribute to, kobe bryant. you announced a deal at 8:24 this morning, his two numbers. he was there almost from the beginning. talk about how instrumental he was in this vision and how this is going to be a big part of his legacy, his entrepreneurial legacy. >> it's -- today is a beautiful day, but it's a sad day. i spoke with vanessa all weekend. kobe invest vested in the company in 2013.
10:22 am
i met kobe in 2008 when he tore his achilles he called me every day because he couldn't work out. he talked about being an entrepreneur and building businesses and, you know, tragic on thes incident, but kobe believed in the vision of this brand and belief in me and my team way before anybody else i mean, you know, sara when he gave me $6 million, i denied him the first two years, and he hadn't met me and said why i'm giving you all this information and why aren't you taking my money? we have a 1 in 10 chance in makings it he looked at me, like 1% he goes, with everything i've done in my life the nba championships, italy, gold medal, those are the best odds of my life i sat back and said let's go the rest is history. >> it's an amazing story, mike so what's next for you
10:23 am
it's notable that coke is not doing media on this. they're putting you out there to take the victory lap how long do you plan to stay on board at the company and what are you going to do to keep the brand growing? >> you know, the one interesting part of this he deal is that coke is going to let me continue running this company james, and i had a great conversation last week, brian kelly, and john murphy had dinner recently and alfredo rivera, has been involved. the person who made this deal happen the m&a person at coke who was my psychiatrist over the last 11 months getting me sane enough to make sure we can do something that works for everybody. give a shout out to marie. they're going to let me be me. i got to tsh this is a historic deal because not only do they want me and the team to continue to take bodyarmor to the next
10:24 am
level, become the number one sports drink in the united states and launch globally, they want me to work together with them on other emerging categories a couple of them i know well from my previous years, but to me, that relationship, you know, that's going to be a lot of fun. i'm going to -- i'm a unique individual i'm going to push a little bit harder than they're used to and after i spoke to james, i asked if i could be chairman of the board and i think he muted me after that, but i wasn't afraid to ask i'm going to try my best to get on the board and invest in coke and told john murphy i want to be able to call him once a week. i don't have his cell phone but if you have it i would appreciate it. i'm going to do historic things. our team is amazing. i'm in a great circle of friends and family i have a 6-year-old daughter more demanding than me and we're going to do bigger things with this. >> i don't have john murphy's
10:25 am
cell phone number. if you get it maybe give it to me as well mike, you know the worry always with these smaller brands that start independent and they're nimble, and they are hungry, and they understand their consumer and can reach them in so much better ways than some of the big companies, food, beverage, household products the worry is always, once the big guy gobls them up, that's the end of the super fast growth you've been here before. you sold your last company to coke for $4 billion smart water did well, vitamin water not so much. how do you avoid that happening? >> 15 years since 2007, the last transaction with coke, and we always spoke openly and that's one of the reasons why we came into a minority position, and i think with this deal in a bunch of different ways, coke becoming just the majority owner, keeping a stake, then i heard i wouldn't be good on a public board, wouldn't be good as a public ceo, i couldn't say the things i
10:26 am
usually say, so we got a laugh out of that. i think coke is going to let me be me. this is the bueauty of this. they though what they're getting. i've been around the system, they've been family for 15 years. this is a sign coke wants to do things differently i'm 52 years old i'm happy and content today, but driven to do more. if i can be involved a little bit in helping a big company, a global company, like coke, change their culture a little bit, move a little bit quicker and my biggest focus is [ inaudible ] because they have potential brand there. it's just little marketing and a little innovation and packaging changes, i really think will be really big, and i'm excited about it i'm coke for life. they've changed the life of me, my family, my employees. i'm not going away i told james and don that. i'm not going away until you throw me out the door.
