began. june 28th. is it jobs week? >> that's a good question. >> it is monday, june 28th, 2021. it's a monday. good morning welcome to "squawk box" here on cnbc i'm becky quick along with joe kernen and andrew ross sorkin. we start with the markets after the gains for stocks last week s&p notched the best week since february dow had its best week since march. the nasdaq had the best week since april. record close for the s&p if you check out the u.s. equity futures at this hour you will see at this point, there are green arrows dow futures up 10 points nasdaq indicated up by 37. let's look at what is happening

in the treasury market yields have been held down this morning, above 1.5% 1.517% for the 10-year the "squawk stack" this morning showing other sectors doing well we start this morning with the transports they have been the best performer for the first half up 20% year to date. they were down 4.9% in june. you have to remember the rest of the year midcaps are the second best. up 18% year to date. on pace for the best first half since they started keeping records in 1991. the russell 2000 is the third best performer up 18.2% watching all of these arenas closely. s&p healthcare is something to keep track of. setting at a record. and nike was up 22.2% for the

week to date led the dow and s&p. in the meantime, i'll tell you about the story of the weekend. we will see if it impacts markets. president biden back tracking to save the bipartisan infrastructure agreement he said earlier this week he would refuse to sign the deal unless it came with the reconciliation package for child care and health care that drew back lash from republicans. on saturday, the president released a statement walking back the comment and reiterating full support for the deal and in response, senator portman said he was glad they were de-linked and now moving forward there was good faith throughout the negotiations i don't know, guys, it seems we have a deal. >> good piece in "the journal"

about what it means. >> the news story or the editorial? i think we are referring to the same thing >> president backtracks on the optics the republicans shouldn't be fooled if you support the first thing, you will get a big second bill manchin has already been on board. >> i saw what he said. up to $2 trillion. >> you were right about portman and the hostage tape i didn't realize. >> when he looked over at him, he was trying hard -- how do you not smile and fnod your head whn the president was putting his hand on your shoulder. my big question after reading this, biden said he won't veto it or ignore it, but nancy pelosi said, too, that move on it if you didn't get it through, biden can stay he is sticking

with his word and not get to their desk in time >> it is not up to biden. >> i didn't see any commentary from pelosi or schumer. >> just from mitt. i'm on board i'm good i'm fine okay, mitt mittens. i shouldn't say that it's monday. >> grouchy >> romney makes me grouchy all the time i'm not sure why >> why >> i don't know. for a lot of reasons he doesn't seem to have a lot -- i'm not sure what he really thinks on anything at this point except 47% don't pay taxes people on a certain wave length are not happy with romney for six years, eight years, ten years. >> just like people aren't happy with manchin or sinema if you move to the middle and try to compromise. >> i know people i have friends on the other wave length i heard of people on that other

wave length. we digress. j&j agrees to pay $230 million over the opioid agreement in new york. banning j&j from promoting opioids at the federal, state or local level. j&j stopped marketing in 2015 and fully discontinued the business in 2020 new york's opioid lawsuit trial begins this week remaining defendants include purdue pharma and teva pharmaceuticals and allergan >> this is the answer. we have it now. >> i knew it was >> sometimes it is not the first week. >> if we waited all the way until july 10th or something >> if it was a day later, it would be the next week

>> we need to know as soon as we can. here is the information. this is the squawk planner it is jobs week in america we get adp private payrolls on wednesday. jobless claims on thursday the june jobs report that hits on friday, july 2nd. it is a light week for earnings. we will hear from micron and bed, bath & beyond and walgreens on thursday. the world congress dpinsbegi barcelona today. cnbc will have full coverage this week. >> andrew, the number -- it is rupert murdoch >> you are still reading the

physical newspaper >> i totally do. when you do to the restaurant, are you happy with the picture on your phone and scrolling? don't you ask for the freaking menu do you >> i haven't had that circumstance or had the option >> they will bring them if you ask. >> they will most of the places are now bringing them back the last month, most of the restaurants have the actual menu >> don't come out to new jersey. here it is the number of jobless benefits is falling faster in missouri and the 21 other states cancelling the enhanced payments suggesting that ending the aid could push people to take a job. if you pay people to stay at home, they are smart people and say there's a new series on netflix coming out and i would rather thando that than dig dits

we have agreeing way too much, sorkin >> you may have to rethink your positions. >> what are you? h 42 43 someone's birthday's coming up >> 44 years young. yes. >> you're 44 you are coming around, my friend. >> coming around. >> you have smart people in your family >> your son? >> my buddy max. the little alex p. keaton of the sorkin family. >> he is reading the pro publica articles saying yes, that's what i'm going to do. >> all legal coming up when we return, honda out with a new plan to sell electric vehicles with the

help of the rival. phil lebeau has the story coming up. and f9 set the record box office since the last "star wars" movie in 2019. we have details at the bottom of the hour back after this. yeah...uh... doug? sorry about that. umm... what...its...um... you alright? [sigh] [ding] never settle with power e*trade. it has powerful, easy-to-use tools to help you find opportunities, 24/7 support when you need answers plus some of the lowest options and futures contract prices around. don't get mad. get e*trade and start trading today.

this is bob minetti and his wife wendy. in 2016, he was diagnosed with pancreatic cancer. bob participated in a clinical trial that included cutting-edge radiation therapy and surgery. he's been in remission since completion. i am so glad i learned what was possible for me stand up to cancer and lustgarten foundation are working together to make every person diagnosed with pancreatic cancer a long-term survivor. visit pancreatic cancer collective.org. welcome back honda outlining the plan to develop and accept electric

vehicles from the rival. phil lebeau has more >> reporter: good morning, becky. honda is committing to be all electric by 2040 the first electric model in north america by 2024. it plans to make two electric vehicles to rollout here in the north american markets specifically for the united states in 2024 the prologue suv from honda. the unnamed acura ev both in 2024 built on the ultium platform that is gm it is built on the gm platform we will explain that in a bit. honda, much like the japanese competitors, toyota, focusing on hybrid over the last several years. 7% of the u.s. sales are hybrid electric this is a hybrid electric crv that the company is rolling out.

you have global growth in evs that is going to be so strong. the market is clearly moving toward pure electric vehicles that honda, within the last year, has made it clear it will get into the game and start rolling them out going all electric and completely electric by 2040. sales to date of honda up 42.5%. we want to look at gm. why? because honda has been working with gm on a number of projects, including electric vehicles. it will use the ultium platform. that means the vehicle will be built at a gm plant on the ultium platform. the interior and exterior of the vehicle will be designed and built by honda they haven't said which plant that will be built at yet. two major automakers working together for electric vehicles >> phil, when you showed the

chart of what they are anticipated for 2030 and 2040 and how many vehicles manufacturing. the one thing that springs to mind is we better get more charging stations. if you are planning to be all electric by 2040, there are not enough charging stations to handle this. >> reporter: yes, and no, becky. you need more. keep in mind, the overwhelming majority of people who have an electric vehicle charge at home. as you get greater efficiency and range with the electric vehicle batteries, you have batteries going over 300 miles or 250 to 350 miles. you have people saying, look, on average, 80% of americans drive 40 miles a day yes, you do need those charging stations, especially if you are making a long trip most people, if they are tooling around doing their business, they have more than enough range

and charging stations at home. >> i remember walking out of the house without my phone being charged. i have a charger in the car. i don't know what you do if you need a back up for the car >> everybody does it just go below 40 miles there are day it is it does hap >> there are days i drive more than 300 miles >> reporter: that is part of the biden infrastructure bill to have a half million of those built through the program. we have about 80,000, i think, in the united states in terms of actual sites you look at the stations within each site. multiple stations. they want to go from 80,000 public charging stations up to 500,000. >> i guess i get it.

it would be a car i could drive to work every day. we do make long trips to visit relatives and do other things. >> reporter: becky, i'm not denying that, becky. what i'm saying, this is part of people making that choice. go all electric? if we are, we need fast charging evs. that technology is coming along. we need more charging stations the majority of people charge vehicles at home some people will forget to charge you will see this as part of the evolution we will see over the next five-to-seven years where people make that decision if i'm going all electric, i have to be charged up and think through things like longer trip. >> all right phil, i have a question related to honda it relates to honda and tesla. as you have more and more car companies getting into the ev business, are their batteries any better or how much worse

than tesla i ask only because part of the whole tesla narrative is they are so far ahead of everybody else and their technology is so much better and when honda gets there, they will leap frog on the next big battery technology. is that the case or not really >> reporter: the focus with electric vehicle batteries is the cost tesla is the leader. has been the leader and likely remain the leader likely to those who studied this through the decade when you look at general motors, which is the closest comparison, they are closing the gap by the end of the decade, they will be very close to tesla. tesla will not have this clear advantage when it comes to battery costs. >> okay. phil lebeau, thank you for tooling around with us this morning. we will talk markets

we'll tool around with the markets this morning they have been on a tear they have done a lot more than tooling. the major indices rose more than 2% time to check on what is working in the market. joining us is stephanie link, portfolio manager of hightower advisers also a cnbc contributor. good morning to you. >> good morning. >> is it the tide lifting all boats or lifting certain boats at this point? >> good question it is all about, to me, rotation, infrastructure and c-car. last week was interesting. we have talked about rotation. it has been for the first five months of the year, we saw value out forperforming growth by 12% in mid-may to june, growth had a come comeback that spread was 5% value beating growth

andrew, it was interesting both styles were working that is really great you want to see broad participation. we saw that. that speaks to what we fatalked about having a barbell we want to have some value and cyclical and economic stocks, but secular growth names to participate in all of the noise, to be honest with you. i think there is a lot of opportunity in the markets i think earnings will be stellar for both styles this quarter it will be interesting to see the expectations lie i think value have come down you may see if earnings are better than expected, you see sit resume the out performance >> what you are doing as it relates to all this? >> i have about 70% of my portfolio is cyclicals

economically sensitive companies. i believe the stimulus is working. the economy is on a high at this point. are we at the peak we are at a peak, but we will not see massive deceleration the stimulus is still there. you will get infrastructure on top of everything. i think the economy stays strong i think that leads to a little bit more inflation it leads to a lot better earnings you know stocks follow earnings and profits. where the biggest bang for your back is on the cyclical side i have been buying amerson and united rentals that is interesting. i like the financials. you know i'm overweight. you know i think c-car will be interested let's get news from companies about buybacks and dividends.

