final day of the first half of the year meanwhile, the ipo rush. 18 companies preparing to go public today's headliner, ti chinese r hailing giant, didi. los angeles has lost the title of the worst city for traffic delays hard to believe. can you guess which city took the top spot i have some pretty good ideas. >> seattle. >> wednesday, june 30th, 2021. "squawk box" begins right now. good morning, everybody. welcome to "squawk box" here on cnbc i'm becky quick along with joe ker

kernen and andrew ross sorkin. the s&p 500 up more than 14% yesterday you did see some gains across the board just barely, but it was enough for both the s&p and nasdaq to hit new records. this morning you are looking at red arrows dow futures down 68 points s&p down 6 and nasdaq down 21. the treasury market, 1.5% yield level, that's what we've been trading back and forth this morning the 10-year is just below that at 1.485% the squawk stack, we're focusing on the end of the first half take a look at the dow transports dow transports for the month are down 5.7%. yesterday they closed below the 500 day moving average they're the only one to be below the 500 day moving average it's been an incredible first half things have been weaker and you have to wonder if that's any

indication of what's to come wti ahead of the opec meeting up another 1% ahead of the crucial summer driving season with the fourth of july holiday here. the highest prices we've been looking at at the pump on average in the last seven years. marathon oil, goldman sachs and moderna are the three we're looking at year to date, these are the winners. marathon is the best performer for the s&p 500. up 107%. goldman sachs, the best performer of the dow, up 370% and moderna up 126%. meantime, chinese ride hailing company didi pricing at $14 a share. they sold more stock than planned. it raised $4.4 billion total giving it a market cap of more than $67 billion pricing coming just three days after it launched its road show making it one of the shortest investor

pitches in memory with trading on the new york stock exchange today under the ticker symbol didi but you can also take a look at shares of uber because uber, if you remember, made a deal with didi to get out of the chinese market for a piece of the business that's effectively a play on didi as well joe? >> thanks, andrew. in regulatory world, the lead story in the wall street journal this morning, the biden administration developing an executive order directing agencies to strengthen oversight of industries they perceive to be dominated by a small number of big companies the report says president biden could sign this order as soon as next week, direct regulators to increase competition, give consumers more rights to challenge big business companies and industries controlled by a small number of

big firms as i just said might face new rules for disclosing fees to consumers or their relationship with buyers the order would likely be challenged by republicans and big business groups. so many times we've said deregulation in one administration, layering on more regulations in another it's kind of interesting that we do see a different approach to things i don't know what in practice this would actually mean and how it would affect things but you can expect push back on chamber of commerce. >> the thing i couldn't figure out -- >> tech? >> how much of it's big tech the thing about pricing is an interesting one. it goes, i think, to a little bit of what the apple app store situation is insofar as consumers are not -- one of the critiques of apple is that a consumer doesn't necessarily know what the fee structure is

behind t skhe scenes between th app maker and consumer and apple. i don't know if maybe -- >> is that weird i mean, i don't know what the fee structure is for any of the companies that supply the stores at walmart either. >> no, that's the point. in the analog world for better or worse, we haven't known the fee structures we're talking about. amazon, walmart. pepsi and coca-cola, they're huge companies they dominate their spaces. >> they do, but -- >> i don't know. >> the big tech companies that you're talking about that made it much more difficult for old tech companies to game the system so it's kind of weird. now the companies that allowed us to see all of this transparency and pricing are the ones that might be targeted in this move. i'm not thinking industrial companies. >> that's what i'm curious about. how far does it go

>> mostly big tech which has sort of helped us on the other end. i don't know a lot of times everything seems free these days in technology. i don't know how much -- >> nothing's free. you're giving away your privacy. >> i know. i don't have that much great stuff going on it's not really worth anything, you know what i mean you don't either. >> it's good to be boring. >> oh, he's got -- just his life is interesting. >> his life is interesting but i don't think there's anything crazy, right >> i'm not saying it's crazy. >> thanks, becky >> i'm sorry, andrew, you are boring like us >> he's not boring like us i don't think. >> no, i think you -- >> each day i'd like to see your itinerary, what goes on. >> that's the question though, how much do you want to know not necessarily about an individual but about the back and forth of the businesses and would that change the dynamic for the customer we talk about this

the customer is doing pretty well >> how about health care how about health care? >> there's one i'd like to see some transparency. >> you get an operation, your gal bladder removed for $18,000 here you go down to, i don't know, south america and do it for 400. >> there is an industry. i'm with becky there's an industry you know nothing, you should know more. >> you find out after the fact you can't shop around about where you're going to get an x-ray. >> $12 aspirin. >> i would like to know more transparency when it comes to that i don't care what's happening at the apple app store. for $3 you're going to pay for your app, i'd prefer to see it focused on ore arenas. we keep getting promises we are seeing additional transparency andrew, i haven't seen any transparency in the last decade. >> don't you think this is in response to wins in court. >> that could be it. >> executive order.

>> we lost the -- the administration may be thinking they lost in what they were trying to do on the regulatory front. >> that's interesting. >> do it this way. >> every administration gets in and uses all of these orders this is the ramping up of executive orders. >> to pile it on. >> pendulum swing. >> that the republicans want more businesses to run -- >> rampant >> yeah, just do whatever they want no control whatsoever and, you know, democrats just want to be involved in every aspect of a business's life. same old same old, but you know what, guys no one wants to talk about politics anymore you see these ratings? you see these ratings of these partisan -- thank god we're not a partisan show or partisan network. seriously. it's like a waste land trump somewhere is like laughing saying i told you so did you see some of those numbers?

>> i didn't take a close look at them. >> it's all over our friends from axios wrote a great piece that we had on yesterday. >> it is not good for the news business, that's true. >> great piece on that >> fortunately we have more important things to talk about, like the markets lee cooper man weighed in on the markets during cnbc's financial adviser summit he's a fully invested bear like the last time he was with us you have to be in the markets now, but there's a long list of things he is watching with concern. >> i would watch the dollar exchange rate very closely i would watch fed speak. i would watch economic performance. i would watch the craziness in the market, bitcoin and stuff like that. the meme stocks, the speculation is taking place. the market structure is like totally broken totally broken and we're not spending any time. the way stocks trade is very

unnatural. >> he was talking about what were the signals that might make him put one foot out the door. he's fully invested. as long as the federal reserve is still doing what it's doing, you're going to see the market continue to go up. he would not touch a u.s. government bond right now with the rates so low >> i've been saying it wrong >> meme. meme. >> i like meme better. >> kind of cute. >> give me, me, me, me, me amc, give it to me is it meme or meme >> it's meme but i -- i'm with becky and giving you credit. meme may be a better way to do it. >> meme is better. >> let's start doing that. meme stocks. >> right here first. check this out, after being named the worst city in traffic for nearly 30 years, i can't imagine los angeles is really giving this up there is no place close although i have said google maps, ever

since google maps you can leave -- >> every neighborhood near -- >> yeah, but you can actually -- i was afraid to ever leave the freeway out there. i'll never find my -- but you can do that now. it's a little bit less according to the latest, latest urban mobility -- >> what are you doing? >> how can you not be like me? people in new york metropolitan area spent more hours in traffic in 2020 than even people in la and the pandemic they saw a dropoff by about half last year while delays fell by 2/3. >> people not going into work. >> less bad. >> i wonder about new jersey there's some things that aren't pleasant in new jersey. >> there's a lot of construction. >> this morning. >> i was going to say -- >> 5 a.m. >> most people being back in the workplace, most white collar workers not being back, 30 to

35% workers are back in new york city, traffic is just as bad because everybody who is coming in is driving. much less public transportation and there's construction everywhere. >> sorkin, new york city is the five boroughs, right it's not manhattan. >> it is. >> queens is awful, brooklyn is awful. >> the traffic. >> the traffic >> and you get back to the whole debate in new york about restaurants put the outdoor seating that's now on the streets, takes over the space. you know, we did the bike lanes under mayor bloomberg and even more so under de blasio. there's a lot less room on the streets for cars today. >> we can even foxify the subway and say you don't want to ride the subway because you could get an ice pick in the eye lucky we're going to get a new mayor. now we don't know what happened there. >> closer than we thought. >> the big lie

sorkin, what happened with -- >> we're going to find out today. it's not erik? i was counting on him. >> to clean it up? i i this he might. >> don't you dive in -- >> garcia is number two. i think either one of those candidates is going to be hoping to try to rectify the situations on the subway. not an ice pick but there are safety issues. >> would you think more of the subway now, andrew, as mass transit? >> looking out here. >> i would think more about it right now. >> i'd be on the subway. i've been on the subway. >> lately. >> i'm not talking about in your life. >> no, no, in the past two months sure >> all right coming up -- >> but i -- >> yeah. yeah daytime. daytime. >> body armor with a helmet. coming up, crunching the numbers on the real world

impact four or five people around him, mike call's gauntlet we'll go to watching next. plus a look at the reopening trade for the second half of the year and the portfolio moves you could coidnser, you should consider "squawk box" coming right back these days, we want sophisticated but simple. cutting edge made user friendly. in other words, we want a hybrid. and so do retailers. which is why they're going hybrid, with ibm. a hybrid cloud approach with watson ai helps manage supply chains while predicting demands with ease. from retail to healthcare, businesses are going with a smarter hybrid cloud, using the tools, platform and expertise of ibm.

