media moguls gathering in sun valley we have a story about reese witherspoon's media company. china's crackdown on tech and cryptocurrencies is ramping up it's wednesday, july 7th, 2021, and "squawk box" begins right now. good morning and welcome to "squawk box" here on cnbc. i'm melissa leah long with joe kernen beck yes and andrew are off. the s&p 500 ended a seven day winning streak the dow pulling back 209 points. the nasdaq did rise to a new high joined by gains in amazon

which hit its own high, apple as well as alphabet u.s. equity futures after the record seven day on the nasdaq we had green arrows on your nasdaq while -- there we go, green arrows across the board. treasury yields, the 10-year yield is in focus. we moved under 1.4% yesterday. that move continues today. 1.34 is the level. we did go as low as 1.35ish. >> there it is. >> yeah, there it is crude prices yesterday after spiking on the breakdown of the opec talks reversed. we do have gains though in today's session. so far wti is up by 1.8% brent is higher by 1.7%. $75.78 a barrel. >> dow had a four handle down. >> right. >> temporarily

didn't happen. it looked like the final reckoning, thinking about things with this market maybe it won't happen in the summer >> i have an interesting -- >> oil is weird. >> we had treasury yields move over we had oil prices higher for a short amount of time. >> then down. >> right it did reverse >> it did. never got out of hand and it's amazing when we see 400 down, all you have to do is look at the last three months on what we've gained it does get your attention because it's so rare to see. >> right on a percentage basis it's nothing. what we're seeing here with the new lower yields, we've got tech moving higher. you have this push/pull when it comes to the selloff, the reopening but then you have tech gaining some more ground because of the weakness in yields. leaving the markets so that

pushes the markets higher. it's an interesting rotation grind kind of feel to it >> there's nothing you can point to that explains 1.5 nothing. there's reopening. there's, you know, infrastructure, 6 trillion after that there's global growth. covid variant. then there's another variant >> variant >> there's something going on. >> fed tightening. if the bond market is a predictor of forward looking mechanism, maybe it's already starting to price in that move by the fed. >> so you mean second river, the tightening causing a growth slowdown it should have yields going higher, that's how you tighten. >> right. >> the consequences could be slower global growth. >> right a lot of weird psychology. >> it's confounding. no one would have predicted 1.35 even when tepper said we'll stick to 1.6, 1.7, no one said

we were going to 1.2. >> right. >> sooner or later, it's good for a while bhaus there is no alternative. sooner or later, someone says what's going on. >> right. >> what are we not understanding. a break below 1.3, that would be huge >> you've been asking about the "squawk" planner do you want me to tell you what's on it today >> i'm dying to know i woke up this morning wondering -- >> joe, what's on the squawk planner. >> you've got to wait. >> i'm waiting. >> minutes away from the latest fed meeting at 2 p.m they're expected to be dovish. the bank looking for progress in the labor market and not worried the recent inflation we've seen will become a trend. weekly mortgage applications, i didn't want to tell you that i wanted to surprise you also, job openings and labor turnover this morning.

at the same time i was reading the article with we're grappling with what to do with crypto we're worried it's -- front section. we're worried there's an entire shadow banking system emerging from crypto. >> okay. >> government people don't like things they don't control. at the same time -- there it is. we're learning more about china's latest crackdown on bitcoin. yesterday china's central bank said it called for the shutdown of a company suspected of providing software and the statement warned institutions to provide other services related to virtual currency including providing business premises. half of the bitcoin minors are following beijing's call for a severe crackdown on bitcoin mining and trading

we have eamon javers, his entire job now is following bitcoin and ransomware. >> ransomware. >> it's happening every week at this point i don't know what it means is it decentralized? peer to peer only so much that can be mined anyway but you canned fight city hall city hall decides to do something, is it big enough to resist >> it seems a little bit like the horse is out of the barn at this point >> see, i don't think that's a good one because you can put the horseback in the barn. >> but if the horse is wild and runs away, how do you -- >> two cases out of the two. >> that's your take? >> no. no, it's not. >> that's your favorite? >> scramble an egg >> that's pretty good, too i'll use those because it is possible. >> do you use out of the bottle? the genie. >> we've seen that in "i dream

of genie." >> and in a a laden. >> we digress. newly listed didi fell 20% the largest since alibaba went public in 2019 promising new comments from senator marco rubio. a known policy hawk telling the financial times, quote, it was reckless and irresponsible to allow an unaccountable chinese company to sell shares on the new york stock exchange. he said even if the stock rebounds, american investors have no insight into the company's financial strength because they block u.s. regulators from reviewing the books. that puts investments of american retirees and funnels money into u.s. banks. much more at 6:30 a.m. eastern time. >> what did didi know and did

regulators say -- reading today, any of the recent listings that we've seen, there was an implied wink and a nod they never said, go ahead. you've got clearance you're going to be fine. there's always, well, if you do this, if you do that, there's a leap of faith that companies are taking when they list here that regulators eernt going to do anything in didi's defense, they didn't do anything. they lowered the boom on this one. >> you daze -- two days after in the s1 they specifically say, they cite the possibility of investigations and other events that could materially adversely impact the business in china it doesn't say anything about the chinese regulators specifically tapping its shoulders and saying, you might want to rethink the ipo or we

might have some issues specifically with data there's no sense of timing that the conversations are very recent like a blanket. >> it seemed to change right at the very top with the chinese power. >> yeah. yeah >> that's -- china takes didi investors for a ride american shareholders get an expensive lesson in xi jinping risk he can decide. >> yeah. >> in the last couple of months or whatever -- >> november. since the scrapping of the amp. >> of the amp deal and a worry that we're -- more of our -- more sort of forays into a cold war and this beginning cold war that we're seeing where we don't want them to have our data, ticktock or whatever they don't want to think we're getting their data through all of this. it's almost like bigger than a corporate story. definitely at this point, right? >> yeah. so what happens to these chinese ipos in the pipeline

frozen >> go to hong kong. >> the appetite? what is the appetite by u.s. investors for these companies? how much of a discount of valuation will these stocks -- remember, alibaba paid that massive fine and jack ma resurfaced he wasn't put out to pasture or anything nefarious >> right. >> he resurfaced, he was okay. they paid the fine and yet alibaba still, every headline goes down. we saw that in yesterday's session. so how long does this discounted valuation persist? that's the question. how do you price that in >> and do they change? do you go to hong kong how long is that going to be a viable alternative i'm not sure she's trying to mollify. she didn't say anything that we're going to come to your defense on this. she said basically, look, you talk to people, could go to

jail crazy. meanwhile, back here it's like summer camp for these people what are they doing out there, do we know are they making deals? >> it's beautiful there. >> it is beautiful are they working media moguls gathering in sun valley, idaho this week. zaslav said media consolidation is only going to accelerate and he intends to be a catalyst. here's what he said to julia boorstin who's there yesterday. >> i think the talk of the week is going to be that the industry is probably striking it solid. brian's built a great company. jeff's doing a great job with universal so we're not done yet. you know, we're looking to get this deal done and then we're going to see >> well, we have vestberg on later. we'll talk about media deal making throughout the morning

including our interview with hans vestberg at 8:00. if you're david making nice with comcast. >> yeah. he wants to talk to jeff shell and brian roberts. you're thinking, he's still getting approval for his own merger this is pretty interesting he's still on the prowl. >> the scuttlebutt was that brian -- if it wasn't fo last w about to do something, stock immediately drops. they coveted discovery. >> oh, yeah. >> totally some people -- david is smart.

