yield curve flattening meaning the market is pulling forward expectations when the fed might start to tighten probably what has the stock market unsettled. >> ignoring some of the numbers. andrew, waurcwatching somewhat seeing, more earnings tomorrow and watching that, too. >> big week ahead. we will see. we will see. >> we will see you back here tomorrow mike, thanks for being with us today. right now it's time for "squawk on the street". good tuesday morning welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber at the new york stock market. jpmorgan, pepsi, futures dipping, though on hotter than expected consumer inflation year biggest jump since '08 transitory rages on. and we begin with earnings under way, jp and goldman

rolling out routes. >>. >> boeing, company cutting production of its green line. >> and "an unusual and rare" fauci commenting on the new warning label on johnson & johnson's covid vaccine. details on that. dive into bank servings, jim, talking goldma man "squawk. you have to triple check actual numbers versus consensus doesn't look right. >> look, take goldman. a huge quarter last year, because it was the covid quarter and completely delivered and beat it. i mean, this investment banking division is a miracle. i can't believe how much money -- david, 10% return, by wait remember when you felt they might have -- >> after the prices, unclear to me they'd ever hit double digits and they're in the 20s on return. >> amazing amazing. usual sniping back and forth

between goldman and jpmorgan i mean, grown people telling me -- >> competitive people. >> listen, all private equity. no, it's not private equity did well at goldman. it's not the way they made the portfolio. jpmorgan. >> i'll come back to that. >> we will a level of consistency to jpmorgan frankly i just love it people are not borrowing as much as i'd like. trading less than expected and jamie spoke last nime, jamie, david -- >> go by first name. cher not the singer, steve cher of goldman. >> he's not a good singer. >> he's not? >> no, he's not. and doesn't spin either. consumers generally health fri jpmorgan and people will talk about the cpi and talk how it's running too hot. if i were jay powell i'm clearly

not, what would happen, he wears white shirt, blue tie. what shehe does. maybe people are finally making money. not saying freight now, freight, conagra, pepsico able to pass on costs because they're doing so well in soda, carbonated, they like to call it carbonated beverages. >> you moved to cpi sealessly. viewers may not be keeping up, but i am. >> what am i supposed to do? >> like i said, it's a tense day. >> it's a tense day. trying to fit it all in, in one little place here. >> and goldman versus jpmorgan are those liabilities relative to what goldman printed? >> i thought they -- look, could have very easily said that there's a change, interesting income guide, and they did not

i regarded that as positive. >> right, right. >> and jamie talking about the quarter benefitting from the significant reserve release, of course they don't get credit -- doesn't want credit. 3 over 3 billion, wasn't it? >> right. >> has the effect pushing earnings up revenues -- >> investment banking. >> oh! >> god -- >> is that what we do? >> when you -- >> never done this playground, like 40 years ago. >> exactly saying that i wish i came back -- the people at facebook and google may actually say, those guys are making money. >> right. >> so used to saying those eastern idiots no investment banking industry, very good. >> they are. trading seems, all of these firms tell you they've made market share gains and it does appear the trading business, to some extent, slowed from european banks we know -- >> pulled back thank you very much. >> and thank you very much and jpm, morgan stanley among beneficiaries there.

come back to goldman sachs like to push it, it's true added benefit of being true. arguing they should be getting a higher multiple because of current revenue stream of asset management and obviously you'll have quarters they have enormous gains from private equity martz. their argument, blackstone buried in goldman sachs, alternative assets, we don't get credit for, but there's a look $5.13 billion, huge year over year number. also they had $3.7 billion in games, jim, from public and private investments. that's private equity. not always have those kinds of gains. >> but they have. >> and raised $75 billion in new funds. >> was that not amazing? by the way -- >> zero occurring reservvenue. raising money and blackstone kind of a business, you hope to get a higher multiple. >> and you're not mentioning apple. i think apple is starting to move the needle. >> the apple card.

