that will do it for "squawk on the street." "techcheck" starts now. >> all the park rangers at alcatraz were one time guards. myself included. my name is john johnson. everyone here calls me vicki will you please follow me? >> i love vicki. he's great >> he's the best good monday morning. welcome to "techcheck. i'm carl quintanilla with jon fortt and deirdre bosa a lot more on the all time highs for the s&p as we come off the best week since february tech stocks, software setting new records today. we have that action. plus, bitcoin rallying from the lows, but a major crypto exchange gets the boot in the

uk and what some are calling the tech war of a new era, but should the players be recast >> a few movers of the morning tesla steering around a big china recall and one of kathie woods gene editing bets seeing a huge breakthrough. we'll have more on those stocks throughout the hour. >> but first, guys, "techcheck's" debut from one market we're back live from our bureau from first time since the lockdowns began last march san francisco is fully reopened. capacity limits, physical distancing, mask mandates, those are lifted and we're back. since i last reported from here, the nasdaq soaring over 80%. it is up 1% today. some of the most iconic bay area companies, the reason we put a show here have led markets higher, salesforce up more than 65% since last march twitter more than doubling, square quadrupling the big megacaps, apple,

facebook, google, bigger and more dominant than ever. it has been a bit of a stumble this year. not quite as much conviction from the tech names, but june has been a good month. >> well, you know, it is a mixed bag. even across, carl, some of the bigger tech names. i was looking at apple versus facebook in the first six months of this year if you look at that, you see facebook up more than 20%. apple is actually down slightly. and you might try to draw conclusions from that. if you step back full year, and you looked at 12 months of apple and facebook, they're just about neck and neck right here, which reflects the fact that apple had a strong 2020 in a way that facebook did not and then they sort of switched so now i think it is time to look at their fundamental stories, and there are fundamental technology stories taking place coming out of the pandemic apple trying to vertically integrate even further on the mac platform as well as on 5g

don't forget they bought intel's modem business trying to incorporate that if you think that apple is going to be successful there, then there is a big margin upside and performance upside to be had and that, of course, facebook, a key part of digital commerce as more and more retailers try to target that audience. we'll see if they can fend off shopify and amazon coming at them from different directions. >> it is a great point, jon. the pandemic did not stop a lot of these tech giants from making strategic recalculations during the pandemic in ways that will pay off, they hope, in the years to come. we'll talk more about that in a moment as jon said, some of the big tech stocks are going their own way this year after a synchronized surge in 2020 faang stocks peeling away in 2021 as investors look beyond covid. joining us to discuss is current call investing and tech and software with indexes at report levels is brian dieter welcome back good to have you >> thank you, carl great to be back wonderful to see deirdre back at

1 market office as well. >> we love the new chapters as the economy reopens. it is funny, you know, last year we were talking about the affection for these megacap names and tech and it was a stay-at-home dynamic and we all wondered what is going to happen post pandemic will secular trends override the reopening story. i wondered what you make of this boost in growth, even the last month. >> absolutely. the continued performance within tech has been absolutely stunning we did have this movement to the reopening trades as people were looking for the hot quick flip we think that's largely played out both first and second order reopening trades w now fairly straightforward we think they're coming back to tech aggressively. that's because it continues to be the growth driver of the economy, and it is no coincidence that the largest market cap companies in the world are tech giants and we think that will continue you'll see certain sectors

outperform within tech as people start to settle out and those growth rates differentiate themselves. >> net net are you more interested in consumer or enterprise >> so we think both are extremely compelling but i would look at subsectors within both. if you look at healthcare it, there is a consumerization trend there driving major innovation, bright health ipo next week, one medical and amazon is getting into the market. and then as you pull out, the digitization with teledoc, that merger, or if you look at value-based care, you see there is a megatrend there in oak street health on the public side, riding that wave of innovation if you pull back and look at other sectors, we absolutely think that fintech and not just crypto is having its day in the sun. affirm and square on the public side there remain quite compelling and then cybersecurity frontier tech as people are coming back to look at their internal data systems, my colleagues at