if anyone can pull it off, he can. people are saying the dog chasing the bus, catches it, okay, i've got it. now what do i do with it reese witherspoon, i have been in her presence at a function. >> how did you feel in her presence >> honored no, she's very smart very smart, very nice, very talented as an actress and now how much does show own because it's valued at $1 billion. >> this is what we're talking about. her media company hello sunshine is exploring a sale. we'll see what reese witherspoon has to offer as a businesswoman. according to a wall street journal report hello sunshine's titles include apple's morning show and it owns a book club. >> she almost bought a town. is that her? where she grew up.

this was a few years ago she's got -- >> tentacles. >> she's smart, isn't it >> that's it that's a pretty good show. did you watch it >> there's a bunch of them. >> i saw a couple of episodes. >> you have an afternoon show. >> i'm a fill-in morning show person. >> yes >> doesn't make me a morning person at all. >> i don't see you as that >> as a fill in? >> no. >> very nice at 6:14 in the morning. coming up, a big shake in the tech world pentagon canceling a $12 billion cloud software contract that had been awarded to microsoft. samsung expects a 53% rise in operating profit in the second quarter it will offset weaker prices the world eegs largest smartphone of about 11 and

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between amazon, microsoft. it's been going on for years lots has changed the contract was awarded to microsoft during the trump administration that decision was challenged by amazon the pentagon said it had so solicited bids from companies like oracle, microsoft and amazon it's no longer going to be called jedi. >> best name ever. >> jwcc. >> joint war fighter cloud contract >> jwcc does not have the -- and a lot swirls around us bezos owned the washington post. trump hates the washington post. >> right. >> give it to microsoft but then other people said amazon was too close with the department of defense. all of the former people went to -- >> they had to scrap it.

in scrapping this when the news came out, you started seeing amazon shares move higher. >> going out, sun valley was over 200 billion. >> which one is he >> bezos go out and strut around there. >> and talk about his upcoming space flight not many people can go out there -- >> before i go to space i thought i'd drop by sun valley i mean, that's pretty awesome. >> if they had done it, he'd be tied to microsoft for as long as a decade, 2031 who knows what that whole -- who knows what cloud computing is going to look like you don't know who's going to be the lead it could be a company we haven't heard of so this opens up things.

while the dow and s&p posted losses, the nasdaq was at an all-time high. stephanie link, great to see you. you know, big tech -- >> good morning. >> -- continued to outperform. it has done so for the past month or so. lower rates have really helped do you think that this environment continues for much longer >> yeah. i mean, i think faang and growth are trading the same, right? they've had a great recovery in the second quarter this year has been all about rotation i feel like i talk about that all the time the first quarter value outperformed growth by 12% and then in the second quarter we saw that narrow, that spread narrow to 2% it is because of low interest rates but it's also, i think, because people think we've seen peak growth and inflation is transitory it's all one and the same. i'm in the camp of that growth is going to be stronger for longer and above trend, maybe not at this level but i do

believe it's going to be above trend. i also think that inflation, parts of it, are not transitory. so i think you want to have a blend. you want it closer to faang and to secular growth technology companies. they're such a big part of my benchmark, which is the s&p 500, melissa. you have to have exposure. you want to pick your spots along the way. >> you added -- i noticed you added to amazon two weeks ago and i'm wondering at this point, what do you do with it are you trimming your position from the portfolio management standpoint how do you see it? >> yeah. i mean, it hasn't grown very much over the last six, eight months that's why i added to it i think it has more to go because it has lag and it's really only up 13% year to date. trends at 4.4 times sales which is kind of reasonable. you can do a sum of the parts. you guys were talking about

cloud. there's only 15% of the work loads in the cloud growing 28 to 32% and they're bohemoth in the industry we know about retail ecommerce, how it's going to be a $7 trillion total addressable market they're in the game as well. i like this mgm deal keeps them into the streaming world in a pretty big way. it's got a lot going for it, if you will i'm just going to holdonto the bigger size position that i have >> in terms of rates, stephanie, we were talking about low rates beneficial for growth. growth and technology. i'm wondering at what point do you think low rates are a negative signal to the markets how low is too low how low is stoking deflationary fears? >> i just can't see deflation, not with all of this stimulus in place, not with wages going up every single month in the non-farm payroll, right? you hear from a variety of

different companies that are saying they're increasing wages. that's going to be the thing i'm going to listen to in the quarter coming up that starts next week. all companies are going to see the wage pressures can they raise pricing can they deal with it? what happens to margins? that is going to be the tell i think at the end of the day higher growth, above trend, a little bit of inflation and low interest rates i have to say, it's goldie locks for risk-on assets and equities. i think that's all very good i think you're going to see earnings growth of 40%, maybe even better. i like the cyclicals still i'm not abandoning them but i still have this bar bell. >> higher wages. which sectors yield the biggest impact because of margins? is it retail on one side you have them paying higher wages but you also have their workers having higher wages, which is a good thing

>> right and i think the consumer is in very good shape. very healthy savings rate. there's a lot of pent-up demand. we all are hearing about it. we all talk to our friends we know we want to travel and get out and about. i think you have about anywhere from 2 to $3 trillion of pent-up demand from the consumer so -- but, yes, they are going to feel -- we are all going to feel higher prices i would say this, the consumers staples companies that are the ones that were notable when they said everyone of them, everyone of them is raising prices. so let's watch that sector and, yeah, i absolutely watch consumers in general in terms of higher prices going forward. >> stephanie, thank you. stephanie link >> thanks. coming up, we've all seen the videos and wondered what is the story and what would you do if you're sitting there and this is happening

i don't know >> new data from the faa on exactly what it is it's not alcohol, that's my guess, but what's driving the unprecedented anger among airline passengers that helps i guarantee you it helps then later verizon ceo hans vestberg joins us from sunday valley, idaho. "squawk box" is coming right back

