57 points. take a look at the ten-year as well that's the one that caused so much consternation last week with the yield falling all the way down to 1.26%. right now sitting at 1.344%. we'll have a lot to talk about tomorrow when we look at what's going to be happening this week. we've got earnings coming in so we'll see you back here then. right now it's time for "squawk on the street. bye bye. good monday morning, welcome to "squawk on the street." i'm i'm carl quintanilla futures are mixed with more worries about global growth. we've got q2 earnings this season, the fed chair powell on the hill cpi this week, retail sales and more our road map begins with china's crackdown continues. bite dance shelves its ipo, didi removes additional apps and now a report that tencent is being ordered to give up its music label exclusivity. >> one small step for man, one

giant leap for mankind maybe that's a little bit of an overstatement, but after nearly 17 years of development, virgin galactic and of course the guy behind it, billionaire richard branson reaches space. >> and the ftc reportedly launching an investigation into amazon's nearly $8.5 billion bid to acquire mgm studios we're going to break it all down china's going to start us off this morning, a new piece in the journal detailing how bite dance shelved its ipo plans after chinese regulators warned of data security risks. didi was the big story last week i was out last week, i'm sure you talked about why they're going after their giants in this way. >> i do think this is, again, a belief that the billionaires must be stopped. the creation of great wealth is not right for the communists, and that american companies that are investing may be making mistakes david, i don't think they want us there they used to

>> well, i don't know. >> they want our capital, but they don't want us to be powerful. >> yeah, i mean, listen, you have chinese companies that obviously have made a habit of becoming public here for obvious reasons, our deep capital markets, the ability to track global capital, not just capital that is domestic which is largely the place with any of the listings that would take place in shanghai or even hong kong. in the case of bite dance, for example, that heard these regulations and said we're not going to move, they don't need capital as much as opposed to a didi bite dance is making money they can use their growth, they can use their own cash flow to finance their own growth, which is enormous, and don't forget, there was a time we were talking about the u.s. government closing down tiktok, which of course is their key business. >> remember when general atlantic was putting a deal together, and remember oracle was involved i just think that the chinese have -- the chinese government, president xi has made a point

which president biden has not addressed of, look, we are willing to ruin your own deals you can go buy didi, and then we're just going to hurt ya, and nothing happens. and it's like, okay, well, that's just the stock market this president is uniquely not involved with the stock market i think that what happened was a travesty, a giant deal that's immediately shot down. we don't know anything we don't know the roles of the brokers. we don't know the roles of the principals we don't know the roles of the investors. someone was told that if you do this deal, we're going to crack down we didn't know what crack down meant. >> it's not clear it got fully to the underwriters and they understand exactly what the risk was. they certainly didn't amend the filing to show that there was perhaps concern from the cyberregulation front in china, j jim. >> that's a canard there is no agency here that's keeping track. >> no.

>> no, we're ho peless we don't keep track because it doesn't make any sense what do we keep track of >> we're going to talk a lot about tech regulation in china, the executive orders of the white house, ftc amazon, but does that matter when you've got a reflation trade that is weakening the way it >> look, i think that everything is going everything is going powell's way, and people keep talking about a high gdp, i don't care the only thing that is not working for powell is -- and we don't talk about this enough -- is the non-vaccination of areas that are major industrial areas so that there will be the absentees have really hurt the inflation story. >> you mean globally or for example, there's a big piece in the kansas city star today about missouri, lowest adult vaccination rate in the country, now the second highest growth in new cases. is that what you mean by sort of pivot points that are under pressure from covid, going to affect the rest of the economy >> these are right to work states where a lot of industrial

activity, including missouri particularly is brought to, and you're going to see absences, and once again you're going to see -- this is all supply chain. they don't talk about it specifically, but there are just people who don't show to work, either because they don't want to get covid or they have the good unemployment benefits or finally, of course, the people who ideologically opposed to the. >> vaccine. >> ideologically opposed to the vaccine. i had dr. topal on friday, a renowned doctor and he was saying he just simply can't believe that people are willing to get the variant like -- because we have an oversupply of doses, and he just couldn't understand. i mean, going -- if you went to the doctor, if you had a doctor, a physician and the physician was saying you got to take the vaccine, it's not ideological. >> it shouldn't be, but

unfortunately it's become a politicized issue. >> how'd that happen >> i don't know, jim it's a blend of certain wings of media in this country, all around the world, actually, and also this ongoing suspicion about, for example, now the notion that pfizer is going to ask regulators about a booster. >> even though dr. topal says there's no evidence that it's necessary. now people are dredging up israel >> israel was early with vaccination, they do have some data that the efficacy wanes over time. you heard from meg tirrell the risk of serious illness is still very small if you've been vaccinated these will all be issues we're moving forward the economy is moving forward fairly rapid >> but it's slow it's part of the supply chain problem. we don't talk about it. >> heading into a season where we like supply, right? back to school, holiday. >> these numbers, look, the death rate is low, and that's our great advantage, but these are small base that we just got this weekend, but so it was a small base in march of 2020.

i mean, come on. now 50 of the country is vaccinated 60% have one shot. it's not enough. >> no, it's not enough, but i think we've got to keep -- you've got to keep your eye on what it is we're trying to prevent, which is people dying, and that has been very successful. >> we're trying to prevent people from getting ill. >> yeah, of course, but people get ill from other things all the time too. >> if we have something that helps them, we don't know what long covid is. we don't know what the tail of this thing is. if they didn't have an emergency use, if they had it so it would approved, do you think the philadelphia phillies would have less than 75% -- these guys are being paid millions of dollars, and they got covid i mean, the organization of the phi phillies, how can they not say you have to be vaccinated? how can they not say that? >> cases are rises in i think 69 countries, but david, there's always the possibility that a therapeutic is going to hold out

some promise for the fall. >> i think it's important. we talked about it on friday, of course, because we got data from india, actually, for what is a drug we've talked about a lot here, of course the merck antiviral that conceivably when they're done with their phase three trials, perhaps as soon as the fall, they will submit for emergency use. and it will be effective in the early stages of the virus against all forms of it, which is very important, guys. so i don't know. we'll see. jim, i think when it comes to the broader market, it's as much going to be -- more of a focus on earnings, on the continued questions about inflation, and how transitory it is the journal today writing a story about a lot of the different factors over the last 10, 15, 20 years that have contributed to disinflation that are waning it will be that debate we'll be looking thaat that ten-year these case numbers are going to be in the background for a long

time. >> isn't the ten-year telling you the concerns jim is bringing up >> no, i'm not sure it i'm not sure it is we had a lot of people on last week, carl, who were talking about technical moves in the ten-year and the fact that you've got an enormous amount of buying from foreign. >> and it does matter. >> that move from let's call it 1.5 to 1.25 was not necessarily a reflection of real concern about a lack of growth. >> but housing prices have gone up so much, not obviously mortgage rates that they're going to become an issue p pg, which is a great company, i'm going to use that as my proxy, price increases, price increases. it's true that lumber went down. but there is still too much inflation in the system, but the inflation this time is slowing it finally got to where it's slowing. that's my point. >> not the last time we're going to discuss it, interesting way to start the morning, though richard branson, of course, and his virgin galactic crew reaching space yesterday a huge issue and actually now

we're starting to talk about some of the broader ramifications regarding china as the administrator said a few moments ago on "squawk," they're going to get more aggressive, and perhaps so will we. >> i think we have a lot going in the space race that we don't see. particularly with northrup, which is doing a lot of great stuff. it's exciting. david, it's exciting but what is it accomplishing what is it accomplishing >> it's giving people their, you know, so many have -- >> john glenn. >> so many people out there who are incredibly wealthy, it's the last thing, it's the last frontier for them. this will get them -- >> they own every house and every yacht. >> then they've got it all they've gone through -- i collect art, i collect wine. i've got my private plane. i got a few boats. i've got a lot of houses what's the one thing i haven't been able to do, go to space >> you know who's down, morgan

bre brennan. >> let's give to her live from new mexico for more on the historic weekend hey, m.b. >> reporter: i kind of don't see it the same way as you guys. i see this as a major milestone for commercial space and a moment we're still years away for mainstream space flight for everyday average human beings, but this represents a milestone towards that process, and of course we know from history just the last however many decades that we have seen a lot of innovations that have come out of space and the space economy that being said, this was a major milestone for commercial space after virgin galactic successfully completed that first fully crewed flight to the edge of space. richard branson was on board sunday morning the unity space plane took off from here it was carried up to 45,000 feet by its mothership for what was an air launch, unity powered its rocket engines, it accelerated climbing more than 53 miles above earth.