bessemer just published their road map on data infrastructure as we see that becoming a major hot sector as it teams are looking at the plumbing and data layers within the organization as a future driver for innovation >> some of the fintech names have been huge gainers over the last year or so. we mentioned square at quadrupling. some other names, visa, mastercard, i don't know if you consider them finteches, they have been lagging some newer hotter names do you think there is an opportunity there? >> there is a value play certainly. we do think that a lot of the innovation is coming from the late stage private and early stage public on the private side, companies like melio, true bill, and toss are examples that are disrupting you look over on the hybrid between fintech and cloud you see stripe is the ipo that everyone continues to wait for there will be 100 billion plus ipo when they go out we think those companies are putting real pressure on the

incumbents and a lot of the innovation is driven there and m&a may be the best path to try to buy into the segments from some of the smaller single billion dollar companies over the coming year. >> byron, what is the core idea, the differentiator, the narrative that separates the wheat from the chafe here? it seems like when it comes to data ware housing, deeper down, when it comes to data analysis, certain companies across those different sectors you mentioned are making the argument that either because of their breadth of customers, the uniqueness of their technology, they're able to get more advantage from the data they have and therefore advance their innovation more quickly. is that what investors should be paying attention to, whether that's true. >> i think you hit a lot of it the key thesis of our data infrastructure road map is the pipes and the plumbing are on data are becoming critical for the modern enterprise. that's why you saw the biggest ipo in history occur last year with snowflake it is trading at a frothy multiple i continue to believe that's a buy when it pulls back at some

point in the coming year we also saw the ipo last week, the confluent, another data infrastructure company innovating there on the private side, fire bolt and imply are innovating on that side we do think that the data infrastructure layer of infrastructure will be one of the hottest subsectors and there is only a few tradable names there, but that ecosystem will grow in the coming quarters. >> byron, the public markets, they're so flush with cash and yet we continue to see some of the names you mentioned. such higher valuations in the public markets, but at some point where is the risk there? there is so much money from the likes of softbank and tiger global that public markets perhaps cool a little bit on some of the names because they reached higher and higher valuations >> so there is this logjam of late stage private companies, right on the cusp -- the press of going public. that's what i think we're all waiting to see some of the ipos we're most excited for this year, didi,

imminent, riveon, companies that are often mentioned discord, robinhood, toast. >> is didi a software name because the markets have been cool on ride share. >> they are soft hardware, we'll see. they have a tech enablement, but, no, i was going one layer up mobility and the tech wave there, but within fintech, robinhood and within cloud and software, which we do think is the single biggest megatrend within tech overall, the names toast and data brick are probably the ones that people are most watching in the coming quarters >> byron, we're getting to a point where you bring up any of these bearish narratives, antitrust risk in the house, china risk, union risk out of amazon, it is like spitting in the wind what do you make of those when you hear them right now? >> so, there is a lot of anxiety around macro head winds as well

as overall municipltiples. the performance of these companies remains stellar. that's why these valuations have run up over last year. china presents a dual risk and opportunity i would say that when you look at the world's top ten public cloud companies, notable is at alibaba and ten sent are on the list we believe over the next years you'll see the world's first trillion dollar tech company come out of china and like the u.s. leaders it will be venture-backed and tech-based. we think tech in china presents one of the more compelling trades as well. >> byron, great way to start hour we love it every time. thanks so much good to see you. >> always fun to be with you have a great week. >> one of the most powerful people in tech, gene editing breakthrough and box office is back big hour of "techcheck" is just getting started.

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nvidia it has a planned $40 billion acquisition of arm the controversial deal has been under review for national security and competition concerns shares almost to 800, so we have seen those 900 targets citi takes the odds from 10% up to 30% >> yes that is significant. and meanwhile, it is a $4 trillion staredown between two tech giants over app stores. apple and microsoft used to have a hot rivalry. and satya nadella nodded to the competition at the windows 11 reveal last week. >> today the world needs a more open platform. one that allows apps to become platforms in their own right >> some have called this a reignition of the rivalry for a new era. let's bring in cnbc contributor

