♪ good tuesday morning welcome to "squawk on the street." i'm david faber. he is jim cramer we are at the new york stock exchange carl has the morning off let's give you a look at futures. getting ready to start trading for this week. you can see, i don't know, i can't make sense of that, nothing. right? >> no. >> that says nothing let's get to the road map because that says a lot more we start with the china crackdown. shares of ridehailing giant didi are tumbling ahead of the open,

less than one week after, of course, the chinese ridehailing app listed on the new york stock exchange oil prices are rising to six-year highs, this after opec and talks there yield no production deal. and once again, we're keeping an eye on shares of amc. they're rallying the movie theater chain saying it's not going to seek approval from shareholders to boost its shares outstanding being able to potentially issue more let's start, though, with china and that crackdown overall from the government. shares of didi, remember, went public at 14 and up from there, only to go down friday's session. now, it's going to be down sharply, jim this on news, of course, of a national security review by the chinese regulators a lot of other news, i thought more interesting even than that -- well, not more but also worth mentioning, a "wall street journal" story basically says chinese regulators suggested to didi that it delay its ipo that does get back to the idea

that, well, what were they rushing for? why didn't they amend their risk section, if they knew that perhaps they were doing something chinese regulators weren't happy about, or at least had asked them to do prior to going public then, of course, it raises the larger issues for so many of these chinese companies that come public in the u.s. and overall, frankly, in terms of the chinese government simply saying, "we're in charge totally in charge. totally in control you do what we want. >> now, i was surprised that the first person we didn't hear from today was gary gentzler. there is a disclosure issue, and se sec does that. i come away with, what did jpmorgan know? what did goldm man sacks and stanley know what did the investors know who were apparently pressuring them

to come public then, of course, are we done here would you ever buy another one of these frankly, this was one that you would, in any other sport, have a do-over. you would cancel this offering we did have a canceled offering for wilt chamberlain years and years ago. this is obviously much bigger. david, i thought this was a good company. i thought the app, they'd keep growing, and eventually everyone would be using it. >> it very well may be a good company. right now, as part of the cybersecurity review, they blocked didi, the company's app from accepting new users they ordered app stores to pull didi's app from circulation. there is no way they're adding new customers, at least for now, until the cybersecurity review has been completed. >> the whole thing -- >> they have to convince regulators that foreign interests -- they want to make sure servers are in china.

components of the servers, are they made elsewhere. >> geez. >> well, listen, they do it here, too, when it comes to the chinese. >> senator rubio, you know, nobody was saying this shouldn't happen i think we're now at the moment, david, the moment of truth does the chinese government want deals here because if they wanted deals to come here, they just wrecked it. i mean, i would question any investment bank that says, you know what, we need this business >> yeah. >> we need it. we needquarter. >> you've been advocating we ban them from our capital markets. >> actually, i'm the only one i can tell even my friend, peter navarro, i said it, has not come out with a blanket book on it. >> in some ways, the chinese government seems to almost be agreeing. >> they agree with me. >> again, you try to do as much reporting as you can for me, that is talking to capital market people because i don't have sources in china who are going to be able to tell me what is really going on.

that said, and we rely on eunice yoon for her great reporting that said, it doesn't appear that this is, well, we really want to, you know, hurt this company because they chose to go public in the u.s., as much as it simply would seem to be, it's another sign the chinese are saying we're fully in control. we see what they have done in the past last summer, the financial ipo which was going to be the largest single ipo of all time we talked about it a good amount, and then it went by the wayside as a result of significant changes being ordered by the regulators in terms of their business, which made it less, potentially less, profitable we saw the fine against alibaba. the smaller education companies and the changes they made in terms of the ability for tutoring and things of that nature chinese are in control if you want to list something in this country on our markets, at this point, jim, you'd have to imagine that everybody would have to have incredibly well documented approvals from every single person in the chinese regulatory community, so investors would people comfortable. >> completely outrageous

they were told, basically, don't do this deal they did not disclose that >> back to the "journal" story. >> did syndicate tests say, listen, we're fine, even though the prc clearly said, if you go against us in any way, shape, or form, we are going to exact revenge. they did >> listen, you're absolutely right. the lead underwriters here, i'm sure, getting a lot of calls today from people saying -- >> i would say so. >> -- "what did you know, why did you allow it to happen," which is the "journal's" reporting. >> i would love to -- this is opaque there will be no answers no one will give us an answer. we will only have this story do you think anybody, an executive from didi will come on and say, listen, i'm sorry >> no. any larger takeaways here? obviously, we've got the didi story, which, again, was the largest ipo of a chinese company

since alibaba. $4 billion in our markets. >> large chinese ipos have worked for the most part it's been the smaller ones s lie luck and coffee. >> gets back to the financials it's another thing we're going to try to require. three years of audited financials before you can come public here. >> there was an underwriter who tried to browbeat me, saying i hadn't done the work, and i didn't see, "see you in court, bcourt," but are you kidding me the lowest baa rrista at starbus in china knew that lucken wasn't delivering this one is shocking this is basically the chinese saying, okay, we're probably going to let some through, but not anyone that has servers here most importantly -- >> these guys don't. >> i know. you're a moron if you buy a

chinese deal like this you're a moron >> unless you buy it at a huge discount somehow is that what it amounts to >> why do you need to put your capital at risk after this i mean, if i were the head of -- well, frankly, i really want to know if the american companies knew anything about this, that did this to you. >> again, the underwriters. >> that would be gary gentzler now, right now, gentzler should be saying -- >> by the way, the other names impacted by this cybersecurity rumorss as well. >> the logistics we have analogs here i would say gentzler should, in our show's time, should release saying he is looking into what did they know and when did they know, and american underwriters. that's where the pressure point has to be. >> yup. >> because we can't pressure the prc. they're busy beating us up everywhere, right? what do we do? worried about taiwan

there's gary did he do something, or is that a picture of gary? >> nice picture of him. >> like woodstock. >> yeah. we'll get to that, too >> oh. next door? >> let's do next door, also, of course, going public we have to show you a little woodstock. >> we're doing next door, by the way. >> that was not the opec meeting, which is what we're actually going to talk about >> yeah. >> that was not the video of the opec meeting opec leaders have no agreement on raising production limits crude oil, it is near what's the highest level it's seen since 2014, around 75 bucks. >> it could go to 100. a lot of people think there's time. >> it's all the rage, saying it could go to 100. >> the out of control thing that i see, and thank you for this, the curve out a few years is still saying 55. look, forward curve, david, in november of '23, saying a little bit below $60.