this was a trip that included several minutes of weightlessness, views of the earth. after the flight, i did ask him for whom this has been a lifelong dream whether he will make the trip again. >> i would love to go this afternoon if -- if the opportunity arose, but now as a proper citizen of virgin galactic, we've got hundreds of people who have signed up to go to space they need to take all the seats and i will come and bid them a wonderful voyage like we've had. >> speaking of those ticketholders of which there's about 600. 60 of them were on site for this flight yesterday a number of them telling me this was a very emotional moment for them one of those ticketholders, i would note, elon musk, who is not only another space billionaire that we talk about all the time but also a friend of branson and who was here as a

guest personally of him and his family that perhaps was not very well-known, but in terms of the future, ticket sales, because of the successful flight, the ceo michael colglazier telling me they are still on track for two more test flights. after the next one, they're going to open sales again. >> morgan, fabulous reporting. i wanted to know, one, where's boeing in all of this? why doesn't boeing have this and two, if we can go into space p go quickly, we used to have the concord. i used to ride to london very quickly. why can't we have a plane that goes to london not to see the team necessarily, but goes to london, and is there in an hour? if we can do this, why can't we go in an hour to london? >> reporter: that is the long-term bold thesis for a company like virgin galactic its tag line is the space line for earth right now it's about the sub orbital space tourism. longer term it wants to develop

supersonic and hypersonic flights, point to point travel around earth we are starting to see some of that development manifest again, whether it's athis company specifically as well as the other startups that are also focused on this space, jim. >> morgan brennan in truth or consequences, new mexico we'll talk to you a lot this morning. appreciate that. we'll take a look at the futures as we go to break. a lot to get to this morning including calls on chipotle, exxon. walmart news, disney re "squawk on the street" from re "squawk on the street" from the nyc in a moment. umm... what...its...um... you alright? [sigh] [ding] never settle with power e*trade. it has powerful, easy-to-use tools to help you find opportunities, 24/7 support when you need answers plus some of the lowest options and futures contract prices around. don't get mad. get e*trade and start trading today.

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welcome back we talk a lot about of course some of the bigger themes investors are watching whether it is inflation, how transitory it is, whether it's china and all the different tensions between that country and our own. but another one we're watching closely here, of course, is antitrust regulation we're increasing focus, at least. we got the executive order from president biden on friday. we heard about it. we've been reporting on it, and then we actually got to read at least a lot of the facts behind it, jim, on friday, and you know, it wasn't as focused on rails as some believed or even shipping, but broadly in its focus, of course, there is this idea of trying to enhance competition as a result of cracking down on the enormous platforms and the power of some of our biggest companies, and then we're seeing the ftc, especially with tech, probably

with health care under lina khan becoming more of an issue as well and that's the case this morning, and we also do have a deal that was called off by berk berkshire. >> norfolk southern's stock was down 16. people genuinely believe that maybe the government would set the rates. now, that's not going to happen. what i did think happened and i think it's going to last a long time, and david, it's going to affect your reporting. you know how jpmorgan and bank of america bumped up against the 10% and couldn't do any more deals? >> yes the deposit rule, yes. >> i now feel that we might be in a moment where they might say no more deals for companies that are x. >> that would be odd because more likely you can expect if you are a big company and you are going to try and announce something that even as the tinge of antitrust concern that you have to get yourself ready for a very long review period and the possibility of having to go to court against the u.s. government. >> david, the lawyers --

>> the law is not going to change, the law may be on your side if the ftc or the doj is overreaching. >> but it doesn't matter but david, the lawyers should be saying, listen, guys, this used to be 80%. now it has to be 20% they have to do that >> well, i think it becomes more of a question as to time and how much time you want to take to get a deal done and the risk that you will have to go to court to try to force a deal through. the u.s. government of course doesn't want to be in a position as well going to court where there really is doubt about its ability to win it's going to try basically to jaw jawbone, to square, and to make sure these deals don't get announced in the first place to your point some companies are going to feel very strongly about getting a potential transaction done that they feel does not have real a antitrust implications. >> it's impossible for me to think that facebook could buy anybody. >> facebook, apple, which has never bought anybody to begin with, amazon it's hard to imagine at this point. amazon is getting any number of

different outlets of reporting -- >> they're not buying anybody. >> -- how stringent the ftc review of this mgm deal would be there would certainly be no basis of opposing it on a pure competitive standpoint in terms of film production, but it does go to this larger question of amazon and its overall market power. >> look, they could bring a case just to show we'll bring cases i mean, i know that you shouldn't bring flrivolous cases frivolous cases are brought every day in america ftc could come up with a whole new reasoning. i think that we have to get used to a 32-year-old -- i don't mean to -- >> you're not, you're not. she's very young. >> new theories. remember, there are set theories for antitrust. i mean, i took the class and i got the great call from the professor to go buy the calls on gulf oil that one's going to go through, i said that's impossible, how can that go through. because they're looking the other way. these guys are not looking the other way. they're looking at it.

lina is going to find, i think she's going to find a new thesis >> you need new law. >> the street doesn't seem to worry, jim, because eight megacap tech names are half of the s&p gains since may. >> that's a really good point. >> they don't need to acquire. they've engulfed and devoured. >> maybe she's going to look at the meme stocks. >> well, that amc merger is going to be really tough that's going to be anticompetitive. >> we know that -- we heard that amc might be merging with gamestop >> people are going -- suddenly on twitter they asked me why can't i be creative like david i don't know the answer. >> it's called investment banking. >> yeah. >> right >> we'll take a break here we'll get cramer's mad dash and the enoping bell on this monday. don't go anywhere.

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of reflects the ongoing concerns about delta variants and slowing growth around the world as the dow and the s&p are relatively weak nasdaq's going to benefit from a nus.n open in just about sev en don't go away.