uno, dos, tres, cuatro! [sfx]: typing [music starts] [sfx]: happy screaming [music ends]

[ "me and you" by barry louis polisar ] ♪ me and you just singing on the train ♪ ♪ me and you listening to the rain ♪

♪ me and you we are the same ♪ ♪ 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 wharton school out with a new study by president biden's

infrastructure plan. here are the numbers live with ylan mui. >> that bipartisan infrastructure plan would increase the national debt over the next ten years that is a finding of the new analysis out by the penn wharton model. it shows no change by 2031 but 8.4% jump in the national debt part of that is by design. the $1.2 trillion package is spread out over eight years. take for example the spectrum options. that's already happened and the money was supposed to go to the treasury department anyway another $25 billion is supposed to come from state ending enhanced unemployment benefits if states don't use the money, it goes away it's not just sitting around somewhere. the $6 billion from sales and

strategic petroleum reserve, penn wharton says that will be a wash to be fair, in the long run, like over 30 years the analysis finds the infrastructure investments do pay off they would boost gdp by 1% in 2050 and reduce the debt by .9%. 30 years is a very long time to wait for a payoff in politics. back over to you >> yes. you may not see gdp is better. airports been to newark airport trying to get your baggage there are things that need to be done >> this is the argument for why this should be done, especially in a bipartisan way because the investments do take such a long time to pay off it is really difficult for lawmakers to agree

to spend the money on it because they're not going to be able to campaign on that necessarily in the next two years the economy won't have sort of absorbed that spending over that period of time so the administration would argue that's exactly why this is so difficult to make such a long-term investment that's why you need republicans and democrats on board the political calculations are very difficult from the economic ones. >> be nice to use usage fees, things like that we immediately hear they're aggressive it's difficult thanks for updating us, ylan it's from penn. >> you're on board >> i think i have to believe it. taking a look at cramer's covid-19 index a list of 100 stocks spanning more than a dozen sectors. the companies expected to produce a return during and beyond the pandemic. some winners on the list are

growth stocks that people have come to love over the past year. names like zoom, peloton, docusign then there's been the rotation into value stocks or the so-called reopening trade. now this trade's already worked pretty well but are we already seeing signs that it's fizzling? here to break it down, stephanie lane, cnbc contributor, with hightower. this is part two or at least it's episodic, stephanie we talked about this last time you were on. a while ago you were advocating some of these names. you've got some reasons why we may be seeing what could be just normal consolidation it doesn't mean the trade is over or it could mean that maybe it is long in the tooth what could be causing not weakness but they're not doing as well as they were what's causing it? >> yeah. good morning i think it is a little bit of a few things here. the delta variant and the unknowns there it's also the flatter yield

curve which favors growth over value and why are we seeing a flatter yield curve? because people think we've seen peak growth and peak inflation i'm not in that camp as you know, but that's what i think is happening. the reopen value cyclical trades outperform from january to may by 12% that spread from may into june has narrowed to 3% growth has really made a comeback i think earnings are going to be terrific, especially on the cyclical sectors, financials, materials, industrials, energy i think that's why i'm staying involved on the cyclical side. you don't want to abandon technology, cyclical growth. total addressable markets are enormous you want a blend of both >> 70/30 i quickly deduced that

twice as much in the former than the latter even more than that. this is a real thing. >> yeah, no, i do. >> which ones? >> i would say this, joe that i am over weight big time in financials and industrials, even in energy energy is only 3% of my benchmark so it's not that big of a bet i do believe financials. you have huge support every month coming in from the companies. not only that, they're down 4 to 10% in the last month, month and a half you're getting them at 1.1 to 1.5% book. if you think the economy has legs to it in terms of strength and inflation, you want to have

industrials, especially since they have pricing power. those weren't the names i gave you but those are the reasons why i'm over weight and the bigger bets. >> you like the donalds. i know i know whenever you say that -- >> the afternoon show talks so differently or speaks so differently than we do, stephanie. we never say that. you are over weight. >> i'm over weight i internalize that and then i see mcdonald's as your pick. i am immediately thinking about a susan and egg mcmuffin >> pave loafian. >> you guys are so funny i literally just got the treadmill. i can recommend mcdonald's, right? >> so good then get back to sausage mcdonald's is one of your favorites, right >> it is

it's a new position for me i sold marriott for it yeah yeah look, i'm up 64% in marriott and i think it's going to be terrific i have plenty of reopen in that area i have a huge position in wynn, las vegas sands and that thing i'm there in terms of reopen mcdonald's has lagged. it's only up 7.7%. the fundamentals are pretty good they have simplified the menu. they have drive-throughs in 95% of their stores. that's a huge win. digital enhancement and drive throughs and they're 75% in the system they have done a really good job. i think basically it is a reopen name people will go back to the restaurants and go inside the stores in the meantime, they're handling things well it's lagged. only up 7.8% it acts like a staple. i like to have that actually. >> stephanie lee, hightower, thank you. >> thank you, joe. >> see you later. >> had an experience the other

day. i know that. >> planning your mcdonald's? >> i promised him i would take you. >> should we get him mcdonald's. >> not this morning. that would be twice. that would be breakfast and lunch. i'm not going to get anything. i'm really not >> just steal the fries? spare fries? >> like that commercial. get your own >> best fries in the world best fries in the world. >> even after they had to change them did they really change them. >> all tastes the same. >> like that yogurt on seinfeld. fat. episode where they were selling yogurt that they had only this many calories, this much fat they would go every day and they got fat. then they found out they were lying. they got tested. >> like the tuna fish. >> yeah, the tuna fish. when we come back on the other side of this break, we'll talk about fries perhaps, but we're going to talk about the push to return to normal uber out with new plans for office workers and royal caribbean outlining new rules for unvaccinated passengers.

we'll talk about it at the break. check out the gains for the major indices as we prepare to arose out the first half of the ye "squawk" returns after this. i'm dad's greatest sandcastle - and greatest memory! but even i'm not as memorable as eating turkey hill chocolate peanut butter cup ice cream with real cocoa. well, that's the way the sandcastle crumbles. you can't beat turkey hill memories.

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whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today. welcome back to "squawk box" this morning royal caribbean updating the vaccination policy saying it will require all guests over the age of 16 traveling from the u.s. to be fully vaccinated. the exception is cruises leaving from florida ports where governor ron desantis signed executive order preventing businesses from asking customers whether they have been vaccinated customers leaving from florida will be required to have travel

insurance starting august 1st. unvaccinated passengers will be subjected to additional covid testing and wearing masks and won't be allowed in certain areas. children aren't yet eligible to be vaccinated. it comes after two passengers under the age of 16 tested positive for covid on one of the company's cruises last week, guys seems to me, becky, i always -- i don't know if it's a majority, but a huge percentage of their cruises take off from florida so i would assume this makes it kind of complicated. >> you know, the other thing that gets lost in all of this, i think we talked about it a little bit last week, just the idea that florida -- you may not have to be vaccinated to get on a cruise in florida, but most of the places that they travel like the virgin islands, anyplace in the caribbean, is going to require you to be vaccinated before you get off the ship. >> right. >> it's a roach motel. you can get on this thing but you can't get off. i don't know how appealing that

is to a cruise this is political winds they're pushing back and forth and maybe not confronting the realities of what these crews lines are dealing with >> it's more and more complicated. >> if you're bringing kids, it's not going to -- >> and then you add on this delta variant which i know we'll talk with dr. scott gottleib about. just seems like it's going to -- doesn't seem like a good recipe. >> no. but they're going to be bound by what florida tells them they can and can't do you can't get off the ship anywhere, you can't go to any of the common areas you can get off the ship and stay in your tiny berth. that sounds like a lot of fun. you know >> they are tiny, too. >> they are tiny because you're supposed to get out and get about. >> you have to pay for a window. >> yes or a balcony if you want that. you have to really pay out for that in the meantime, uber updating employees on the return to work

plan it's asking office workers to come into work 50% of the time it's up to the employees and their teams to figure out how to split that time up, whether it's one week off, one week on, or three days one week, two days the next uber employees will have more flexibility in their preferred office location. they will be able to choose from a list of dedicated team hubs instead of being limited to their pre-pandemic location. employees have the option to apply for becoming fully remote workers. when we return, cybersecurity crackdown. we're going to talk to the sponsors of a new bill that would bolster america's cyber defenses that's next. right now though as we head to a break, let's take a look at yesterday's s&p 500 winners and losers