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disputes over mask mandates proving to be one of the biggest issues facing airlines as more people return to flying. the faa says since the beginning of the year they received more than 3200 reports of unruly behavior by passengers 75% are people refusing to comply with federal mask mandates the agency says it has handed out fines to unruly travelers totaling $682,000 so far this

year you know you have to wear them when you go on there. >> right. >> you get there and you're like, what, i have to wear a mask >> you insist, no, i'm not. >> you think you're going to get away with it all right. fine we'll take off that's fine. don't wear one. >> then you get in a big fight with people, with other passengers and the crew? >> air travel is already a pretty tense sort of -- you know, it's not an easy process >> have you driven a long way with the kids? >> no. no the longest trip is an hour. >> melissa, we've done a lot we do it a lot sometimes it's 13 or 14 hours. sometimes we do two days, which can be fun, but it does take two days you find a place, a restaurant it's kind of fun maybe a pool or something. if you go straight and do 13,

that'll get your attention my kids are old enough. just my leg. i thought i might have to have it amputated because i drive -- you drive for 13 hours. >> you still have both. >> i did not get it but, no, you get a lot -- >> these people should just comply. >> i'm saying that i like driving and i like -- you know, you go to the airport. you do this, you do that get on a plane get delayed, land. you wait for it. it's a two-hour flight is like an eight hour ordeal >> oh, right you do 9 hours on the road and have your car when you get there instead of renting a car that's my only point. >> but in terms of these people, they should be blacklisted. >> yeah. >> no more flying for you. >> you can't be unruly and you can't be violent >> right it's a privilege all right. coming up, china's big check

crackdown. shares of didi sinking again we'll talk about what's coming up after this break. breaking news, the ap reporting an armed intruder shot and killed haitian president overnight. the attack happened at his private residents. we'll get them when we come back hey lily, i need a new wireless plan for my business, but all my employees need something different. oh, we can help with that. okay, imagine this... your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown, your sales rep lisa has to send some files, asap! so basically i can pick the right plan for each employee... yeah i should've just led with that... with at&t business... you can pick the best plan for each employee and only pay for the features they need.

good morning check the futures right now. we're seeing some green arrows, marginally green nasdaq hit a new high yesterday to put it up 60 points the dow was on a relevant basis much weaker than the other indices yesterday. that's up about 18 points today. and then the s&p is up about 5 today the federal reserve, as we eluded to earlier, is due to release minutes from the policy meeting that was held last month. ylan mui joins us now. ylan, details of what to expect.

i just opened another paper. there are people in caanes and sun valley melissa and i are in times square you are in englewood have you thought about that? >> jackson hole is happening this year, so there you go there's big trips to come. >> you're ready for anything when i talk to you have a whole report planned but i like -- i think it's better >> it is better. >> i'll come back around to jackson hole >> come back around, we'll talk about caanes fed chair jay powell has already acknowledged that officials began talking about talking about tape perfecting at the june meeting today we may get to find out how that discussion went down. since the meeting we've heard a number of officials say they want to start reducing asset purchases sooner rather than later including fed governor christopher waller and patrick

harker investors have a lot of questions including at what rate will they reduce the balance sheet? what's the composition of purchases? will they stop buying mbss as the fed needs to stop tapering before it starts raising rate there's also the issue of the dots investors are looking for color into how the economic forecast is moving. they pointed to the employment population ratio at another key metric in the fed decision remember, the discussion did come before that blowout june jobs report. we could hear powell react to that when he testifies in front of congress next week. then there's an fomc meeting the biggie, the fed's annual conference in jackson hole at the end of august. so, guys, if there are no clues for investors in the minutes, fed officials will have plenty of chances to signal their intentions in the coming weeks

back over to you all. >> thanks, ylan. the bond markets working for the fed. no one thinks they're behind the curve when the 10-year goes down to 1.3 on its own. they're in a good place, i think. >> right it will be interesting to see how they talk about inflation and how they talk about bond yields inside the discussion during that june meeting powell had said pretty squarely during his press conference that the focus of the fed is not on rate hikes right now the dot plot did show expectations pulled forward. did it come up and they tried to vera way from it it did they studiously steer away from it >> all right thanks, ylan >> here's a didi global report they saw the stock close down nearly 20% new this morning, didi has been removed from china's we chat and

ali pay apps how should executives and investors deal with this we have the former obama administration official, cnbc contributor and james mcgregor gentlemen, great to have you with us. i'll kick it off with you. we first saw the sort of crackdown happen with the a ant ipo recently do you think this is just a continuation of what was going on or if anything marks a change and how china is operating with its own tech companies >> good morning, melissa thanks for having me i think it's definitely a continuation but there are some differences here from didi and what we're learning is that china believes cross border data security is a national data security

they deemed this an infrastructure operator. by that they are concerned how didi is securing data, particularly when they list in the u.s. they were worried about this new law that was holdsing forms companies accountable act. u.s. regulators have greater access to review chinese companies. at 90% market share, didi has a lot of chinese riders, including some government officials. china, a big brother surveillance state, no surprise, is concerned what nefarious things could happen to that data if it finds itself in the wrong hands. this one is a little bit different than ant yes, a continuation of a crackdown on its big tech sector >> some of the controversy, james, surrounding this particular situation is a report in the journal yesterday saying didi was somehow warned by regulators to possibly delay the

ipo. you know, a warning from china or suggestion? it doesn't feel like china would suggest or a suggestion is stronger than a suggestion i'm wondering what your take on that notion is, that china warned didi to delay the ipo >> the party and the government over the past couple years just showing who's the boss, whether it's on basic private enterprise and telling them they've got, you know, to adhere more to what the party says are these big tech platforms that have kind of gotten too big for their britches for the party they have a lot of power this is about data security. about personal information protection it's what they call a data southern at this and be they're looking at data as a future economic driver. this is really a strong shock. this is about national security. this is the first time they've launched a national security

investigation against one of these big tech companies it's also about keeping ipos closer to home i think they want companies listing in hong kong instead of the u.s. they're pushing that. >> yeah. it seems dewardric that is a common ground between the u.s. and china without the u.s., excuse me, passing legislation requiring chinese companies to basically open up their books. it seems like both countries are saying, you know what, china, it's going to be difficult for your companies to be here. you're going to have to make information available to us. if you don't like it, go back home china saying, stay here. >> yeah. i think that's right >> melissa, as you well know, there's been a lot of ipos here in the u.s. over the last seven months i think many people were surprised by the appetite that u.s. investors had for didi. but i think the chinese are definitely going to make it more

difficult for their companies to list here in new york and already put in place additional controls that if you're a critical information infrastructure, you have to get these controls from the industry there are steps being put in place that these companies will have to do before they list. i think that could make it very difficult. >> do you think the ipo pipeline of china companies waiting for u.s. listing, i think there are 30 or so in the wings, is that frozen >> i think it's certainly going to be delayed and i suspect, melissa, you're going to see some pre-ipo valuations fluctuate a bit. i think if they go through these steps and the chinese government is laying out these steps now, we will see some companies but it's not going to be as swift as the first seven months of the

year. >> james, from the perspective of an american company operating in china, is there something they should be concerned about in terms of their own intellectual property here or data >> well, what american companies -- foreign companies in china have been dealing with this for years their data is brought to heel. they brought it on shore they follow the regulations. they behave not the way the government wants them to look what apple did. apple on all its chinese user data not only kept it in china but handed it over to a state enterprise in glajo so they could get it off of their own hands. foreign companies have been brought to heel long ago >> james and dewardric, thank you. >> we have a winner in the democratic primary race.

that means new york city mayor later, don't miss our exclusive interview with verizon ceo hans vestberg. you can watch or listen to this live any time on the cnbc app.