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welcome back, we're going to do a mad dash and get you right to the opening bell. we spent a lot of time talking about exxon mobil. this morning there's some research on it. >> sometimes you get this research, david, and you -- this is a hold by bmo, and you read it, and you want to buy the stock. you want to buy it aggressively. and that's what i feel this piece is calling it don't call it a comeback, and then it's a comeback story. it is. everything is going right for them the dividend is secure, the

foundational is terrific the board is moving forward for esg, which i like very much, and david, ten-year high some of the parts. i don't understand this because this is to me, a great story with the new board. >> they do talk about lots of positive momentum. >> no, it's like, wow, let me add it if this stock comes down, i want to use this as a reason to buy so initiating coverage of market is almost as if someone said at the organization, look, chevron's better >> a lot of ceos don't survive a vote like what happened there. woods seems likely too yeah, for now. >> i find that to be -- >> it's tough. >> that's a tough -- that's a board that could -- that could be a runaway board >> five new seats in a very short amount of time, but obviously the key one i'm talking about is the devastating loss >> they don't want to get them

out of energy. >> no. >> they once bought a computer captain. >> did they really exxon mobil? >> via deck was a company i used it was a computer -- it was like between the personal computer and the typewriter, vie deck i had a vie deck i had an exxon vie deck, fill her up with the premium. i mean, it was a diversification move the likes of which has to be one of the most stupid i've ever seen. >> yeah. >> but darren woods was not involved. >> much worse than carbon capture. >> it was like, wow, you know what, we want to prove we're not an energy so let's get into pcs. >> why don't you just call it distraction, jim, right? >> let's get into submarines i don't know i mean, shoot. there was no -- no synergy whatsoever, none nothing.

let's get into grapefruit. >> they're trying to smooth out the cycle, jim >> oh, yeah. whoa >> let's get to the opening bell here this morning at the big board. it's duke energy celebrating its 60th listing anniversary over at the nasdaq celebrating its recent listing, focused on -- jim, it's going to be a very big week of macro as you said, with powell on the hill, cpi tomorrow >> oh, jeez. >> we'll get retail sales on friday how much of this is going to steer things relative to bank earnings. >> cpi was the top of value because people just said value, i shouldn't call it. >> we talked about may 12th and all of that. >> may 12th was so important we need to see a reversal. we need to see some comedown of the cpi. ever since then it has been growth stock after growth stock. to the end we're snowflake frank sluten snowflake

people are talking about snowflake. i have mongo db on that's analytic, cloud analytic. >> i think we have to watch cpi as much as we have to watch jpmorgan i mean, jamie's going to come out and say this is really great, tom people have to go to work. we have a rock solid balance sheet, fortress, and trading wasn't that good, and frankly, we're just doing okay. >> well, banks have lagged in the broader market by about 400 basis points, for the quarter of q2 as this reflation trade began to get questioned, jim biut, overall s&p estimates are 60 plus year on year. >> i know, and the stock's had a come back the likes of which it took six months of move on friday and no one really knew why, and now they're giving it

up. >> citi, citi's interesting. >> new ceo. >> yes, james frazier took over at the beginning of the year the performance of citi versus all the others is far inferior. >> you're thinking the buyback's not working. >> i'm curious as to your thoughts about it. i hadn't noticed morgan stanley's market value is 30 billion above citi. now morgan stanley did a couple of fairly large acquisitions obviously e-trade. they also did the asset management firm there. >> citi was doing well, david, and then they made that mistake. >> right >> that was under the previous management where they sent the money. >> go ahead, say it, david tell viewers what they did. >> well, they incorrectly sent a payment. >> a couple, $10,000 >> half a bill or more then the firm that received it wouldn't send it back. over dinner one night i had somebody involved explain it to me and of course i can't recall all the permutations.

>> were you drinking or something? >> usually i like to drink at dinner. >> was it a french wine? >> no, i think it was my usual >> the point is it was not a great reflection on their systems on their internal controls. >> and the stock peaked -- >> the stock has issues in terms of what they're -- what the ethos is, what the -- where they fit, and she has to say here's what we're doing. >> that's such a great global f franchise. >> there's been a lot of report -- not reporting, opinion pieces lately that argue it's the place to work on the street. citi maybe it's because of their relatively liberal policy on remote perhaps. >> that's a great point, carl. they are trying to actually distinguish themselves as being the place that can attract more talent because we are going to be the hybrid model. we are not going to -- >> they had a guy ran for major. >> ray maguire no longer works there. >> i'm just saying he had -- >> he retired prior to running

for mayor. >> two days a week out of the office three days a week i'm running for mayor. >> no, no, i'm just saying. >> he's on the campaign trail. >> what were you saying? what was the point of that >> i don't know. >> i have no idea. >> i guess now that it's over, i can say ray momond's my prfrien >> back to what carl was saying, i think they are going to make it a distinguishing feature of their ability to try to attract talent versus jpmorgan, goldman sachs, a number of others who want their employees in five days a week. >> we're the slothful bank join ugs, we're slothful? >> no, we're flexible. >> you think jamie dimon thinks it's flexible? hey, i'm working today >> it's a grand experiment we'll see which comes out on top, but for thousand most of america's going hybrid most of corporate america is going hybrid. >> that's true >> which is, by the way, leading

the nasdaq right now or at least the ndx, right, pelpeloton's up there, zoom video. >> the trade is back, that's because of delta delta force. that's a delta story, david. >> but i think it also could be a hybrid story as this becomes more and more clear that as we have the back to work so to speak, it doesn't mean you're going back to the office five days a week. >> did you see the webex ads. >> dock yousign, i don't know iu guys have ever had anything notarized. people who are notaries, i have a notary down the block from me. i remember, you know, going to her and saying, listen, i need -- docusign has notary. that's something they're doing now, and then they're going to do a cloud so that you could basically get everything done on one page and docusign is making changes that are awesome zoom has yet to do beyond zoom >> you've been calling for the zoom 2.0 for a long time

>> and meanwhile, chuck robins, look, i watch the commercials on our network. maybe i'm not allowed to do that >> products from cisco, the webex ads i think are quite compelling. >> it ties into what we were discussing during the break, that is disney's flexible distribution model, "black widow" 80 million in north america. 60 of it from disney plus. >> it was fabulous and i watched it >> what did it cost? do you know? >> 30 bucks. >> the film's production budget, $30. >> we had the giant visio screen it was incredible -- hershey's kisses too it was incredibly exciting i loved watching it. 30 bucks was a total bargain we made popcorn. she's fabulous you know, my wife met her once -- >> don't you want to go to the movie theater to watch a big movie like that? >> no, that's the point.

you want to be home. you want to be home and it's over, there's no traffic i thought it was brilliant no babies. i thought it was brilliant it was a great movie it's the best. >> you are not a resounding yes for the future of the movie theater business, are you? >> no, i like amc because the amc meme people. i'm telling you, this must be watched. it is so exciting, and get the vis oirk visio screen, cost me very little at costco wow, i loved watching it at home at my leisure. we stopped it twice because some people had to do things. >> right >> you have to worry about being late, looking for a seat, paying $50 for popcorn, whatever, i mean, it's on your time schedule. >> my wife met charlotte -- >> scarlett johansson. she met her at the washington correspondent's dinner. >> that's wonderful. >> i'm not done. she was in porta-potty next to

scarlett johansson. >> really? where is this going? >> well, she needed toilet paper, and scarlett gave her some toilet paper. >> like literally do you have a square to spare. >> underneath. then she opened it and it was scarlett johansson who was like so thoughtful. >> and we now know also goes to the bathroom like everybody else. >> that was not the point of the story. >> i'm not sure what the point was. >> the point of the story is she's a regular person who is -- that's it. >> that's karma. >> i am saying that disney got this right that's all i'm saying. i gave you a little tidbit. >> right, disney did say in a statement it affirms our flexible distribution strategy, which i assume you think is not going anywhere, is not changing at all. >> i just think we've all discovered how much fun with these big screens, sound system, sitting in your own couch, not worried about the guy coughing to your left delta. >> i think it was last week, you

know, the compensation structure for these movies has changed because you're assuminiing a bak end, and that's what you're paying out direct to consumer is expensive. yes, they're making money here by charging 30 bucks initially, but by not giving it the full run in the theaters, are you giving up revenue opportunities. maybe, maybe not, but they're costly, and our own company comcast obviously and its choices on peacock in terms of exclusive runs on universal films and then there's an amazon deal after that, interesting. >> a little look at charter today. >> bernstein on competitive fears. >> i thought that was interesting. actually, i got a little bit on that guy >> stock is down 1.25% here was the key point from bernstein on its downgrade we expect pockets of enhanced price competition from accelerating teleco fiber deployments. we have this written up for you -- there it is