podcast host extraordinaire kara swisher. i don't think that's really what this is, in the sense that, i mean, microsoft is really about azure and enterprise productivity apple is about consumer premium, vertically integrated platforms and, yes, app stores get in the mix there. that's not going to cause some huge dustup between these two companies. it is convenient for microsoft to position itself as the open platform who saw that coming? >> well, you know, it is interesting, i think you're wrong. i think they are in the consumer space in gaming and that area. they moved very heavily into lots of gaming that is in the cloud, right rather than just console play. i think it is very important for them to feel like they have control. and i think this is going to be played out with a number of companies. apple thinks that microsoft is behind epic because around fortnite and the lawsuits. but the idea of who controls the platform is going to be an increasingly big question for companies as they try battle it out and apple has a lot of

advantage here in a lot of areas microsoft is interested in whether it is gaming, whether it is, you know, video or team building or things like that the kind of things they sell i think they do have more of a rivalry than you might imagine, even though those are trillion dollar companies now >> i think they got a rivalry around the edges, but i think investors would be wise to keep their eye on the ball here and for microsoft, the ball is not the same thing that apple is going for with the app store and for apple, even if the app store rules change, that's not the core of what drives their revenue and profits. it is one of their platforms, but they got multiple. the phone itself, the retail stores, so many things that microsoft has backed away from they're not in phones, they're not in retail, they have given up so many of the platforms. i think they can both succeed and while, you know, making it look like there is a competition is good for both, this isn't some kind of rekindling of the big os rivalry of that bygone era gl

era. >> i don't agree with you. i think it is about who controls access to consumers and businesses there is two achilles heels they have one is china and the other is this app store situation. and i think a lot of regulators are interested in this area and so, you know, microsoft is pushing here because it can get an advantage here in the idea to become a -- facebook tried to do this, but nobody likes facebook, i guess, i don't know how else to put it. microsoft is everybody's pal here we are being everybody's pal. and if they do things like go back and look at tiktok or anything else, they're going to want to have some control over the platforms that they serve their customers on. >> kara, there is a reason nobody likes facebook, right it had more opportunity being so consumer facing. so i wonder is this really worth it for microsoft to wait until this fight it has been able too escape the scrutiny of regulators here it is wading into a fight with apple and potentially

facebook on one of the most controversial issues right now of app stores and who gets to control the consumer. >> interestingly, it got out of some of the antitrust legislation because they're not in the mobile space in quite the same way some of the legislation is being tweaked that it aims at companies like apple versus microsoft. microsoft could be pulled into some of these things and hasn't been. i think that's due to the sort of the very diplomacy of nadella and brad smith it is a huge company it owns the spaces they're in. i don't think they're in a completely escape scrutiny and there is nothing wrong with taking a little swipe at a bigger company to show competition happening. >> does it further risk? >> i don't know what you would point to necessarily i think it helps them. he wouldn't do it if he didn't have a reason to do it and it helps them in some fashion >> kara, i don't mean to ask a lazy question that reduces the companies to personalities, but

i do wonder who you think has exceeded expectations more, nadella or cook. >> oh, nadella, i think. well, both, right? they both have done amazingly well nobody thought cook could do anything after steve jobs. the numbers are just -- the numbers are what they are. nadella had a lot to clean up there and changing the culture i think he really is quite focused, very humble, they're very similar in personality, if you want to put them, you know, two adults, very much calm, not, you know, not given to crazy tweeting and things like that. so they're a lot alike i don't know that's a good question i don't -- i thought you were going to ask me why am i sitting in a closet, but that's okay last time there was a closet is right now. >> so many puns, but so little time >> yeah, yeah. >> you got satya nadella coming

up at code in the fall i would say he's a little warmer personality than tim cook. but i think overall my question is do you think that windows itself has fundamentally undergone a makeover too windows eight was seen as this enormous failure a lot of skepticism about windows 10, but with windows 11's rollout last week, i didn't see a lot of skepticism. it seems to have pulled itself back into relevance, not just with consumers where it always was, but even in the broader technology space >> it is still highly relevant, just not menacing in the way it was. which is interesting i'll talk to yousef later today on pivot but i think it is still a critically important part of the infrastructure and how things work, how people compute, including consumers and businesses so they still play an enormous role they manage to did a really good job moving themselves to the cloud, moving gaming to the cloud, and i think he's a super adept ceo in that regard