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brooklyn borough president eric adams has won the primary he promised to strike the right balance between ending crime adams will be the prohibitive favorite in the general election as democrats outnumber republicans 7-1 in new york city. >> no way. and a covid milestone for the state of new jersey. reported zero new covid deaths yesterday for the first time in nearly a year and a half the state is reporting daily case counts below 200 and hospitalizations below 300 how did rudy ever get elected?

you know what, a lot of people talking about rudy what the town looks like what it looks like when rudy took over. >> that's how it happens we want a change. >> a cop i don't think de blasio was ever a cop. >> no. >> coming up, how to play the rapidly growing space industry we're going to talk to an analyst who just issued a rare double downgrade double secret probation for virgin galactic. don't go anywhere. you're watching "squawk box" on cnbc don't forget to subscribe to our podcast. you'll get interviews, original content, and behind-the-scenes access look for us on apple podcasts or on your favorite pcaodst app and subscribe to "squawk pod" today. an online food delivery service. business was steady, until... gogo-foodco. go check it out. whaatt?!

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just four days away from sir richard branson virgin galactic flight joining us, our guest says the shares may have gone too far too fast a rating on a $41 price target so, ron, do you ever look around and say, i was covering boeing aerospace. >> you think about what's going on in space markets today. the commercial space is a new

market it came into being in the last 10 years, largely because of the good work at spacex. the only publicly traded company is virgin galactic there is soon to be many more. i could give you a list of 6 or 7 companies that could be coming soon virgin galactic isn't the only one out there. broadly, joe, it is a very innovative time. all kinds of innovation. it is a solid time to be covering this space. >> i don't think your view about the long term tactics will change you just pointed out the faa go

ahead that it serves above 55 and there would be other enter rants the risks -- we don't even need to go into when the risks are. something this new and risky has to entail some risks so you figure $41 is your price target >> we have a very disciplined way we think about vish begin galactic we have a bull case, bear case and base case. when different milestones happen for the company. we are looking at the space tourism and this is the

suborbital space tourism beyond that point to point, hyper sonic travel weweight them a third, a third, a third. just put some metrics on it. it is trading at 90 times of ev to sales we looked at all the analysts to the stock. we went soaring past this is by in means, the company is doing something wrong

the shares went kind of galactic >> we need to point that out is when do you say the tourism in the orbital. that is something virgin and spacex and blue origin have talked about there is all kinds of stuff going on in the launch business, cube stats earth imagery. just to give you a feel of why we are seeing all of this interest in the last decade, the cost to

get one kill owe gram in orbit went from about $20,000 to $2,000 that order of magnitude dropped really changes the game and opens the market in all kinds of business models. >> we need you there is a lot happening near term in the next month or so coming up talking about investing in china and why he says yesterday's moves against didiwas a move against capalit and more possible big deals. you are watching "squawk box."

opec sending oil prices on a wild ride. gasoline prices likely going up too. what stocks should be listed in your portfolio beijing with the crack down. we have the latest from china. futures are slightly higher there. we'll get you caught up on the

stories. we'll get you caught up this morning as the second hour of "squawk box" begins right now. good morning welcome to "squawk box." i'm here to tell you andrew and becky are off today. you just said the futures are higher let's look at them and then i'm going to let you take it away with the headlines the futures are higher nasdaq hit a new high yesterday. >> all three majors are at or near a record high >> china's central bank calling

for a shut down of software services the statement issued also warned institutions against crypto. following the call on severe crack down of mining and trading. we'll have much more talk on this later this hour >> how to combat the growing threat of cyber threats on software company president biden calling this a national and security priority meanwhile, bloomberg reports hackers from the russian government group breached the systems of the republican national committee last week in a statement, saying in part, none of its data was accessed.

authentic brands barneys, arrow postal, forever 21 signed ipo papers and a valuation of $10 billion. >> time for a chick check. good morning, dom. >> good morning. if you take a look at what's happening so far, you mention the idea that s&p 500 win was snapped yesterday. we did hit this record high if you look at the dow industrial, they are all relatively close on the year to day basis. we are doing a lot of work here. near record highs as you point out for those indices. we are watching the chinese indices. two etfs that track the market in terms of the shares are kweb,

which is the crane shares, etf which is the big calm services that's the orange line from the highs earlier, we are now down roughly 40% from those big internet companies that track those. so a bigger drop for the overall market in the internet side versus the overall hong kong listed market. in the pre-market trade, showing signs of instability alibaba, pinduoduo and jd are now a fraction higher in the trade so far up nearly 2% keep an eye on those also what's happening, yesterday, coming to the cyber security stocks. you talked about the cozy bear

hack crowdstrike, for theinet, cl cloudflare keep an eye on those names i'll send things back to you >> it is interesting in terms of looking at the internet stocks >> if you had sold the k web, you would have missed that massive run and saved yourself from the climbs recently you would be higher on the index if you sold then >> if you take a look at the chart, you are almost about flat from where you were. so you miss the run. that tells you a little about the sentiment trade driving. these names you are talking

about. they are listed here and in hong kong so it is not like we are talking the a shares listed in china so there is a very interesting dynamic. it could be some of these names or it could be those working towards more local exposure. some of these that have boots on the ground and might try to find variants and discrepancies still a huge move to the down side you mention the market at regard highs here we are talking the down side of things, it is something to watch. >> how early is too early to promow golf channel type things? >> i don't thinks it ever too early. we've spoken about this. we are company men, nbc golf

channel. >> tomorrow. a week from tomorrow british open >> a week from tomorrow, you are talking about that on tv >> yes, i am i don't care 1:30 a.m. to 4:00 a.m. on the golf channel and then on the regular nbc, that's a cool place, it didn't get me yesterday it sort of went right by me. >> you want to see dechambeau and quarterback of the football team they are good. athletes but they didn't do it for me >> here is what i would say. i would say gradually, i paid attention to a lot in the first one, which is the tiger versus philone.

almost a 300-feet elevation change >> i like to talk golf with dom. i get away with it by talking nbc and the golf channel >> i just roll my eyes >> right i will still sit here and mind my own business. >> speaking of promotions, it is this week that is the american celebrity am championship also broadcasted by nbc sports and npc golf channel and the winning team of dechambeau and rogers from last night will be playing in that event in lake tahoe.

so he's getting all the golf in. >> i played in that, dom it's embarrassing. >> as a celebrity. >> i did years ago. it was stable. horrible you have to get points when you get pars andbirdies. >> you are competing against steph curry. you think he'd be a little better golfer than me? talking saudi arabia and a look at the oil landscape and stocks that could be

impacted a quick news alert the container ship evergiven is finally continuing its journey after the owners reached a settlement one of the world's largest container ships that became wedged in the suez canal rece rece receiving compensation for losses more coming up next.