2022 -- with greater confidence in its network capacity and customer service resources the result regional diseke lib rhea, may manifest in slower high speed internet subscriber and average revenue per user growth, jim. they put in a market perform. >> aren't they always takeover bait those guys? not anymore. >> conversation about antitrust, who's going to buy them. >> not lina khan it's hard to imagine altice is the name that you got to wonder at some point whether they'd like to sell. >> altice could go. >> not anymore. >> lina khan. >> unless you were to merge wireless, and again, go back to that, remember, verizon talked to charter they had some fairly serious conversations. again, antitrust, i don't know, are any of those deals going to be allowed under this administration >> we don't know we still have a judiciary in

this country. >> we do they could side with the companies. >> as i said earlier, you've got to be prepared for a two-year review and possibly going to court, but you're right, you're right. you could win. >> right >> heck, time warner won, at&t won. took a while. >> why'd you bring that up >> because it was the last case the u.s. major case u.s. government brought and they lost. >> boy, the government should have won. >> they should have called the deal off >> not time warner shareholders. >> i have to tell you, i watch the futures from the moment i get up, and every day it's the same we're down, and then, you know, europe closes. europe, you know, now probably the british are probably sellers. >> yeah. >> we might be in for a long, long amount of churn here, jim i'm looking at costin's note of goldman, target of 4,300, roughly essential where we are

on the assumption we end the year with the ten-year at 1.9. they've revised it to say if we end the year at 1.6 you're talking fair value 4700. so we're really playing a game of inches on some of these levels. >> yes, we are the stocks i follow unless the government is directly after them that day, they tend to move higher by the way, david, you know the cathie woods stocks are so back. >> they are, huh >> yeah. cathie wood stocks, and by the way. >> space is down today got sold a bit >> kind of ran i'm looking at stocks like nike, like starbucks these are not quit stocks. they're not. ever since nike -- oh, jeez. ever since nike, they stopped it they took it off by the way, you know what's running today? >> what. >> the semiconductor equipment companies. those, i think, are undervalued because that's how we're going to end the shortage.

we need global -- and we need global foundry to step up, right? and of course taiwan semi, we can't have the -- we don't want the prc to take over >> we are well aware >> number one worry, not delta but that china says, okay, look, here's the way it has to be. we want five members of the board to be ours. >> in the meantime, the losses much narrower than the futures had suggested. let's get to bob pisani this morning. >> happy monday. important thing here is we're struggling to get into positive terri territories. consumer discretionary hit new highs. tech sector hit new highs this morning. even real estate investment trusts also at new highs banks still struggling very typical for banks to falter going into earnings season, and that is following a very predictable pattern right now. we'll keep an eye on that. i know there's a lot of talk about china regulatory crackdown. the shenzhen index, which is the

main index for at home tech stocks in china just hit a new high today, the highest level since 2015, which is the all time high essentially. i know there's concerns, but the in-home stocks in china are doing very well. not so great for the stocks -- chinese stocks listed outside the united states. they've just had a very rough month overall, if you just look at alibaba, a 52-week low on friday tencent was a new low. buy baidu was a low for the year you get the point, who would have thought regulatory or where you're listing risk would be an issue. certainly nobody thought about that five or six or seven years ago. as for the major indices, we're essentially -- let's not quite a bit about a few points we're at new highs small caps have been range bound for a while now. the cyclicals are still under pressure it was really a growth period for june and most of july. i'd say breadth is on the sluggish side, a lot of big tech stocks helped move the markets

in june and july earnings folks, big expectations, overly aggressive numbers are going to be a problem. they're going to be a headwind for stocks they are titanic whisper numbers for the s&p. that's going to be a big issue bank earnings, good and bad news you've got the stress tests that are positive that's going to be good for dividends and capital returns. credit's been good i haven't seen any surge in defaults going on. net interest income is a problem. it's been under pressure, and it's been under pressure for a long time by lower rates, loan demand good. autos and housing are strong, credit card seemed kind of flattish to me we'll see what's going on. the important thing is the multiples here for the last several years bank multiples have been trending downward because of the interest rates so we're looking at 10 or 12 times forward earnings. r remembers the s&p is 20. bank multiples have generally been going down and that's been a problem for the bank stocks. that's why of course they're value stocks wie see here look at the kb, you see what's

going on here, the kbe has been dramatically better because the interest rates in february went up so bank stocks went up that's why they've been outperforming. all the outperformance was in february just want to note, more people coming back on the floor of the new york stock exchange. the vaccination rate's above 70%. the nysc has deck ictated they d remove the restrictions. there were head count restrictions of how many people could come on the floor based on the firms. unvaccinated viindividuals havet wear masks they're struggling to figure out what's the balance, so they're requiring proof of vaccination but they're not -- they're asking for it, but they're not requiring it as a condition of being on the floor if you don't have vaccination, obviously you have to continue to still wear a mask and as i said, carl, this is very typical of the struggle that a lot of companies are having around the country figuring out what's the balance to get people back in here i do see more people on the floor today, carl. >> absolutely true, bob.

fascinating and of course companies will have to adjust as the data comes in. that's our bob pisani. let's get a check on the markets here dow goes green the bond report, take a look at how treasuries are faring. yields are mixed ten-year ticking below friday's high but above the 1.25 level on thursday tomorrow we're going to get the latest inflation data and later in the week, fed chair powell, his semiannual policy report 'rba ia mewee ckn mont (judith) in this market, you'll find fisher investments is different than other money managers. (other money manager) different how? don't you just ride the wave? (judith) no - we actively manage client portfolios based on our forward-looking views of the market. (other money manager) but you still sell investments that generate high commissions, right? (judith) no, we don't sell commission products. we're a fiduciary, obligated to act in our client's best interest. (other money manager) so when do you make more money? only when your clients make more money?

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don't worry about me. i'm fine. you can't beat turkey hill memories. the international tax deal protects the free, open, economic order that is crucial for investment and growth and at the same time it's welcome news for middle and working-class people around the world, and i think especially for the american people. >> that's treasury secretary janelle yellen talking about backing this idea, jim, of a global minimum tax the european commission is going to put on hold their digital services levy to focus on this.

>> well, i think this is quite different from the former president trump charge i think there is a spirit of cooperation here that they are demonstrating, that they want to show in some way, shape or form that biden is different. that's my view. >> it would be a big development. yeah, it would be. >> remember, we sat here six, seven, i don't remember, years ago talking about inversions every company out there in the united states was looking for an opportunity to buy another that was incorporated in a different country could lower their tax rate, and other things going on. this gets, you know, sort of at the heart of that -- >> do you agree with my thesis that -- no, because it's funny that i think a mnuchin treasury secretary could accomplish something. president trump was not respected overseas >> meantime, it's got to get through our own congress, which probably won't be considering it until the spring that will be a bit of a slog, some argue. >> oh, yeah.

it's kind of like president wilson coming from the 14 points conversation forget it, president wilson. you are done for president wilson was a racist. >> i have heard that: >> yes >> it's true. >> another fact that has been shared here. >> it's true. >> that is all the forts remain for the southern generals, how the heck did that happen nlt "stop trading" with jim in a moment don't go anywhere. that building you're trying to sell, - you should ten-x it. - ten-x it? ten-x is the world's largest online commercial real estate exchange. if i could, i'd ten-x everything.