10:27 am
if you don't hear from me, james and john threw me out. >> mike repole, thank you so much it is amazing that this is your second multibillion dollar sale to coca-cola congrats again and thanks for joining us here on cnbc to talk about it founder and ceo of bodyarmor carl, with that back to you guys >> great stuff, thank you. sara eisen. our etf spotlight looking at the health care sector, xlv coming off a good october up around 5% for the month, one name in the group moving in the opposite direction is moderna, down double digits since october 1 and again under pressure today as the fda delays a decision on the use of its covid vaccine in adolescents, looking into risk of heart inflammation, a final decision from the fda is not expected until january. >> after the break don't miss our interview with bitcoin bull and micro strategy michael saylor the dow and s&p all at rorecd
10:28 am
highs. back in two. ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪
10:29 am
i didn't have to shout out for help. because you didn't have another dvt. not today. one blood clot puts you at risk of having another, so we chose xarelto®, to help keep you protected. xarelto® is proven to treat and reduce the risk of dvt or pe blood clots from happening again. almost 98% of people did not have another dvt or pe. don't stop taking xarelto® without talking to your doctor, as this may increase risk of blood clots. while taking, a spinal injection increases risk of blood clots, which may cause paralysis. you may bruise more easily or take longer to stop bleeding. xarelto® can cause serious and in rare cases, fatal bleeding. it may increase your bleeding risk if you take certain medicines. get help right away for unexpected bleeding or unusual bruising. don't take xarelto® if you have an artificial heart valve or abnormal bleeding. tell your doctor about all planned medical or dental procedures and any kidney or liver problems. help protect yourself from another dvt or pe.
10:30 am
ask your doctor about xarelto®. to learn more about cost, visit or call 1-888-xarelto good morning, everybody. i'm sue herera here's your cnbc news update less than two years since it began, the covid-19 pandemic has now killed more than 5 million people around the world. that's according to the johns hopkins count. almost 746,000 of those deaths have been in the united states and that is close to the population of seattle. emotional reunions in sydney as australia eased its international travel restrictions for the first time since the pandemic began australians abroad can now return and zeps in the country can friel eely travel internationally if vaccinated. the u.s. supreme court
10:31 am
hearing argument on whether two lawsuits challenging the new abo abo abortion ban in it can can continue it allows private citizens to enforce the prohibition and that has raised new legal questions. barclays ceo jes staley stepping down in the wake of an investigation into his relationship with jeffrey epstein. the bank says that probe did not accuse him of being aware of epstein's sex trafficking but the board is reportedly unhappy the investigation found him not fully transparent in describing the relationship a finding that he is contesting. you are up to date morgan, back to you. >> sue herera, good to see and hear you thank you. >> it's great to see you as well, morgan back to you. >> what a great way to start the week thanks micro strategy reporting earnings last week the software business reporting in line with expectations, it
10:32 am
has bought nearly 9,000 bitcoins during the quarter with about 5 be there of crypto on the balance sheet. the stock up 3.5%, up 90% just since the start of this year joining us is microstrategy chairman and ceo michael saylor. great to have you back on the show. >> thanks for having me. >> so the last time you, and i spoke was back in july since then we've seen the price of bitcoin double. we're trading near record highs right now. you mentioned on the call last week that you are evaluating options to raise more capital to buy more bitcoin and actually the stock at least initially dropped on that news how are you value bitcoin at these prices >> well, you know, i think the last three months have delivered regulatory clarity for bitcoin you can see support in the congress and senate and a progressive administration, and most of the fear around the china crackdown are passed us now and with the bitcoin mining industry relocating to the u.s. i think it's bullish outlook for the neck 12 months
10:33 am
i don't think things could have gone better in the past quarter. >> yeah. when you say bullish outlook, i mean is there a price you would expect bitcoin to continue to move higher towards than that? i realize it's a volatile asset class so it could be choppy but what is your outlook >> our view is it will be volatile because it's plugged into the entire crypto market and is new, but it's going up forever. i have a long-term view. i think for the decade bitcoin is going to be the strongest, hardest, you know, most technically forward value in the economy, so we just have a long-term focus. we will continue to acquire it quarter by quarter, time to time, either with cash flows or with debt or equity just depending on market circumstances and what looks most creative to our shareholders >> yeah. you just mentioned regulation. the fact that we're starting to get a little bit of clarity here in the u.s. around that, one of the things that jumped out at me, comments you made on the
10:34 am
frens conference call last week the clarity coming into the marketplace, this is not a currency but an asset, taxed as an asset which means on sale you would pay capital gains, shorter long-term capital gain of sort, it's not going to be treated as a medium of exchange or currency in the western world or most of the world. how do you see it evolving and what does that mean for the long-term strategy of micro strategy >> i think the killer use case for bitcoin is store value and treasury reserve asset for a family or corporation or government or institution or a trust. i think that what we're going to see is the u.s. dollar is going to emerge as the world reserve digital currency and if we get clarity on stable coins from the administration, that stable coin u.s. dollar can go from $100 billion to a trillion to 10 trillion the bitcoin is emerging as the world reserve digital asset,