how is that poss snbl. >> you tell me. >> a lot of people feel once oil gets to a certain level, we turn on the spigot. we've been holding back. >> down 2 million barrels a day in terms of production, right? i have stat on that. >> boosted production a little last week. there was a little bit of a boost. david, if you want the whole story about oil -- >> tell me. >> you have to go to, believe it or not, devon energy, up 33% the second best performer in the s&p in the second quarter. rich bonnkrief, running continental. he is a genius rick becomes the ceo after a deal, and he has an impassioned screen against every oil company just going for volume. high returns on capital, reduce rates from free cash flow

generation will determine the winners in this cycle, he says, not the historic behavior of delivering outsized production growth so he's the first one who really just said, that's it we're done we are going to pay down debt. w we're going to return money to shareholders, in a fixed dividend, and that's the man and his accolades that have made it so we're not producing what we should by the way, light crude, our refineries are built for heavy crude. keystone pipeline. >> it's funny when you say not producing what we should what should we be? why isn't this the right amount that is actually helpful to many of the companies that produce it >> because i think consumers deserve better >> i see. >> making it so that the consumers, you know -- >> we'rebarrels a day. >> we export light crude we don't have the refinery capacity to handle the light

crude. if you are ford or gm, you're looking at this and saying, this is it. electric cars are going to have a real runway. we also have -- i mean, a lot of people are saying, you know, all these different electric car spacs are going to go under. i differ if you've been an elusive, thes a good car the fisker ocean is being made with the help of magna these companies are real. >> lucid may be read, but cciv, it is going to have 1.6 billion shares outstanding it is an over $40 billion market value. >> it can make it, but they should do it -- >> with gas prices rising significantly, it does make an ev more attractive to a consumer. >> gasoline is certainly, in a fabulous piece that rusty brazil did, he basically talks about

the wide spread increase in price is just demand over supply there is just amazing demand, and production just, i mean, you know, demand is just well exceeding supply so could oil go to 100 yes. would you play it with a major no you'd play it with d eddvn, d-v next up, next door is going public we'll talk with sarah friar in the next half hour futures, we're a little more than 15 minutes from an opening bell at the new york stock exchange a lot more "sfquawk on the street" straight ahead not what's easy. so when a hailstorm hit, usaa reached out before he could even inspect the damage. that's how you do it right. usaa insurance is made just the way

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amc is not seeking shareholder apooproval to boost the shares outstanding the company reached the limit of how much shares it can have, and it needed authorization from shareholders to sell more, to raise more money, to potentially change its trajectory in some fashion. jim, a market value hangs in there above, what, over $25 billion. >> yeah. >> let me make sure i'm right on that, but it's basically what i think i last saw >> look, i've known adam for years. adam has done what i think the

capital market suggests you do as your stock goes higher, you need to perhaps refinance debt carnival, by the way, not selling stock. it's not what they did they're refinancing 11% coupon, so what adam has to do is basically go on the offense now, buying chains. he can do that because he's got -- >> he's still in the movie business, the business of showing movies >> closed circuit. >> by the way, windows for which are tightening, not that it is going away i mean, okay, he can get even bigger woo-hoo. >> look, adam is -- do you know the companies he's either saved or -- >> maybe they should merge with gamestop. >> oh, jesus, you are so brilliant sometimes. i mean, my partner is brilliant. >> brilliant, right? merge those together. >> it's like robin hood is --

they do it the day robin hood comes public i sit there and things, they pango the industry adam put out his statement on twitter. >> he did. >> adam understands the complex of twitter, robin hood, reddit. >> his shareholder base is different than he had pre-pandemic he said, listen, it's no secret i think we could have authorized another 25 million, but what you think is important to us many yes, many no. we're not going to go ahead with such a move, so we're cancelling the july vote on more shares no more such requests. >> adam was talking about doing 500 million shares, whether he could vote on that it would have been voted on. that, obviously, he pulled back. david, if you're shorting amc, right, or just, like, buy and put because you know there's more coming, he just socked you right in the kisser. >> he did.

he did >> so smart. >> continue to come back to the long-term viability of amc as a business, in terms of whether it is worth $26 billion which, of course, virtually none of the analysts who follow the company, if any do anyomore, believe that's the case. >> people say, how can you go on air with a straight face and say that company exists. >> of course you can $26 billion market value. >> adam aron is doing his darn best to save the company perhaps this was the right thing to do because he does care about the shareholders he has he has said lately that he is going to go on offense he is going to buy others. david, i asked him if he is going to buy the british company that holds -- that has lots of theaters he obviously, you know, kind of -- >> you have to come up with something. he has to come up with a big pivot. >> david, you came up with a pivot. the gamestop. >> yeah. >> cohen, aron, done your way. show movies in gamestop?

>> sell gamestop, maybe you game maybe you bring people in to watch the big game tournaments in the amc >> yes >> pay-per-view. >> you go to take two. >> maybe get a subscription. >> activision blizzard. >> go anytime you want you always pay a higher multiple for subscription revenue. >> consistent. >> we've got it. >> shareholders get popcorn. >> you get popcorn. >> david, have you -- we were talking about $7 popcorn don't get the butter, david, because it is not butter >> it's not butter >> it is not. >> i can't believe it's not butter. >> oh, it ain't butter it is some sort of chemical. it's definitely made the price of chlorine is doing well, by the way. we'll get the mad dash and talk about the ransomware attack, as well. future, not much in terms of the direction being indicate bid the futures when we start trading ten minutes from now stay with us

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seven minutes before we get started with trading first trading session. of course, it is a tuesday let's get to a mad dash. one of your greatest calls of all time. >> what was the best performing stock in the second quarter, the s&p. i called them da vinci it was nvidia, up 49%. do you know this company was a $15 billion company five years ago? now, it's $510 billion >> that is incredible. >> incredible. well, even more incredible, as you know, the uk authorities have basically said, listen, this is national security. this weekend, david -- >> whoa, you're jumping ahead. you have to explain.

the arm holdings deal that nvidia is pursuing to buy it from softbank. >> sorry. >> which controls it, owns it. >> $40 billion largest semiconductor. >> they tend to be somewhat confident they can get it done from a regulatory perspective. they're almost alone in that view >> well, no. simon seagers, the ceo of arm, came out this weekend and said there is massive potential for combined expertise to push the technology of the future to new heights. he said people say they should do an ipo. no what would happen again? they'd have to suffocate innovation deliver short-term revenue growth and profitability they basically couldn't move fast and innovate. the authorities are saying to minimize tech? no they're being assured that if anything, they're going to build up a.i. >> that may help. >> in the uk so this blog, which you probably didn't get a chance to read. >> i didn't. >> this blog was so pro-nvidia, i think the uk authorities will have to rethink their

negativity because what he's basically saying is if we don't merge, we can't keep up. >> what about the chinese antitrust authorities? >> the chinese, as much as we are direct and, yet critical, susp suspicious, there is no overlap. one is pc and cell phone, which is arm, and the other is high-performance computing and gaming, which is nvidia. by the way, they have the best autonomous -- we may have to talk about it with tesla. >> then there's that look at that move. >> chinese historically looked to see if there is overlap, and there is none. look at that, will you >> incredible. >> by the way, for the record, know what arrived in the mail this weekend for me? >> i don't. >> nvidia's tag to walk right into headquarters. >> very nice. >> right with jenson, who sent a very nice note, saying that his dad would like that. >> i understand. >> also said n vidia ragu crame.

the middle name is what my wife, lisa, calls it he answers to anybody who has a treat. you have a treat -- >> all right, all right. we have to go. >> oh, so i have a little fun. you merge gamestop with amc. >> love them enough opening bell coming up

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opening bell is brought by nuveen leaders in responsible investors. >> welcome back. one of the stories, jim, you and i are going to be talking a lot more about, and we talk about it lot, is the whole what i believe is actually a seismic change in the way people work. we know that but it's not going back to the way it was pre-pandemic. it's simply not. this morning, jpmorgan has the return to the office there are going to be a handful of firms that require a percentage of employees or groups of employees to be back five days a week but they're going to be outliers the more executives i ask who run large and small organizations, jim, and i'm sure you're the same, the more i get the answer, hybrid, hybrid, hybrid it's what our employees want we can't go against them