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let's get to jim and "stop trading." >> walmart, 3.6 billion u.s. and looks like a valuation around 40 billion. i think flipkart should be valued a little bit more versus india, bick country. but i think it's worth pointing out. i know that walmart appeasing morgan stanley saying it's flat lining i would focus on this india deal. >> yeah, every wire story about the valuation today says with the ipo looming, jim. >> yes, a lot of looming

i think people want to play india because that market is so vast but, obviously, so hurt. and i feel so badly about all the people india decimated by this thing. n indonesia decimated but walmart should be noted as keeping this thing going i think it's a got peace of real estate >> jim, what's tonight >> the people probably just say, what are those guys? mongo db, it is a software, you know, these are all platforms. 40% growth all these companies are doing so well they do a lot of stuff with aws and also they can show you how much faster they are than using microsoft, which is really important. look, there is a whole cottage industry of people who can do things faster than microsoft i think that microsoft is so powerful, but may be the power -- power could be wang. >> really? >> i think so.

>> >> yeah your biggest pronouncement for the last second? microsoft's power could be waning >> no, every company i deal with is saying the reason the hack is because they are still using windows 95. >> sure. >> that's what i'm saying. they have to update. no one i know says that the windows -- microsoft's their cybersecurity the best. >> imagine what ibm once said about a young bill gates, right? >> that's what i'm saying. >> nice to have upstarts keep the big guys on their tuesday. >> frank slootman, too he is not young, but snowflake's coming along big. >> see you at 6:00 "mad money" with jim cramer on cnbc dow's up 55. another hour of "squawk on the street" ar aerheresttsft t bak og and reinvent the wheel. with a hybrid, you can do both. that's why manufacturers are going hybrid with ibm. with watson on a hybrid cloud factories can use ai to automate the little things

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welcome to another hour of "squawk on the street. i'm carl quintanilla with david faber. mike santoli is here as well live at post nine at the new york stock exchange. morgan brennan is live from the site of that historic pace launch over the weekend. more in a moment and meantime the markets have turned early morning jitters about covid variants and slowing

growth into green arrows it's flipped with the nasdaq which had premarket gains now down seven. >> and with us 30 minutes into the trading session here are three big movers that we're watching this morning. tencent music low they are morning as it becomes the latest facing a crackdown in china with reports it will be forced to give up exclusive rights to music labels by regulators that could happen fairly soon. and the banks, yields recovering a bit this morning we have got a slate of the biggest names that are going to be reporting earnings. you can see three of them right there. we will break down what to expect later this hour, kbw's tom michaud will be joining us and virgin galactic, shares higher after a successful test launch they are far lower after a successful test launch the reason is because they are offering about half a billion dollars worth of stock right? >> yeah. that's why all right. our morgan brennan is live from spaceport america in truth or consequences, new mexico, with the news of that incredible

launch morgan >> hey, david. i 3:30, it suits you nice this morning. you can add astronaut to the long list of accomplishments from billionaire entrepreneur sir richard branson after that successful fully crewed virgin galactic mission that happened here at spaceport america yesterday. taking them to the edge of space. for branson for whom going to space has been a lifelong dream, this has been a 17-year process just to get to this point at virgin galactic. >> absolutely impossible to describe it unless you are doing it i hope we can get thousands and thousands of people to be able to experience what we experienced today. >> now, branson also telling me post-flight yesterday that he would go again today, quote/unquote, if he could he is going to stand aside so that those long standing 600 or

so ticket holders, as the company calls them, future astronauts, could make their journeys as well with this mission complete the ceo saying they are on track for two test flights by early summer or fall. the next one, technically speaking, almost identical in terms of mission to the one that happened here yesterday, the potential reopening of ticket sales. as for the flight itself, 500 people here in the new mexico desert at spaceport america, including singer khalid. the board, senior executives from virgin group and five dozen of so-called future astronauts, including branson's friend elon musk, would was here as a guest specifically of the branson family as for the stock, david, you mentioned it, it is notoriously volatile to begin with it's having its own takeoff and landing. today the shares halted earlier

this morning as you mentioned, they are sliding steeply right now because the company on the heels of this flight did announce that $500 million common stock offering but in general, just a major milestone, guys, for commercial space and this emerging space tourism market that we are still trying to get our arms, everybody is trying to get their arms around in terms of how large and potentially profitable and robust it will be. >> and getting a lot of help from you, morgan, and your reporting on site. appreciate it. we will talk more in a bit in the meantime, china is the other big story, continuing the regulatory crackdown for that we turn to eunice yoon live from beijing. >> thanks, carl. didi confirmed today that beijing's order that it removed 25 of its apps from app stores as well as platforms could hurt its revenues that was having a big impact on the stock. the stock also could have been moved by the fact that "the wall street journal" is reporting that tiktok's chinese owner

bytedance showed the ipo plans in contrast to didi's push and this is despite both companies being warned by beijing about national security concerns now, the regulators are being empowered to have much more influence, especially when it comes to cybersecurity reviews new direct rules unveiled requiring companies seeking to list overseas to report for a cyber review first these are 13 agencies that are now going to be coordinated under the cyber watchdog and be vetting procurement, data management, national security risks as well as all of the ipo materials and this is for companies that manage more than 1 million users data, which is essentially pretty much every single company here. now, state media quoted securities regulator advisor as well saying a review is a, quote, premise to an ipo abroad.

so that really puts the regulators front and center with the ipo approval process regulators also had tencent on their radar as you guys were talking about. beijing killed a $5 billion merger of two video game streaming firms, backed by tencent, including the u.s. listed doyu. also reuters has been reporting that beijing through the antitrust regulator will soon order tencent's music arm which is essentially china's version of spotify to give up exclusive music labels guys >> eunice, thank you very much a huge story for global equities and regulatory policy. eunice yoon in beijing. back to the markets. mike santoli is back mike, i heard you earlier on squawk talking about how the seasonality picture changes in the month of july. >> it does i wonder how to fit in the fact that everyone knows that everyone's been talking about

it the market adhered closely to some of the seasonal tendencies this year, june very strong. what's interesting about the recent kind of behavior of the market is that we've had these very minimal pull backs at the index level. but below the surface a lot of wear and tear. today more stocks opened up down than up. the indexes finding a way higher the question is that sort of kind of eroding the ongoing market strength or refreshing it i think you have had rolling corrections, half of all stocks down 10% last week friday 90% of all new york stock exchange volumes to the upside that's the kind of thing you urs usually see off a 1% low so cleary there is a resilient in the market but earnings season has not been catalyst for total directional upside for the overall indexes. it's been very much a flattening out period in april, january and in october

so you have to manage your short-term expectations while give credit to the market. it's acting like 2013. same exact year to date gain in the s&p, ongoing rotations, nobody is comfortable with the leadership profile and yet the market keeps chugging higher. >> growth has opt-out performed value for five weeks what is the best argument, one in the opposite direction? >> i that i the bond yield looks like it may be is in the process of bottoming the fact that you are going to have the fed come out probably powell at the end of the week and try to reiterate that they are very much not going to make the policy mistake the markets seem to be pricing in, getting to a tightening posture before we have full employment. and also the fact that value and cyclicals have not given up the longer-term leadership even though we have had thisout performance, everything looks converged but banks have maintained their advantage over software you know, even transports over