>> stephanie, always good to see you. thank you for waking up early. this is not early for you. >> happy to be with you guys take care. have a good week >> you know i'm overweight she's not. >> joe, i heard her say that i wanted to say no, you're not you can't say these things on tv either way, i don't know >> i'm not talking stocks. if i say it, i'm just acknowledging -- we're working out. we're getting better i'm doing better coming up, dr. scott gottlieb joins us with the latest on the spread of the covid delta variant. we head to break here is a look at the shares of tesla. the automaker recalling 285,000 vehicles in china. the cruise control there could be activated accidentally. causing the car to accelerate.

the regulator says the recall covers model 3 and model y vehicles majority of those built in china. tesla will fixheru t cise control with a software up p da update we're coming back. >> announcer: what's working is brought to you by comcast business bounce forward with comcast.com.

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good morning let's look at the futures this morning. dow has turned down. down 25 points i'll check and see which component got weaker s&p futures are up barely. the nasdaq is up 30 points the s&p closed at another record last week. joe. thanks the delta variant continues the global spread. israel forced to impose mask mandates indoors ten days after lifting the

measure. the doubling in case counts every few days just crossing the wires. hong kong will ban all travelers from britain adding that country back on the high-risk list joining us on the news line is dr. scott gottlieb former fda commissioner and cnbc contributor. he serves on the boards of pfizer and illumina. also predictions it won't be long that the delta variant is the predominant one in the united states. doctor, predominant in the united states given our vaccine levels -- tell me if i'm wrong a low total level of covid infection in this country even if it were the dominant variant? it will not takeover the population >> that's right. we are talking about the growth cases in the uk and israel and

talking about the growth in cases on the low baseline. we will not have a situation like last winter with 200,000 cases a day. i think we are talking tens of thousands of cases in the united states per day as it takes hold across the country it will be regionalized. other parts will be vulnerable i think israel is a prophecy of what they are doing. they are in a situation where they want zero covid we will not be in a zero covid we will not try to get down to zero cases a day israel is trying to get down to zero cases a day that is why they are taking different measures than us trying to keep it out completely that is why they are banning it totally in hong kong we are taking dichfferent miss u

are measures in the united states we need to understand that represents far less impact than a year ago because more of the vulnerable people are more susceptible and now protected through vaccination. if you look at what is happening in the uk right now, it is a good proxy for that experience there are 90,000 delta cases they recorded. only 117 deaths. that is tragic, but far less than previous levels the fatality rate is .2% or .3%. they only had 8% of the people hospitalized who are people fully vaccinated >> to sift through the headlines again, we don't have double blind studies to say this is definitively true. it looks like vaccinated people, some of them can get the delta variant. it doesn't look like you get

very sick. looks like the vaccine protects you against getting really sick. if you got it at that point and you are vaccinated and you come in contact with unvaccinated and you get the delta -- i'm sounding like a vaccanista you should be pounding get vaccinated because the delta variant won't hurt the people that have the vaccines, but if you don't have the vaccine, you are not protected. >> look, we know for a fact that the vaccines substantially reduce the likelihood of spreading the infection. if you are symptomatic or asymptomatic, you are less likely to spread it to others. that was essential for lifting the mask requirements. they looked at the data and if

you get infected and vaccinated, you are less likely to spread infection. you don't need to wear a mask. whether or not the delta variant makes it likely to spread the infection if you are vaccinated, we don't know. we don't know why the delta variant is more contagious you might shed more virus. you might have a sustained period of shedding the virus if that is true, you might be more contagious even if you are vaccinated you will still be substantially less contagious if you are not vaccinated besides being sflavaccinated, y are less likely to be a chain in the transmission if you are fully sfvaccinated that is another strong reason to get vaccinated >> doctor, do we have any

information about the distention between people who have taken moderna and pfizer and people who have taken j&j with the br breakthrough infections? i ask because a number of people who have the j&j that seem to have the breakthrough infections i wonder if there will be boosters this fall or if people who took j&j may take the others or do you think there willbe boosters that will deal with the variant in a meaningful way? >> i think people have a lot of options. increasing speculation in the press among the providers that people who got the j&j vaccine may take a booster with sees and al that may be an mrna rack seen. it could be the j&j. it was studying two doses of the vaccine. there is experimental evidence

that shows it may not be as protective as the mrna vaccine if you got vaccinated with the j&j, you will have a lot of options in terms of what you do, i believe. as a one-dose vaccine, it is highly effective that was a one-dose vaccine. that was the primary virtue. 234 anyone who got the j&j, they have the option of getting additional dose of some other vaccine. >> how much has it slowed, the vaccination rates, doctor? we will get stuck at a level that is not sufficient >> it slowed a lot i don't know we will get stuck at a level that is self opt myse optimizing there will be a rush of people getting vaccinated

we need to shift strategy. we had the top-down strategy public health officials on tv and running the national campaign anyone persuaded by dr. fauci or by me or anyone else in the national public health position got vaccinated i think we need more of a grassroots effort to get the vaccines in the hands of doctors and encourage local communities to get vaccinated. that means distributing them to the doctors offices. i think this will be more accessible in doctors' offices come the fall. that will be a boon to get more people vaccinated. if you look at the commonwealth of the people unvaccinated, 50% said they would likely get vaccinated by their doctors. that means we need to tolerate wait

we had large vaccination sites once you deliver the vaccine through doctors' office, you don't use up all of the vaccine and some is leftover if we want broader coverage, we need to account for waste in the system >> scott, if you didn't get vaccinated, but had covid already, are you less protected against the other variants or are you just as protected if you had covid? >> we believe the vaccine is more protective against covid generally than natural immunity. natural immunity is protective it seems likely to pierce prior immunity if you were infected with the wuhan or b.1.1.7, you could get reinfected you are likely to get less sick, but you can get reinfected there is suggestion from the uk that people are getting

reinfected, but mild illness there is some residual protection bottom line, the protection from vaccine is more protective than the protection from natural immunity what is protective is after natural infection. if you go on to get vaccinated, they have very robust pro protection they may only need one dose of the vaccine because the protection is so robust. >> doctor, we hear about the side effects they seem rare it doesn't stop people from tweeting and social media. i don't know i think that's an epidemic how long do you think if you make a spike protein through mrna, how long does that last? that gets broken down for days you are not shedding these spike proteins >> it is broken down

immediately. the mrna vaccine gets transcribed into the protein or the mrna gets chewed up. this is not something that lingers in the body. >> i can't figure out the sequence of events that leads to heart inflammation or any of that stuff as rare as it is we hear a lot about it, as you know >> a lot of vaccine related side effects are reactive it is the result of the natural inflammation that the vaccine causes because it is inducing an immune response. when you induce an immune response, you have an inflammatory response. >> lipid vessels it has been tested quite a bit >> it is old technology. it has been around for a while >> all right, doctor dr. scott gottlieb >> thanks. we have more coming up on

"squawk. the future and more. the bank embraces the hybrid work model we have details of that after the break. and later, the ev company beginning trading on the nasdaq. we talk to the company's ceo you can watch or listen to us live anytime you can do it right now on the cnbc app "squawk"etnsig aer is rur rhtft

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time for the executive edge. ubs plans to allow up to 2/3 of staff working from home and office on a permanent basis. the move to embrace the hybrid model is led by the ceo ralph hammers. it is a counterpart to the u.s. companies which ordered staff back to the office in new york i think right after july 5th, maybe july 6th is when this is happening for jpmorgan chase and others we will see what this leads to when we come back, a big weekend at the box office. biggest since 2019 the latest success in "the fast and furious" franchise

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the latest chapter in the "fast and furious" chfranchise grossing $70 million joining us to talk about what it means for the movie theaters is

sarah fisher sarah, it took a huge hit, blockbuster, like an "f9" to get $7 $70 million back does this mean you have to be of a certain ilk to draw in an audience >> this is both, becky those adventure. those tend to do well. but it does show optimism for the theater industry we have 80% of north american theaters that are open that's a huge milestone considering a year ago we had 1,000 of the roughly 5,000 theaters open in the united states to your point, i am a little bit bearish on future films. i don't know that your typical animated family film is going to do great peter rabbit 2 a few weeks ago was nothing like this. >> 70 million is incredible.