>> one of the best performers, the s&p in the second quarter, and i went over them because they're a precursor often for the rest, and a company called pool what is pool swimming pools they're saying that things are getting stronger you think it'd be counterintuitive, but that's because more -- they're talking about greater millennial participation in the housing market, and the millenials are choosing jobs where they can do a hybrid so this is, to me, a sign that the backyard improvement story is not going away. >> no. >> david, the ramifications of this are so big. >> so enormous jim, i'll take a quick minute. of course, you heard the opening bell that was here at the big board business processing outsourcing company alight celebrating its listing via s ppac. de-spac. a company focused on

immunoecology. back to the story i think is one of the biggest business stories out there. >> how people work. >> how large and small organizations are dealing with the return to work and/or what they're willing to deal with it's just, i mean, i don't know if new york city and other metropolitan areas with large office spaces have adjusted yet their thinking, it's never going back to 100% >> no. >> over time, these organizations may grow, such that they take more space with 65% of their employees coming in every day. that's about it. >> david soloman in the article, it's not -- the "wall street journal" article, goldman staff members returned june 14th, greeted with food trucks food trucks versus pool at home? barbecue look, you can work around the clock at home. they can make you work. >> they can. >> they want to see you to evaluate you. >> what are the longer term

ramifications, and how do you measure whether it's working in the months we can argue are post-pandemic, or we hope, everybody will tell you productivity was great incredible productivity. by the way, that may be changing because people can do a lot more than they could during the pandemic right now. >> yes >> it's unclear whether people staying at home are going to be quite as productive. overall, how are we going to measure? how is an organization going to measure the things that you can't -- how do you measure, well, a lack of innovation, or have we innovated at the same pace we would have have we problem solved do we have cohesion as an organization in the same way those things would seem to be difficult to measure, other than via, i guess, a stock price and/or back to productivity. >> if you're out west, say you work for salesforce, i mean, you can do everything on zoom. marc benioff likes to pull people together. >> right he's not going to ever require five days back in the office. >> no.

>> software engineers, people of that nature who, typically, can be introverted i don't want to say generally speaking. >> covid was the greatest thing that happened to the introverts, according to my daughter obviously, nobody -- covid is horrible. >> many software engineers were saying, why do i need to be in the office >> salesforce, what do they buy? >> i don't know. >> slack what does slack do cla sla collaborative software what is it work from home. >> it is. >> there's all this value versus growth that was canard, a false dichotomy. no winners if you followed that, you made no money what you did, though, if you decided to think about ones that were stay at home, that didn't stop, well, docu signed up 38% we recognized we're never going back docu sign means you don't get together for areal estate deal when we buy one of the 40 houses

that my wife likes to buy, we do everything docu sign i bought a house without knowing it i pressed a button, and i buy a house. every day, i'm buying a house. it's like a car comes off the lot, you don't see the -- >> you sell the portfolio to blackstone soon and take it public. >> people were asking whether blackstone is the way to play housing. >> i don't know. >> i don't know. >> by the way, blackstone, again, one of the firms i think is requiring a fairly robust return to the office. >> they are? >> yes along with goldman sachs, stanley morgan there are different approaches jeffreys, for example, not ubs, contr ci citi after you're out of financial service, just no one i speak to who runs these companies is -- because they do surveys of their employees. the employees say, yeah, we want to be able to work from home at least a couple of days a week. >> employees' views matter because the competitive

marketplace. >> right >> i mean, typically -- do you believe -- you and i can be viewed as a triceratops, whatever dinosaur you want to call us. >> i think so. >> when you talk to people of our cohort, let's call it, there is a belief that there is a benefit to being in the office every day. that doesn't seem to be shared by those far younger than we are. >> it is hard to be team when i was at goldman, we emphasized team. it is difficult to be team without being together >> yeah. >> that's why i think david solomon is right david solomon, you know, going back and forth i want rigorous exams. i want classes friday night. i want testing friday night. i want to put up the people who finish bottom. >> you might lose -- >> i'm told by this weekend, i met people from goldman, they said i was out of touch. out of touch >> yup i keep hearing the same. >> i found it embarrassing i said, yeah, out of touch we did pretty darn well. you want to measure? >> that's the question >> productivity, that would be

the measure. >> interesting to see over the next three years if you can compare one organization that was more or less in the office every day versus one that isn't. who is going to succeed or not >> a lot of doors. you have next door you have glass door. people are rating you. >> yeah. >> they're rating you about how you are. >> as an employer. >> yeah. i would say, well, i guess if i was a talented computer scientist, i might jump from google to, you know, maybe jassy calls me now that he's running amazon. >> that's right. >> by the way, amazon breaking out. i thought that was interesting amazon, apple breaking out these are two of the as in the fang there was a note saying time to buy apple. >> up 2% suddenly, it's up 10% for the year sudden breakout. >> what is behind it >> why is it happening >> amazon? >> yeah. >> it should never have been kind of hanging around amazon took amazing share. there was absolutely nothing to

say that that ticked another characteristic of the second quarter winners. companies that took share and didn't give it back. amazon. >> right. >> a lot of people who did not shop at amazon because they didn't want to go to the store, they sthopped they liked it so much, they've stuck with it. >> i wonder. >> you know i press the wrong button, and i got 40 different p bottles of deet. >> you'll use them. >> deet is like -- >> not good? >> it's kind of like -- >> you have to use something to keep the ticks away. zoom video is also up another 1.5% again, well below the 52-week high, jim, but back to that conversation we're going to continue to have work from home i mean, you know, it's not necessarily a play only during the pandemic, is it? >> no. look, when you look at work from home, what you're really looking at is the definitive move

against the housing stocks people are still moving from the cities to get a house, to have room to have a beautiful office. now, it is true that micron has been a disappointment. zilence deal, i don't know if you've heard about it. >> mm-hmm. >> key bank this morning said they're using a $950 price target, out of step with the $1,000 price targets. >> mt.in the mad dash, we talked about that. >> it wasn't trading when i did that. >> i wanted to come back to one of the bigger stories, this ransomware attack. >> yes >> $70 million is apparently being reported as the ask from revil. can't make it up. >> crypto. >> right.