10:35 am
long-term store of value as an inflation hedge. >> are you in the camp of hyper inflation going to change everything that's happening as jack dorsey tweeted last week? it certainly kicked off a firestorm on twitter how do you see it? >> i think if you're keeping track of the inflation rate of consumer goods it's 5%, but if you're keeping track of the inflation rate of industrial goods it's like 25 to 30%. you're looking at the inflation rate of scarce desirable assets it's north of that it all comes down to what you want to buy. i think we have a high inflation rate for scarce, desirable things, and if you want to stay ahead of that monetary inflation you have to buy the most desirable asset, and i think the most desirable asset in the world is digital property on the bitcoin network. >> michael, david faber, on that note given your belief of the evolution of digital currencies,
10:36 am
what you said, are there other opportunities outside of bitcoin itself that you see, whether they be platforms of some kind, whether they be things that certainly i can't imagine right now but i would imagine you have that are going to be opportunities for microstrategy as this, again, evolves in the coming years >> well, you know, i think if you're an institutional investor of a public company and going to hold a crypto asset on your balance sheet it needs to pass the test, will it be banned, copied, hacked, and we ask that question a year ago and we asked that question every month. bitcoin, you know, is not hacked it's clear that it's property and there's consensus it's not going to be banned and, of course, there's 10,000 cryptos but only one bitcoin i think in the entire crypto universe there's only one crypto asset that passes the
10:37 am
microstrategy test and that's bitcoin. >> and so you don't see as much opportunity perhaps for ethereum or things that aren't just currencies but the platform that are available now and/or will evolve over time >> i think the other cryptos are either speculative plays or they're for technical vc investors. i think if you're an institutional investor or if you're a saver, you need to invest in something which is not going to be banned, not going to be hacked, not going to be copied, and i think it's too soon to give any kind of opinion on ethereum or anything else in the crypto ecosystem. >> let's talk about some of the possibilities that you're considering at microstrategies to continue to buy more bitcoin. you talked about partnerships, credit lines, asset backed financing, a few notes raising the possibility of using the bitcoin that's already on your balance sheet, basically as i think an instrument of leverage
10:38 am
as well. how do you continue to buy more? is there a point at which there's enough bitcoin for you to be content? just as importantly as you have this turnaround, this transformation in the software sp piece of the business that is more cloud focused, how necessary is that to continue to enable the bitcoin piece >> you know, we have ability $7 billion worth of bitcoin on our balance sheet and we pledged a small portion of that as collateral against a senior note, but like $6 billion or more is unpledged collateral i think as we look forward, you know, we're going to buy with cash flows that's always creative on occasion we will do equity linked financing like converts or the atm, but clearly the most is probably debt-based financing to the extent that we're pure department about how we do it and do it at the right time in the markets. i'm very bullish on the entire bitcoin asset class as a source
10:39 am
for securitized finance and we can see in the past month, there are credit lines backed by bitcoin. silver gait did one with marathon consumer finance backed by bitcoin. they announced one of the deals last week as well. >> i mean, just to circle back on the regulation piece of the puzzle again, the fact that the worst fears that were in the marketplace, at least from an institutional investor standpoint earlier in the year have not come to be realized, quite the opposite, the fact that we have this two bitcoin futures etf that are trading here at the stock exchange as well or i guess stock exchange and nasdaq with more potentially in the pipeline, but we don't have a bitcoin backed etf. what do you think that enables for your stock given the fact that so many investors do trade it >> you know, i mean, what i said last week, tongue in cheek, in response to the news that fdic
10:40 am
chair is looking at allowing banks to hold bitcoin on their balance sheets, is that when the regulators finally normalize this, when we have all the etfs in the stock market, when banks can hold bitcoin on their balance sheet, at that point there will be huge demand, nobody will want to sell and you won't be able to afford it what i see right now is, is the future, the writing is on the wall, it's a little bit murky. we're waiting for the etfs to get approved and waiting for more regulatory clarity but know bitcoin is property not going away and the innovation is a real, and i view it as just more runway to acquire more bitcoin before it gets too expensive. >> do you have any theory on who it is before i let you go? >> we're all satoshi. >> michael saylor, great to speak with you again
10:41 am
thanks for joining us. >> thanks for having me. still to come this morning, world leaders supporting a global tax details and a check on the markets as we have all-time highs across the board at the open right back, stay with us. ♪ say it's all right ♪ ♪ say it's all right, it's all right ♪ ♪ have a good time 'cause it's all right ♪ ♪ now listen to the beat ♪
10:42 am
♪ kinda pat your feet ♪ ♪ it's all right ♪ ♪ have a good time 'cause it's all right ♪ ♪ oh, it's all right ♪ make fitness routine with pure protein. high protein. low sugar. tastes great! high protein. low sugar. so good. high protein. low sugar. mmm, birthday cake. try pure protein shakes. with vitamins and minerals for immune support.