this is the biggest since 2019 only 80% of the theaters is open f 8 right before f 9 took in $100 million 80% of the studios open, 70% of the profit is that because you can't pack people in quite as tightly >> you can't pack people in. people are skittish about going to the theaters. it depends weekend to weekend. this was a beautiful weekend we had a little bit of rain. to your point, some of the other f9 franchises, i don't think the studios expected it to it was expected to bring in 60 million this weekend there was never a major expectation from universal this was going to be a blockbuster. moving ahead, this will set the tone for the rest of the summer releases that it is possible to bring in a major haul if you have the right movie out in

theaters. >> theaters must be estate particular that this proves that you can get people out from the scenes this one universal chose deliberately you can only see this unless did you to a theater but there are going to be so many questions about what you do with other films. it won't make sense for other films out there. how much weight do the theater owners have and how much do the studio owners have when it comes to the negotiations? we're looking at all different ways of what you stream with. >> make no mistake, the studios need the theater revenue this is a lot compared to streaming. streaming is still new people are still doing signup packages, et cetera. we don't have numbers, becky cruella did 27 million and we have no idea for streaming moving forward, i would expect this to be a trend that you're

still going to see what we found during the pandemic is people love streaming, it's here to stay expect more of the hybrid releases that gives studios a little bit more leverage. they want to cling to the 90 day exclusive. >> that's my read. the studios definitely need the theater takes on these things. it used to be the theaters that this all the clout when it came to this and i just don't think this is the case anymore they have other options. >> they have other options and consumers are craving it the market is going to move where the consumer dollars are going. we don't have data quite yet on what the streaming services are doing. the one data point that suggests the consumers like it at home. some studios look at warner brothers and hbo max, everything

in 2021 said they will debut at the same time. others say let's experiment. the fact that disney is still continuing to put things out with streaming as well as in theaters suggest it's a strategy that's working quite well. >> we have a lot of other blockbusters what do you think we should really be on the lookout for >> well, i think "boss baby 2" is going to be big for the holiday weekend. "black widow" will be the second biggest out in july. does this momentum you saw this past weekend with f9 carry through to the summer as people open up and travel and vacation and summer camp? right now we're still a little bit skittish if the coronavirus continues to go away, i think those things are going to continue to build momentum i'm curious how that will

impact. >> that's what i'm trying to figure out do we ever get back to where we were prepandemic are we ever back at 2018, 2019 numbers? will this be forever a diminished place in time >> pry prediction is we will never go back. it used to be for the past two years that the box office would bring in, what, $11 billion in north america. that was a pretty huge number. it was getting bigger not because we were selling more tickets because we were charging for more i just don't think that's ever going to be the same theater windows are not going to remain at the 90 day exclusive i think they would be lucky to go back to a $10 billion box office in 2022 that's if the pandemic fully goes away. we still have variants and things we're dealing with in the fall. >> sarah, thanks good to see you today. >> good to see you, too.

thank you. f9 is a universal picture owned by our parent company, comcast. ev company electric last mile begins trading today. we'll talk to the company's ceo. teus perellaweinberg co-founder, per weinberg this is "squawk box" on cnbc hey, dad! hey, son! no dad, it's a video call. you got to move the phone in front of you like..like it's a mirror, dad. you know? alright, okay. how's that? is that how you hold a mirror? [ding] power e*trade gives you an award-winning mobile app with powerful, easy-to-use tools and interactive charts to give you an edge,

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. futures, a little change ahead of the open. we've got a look at what you need to watch and where you should be putting your money to work. senator bernie sanders says he's open to a partial cap on s.a.l.t. deductions. high earners may still be on the hook josh gottheimer is here to talk about the changes. electric last mile set to go public the former ge executive jam taylor on the push to start raising capitol and push for investors. the second hour of "squawk box" begins right now

good morning and welcome back to "squawk box" right here on cnbc. i'm andrew ross sorkin along with becky quick and joe kernen. u.s. equity futures after what was a pretty spectacular week for the markets. dow would open off 15 points nasdaq off 39 points s&p 500 looking to open 2 1/2 points higher. headlines to bring you at this hour boeing 777 x isn't likely to be certified until mid to late 2023 that's according to a letter from the faa official boeing includes some technical details that must be resolved before the aircraft can go.

it should be noted that in addition to the market forces pushing the prices higher, some states are planning to raise their gasoline taxes on july 1st. encouraging signs, f9 topping the box office it's the biggest debut of any movie since the pandemic began we should point out universal is owned by cnbc. comcast, are you going to go out and get a lot -- i don't think the taxes is happening in new jersey would you go out and get a lot of gas, pile up barrels in your backyard before the tax goes into effect? >> no, and i have not been to a theater. have you been to a theater >> i have not been to a theater. i have been to a gas station now i want an ev so i can plug it in at home. >> you can get whatever you want you're a person that could do that, but they went to "in the

heights" and said it was unbelievably great have you heard of that >> no, of course not. >> oh, the -- >> it's supposed to be spectacular. >> you don't have to go -- you should go see it in the theater but you can watch it on hbo max. >> you haven't seen it you haven't done that yet? >> i have not. it's on my list. >> here we go. another halloween reboot. >> what is that now? how many >> this is jamie lee back in this one. >> she was in the last one. >> this has a reasonable -- he didn't really die in the fire. the s&p -- michael myers the s&p climbing to a record high after this week, fueled mostly by bank shares. the dow also up over 3%. best week since back in mid march. joining us for his take on the latest market trends is barry

knapp. iron side macro economics managing partner barry, you're fed focused. you're fed obsessed i would say almost also got your eye on this infrastructure dance you think that there's been a hawkish pivot that they didn't try to push back against is that bad? >> well, ultimately, you know, these uncertainty shocks that we have when the fed starts normalizing policy are not terminal for the bull market they're not terminal for the expansion, but we're a pretty big deal this was my framework for the whole year was that we would not have a significant correction, anything bigger than 5 or 6% or so until the fed started cutting back on the asset purchases. once that happened, we're likely to get a decent sized pull back.

one of the things that's changed since the period before the financial crisis to after the financial crisis is the fed's involvement in the mortgage market because of their involvement in the mortgage market, they suppress volatility in a very significant way. the single biggest form of volatility in the treasury or interest rate is mortgage pre-payment risk before the crisis, rates would fall people would pre-pay their mortgages. the holders of the bonds would lose their bonds that would cause the move to get exacerbated. the typical fed-related pull back would be 8% after the financial crisis, it was more like 14 the biggest pull backs came when the fed had been buying quite a bit of mortgages so the end of qe 1, qe 2 and then the balance sheet contractions in 2018 the fed does need to get out of the mortgage market, no doubt.

i think we're going to have a significant pull back and shock higher in rates when they do that part of the rate story as you eluded to, joe, was related to the infrastructure program that was the catalyst for the move higher for rates in the first quarter. not growth expectations, not inflation expectations rising. it was about the fed borrowing an extra $1.9 trillion that the market wasn't expecting. when they get back to that point, and they will, whether it's directly tied to a bipartisan deal or not, they are going to borrow more money, a significant amount more, we'll get a move in rates. there is probably a decent risk off episode coming within the next one to two months that investors need to be prepared for >> the biggest fear is that there really are three mandates. they may be kind of ignoring the price stability mandate at this point for full employment, but the third one is to keep

everyone happy in the stock market maybe it's implied they're very low to rock that boat if you do the first infrastructure and then if this family plan which is, i don't know, is it 6 trillion whatever they're trying to do, but you're not going to be able to have -- if you are borrowing that much money, the fed has to be your partner. it has to be the partner of the democrats and the biden administration in funding all of that spending. you can't fund it. that's the ultimate roach motel that you can't get yourself out of >> i couldn't agree -- >> aren't they getting more and more sort of stuck >> they are, and i think that's right. once we get past this first normalization shock where they try to start getting out of this policy they find that we get a

fairly significant risk off episode, we will -- the fed will be behind the curve through this cycle. bill martin, who was president or chairman of the fed back in the '60s used to say the fed is independent within the government, not of the government ultimately they funded or financed johnson's great society and war in vietnam but i think the same thing will occur. that's part of the reason why when i told people to reduce risk, i didn't say to get out of all of the reflation beneficiaries. this is like the 1960s we have expansive fiscal, monetary policy. the fed is ultimately going to have to finance the spending they work for congress so i do agree that that is going to be the theme of this business cycle. it's part of the reason i am in the reflation -- this is a different inflation regime camp. >> yeah. barry, you're out there, huh are you in the greatest summer

in the planet occur in colorado, don't they >> it's been fantastic, joe. golf out here is nice, too you'll have to play sometime. >> 300 days a year of sunshine no humidity. boulder -- you would live there. well, you do live there. >> i do now. >> okay. all right. >> i'll come back and see you. >> and you did. >> yeah, i did i did. now i live in new jersey. >> hang in times square. >> okay. was i on camera for that >> i think so. >> just ducking. seems okay now you see it on the front page here. >> yes, 5:30 yesterday, picture of the guy running down the street shooting himself. 5:30 p.m. i should say >> that's not the first time >> another one about a month ago. >> a couple weeks. >> really? >> hey. >> it's fun.

>> times square. >> it is. when we come back, ev startup electric last mile starts trading today the company's ceo and former gm executive joins us after this break. take a look at the futures this morning pretty flat. you had a pretty big round s&p set a record all kinds of things. strong first half as we wind up june the dow futures indicated down 2 1/2. s&p up 3 points. nasdaq up by 38. "squawk box" will be right back.