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we are on didiwatch this morning. we are learning didi's main app has been removed from china's messaging service and we pay users who had the app can still continue to use the ride share service. climbing higher and joining us now with ways with research and ever core. >> we've seen a tremendous run

and is that different from the leaders in the first half. this was also on the brink a lot of leaders and we think we are in a classically balanced demand capital is certainlyrestrained

we do think those would be direct more so than say, the integrated oils. but think it is much more the classical bull markets set upkeeping in mind we have the surge with opec plus >> what band is the sweet spot in your particular view? >> i think we are in it, to be honest i think what the market says on the equity side is stability and some certainty i think what the market also wants to see is that market balanced without the finger on the scale. almost 6 million barrels a day on the sidelines working down that supply would be positive for price. these stocks work between $55 to

$65 and we are above that. what you've got is a value proposition that acts as a return from high oil price comes back from share holders the way it did historically. >> in the form of dividends and buy backs? >> we've seen some adoption or a return to dividend growth. shell was out overnight with their quarterly update committing 20% to 30%. conocophillips had a similar update, at least 30% of operating cash flow to share holders. i think that is the mantra from the industry i think you've got some deleveraging that needs to happen still but the lion share will come back to share holders. >> speaking of debt, how hard

would it be to faithom the debts right now. should that be a concern they are not as rate sensitive with these cyclical variations to the market. i think you'll see some of these stocks being used in the higher rate environment that could play out. that has deleveraged the 2.5, three times with oil prices and slimmer balance sheets and that could play and as part of the

ask to weather these periods of volatility are these exposed and experiencing the winter in terms of looking back. this year, that might have changed. how much has it changed? >> those die hard. we've seen a lot of fun flows, certainly on the passive side. the index comes down quite a bit many of them don't need po pay attention. that doesn't hurt terribly

those index weights be it the s&p and russell start to rise again and that will bring more focus. you've got to remember, you are stuck in this esg energy transition and many will have to figure out well over time. cash is king that is a challenge. and those initial investors are up again >> thank you >> coming up, the china crack down for big tech. >> anthony scaramucci will join us

futures pointing to higher openings on this wednesday we'll be right back. >> announcer: time for today's aflac trivia question. there are six companies with a market cap of $1 trillion or more can you name the top billion dollar market cap company? the answer when cnbc's "squawk box" continues from her back surgery. aflac! let's see that one more time. ♪ ♪ (bleep) (wincing) oooh, right in the wallet! ouch! aflac! aflac would have paid jill cash directly to help with expenses health insurance doesn't cover. hold on, i think she's trying to give us a side-eye... because she can't turn her head! (laugh) get help with expenses health insurance doesn't cover. get to know us at aflac.com this is the gap, that opened up when everything shut down. ♪ but entrepreneurs never stopped. ♪ and found solutions that kept them going.

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question why is the number of hot tog buns and weiners always mismatched buns come in a pack of 10 and weiners come in packs of 8 heinz canada calling on the big weiner companies -- the big companies that sell weiners. they put these things in the teleprompter they call on the big weiner companies. so far more than 1,359 have signed on change.org many support the efforts to finally settle the score we understand exactly why they do it. >> it is obvious you've got to buy an extra pack of buns to cover the other two

weiners. >> then you have left over buns and you will never keep those buns for the next time because they will go bad in the meantime >> what were you doing on sunday at 11:00 >> feeding my children >> you weren't watching joey chestnut, the hero of the famous nathans. >> before they started wetting them the secret is the wetting. it slides down i didn't want to say that. he said he felt a little bloated the next day and thirsty i'm going to admit to something. i won money. >> you about et on this?

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china's crack down sending

shock waves. eunice yoon is with us >> china media have been reviewing the latest guidelines we got yesterday and focusing on one important point focusing to close loopholes on the structure tech companies have been using a very long time this is the variable entity structure that allowed chinese companies to get around regulation and foreignownershi end then put those profits in

the enter rite the same time, they've seen it as a way to commit the development it looks as though that is changing didi-is one of those and alibaba and the big names. facing more trouble today when it turns out the app is no longer in the super apps of wechat and ali pay they are not app stores but they act like that because of their super app status fined by the antitrust regulator. it just goes to show again some

of the pressure of a lot of these chinese tech companies when it comes to the regulatory environment here melissa. >> if the china's company said no more, would that effectively keep those companies from listing in the united states from some of the conversations i've had today there is still a relief they want to have some of these chinese companies. there is a relief they wouldn't totally choke off that avenue for chinese companies to be able to raise money and definitely put a whole lot of restrictions and challenges for companies

looking to raise funds in a place like new york. >> thank you as china's crack down on tech continues, business leaders react on how this might impact their connections. i said as business leaders look. you are a business leader. >> one of those weiners on the grill, joe i'm glad you see me as a business leader. the bottom line is they did not want didito go ipo regulators ask for a delay the minute they disobeyed, they went into the jack ma h&a category and then all comes to

ruse if you are trying to do conferences in abu dhabi or hong kong if there were smart americans, they would say this is a direct assault and a form of political terrorism the good news for the united states, this is a good sign the chinese might not be able to catch up with us. >> the journal has a little different take investors like the additional

risk because of that potential here is a quote. beijing's habitual regulatory ambiguity explains why didipushed ahead a wink and a nudge, for whatever reason this time, they worried about privacy and sharing data the cold war ramped up and they decided to throw down the gauntlet on this >> i actually think they are wrong on this situation. somebody like jack ma can

disappear. they are signaling the cold peace. i find it hard to believe they would wink and nudge that. >> this is a 5 to 10-year thing. there is instability going on unless you are a company like apple but then you have tim cook doing the john seena apology this is political stuff but very good news for the united states kind of restructuring in the us was bipartisan

i think the chinese are really mishandling this >> i'm thinking of an alibaba, you mentioned jack ma, with the headline, it got dragged oun lower as well. at any point, can you say some analysis is part of that or is that just intangible >> we are cautious on china but i think the broader point is will the u.s. still enter china? i think the answer is, yes, you can have 25% and take advantage

of that market we see so many over opportunities. we just launched the equipment owe fund we go further and further into 5 g. i think the political costs are a little too high. i still see other companies still for raying with push back it is nationally related to everything of the disavowed spirit of what goes on in your society. >> your crypto front is being whip sawed

do we need to see some of those from what it is already calling next winter? >> if we look back at what was 30 feet, i think people would have been happy. saying, yes, long term was positive where that is 66% renewable and the coal fired electric plants will continue to increase you see the expansion where we

just launched the etherium fund. china getting out of the way will be a long-term positive >> announcing the plan fee coin base is expensive it is like the days of old 3% and 4% of transaction >> fully disclosed, i do own a little bit of coin base. we are charging 75 basis points. we are charge fair rates now we'll make an adjustment with the adjustment on the etf.

i suspect these will go lower to slightly lower at the event. >> the ransom is bitcoin u.s. regulators you watch what happens. with how much is in the works, is it decentralized, i said the horse is out of a barn, you can't unscramble an e.g., is bitcoin above stall speed where it is too big to fail at this point. because it doesn't have a landing style. the decentralized feature of

bitcoin allows for a trillion dollars of capital to be effectively erased but you don't hear much buzz about it getting wiped out of capital and the banking system i think melissa is right bitcoin has reached that philosophy over 125 million users of bitcoin a day. you mentioned kathy wood she's predicting a billion users. many have been lost in the interly introduction if jp morgan is correct, there are

hundreds of billionaires in the world. we don't even have enough bitcoin for every billionaire to own one. my friend dan started out curious and now he owns it the more work you do on business r date coin, you understand that >> constant evaluations. i guess it was an exaggeration they said all right, i'm taking a couple zeros off how could you possibly do it and why wouldn't you have a smartphone with a fraction of bitcoin to maintain what you

work for to be able to use that and have it stable >> you and i happen to be billionaires and it is the note that gets us across town that's why the conference in 1944, he wanted a universal currency with the gamesmanship and policymakers bitcoin, if it scales and we think it will will be an effective value. remember, your time and energy will go into making your money the federal reserve is making your time of it. everybody in dollar nominated aspects did get silently taxed over the last year, the u.s.

government printed $460 billion in the first six months of 2021. can you see it things like bitcoin will offer the solution long term >> wide ranging. you are a business leader. >> i'm a business leader not a weiner >> leaders lead. you are a decider. thank you anthony. see you. >> coming up, media moguls gather and we find out if there are more mergers on the way. joining us for an interview. always catch us live on the cnbc app. we'll be right back. ward the sa, why keep it in different places? sofi is a one-stop shop for your finances

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welcome back to "squawk box. major averages at a record high closing on those gains taking a check, we saw the below

1.4% continuing at 1.35 oil on a roller coaster ride higher this morning by almost 2% brent up as well coming up, media moguls at the sun valley conference. there's the biggest participant. not that guy come on. and there is another one >> find out if more mergers are on the way next talking taxes and infrastructure spending. "squawk box" will be right back.