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what i'm concerned about >> correct they both are necessary. >> you they can rotate through the different critical agencies. we have a consistent response across the government. we can attract the best people in helping protect american security

>> changing the employees and changing the way employees are hired and brought in and the cybersecurity. >> it relates to russia. we want to make sure that we have pea got to keep our federal government secure. one of the great things. representative ro khanna, this is one of the very few places that we're seeing republicans and democrats work together. >> let me ask though, this is what we're focused on.

they are at a much heightened risk, worse off than public employees is >> i do think federal agencies are at risk. let me say i've enjoyed working with it. our military is extraordinary in protecting the most advanced weapons, the most critical areas of our national security but you have a lot of federal agencies that are still at risk as representative may said russia just hacked into some of these agencies looking at personnel files, looking at sensitive information and if we do not strengthen that, we are going to be subject to continuous attacks from russian supported hackers, chinese

supporteds hackers this is important to protect all of government, not just the pentagon >> this will allow you to rotate employees but do employees want that are these very strict rules preventing employees from doing what they want to do is it preventing the agencies from getting qualified and able bodies >> it's an important strategy to beef up the cybersecurity. this will be done before we scale up it will be overseen by multiple agencies and multiple councils including the cio council and homeland security to make sure that we are being efficient and effective. creating greater protections and the federal data of the american people that the federal government holds. >> is part of the problem that you need to pay employees more that's always been the rub, that it's difficult to get very highly technically qualified individuals to work in the

government because the pay there is just less than it's going to be in a place like silicon valley. >> there are technology employees and experts all across the country, even in my home state of south carolina so there is great opportunity, both in the private and public sector and the federal government for these jobs and opportunity one of the things i do see ac across the board whether we're talking federal, state, private sector is a lack of talent it's not so much a lack of pay but a lack of really highly skilled, highly trained workers. so if you're a student or a kid out there, someone in college looking at cybersecurity and computer technology, i say go all in there is so much opportunity out there for you to grow and have a great career because of the threats that we see around the world against the united states. >> good advice let me ask you two just based on what you've seen collaborating on this, do you think that there is hope for this bipartisan infrastructure deal it looks pretty fraught right now. where do you come down on it,

ro >> i do. i think we have to do something on infrastructure. it's got to, in my view, include broader issues of climate and the leaders are working on it. there are issues of bipartisanship there is a bipartisan deal on endless frontiers that pass the senate in a bipartisan way to increase signs of technology i think there is more collaboration behind the scenes than people realize in congress that's not on the most high profile issues but there is collaboration at least on the house oversight committee where representative mace and i sit. >> would you vote, ro, i'll ask you first, nancy, too, would you vote for the bipartisan bill even if it doesn't have the things you want to see would you vote for the rough things we've seen so far. >> i couldn't vote for it if it did not also have at the same time a senate reconciliation bill that included some of the broader priorities i do believe with senator schumer and speaker pelosi we will get that. >> so nothing though if you

can't get the full ingredients that you think are necessary >> well, i'm not saying no the full ingredients that i think are necessary are more than we're going to get. my sense is we're going to have a bipartisan bill that passes and we're also going to have a democratic only reconciliation bill that passes and i think we will be able to get the democratic caucus, including critical senators on board for both and my sense is that the republicans who have supported the bipartisan deal have supported that part of it and will support the democratic bill. >> would you vote for that bipartisan bill? >> if it is truly bipartisan, i think there is great opportunity. my concern is the pay fors. i'm strongly against raising taxes because that cost would be brought down to hard working middle america my other concern is that if it's 100% on one side and there's not a give and take on

both sides, both sides making concessions then it's going to lack a strong bipartisan support. there's no doubt we need an infrastructure package, it needs to be broad and inclusive of traditional infrastructure that's what i'm looking forward to i'm still holding out hope >> representatives, i want to thank both of you today. appreciate your time >> thank you >> thank you >> thanks, beck. coming up, new york city's ballot blunder we'll tell you why the election board is retabulating results this morning later, don't miss our exclusive interview with glenn fogel on what he's seeing in the boom of summer travel. a reminder, you can watch or listen to us live any time on the cnbc app

welcome back to "squawk box" this morning the new york city mayoral race has plunged into chaos they released a new tally of votes in the democratic primary and removed the tally from the website citing a discrepancy they failed to remove sample ballot images that is used to test the voting software counting the actual votes and the test ballots producing about 135,000 additional records an updated tally is expected but won't include 130 absentee ballots that could reshuffle the rank choice rounds that's why a final result isn't

expected until mid july. lots of folks in new york awaiting that decision and what rank choice does creates a little bit more suspense than i think people were expecting. eantime, when we come back clear is going public today. the company's chairman and ceo karen seidman beckman is going to join us ahead of the first trade after this break creamy premium ice cream and chasing fireflies. don't worry about me. i'm fine. you can't beat turkey hill memories.

welcome back to "squawk box" clear is going public today. first with us is clear ceo,

karen becker congratulations to you on this milestone. it is almost counter intuitive that you've had the success you've had in the past year. i would have bet on you before this but going into it, i wouldn't have thought you would have had the year you had and now people would be investing in this, not just based on this past year but of course what may happen in the future when we all get back in the air and the world. how do you think about the consumer market versus the bismarc business market? >> everyone matters to us but the reason we are listing on the new york stock exchange is because this is always about you. you are always about your identity who showed up over the past year and not over the past year and

stayed with clear because they loved the touchless and frictionless experience. the team members who showed up every day and allowed us to make this happen and about you our partners it has been an incredible year and indicates the passion of the brand. let's but clear, i am incredibly bullish on travel. you are already seeing the return of leisure travel if distance makes the heart grow fornd, fonder, people will want to travel business travel will come back in a different way people who are road warriors and in a hybrid environment who need to travel.

>> for those who don't know, people who travel don't have to wait in the line, go to clear and pay a fee. we talked about a mix of business if you wanted to get into madison square garden and other places and restaurant companies now looking for this and businesses dealing with covid. how much of it will be a travel business, do you think >> at clear, we've built a security platform to make it safer or easier. who doesn't need clearance to get into office buildings. we think there are enormous opportunities not only in travel but to bring the clear platform to so many different verticals my hope is that aviation is the smallest vertical. there are extraordinary

opportunities to bring the platform to life and turning it into the daily habit >> for the investor saying should i buy into the ipo today, should you think of yourself now in the travel space? do you think it is a fair place to put it? >> i think the fair place to put clear is as a se cure base platform the clear plus lanes you see in airports >> the other piece, in determines of the identity component, which i know you've invested a lot of time, money and r&d in i would imagine the apples and the googles of the world might try to steal effectively a piece of that given that everybody is walking around with their phone already. i wonder how you consider the

competition in that regard >> first and for most, the way we've lived the past 11 years is the best form of competition is innovation innovation and being trusted is in our dna this is about never selling or sharing data and always opting in if you know exactly when to leave your house to get to the gate in 35 minutes and don't have to take anything out of your wallet from beginning to end. that is giving people back the most precious commodity and that is their time. we are focused on beginning to end of travel. that's how i want to live my life frictionless, safer and easier >> congratulations we look forward to seeing more of your progress >> thank you for having me on

today. when we come back, dr. scott gottlieb will talk about the threat of the delta variant and booking ceo will join us today and share how consumer demand will affect travel restrictions. check out the futures as we head to a break on this last day of 2021 red arrows but remember both s&p and nasdaq set new records yesterday. s&p off by five. nasdaq down by 20. don't go anywhere. this is "squawk box. rand and er. fast and easy. - [announcer] learn more at grammarly.com/business.