staples and things like that if you look to credit, if you look to the defensive parts of the market, it's not sending up a warning flare about growth even though we are in a little bit of a perceived soft patch. >> funny you mentioned banks they started down but they are up rather starkly. i am not quite sure why. golden and morgan stanley up 2% each. >> it might not be more complicated than the ten-year yield started this much lower and it's this much higher. that's what we are doing right now, is, you know, everyone's got the same kind of relationships programmed in and it just seems to kind of rotate towards the higher ground whenever, you know, the bond does what it does. >> you are probably right. obviously, we will be looking closely at those bank earnings as the week goes on. reserve releases there that help? to your point, that interest margin continues to be a key force. >> yeah. and they got a little bit cheap. i think you probably rebuilt some value in banks because they had a terrible run you will have the buyback story,

which i don't think is necessarily as bullish for individual names as it is like they are going to be spilling so much money into equity portfolios because everyoneens the banks and that gets rotated back into the market those are the parts of story that seem tough to stay very bearish just because when you have earnings growing at 60% in a quarter, it is just a difficult tide to fight in the short term. >> all right thanks, mike. g20 finance ministers meeting in italy discussing a global minimum tax rate. ylan mui has those details >> david, the sweeping tax deal that is backed by the finance ministers of g20 has two critical components. that global minimum tax rate and new rules for taxing the biggest multinational companies. under this new framework the global minimum tax rate would be at least 15% the g20 is trying to convince

ireland and estonia to join in they are hoping to implement this by october. >> this deal will end the race to the bottom. instead of asking the question, who can offer the lowest tax rate, it will allow all our countries to compete the on the basis of economic under mentals. >> the second half deals with digital taxes aimed at america's tech giants. now, those would end under the new rules and instead countries would agree to tax any multinational with revenues of more than $20 billion on profits above 10%. the reality is though that is still mostly u.s. companies. one analysis projects the new regime would generate $87 billion in tax revenue, more than that have of that, 56 billion, would come from companies that are headquartered here in america. and about a third, 28 billion, would be paled by just five tech companies, apple, microsoft, alphabet, intel and facebook so the timeline for this up in

the air though, guys treasury secretary janet yellen estimated that details won't get finalized until spring 2022 and it would likely need to get senate approval. back to you. >> okay. thank you. let get back to morgan in new mexico and a look at what else is coming up in the show. morgan. >> oh, we have so much coming up, including the fact that as of yesterday sir richard branson became the first person in history to not only build and fund his own spaceship, but to actually take it to space. so coming up after the break we have my interview with branson after that historic flight yesterday. the pursuit is on. the pursuit of outperformance at pgim. with deep expertise to outthink across multiple asset classes, actively managing investments in the world's public and private markets.

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welcome back to "squawk on the street." a major milestone for commercial space yesterday as virgin galactic successfully completed its unity 22 mission to the edge of space a test flight that had among its six crew sir richard branson, the founder. after a performance by singer khalid and champagne-filled ceremony in which branson and the rest of that crew received their astronaut wings, this was a celebration filled with the flash and swagger synonymous with the overarching version brand. i spoke with branson about his experience and more.

was it everything you envisioned it would be? >> everything i had envisioned it would be and a thousand times better i mean, absolutely impossible to give it, you know, to describe it unless you actually are doing it, and i hope we can get thousands and thousands of people to be able to experience what we experienced today. and it was fun i mean, it was just extraordinary, an extraordinary experience from one extreme to the other, you know, from going up attached to eve, named after my mom, you know, being dropped from that mother ship, the roar of the rocket as we headed off from 3,000 miles an hour in eight seconds to getting into space and the complete silence, the complete beauty outside, the wonderful colors

i practiced a speech talking to the kids back down here, and then just at the end of it just unbuckling and then just taking off and floating and looking out f through these enormous windows at our wonderful, wonderful team of people. and it just, everything couldn't have gone better and then, obviously, coming back into the earth where you got the shuttering of the spaceship, which i always read about and heard about on re-entry. just the most incredible experience of my lifetime. >> you mentioned it was fun. i imagine you have had a lot of fun, looking over your life. i would argue you are just as famous for some of the daredevil activities over the years. where does this stack up >> i think that the thing, i don't actually see this in the daredevil. i have climbed mountains, you know, crossed oceans in balloons

and boats and had lots of wonderful, wonderful adventures. this i suppose is maybe not -- i hope is not the combination of 50 years of doing these, you know, pretty extraordinary, wonderful, you know, things. but, yeah, it's definitely -- you know, this week, when you think about it, the last time i talked to you was a week ago dropping a giant rocket from a 747 into orbit with virgin orbit, our sister company, and a week or so later, you know, being propelled into space from a mother ship that we built. yeah, so i am going to wake up tomorrow and think, i don't know i may be back tomorrow i'll come down. >> i can't help but notice your glittering, shining astronaut wings. >> dada! >> now that you have them, what's next?

>> i am sorry. i am not letting go of that one. what's next? we have a lot of challenges, whether it's -- there is a lot of challenges going on in the world. we have a lot of foundations that are trying to tackle those challenges and i will devote the next 20, 30 years of my life to working with my kids and the wonderful team of people at virgin and try to tackle all of the various issues that the world -- you know, the fact that i can pick up the phone and get through to everybody, obviously, a day lilike this makes it easier. >> now that you have been to space does it change, shift, i guess build upon your long-term vision for space >> i think that what it said so me is we just got to build a lot of spaceships. and the wonderful thing about going to space on the virgin

galactic spaceship is the environmental cost is no more than going to london to new york and back on a virgin galactic palestinian. and i think we can get that, you know, even better. space is transformative for things back here on earth. i am not sure whether this is a live program if it is, it's definitely going through space. you know, connecting the world, monitoring rainforests, all of these things that virgin orbit is doing on this flight we had a lot of experiments going on as well as experiencing flight ourselves. >> you just mentioned virgin atlantic as we enter this era of human spaceflight there are a lot of comparisons to the early years of aviation. do you see it on the same trajectory when it comes to pricing and that coming down and greater access on a more mainstream level

>> yeah, i think for the first few years it will be expensive because we have a lot of bills to pay and there are a lot of people out there willing to pay it but in the years to come as we get more and more spaceships, the price will come down meantime, we have just launched, or something, a global raffle for two people to be able to have a chance to go up to space. the money that people pay into the raffle will enable more people to go to space. so what i'm hoping is that we can actually get tens if not hundreds of people to be able to go to space who could never have dreamt of going to space. >> a question i suspect you are getting a lot today. having gone to space successfully today, words of wisdom ahead of jacoeff bezos's flight >> just to wish him a wonderful voy raj as we had and all the people traveling with him. >> how about emerging markets? he was a best of yours

is he now convinced to go up himself? >> he has a ticket with virgin galactic he has had it for a number of years. he will still go to space with us one day but i'm sure he will go to space on his own spaceships. >> of course, this flight coming just nine days ahead of that flight, an anticipated flight by jeff bezos on his own commercial space company blue origins next tuesday. he did tweet post-flight to richard branson a congratulations and said can't wait to join the club. overall, this was a major moment for branson, virgin galactic, and for this emerging space tourism story that we have been talking about. also, just note, a fun factoid, as branson mentioned, the mother ship that air launches the spaceship named after his own