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ev company electric last mile will begin trading today on the nasdaq phil lebeau is here and joins us with the special guest hi, phil good to see you again. >> good to see you, becky. let's bring in james taylor. i call him jim he is the ceo of electric last mile he joins us from the company's plant in indiana it is the old hummer plant you own the plant. how soon will you be able to ramp up production and how soon before we see the first elm vehicle? >> phil, great to see you again and talk to you this morning from indiana we start hiring literally today as we ramp up from our transaction on friday and initial builds probably be this

august for our pilots but we'll be launching production this fall from the plant. >> jim, you were for a number of years an executive at general motors you know how competitive this business is and you know gm, ford, rivean and other automakers will be coming out with electric vehicles how do you stand out in that market realizing how competitive it will be over the next year? >> i agree this's a super competitive market coming now in the ev space, especially with gm and ford's huge announcements there. we have a different approach to this, phil let me go through this for you first is we are awe pure play electric commercial vehicle. not in retail and commercial, strictly in commercial space that's different than the others second, we're launching into an empty part of the market white space in the electric van, class 1. no other competitors announced from the legacy manufacturers

and evs. we have a different business plan we'll be using existing reliable hardware, platforms, parts from an existing oem already in market today and running allow us to get to the market and faster at a much, much lower cost we have a different business plan to this unique approach. >> what's similar, jim, to other ev startups is you announced your spac i'm not sure how long ago, four months, five months ago. that's when ev spacs were red hot. you could not be anybody who would be like, yeah, let's put some money into this look at what happened to lordstown. nikola had their issues. how do you convince investors that you're not the next lordstown, you are not going to have the same issues >> sure. part of that is our different business approach. we have a break even point much

earlier. we think our shareholders have a much better opportunity, never guaranteed of course, for a very strong return on their investment. >> do you sense that skepticism that has turned in this market when it comes to ev startups do you hear from some people, let's be honest, that they're saying, i'm not exactly sure what do you hear back? >> there's no question i think back to your last question, phil, we hit it at the right time coming out last fall. coming through the first quarter and second quarter we're pleased to have obtained our cash and executed our closing. i'm glad we're not starting a

spac today with gm announcing going across the board, ford, other customers, fed ex, large, large u.s. public companies announcing their transition to evs, i think the positive part is the space has overwhelming demand so that's good for all of us. there's expression, rising tide lifts all boats. having more people in the space brings the supply community to the table. no question there's been some challenges in a few of the spacs. as long as we stay conservative, focused and stick to our business plan, we'll be fine. >> jim taylor, the ceo of electric last mile solutions joining us from indiana. i can't wait to get back down there. when you look at electric last mile and where they're building their urban delivery vehicle you know what that plant used to build? the hummer it shows you how things changed. people were saying, boy, that is

a red hot plant. now they are part of an ev startup. >> absolutely. now isn't the hum squlmer cominc separately >> general motors is building that. >> different. >> well, it is the same brand, early 2000s. just commanded the road before general motors bought it. >> the one that arnold schwarzenegger used to drive around i remember it well. >> yes. >> phil lebeau, thank you for that interview appreciate it. perella weinberg going public. peter weinberg joins us in a few minutes. as we head to a break, bouncing off of 30,000 "saw rur n,000 right aboutow quk"etns right after this

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when you post your first job at indeed.com/home. really interesting story here welcome back to "squawk box. shares of intellia therapeutics are up, what's the word we should use, 52%.

soaring. this is a crisper. it released positive data from an experimental gene editing data this is a bad disease and if this is one of the first times you've seen an intravenous infusion of this compound and it's a human gene and it prevents the production of this protein. >> this would be amazing. >> in liver cells. >> to see how they can do this with so many other rare genetic -- >> any type of -- this is a hereditary disease there is an abnormal gene and abnormal gene product it's

blocking intellia is working with regeneron. there are other gene editing stocks on the rise the ark genomic revolution etf. this is up like crisper, reagain ner ron and editas. >> a year ago they said it would be a few years before you could use that >> that 52% gain in intellia >> i don't know what's next. you can only imagine how many candidates there are. >> 47,000. >> just overall genes? >> abnormal. >> crisper could fix. perella weinberg with a spac talk to ceo peter weinberg

then congressman josh gottheimer joins us to talk taxes and the future of s.a.l.t. rieelf. stay tuned you're watching "squawk box" on cnbc 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. get ready for it all with an advanced network and managed services from comcast business. and get cybersecurity solutions that let you see everything on your network. plus an expert team looking ahead 24/7 to help prevent threats.

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welcome back to "squawk box" this morning famed investment boutique perella weinberg just went public started trading on the nasdaq. a combination of warner media and discovery. joining us first on cnbc is peter weinberg the ceo of perella weinberg. the ticker on the nasdaq is pwp. good morning to you. great to see you, peter. there's been a lot of speculation that you would want to pursue an ipo

instead you pursued a spac i'm curious why. >> good morning, andrew. good morning, everybody. thank you for having me. we've been thinking about this for a long time. we've been a private partnership for 15 years we had plenty of time to think about the firm, our structure and our future there are two questions as i see it, andrew one is why are we going public two, why did we pick a spac? we are going public because we think there is a significant growth opportunity for the firm going forward and this is the best way to pursue it. with respect to the spac itself, the reason we picked a spac is because it's a transaction as opposed to a process given all the constituencies we have, our founding investors, retired partners, very important constituencies for us. it was easier and better to have a spac transaction as opposed to an ipo process >> in what regard though because i think there's a lot of business leaders today that own private companies that are thinking about, you know, do i

do a direct listing? do i do an ipo do i do a spac it felt like the euphoria sort of pooled. what do you think? >> yeah. i think first of all the choice, those three choices are important choices and they really didn't exist years ago. so i think that's a good thing and i think it's -- any option you pick you're going to end up as a public company. it's just a vehicle. and i think a lot of the issues surrounding spacs have been less about the structure and more about the companies sometimes that were unprepared to be public >> in terms of being public, i remember when you founded this company. i remember going over to your office in the gm building and you and joe and we had a long conversation about what you were trying to do to create a company. i would have said back then that you might have always wanted to be private because part of it was in reaction, i think, to the

pressures of a public investment bank, the pressures back then that were taking place at morgan stanley, the pressures then that were taking place at goldman sachs. i'm curious how you think about that today >> yeah, i mean, we've grown a lot over 15 years and it's been -- you know, it's been a real journey and a really interesting one and a really positive one and you make judgments and decisions at the time which best suit the company this really bust suits us now. i'm not worried about being public affecting our firm. i mean, what's really, really important to us is serving our clients, attracting the best people and providing a growth opportunity to our new investing partners we think we can best do that as a public company >> let's talk about the deal environment. because you've been involved in some of the biggest deals at the moment discovery merging with time warner is probably -- warner

media, i should say -- one of the biggest. are we going to be a lot more headline-grabbing deals like that >> yeah. i think our view, i would say this is true for all of -- not only the independent firms but the big firms, the merger environment is extremely, extremely active much more so than we ever thought it would be. certainly during the dark days at the beginning of the pandemic we think and i certainly feel that the intermediate term is going to be very, very active. if you look at -- we look at our business through our six industry groups. financial institutions, consumer, health care, et cetera and when you look at each of those sectors there's one thing in common, which is there's an enormous amount of change ahead. if you look at the book ends of energy on one hand and health care or technology, say, on the other, those are very different industries with different pressures. they're all very complicated

right now and they're changing a lot. that is really causing a pretty broad-based discussion on strategic activity across the board. >> right where do you think we are in the cycle? the reason i ask is i think you and m&a are broadly a good barometer of confidence in the corner office. sometimes the confidence is justified, sometimes it's not. if you were to map m&a activity to the s&p, it's actually not a bad way to think about the world. >> yeah. confidence level right now is very high, but i would say even more important than that, in our experience chief executives feel an enormous pressure to create value and to outperform their competitors. and so, yes, there's confidence and, yes, that creates an environment in which strategic activity will occur, but it's really -- it's almost more the pressure than the confidence

because the future is -- who knows where we're going to be. yeah, there's a high level of confidence today in the market absolutely >> given the potential tax conversations that are going to happen in washington, are you expecting a sort of onslaught of transactions before the end of this year, especially in the private equity space and other places like that >> yeah. the pace of selling activity fish yated by selling activity is definitely high er i don't often see a company that has no intention of selling and then because of the potential tax law change they're selling i wouldn't say it's that extreme but the general level of activity is definitely higher right now in that context. >> and in terms of the regulatory environment, i mean, we're looking at even smaller transactions where amazon is

buying mgm and now the government is going to look at that how are you thinking about that? when you're advising ceos, are you looking at this as a very tough regulatory environment what type of deals get through what don't how long do they take? >> i think there will definitely be a higher level of scrutiny, which by the way is not all bad. i don't really think that's going to harm the system it's not all bad but there is a higher level of scrutiny it's a very important piece of the puzzle when you are thinking about a strategic move particularly one that involves competition or an area that will be looked at very closely by the government. >> and as a result, for example, do you think like big tech can do a deal today? and when you think about the other media players out there, even in the universe that you just advised on, can they do a deal >> yeah. i think big tech can do deals, but, listen, they are all under

enormous scrutiny. their businesses are very, very good as they are, frankly. and so, yes, i think they can do deals. i think they will -- every move they make will be looked at with extra care by the government i think the pace will slow and they won't be able to do anything sort of uninterrupted, sort of, if you will >> finally to bring it back to spacs. as you're advising companies, how often are you advising companies to advise the spac group over the traditional ipo do you think that changes around what washington may do on the spac space >> i think what's going to happen in the spac space is there should be a level playing field when you look at an ipo and when you look at a spac, particularly as it relates to projections. i think we're still in the early stages of this round 2 of spacs and so i think that will happen. but, listen, i mean, every

company is different when we go and visit with a client, we look at the three different alternatives, direct listing, acquisition and ipos. each fits a different circumstance the important thing really is two years after the event you're probably going to have the identical shareholders >> thanks, joe. coming up, the in infrastructure deal may be moving along what does it mean for s.a.l.t. relief i'm glad we have all of those weapons of mass destruction undercontrol so we have a whole new world of s.a.l.t strategic arms limitations. >> about taxes. >> now it's about taxes. the real important stuff not the end of the world co-chair of the problem solve verse solvers congress

"squawk box" will be right back. a reminder that you can always watch us live on the go on the cnbc app "squawk box" will be right back. ♪ ♪ ♪

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welcome back to "squawk box," everybody. the futures relatively flat after big gains for the markets. dow futures up by 5. s&p 500 is up. nasdaq futures indicated up by 7. much more on the markets at the top of the hour. that's when we'll be hearing from allianz chief adviser, mohamed el erian we will take you behind one of the most successful business partnerships ever. i sat down with warren buffett and charlie monger the two of them talk about their six decade friendship, the first deals they did together and what they say makes berkshire and their leadership so different than anywhere else in the world. buffett and munger will appear tomorrow at 8 p.m. taxpayers in high tax states like new york and california may be taking comfort in news that

bernie sanders's tax proposal calls for s.a.l.t. relief. s.a.l.t. caps are here to stay robert frank joins us with that story. plus, reaction and s.a.l.t. talk with congressman josh gottheimer co-chair of the problem solve very caucus. posh virtual receptionists.