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traders looking to put the first half of 2021 in the rearview we'll get you up to speed on what you need to know ahead of the opening bell new concerns about the more transmissible delta variant fuelling worries about covid spikes talking about the strain and the chances of a resurgence in the fall more pain at the pump. gas prices on the rise ahead of the july 4th weekend what it could mean for your wallet straight ahead. second hour of "squawk box" begins right now.

welcome to "squawk box" here take a look at u.s. equity futures at this hour look at where things stand down is where they stand the dow off about 50 points, the dow off about 17 points and the s&p about five points. we'll be getting a fresh read on the u.s. labor market in just over an hour the june report is expected to show the us economy at 550,000 down from 950,000 in may in advance of the june report which is out on friday jobs friday. sticker price on new cars is apparently sticking less often a new jd powers survey showing

vehicles are going for sticker or above compared to 36% before the pandemic with the increase stemming from higher demand and lower production new york city area has had a new and unwanted distinction, study saying the region had the worst traffic. los angeles has held that title for 30 years but california's extended lockdown kept many drivers at home. life is relative let's see where that study goes in 12 months from now. all pandemic relates. >> it is all relative. i have no suggestions for l.a. other than surface neighborhoods. >> that is what waze has done,

it has helped drivers but any quiet neighborhood, streets that were never traffics have been found. >> you are a waze person >> yes do you glom on to info >> if i'm not driving, i do. >> i'm a google map person >> i'm a google map person beck, so you know. google maps now integrates the waze information i don't believe it is the opposite >> i don't like waze >> you know i get used to something and i stick with it. >> it has that gameification which is sort of fun >> out of everythings that

happened in the internet land, this may be for me do you remember 20 years ago, you would be going somewhere, you wouldn't know. do i take the gw, western spur, eastern spur it is unbelievable it is like to the minute >> within two minutes you arrive there. >> that's what was happening the traffic that made you act like that. outside englewood cliffs >> outside google maps everything is better we are going to move on here >> so you are not attracted to google maps? >> i try it from time to time but always go back to waze 18 companies set to go public this week including clear, sentinel one, zoom, krispy kreme and didi global

app. eunice has more. >> didi share sale is the biggest by a chinese company since alibaba in 2014. the order book was oversubscribed even though the ipo was more conservative compared to $100 billion. for investors, didi's strength is that it is the go to app in china if you want to get anywhere the company has 90% of the ride sharing market two other brands slug it out for the other 10%. didi says it is the size that is a spring board for other areas of transportation such as electric vehicles and autonomous driving. they are planning to put 30% of the proceeds of the ipo into those areas. the disadvantages are that it is

not profitable also, the company has not been very successful in other areas where it has tried and failed in food delivery edged out by 10 cents and others it barely registered when it comes to fintech and will dedicate about 30% of proceeds to expand overseas but those will pivot head to head with the likes of uber and lyft then the threat about the overall scrutiny the company could face by beijing's regulators for antitrust probe, tighter regulations and concern about the u.s. government and the way it views chinese stocks at the moment. >> right valuation. all kinds of things to think about too. making money some day. that would be nice eunice, thank you.

some strong warning signs from the mortgage market on a housing slow down. diana joins us right now with breaking news on that front. >> good morning. record high home price appreciation is taking its toll and showing up in mortgage demand that fell nearly 7% mortgage applications to buy a home dropped 5% for the week but we are down 17% annually demand is slumping due to weakening affordable home prices rose over 14%. that was released yesterday with folks calling the unprecedented jump truly extraordinary the average home size also rose indicating much of the activity is now on the higher end of the market first-time buyers are clearly getting sidelined. average rate on the 30-year

fixed rose on 2% it started this year around 2.8% that hit refinance demand which fell 8% for the week 15% lower than this time last year all types of mortgages in demand slowing down back to you. >> you have the feds with the idea of slowing asset purchases. the first line of defend, also mentioned by fed governor in an interview today, the first place we are looking is mortgage backed securities if they pull out at the slow down, what does that mean? >> prices would start to cool off. the real issue is will we get more supply that will allow

people to take advantage and buy. you are hurting people by having higher rates taking away purchasing power but if you could cool down those prices, they could get in and that's a difficult balancing act there. >> thank you good to see you today. when we come back, taboola has been matching internet users with online content with ads and now looking to match investors with spac. this is the last trading day of the month, quarter and first half of the year red arrows are the dow indicated down about 51, the napolitano and nasdaq both closed at new records yeery.stda off slightly "squawk box" will be right back. o places at once.

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. welcome back to squauchl taboola will begin trading on the nasdaq under the symbol sbla at a value of $2.6 billion it could make it in direct

competition with others like facebook good morning to adam the ceo of taboola. >> good morning. what an exciting day >> let's talk about life after the dspac. how are you thinking about the business whatchanges as of today for you? >> so much i hope many things remain the same and other things become new. first of all, excited to be here and can't wait to ring the bell. so much coming on july 4th independence on the web liberating ourselves it is a big market it is not personalized it is still mostly banners andrew, when is the last time you clicked on a banner. probably a few years ago by

mistake. the internet will be a beautiful feed of recommendations all personalized >> i just clicked on a banner yesterday, as it happened. because i saw a pair of shoes i had searched for earlier and there for i clicked on them. let's talk about the landscape one of the major pieces of news has been this decision and ruling by the court in favor of facebook it is up to facebook, in their fantasy world, facebook would be 100% of the internet and people would never leave their feed

the company that invented the share button, facebook should learn how to share more. i'm excited to be in the market we are seeing good momentum in the tech stock in general. facebook is crossing the $1 trillion mark. on the back of the pandemic, we are seeing good technology and companies create value >> to that point, do you believe the judge was right then do you believe they are a monopoly power and he had issues about the way they brought the case and the states brought the case? >> i'm not the guy to chime in

on a legal opinion but i can tell you i'm focused on a lot of competition. i'm pro competition. the thing is to make sure there is a good fight coming from the web. that's my focus. >> would you be in argument of facebook i would look at you and say if facebook was such eamon oply power, we wouldn't be having this conversation this morning >> i wouldn't focus on that. there is no shopify for add fiezing so small businesses can reach cnbc and blogs and the rest of the internet for me, that's an opportunity that is just missed. it is less about what facebook is doing but what can we do to drive e commerce and video growth those are the things that are missing and what we need to do as a public company with over

half a million in the balance sheet, there is so much we can do to drive growth >> what is the impact of apple's decision to make its platform more private you've seen google take more steps in terms of the information being provided by the browser and advisor and your ability to effectively pinpoint the user >> i like the fact that big companies are spending so much time i'm not sure if my mom when she searched the web is aware of all the bad actors that exist. for taboola perspective, we don't buy inventory on the web we are designed for a third party cookies not being in existence. if you look at our investment,

you see from 2017, we've been growing our yield. from our perspective, a privacy driven internet is where we should be. we are ready for it. >> what do you make for the move of publishers online away from the advertising model? >> i don't think it is away from the advertising model. i can't imagine subscription replacing advertising. we are seeing publishers diversifying i think the biggest will be encommerce over video. we saw mrk zuckerberg talking about facebook becoming more of a shopping experience. it will be smo much more than when i scroll through a feed i think we'll see subscriptions and encommerce in a bigger way diversification but advertising

will be the biggest support of a free, open internet. >> fair enough adam, great to see you congratulations. we'll talk to you again very soon >> thank you. coming up, a look at cooperman's investing strategy long-time view on the market and dr. scott gottlieb about the growing concern of the delta variant. could there be an outbreak in the fall we'll discuss when we come back. >> announcer: time for today's aflac trivia question. in finance, what is the mathematical formula used to rate the risk of lending money to potential tall borrowers? with that unexpected bill from her back surgery. aflac! let's see that one more time. ♪ ♪ (bleep) (wincing) oooh, right in the wallet! ouch! aflac!

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now the answer to today's trivia question. in finance, what is the image ma call formula used to rate the risk of lending money to potential borrowers. the answer, bayes' theorem the formula created by thomas

bayes in the 18th century. you all know lee cooperman he says he's a fully invested bear right now i spoke to him about the long-term view of the markets. he says while you have to be in the markets right now, he's nervous and there's a long list of things he's watching. >> i would watch the dollar exchange closely, fed speak, economic performance, i would watch the craziness in the market bitcoin and stuff like that. the speculationstaking place.