>> never stops. >> sewe had the cybersecurity public. >> others have profited from this do not forget, coming around the turn is zscaler i've had them on many times. remember, if you go to the cloud, things are safer in the cloud. >> i know. you know, they've moved. well, these are one-month move crowd strike had a great move. >> unbelievable stocks >> do you keep buying them >> unfortunately, they're extended, yes, of which i happen to like palo alto. it does both on-prem, right, and it has cloud i think the cloudstrike is terrific, too. i have to tell ya, palo alto's cloud business is rivaling everybody's.

i don't know if you met bakesh he is competitive. >> yes. >> i am reluctant to count him out and recommend cloudstrike. microsoft, again, we do not talk about this enough, about how microsoft's software is the most hacked software because it's not been updated i'm not going to blame anyone, but people are using windows 95, the fools. >> finally, jim, you mentioned amazon breaking out and apple. let me come back to that, then we have break before an important guest. almost up 1% is our apple shares. >> well, it's seasonal the apple note is actually -- i'm not going to say it is pavlum because it is better than that july to september, i tend not to like those oh, we looked at a calendar. >> looked back. >> we're in july let's recommend. when you're the head of a launch, it tends to work the piece did say, listen, the company genuinely does better

every year it outperforms. >> had a strong june. >> this is apple stocks, apple's move people come on the network, and they have said trade apple over and over and over again. i am not one of those people i have said, own apple, don't trade it i mean, is there a plaque for me, anything for you >> enough for you. you have all the houses. put up plaques in your own home. every home you go to, put up a plaque. >> slimming down the fort folio. we'll take a break apple is still trailing the broader market by a good amount. what's coming up next, you ask ceo of nextdoor, sarah friar, joining us on cnbc the company is going public via spac first, a bond report for that, we will take a look at how treasuries are fairing this morning. yields, you see it right there, slightly lower 2 and the 10 each hitting what is the lowest level in around two weeks. investors awaiting the fed's latest meeting minutes.

>> buy a house. >> due out tomorrow. they'll be watching for any further clues from the central bank yes, we tend to do that, don't we we'll be right back. ♪ ♪ when technology is easier to use... ♪ barriers don't stand a chance. ♪

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nextdoor will be a publicly traded company through a merger with an acquisition company. this is, therefore, a spac is this a spac report? i don't know i don't know i guess because i'm doing it sarah friar here, being nextdoor's ceo this is very exciting deal we had sarah on last week. congratulations to both of you >> thank you so much, jim. thanks, david, for having us on this morning >> all right sarah, ei'll go right to it. you know my wife, lisa, starts every morning, every single morning with nextdoor. she's not alone. today, she would have been met with a story about a baby robin

that fell out of a nest. believe it or not, that would be something she'd immediately mention to me. honestly, right then then a gray station wagon, subaru parked on huntington street yes. rear-view mirror window smashed by truck but, and this is why i bring this up, second item, sarah, an ad for optimum $35 a month. is that where the money is going to be, sarah >> yeah. i mean, you're exactly right, jim. we're thrilled this morning to be announcing the go public with the coastal venture spac it is going to bring in a lot of proceeds, $686 million of gross proceeds and a real bluechip set of investors where are we going to invest number one is to keep growing the neighborhood we're a network business more neighbors means more content. yes, we're going to keep investing in small businesses, just like yours. we know when they thrive, neighborhoods thrive yes, we'll keep investing in our

proprietary adtech, because that's how we monetize and will grow a phenomenal revenue stream. >> okay. are you interested chiefly in -- what attracted you to this is it the hyper local? is it the fact that sarah friar has been successful everywhere she's been, whether it be square or goldman what's the attraction? >> sarah and i worked together for a long time at square. we saw the market cap go from $2 billion ipo to $100 billion. we know each other well. but nextdoor is the neighborhood social network, like linked in is the professional network. it has strong outline effects which were very, very rare of course, the metrics and trends really run away, so we loved all that we loved the fact there's so

many different growth factors the company can take in the future it was an easy company to put our name behind given our knowledge of sarah, her team, and everything else. >> vinod, it's david i'm looking here, obviously, at some of the growth projections you only go out to 2022, at least in the slides i'm looking at but it appears that growth sort of peaked in 2020/'21 in fterms of on the revenue number maybe because of the pandemic. 40% growth is still a great number for '22, but average revenue per user is declining in terms of the growth rate is that a concern for you as you try to sell to deal the your spac shareholders? >> it isn't a concern for me we see accelerating growth i'll let maybe sarah take that >> yeah. david, let me grab that. first of all, this is our foray into the public market, so we

want to make sure we're doing it with projections we feel comfortable with but from a business perspective, we're seeing terrific momentum we saw our dow, daily active users, grow 50% year-over-year last year. that's always the starting point of any platform network business then you mentioned arpu. we're seeing phenomenal triends q1 and q2 of 2021, we saw accelerating arpu. it's really driven by, one, more engagement from the members on the platform number two, our adtech platforms getting more sophisticated, and these proceeds will invest in data science and machine learning three, we're finding not supply driven ways to drive revenue, around local commerce and businesses, and interesting ad formats s you can't get anywhere else think of anything local. i was talking to jim last week because of the a map we did with moderna and albertson's companies around getting

vaccines only nextdoor can take that message into a local level and make it happen >> so, sarah, when you had this estimate for 9% growth in arpu, 22 over 21, is that a low ball number on your part? >> i don't want to call it a low ball number, but we do want to make sure that we are taking the right steps armpu '22 over '21, is that a right number? >> we look for the 40% sustained revenue growth great companies are built because they sustain hyper growth for five, step years. we're in 11 countries. 276,000 neighborhoods and we know that this is a global denom none and we'll take it global. i say that because this -- when we post pictures of our dog and a lot of people post and someone doesn't clean up their blog, how do you know versus patchthat -

which is to me kind of an ancillary site that this would work we've long given up on newspapers how did we realize that hyper local would be successful. >> for me it was easy. number one is community. i'm all about purpose-driven company. it's to create a kinder world where everyone is in a neighborhood that we can rely on i saw my team awake all weekend working on surfside in florida and figuring out what are the right messages to get to a community that's really under duress, so number one, i know it's important and i think it's becoming more important in the world. >> one of the things we saw at square is we had access at data and that's true of nextdoor. when people are acting locally they are giving so much about what their preferences are and most of their spends happen locally when we think about houses and cars and we're very influences by our neighbors so i

knew there was a great business model and then finally a great team we just added a new head of product, couldn't be more thrilled and i'm so excited that we're not putting the funds behind it to really put a huge boost into the company and into what we could do in the neighborhood. >> one last question for me, sara why is next-door so nice and twitter so mean? >> well, we're authentic we're very authentic it's hard when you're the authentic self people can see who you are at a real address, it's hard to be completely mean. it doesn't mean it's saccharin people have to have tough conversations and we really go out of our way with technology and make sure we're saying ahead of where it can become toxic and it's fun to watch some of the other networks with things like kindness reminder.

this is where technology and behavioral science can really make a difference and how conversations are created and helped online. >> i never doubted you for a minute as you know, this is just sensational. congratulations. really great to see you both, and i think this is going to be a good one next door, by the way, was a 2015 cnbc disrupter company. our weekly newsletter offers a look at companies such as nextdoor go to cnbc.com/disruptorsnewsletter. >> coming up in the next hour, avenue co-founder and he also happens to be the co-owner of the milwaukee bucks, marc lasry joins us ahead of game one of the nba finals game. we'll be right back.