being a good citizen, it is a weird shift from when -- if you remember that picture of gates looming over jobs when he gave the money to stay at apple or one of the key parts of saving apple and so, you know, apple has a lot of advantage now compared and microsoft is still embedded in so much of what everybody does all day just quieter and less seemingly less menacing in some fashion. >> i'm using one note and one drive on my iphone all the time. >> are you >> yeah. on my iphone. >> i'm using bing. no, i'm not. i'm using the surface. remember that? >> i use bing sometimes. i'll admit it. >> bing! >> kara, nice warm wood behind you. nice look. >> thank you, you know i like it in my little closet. it's nice. all right, have a good day bye. >> i'm still curious why kara is in the closet. we'll get that answer next time. it is one of kathie woods top bets one of her picks biotech company

intelia is surging this morning after a breakthrough in the field. meg tirrell has that story for us meg? >> deirdre this say pretty big day in the field of crisper gene editing, the very precise method of being able to target and essentially use genetic scissors in editing dna intelia partnered with regeneron in applying this and the big landmark we saw in data is this is the first time that the technology has been successfully delivered to the human body systemically. previous applications have required either taking of patient's cells out of the body to do the editing and return them, or injecting directly into the site where you're trying to do the editing like the eye. intelia, in a phase one trial, just reporting six patients worth of data over the weekend, showing this can be done and in fact in trying to edit that gene and not down this protein that causes problems in this very rare disease, this attr, they showed an 87%

reduction of that problematic protein in the higher dose this really is a proof of concept for the entire field you're seeing other stocks that do gene etditing, beam therapeutics and verve up 25% there, really showing that people believe this can turn into real medicine you mentioned kathie wood, that etf she put together, focusing on the crisper names that one catching a lot of attention. on the flip side of this, el nylon is down on this news, it uses a different technology. investors may be factoring in common competition this is just phase one there is a long way to go. back to you. >> important day indeed. thank you for that, meg. bitcoin rallying about 30,000, finance gets a boost we'll break down the latest crypto headlines that's up next plus, watch microstrategy, the company continues to trade in sync with bitcoin

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bottom of the hour welcome back to "techcheck." i'm carl quintanilla with jon fortt and deirdre bosa and julia boorstin a news update with rahel solomon. >> good morning. here's what's happening at this hour shares of boeing down 3% after the faa said the company's 777 x jet is unlikely to get certification for one to two years. it cites a lack of safety data on the plane. mitch mcconnell calling on the top two democrats in congress to join the president in walking back demands.

such a move could make it difficult to build democratic support for the bipartisan plan. crude oil futures hitting a 2 1/2 year high this morning, down 1%. shares are balancing forecast of higher demand with reports of higher covid cases in asia and shares of carnival plunging more than 6%. the cruise ship operator saying that it will sell up to $500 million worth of stock proceeds go to buy back stock and general corporate purposes you're now up to date. deirdre, back to you >> thank you, rahel. as of wednesday, it must put a statement on its website saying that it is not currently permitted to undertake any regulated activities without the prior written consent of the fca. however, the so-called ban is limited as nonregistered firms can interact with uk consumers allowing binance to continue

offering trading through its website. bitcoin is bullish on the news, up 5% in the last 24 hours joining us now, castle island ventures general partner coin metrics co-founder nick carter good morning great to have you with us. what do you make of the news and typically a headline like this might cause bitcoin to go the other way, but the idea that it can get around regulations and binance can operate, is that bullish? >> i mean, bitcoin is supremely volatile i wouldn't read too much into the short-term price action. but bynance's entire reason detre is the blockchains it has this ability to resist regulatory impulses. it has been doing that for its entire existence it is no surprise to me that people believe that binance can stay outside of the grasp of regulators, though, you know, it seems like the fca and other

global regulators are starting to take it much more seriously these days. >> so, nick what do you attribute then to bitcoin and crypto's more broader fall over the last few weeks bitcoin coming down from above 60,000, if not regulation, what is attributing to that >> some people are concerned about developments out of china, of course. we have seen bitcoin fall by around 50% that's the network cash, that's the number of machines active on the network. but more interestingly i think the chinese communist party is turning the screw on the local on shore exchanges and putting them under increasing pressure both of them now instructed to reduce or eliminate the ability for chinese nationals to trade with derivatives it looks like the ccp is stemming the flow of crypto through other otc channels and cracking down on the banking