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♪ me and you have all the fame we need ♪ ♪ indeed, you and me are we ♪ ♪ me and you singing in the park ♪ ♪ me and you, we're waiting for the dark ♪ the infrastructure deal seems to be moving along

there are questions of what it means for s.a.l.t. relief. robert frank joins us. good morning >> good morning, becky high earners in high impact states were cheering the news that bernie sanders is supporting s.a.l.t. relief the amount in his budget, $120 million over five years, is less than 1/3 of the cost of the full repeal of the s.a.l.t. cap which means it's only a partial repeal what would that look like? democrats had been talking about raising the cap to 20,000 or 25,000 from the current 10,000 now the focus is shifting to an income cutoff of $400,000. that means you would get rid of the cap for those making less than $400,000 a year but keeping it entierely for those who make more than that that would create a new income clip let's say a new york taxpayer had $399,000 in taxable income and $499,000 in state and local

taxes. if they earn $401,000, they would pay $12,000 a year more in taxes because they would not get to deduct that s.a.l.t now democrats from high tax states continue to press for a full repeal. nothing is decided this is all being discussed but since most of the benefits of a full repeal go to the top 1%, a full repeal of s.a.l.t. looks increasingly unlikely. guys >> yeah. increasingly unlikely, which may not come as a surprise the idea that you get any relief at all may not be a surprise when you hear about it, robert, which way are people leaning the idea of the income deduction or raising the cap where are the winds blowing? >> the income deduction is the latest discussion. that is the focus. again, it might be more attractive to president biden because he has said he will not raise taxes on anyone who makes less than $400,000 a year.

that they hope could get the white house on board because, remember, until recently, the white house hasn't said that whether s.a.l.t. is part of the biden plan or not. he hasn't come out in support of it maybe this would get him on board. right now the income is the more likely scenario. this could all change. >> that's where you think the biggest roadblock is right now, the white house? >> no. the biggest roadblock as you and joe and andrew are talking about are the progressive wing of the democratic party 57% go to the top 1% plus it costs over $400 billion a year over 5 years why would we do that so the real block is the progressive wing of the democratic party and then second to that is the fact that this was never part of biden's tax plan >> robert, thank you we will talk with you again soon joining us right now to talk

about the future of the state and local tax deduction and if it's here to stay or if it will be lifted is new jersey congressman josh gottheimer. he's the founder and co-chair of the s. amp l.t. caucus a group of 30 something republicans and democrats who are most focused on lifting that s.a.l.t. cap congressman josh gottheimer, tell us what's happening here. you heard what robert said and how he laid it out what would you be okay with? >> hey, becky. thanks for having me i would look at this slightly differently. first, very early in the process. we haven't seen any proposals about anything expect top line numbers. i see bernie sanders put out we haven't seen any proposals on the tax side from the senate obviously totals from the white house will come down significantly in any proposal.

we should put that out there first. the second thing, the good news are the progressives are starting to talk about reinstating s.a.l.t. it's early to know the details it's about 8$80 billion a year t fully reinstate the deduction and make sure we get it back for states like new jersey, new york, connecticut, california and actually get tax cuts to people here who got hit so hard in 2017. so i'd say it's incredibly early in the process we know this is a middle class issue. the median income tax is $15,000 compared to places where it's 5$ $550 if you say it's for the middle class, are you okay with them saying it only applies to people making $400,000 or less

>> i believe we need to fully reinstate it for new jersey, not just about the impact on income levels, it's having a huge impact, s.a.l.t. as you know, on people leaving states like mine and the impact it's having on all earners. when people leave, that has a big affect on schools, on hiring law enforcement, firefighters because the tax base drains out when people move to florida, texas, the carolinas it's something that hits programs that a lot of people care about and it's an issue unless that got put out there which people don't realize if you reinstated s.a.l.t. in new jersey, it would affect 1/3 of the residents 18% of them make $200,000 or less this is a tax issue that has an

impact on the middle class and people making more leaving the state. >> what does the data show you how many wealthy people have left the state in the last year or five years? >> depends what you look at. there's studies that i find to be pretty dispositive like u-haul and others. the actual people who pack up the trucks and they show jersey as number one or two state in the country in terms of those leaving the state versus coming, so you start looking at numbers like that, and then look at the census numbers and the growth compared to other states over that same period of time and you realize new jersey, new york, places like that are not gaining people, we're losing people net-net to other states. especially at the top end we're losing a lot of people, and businesses and jobs. this is really about our economy. about making sure we may things more affordable so they can stay here when they retire. the bottom line is i believe they are going to fight for and get the full reinstatement of

the s.a.l.t. deduction when things are said and done if we go forward with the package on reconciliation. >> josh, in terms of effective tax rates, federal effective tax rates, what do you think the federal effective tax rate should be for the highest earners in the country the reason i ask is because -- we often don't talk about this enough what s.a.l.t. allows to you do is create a deduction. when you look at what that does in certain cases, the wealthiest are not paying a tax rate of 39 or 37% they can in certain cases, depending what else they're doing, pay under 30. we're not talking about capital gains or other things getting integrated into that in a state like new jersey if s.a.l.t. was put-back into place, if you were a state that didn't have a high tax rate, they would actually oddly be paying more of their income to

the federal government and they would be paying a higher federal tax rate >> if you look at jersey, for instance, and we know this about new york city as well, the state and local taxes are significant on top of the federal taxes. so we're at least 10% here in northern new jersey or higher depending on your income bracket. in new york city i think that number is like 14%. >> yeah. >> so as you know, that encourages -- what i worry about is people wake up in the totality of the tax bill and say i could save 10% by moving out of the state and s.a.l.t. is an attempt to try to give some relief as part of the total package that you look at, right? what's difficult about all of this is you have to look at the total impact of everything proposed, add it all up and then see what's the effect going to be on your state, on the people you represent. that's kind of how i'm looking at this. >> right no no, congressman, look, you know

as a new yorker where i stand on this because selfishly it would be in my best interests for the s.a.l.t. deduction to come back. the reason i'm asking you the question is if you live in a state like florida, on a federal tax basis your effective tax right to the federal government actually turns out to be higher than it would in a state like new york even though i tell you new york as a whole sends a lot more money to the u.s. government because they are givers and not takers. do you see what i'm saying >> i see exactly what you're saying one, you have to look at the totality on everybody, the state and federal. it's hard to break that apart. you look at a state like jersey that gets back 67 cents on a dollar and mississippi gets back $4.38 for every dollar it sends. you have to look at this in the totality of the impact both in terms of what we contribute to

the federal government and the taxpayer it's why if we pull this back, we have to get the bipartisan infrastructure package over the finish line and have the debate we're having over reconciliation package and make sure we consider both things separately and get this infrastructure package done which is so key to investment across the country, not just in any one of our states. >> josh, a couple of quick points budget reconciliation. can you do that twice in one zbleer the second package, if you do budget reconciliation, would you have to wait until next year to do it >> there's a lot of questions. i'm in the house and not the senate i'll leave it to my colleagues based on what the parliamentarian ruled, it's questionable about what you could do you can't just throw in the kitchen sink into these packages you have to be very particular

about what's in there. there were questions we thought we would have more but that was pulled back. >> in the very beginning of the interview you sounded like you were laying out your stance, at least your bargaining position, which is you think the bill overall is too big, the second bill bernie sanders is considering, but you don't think there's enough for s.a.l.t. there. how do those chips come down my guess is the only reason you have the budget that is there at this point is because they realized they can't get this done without you and the rest of the democrats who are kind of saying we won't do this without s.a.l.t. what does that come down to? >> the key difference between something and $6 trillion and i would argue when we look at this in totality of what programs are being supported, obviously a lot of thepolicies are important, child care, health care, the ideas being talked about here

and college, it's the specifics that are going to matter how much for each line item. what the programs look like. and what are the tax implications people are proposing. so i just think the number of $6 trillion is a number we have to get behind as the marker there are lots of ways to do this that i think are probably more affordable for the country. i'm concerned about inflation and other effects. i want to see what they propose in the tax code. that's why i think this is a long process it's very difficult to get on board with anything or impose anything until you see all of the specifics. that's what i'm going to be looking forward to as you know, becky, there's a you fourth seat in the house and a 50-50 senate specifics will matter in terms of getting everybody on board. >> how many democrats in your s.a.l.t. group, your kuk cause >> about 33%.

>> more than 4 more than 4 which is the key point here >> correct. >> are you still completely tied to this, that this is no s.a.l.t., no deal at this point? >> i've not changed my position. if you're going to affect -- whatever they come up with in the end is going to affect the tax revenue or make taxes go up in jersey, then s.a.l.t. has to be fully reinstated. that's my position and i tend to stand firm. >> josh, great to see you. thanks for joining us. >> thanks, becky thanks, everyone. coming up when we return, mohamed el erian will join us. as we head to a break, quick check on the futures right now on this monday morning looks like the dow would open off 20 points. nasdaq off 47 potsin the s&p 500 looking to open 3 points we're back with a big hour ahead.