>> two things i hold the view. i wouldn't touch the government bond with yields currently i have a strong feeling the cycle we are going through won't end well but i have no idea where it ends. >> you know lee well he always plays it pretty real we were in a conversation, the phone rings. he picks it up and says, i got to call you back i'm in the midst of a call. he's a professional. >> we've never lost anyone, i don't think. never happened it can wait. you remember in the old days if there was a second or two of silence -- >> very uncomfortable. >> i do that all the time now. i've often said, the first time

you are up screwing things up, you say blah blah on camera. >> i've never done it before i never read prompter until on tv and you were harassing me the whole time >> i wasn't going like that or anything >> you are from the wall street journal? what are you a communist go leftist. i remember exactly i was a wall street journal reporter and never read a teleprompter >> a lot of times they have a china wall between opinion and news >> not true. wall right there boom >> anyway, lee i crank called him and he picked up the phone i just wanted to see if he'd do it he's a good sport. you know he has great ideas.

if you want to see more about what he had to say, which he can it out on cnbc events.com. still to come, the latest on the delta variant and what it means for summer travel. we'll talk to dr. gottlieb next. if you think you've been paying a lot more at the pump, it is because you are. the national average is up seven cents. we can't play music anymore. but we can play this we'll dive into rising oil prizes an what it means for the consumer some people are mad like that jerk stay tuned to "squawk box" on cnbc

>> welcome back to "squawk box." a little improvement you are still looking at red arrows for the dow futures indicated down about 18 points s&p off by two and the nasdaq has turned positive. >> countries around the world are trying to fight the delta variant. the story details how the variant is spreading so fast

it is out passing covid's contact tracers. sydney now in full lockdown for the first time in a year dr. gottlieb is with us. what gives this variant an opportunity, scott does that opportunity present itself anywhere in the united states, the specific areas of the united states or is this really, can we look at this for more of a problem for the rest of the world that might not have the same vaccination percentages that we have >> i think it is a global problem but the problem is different. this strain is more transmissible. about 40% more transmissible it will become the dominant strain when we look at israel and australia and in the pacific

rim, they have a different goal. their goal is to get to zero covid. in the united states, we are not going to get to zero covid our goal is to reduce the death and disease caused by this we are doing this by vaccination and getting vaccines into more vulnerable hospitalizations. that said, there are pockets where immunity is low. vaccination rates are low, those are the vulnerable parts of the country. if you are someone who has been vaccinated and there is a dense epidemic, you are at risk as well we know in vulnerable populations, people who are older, the vaccines will not work as well the goal is to reduce as much in the united states. i don't think we should be cavalier about this. we'll see the overall impact be reduced because so many people

have become vaccinated >> what is the right response? is california taking the right response at this time? are they overreacting? what is prudent but not overreacting >> look, i think the right response first is to get more people vaccinated. to do that, we'll have to shift strategies and get vaccines into more hands of providers. right now, it has been a top down campaign led by the government this needs to be more grassroots and deliver vaccines in doctor's offices. in terms of mitigation we shouldn't be shutting things down, putting in mask mandates i think we should do it when we see signs of spread and outbreaks. like missouri, they need to think about what they will do to try to solve that.

i don't think we should be implementing mask mandates gichen how low the pref length is overall many of the older population have been vaccinated and the overall risk has been reduced. if we start implementing these mandates now in the absence of a lot of spread, we'll lose the credibility when we need to implement them layer and in the fall, i think certain parts of the country will this won't be a national he had dep -- epidemic but it will be pockets of resurgence. >> this is not the first variant. there's been thousands and some get selected and become more pref length. this won't be the final variant either, doctor >> i think we need to start thinking not about the strains

but the muations that under lie these strains. we've seen it allow it to partially defeat our immunity. one we found in the los angeles strain and one in the south african strain you get a different variant. there are multiple forms of the delta variant. the one in the united states seems to be covered well by the vaccines and doesn't seem to be piercing the immunity. one version some are referring to as delta plus, there is a suggestion that the vaccines don't work as well that's what people are concerned about. so far, this version seem to be outcompeting it and more transmissible. there are some strains floating around we have concerns about in so far that the vaccines may not work as well against them.

that said, if this current variant becomes a strain, the hope is that it clouds out more variants that could be more menacing >> coming in fall, broadway will reopen in some cases, they'll do testing and no masks a lot of places bringing workers back to work in doors. does that concern you. do you anticipate wearing masks in the fall as a result of this if you are vaccinated? >> i don't think the fall outlook is out the window. i think we should still look forward to relatively low levels of infection around the country. that's clear in the northeast and around the country you'll see pref lvalence arounde country. people who are at risk, they may

be seeking boosters. there is some evidence the booters do provide more protection some people may choose to wear masks and some may choose to withdraw certain activities. i don't think it will be a raging epidemic like we saw last winter i think it will be pockets of spread in the northeast, we are largely protected from the current variants that are circulating. >> the cdc director was on the today show and said, we have no information to suggest you need a second shot of the j&j even with the delta variant that is a surprise to me because that's counter to what you have been telling us. >> the question you need a second shot of the j&j is different from if you need a booster. people who are at higher risk or

vaccinated a while ago, i do think they'll be looking at getting a booster this fall. the cdc will come out with a valuation that people need to be given a booster if they are farther out. based on the evidence and there are small studies, it does remain clear providing a third shot does provide increased immune where people are

vulnerable >> if you are seeing immune protection offered, you expect to see the same thing over time in people vaccinated it is tbd. we don't know right now. we need the evidence to come in. this is my speculation but i thinks that where we'll end up >> to follow up on the conversation we are having before about new york and broadway and the northeast being in abetter position. >> what do you think about new york and places of tourist >> it depends, if new york continues to have good low

numbers and we are isolating people who are infected, the city will remain open. i think there is parts of the country where people won't want to go. if you are looking at the modelling, we'll see a surge of protection in the fall that is far below the peek of the surge. this will vary in the course of the population one way or another, about 85% of americans will develop immunity. we have a choice of how we'll acquire immunity it will either be through vaccine or through infection it will need 85% of the population before it stops circulating. >> dr. gottlieb, thank you funny, isn't it. four or five times a week, we still don't have you on enough

with all of these questions. this has been our life going to be for a while longer, it looks like but maybe not forever. just nod and say, yes. >> that's right. >> all right thank you. >> we can only hope, joe coming up, will opec pump up produc production or are we headed to $5 a gallon gas. check out the prize of gasoline right now. you can look at that on the screen we are looking at 2.245. you can always watch us live on the go on the cnbc app

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you can't prove it by me he's got a d plus average. the results tell us, he's a leader >> i saw some of this yesterday. that's the first look at a young

t tony soprano >> who was playing his mother? >> she was in a lot of things. vera she was in the departed. >> and in the airline movie. up in the air movie. he starred in the role his late father starred in. he was young if you love the sopranos can his son act? he should could. >> what is so fascinated about

this, the original plan was to put it in theaters it is now going to appear in theaters and hbo at the same time interesting to see whether people will go to the theater or whether because we were accustomed to watching as a tv show will it boost subscriptions on hbo i bet we'll all see it i bet we'll all see it on hbo or hbo max? >> we are looking forward to it this is something i'd like to

see. >> he's got his father's eyes. >> he does i started watching axe again, they made the actress really young. interesting how they do it >> joe, real quick i need a review. i heard hax is amazing >> it is pretty good >> a b plus or a thumb >> i love the actress, all the way back to fargo. she's amazing. >> you are giving it -- is that on the pandemic curve now that we've gone through a lot of content? >> she is what made mayor of eastown so amazing along with

kate who was just head and shoulders above anything did you finally see that, sorkin >> it was fabulous when we come back, prices at the pump heading higher ahead of the 4th of july weekend. a forecast of where prices will be this fall coming up after the break. we'll take a look at this morning's winners and losers on the nasdaq moderna is the biggest gainer for the entire nasdaq up by over 126% "squawk box" will be right back.