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good tuesday morning welcome to another hour of "squawk on the street. i'm morgan brennan along with david faber live on the floor of the new york stock exchange. i'll join david at post 9 this morning. carl has the morning off let's get a check on markets which is really a mixed picture with both the dow and s&p in the red and the nasdaq ever so slightly higher this morning as tech bucks that downward trend

the yield on a ten-year treasury breaking as well so that's in focus. ism data is out ten minutes ago and rick santelli has a breakdown of that for us hi, rick. >> reporter: good morning, morgan june ism, a key part of the service sector economy expecting 63.5, a little light 60.1 this is the lightest level since february when we were at 55.3, and we follow 64 which is the highest ever going back to when this series started and i do caution, as morgan pointed out we're at 140 and haven't closed under 140 since the 2nd of march and those were very key bottoms from 2012 and 2016 that represented all-to imlows for treasuries so pay attention to 135 to 138 morgan, back to you. >> santelli, thank you. >> we're 30 minutes into the trading session, three big

movers that we're watching chinese ride-hailing firm didi tanking after chinese regulators removed it from app stores citing a cyber security review didi listed just a week ago sending some shock waves through the market that stock is down about 22 right now. amazon one of the top gainers in the s&p. that as andy jaffe officially takes the helm from jeff bezos in his first day as ceo. you can see the shares are up nearly 3% and finally amc, continuing its volatile ride after announcing it would no longer seek shareholder approval to issue an additional 25 million shares you can see those shares are up actually more than 1%, david. >> thanks, morgan. turning now to another mover of the morning, at least it was moving oil earlier this morning and hit at its highest level in years and hit an impasse on production limits when you mention opec, who do you think of i only think of brian sullivan and he's here.

brian? >> i'll try to live up to that lead-in, david appreciate it. oil is down right now. we'll get to that in a second and like i said earlier, talking to jim about it in the previous highs. part of this epic opec impasse opec was scheduled to meet again virtually yesterday and called it off after my sources told me saudi arabia and russia declared to participate in the call because they thought it wasn't going to amount to anything. what is going on is complicated and, of course, it goes beyond oil so here are some of the key headlines in addition to that nice graphic we made first, opec officially did have a deal to raise output by 400,000 barrels a day from august through december. that all but agreed upon before last thursday's planned one-day meeting. remember, opec cut production by millions of barrels during the height of the pandemic with each member country taking a share of their cuts well, those cuts are based on specific baseline levels, basically what can you produce

we'll cut some off that. there you go, and as part of this deal opec tried to get done last week. we were going to extend the baseline levels from may of next year all the way through december of 2022 here's the problem look at that chart seems a little bit weird the blue line is how much the uae can produce, so that extension angered the united arab emirates, one of opec's most important members because it argues that, hey, our production has changed so our baseline should change and it does not reflect our current ability to produce more oil. in other words, if we cut what we're going to cut, we're going to end up losing billions of dollars and be cutting more than the rest of it they have also gotten, by the way, david, a new oil contract called the merban that they need to promote in abu dhabi because if you need a futures contract you need more barrels. the uae says being look, we agree we need more oil on the market and why do they need to do this extension until the end

of next year let's split the two apart and do the agreement to add more barrels and figure out the timeline a bit later on. well, for the other part of the story, of course, opec led by saudi industry minister, he says, no, the longer deal is necessary because the world may not be out of the woods yet with new lockdowns and global demands still being a bit shaky. he wants to make sure opec doesn't overproduce and send markets crashing globally again like they did last year. by the way, one reason that oil is lower right now is fear that the uae might leave opec small chance but not zero, guys. that could splinter the group and kind of create an every country for itself mentality and bin salman is trying to keep opec together. here's the bottom line spoke with both sides extensively all weekend. cramer was in the rain and i was on the phone talking to both sides and i can report that all

members do want to add 400,000 more barrels per day to the markets. the issue, david, is this extension of time and that baseline level for the uae if they get that figured out, they will have a deal and they will add more barrels. by the way, david, goldman sachs out today saying we need 5 million more barrels a day to prevent critical inventory shortages. otherwise we're going to have t.oil is a little bit down today. we'll see where this goes. if they don't get a deal, they revert to the current deal which is no new barrels which means demand if it continues hot the prices are probably going to go one way, and that ain't down. >> brian, take it back to a someplace you spent a lot of time as well which is the paris saint-germain do we see a significant increase in production there or because of different dynamics as well, can we expect the production is going to be well below the highs in the u.s.? >> yes in fact, great point, not a part of the story that we talk about enough we're down 2 million barrels a day, 1.9 million to be exact

from the highs three years ago talking about 400,000 barrels a day from opec moving the market. well, the u.s. was the market. we've lopped off 2 million barrels a day to your point we'll probably tick up a bit, david, but not a lot a couple reasons number one, as you know, investors, they are saying give us our money back. don't drill more wells you burned through capital for step years, esg investing is hot and chevron is looking to sell off assets and royal dutch shell gets out of the paris saint-germain all together the return of capital, not the return on capital and also just be clear this stuff is maintenance heavy, david. some of the stuff has been sitting around for a couple of years. you don't just pull this stuff out of storage and start drilling wells older equipment. a lot of people have retired or left the industry as well. unlikely we get a big surge in u.s. out put any time soon. >> brian sullivan, working the phones over the weekend. great i guess introduction to

what we're seeing with opec and the broader oil markets right now. we're going to continue this conversation we're not going to continue this conversation okay we're going to talk markets right now so obviously, david, opec and oil, a big focus today this monday morning but also we've had a certain amount of m & a news with some of the spac deals getting struck, and all of this as the markets are mixed but in a very narrow trading range and the treasury continues. the treasury yields and the rates continue to be such a huge focus. >> keep going back and forth with john kkilduff. >> let's bring him in. thanks for being with us this morning. do we get a deal with opec and if we don't have we facing critical inventory shortages >> well, yes, we are, up until this past weekend, saudi arabia had done a great job herding the

collective cats here, but right now we're in a big deficit, morgan, about 2 million barrels a day oil being consumed than being produced we desperately need more oil on the market, and -- and things are going to get worse before they get better. right now the uae is being a good soldier and is not indicating that they are going to break away from opec just yet, but that -- that is certainly what is potentially in the cards, and saudi arabia remains very much the taskmaster and it's sort of a forgotten nugget of history because of the pandemic, but saudi arabia laid down the law back in january of 2020 when they began flooding the market with oil, of course, not knowing what laid ahead in terms of a demand collapse which helped to crater prices, but unless and until we get more oil on the market and meaningfully world oil, the numbers we were talking about this past weekend,

even if they had come to that agreement, not enough to quell this oil price fire any time soon, so a lot of pain at the pump here for the balance of the summer for sure. >> i want to get into the geopolitical ripple effects of all of this, but first, john, we're hearing about the possibility of $100 per barrel oil. are you in that camp >> that's a little high of an estimate for me. i think it makes for good fodder and discussion and sort of as operational type number, round number, mythical type of number. no, i do think that 80 to 58 is sort of the breaking point for opec unanimity here. i think russia will have a problem with that. uae, of course, has already stated that, and others are going to scramble to put more oil on the market and i will tell you, there is a lot of activity popping now in the perm yanl you're seeing a lot of calls for workers and activity, so we may not be too far off from at least something of a renaissance in the u.s. domestic production