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looks like president biden walks back some controversial comments and put the pedal to the metal the box office has a huge weekend thanks to the ninth installment of an action packed franchise. we're going to bring you all the details as the final hour of "squawk box" begins right now. good morning and welcome back to "squawk box" here on cnbc i'm joe kernen along with becky quick and andrew ross sorkin u.s. equity futures are somewhat quiet. a lot of articles being written. things look quiet. under the surface it's not quiet. too quiet. whenever it's too quiet, something might be getting ready to happen, although we do have the nasdaq starting to be up

higher the s&p up and the treasury yields bounced a little bit, 1.4 levels that we see now back. some of it has to do with a flurry of these weekend infrastructure deal. rob portman, one of the republicans working on a bipartisan package says the deal can move forward after some clarifying comments from president biden. >> never mind. >> i thought he knew him pretty well i saw his face when -- >> rob >> yeah, rob when he was sitting there with the president. >> it was like -- >> looked like he had swallowed -- >> for people coming out and announcing a deal, he looked pretty inuncomfortable with wha was happening. president biden looked fairly comfo comfortable. the rest of them, not so much. >> the president said he would refuse to sign the package if it

didn't come to him along with another bill it could be $6 trillion. after an outcry from republicans, president biden walked back the remarks. he said that wasn't his intent however, biden has asked senate majority leader chuck schumer to schedule those for the senate action speaker pelosi said the first bill is a non-starter unless the senate passes the second bill. i don't know how you get into that i don't know what that is. more sausage more sausage being made though. >> no, but just the back and forth of this. this is pretty public sausage at this point by friday afternoon people were like, wait a second. this is a disaster, which is why president biden came out and spoke on saturday. very unusual to issue that

statement coming out on a saturday. >> i made comments last week about sausage that i do regret i didn't mean to imply i don't like sausage. >> you like eating sausage, you don't like watching it being made. >> i like links, pizza sausage in fact, it would be easier -- >> okay, bubba. >> would be easier -- >> popcorn shrimp. >> i don't think i like blood sausage. >> oh, yeah. >> that's in the bill murray movie, blood sausage you like all sausage, sorkin >> all says sages. love it. >> you like links or pattys more >> no, links links. links over patties. >> when about a sausage and egg mcmuffin >> hungry? >> i'm trying to be good these days >> are you really? all right. >> i'm trying to be. >> trying to be. trying to be but the way -- >> unless donuts come into play. >> what is it stuffed into >> i don't know.

casing. >> what is the casing? is it intestine? i mean, do they wash that real good. >> would you -- >> do they rinse it -- >> peopleare eating breakfast. >> eating sausage. you need to know these things. you don't want to know how sausage is made. that's what started all of this conversation we're seeing it. tesla is virtually recalling nearly 300,000 cars in china to implement a software update related to assisted driving and authorities there say the cruise control can be activated accidentally this you do not want to have happen causing the cars to accelerate actually have to return the vehicles in order to receive the update or be done via software over the air how many times in the past have you seen where someone tries to hit the brake and hits the accelerator? bad things can happen. >> oh, yeah.

>> cruise control. >> cruise control. >> yeah. not good all right. the s&p 500 is sitting on a 14% year to date gain, but as we approach the end of the second quarter and the first half of the year, we're getting quite a few mixed signals for the stock market and the economy what should we expect for the rest of 2021 mike santoli is here he's going to join us with his analysis hey, becky >> there are some offsetting currents in the market the most important thing is the underlying trend of the index. s&p 500 up 14% year to date. it is still in a pretty sturdy up trend even if it's slowed down and flattened out. prior years when we've had at least a 12 or 13% gain in the first half of the year, 3/4 of the time it adds to those gains in the second half one year when it gave back an appreciable first half increase. that was in 1987 obviously this is one year and you see it stair stepping

higher one little quibble is this last phase of the rally has been narrower there's an anomaly going on. if you take a look at the equal weighted russell 1,000, which is market cap weighted, you've seen the market cap weighted version take the lead. that's this orange thing the equal weighted version is below the highs. you had a majority of s&p stocks lower than the average price over the last ten weeks, 50-day average. maybe it's just 1/4. maybe it means there is some wear and tear underneath also the yield story has held the value in cyclical in place take a look at the s&p bank stock index. obviously the exact same chart peak back in march these are different scales not exactly proportional in terms of the percentage gains. when they peaked, when they had

the most momentum, that has been steady you had very low volatility but also no net gain over the summers inthose years, guys. >> that's what i was just going to ask you, mike if you look at the summer when volume tends to drop off, are things more volatile then? are you more likely to get air pockets that you hit or declines >> you know, usually you can get just a compression of volatility where it really doesn't move a whole lot but, yes, later in the summer is when you start to see a greater possibility of having a little more choppiness now mid july is usually the cutoff seasonally when it starts to look a little dicey for august and september or tougher months in general but those are background contexts. it's not something that every year follows a script. we always talked about since may the market has not been strong but it's definitely held the up trend. that shows you it wasn't as if

it was some kind of a sign you should be exiting the market back in may. >> volume has been down. it's not down more than it would be on any seasonal chart it does make you start to wonder are people going to be trading over the summer? are they watching the market as closely as they have been at this point what do you think? >> it seems a little bit less closely in terms of the volume of things like retail options trading. it's been pretty active. way busier than two years ago. it has come off the early years high volume follows volatility. when the market gets moving fast, when you have the sharp moves, that's when you're going to see people move people are fully allocated they have pretty rich equity allocations. they don't need to do a ton of incremental buying there's not a lot of leading people are in bulk yes, you always have the possibility of air pockets and a little bit of a storm passing

but i don't think you get a clue boring markets tend to be bullish markets. >> good point. thanks for setting us up before the opening bell we'll see you later. joining us to talk more about the markets and what to expect is allianz adviser. what are you thinking right now? are you nervous about where things stand are you feeling pretty good about things what would you do? >> so i feel pretty good in the short term for the reasons that i've shared with you over the last few months. it speaks to what mike said. boring markets tend to be positive markets what's boring? people are very comfortable with the growth story and every day we get reinforcement that global growth is picking up people are comfortable with the notion that inflation is transitory after all, we've been reassured of this over and over again by central banks and people are

comfortable that central banks will continue to be ultra supportive nothing has changed in all three. even when there's some doubt, we had top fed officials come out and say, no, don't worry that's why financial conditions are looser than they were with the fmoc as long as these three themes are reinforced, we will continue to see this positive momentum. >> mohamed, we probably -- well, i shouldn't sayprobably. am i correct to think that the next issue with the fed, the next time we'll be getting guidance from them is in august from jackson hole? >> yes and the market expects that we will start getting some indications of what the tapering will look like when will it start at what pace and what comes thereafter. i want to stress that the market has gotten very relaxed because

the fed top management is very relaxed. if you actually went to look at the numbers on inflation,you would start having serious doubts in your mind as to how transitory inflation is, but as long as the fed believes it's transitory, that is what matters for markets. you've got to listen to what the top fed officials are saying, even if you disagree in the short term with their judgment. >> the other thing i would say is when it comes to the economic growth picture, we've watched flairups of the pandemic, watched new variants come on and watched new governments say they're going to shut things down or extend the conditions they've had in place the market doesn't seem bothered by that at all why do you think that is >> so first we are seeing things that are worsening they have to do with the delta variant. sydney, australia, they have had low infection cases. locked down the whole city for

two weeks because of delta israel, which has had great success on vaccination, has reimposed the mask mandate intoors. the united kingdom battling delta has had pop-up vaccination centers. the reason why, delta has shown to be the most infections. it has weakened the link to hospitalizations and deaths. that's why the economic implications of the delta variant are like the past. if you are not vaccinated, then you are facing higher risk because of delta. >> i know it's the unknowns that we don't know about that people always worry about what does worry you? we're kind of looking like it's

all clear on most of the fronts you just described what would you be on the lookout for? >> so the market certainly believes they're all clear because the top leadership of the fed is telling us we're all clear. as i've shared with you before, i have concern about the inflation story. every day i see more evidence of inflation not being transitory and i have concern that the fed is falling behind and that it may have to play catch up and history makes it very uncomfortable if you end up in a world in which the fed has to play catch up. normally we end up with a recession because you have to slam on the brakes as opposed to slowly taking your foot off the accelerator, which i believe is what's going to happen i am worried these are not day one issues these are down the track we're not going to have evidence and certainly not big evidence of the nature of inflation until

well towards the end of the year. >> mohamed, thank you. have a great weekend talk to you soon >> great conversation, becky. when we come back, some new headaches for boeing only this time they're not related to the 737 max. live report from phil lebeau after the break. plus, a super charged weekend at the box office. the 9th edition of "fast and furious. we'll tell you how much it hauled in. you're watching "squawk" on cnbc stay tuned

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and you can get the advanced cybersecurity solutions you need with comcast business securityedge. every day in business is a big day. we'll keep you ready for what's next. 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. welcome back to "squawk box. this morning the faa saying boeing's new 777x won't be ready for delivery until 2023. that is a significant delay. phil lebeau joins us once again this morning with new details. phil >> andrew, these details come from this letter this is a copy of the letter the fa assent to boeing executives in may, may 13th we won't get into all of the contents, just the important thing to take away is they bring the up important things. a litany of technical issues

that they do not believe boeing has satisfied or given the faa enough confidence in in order for them to take the next step in the certification process they also say that they do not expect the 77-9, that is the first version of the 777x, to be certified until mid to late 2023 at least two years away. this is the first flight that happened in january of 2020. the faa releasing a statement yesterday saying the faa will not approve any aircraft unless it meets our safety and certification standards. now let's be clear here, dave calhoun, the ceo of boeing, has said that they do not expect that this aircraft will be certified until the fourth quarter of 2023. so this is not going to change the company's immediate guidance this has been slipping they said, yeah, we expect deliveries by the end of 2021.