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drivers should be aware gas prices are on the rise prices are up $3.10. up 43% from the same time last year you are looking at prices for seven-year highs for the average gallon the founding partner at again capital. we are talking about much more than the bounce back from the incredible lows of prices we saw just over a year ago, right? >> indeed, we are calling it revenge travel

an aversion to public transportation is forcing folks in their car we areback globally can you se kind of where we are going here. >> looking at the reaction, was that intentional >> partly, becky what has been overlooked in the crash in demand was just before the pandemic hit saudi arabia took a club and was in the process of flooding the market to back the prices whether or not there was a pandemic or not. and putting fuel on the firer when hit the saudis were coming for shale

in the beginning and with the one, two punch of what they did before the bottom dropped out and the negative pricing and the one two punch of saudi supply and the demand >> now we have opec meeting tomorrow, are they going to flood the market with oil? >> no. they are going to be stingy. they know it is going to take even more time for shale to come back i'll tell you, there is a ton of activity out there in the permian basin. they are reving up opec is going to squeeze us because they can and i believe they want to we are in a structural deficit now of 1.5 to 2 million barrels a day. more supply than in the market it is not structural there is a ton of demand out

there. >> i think two things. the first is where are prices headed >> they are heading higher we are at $3 an average today heading into the 4th of july weekend. the peak demand for gasoline is over the next couple of weeks here it may extend again because of this revenge travel. being stingy with the supply, prices are going to grind higher you'll see wtin top out $85 to $95 a barrel unless and until opec prices come on line with the supplier >> which leads me on the point of this vicious cycle.

it lures shale producers back in if you are go have $100 a barrel oil, it will take longer to get back on line or am i missing something? will this not be a run to turn them back on >> it might be more sustainable this time because it was a shake out in the shale industry of a high magnitude you have more established players who won't necessarily just drill for the sake of drilling or to pay the bills and work in production in the u.s. and give opec room to squeeze us some more. look, the boom and bust cycle of commodities and the energy patch which i've been in now for several of them is part of the landscape. part of the law, becky i wouldn't expect it to be quite different this time. i'll tell you, there are other

challenges including the pressure not to drill according to some of the esg factors over the past year or so. you'll have the land rush for a couple of reasons in the u.s. especially >> the esg factor, how real is that or how long lasting is that here to stay or will high prices top that out at some point? >> i think high prices and apparent damage to the economy from that will put it back in a box to a degree for short order. we'll have to deal with that for a while. companies like exxon oil, there are plenty of other companies out there that will take up their mantle and produce that oil. this is not forever but we will go through a kwesqueeze at the

pump every one of our past several recessions, there was a factor of course but a spike higher than other prices. mortgages, the dot com, all of it every time, oil was in the mix >> john, thank you it is great to see you have a great week. coming up, the first look at june's employment picture with adp. the adp numbers come out on wednesdays, usually. that's in the next hour around 8:15 futures ahead of that are in the red but barely then later, booking holdings ceo glenn fogel looks at reopening travel

good morning futures well off on this final day of the second quarter. on pace for the fifth straight quarter of gains a monitor launch for didi since

alibaba seven years ago. and travel resurging and a prepare for the resurgence of business. the final hour of "squawk box" begins rightnow. good morning welcome back the final day and the first day of the rest of our lives. not the story this morning we'll see a lot of red there

down across the board on the s&p. four on the dow. we've seen the dow up, nasdaq down down, dow down we've seen double digit gains for all averages assuming something crazy doesn't open today. treasury yields probably would have surprised everyone in january or even march if we told you the 10-year would be below one and a half at the half way point of 2021. 1.45% on a 10-year eithe either that's really good or really bad inflation really might be transitory or really bad because we are not taking into account something for global growth or neither. maybe it is the fed.

a lot of people having trouble trying to explain it >> really good if you are trying to get a mortgage. >> really good we'll talk about how people live and where they live in the last story here but first, didi global set to begin trading on the nyse, raised $4.4 billion. top of the range will be the biggest u.s. listing by a chinese company since alibaba. didi is just one of a number well-known companies set to debut today. also legal zoom, and clear tonight, we are expecting the pricing of krispy kreme's ipo. taken private, if you recall back in 2016 check out the shares of bed bath&beyond.

2021 meme stock. beating expectations on the top line and latest quarterly results. the company did predict comp sales and raise theout look. don't miss the interview with bed bath&beyond ceo, fresh out of the emergency room dr. mark tritton. no he's not he just looks like -- >> that's a summer look. >> does mark not know about our meme does he not know about us and bed and bath we love the exchange. >> he doesn't need us. he's got us. he had us at hello >> can you get a lot of things there. you can get a new keurig when

yours says it needs to be cleaned and you have no idea so you get a new one. and the heavy duvet, so you feel safe >> the greatest. >> the grill cleaner that shoots water. it's an amazing thing. you really feel like you are cleaning the grill a lot of things, bbby. we love it that's when we initially bonded on rainy afternoons on the weekends at bed bath&beyond. the exchange >> it is established now >> millions of renters in the

u.s., the supreme court giving relief extending the eviction ban but only runs through the end of july. voting to keep it in place now because it is due to end in a month. >> some electric vehicle news out from volvo >> volvo plans to go from where they are right now which is more as sinspirational in terms of selling to being a prior arie player here is the road map volvo is on right now. we'll hear more about this the plan is to have 50% of sales be ev by 2025 and all electric by 2030

pole star is their brand they know where the market is headed everybody knows. by 2030, you'll see probably about 24% of the world's vehicles being electric. at leasts that the expectation just over $2 million were sold worldwide. geely is the chinese company that owns volvo. the evs that are sold in the united states will be built at the plant in south carolina. this is a plant that has the capacity for about 150,000 vehicles they are nowhere close to that in terms of regular production last year, it was something like 25, 35,000 vehicles. you look at the ev stocks with exposure to china.

uch got tesla and gm and vw. china is the primary market. we'll keep watching over the next couple of hours back to you. >> what you've said there now, are there studies that show this is what consumers want or where the car companies are going because this is where government regulations are taking them and we have to see if people come around to this >> if they have the opportunity to buy them in china, they are buying electric vehicles the government is pushing it but gm has a wildly entry level

evs that why the automakers are spending more time on ev >> let's get you to the markets we are about 90 minutes. what is ahead the new chief investment strategist. good morning toyou.

the second half of the year may be a little less amazing you are right to point out that market is taking a pause and breather the catalyst has been this reopening trait. now as you look around the world, a lot of things have normalized a lot of the things have reopened you look at foot traffic that is up 10% look at hospitality. hotel has rebounded 68%. so almost to prepandemic levels. the office is lagging, a lot will go back to the office in the fall this recovery has normalized

tech is rebounding and i do think investors as they are looking for peak recovery and growth are looking for opportunities in tech. >> i can't figure out how to think about the delta variant and what do you think that does for the return to work trade take place and how this will affect travel or other things and what you think the investor class is going to say about it >> i did think dr. gottlieb said well, we are not trying to completely eradicate the virus but get to a certain level of

immunity where we may still have the virus and the strain out there but we'll continue with our day-to-day lives i think the markets are largely looking to that. certainly, if that's not the base case scenario and we have worsening conditions in the fall, that's a big risk. to come back in the markets, the price for perfection, we know valuations are very full positioning is uber bullish. $500 billion of in flows in the markets and hedge funds are in 93% of bullishness you are right to point to the delta variant. if that right thing comes along, i do think the market is acceptable to a pull back. >> it is great to see you. we look forward to seeing you very soon. great to see you take care. coming up, new jobs data you don't want to miss it.

adp's june jobs report out we'll bring you the big number as it breaks stay tuned to "squawk box. ms?

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we are 17 seconds away from the june adp employment rating futures have been down earlier down a little more in the red rick is at the cme in chicago. >> our june read on adp does not include government hiring. 692,000. that's about 92,000 more than we sk expected but still not the highest of the year the high water mark for 2021 your revision may trickle in a bit late high water mark was exactly one year ago june of 2020, 4,329,000 was the high water mark. we are at 206 and 0 year, which

is down 35 basis points so far we see the 10-year note jeyields have moved down and hovering around 1.45. joe, here is the thing that will drive the point home they are up eight basis points the five-year note down 87 you can see a huge amount of flattening but maybe most important what we want to pay attention to is that five to seven year the real financing rate of business why? most mortgages even if it is a 30 year, they don't last, seven to 10 years correlates nicely

with a mortgage in that curve. we are seeing fives really firm with respect to yields on a short maturity i believe the taper will be focused on mortgage security. 1.9 trillion, 6 trillion there all of this going on and 1.45% it defies logic and we should stop trying to have any predictions about interest rates because it is impossible >> it is impossible. even to this day, if you talk to people who are followers of the market

that will correlate with economic fundamentals. correlate is a very big word and can encompass much white noise the technical factor makes signals. merely impossible to read. i look at a 1.45 , 10-year guarantee it will correlate. it will be direct or inverse one or the other, that's all we know crazy. thanks, rick >> thanks, joe >> when we come back, a "squawk box" exclusive interview you don't want to miss with the authority on the rebound of

travel glenn fogel will talk about demand and how he sees the delta variant. check out shares of virgin galactic b of a noted the recent spike after approval to carry passengers to space. said the leading position is already reflected in the stock price. down 44.80 cents this morning. we'll be right back.

welcome back microsoft and google are reportedly ending a truce. the companies signed a pact to end a drawn out legal battle the lapse comes as regulators close in on the industry and its key players raising the question about whether open warfare is back on. andrew >> maybe it is uber updating employees on the return to work plan. asking office workers to come in 50% of the time. up to employee and teams to

figure out how to split that up. whether one week on or off >> they'll be able to choose from a list of dedicated team hubs employees have the option to apply to become fully remote workers. the new model expected to begin in september another new model being involved we'll follow a lot of these to see whether they work or stick and become the norm. when we return, three chains leading the restaurant rebound we'll tell you what they are and the numbers they are serving up. and how much is the delta variant putting the travel company in jeopardy. ceo of booking holdings is next.

you can watch or listen live on the cnbc app ayun t"sawbo on cnbc receptionist. she'll make sure you never miss a call or an opportunity to grow your business. you can't be in two places at once, let posh answer. posh virtual receptionists. girls... the chess club has gained an edge on our bake sales. we need more ways of connecting with customers, fast. i know some consultants with great ideas. can they help us improve our digital experience? absolutely. they've invested over $2 billion in tech. that could really help us manage inventory. and save us a ton of dough. then let's take back our market share. checkmate, chess heads.