10:43 am
this year's biggest bull predicting a year-end market ltp me uand lists momentum stocks as a leader details on more "squawk on the street" coming up. options? plans we can build on our own, or with help from a financial consultant? like schwab does. uhhh... could we adjust our plan... ...yeah, like if we buy a new house? mmmm... and our son just started working. oh! do you offer a complimentary retirement plan for him? as in free? just like schwab. schwab! look forward to planning with schwab.
10:44 am
i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. i'm so... ...glad we did this. [kid plays drums] life is for living. let's partner for all of it. i'm so glad we did this. edward jones welcome back ylan mui caught up with yellen over the weekend as they endorsed a tax plan. good morning, elan. >> good morning. treasure secretary janet yellen in ireland after world leaders signed off on the global tax deal ireland had been one of the
10:45 am
holdouts in the agreement but after decades of defending its ultralow tax rate, ireland is all-in in a show of solidarity, yellen hosting a roundtable with u.s. businesses located there and had breakfast with bono and met one-on-one with irish finance minister this morning she told me it's time for the race to the bottom in corporate taxation to end >> i think this is rebalancing to make sure that we can support investments in our economies and the corporations pay their fair share. >> now the biden administration is hoping to replicate this win abroad with a win back here at home and a vote in the house on the president's economic agenda by the end of the week >> i think there is appreciation in the united states of the importance of this international agreement and we've been staying in very close touch throughout the negotiations with members on
10:46 am
both sides of the aisle. >> separately, i also asked yellen about the advice she gave to the president on who to nominate as fed chair. >> i've talked to him about candidates and advised him to pick somebody who is experienced and credible i think that chair powell has certainly done a good job. >> guys, she emphasized a commitment to fed independence and the mandate are two of the critical criteria. back over to you certainly, her insights are watched for a variety of reasons. i'm still wrapping my head aroundbreakfast with bono. i would have tlovds have been a fly on the wall for that conversation just to go back to the global tax and the prospects of that making its way thu congress given how contentious how everything else is, how does this and some of the headlines
10:47 am
and commentary from secretary yellen, how does this continue to propel that case forward stateside? >> right now it does look likely that sort of one half of the dealrs the deal around the global minimum tax, would be able to pass congress some time this week at least in the house, part of the president's larger spending bill. the other half of the deal that has to do with big tech and digital services taxes that piece is still being finalized and may require republicans in congress to even get on board with this plan before treasury can strike the deal with other countries. >> thank you for more let's bring in jpmorgan chase head of global economic research and chief economist bruce casman nice to have you is there going to be an impact on overall gdp if corporations are forced to pay at least 15% both abroad and here in the united states as well? >> well, certainly, i don't think there's an impact on the short term because the
10:48 am
implementation and details of this still have a long way to go i think over time, certainly the idea that we could begin to remove some of the tax havens and have an impact on where companies operate and book their profits is i think of some consequence here over a longer period of time ultimately one of the questions is whether this means the corporate tax rate loop higher more generally and the trajectory is in that direction, although i wouldn't argue much is going to happen any time soon. >> very hard to understand how this is going to go in the near term to your point, but is there, though, a point at which corporate profits could be taxed by this and/or what would be your overall view from an economic perspective of higher tax rates let's say broadly within let's call it the next couple years >> well, i think the trajectory is biased in the direction of higher corporate tax rates i wouldn't take a confident view about how much at one point we've been making,
10:49 am
i think it's true with the corporate tax cuts in 2018 and would be true now, is that it probably doesn't have much impact on investment decisions, so in terms of profitability, in terms of location of where corporates operate, i think there are implications of this in terms of actually the spending and gdp consequences for the u.s., i would downplay that certainly over the next couple years >> yeah. i mean, that's like more the fiscal side of the puzzle, but then you factor in the monetary side of the puzzle and you've got the fed meeting this week and perhaps even more focused than the actual timeline for a taper which is widely expected to be announced this week is going to be how quickly the fed, the comments around inflation and how quickly the fed begins to raise interest rates. certainly the markets are pricing in a much more aggressive stance next year than what we've heard from fed officials, so how does that discrepe pansy change or i guess evolve as we have this broader conversation >> i think evolve is the right
10:50 am