boeing issuing a statement regarding this letter from the faa saying boeing remains fully focused on safety as our highest priority throughout 777x development. as we subject the plane to a comprehensive test program, we are working through a rigorous development process to ensure we meet all applicable requirements the 777x, which is essentially replacing the 747 which has been phased out, it's gone, it's going to be the largest of its commercial aircraft, they have 320 orders now we should point out that when you talk with the airlines that have ordered this or have made commitments to order this plane, airlines like emirates, they're not in the market for long haul aircraft like this simply because the international markets have collapsed so boeing to an extent is not going to feel a big impact right away by not being able to deliver this aircraft until 2024

but, guys, this raises more questions about the relationship between boeing and the faa, particularly when it comes to certification of aircraft and inspection of aircraft as they move to the next step through certification and delivery >> phil, that's what i was going to ask does this portend and demonstrate that over time as they introduce new aircrafts, that just by default the process is going to be longer and potentially more contentious >> i think so. look, the faa, it took a lot of heat for what happened with the 737 max. it was not uncommon when you were in washington talking with lawmakers that they would say, oh, yeah, where was the faa? were they asleep at the wheel when everything was going on with the max as a result, under steve dickson they have become much more strident that boeing meets all of the requirements and that they are as tough as they should be on boeing that naturally means, andrew, that you're going to have a more

drawn out process when new aircraft are being developed and then ultimately certified. >> okay. phil lebeau, great work. thanks again joe, are you getting on the 777? >> i -- >> when it's out >> yeah, probably would. probably would i don't think i'm going to europe though just yet. >> the 747 had the double decker, right? am i right about that? >> yeah. >> i always liked -- i always liked to be up there i don't know if you can get that -- i don't know if the 777 has the two -- >> you haven't flown commercial in what, a decade at least, right? when was -- coming up -- >> i haven't flown in about a year but commercial is how i fly, as you know >> all right yeah, it's how you roll. coming up, movie ticket sales look like they're on their way back for a long-running franchise. we'll get the latest details from hollywood

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because you can't be in two places at once. pretty impressive weekend for the u.s. box office. the 9th installment of the fast and furious franchise scored the kind of opening we might have seen before the pandemic julia boorstin joins us now with

more people itching to get out, julia. we're going to see more of this probably hopefully. >> well, they do seem to be itching to get out universal's f9 surpassed expectations with a $79 million domestic opening that is the biggest opening weekend since "star wars," the rise of skywalker back in december of 2019 to put f9's numbers in context, it outperformed the 2019 spinoff showing over $400 million, hobbs&shaw and to make an exclusive for about six weeks in theaters before it's available to buy at home to video on demand. this weekend is a positive for the theater chains including amc. it has been trading more on reddit momentum than news at cinemark and it bodes well at

the studios which have held back their big budget movies to debut, many of them in the second half of this year, pushed to next year the question now is whether disney's "black widow" can draw big box office debut on july 9th when it simultaneously hits theaters this after warner brothers "in the heights" disappointed when it was simultaneously streamed on hbo max eric handler tells us the industry is 50%, 60% back to normalized levels. a good portion of canada remains closed and a good deal of states have not lifted capacity limits. studios will increase the number of films it released and full disclosure, guys, f9's universal picture is owned by nbc universal which is the parent company of cnbc. joe? >> what have you seen, julia

have you been out? do you go to a theater >> i haven't gone to a movie theater yet. i have been availing myself of all of the simultaneous releases lately watching some of the disney+ movies with my kids, but i haven't seen "f9" and "in the heights. they're both on my list. i'm getting used to the idea i have been appreciating the opportunity to watch films at home i'm going to be excited when the time comes. >> "in the heights," can you have a plot when you are singing the entire time. >> ♪ >> i'm waiting for halloween, another one. this one is a real one this could happen. john carpenter says it's one of the best yet, julia. will you keep your eye open? >> you know what, joe, there are a lot of horror movies coming out. that's exactly the kind of film they expect to get people out of their homes and into theater maybe "in the heights" people

were happy to watch at home. big budget actions and the horror movie is where you want to see with a lot of people. >> october 15th. can you believe it, i'm waiting for an october 15th movie. jamie lee. >> she was in the last one. >> she was that was a good one. he did not die in that fire. >> you're kidding? >> no, he didn't i can tell you he didn't just take my word for it thanks, julia. call julia hollywood she wasn't listening she's out there. as close as we got -- >> you give away the movie >> what's that >> la, la, la. i don't want you to tell me about the -- >> he's coming back. >> he obviously didn't die unless you believe in the reincarnated michael myers if you want to believe in that, i've got a bridge to sell you. he did not die in the fire. >> let's not get anything too unrealistic.

>> how many times did jason come back he's on 14. >> that's what i was thinking. 13 >> 13 or 14. >> meanwhile, with julia just talking about movies and amc, we're going to use that as a jumping off point for a conversation about meme stocks they've been one of the biggest stories of the year. some thought the theater chain could make it into the large russell -- large cap russell 1,000 index during russell's annual reconstitution. amc didn't make it but that's only because when russell took a snapshot of the market last month amc experienced the big share run up contrast, gamestop was big enough to make it into the russell 1000 we want to know how that's going to affect institutional buying and what happens to meme stocks when they grow up? joining us is herb greenberg great to see you this morning.

>> andrew, great seeing you. >> i haven't talked to you in so long i want to hear about what you make of this whole meme stock phenomenon and what it may do to the institutions and to these indexes. can you will a company into being, into success like this? >> well, obviously you can whether it's temporary or whether it's permanent as the meme goes, i don't know and neither does anybody else. i think it's important when you look at the russell and look at rebalancing, this is an important lesson people have to pay attention you are talking about what made it in, what amc did, what gamestop did i think the important number in that entire reconstitution beyond meme stocks, andrew, is the 323 stocks actually left the russell 2000, and of those what's really important, only 30 went up, including obviously

gamestop to the 1,286. think about that more than 10% went off to the russell micro cap. so the question is when you talk about these meme stocks, some of the spacs that made it into the russell 3000, we're all debating next year. that's the great part of this situation as far as i see it because that's the puzzle that you just don't have the missing piece for. >> you're asking the question but i'm curious what you think the missing piece -- what the missing piece looks like, meaning where do you think those spac stocks will end up, for example? >> oh, i any some of them -- >> higher or lower. >> going to be gone. >> gone? >> it depends on the market, right? if this continues to be a market that doesn't care about anything but the story and the projections inside those spacs, if that's all people care about, they'll continue to rise if you tell me what's going to happen in the market and i'll tell you what's going to happen to some of the spacs making it

in, the despacced companies, the ones that have nothing but projections. i like to call it hypothetical gibb gibberish. i think that's the part that, you know, when i start thinking about it, what's going to happen to these things, i say, i don't even know how they got into the russell 3000 i know how they got in the real question is i don't think they can stay there. if this market has any weakness, i think they deflate. >> if you're thinking about buying these indexes then, how does this change your thinking or should it >> well, andrew, look, i'm not a macro guy. i don't think about what mohamed might think about in termsof the markets. i look at individual companies i come back to single stock selection. i'm sitting here in a new venture looking at short selling of all things in this market, right? i think the opportunity in this market was better than it was, say, you know, two years ago and i think that you have to start looking at -- you always have to look at the underlying

stocks if you want to know what's going to happen in the index, i can't tell you what's going to happen in the markets i can tell you in those markets there are companies that don't deserve to be in those indexes some companies don't deserve to be public. any company can become public, right? just because you're public doesn't mean it's not some, as i said on twitter, being an index is not a good housekeeping skill, it means you've gone public you have to stay there if you have projections that are five-year projections, now you have a target on your back you have to make sure the projections stick and that you can live up to the projections that is the real challenge for any of these companies, especially if they sort of just are, you know, part of a great narrative and a great story. >> herb, when you think about a company like gamestop entering one of these indexes, do you think that ultimately helps the company or do you think it hurts the company because to some degree you're going to have a lot more focus on it, i would think, by institutional

investors rather than trying to figure out what to think about it. >> look, if the company can raise cash, most companies can, if they can raise cash, that helps them once they have the cash they have to do something with it to justify the valuations look, about -- back in january or december or some point i was talking to one analyst who does serious work, serious fundamental research we were talking about stocks he loved that were beaten down, one is cinemark. he's a really smart guy. he thought cinemark was the one to own he was talking about an amc competitor what he said to me at the time before the meme stock craze of amc. amc, that thing is gone. he wouldn't consider it as a fundamental analyst, he owns a lot of money what happens to him? what happens to amc? if management can continue to execute, can execute, maybe it becomes a different story and a

real stock that deserves this valuation. but, again, we're dealing with something you can't predict because you don't know >> but if you were -- >> i know you want an answer, but -- >> well, no, the other phenomenon that i wonder about is now i am sure -- you go on reddit, there's a lot of folks who have pushed gamestop up very happy about the fact that it's moving into these indexes. whether you think that unto itself is going to become a phenomenon, meaning you're going to have online communities effectively try to push and prop up a stock until it can push itself into an exchange -- into an index. >> it's got to stay there, andrew in the end it does have to execute. we all know that so you can play the games. i'll give you the structure of the market has changed pretty dramatically there are a lot of games going on here. whether it's the reddit crowd, high frequency traders, something else beneath all of

this, look, that's for somebody else to say. >> right. >> we're talking about a game here right now we're talking about, you know, gambling we're talking about who's going to win this game with gamestop and amc and the other meme stocks you're willing something, andrew that's what you're talking about. think about the question you just asked in the scheme of i guess you'd say these are great trades will they become great investments? that's really the question >> herb, it's always good to see you. i hope you come on back. i want to talk to you so much. i want to know what you think gary gensler should do we're going to tease that as the next time you come back. i'd love to get your thoughts on it thank you so much. >> you're welcome. when we come back, we'll tell you why shares of gene editing company intellia are surging. that stock up by 53% plus, check this out a mystery faang stock is

knocking on the door of the trillion dollar market cap club. only two companies there now we'll review it when "squawk box" comes right back. creamy premium ice cream and chasing fireflies. don't worry about me. i'm fine. you can't beat turkey hill memories.