linkages connecting it to crypto markets. so that's probably, you know, part of what i attribute this weekness to. >> on the global ladder or spectrum of regulators and their aggressiveness in trying to crack down on crypto at large, i assume you put china toward the top? is the uk also up there? and as a result, what sort of lessons would you take from the uk jumping into the story? >> well, china has managed currency and so they're very sensitive to capital outflows. it is no surprise they have been aggressively trying to eliminate mining, which was one way to offshore -- from the mainland and applying scrutiny to exchanges. britain has historically been pretty hostile to the crypto industry, including banning a lot of these etps in the country, historically, and so it is kind of interesting, the uk is the center of finance, you

know, at least prebrexit they were the nexus of european finance and so their stance on crypto has been a little puzzling to me, they seemed very concerned with consumer protection and it looks like cracking down on bitcoin and bitcoin derivatives, platforms, part of that broader play for them >> nic, a crackdown on binance, is that a good signal for coin base, which is expanding its own footprint? >> coin base pursued a much more accommodating regulatory strategy they have every license under the sun in the u.s. and they have fairly tight relationships with the past and current regulators so they certainly have been taking a radically different path from binance. if i had to guess which energy i think would be around ten years from now, it would be coin-based for sure binance, though, is probably the world's largest exchange in terms of sheer number of clients and users they have globally

they are much more unfettered and have been able to expand globally they have something like 550,000 bitcoin in their vaults and so anything adverse that happened to them would be pretty catastrophic for the crypto markets. that's where most of the liquidity, especially for a lot of these longer tail outcoins is hosted, coin-base, in my view far more prudent getting all the licenses and trying to actually forge accommodating relationships with regulatory authorities. >> and that leads to coin base being the dominant platform? you think it will outpace binance in terms of values >> it depends what sort of action we get from the s.e.c. and the global regulators of consequence. if you look at coin base's listing strategy, they were very conservative with their listings and in response to binance's much less incumbent strategy where they list all different

kinds of asset, coin base listed dozens and dozens of assets, some more mothearginal. we see coin base reacting to binance's success. it depends on whether regulators are actually successful in stemming, you know, flows to the offshore crypto exchanges of which binance is the number one, and, you know, whether they decide to privilege this on shore more compliant exchanges >> tether has been a big and controversial topic in the crypto world we had some guests tell us that it could be a black swan event for the crypto economy or the weakest link in the crypto economy. we had chain analysis ceo on last week saying it has been a good bridge between traditional finance and cryptocurrencies why do you stand on tether >> tether is probably the most controversial topic in the entire industry. if you think about the origins

of the euro dollar market, they sort of emerge for similar reasons than people like tether which was to transact outside of the purview of u.s. regulated financial markets in a less encumbered way and with less disclosure required. that's kind of tether, you can think of it as a neo euro dollar where you can transact on public blockchains with dollars in a way that is less accountable to the federal reserve and the banking system here. what people don't really understand about tether is that it is incredibly popular in asia as a way to get dollar exposure and, you know it has functioned pretty well in terms of holding its type for the last five years. now their disclosure has been very weak and their latest disclosure is pretty questionable i would look forward to actual audited financials from them, i don't know if we'll get that, one thing i will note, however, is that more credible

counterparts to tether like the usdcs of the world that have clear relationships to u.s. banks are gaining market share at the expense of tether and so this problem or this externality, this liability may resolve itself through normal market forces, through investors and users, you know, choosing to opt into a stable coin that is ultimately a little bit more credible and more accountable. >> right, perhaps more transparent. nick, thanks for being with us today. we hope to have you on again soon nick carter. for more on tether, the cryptocurrency, fed officials are calling a challenge to financial stability. kate rooney joins us here at 11 m market 16 months since i've seen you. great conversation with nic carter what he said about tether and its usdc and circle is perhaps the crypto economy will move naturally to more regulated, more transparent

cryptocurrencies and platforms. >> sort of positioned themselves as heightly regulated u.s.-based version of this. like nic mentioned, tether has become extremely popular in asian markets and it really is still the number one choice for traders looking to get in and out of bitcoin and if you look at a platform like binance or exchanges in asia, a lot of them, a lot of these traders were using tether, though someone i talked to might not want to talk about the fact they're using tether, there is a ton of controversy around it and the idea that, you know, if i need to milwake a bitcoin tra on saturday night, i see a spread or opportunity, tether is the quickest instrument to do that. >> we have been talking about this a ton the whole idea of it is velocity, right? efficiency no one is holding tether to speculate, to make any money, right? what we call the poker chips of the crypto economy an audit, would that really matter to the people who use it?