>> moving the needle. >> we don't mention much, the consumer remember marcus? we would spend time -- >> that's apple. >> yeah, but adds up to nothing. what is it >> no, no. >> revlgenues consumer banking, $300 million -- >> i like apple. >> expenses down 17. get your attention at goldman, jim. as people start to look at areas of operating leverage. >> right right. right. very much. you know what i really loved about goldman? somebody tell me managers, down, graded by -- what i loved about it, i now question the need to work at the office. >> you now question it >> with these rough management numbers, why come back they're doing so much better i'd make them stay at the -- >> no. they're back they're ready to go back. >> no, but these numbers say, don't come back! the numbers say, don't come back solomon's wrong. when he comes on our show at

9:40 -- oh, he's on -- okay. >> on the clock. >> this is the question to ask, which is that, why do they have to come back these are the numbers i've always dreamed of. it's obviously hybrid and solomon -- >> no, the investment bankers were in the building already this quarter they were. >> management, no. they come back because they have food trucks in front the food trucks? >> wants them back jamie dimon want them back. >> hybrid model is better. >> goldman itself. a note out about productivity in large part because of travel and entertainment going away. >> yes. >> the -- efficiency of remote work adds to productivity for years. >> really going to have to be -- they're going to have to re-rethink coming back have two tracks. if you've made it, okay. you don't have to come back. >> you don't have to make partner a remote license

jrchtslicense? >> like in a law firm. work lie the dog as a partner. >> you need the people you're apprenticing to if you're going to learn anything. >> what the hell are you talking about? >> you know. they all like to talk about it. >> yourself even talked about your indoctrination of a firm -- >> and i got a lot of blowback on that. got a lot of blowback. >> what you learn from, was it -- >> no. dave tepper stood on a desk and said i was -- well, we have similar -- i don't know about -- >> the guys you learned from. >> they were guys who made a fool of me, stood on desks commented i was an idiot, a buffoon, and that's how you learn. >> right. >> i come back to the fact, how do you do this well if you're not in the office? the answer's exactly you said. productivity, costs are lower. people are doing such a great

job. i'm now beginning, that the tracks are -- there's three tracks there's you got to go to the office if you're young hamptons -- palm beach. >> you're right. >> that's retired. retired partner. >> oh, not anymore, partner. well, no the partner. >> can i be a retired partner and go to palm beach can i be your retired partner? >> believe me. has it not occurred to me, been on the agenda? >> no. >> but my wife lived in delray three moss. >> can't wait to hear more from solomon at 3:00. one of the key issues. >> had to do that. >> i don't think either one of us will listen to a word of it. >> i am going to -- you know what i'm going to do i'm spinning '70s '80s music you want to drop by my place >> i'm not listening to that interview. i'm protesting. >> i'm mixing it up. >> a spot here end of the desk he can sit there solomon. >> mix it up with a little vecci

and jackson 5. >> i like it. jim mentioned the inflation number, .09 month on mon month. >> and trying to pin it down did you see 1.02 much better. trying to pin down -- ooh. i do trying to pin down exactly what is crushing. comes back to the same thing they can't get the semi for the new, got to get the used f-150 is trading through the new, because new is a usury. >> a lot of used cars. >> no. used cars, one-third. >> actually biggest increase since data began in '53. >> the average car dealer has an 1/10 of the cars they had on the lot last year. not just semi shortage all the great semiconductor companies.

nvidia, amd. all chasing high-performance computing. not chasing full-featured semis. because they're not doing full featured -- don't call me dumb -- full featured semis, like, who cares? we want to chase google's business e were want business from facebook they don't want the business from autos and not making -- global foundry is going to save is even as taiwan semi may not global foundry stepping it up big. get to know them. >> i will. you keep talking about this getting resolvedal before end of the year. >> yeah, i do. >> listen, obviously first called a pandemic and first guy called it a vaccine. forgive me i'm 2 for 2. hitting more home runs than the guy last night from that clown team. >> i don't know who you're talking about but my team has the greatest home run derby -- >> you do know how much he's making >> yes $660,000. >> i'm writing him a check. >> alonzo dominated home run

derby. >> bryce harper paying them $74 million. >> is that all >> i know. just had it. you're right really -- >> la month -- >> i apologize global foundries is the one that will solve. >> on inflation, quick, jim. bofa vsurvey out, inflation, 22%. down 42% month on month. >> really? >> i mean, that was obviously print before cpi. >> we have to solve freight. it's drivers talked to -- by the way, a quarter this morning, pepsico, that was magnificent talking about 6% growth. an unbelievable quarter. taking share everywhere. what's the problem it's freight it's drivers drivers all over the world i don't know what happened that is something that can't be solved in the next year.

not enough drivers i don't know howhappened trying to pin down conagra-ness by the way. >> yep. >> big die-down and highest inflation hitting q1 and selling and that's in keeping, but no willing to call inflation. you're the best and don't call the top -- >> and conagra, but, right in line of what general mills told us a few weeks ago. >> right >> when we come back, there's boeing news. cutting production of the 787 dreamliner that news weighing on the stock. we'll explain what they told us this morning look at futures, as we are digesting earnings, inflation, macro and micro. "squawk on the street" continues in a minute.