>> you know, it's interesting, under the last u.s. administration, the truffle administration, it was basically drill, baby, drill i want cheap gas under this administration it's a focus on green, clean energy, a shift of things like evs and a pullback on some of the those redecklation efforts that happened over the last couple of years. i wonder how that factors into this entire broader conversation around crude prices as well as the fact that opec and specifically saudi and the uae are taking the stance that they are against each other right now. >> yeah, it totally factors in it's producing a -- a scarcity premium, sort of ahead of time obviously there was an article in "the wall street journal" a couple of weeks ago where i guess the prairie chicken is an endangered species that populates itself throughout the

permean. the war is on against hydrocautiouson against crude oil almost globally and this is what this future looks like if it's not going to be tackled in a comprehensive view oil is getting all the blame rather than being shared with a lot of other issues that are here for the environment and it's going to show up right in everyone's face at the pump, so i think that on top of everything else, the saudis, make no mistake, even though they did what they did last year they want higher priced and they are in the our buddies or pals and despite what we thought even in the last administration they are trying to hold together and they are very much comfortable and they will tell you that the market is well-supplied today and they would point to other factors saying it's speculation and it's

not their fault for withholding supply from the market which, of course, it truly, is but they don't want you to know it. >> interesting to see wti $1 below brent, the world benchmark. we have to leave the conversation there thanks for kicking off the hour with us. >> good to see you >> you, too. here's a look at the road map, the milwaukee bucks co-owner marc lasry talks basketball, reopening and, of course, game one of the nba finals tonight and little markets. >> we'll break down the latest in the spack month with cantor fitzgerald howard lutnick as that company looks to spring satelogic to market. >> and the latest ransomware attack that's coming up later this hour

tonight game one of the nba finals the eastern conference champions milwaukee bucks will take on the phoenix suns who wrapped up their western conference crown last week. the milwaukee bucks, by the way, have not been to the finals since 1974 the last time the bucks won the nba championship was back in '71. i think they had a guy named kareem abdul-jabbar playing for them joining news a cnbc exclusive is marc lasory, capital and ceo and co-owner of the milwaukee bucks. '71 remains me of a knicks fan, very similar to what it's like to be a knicks fan as an owner of this franchise you must be extraordinarily happy. tell me what you're thinking and

how important it is obviously for the growth of this franchise that you've nope for some time in terms of reaching the finals. >> well, one, thank you. it's been great. it really has. obviously when you buy a team you hope to get to the nba finals so we're finally there. when you look at it. it's actually great for the city, for the state, for our fans, because it has been a long time i mean, it's been almost 50 years since we've been here so i think everybody is pretty excited. i'm extremely excited. can't wait and, know, i'm going to be leaving in a little while to get to phoenix, so i'll be there for the game tonight. >> yeah. everybody healthy, by the way, on the team? where do things stand in terms of the injury report i feel like we're on espn right now. >> yeah, i think everybody is. hopefully we'll find out what happens with giannis, but, you know, it's up to the medical

staff and him as to how he's going to feel, but they will figure it out. i'm pretty sure he'll play in the series and the question is when >> marc, it's morgan it's a young team, no one on the roster has had any nba finals experience, you can argue that the team is really built around giannis. how are you weighing the risks of playing him given the possibility, perhaps, that if we were to come back on to the court too quickly that could have long-term implications. >> absolutely. that's why i said it's really going to be up to the medical staff and they will figure it out, so their focus is really on just making sure he stays healthy, and that we don't do anything, but with the fact that we're a young team it's great. when you're young, if we can remember back to where we all were, you can do anything. that's what this team believes you know, we were able to win in atlanta without giannis and drew

and chris ended up playing exceptionally well so i -- i think everybody believes that we can do it. i think we can, and, you know, i'm hoping the rest of america believes in it, too. hopefully we're america's team. >> you want to be america's team now, too. >> why not i'm going for it >> why not hey, listen, i'll root for you >> thank you >> what does it mean to the overall value of the franchise to reach the finals? >> i assume it's positive. it certainly can't be negative so i think it's going to be positive as to what it is. >> you've got no plans to sell, right. >> yeah. this is something we want to own for our family it's something that we're all going to own for a long time, so it's always good when you think something is worth a little bit more, but it's not something we are really focused on. >> i wonder what you think though with sports betting we're seeing the expansion of it have you seen a above the from

all that have increased business and are you personally pushing for the legalization of it in wisconsin? >> i -- i think -- i think it's going to be something that's going to end up happening. i've pretty much stayed out of it i think it will end up happening because it sort of seems that's where the consumer wants to go i think the state will want to get some revenue, so ultimately i think we're just going to find that it's going to be another avenue that's going to keep on growing and it will be beneficial for everybody. >> all right let's move to the markets a bit while we've got you, marc. obviously you're a good fiduciary as an asset allocator. you're always worried about something. what's giving you the most concern perhaps in the markets >> i think -- the thing i worry about are sort of rates moving up and i think they will because i think that will slow down the economy a little bit of the right now money is exceptionally easy so i would tell you rates the only other thing that i

worry about is all the varants out there and how much impact it will have on the economy will governments decide that they want to be careful again and sort of shut things down you're starting to see a little bit of that in the uk and i think those to you are the biggest factors, but i think there's a lot of positives that are there, so i think that things are going to be fine and if i were worried about things it would be those two things right now. >> it's funny as i look at the ten-year 1355. we talk about inflation and whether or not it's transitory the bond market seems to be speaking here, doesn't it? >> yeah, it does i think at the end of the day what everybody is really going to be focused on is where rates go, and if rates move up, and the fed will ultimately have to raise rates, that will start having an impact because then money is not going to be as cheap and people will be going back into the bond market as

opposed to where all the money is right now which is in the equity markets. >> marc, a month ago you came on cnbc and you said you wished you bought up more bitcoin and given what we've seen happen to the price, are you a buyer other >> no, no. i wish i bought bitcoin when it was at 5,000 i think, know, when i look at it, i bought a bunch it's been fine i ended up bringing it, for whatever it's world, i sold my position when it had moved up, so now i'll wait and see, but, know, something for me it was just a personal investment, but i don't really focus on it that much i apologize. >> and finally, marc, i don't know if you have any thoughts pause we haven't gotten to it this hour but a big story. chinese regulators and what happened to didi i know it's the equity markets but how often does china think into your thinking in a macro level and perhaps even a micro

level as well. >> it does we invest out there and in asia. china is trying to regulate their industry more. they are trying to make sure that they have got more controls on it, and i think ultimately, you know, that's going to be hard because if you've got china regulating their industries, they are trying to do a little bit of what we're doing here in the u.s. with the s.e.c., so i think that's going to put more limit on things going forward, and, look, for what we do, we try to find special situations, so i think it's going to help us because capital is going to be a little bit scarcer because people will be worried about what the chinese government is going to do. >> marc, always appreciate it. good luck tonight. >> thank you. >> we're -- remember, we're america's team now, all right, right? >> okay. if you're saying it, i believe it even though i don't know if anybody else believes it. >> that's all we can hope for.

have a good up take care. >> you, too, marc. we just mentioned chinese tech we're going to focus on that and take a look at some of the china tech names taking a tumble right now, didi, full truck alliance and kanzhuy, all down this morning. we'll break it all down after we'll break it all down after thisthing. work... hey, rob, you're on mute. hello! hey, rob, there he is. workday. the finance, hr and planning system for a changing world.