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>> back with julia joining us now with the latest >> joe, the conference is a little different mandatory vaccinations on site tests and no children invited this year. a lot of people were watching

shery redstone her company is seen as a target to be snapped up >> on the heels of the warner media deal saying he is eager to talk to them take a listen. >> i think it all willbe the industry starting to consolidating. brian is doing a good job with his company. jeff is doing a good job at universal. we are not done yet. the rise is a big win for producers like him >> enhances opportunities for

creators what you stated is about competition. for hopefully high quality content. because ultimately, their goal is subscribers >> it is not all deal talk attendees here will be listening to panels on climate change, justice reform and immigration >> that sounds like davos. that's all we need stick around joining us now, senior media and entertainment analyst. they almost closed down the patent office in 1850 because there were no more inventions to be made. there's no media mergers they've all been done, right >> no. it is not over it always feels like it is just

the beginning there is just a lot left i guess a lot of patents to be had. >> what about fox at this point? >> you are naming all the names. so fox can go either way they can either buy something. they have an amazing talent sheet. they've invested on sports and could easily be broken off you mention viacom, that value

is just far enough away. are they big enough to be scale player do they get holes and pieces or stay independent or buy something. there are loads of table net companies that are still around. >> there is comcast and disney i'm hoping we get great content. i still can't find anything to watch. >> that great news is that they found out too late we all know how great he is. there is a lot of heavy lifting,

that will deliver pretty quickly. the discovery doesn't change the dynamic. it still can be bought it can be bought by comcast or a faang company. they don't need to buy it will scale up it will go global. they can buy anything on a global basis a lot of the content if they buy anything else can be used across all assets they can leverage an acquisition than say amazon can with mgm >> thank you, we need to talk more about this. we are out of time thank you and julia will be back

with us if verizon ceo comes up in the next hour much more on sun valley in an interview. that is "squawk box" coming right back m that's the thing to do ♪ ♪ music ♪ when you see value in all directions, you add value in all directions. accenture. let there be change.

good morning tech stocks on the rise. we'll take a closer look at tesla ahead of the opening bell. visa said consumers spent more than $1 million on cryptocurrency on the first half of the year. plus known as summer camphor billionaires we'll take you to the allen and camp company in sun valley for a live interview of the ceo of

verizon. >> good morning, we are live now. we want to take a check on futures and how you are setting up this of course after yesterday setting up some of their gains. looking to build on the record high at the open at least. treasury yields watching it closely at the last level seen here 1.34 and change. take a look at crude oil prices that are higher around whether or not they would arrive at an agreement. trading at $74.5 brent crude is up as cell. 75.70 is a level. >>s it it's what

>> it's what >> higher. >> you do it all the time. it zwnt occur to you that your mic is open when you see your image on thescreen had they are expected to be dovish not worried they'll become a persistent trend >> new concerns. visa sent more than $1 million of crypto spent by consumers globally on goods and services in the first half of the year.

partners with circle and card holders to spend if you found a lot, it would be very small but then much more than in the last couple of years. >> talking the auction company accepting crypto at auction houses >> then there's el salvador. >> what we do here because of our evil take your pick >> in the massive ransom wear

attack we got that separately saying a hacker had reached a third party vendor the "new york times" reporting that hacker was likely the russian intelligence service meanwhile, all of this are evil activity getting a lot of attention yesterday. we got a statement from cyber security infrastructure. here is what they had to say about what they think is the overall hack which hit about 1,500 companies. we recognize all impacts may be small those noted in the statement company that was initially hit in this attack

here is what he said >> it appears to have caused minimal damage but we are gathering information. we have more to say about this in the next several days i'm getting more information >> meeting later today with top advisors to discuss what to do saying he'll have more to say in the coming days. more expected this morning after the response and allocation. >> what's the latest on the ransom wear and whether or not

they are cutting its price they wickly ratcheted it back. not clear who would pay that the software company that was hit and filtered out to their customers of a total of about 1,500 companies or would all of those have to negotiate with the hackers here talking restaurants and lawyers that don't even have an it department let alone a ransom wear and a lot of companies were dealing with this yesterday. >> let's get to phil lebeau.

>> looking at those shares, they tend to move higher. remember on friday morning, the company reported a little over 200,000 vehicles the exact order for vehicles those deliveries have been that point over the years where you see the stock movehigher

because you have people that are, a, maybe interested and buying ahead of the delivery financially report we are going to get those from tesla and the q 2 results. watch the shares and see if the trend holds over the last couple of years of stock what are some of the biggest issues for tesla is it the chip shortage and recall they've produced in china? that's what people want to see

people are looking for clues in different areas or how it is handling different things limited at best. the second half of the year. two plants, berlin and austin coming on line that is a big hurdle they are clearing >> can i ask you a question. that new audi is cool looking. the taycan is cool looking tesla has the model s with the

9/11, they change it can they change it, do you know? >> they've done it with the plaid with performance capabilities you saw the steering wheel went away what you are seeing are calls from let's see even more vehicles sure, they've changed it and tweaked it here and there. what you saw then is what you see now, which raises the question in the auto industry tesla will point out the good

looking vehicle. updating the vehicle will hold true >>. >> are you talking a dramatic change of exterior >> you could imagine how cool that would be at the next stage, model s. we look forward to that. >> people sit there and say, it is long in the tooth

that's the next plaid coming in. >> i put in the request with elan >> all right i'll text him right now. sfloo coming up, the ceo of verizon comes to us live from idaho. stay tedun you are watching "squawk box" on cnbc d became a new tradition. this is financial security. and lincoln financial solutions will help you get there as you plan, protect and retire.