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welcome back to "squawk box. the cruise line will require all guests over the age of 16 traveling from u.s. ports to be fully vaccinated the exception is from florida where govern desantis signed an order preventing cruise lines. royal caribbean said travelers not vaccinated will be required to have travel insurance and will need additional covid testing and the policy is aimed mainly at children under the age of being vaccinated. this comes after two passengers under the age of 16 tested

positive >> if you can't ask people, how do you know. you can't ask, if you are vaccinated, you can go in certain areas. is it the honor system >> you have the children and as you said, there are plenty of ports where you can't go to and you are stuck on the ship. you felt that. even when you leave, you are still moving >> i'm not taking cruises. >> and you are moving for like a week after go ahead >> let's talk restaurants. by the way, that's the other

thing. eating on a cruise i don't know if the movement and the eating is a good thing we are talking about americans returning to restaurants not necessarily on cruise lines. where we are eating and how much we are spending. we have a number of answers this morning. >> good morning. trends are continuing to head in the right direction in the restaurant space according to the latest data from black box intelligence comp sales up 25%, traffic up 19.5%. guests continuing to spend more money with growth and average per transition up 4.7% upping the q 2 same-store sales to the casual space to plus 104% lapping the drop seen last year. q 1 of 2021 was the best one-year quarter in the casual space in the last five years

but two-year same-store sales because this space struggled a lot prepandemic. you can see the casual strength struggling all of the best performing names are in casual dining red robin, ihop, cheesecake are the best performers. up 66 to 40% we are about to head into earnings season for the restaurants. we'll hear about these and how the labor market is impacted with demand ticking back up. back over to you >> what are we hearing right now on the hiring front as a result of all of this >> we've heard from big names like mcdonalds and chipolte upping their minimum wage and sign on bonuses. the nifb hosting openings up

50%. we did a story on restaurants having to shorten hours or even close down because they can't find enough workers. it is two things people coming back but the labor challenge is causing a lot of issues for companies that can come out there and serve their guests >> thank you appreciate it. >> thank you sticking with that reopening theme. travel demand strengthening in the the united states. tsa check point has been over 2 million for 8 of the last 12 days in europe and other parts of the world, rising case counts are threatening the availability joining us now will be to talk about the state of travel is president and ceo of booking holdings parent company of booking.com, price line and kayak he knows very well what

consumers are thinking right now. at the beginning of may, companies said at that point things were looking really good in the united states and europe. i'm guessing that picture has changed slightly in europe based on these new closures. >> thanks for having me, becky i said in may, the u.s. looking good europe a little behind that's changed a little things really improved and are pick up there. on the flip side, pechl can go to europe without restrictions i really say you've got to check and make sure you know where you are going is okay, i'm actually really positive about the

summer >> the uncertainty is difficult enough if you are planning for a trip and making plans in advance, not knowing of the restrictions would slow people down or make them think of another place they'd go. is that the case >> it has. booking.com offers so many things that are freely cancellable or changeable. people are make multiple bookings they'll book a trip for europe but if something happens, i'll have something else planned in the states >> that's really interesting how do you figure out what is real and which will definitely disappear? is. >> people like our service because we offer a free cancellation that being said, makes it complicated for us understanding what the inventory really is

previously, we had great models. right now, it is a little up in the air because of this increased risk but we can still handle it. let's talk about what you are seeing where are the popular destinations and where is it impossible to find a place just looking around, relatives trying to find a place in main that was booked up >> that is interesting the usual suspects people want to go to miami, ocean city, the beaches. what is interesting is the enormous number of people going to places like mexico. right now, there is no inhabition or restrigs cancun is fairly popular right now. that's something i don't think a lot of people would have thought of >> no. what are you talking about in

terms of numbers not just a year but going back two years before covid messed things up last year? >> not looking at today's rate, this week or the quarter is it important people look at the long run when this pandemic started last year, i was saying, look, it will take time to come back. when you saw the investment united airlines made in planes, that showed how much this industry believes in the future which is going to come back past 2019 at some point not sure exactly when but it is going to happen. >> i completely understand you are looking at things in the long term but when you say something like don't look at this week or this month, makes me think it is not that great yet? >> what i'm saying is specific,

i think people should look to the long term. i'm not talking about how we are doing today, tomorrow or next week >> can you give us some numbers of how things have shored up everybody i know wants to be on vacation >> given, the last day of the second quarter, it is pretty good we'll be out with earnings in the not so distance future >> all right i hear you glenn, let's talk about shortages you've seen in the industry because there is so much demand. hotels and restaurants are having such a hard time finding workers. they are not going to be able to offer those services, does that impact what you are doing in any way? >> i don't think so. but i understand the issue

people say right now in my unemployment and supplemental stuff, i am not sure i want to take that job right now. those are the type of jobs and actually the level average pay is not high enough above what you would get without working right no to drive a large percentage of people to go back to work. it is hurting some players in the industry i expect that will work itself out over higher wages or over summer and people will say i've got to go back to work >> you hear people saying they've left the industry and in an amazon warehouse, is it going to be hard to fill those jobs? is that a longer term structural problem or will that clear up as soon as those benefits go away >> the wonderful thing is that

prices will rise you may have seen some of this those large chains for the as you'll dining area will bring in more automation. you are ordering and other types of solutions in terms of auto vacuums in the hallways as well. when labor wages are going up, they are seen as an alternative and that will change the structure. >> higher prices creep in, we've heard about how difficult it is to rent a car and how difficult that is to get rid of their supply of cars during the pandemic what other things do you hear and complaints and things they hadn't been anticipating >> other things in terms of what it costs in other places and has made some people say, i can't go

to that place, i can't afford that car and a lot of those fleets wither down sized it is hard to get a lot more cars into fleets that's the problem the other thing is the confusion that is governments not working well together. if you are a proven safe traveler, i've got my vaccination. governments are not working well together we heard president biden talk about maybe a trans-atlantic bubble between there and the u.s. and that's not happening. the industry would like it if the government came together to come up with a system to all

travel safely but more easily. >> does part of that include some sort of vaccination passport >> absolutely. you have it in the eu right now. the green certificate is live. that is a good thing but evens that confusing people saying, can i get one and you can't by the way, from the us that would be very helpful >> what's the hold up? if you've got the industry pretty uniformly behind something like this, what gets caught up in the politics? >> it is just the nature of the policy and wanting to have sovereign control. it may not be the highest product right now. we understand safety will be

number one it is frustrating. i would like to have the conversation with a number of people and please explain why can't you get this going >> you mentioned some locations where it is particularly bad and you can't get a car or it would cost more. where are the worst places for it right now >> you won't be surprised about this one i had friends that were going to go to hawaii who say, i can't believe the cost of cars in hawaii and people resenting uhauls instead of cars you can't drive a car to hawaii to fill up the fleet >> other places too or is hawaii the outlier? >> yeah. that's the with unthat came mind right away >> glenn, thank you for being with us today. a lot of things changing and a lot of demand and people that

want to get out there again. >> it is good, becky things are going a lot better than a year ago and things will continue to get better i'm very positive about travel >> great good to see you, glenn we'll see you soon the first take on the final day of the second quarter. first payoff of the year wti crude is up more than 23% in the second quarter this will be the fifth straight positive quarter haven't seen a streak like that in more than a decade. stay tuned you are watching "squawk box" on cnbc

welcome back to squawk jim cramer joins us. talking about the spillover in europe >> a lot of times i listen to dr. gottlieb, i say, you know what, we have kind of disengaged with europe. i think a lot of that is that we seem to be having the delta variant under control. i get encouraged by him. the questions we ask of him are right. should we put the masks back on when we go inside?