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welcome back it's now time for our etf spotlight. we'll taking a look at ticker mchi taking a tumble over the past month as chinese regulators continue to crack down across sectors ranging from tech to financials you can see it's down about 2% today. ride-hailing firm didi is a host of names getting impacted by all of this, and it's all headed to the downside mentioned them before the break. full truck alliance on this show not long ago when they went public, down 20% and kanzhun, i think i'm saying that right, down 10% as well, and, david, it speaks to the broadening regulatory crackdown that we're seeing in china across its

different regulatory bodies and really speaks to how big potentially the risks are now for investors in some of these ipos you've got to wonder what it does to the almost three dozen chinese names that are reportedly in the pipeline to go public here. >> didi, i mean, that's a big story given this company went public in our markets and raised $4.5 billion at 14 and is now trading below 12 as a result of it, according to the "wall street journal," of course, something they potentially knew about, namely that chinese regulators already suggested to delay its ipo while they did this review from a cyber security perspective you know, there's a lot of other questions, of course, as you might imagine. what are the chinese really afternoon? do they want to try to diminish the flow of the chinese communities that are using the markets to go public but is it really about exercising control in a real significant way, but to your point, morgan, whatever it may be, it certainly does at least show that there's a great deal of potential downside here

in terms of the regulators, what they are willing to do and one would imagine if you're going to go public in our markets as a chinese company, you'll have to have everything done across the board when it comes to well documented approval from every regulator in china. >> every regulator in china and don't forgot all of this increasing scrutiny that's happening from american regulators on these chinese companies as well which i think is also part of the rub here, right? you're talking about national security implications or at least the argument for national security implications whether it's in china, by the way or in here in the u.s. as well and data as we know is very much king and how not only monetizable but how sensible some of that data can be certainly seems to be the focal point where didi is concerned, but it has been a topic of debate for these companies that have come into this market, not only financially speaking as publicly traded entities but in terms of cracking into the u.s.

market to sell wares over the last couple of years as well so i have a feeling that this is just going to continue to grow in terms of the attention. >> a year ago or so, not quite and financial was becoming public biggest ipo of all time it would have been, and then the chinese regulators came in and said, nobody, you've got to change your business model and haven't heard from them since in terms of a public listing. >> coming up, a look at the tainomware attacks that are atckg businesses across a dozen countries. "squawk on the street" is back in a few folks the world's first fully autonomous vehicle is almost at the finish line today we're going to fine tune the dynamic braking system whoo, what a ride! i invested in invesco qqq a fund that invests in the innovators of the nasdaq 100 like you you don't have to be a deep learning engineer to help make the world a smarter place does this come in blue?

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welcome back i'm rahel solomon and here's your cnbc news update at this hour tropical storm elsa is west of

the florida keys with maximum sustained winds of 60 mines. it's expected to be near hurricane strength as it hits florida's gulf coast tomorrow and heavy rain is expected in many parts of western florida. and the search for victims continued at the site of that condo collapse even as crows contended with strong winds. four more bodies have been recovered, now bringing the confirmed death toll to 32. >> israel's health ministry says preliminary data says covid's pfizer vaccine may be less effective against the delta variant but provides strong protection against serious illnesses and hospitalizations and nicole hannah jones has accepted a tenured position at howard university. the extended fight at the university of north carolina chapel hill made the decision and the position she was ultimately offered something she didn't want anymore. she won a pulitzer for her work on the 1619 project at "new york times. back to you. >> rahel, thank you.

satelogic will go via a spac merger with cantor fitzgerald. the satellite earth imagery coming working with spacex on a multi-launch contract setting the goal to launch 300 satellites by 2025 joining us now to discuss the deal and broader m & a, cantor fitzgerald ceo and chairman howard lutnick thanks for joining us on the show today. >> great to see you. >> at a time we're talking about so-called billionaire space races and bezos and others making their first trip, why are you starting to invest in space right now? >> space, it's the final frontier i mean, it's the place to go, and these satellites, satellogic

does incredible imagery of the earth. they have 17 satellites in the sky right now and when they have 300 in the sky and we're raising enough money for them to launch all 300, they can take a sub meter picture of every square inch of the earth so think about all the gps people who want to talk about how the arctic and water level, trees, every square inch of europe they can take a picture of it and have a great image of it and be able to catalog everything the data is going to be amazing. >> yeah, i mean, you bring up a good point we talk about things like space tourism and earth imaging and analytics and -- and what can be done from space on that front is really where so much of the big money is being made right now. that being said, the goal of reaching 300-plus satellites in orbit by 2025, still a ways away already have competition and you've got planet max and black sky to name a few. so what makes this company different? what compelled you to buy this

company or sponsor this company specifically >> cantor fitzgerald goes into -- these guys developed their own satellites and what other guys have done is buy components from other people and put them together and costs $10 million to get them in the sky and they take about 30 kilometers a day of images this company makes each and every piece itself, has its own factory and puts it all together and gets them in the sky for under $1 million and makes the 300,000 kilometers per day in images, ten times the images, 1/10 the price so for $300 million instead of launching 30 satellites, these guys can launch 300 satellites and take ten times the picture. with their 17 satellites they can take more images than all four of the other biggest satellite companies combined, so lower, lower costs they can sell farmers, you grow,

great images of their farms and they can do container ships coming in every port in the world. i mean, this is going to change the way people view data and people view analytics. i love -- i love the way satellite imagery is going to matter and the data that comes from it, i think that this is the way that people are going to trade. what we're going to be talking about in the future is how many cargo ships are going to go and coming and going this is the way the world is going. >> yeah. let's broaden this out a little bit because as you mentioned this is not your first spac. how would you gauge the spac landscape overall right now and where it goes from here? we've seen issuance real slow to the trickle. the pipeline given the s.e.c. guidance and even seen some of the big name that had have de-spac'd. how does this continue to evolve >> the spac market in the first quarter, they launched hundreds

of spacs, new spacs came out in the first quarter, fast and furiously, and then the pipe market sort of quieted down for a little while and the pipe market what, happens is with the spac, big institutional investors validate the transaction like in satellogic soft banking and put in 25 million saying this is a good deal at $10. we're in $10 and we're going up there. the pipe market is open and getting better and stronger every day. i agree with you two months ago, it was really quiet, but now it's starting to come and you're starting to see these things trading up. sure, there's companies where there's all sorts of problems but, you know, great companies are going public through spacs and they are starting to trade better now and you'll see over the next few months this market is going to get better and better as more and more institutional investors see that this is an opportunity to take a big position in a company like satellogic on its ipo. this is the way to do it.