mother eve, but unity, the space plane itself, was actually named by stephen hawking who, before he passed away, had aspired to be on one of these virgin galactic flights. >> morgan, i guess the question would be for bezos, what are the challenges for his flight? and, i mean, what sort of -- do you see those two trying to outdo each other or essentially match each other as their innovation takes hold? >> it's a great question i think speaking to virgin galactic and to someone like branson, he sees it as a market that has room for more than one competitor where subsorbital space is concerned certainly was, as you heard right there, was very positive and supportive of bezos' upcoming flight. there had been some space shade by blue origins ahead of galactic's flight on twitter last week. that was not received by the

industry but in general, and you see this as well, elon musk tweeting congratulations to branson after that flight yesterday. in general, i think there is a rivalry between all of these different commercial space companies and their founders, but also a lot of support. anytime anyone makes it to space or to orbit, it is seen as a moment for the entire industry an industry that has, of course, been decades in the making. >> yeah. space shade. i got to remember that morgan, back to the stock story, you and i mentioned a half a billion dollars common offering from virgin galactic we watched the shares move appreciably higher the last few weeks, but not without a great deal of volatility anything new in terms of their plans for 2022 or are they on the same schedule we knew about previous to this plflight >> we will talk about a little bit more later in the hour

i did also speak to virgin galactic's ceo and he said, yes, as of right now they do this visual walk around on the plane, on the spaceship, when it lands. the engineers make sure there is no damage. based on that initial analysis that it was looking, quote, pristine, more testing, more analysis in the days and weeks to come at spaceport behind me that being said, still on track for a second crewed flight, a test flight similar in mission, technically speaking, to the one we saw yesterday in the coming weeks. behind that they send the italian air force into suborbital space as well then more testing, nor analysis and they will be, if all goes according to plan, they will be opening up commercial service and starting that early next year so very much still on the same trajectory and also not unlikely, could happen, but not unlikely that they don't push that up or speed forward. they are being very methodical and cautious about this because,

of course, with all of these companies, safety is of the utmost importance. it is the number one priority. >> there are a few things harder than this kind of technology we know what happens the downside to making mistakes is severe so we will keep an eye on it unbelievable what a weekend our congratulations to sir richard. late they are hour a breakdown of the tech rally that crackdown in china and the ftc elevation partner's roger mcnamee. united downgraded at ever core they are talking about the company's significant aircraft costs in the coming years as they have rejiggered some of their fleet management strategy. stay with us

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plug power a battleground stock as jim might like to say, up more than 660% investors uncertain about that company's future growth prospects and whether it will become profitable. we will continue to watch that story. we'll come back after a break and talk about china names under fresh this morning we will talk about it with tech investor roger mcnamee the dow holding on to gain of almost 100 points. 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 here is your cnbc news update. general auster miller the top u.s. commander in afghanistan has stepped down ending a nearly three year term. it comes as taliban forces gain territory and the u.s. nears the end of a nearly 20-year war in the country.

cuba's president addressing the nation as thousands of protesters took to the streets over the weekend against shortages and rising prices. he blamed a social media campaign against the cuban revolution for provoking the unrest it comes as cuba faces the worst economic crisis and a strained health system as the covid crisis hits with record infection rates. and residents are being evacuated as the so-called river fire it is burning in mariposa in california after it broke out sunday afternoon it has scorched 4,000 acres already and is only 5% contained. officials are blaming the latest heat wave dry conditions and tough terrain for that quick spread carl, back to you. >> leslie, thank you very much. big tech of course giving markets a boost this year especially the last couple of months apple, microsoft and amazon fresh highs last week. tech faces antitrust scrutiny in the united states and china now.

joining us to discuss elevation partners roger mcnamee good morning >> good morning, my friend. >> i'd love to start on china. didi last week today it's bike dance. ten cent around the block with alibaba. can you explain what you think chinese regulators are thinking now? >> i am not exactly privy to what they are thinking, but i think it's logical that china, which it has an authoritarian approach to the government, is looking at the rest of the world and noticing how internet platforms, when they get deeply pervasive, have a profound impact on society and politics they must see the destabilization of democracy in the u.s., in brazil, in other countries and say, hmm, this is something we need to keep under control because i do think that internet platforms have gotten in many parts of the world to the scale of states and that makes them competitors >> wow

for example, what lessons do you think they have learned here in the u.s. is this a cautionary tale out of facebook or google or something else >> carl, i don't know. but it seems to me that the obvious thing is that internet platforms have so much information about the people who use them that they have the ability to be a catalytic force in politics. that's what we have seen in the united states, the united kingdom, across europe we have seen it in south america and brazil and in lots of parts of southeast asia. so i would think that the chinese would be looking at this and saying they don't want something other than the government to have that level of ining sight about people and that level of influence. >> right roger, it's david. there was a time when we thought social media would be a force for democratic movements worldwide. i think we have gotten rid of that notion. but the chinese are a surveillance society to begin

with and in many ways controlling these police reforms enhances their ability to know everything about their population and that's not to mention what they are able to accomplish as a result of rolling 5g throughout the country. >> i'm completely aligned with that, david. it just seems to me from china's point of view having government control of those companies is a huge positive. and letting them get too independent, that may not be in their best interest. >> so we've got, i guess the question, roger, whether we have similar, maybe slightly less aggressive strategies at work among governments in the e.u. and clearly in the united states whether it's ftc or doj. do you think whether or not they are going the same speed, directionally governments are waking up to the threat that you have written about for years now? >> well, carl, we are going to have to see. what's clear in the united states is that there is no muscle tone in our antitrust

infrastructure the judge who threw out the ftc and state cases against facebook, the reason underlying that was, at best, i pinmean, it was not a serious analysis and yet it's that easy to stop it when the house judiciary committee reported out six antitrust bills it only took a handful of california representatives to prevent that coming to the floor of the house of representatives so i look at this as the industry, i don't think it has an immediate threat from antitrust, but it is, in my opinion, inevitable that governments are going to want to reassert control of their environments and take some of that power back from internet platforms. how long that's going to take, i don't know if i were an investor in this group, i would look at their specific situations to try to understand the risk. so taking facebook as an example, i think that the

greater immediate risk is potential impact from apple's ios 14.5, you know again, apple's only half of the north american market, but apparently the vast majority of people are opting to not have their data shared by facebook and other platforms. >> right >> that strikes me as a much more near-term risk to the stocks than antitrust. >> roger, it's hard to imagine companies are going to be able to do large transactions, for example. but what you are getting at is eventually they will be broken up as a result of court order where there is a successful case brought against them, or because of new legislation what's it going to be? i know it could be years. >> yeah, david, i don't know the most immediate antitrust threat is the texas attorney general's case, which is price-fixing against google with facebook as the co-conspirator

and if the information they put out publicly already is correct, and there is no reason to believe it's not, they have a very solid price-fixing case and if the federal government, the department of justice, were to join or take over that case, they could pursue it as a felony and it was only last year that the ceo of bumblebee tuna was sent to prison for three and a half years for a price fixing case not only as similar, but 1% as large so to me the threats from these things are less likely to cshor term from new legislation than they are from things within the legal system or the behavioral changes inposed by companies like apple that result in a meaningful drop in advertising revenue for facebook or with respect to google. you see that flock, which is their new surveillance system,

you know, is being pushed back and that there may be some issues there as well t relativeo advertising. >> how would you tell investors to try to capture some of the structural growth that's happening within tech without running into some of the buzzsaws of regulation like we are seeing out of china in the last couple of weeks >> investors have been more right than i have about when regulation -- you know, i look at this and everyone has been rewarded for being loyal to the stocks as i look at it today, i just think we are coming into a water torture mode for the u.s. and the west in terms of annoying things that, at the moment, have not been hurting numbers i tht the apple threat and inability for google to get flock to be acceptable to advertisers, that those things suggest that business is going to have at least some headwind and that may not hurt the

stocks, but i just think at this point you want to be look for the next generation. and i think investors would be well served to remember that antitrust is actually incredibly pro growth if you look at the history of it, it causes huge job growth, huge increases in stock prices over time, and generally, at least in tech, it results in the creation of whole new industries that make investors a lot more money. >> an argument, roger, you have been making better and better over the years and consistently. appreciate it. good to see you again. roger mcnamee. we have a host of big banks set to report earnings this week we will tell you what to expect next my retirement plan with voya keeps me moving forward. they guide me with achievable steps that give me confidence. this is my granddaughter...she's cute like her grandpa. voya doesn't just help me get to retirement... ...they're with me all the way through it. voya. be confident to and through retirement.