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long run that's good for b.a. >> now it's the nose on the 787. they're going to tell you, listen, we're not making soap or toothpaste i'd like to see mr. calhoun spend a little more time on the floor and a little less time in places i'm working on. i cannot believe, frankly, the endless stream of bad news and now, by the way, you start cutting production, david, we start thinking about cash flow. >> okay. >> and cash flow was held together, but, david, the question will be, if you're not -- they did have very good deliveries, by the way the max. >> they did. >> not enough. the question, david, is, do they have the money to be able to right now, do they need to do an equity -- >> i do not know the answer to that obviously they have a lot of debt we all remember the seminole debt offering, right $25 billion?

>> the sunday night debt offering steve mnuchin says we're okay? >> a lot more debt than that, jim. >> they do. >> and because of the cash flow, investors short. dividend -- where's the yield now? they got nothing. >> yield >> no dividend. >> vicious i got to tell ya, i don't like what's happening there when you talk to them -- >> you think they might need to actual will have an equity offer? >> i would do that a new cfo. right at the beginning say, okay this is the time got to do this if you're going to do it, do it this quarter this is sending you out to pasture. >> they've hung on with them >> because it's an open story. why do i stick with boeing, the fact i'm a knucklehead because i geneuinely believe whe travel returns -- not doing it for china. last week, reuters china story,

president xi we didn't even speak to the man. anything united states does he counters like a giant chess match we're playing checkers they're playing chess. i believe boeing has to, the ceo has to get to seelattle, get to south carolina and tell us why this tkeeping happening. why? why does this keep happening >> i don't have an answer for you, jim. >> no, no. it's just -- >> you're just asking the question. >> jim, you're right he should be there what's he doing? is he, like, what is he doing? >> supposed to -- >> maybe he's working from home. >> oh! like the goldman guys that put up the big numbers. >> i guess the question would be these production issues are not new. went through it before with other aircrafts. does it really affect the long-term order pscycle, 20,

30-year order cycle? >> they are so lucky it's just airlines that's the luck that they have. >> duopoly blessed by the duopoly. >> morgan stanley versus goldman sachs versus -- losing shares left and right it's more pepsi versus coke and in the end people still drink soda i just have to tell you i'm sick about what's happening sick and everybody should be, because boeing's a national treasure. >> certainly shares will reflect the news this morning. we are going to get cramer's "mad dash," count down to the opening bell coming off of ten record closes for the s&p and in just 12 days. most for a 12-day period since the '60s speaking on that > 'rba ia me. >> wow. they g ...they're with me all the way through it. voya. be confident to and through retirement.

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machined machined. machined machined. 1998, where we talk about nokia all the time. >> in august of 1998 well, david, nokia is back, and, remember, talking about finland, deadline, for the date line. get this what is nokia? >> what do you meep, what is nokia? a handset provider >> why do they call it nokia >> i don't know. >> it's a river -- >> what i thought. a river. >> so good, basically saying, listen we got to raise our first half performance showing evidence of good cost control, benefited from the strength in a number of you are end markets. david the question is, huawei versus nokia >> i don't know. look at that chart there it is.