>> right howard, it's david there is a belief that there may be a misalignment of incentives to some extent you as a spac sponsor if i were to do a sensitivity analysis probably down to two or three bucks on this stock you're still making money whereas the people who come in are not making money unless it comes above ten. how do you answer that >> it's pretty simple. we're different. we're writing a check for $25 million into the pipe, right, so, sure, there are other sponsors who are not really connected. they are really just promoters and they get, like you said, they can make money even if the stock is down $2 we are core investors. if i'm going to do all this work and find this great company, i want to put cantor fitzgerald's money and my money in right alongside of it and that's what differentiates cantor fitzgerald we're in with the companies that we responsor and we're big investors. >> right. >> will you be in on those out years where, you know, the numbers are very big, 2025, i think you're estimating olympic

$800 million in revenues and 473 million in adjusted ebitda i mean, if you get to those numbers, howard, you'll have a nice stock price do you think you'll still be there then >> you guys will be writing about this for a long time i love these companies the marginal costs, once they get the satellites in the air. the marginal costs of taking these images is nothing, so they can sell images to farmers in india or farmers in iaea it doesn't matter. the satellites are going 27,000 kilometers an hour t.changes the math so the objective for susto find great companies and invest early like this. i mean, $850 million enterprise value so this company as it rolls out its satellites and sells its images, the company's revenues are going to explode and the value of this transaction is going to be great so, of course, we'll be there. that's how you make a lot of money and it's one of those things that i think about. howard, finally, given the fact that you are the ceo of a major financial company.

i know you have your hands in a number of other things including what we're talking about here today as well. we can talk about the cyber security situation that's taking place in china right now but we, too, are also seeing this major ransomware hack play out as well are you spending more on cyber security how are you thinking about that? >> i think the simple answer is yes, and you need to spend money and you need to have a really policy at the firm and you need to be on the attack, so what we do is we hire companies to try to hack us so that we can defend ourselves and see where the weaknesses r.look, this is part of the world out there, and you've got to spend money on it. you've got to be on top of it, and it's harrowing and it's very difficult and i feel terrible for the companies that have been attacked and, you know, we just have to do your best you have to be vigilant. you have to be vigilant. >> howard lutnick, thanks for joining us today. >> great great to see you >> well, american express is one

of the few bright spots in the dow this morning, this after the company was upgraded to a buy over at goldman sachs. the catalyst well they cite a big pickup in consumer spending and better credit as well not doing too much for the stock though we'll be right back with more "squawk on the street. been likee we started using workday. what do you mean? it makes it easier to develop great relationships with our suppliers. now everyone, everywhere loves jerry. they sure do. they do. they really do. mmhmm. workday. finance, hr, planning and spend management for a changing world.

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collective and it attacked c.a.s.a. which happens manage basic soft wears and manages other companies and it affected more than a million systems in total. a lot of cyber security experts question that number they are demanding $70 billion in becane as the ransom here all companies impacted can de-encrypt at the same time if they get paid. experts believe that that ransom figure of 70 million can be negotiated lower, maybe as lower as $40 million, $50 million if anyone decides to pay. no indication that anyone is going to pay just now. i talked to the ceo of a cyber security company earlier today on cnbc, and he described the scale of what we're seeing today. >> simply put, this is by far the largest ransomware incident. we would guess 1,500, maybe up to 2,000 companies affected. with that said, where we're at,

we're past the detection phase into recovery phase for a lot of these businesses, but to be honest most of the industry who uses this software is still waiting for a patch. >> morgan, for a lot of these companies that were off over the fousht of july long weekend, coming back into the office today and figuring out how bad the damage is, now there's some real question about whether they will be left to their own devices to negotiate a settlement with the hackers individually, one-offs across corporate america or if the company that was impacted here, kaseya, the software cap, will be responsible for paying an overall ransom none of that has been decided and we'll keep you up to speed when we hear from the company about what decisions they will make. >> we'll be waiting for the updates. thanks for bring issoring us the latest. as didi continues its ride lower, do not miss the next hour of tech check with a breakdown of the move and what can be next ♪♪ in the meantime, we'll be back after this break

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♪ indeed, you and me are we ♪ ♪ me and you singing in the park ♪ ♪ me and you, we're waiting for the dark ♪ i'm dominic chu. markets are mixed today.

energy stocks getting hit the worst as oil prices touch multi-year highs and turn lower on the day outperformer is technology those gains being led by cloud computing type companies apple also up on the day now less than 2% away from its own record high. now that drop in interest rates could be a big factor to keep an eye on with higher growth oriented stocks as lower rates do tend to help valuations for those type of companies. we'll see if rates and valuations remains under pressure here for the rate side of things. david, i'll send it back to you. >> thank you well wall street is returning to work, at least some firms but just how many office doors will fully re-open five days a week i'll have the latest in real estate rates and marcus and millichap ceo is next.

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surging. up almost 4% >> moving on as the economy re-opens we monitor the real estate market amongst others and return to office story our next guest saying while office space demand remains weak his company is seeing its strongest summer in over a decade joining us now marcus & millichap ceo, hessam nadji. you're in a lot of different businesses i would like to come to you on office space the conversation i had with any number of people that run smaller and larger conversations is as follows. we want everybody to come back they don't all want to come back it will be hybrid. maybe if it works out hybrid i can reduce my footprint. what's the alternative side of that argument when we talk about commercial real estate here? >> good morning, david thanks for having me back on the

program. what you're hearing very accurate the hybrid is here to stay we've learned a lot about virtual execution. one is to reduce office costs. we're seeing that and believe it's sustainable on the flip side when you look at the recovery in the economy post-pandemic but the re-engineering of the economy and the re-invention of so many different sectors reflected in the fact that new business startups are at an all-time record, 1.8 million applications for new businesses have been filed in the last 12 months through may which is by far bigger than any recovery in modern history the economy is reshaping itself and within the next 12 to 18 months all of that will create new demand whether for office space, industrial warehouses, even retail is resurging brick-and-mortar retail not just retail in general. of course housing is very hot.

the recovery magaznitude is so g offsetting some of the drag that you're talking about >> interesting we can assume some of those businesses won't be just started from somebody's bedroom that will actually get office space >> exactly >> you have these same conversations. what are you expectations in terms of what work looks like for the future and what work space looks like for the future. >> you know, property owners are responding very quickly in partnering with their tenants to try to figure that out there's a lot of reconfiguration of office space use that's happening as we speak, for example. one of the most important parts of that reconfiguration is team environment and collaboration space. allowing people to be able to work together and then hoteling. we heard this term many, many times before in reality being able to use office space in a generic

fashion when you're in the office but not necessarily consuming that office space when you're on the virtual side other hybrid combination side of being able to work from home are the most popular things that we're hearing about. on the retail front, massive reduction of store front or if you will footprint, and storage space because of much more advanced real-time deliveries and the fact that retail is now rei reinventing itself they are coming back very strong >> interesting you just talked about office, you just touched on retail housing has been hot but what are the other areas where you're seeing rapid growth right now? >> well, as you can imagine hospi hospitality was hardest hit. consumer part of hospitality is

back in full force business travel is restricted and there's a question mark as to whether businesses will could back to the level of conferences and gatherings as we saw before the pandemic our bet and most of our clients bet across the country is that it will. it will take longer because people do want to be together. we're for example as a firm we're having a first physical gathering just in the next week in 15 months and there are many, many examples of that across the country. that's going to lag for a while on the business travel side of the equation self-storage is one of the strongest component of commercial real estate seniors housing facilities which were hit very hard during the pandemic are just beginning to come back. but they are going to take some time to recover. apartments, of course, have been the darling of the commercial real estate investment marketplace and helped to get very well throughout the pandemic there are some changes going on with renter preferences. you're seeing vacancy in three

bedroom units going down while vacancies in studio going up all in all because of low interest rates and tremendous yield and lack of overbuilding there's more capital wanting to invest in commercial real estate than a long time >> we have to leave it there we're at the end of the hour thanks for joining us the. >> that will do it for "squawk on the street" "techcheck" starts now ♪ west virginia ♪ ♪ blue ridge mountains shenandoah river ♪ ♪ ♪ good tuesday morning and welcome to