are there areas we shouldn't go? europe was looking like it was going to have a lot of tourist travel and now it is not >> everyone is realizing they may not be ready for what's about to happen. >> then the question is how do you think about the airlines bookings how do you think about all of those sort of reopening trades, not just ones that would affect the domestic market here and anything more global than that >> i see another clause. if you take a look at the stock of boeing, it has been going down pretty consistently southwest air is one of my favs that is domestic we look at cruise ships. not that great you got to make people understand you've got to get

vaccinated the question about theater i found myself thinking, let's go see springsteen i want to go i think i'd wear a mask. i really would i god moderna. i'd l -- i got moderna. i want the booster i just don't think people feel as confident as they did a few weeks ago. >> if you are right, do you think there is a rotation back to big tech? is. >> yes >> are those the beneficiaries of this? >> we know president biden is going to put out some sort of executive. good luck. i don't know what's going on there. going back into tech i like the semis more than faang. i worry. you asked the question, you wouldn't have asked the question if you weren't believing you are worried about going to the

theater? >> right i want to understand even in the market, the middle east, which has a pretty good record of vaccination, how all of this is going to work in the fall and whether we are supposed to consider that and the variant in that context i'm not sure -- i still don't think i know the answer just yet. i would say dr. gottlieb was more positive than some of the reports would suggest about all of this. >> yes i also felt if you did get it, knock wood, it doesn't sound like it is anything more than a strong flu i feel like i need a month or two. then i'll let you know okay >> okay. >> will you go to the theater with my family is. >> i would love to let's go see springsteen my wife, your wife, we are all going to springsteen

that's the deal. >> okay. >> fist bump through the screen. we'll see you in a couple of minutes. joe, becky, you want to come >> yeah but i'm not ready to hang out inside just yet some things are worth it and some aren't. i'll see him another day >> i don't know. i'm from ohio. i don't know so i'm not born and bred jersey. >> neither am i but i still like him. >> our final guest is here with her market playbook. joining us, chief investment off officer. 15% on the first half of the year what's a good year people on a five-year, or

10-year out look say 7 or 8% is what you get how bullish should you be? >> we are already having a great year that does make us more selective going into the second half we're facing some head winds we are markets. we think that's growth switches to areas such as europe in emerging markets we are looking at more global companies that can benefit from that as those areas start to reopen in the u.s. as we come upon segment quarter earnings, the next leg of this cycle could be capex. w we're seeing higher industrial production, low inventories. capex could be what extends the cycle going forward. be selective look at areas like industrials which can benefit from capex also companies that are benefitting from the reopening trends such as cleaner air there are companies that are more quality, will have more

structural trends going forward this their favor >> you do posit that the earnings, these will be peak earnings in the second quarter >> our view is earnings growth in the second quarter over 60% most likely the peak in earnings growth now earnings growth does not mean the top of the market that would be peak earnings. we're not there yet. we're going to come across high level -- >> peak earnings growth. >> yeah, peak earnings growth. we're going to come off high levels hopefully in 2022 that's still good for the markets. if you look at markets post-dee recession, you tend to get the best returns in the first year, good returns in the second year and reasonably good returns in the third year there's still money to be made as you said, this is already a great year, and we're just getting to the second half >> you have a -- what is that a year end target for the s&p is 4,200, which is 90 points below where it is right now. so you must be thinking

individual stocks. you like boeing for a lot of reasons? >> yeah, we like boeing. if you look at global travel, it's still 40% under the levels we saw in 2019 our view is that it will come back to the low to mid single growth level we saw in the past. it's still down almost 60%, and they have a catalyst with the max 737. china could put certifications back in place so that we can have that growing again. boeing clears up their inventory, there's a nice balance sheet story, production growth story for boeing beyond the return of global travel for them >> you like carrier not just because of what's going on up in the northeast, british columbia, et cetera. the spinoff from united technologies and it fits into your industrial cyclical perspective? >> yeah, it also fits in esg and responsible investing. this is a great self-help story. a lot of times when you see companies spin out from larger conglomerates, there's a lot of upside there in terms of under

spending growth opportunities. they've been divesting, cleaning up their balance sheet, returning cash to shareholders this is an air quality play which we're all concerned about post the covid environment going forward. for schools, commercial buildings, a lot of structural growth plans in place for carrier going toward really hits the market post covid structural trends, responsible investing, highly ranked esg company, all of that very positive for carrier global beyond what they're doing in terms of their own business in terms of improving it. >> when you allocate, you know, if you were a multiasset manager you would do what with your equity position and where would you go what would you do? >> we're putting new money outside of the u.s we are looking at those beaten down areas that have been struggling because of inability to get the vaccine rolled out. we think that that's where your growth is going to be given that earnings growth is peaking in the u.s. this is pockets of europe, emerging markets like brazil also looking in areas such as china like gaming where the consumer is going back to

business and we think gaming will pick up going forward, especially the higher margin mass market business in the u.s., it has become more of a defensive quality market, even though we're seeing the markets go up, it's more defensive. i think people are getting nervous about this delta variant. you're seeing growth stocks outperform we'll see what second quarter earnings brings. for us consensus has been going up it's not going to be so much about earnings beats more about what do the companies say about capex, wage inflation going forward. find those companies that are leveraged for the ability to increase prices. >> doesn't sound like fixed income, even though i think of naveen has a lot of expertise in fixed income you'd rather have cash than that >> we have a large fixed income business we also like emerging markets on the fixed income side. we like preferred. there's certain pockets of fixed income that still look interesting here with our view that yields are not going to move up dramatically and that inflation is in that transitory camp based

on the one-time reopening and also should dampen as spending shifts from goods and services. >> okay. got it figuring it out. good picture on where you and naveen stand at this point thanks for coming on today >> thanks, joe >> okay. coming up, what to watch on this final day of the first half of 2021 and the first day of the rest of our lives. stay tuned, "squawk box" is coming right back. sted in invesq a fund that invests in the innovators of the nasdaq-100 like you become an agent of innovation with invesco qqq salute to veterans independence day terry bradshaw: hi, i'm terry bradshaw like you rocky bleier: and i'm rocky bleier. col. greg gadson: and i'm col. greg gadson. terry bradshaw: on this independence day, our heartfelt thanks, to all of our military veterans for their service. col. greg gadson: we honor our veterans, and those who are no longer with us. rocky bleier: to all of our military serving around the world,

thank you for defending the many freedoms we enjoy. terry bradshaw: tune in to salute to veterans for discussions about the issues our military veterans face daily. salute to veterans presented by sap, navy federal credit union, verizon visit us online at www.salutetoveterans.org this is lisa. she's a posh virtual receptionist. when you're busy, she'll answer your calls and assist your clients. you can't be in two places at once, let posh answer. posh virtual receptionists.

a couple of earnings reports crossing the tape this morning first up constellation brands reported profit that was in line with wall street faorecasts also revenue that came in slightly above the consensus wine and spirit sales declined, but that was offset by rising beer sales, and constellation announced an accelerated $500 million share buyback, that stock up by 1.3%. then there's general mills beating estimates on both the bottom and the top lines for its latest quarter however, the company also said that it expects consumer demand to slip and that it is trying to combat rising expenses by hiking prices and instituting cost-saving measures that stock's off by 1.6% finally, legal zoom will make its wall street debut today.

the online legal services company saw its ipo price at $28 a share. that was above the expected range and it values the company at about $5.2 billion. it's going to be trading on the nasdaq under the ticker lz and a final check on markets. we'll look at the stock futures first, which they've been, you know, negative for most of the session. they were worse. they almost turned positive, but didn't, but at this point we see the dow indicated down about 40 points or so nasdaq giving back a little, s&p down about 4 we should point out the averages are up anywhere between 12 and 14% for the first half of the year that's why we're looking back because it is june 30th. the ten-year, we've talked about at length, very few people would have predicted below 1.5% at the midpoint of 2021, and then we haven't mentioned built coin all day, it ran up above 36,000 but was unable to hold that.

it's down significantly at 34 and change or so, as you can see 34639, which is, you know, if it doesn't move 5% one way or the other it seems like it's not even trading that will do it for us when we come back, it will be july july will be here. join us on the first day of july, "squawk on the street" is next good wednesday morning, welcome to "squawk on the street." i'm carl quintanilla with jim cramer q2, futures are off the early morning lows as europe has been weak on covid variant worries. three new issues including dd, the biggest chinese ipo since alibaba. a winning first half for stocks. s&p up 14, dow and nasdaq up 12 on the year. >> as carl said, it is, well, we can call it ip