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a look at the big banks this morning. we started down. mike santoli made this point perhaps a move up in yield is enough to spark the group. you can see nice moves, particularly goldman and morgan stanley. but even bank of america up more than the market at this point. here with a look at what to expect from a big week in earnings, the ceo of kbw tom, good to have you. we had you a month and a half ago, i guess you were positive on the banks as you have been has anything changed other than the fact that the stocks, obviously, have not performed that well over the last few weeks >> yes unfortunately -- well, the banks have under performed by 10% in the month of june because the macro pieces have changed some in the near term, which is a decline in the ten-year, i think, in particular but we still think the biggest

forces that will play out over the coming year and two years will come back and remain in place, which is improving economy. we to think the stocks will react well to a higher yield than the ten-year. so the big picture is still the same i will tell you, the environment has shifted come over the past month with the changes in the yield curve. >> yeah. let's get specific here in terms of when we sit here and analyze the earnings coming out, listen to the conference calls, what are you going to be listening for? what are some of the key things investors should be focusing on, tom, as they go through these earnings reports that we are going to get this week >> well, so balance sheets are extraordinarily pristine we think there will be questioning about credit quality. we think it's all about revenue growth and that's the big story here, which is the industries' earnings are a coiled spring plenty of capital that continues to build quickly, unbelievable

liquidity, a headwind to earnings, but all of this is the fuel for future earnings growth and investors want to note timing of when that revenue growth is going to start to show up in our models we're forecasting by the end of the year, the economic growth will catch up to this liquidity, and you will start to see it more in the core operating earnings growth, but that's what investors are going to be looking for, number one. the number two is, they will be looking for a little bit of guidance on the capital return story. the banks passed the ccar with flying results and terrific results a few weeks ago, but they haven't really gotten into the strategy of how they are going to return that capital and i believe that investors are going to want to hear a little bit more specifics about that. >> tom, we have spent a few quarters talking about market caps of fintech companies that are comparable or in some cases exceeding that of the legacy banks. and occasionally the likes o

diamond. do you think that talk will get more explicit whether or not in these conference calls or ones in the quarters to come? >> absolutely. the biggest banks, and especially jpmorgan, are in a terrific position to act they have got terrific capital positions. they have got healthy stock prices, and there is an incredible convergence happening in financial services between fintech and banking, and i expect to see more of these deals, especially, remember, jpmorgan is at the deposit cap they legally cannot buy another bank so they are going to have to look for non-banks do acqui acquisitions they have already been doing that i expect to see more >> tom, we will be watching earnings closely appreciate your help to guide us through that thank you. >> terrific. thank you. coming up on "tech check" this morning, big tech gets back to work, do not miss drew houston on how he is reimagining

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welcome back to "squawk on the street." utilities and consumer staples are among the sector laggards so far, financials as you just heard helping to lead the gains so far today within the sector it is the asset managers like t. rowe price, invesco and franklin resources that are the top performers alongside the investment banks likmoane rg stanley and goldman sachs. "squawk on the street" will be back right after this break. i think you're going to like it here. umm, why is everyone... throwing things at me? look, as cfo it's my job to be ready for whatever's next. that's why i have my finance team, randomly hurl things at me. it's also why we use workday. it gives us insights, so we quickly pivot our strategy, people, planning,

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as the u.s. economy roars back to life, states are also back at it, trying to win business and jobs. this last year and a half has changed many of the rules and our annual america's top states for business study is back to figuring out who is winning. scott cohn is in this year's top state for business, it is a mystery for now. and he's there to talk about how we're changing for this changing world. scott? >> hey, david. we're getting ready for lunch -- maybe it is breakfast. who knows, in the top state for business we will reveal america's top state for business and all 50 states how they rank tomorrow morning on "squawk box." it is really a changing world,

we have this methodology we have done every year since 2007 with the exception of last year, where we rate the states in ten categories of competitiveness for a total of 2500 points and we rate the categories based on what the states are talking about. more states will come out of this pandemic, and the economic slowdown or recession, are talking about cost of doing business that's the heaviest way to category you can hear more about our methodology which we have adapted for all of the changes going on in the world. we're now talking about things like inclusiveness, we're talking about sustainability when we talk about infrastructure, we talk now about broadband and the power grid, things that we may have taken for granted in years past as states really look to attract companies and companies are more flexible than they have ever been before in terms of where they make their decisions. so where am i? here is another top state

diabolical hint, break a leg break a leg. what does that mean? you can, again, read more about our study, we'll have another hint coming up in the exchange and power lunch and we'll keep on milking this. and tomorrow morning, we'll tell you where i am, merica's top state for business >> i'm terrible at those clues i know a lot of other people are trying to figure it out. how much did the new inclusion of the things you're talking about, let's call it esg for lack of a better term, becomes so important to our capital markets, how much did it influence the overall rankings >> it is hard to tell because we only did it one way this year. but it is pretty clear that there were some states that did better than others what we did is we always had a category called quality of life. we retooled that a little bit for this new world and we now call it life, health and inclusion. it does include things like inclusiveness, we're looking at

voting rights, but we're also looking at more closely at healthcare, public health spending, covid-19 vaccination rates, things like that, and what we know is from talking to companies and talking to site selection experts is that this is something that companies are very much looking at right now in a way they maybe didn't before this past tumultuous year on so many levels, the pandemic, the social reckoning that we went through, it really is a changed world. but the interesting thing is that this whole business of site selection and economic development, people that are involved tell us they have never been busier. >> interesting never been busier. always such a great moment when you unveil it, look forward to that tomorrow morning. scott cohn in an undisclosed location, but he is going to eat that hot dog, i would hope, and expect morgan brennan, we had some issues, back and forth with your audio, your video. you've been there all weekend at

the historic space flight with sir richard branson. take it away >> yeah. i guess this is the price you pay for standing in the middle of the new mexico desert -- announced plans to sell up to 500 million in stock, following the successful suborbital space flight -- remember it is prerevenue, commercial service isn't expected to start until early next year. with unity 22 mission -- >> almost sounds like she's in space. you know, a little bit we always like to start now with mike santoli and, mike, i'll give you the last 40 seconds to end it here in terms of what you've seen and what your expectations are in this market today. >> a little minor morning gut check. second week in a row we started like this. last tuesday we had a friday kind of meltup and then, you know, test in the morning in the first day of the trading and next week to see if

it is actually real. this day, though, it is not really the nasdaq. it is not like last week, apple and amazon carrying things it looks like it is this continued grind higher everything this week will be determined by reaction to the cpi number tomorrow, and then we have powell later in the week. to me, this is the preliminary, getting out of the way. >> thank you, mike thank you for watching that will do it for us on "squawk on the street. "techcheck" starts now good monday morning welcome to "techcheck. i'm carl keenquintanilla with deirdre bosa and jon fortt kevin mayor as china