i guess, i guess traders don't want to admit they use it they move to something like circle i wonder who is calling for these things when it is right now the most effective way to transfer money. >> exactly i think the folks that use it aren't necessarily worried about, you know, a run on the bank, something the federal reserve has been worried about we had eric rosengren on friday mention tether as a potential risk to financial stability in the u.s. markets because it is backed by a lot of short-term debt, commercial paper, i think this is more of a concern for regulators and for folks inside the u.s. regulatory structure versus a trader saying i will use whatever is available to make the trade to make money on a weekend and in asia, some folks are using this as a way to get stability in and out of bitcoin markets you saw. tether rise for the 8th or 10th largest cryptocurrency a lot of folks said that's because bitcoin has nose-dived in the past three months people are getting out of bitcoin and saying i don't want to get out of the crypto markets

entirely >> and twice the volume of bitcoin, which is amazing how quickly -- thank you look forward to more jon, over to you. >> thanks. now let's check in on microsoft. getting a price target bump of 310 from 290 at jeffries this morning on optimism that the company is going to soon announce a cloud pc service. jeffries calling it microsoft's next killer platform we'll see. more on that online at cnbc.com. "techcheck" back in two.

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. the box office is back we're seeing some pandemic records this past weekend. julia boorstin is all over it. hi, julia. >> good morning to you, carl universal's "f9" surpassed expectations at the box office it is the biggest opening weekend since "star wars," the rise of skywalker, back in december 2019. it grossed over $400 million globally, already surpassing the entire lifetime gross of last summer's tenet vindicating the decision to hold the film for more than a year and to make the film exclusively

available in theaters for six weeks before it will start to rent it via video on demand. the domestic debut outperformed the 2019 spin-off of fast and furious hobbs and shaw, but it underperformed the debut of that year's fast and furious installment. this weekend is a positive for the theater chains including amc which has been driven up by that reddit trade and cinemark and imax and also welcome news for all the other studios, disney, paramount, warner bros., they have all delayed big budget movies to debut later this year. the question now is whether the next big release, which is disney's "black widow" has a similarly big box office debut they are taking a different strategy, simultaneously launching that film in theaters and selling it to disney plus subscribers for an additional $30. so we'll have to see how that affects the box office eric handler tells us that the

industry now is about 50% to 60% back to normalized levels. but 80% of u.s. leaders are open with capacity restrictions still in a number of states. noting that once more theaters are open, studios will be more eager to debut their films and just full disclosure here, "f9" parent is owned by the parent company of cnbc >> thank you for that. tesla getting into hot waters at this time over a recall. we have the details right after the break. plus, bed, bath & beyond getting an upgrade the firm forecasting that stock could rally 40%. up more than 6.5% today. "techcheck" is back in a moment.

if tesla survives the moment of call from web bush, it is to the moon >> jim cramer this morning calling latest recall a moment of truth for the company. their bad run in china getting worse over the weekend with the evmaker recalling nearly all of the vehicles the company has built and sold in china since

the opening of that gig factory in shanghai. they reported issues with the cruise control system in some cars as users experienced sudden and unintended acceleration as they drove in total, more than 285,000 cars are impacted, but, carl, there is one silver lining, the problem can be fixed through a software patch so customers can still hold on to their cars. they try to hold on to their reputation in china. barons calls this a very modern recall, and investors don't seem to mind. tesla up 2.5% in what has been good week run up over 10% over the last week. >> it found some fresh love, no doubt. the note from web bush, they say the company must play nice, jon, in the sand box in beijing around the safety issues or becomes an impediment to achieving its goals. for all the hand wringing, they reiterate outperform and their thousand dollar target. >> for my money, if you don't

have to send it back in, it is not a recall it is a commercial like, everybody -- everybody gets to find out, oh, yeah, software update, we'll fix this, supposedly massive problem with this car that's better than a lot of other cars on the iphone, we get an ios update, we don't call it a recall it is just an update so in a way i'm not surprised that tesla is up on that guggenheim out with a note today on snapchat. bullish on snap. and the company's augmented reality technology, saying it is an industry leader in the space. not helping the stock much, though that is down nearly 2% you can read the note on cnbc's pro platform cnbc has a deep dive over tiktok and just where your data may be going stay with us