could have some big ramifications. big medical news this morning. intellia therapeutics are skyrocketing meg tirrell is here to tell us why. can't imagine it's because of the market size of this particular disease or hereditary disease, meg certainly it's a proof of concept for maybe gene editing. >> you hit the nail on the head, joe. this is a very rare disease we're talking about for this application that intellia therapeutics had this tremendous success over the weekend this is crisper gene editing it won the nobel peace prize up there more than 52% along with regeneron this is the first time crisper has been use delivered systemically to the human body what that means, it was given as

an iv infusion for this rare disease known as attr, trans thy thyretin they make this genetic cut to reduce a gene that was creating a protein that would build up and cause these issues for patients what they found is after one administration of this crispr technology, they reduced the high dose by 87% only 6 patients. the high dose is in 3 patients you see the implications previously crispr was used in cells taken out of patient's body's cells and edited and put-back you can see alnylam, which is a

phase one competitor, has a ways to go. it's boosting crispr stocks. this has proven it can be turned into a medicine in a broader way. >> we were talking off camera. i know becky wants in. meg, there are a lot of hereditary diseases, but many are not hereditary you think of cancer, alzheimer's but they do have gene products if we can identify where the aberration is, whether it's a -- comes later in life, it's not in your stem cells, not in your germ cells, it happens to you as you're living, whatever, you could block gene products that cause just about anything using this technology. so the application to be way beyond just hereditary diseases. >> yeah. absolutely if you can figure out a protein you want to block or you want to

make more of, that's where this technology is potentially differentiated there are other technologies that block the production of proteins that anlyum drug can go into a lot more this is six pash nents a phase one clinical trial it's the first time we've seen it done, delivered as a medicine. >> i was going to ask if it could work the other way, create more of a protein that someone doesn't have enough of answer that question this is only six people. only a phase one trial at this point. have there been any side effects that have gone along with this has it been successful in kind of stopping things at this point? what do they say >> so far the safety looks really good. they saw no serious adverse events in the trial. of course, still early days. some of the questions i'm seeing analysts point out this morning is are there off target editing effects. they did not talk about seeing

any of those is this crispr going potentially to the wrong place and making any other cuts you don't want it making one analyst saying that could be a generational question that could take years to see. this is incredibly powerful, but we have to be very careful with how we apply it. >> i guess that's why this disease in particular, this trial was approved, because this disseeings will cause incredible damage so. >> it's a potential cure for the disease. >> they're both drugs but it's a -- stilence is the rna

it's an rna therapeutic. the idea essentially is what are the implications of silencing this protein forever if you use the crispr approach. that's another question if you want to take this route. >> wow alnylam is down. is this antisense? people thinking it's superior, the crspr might be superior. >> potentially that's aso, becky. sorry about that. >> meg, thank you very much. really exciting. can't wait to hear more from you about this thanks for the time. hedge fund fees are in focus for u.s. investors this morning. they're the subject of cnbc's inaugural delivering alpha newsletter leslie picker joins us she has more on that front hi, leslie. >> reporter: for the first delivering alpha newsletter, we interviewed christopher alfers

he said hedge fund outperformance after fees is a rare performance. >> our active managers added value and they did produce alpha but not after fees, and that's the critical point i think alpha is expensive it's hard to find, but they price it too high and so the net even over a year, three years, five years, even a 10-year time period we seldom saw managers consistently add value net of fees >> now to be sure, the nominal fees have come down over the last decade with an average of 1.4% management and 16% performance fees a recent ohio state study said they charged 15% when it comes to exit decisions from the lps despite the enduring push and pull, assets have never been bigger standing at a record 3.8 trillion as of q1.

the dlefrg alpha newsletter is distributed every other monday you can subscribe by going to deliveringalpha.com. when we come back, faang in focus as another stock in that group nears a market cap of a trillion dollars find out which one next. you've already got apple, microsoft there -- i'm sorry, amazon, microsoft there. we're going to talk more about this when "squawk box" comes ghbalk back they get our best deals. you got your existing custback got it. but, why did you use a permanent marker? because i want to make sure you remember. i am going to get a new whiteboard. it's not complicated. only at&t gives everyone our best deals on every smartphone. like the samsung galaxy s21 5g for free. labradoodles, cronuts, skorts.

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welcome back to "squawk box" this morning want to get down to the new york stock exchange where jim cramer joins us great to see you i'm curious about how you've been thinking about this market coming off of what seemed like a pretty great weeklast week whether you think there's going to be a different version of rotation this week the rotations are actually no longer robbing peter to pay paul we had that big rebalancing. we got through that okay we're going to see how much the banks are giving back. it's hard to fight the tide here with no earnings we just kind of have an open week, and i know you were talking about herb greenberg there's a lot of guys that can run any stock here i don't know if it's good or bad, but boy, they can run it. >> but then how do you pick them >> how do you pick a meme stock?

you look for short position. those guys are just insane you got to love the fact that if you have a big short position that allows your stock to go higher there's a lot of stuff that i like i'm looking at stocks, you know, really traditional industrials like the financials, but retail is so hot, andrew. just anything retail i mean, there's a note today about bed, bath. they're just saying great things i know that best buy is having a great period right now target's doing really well so i just see a lot to like, andrew, really a lot to like, and you just had that great interview with meg we've got a study of six people, and people are excited about that i've got to be bullish, andrew i just got to be >> where are you on any new views on bitcoin it's held. you had said if it held 30,000, does that mean you'll go back in at 30? >> i went into a theory in this time

i went back into e theer yum people use it much more to be able to buy things and i'm going to continue to buy it. i just think it's got a little more game. when you go buy an nft, anything like that, it's more of a currency >> i hope paypal really adopts it that would help us, us, like i am like part of the mob. how about ryou? what are you into? >> i don't know what i'm -- by the way, i don't know about the valuation piece of it, but i do thing long-term e theer yum, to me at least has a very bright future bitcoin might too. i don't know, i think in terms of the currency issue you're talking bout, i've said this before, you know, my kids are now into nfts. so they think they need to get wallets so they can have e theer yum. so yeah, here we are. >> that's why you need it. it's become -- i mean, young people like it, they buy nikes and trade nikes. i don't know it's an exciting time, which always should worry people, but

it's just an exciting time, andrew exciting time. >> we will see an excited version of you, we hope, in just a couple minutes on "squawk on the street." >> vaccinated and caffeinated, my friend. >> love it joe. >> redundant redundant. one of the last years big tech laggards now nearing a trillion dollars market cap shares of facebook are up 25% this year. i can't believe -- that performance is more than twice as good. that has doubled the nasdaq's performance. joining us to talk about facebook's turn around is gene munster, managing partner. so gene, you point out last year facebook was up 21% versus 43% for the nasdaq, so this is somewhat of a catchup. 25% versus the nasdaq's 11, but we're just under a trillion. only 3%. you say it will do that, and that regulatory issues in your

view could be positive because it will provide clarity. your issues that make you take a step back are different, and we'll get to those in a second explain the regulatory side of thins. >> well, it's basically the market is a discounting mechanism, and as we continue to hear waves around what's going to happen in the regulatory environment, facebook investors, the largest holders are well aware of what the cons chemical weapons -- consequences are going to be here once we have clarity and that could come in the form of months or it could be a year or two years, we're probably moving more towards clarity around the regulation piece, and it may seem tone deaf that i'm mentioning that in the week following the house committee making recommendations on potentially breaking up big tech but again, my experience in following these companies is that ultimately when you actually get clarity, that's going to be a positive, and so i

think that the assets, even independent ifyou think about instagram versus whatsapp and facebook, are probably collectively worth more than a trillion dollars, and so i see that as a potential positive >> fascinated by your talk about innovation and we have seen it again and again. something like facebook comes along, one of the most innovative ideas, you know, in recent history ten years ago, but they've been adding to, you know, how well they're doing as a company by acquisitions and by refinements, but not necessarily by reinventing the wheel like they did the first time around and you think that that is holding down multiples but about to change? >> well, i think it's a little bit more that that is still a question, outstanding question maybe if i can take a step back and this conversation i'm setting aside my philosophical

differences with facebook, i do believe the company from the highest level is toxic, but i think that would be out of touch with the reality that this -- and i'm going to get to the innovation comment in a minute, joe, but the reality is that two-thirds of the globe's internet population visits one of their properties once a month. advertisers crave that reach, but there is -- that's all good for 2021 i do think there begs a question around innovation. what is facebook, how are they going to reinvent themselves in fairness the company has facebook reality, this is the -- >> already are. >> and that's what you think is going to do it and you say it's addicting you sell it so much it makes me want to get on it. if i ever do get on facebook, i'm telling you, sell it, sell it, it's over once i do that i'm so happy with myspace basically. i don't see any reason to change >> thank you

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final check on the markets this is the last trading week of the first half of the year, and so far so good, at least for the

bulls out there. you're going to see this morning there are green arrows again the s&p 500 closed at a record high on friday it's indicated up another seven points today dow futures up by about 26, the nasdaq up by 56. big first half the s&p actually looking at what was the best week since february, record high. we'll see you back here tomorrow bye, everybody "squawk on the street" starts now. >> good monday morning, welcome to "squawk on the street." i'm carl quintanilla, with jim cramer at the new york stock exchange final week of with q2. it will be busy. jobs friday, we're going to watch some crypto, some infrastructure, pharma, even some good old fashioned weekend box office our road map this morning begins with the market records. s&p 500 is try to hold onto new high