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the most powerful names have gathered rejoining us now with a special guest. >> good morning to you. >> thank you for getting up with us early >> what you are focused on, i want to talk about the topic of this conference. there has always been so much m&a. >> right now, your main rival at&t has just been out of the

media business do you think that was a mistake? >> i think for every company, you need to go back to your core competents as a company. it is different for different companies. i wouldn't say it is generally wrong to do reporting in the first quarter. they have done a fantastic job you need to vest more. that is the service on top of that it made sense for us where are the potential opportunities for you in the

future it is a great customer base built on that network service. we use the networks, the platform and the brand all the way from our business to fixed access to the mobility we feel really good. what are the numbers you are seeing in terms of the up tick >> we have seen more and more and now more 5g phones coming

out. it is an enterprise solution for the fixed price access we have three business cases all of them are thought to happen now and into next year. it is an exciting time we see people coming back to urban places we see them coming back to stadiums that performance center earlier this year one reason is the ag performance center >> the question is of course the time you are doing the rollout and getting the ag devices into

people's hands and the return of the economy post covid-19. is the fact that consumers are getting out there more, does that mean they need these new devices more or the fact that they are trying to stream these devices at home? >> it is a combination of things right now. uses have changed. all of that in the right time. we have a lot of stores closed and things like that and how many people are using the network in our places.

we clearly see that traffic coming back they've just announced $3 million people. also mentioned in a different way. how do you respond and look at this battle for the 5g customer. >> we build that for the customer with the best experience. >> ultimately later this year, we are going to get the best performance in this market as we've always done and our customers have always had that what is it about the proposition

or what is key here? >> we have the best network. we use the distribution with disney plus, discovery plus. we use that together with our partners and create value together we are basically exclusive with all of these guys. i think if you talk to all of the ceos, this would be happy using our direct to consumer arm together with our best network >> disney and discovery which are here, are pleased with how those deals worked out are you expecting to add to any other deals? >> only those people can tell you. we've been cautious. it is our customers and they are

too much opportunity we need the right kind of content and brand value. we'll see in the market but definitely the right amount of people >> for those employees, now you are returning some of your employees. how is that going and how is the delta variant impacting your return to work >> we have businesses around the world. we haven't seen the big impacts yet. we are clearly now in the moment where we are back in place we are doing the three spaces and starting with some 30,000. it is a little more hybrid than before ultimately, right now, they decide when they are coming in we are not mandating when they are coming back. meetings or activities

over time with all of these things thank you so much for joining us guys, back to you. >> coming up, more fro it's another day. and anything could happen. founder. from theaters to streaming movies or it could be the day there's a cyberthreat. get ready for it all with an advanced network and managed services from comcast business. and get cybersecurity solutions that let you see everything on your network. plus an expert team looking ahead 24/7 to help prevent threats. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities.

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welcome back to "squawk box. we are watching the yield and the tenure we had been pretty solidly before we'll watch and see if that gets breached at today's session. >> is one going to be key? >> that's an amazing amount of

hurt we've got some news out not only involving our parent company comcast but also involving the next halloween this is about our streaming service on peacock, starting next year, theatrical releases will air on peacock. appearing on peacock no later than four months after their premier. sending movies to warner's hbo will expire this year and they

will also start creating movies exclusively for peacock. halloween. here is the deal halloween kills comes out october 15 the last reboot in 2018 which brought back jam ji lee did $250 million globally the largest horror movie starring a woman ever. she's back at the end of that movie, miker meyers. he's back. the actor from the 70s movie, you can't get him back michael meyers is back in a basement, house is on fire. jamie lee curtis says, he's gonna die. the fire department shows up

she goes no, no. don't put it out they put out the fire. you know what that means he got out he got out she warned them do not put this fire out >> october 15, that comes out. >> you are not a halloween fan >> i don't feel i can get too engaged with halloween ii. it is not two. it's like halloween 18 the latest one is when they brought jamie lee back >> we are losing altitude on the futures because of lowering yields we are watching that >> if yields get too low, that will be something bad. >> coming up, some knew numbers

and reaction from mick mulvaney talking about does the infrastructure bill ever get done reaction from president trump. big following from a lot of viewers. "squawk box" will be right back.

president biden's proposal for taxing the wealthy will make capital gains tax the highest in the world. more now, you are like a tax a fish nad owe >> i am the tax man. president biden proposed taxing capital gains to the same level giving the u.s. the highest capital tax gain to the highest in the world for 43.4% on income over $1 million. according to the tax foundation, state taxes would add an average five percentage points to the federal bringing the combined

rate to 48.4% that would be the highest rate than anywhere in the world passing denmark, chile. u.s. would rank highest in the world for dividend tax combined corporate and dividend tax rate would be over 65% that beats number two ranked ireland and south korea. saying higher rates on share holders reduce the return to savings and higher tax on corporations raise the cost of investment reducing savings and investment not to mention, many countries moving toward zero capital gains taxes. this would be a competitive

disadvantage for investors if it happens. >> there's a lot of moving parts. joining us now to talk about serving in the trump cabinet there are some, your former colleague, and i've talked about it before. to compete globally, we want our corporations to be anytime bell and able to invest in customers. that is not going tohappen

>> just forming the basis. you see one of those countries wanting to get rid of the compensation because of where you are losing at it you have seen they are bought because they are winning at it fur losing the competition, there is two ques to respond you are getting better the biden administration is taking this. >> when you hear the term race to the bottom. when you hear we had one of our friends on yesterday saying it is going to stop companies from hiding the ball. going places where they can rig the system, avoid paying their fair share it is a race to the bottom all of those points can be made. those people are sitting there

nodding. you are making a point that it is a slam dunk, not a good idea? >> it was a good interview but i think people have not expanded it to the next logical discussion you've heard adding the various state and local taxes to the federal tax. there is a lot of progressives who really don't like the fact that we have tax competition in this country they don't think it is fair florida doesn't have an income tax or tennessee doesn't have an income tax they'll use the same language about the race to the bottom it is important to call this out to what it is. it is a way to discourage the competition. competition has always served this nation well i do worry about this language becoming a part of the narrative

it applies as heavily. >> are we going to do an infrastructure bill. addressing to you, is mitch mcconnell going to do the bill with nancy pelosi given what both sides will be saying? i think they would be bipartisan in a truly infrastructure bill over the course of the next six months if that were to happen. if pelosi is serious about the threat on the bill and also on the partisan reconciliation bill, if she's serious about that, it is always a deal to be

had. nancy is a great negotiator. she's really good at what she does she's under different pressure she's more under the control of the far left wing. the primaries play such a huge role in these house races. that margin is so narrow she probably listens to the progressive wing more than she wants to if they are holding the feet on the stand alone vote on the bipartisan bill, you may not see it >> you envision and we heard josh and a lot of people in the house are behind this $1.2 -- is it really a trillion it is, so i'm not miss speaking. it is not all new money. it is a lot. do you really see those 10

republicans just being herded in all of those nice bipartisan types. do you see them walking into that, knowing what is going to come afterwards? >> that's the question the answer is, no. i don't see them blindly walking into that. they would choose to do it over and have a press conference that presser. >> where they told the truth >> that's exactly right

i don't think they would need and will be reconcilable >> too bad they need some if democrats really wanted to do that if they cared about roads and bridges, they wouldn't just try to biggie back with that and every wish mick, thank you. good to have you on. >> we have been showing you the 10-year yield. we did break below that level in just the past few moments. we are watching that very closely. getting jim cramer's take. we are seeing futures dip a little lower

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>> welcome back to "squawk box" a little weaker and the strange things we are seeing in the