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it's been the target of executive orders and investigations, but just how much control does chinese parent bite dance have offer the tiktok app? we found out the answer is more than you might expect and the man behind that story joins us now. you're looking at data from u.s. users in china, sal? >> yeah, so, thanks for having me on. i spoke with some former tiktok employees. they told me bytedance is heavily involved in the operations at tiktok, so much so that there are times when tiktok

employees in california will need to access u.s. user information and they'll have to go through their chinese counterparts to do so spoep that alone is pretty alarming it shows that chinese employees have access to american user data which runs contrary to what we've heard thus far from the company. >> now sal, so often in this cloud era, we have seen countries say you've got to store our user data in country and you can't take it out. does this point to perhaps the need for that sort of regulation overall? could this have happened, is this happening in europe as well could this be a gdpr issue >> this is certainly something that some of the experts i spoke with said that it comes down to user privacy rights. in the u.s., it's been a while since lawmakers really updated the regulations and laws that, you know, protect users and their data some said that it's alarming that tiktok is using american

data this way but more protection across the board would be beneficial. >> now speaking of tiktok and data, there's interesting thread happening over the past several days and weeks black tiktok creators have been boycotting in effect the platform arguing that too many other creators are copying their dance moves and getting popular off of them. what's your sense on the impact this is having on the platform i saw some headlines about perhaps the popularity of her latest song on tiktok being affected by this is this something that tiktok can or will respond to >> i think this goes beyond tiktok this is more about the culture within the app but there's no question that black users create a lot of the culture that comes out of tiktok and tiktok creates a lot of the culture that proliferates throughout our country today so it is, you know, fascinating

to see these creators rise up and make noise about this. there's one user in particular that i want to highlight his name is@kalilgreen he highlights how pretty much anything that you see on tiktok originated from a black creator? >> yeah. rock 'n' roll all over again sal rodriguez, thank you >> thank you coming up -- the side hustle and what tom brady is saying about laser eyes "techcheck" is back after one more break

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uber and lyft executives are hitting the roads as drivers over the weekend khosrowshahi spent a few hours delivering for uber eats the first day he called better than the second. john zimmer was first, though. every new year's eve he steps into the role of ridesharing driver and a few weeks ago he compared being a rideshare driver to a food delivery one. in this video, perhaps not surprisingly, though since lyft doesn't have a food delivery service. picking up and delivering food was the more stressful, less

rewarding option guys, not so subtle effort to win over drivers amid the labor shortage you know, zimmer and the guys at lyft have been doing this. dara just stepping into the role the first day he painted a very nice, rosy picture got a bit of blowback on twitter. the second day more honest look at how difficult it can be >> yeah, he's got to say it's hard acknowledge how hard it is because the drivers know it's hard, right, carl? >> yeah, indeed. it's always, you know, what was that undercover boss remember that whole collision between the c suite and rank and file always fascinating one more thing before we go. if you want to know the one thing that is not working for tom brady, it's bitcoin. crowdsourcing his next investment idea after another twitter user noted btc has fallen off a cliff since brady introduced the laser eyes on his profile down nearly 40% in that

time period with the small bump. today probably feeling a little bit deflated but as you said, got any other ideas? at least he has a sense of humor. it's going to be a busy week of macro. we'll get to "the half" with tyler. all righty, carl welcome to "the halftime report." i'm tyler mathisen in for scott wapner we're close to closing the books on the first half. we're looking at the second half and where you should put your money to work now. joining me for the hour today are tiffany mcgee, ceo and cio at pivotal advisers. joe terranova. steve weiss and a great money manager. he has one of the more entertaining instagram feeds you'll ever see. let's check the markets, folks the s&p 500, nasdaq. nasdaq 100 all at new record highs. plus tech and health care also in record territory.