question and as you were saying, taper is going to be announced, and it's going to be put on automatic pilot. so the key issue this week is about guidance on rates. i think what powell is going to do is maintain optionality they have a framework. i think it is going to be focused on the degree to which inflation, which is market tightness is getting us towards what you might call full employment i think the key release last week is the employment cost index and the key release this week is if we're right that the unemployment rate takes another two ticks down to 4.6% both show we're moving quickly towards a tight labor market in the u.s. >> bruce, do you think the way we're gathering data for the labor market is capturing the real accurate picture? >> i think there are always problems and problems around the pandemic and i think the big issue is less about whether the data is accurate now but what it tells us about the future. a large mismatch between people who are out of the labor force
10:51 am
and jobs that are available. we just removed a lot of unemployment benefits and the economy is still in a very big transition on sector the question as we move forward, will we get the supply that is not available right now to match where that demand is you know, i think we're cautioucau cautiously pessimistic on that that we think lasting impacts here >> bruce, if we're talking about the long-term trend on corporate tax, some say they're to this day surprised that the democrats with control of the white house, the senate and the house really couldn't move corporate tax much above 21 i wonder if you were also taken aback by that. >> not really, although i wouldn't claim to be an estute political analyst here the pressures of how the political landscape is shaping up makes it hard to raise taxes and i think we're going to see that in the final proposal here. i do think the overall sort of movement we're likely to see in
10:52 am
the next few years is to try to broaden and increase corporate taxes regardless of the administration and i think there is that trajectory which is changing globally and in the u.s. but i don't think we should argue that is going to be the dominant macro economic driver or macro performance more generally. >> bruce, appreciate it. thank you. >> thank you coming up this morning on "techcheck" we'll check in with joanna of "wall street journal" talking about investing in the metaverse. cnbc out with a new online documentary. be sure to check that out on and cnbc youtube channel. we're back in two minutes. new projects means new project managers.
10:53 am
you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit and get started today. i'll shoot you an estimate as soon as i get back to the office. hey, i can help you do that right now. high thryv! thryv? yep. i'm the all-in-one management software built for small business. high thryv! help me with scheduling? sure thing. up top. high thryv! payments? high thryv! promotions? high thryv! email marketing? almost there, hold on. wait for it. high thryv! manage my customer list? can do. will do. high thryv! post on social media? hash-tag high thryv my friend! get a free demo at when the only thought on your mind is “finally” this is financial security. and lincoln financial solutions will help you get there as you plan, protect and retire.
10:54 am
moving is a handful. will help you get there as you plan, no kidding! fortunately, xfinity makes moving easy. easy? -easy? switch your xfinity services to your new address online in about a minute. that was easy. i know, right? and even save with special offers just for movers. really? yep!
10:55 am
so while you handle that, you can keep your internet and all those shows you love, and save money while you're at it with special offers just for movers at welcome back to "squawk on the street." i'm dominic chu. three of the major averages record highs today among the leaders, you have energy like you see behind me here and meanwhile technology and real estate are the biggest laggers. now, within energy, that dwgrou is being led by devon energy and philip 66, as well and the move higher comes
10:56 am
alongside rising oil prices as the demand picture continues to recover and opec and its partners maintaining their gradual increase plans despite oil output quk h that energy sector and "sawon the street" will be right back after this break. keep it right here
10:57 am
wondering what actually goes into your multi-vitamin.
10:58 am
at new chapter. its innovation organic ingredients and fermentation. fermentation? yes, formulated to help your body really truly absorb the natural goodness. new chapter. wellness well done. unconventional thinking means we see things differently, so you can focus on what matters most. that's how we've become the leader in 5g and a partner who delivers exceptional customer support, and 5g included in every plan, so you get it all.
10:59 am
take a look at the ev stocks today. it's electric boogie woog ea tesla up 3% making a new high today and lucid which is fractionally higher after beginning deliveries over the weekend and xpeng and nio and ferrari is choosing as its best ev pick actually over tesla. >> and over ford >> and over ford >> not surprising. i wouldn't think ferrari as your number one name when it comes to ev >> no. the other name to watch is rivian which also began deliveries of its new truck and is backed by ford and amazon so, the space continues to, i
11:00 am
guess, grow, if you will >> it does it does. and nothing is stopping tesla's momentum of course, we pointed out many times. the stock up 63% for the year. remember not many weeks ago it underperformed the broader market that is no longer the case as it stands for the $1,154 billion market value that will do it for us "squawk on the street. "techcheck" starts right now. good monday morning. welcome to "techcheck. i'm carl quintanilla today we're kicking off november with top picks across media and cloud. how to play big growth as the s&p and naz hit some highs who will be the key er


info Stream Only

Uploaded by TV Archive on