10-year and the yield curve might account for the dow that is red and where that is -- >> higher. getting down to the new york stock exchange the rest of the world thinks they can make money buying our bonds and not worry too much about valuations and currency. you are a stock guy but one, three, jim one, three >> a lot of people thinking it shouldn't be it should be a four if there is any sort of real adjustment. no this is where european people should buy this is the perception that they have no money. they don't want to invest in

their country. i think it is them doing the buying some people think a lot of commodities have peaked here maybe inflation, it turned out tobe transitory. there is a reason to own bonds, i think these are awful. i'm trying to get a mortgage for the sake of a mortgage >> exactly if you got a lot of money and you are in japan and you had been in japanese paper the yield is so much greater, it should make sense the liquid let's all out it is a good place to park

we are in a crummy currency. euro is in a bad currency. they are doing terrible. it is time to buy our stuff. >> so, jim, we are not in sun valley or cannes or any premier with spike lee >> there is a ticker tape parade for first responders, so we are not completely out of it what i wouldn't do to have those conversations now but instead. i'm talking to you >> what could come out of

smaller deals, you expect any big things to come out of this >> it is incredible. they are like brian this morning. billionaires in tv as opposed to billionaires from scaramucci there are a lot of billionaires. >> if he calls the pioneer to get a table. they'll go, what is your company? verizon and they are like, what, you do pipes you've got to be in content. it is not sexy enough to be in 5g that delivers the content. >> what is he going to say in we are done and we'll have an

amazing labor day party at our house. we are done. he can't say he's done he has to say he's doing things because he's got a pulse >> he's got to be the bell of the ball >> my gosh plus he's nice >> he is nice. he's awesome >> he's really nice. >> keep thinking about these big issues we're going to try and figure out the ten-year somehow, i don't know how. >> jealousy and the ten-year, i'm working on those two today. >> see you later. >> 40 minutes from the open of the market the story is in bonds. the yield and the ten-year nearing a key level 1.3. let's bring in lisa ericsson and our own rick santelli. rick, what do you make of this move >> you know, forget the logic of it, forget looking at interest rates as a risk/reward mechanism, and let's just look at the facts you know, we zoomed up to 175

yield because of the reopening trade. we see that there's supply chain issues and glitches. gl growth always trumps inflation, especially considering how we went into recession and how the reopening may have had bigger issues than we anticipated so the growth side is moving down in expectations, and the stagflation equation is moving up more data is moderated, commodity prices have come down, but things like crv and other aggregate measurements still show break evens, still show sticky inflation services might be even stickier, but when you put this all together and then yesterday the culminating factor, in my opinion, ism services, jobs component index actually dipped below 50, okay this is making many a bit ner nervous. so the reality is we do have all the buying joe and cramer we're talking, then add in all these

new turnstiles of the reflation trade getting tossed out and the new mantra being 1% here we come in europe, yield curves, whether it's our 2s to 10s, 5s to 30s, it's all happening on the european curves as well, and the european banks, the rotation of everybody becoming much more diversified, their banks are screaming higher their currency won't keep up with the dollar. but their banks look pretty good dividends, all of this is really, i think,conspiring to keep sovereigns under pressure here, and i think it's a dynamic that's going to be around for the next three to four weeks >> right lisa, the stock market reaction to this, no surprise we've seen weakness and softness in the banks premarket, and with questions about growth in the economy, growth stocks and tech stocks usually catch a bid is this how you want to be positioned is this the reality of the market >> well, we really are taking a

more balanced approach right now. certainly the bond yields dropping are a sign we need to continue to look at. the reason we have a more balanced posture is you do continue to have good overall economic growth figures. while we have had some individual indicators come in a little bit soft, if you look at a broad array of indicators, what we continue to see is healthy absolute levels on most of those factors as well as continuing trend in growth that really is supportive of a continuing reopening story, and the reason why we in addition to that, we've continued to emphasize some of the more secular growth stories is to your point, there are some mixed signals on the horizon so we really feel like having a little bit of diversification in both camps makes sense. >> the bank's really pressuring dow futures right now in terms of impact. rick, what are the key levels to watch here during the session? >> oh, that's the easy part.

2012, 2016, they're not the double bottom anymore post-covid 50 basis points is the all time low. we want to pay attention to the whole zone of 1.35% to around 1.37%, and if we close the week below that zone, i think a quick retest of 1% is in the cards as we flush out many, many months of positions looking for even higher yields than we attributed ultimately when we started to dip under that 165 level >> so basically you're saying by the end of the week, if we don't move higher by five to seven basis points or so, we're doing a quick test of one? >> yes, that's the way it looks on the charts, and that's the way it sounds around the water cooler >> lisa, a test of one sounds like that would be real trouble for the stock market there's this push/push dynamic 1%, wla hat does it say about

growth prospects and what does it do in terms of a tailwind for tech stocks? >> i think if we get a low test on the ten-year yield, that's going to favor the secular growth themes as well as tech stocks if we break some of these key resistance levels that could lead to further action within the bond market. and really, ultimately, if you just pull back and say what's the ultimate story, it is that we've got a dichotomy going on equities are telling us that they're positive on forward pros prospects. we've had a great run through 2020 and through 2021 year-to-date and yet the bond yields are showing skepticism. what we're really seeing with this nominal yield action is really real rates dropping to fairly low levels, and again, to your point, melissa, that's really showing some, you know,

nervousness about really what levels of growth can be going forward in the economy. >> all right, lisa, rick, thank you, appreciate it coming up, round two has a look at this morning's biggest movers "squawk box" will be right back. have a black owner. that needs to change. so, i did something. i created a black business accelerator at amazon. and now we have a program that's dedicated to making tomorrow a better day for black businesses. ♪ ♪ i am tiffany. and this is just the beginning. ♪ ♪

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just about a half hour until the opening bell on wall street.

dom >> that last conversation you guys had about interest rates got me thinking what's happening right now in the investment grade corporate bond market and to some of those points, there's been a massive move higher in prices for some of those investment grade corporate bonds. this etf, it's up roughly 5% from the lows we saw earlier this year. that's a big move when it comes to investment grade corporate credit the bond market on credit treasuries and investment grade doing pretty well so far watch what's happening premarket in the energy sector a couple of big movers, names like devon energy, diamondback bouncing back after yesterday's selloff. energy is still in focus with those prices hovering near multiyear highs for oil. and then the top tickers that were most searched on cnbc.com in yesterday's trading session are some of the ones we're watching this morning as well. the 10-year treasury, note yield, amazon, apple, and amc

entertainment, some of the most popular search tickers on cnbc.com i'll send things back over to you. >> thank you so much, dom chu. maybe it's good. maybe inflation really is transitory. >> not good for the bank stocks, that's for sure. down almost 3% on the week so far. >> make sure you join us it's happening again tomorrow, it's a wonderful think "squawk on the street" is next >> good wednesday morning, and welcome to "squawk on the street." i'm david faber along with jim cramer we're live from the new york stock exchange carl has the morning off let's give you a look at futures. we get ready to start trading about a half hour from now nasdaq was stronger yesterday, but jooverall not a great day f the markets. our road map this morning starts where we were focussed yesterday in part, a lot of those chinese stocks, didi