>> if you bought it right here. >> where's the iphone? iphone's not like, until around there. right? >> you know, out of it yeah last quarter, and wandering in the wilderness. >> a lot of telecom equipment. let's not forget it's not just handsets not handsets at all. i don't even know. >> it's systems. systems. >> right. >> david, i question whether this is the beginning of the -- well, maybe comes back trying to make. >> illcfo lucent. >> of lucent, when >> in the '90s. >> i don't remember. >> cfo, pfizer. >> really? >> yeah. >> emilio. fantastic guy. doesn't want that chasm. remember, it's coming? >> yeah. >> and don't bring that up wow. don't bring that up. so look -- >> telecom equipment not a bad lesson to learn, jim stick with a dominant company for a while and ericsson, nokia,

and -- >> like the triceratops of the world. >> yeah. and then -- the chinese -- >> could this be the revenge because we shut down huawei? talk to marvell tech okay like, hey, couldn't do business with huawei. nokia -- >> i get that, joke, by the way. >> all right. >> thank you. opening bell coming up after this by the way, catch us anytime, anywhere listen to and follow the "squawk on the street" opening bell podcast. start today. >> good read on "techcheck" a cnbc exclusive. san francisco fed reserve president. her viewon strength of the economy, inflation and the economy, inflation and the impact on in

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the opening bell is brought to you by -- j&j shares down. fda adding a warning label to the company's covid-19 vaccine warning of a small innocence of the rare neurological disorder known at bere syndrome explores modifications to the vaccine addressing the rare instances of blood clotting. >> yeah. they are rare.

of course, if you get it, it's not rare, it's terrible but j&j a lot of controversy versus pfizer and moderna people who received both doses of pfizer and moderna vaccine could be effective for years my problem with that, i spoke to a doctor, he says, how do you know we have no data. there's -- there's no science, but you have to believe that they are, they work pretty well, pfizer and moderna j&j obviously, when you look at the death rate, j&j must be doing okay doesn't seem like anyone the seriously ill. >> thankfully, if you get the vaccine, 99.5% or whatever the number is of people, unfortunately, dieing right now, ones who were unvaccinated. >> dr. fauci, quickly talking about vaccine policy this morning on "squawk."

>> there are always and we've seen it already unusual and even rare adverse events associated with vaccines with all the vaccines you'll see that every time it's been examined the conclusion has come firmly that the benefit of the vaccine far outweighs any risk of an adverse event. the vaccines that have been given emergency use authorization in the united states are all highly effective vaccines, and i think we can say that with a degree of confidence. >> meantime, opening bell here at the nyc, the big board, sonic shares celebrating recent launch of the sonic airlines cruise line etf, and last mile solution celebrating recent listing via spac. >> and emergency remember emergency. hundreds of millions of vaccines why is the fda still using

emergency declaration when they gave the biogen, believe me, become a real sore one 10-0 ten out of ten on the panel said don't use -- this should not be authorized, biogen. >> shouldn't be approved. >> and the fda approved it >> yeah. >> so how have thet not approved these vaccines because if you had approval you could order. if you were a major company, you could say, okay, listen. everyone has to take this. >> and now the government's going to look bether medicare will cover and that decision will take about nine moss. >> very questionable >> over in london, talking about having a vaccine, considered a violation of -- the magna carter, cribbed a lot of stuff from, david. >> it's in the uk. report out today disneyland paris will require a sanitary pass, that he call it, starting next week.

>> jpecs starting to makegood moves. >> stock went up and why you're saying that? >> the facts are changing in a more positive way. good set of facts. >> actually a nice breakout. >> it has. talking more of -- >> didn't you get the, 6:15, get the espn pricing piece 6:15 p.m. >> i think it's morgan stanley this morning, a bullish note subpoena that jessica? >> yeah. and i do like the fact -- >> talk about the parks. >> talking about the parks. >> overweight and i think the move yesterday was in part on the "black widow" numbers. >> unbelievable movie. >> box office and able to accomplish with disney plus having people pay. talked about a lot it yesterday. >> talking about people going out again. i think any parks commentary is a good sign. i do believe there are a lot of people in this country saying, do you have a physician? those who don't get

vaccinated -- you go -- if you go to a doctor, okay, a real doctor, and you say, look. i'm not getting vaccinated they say what's the point of the physical i don't need a physical. i mean, in new york, you have a doctor david, did your doctor say, i don't know trump didn't really like it. >> i didn't ask my doctor, just went and got vaccinated. wasn't something i really needed to ask my doctor about >> well -- >> everybody else in my family got vaccinated. >> jim, it is hard to imagine a doctor saying -- could you do that >> no, i can't do it i just can't do it. >> what do i do? >> well, how about we touched on -- looks like a new high. 151. >> and should be. >> organic revenue almost 13%, which if you don't follow pepsi, hardly ever happens to get -- >> a miracle worker. okay by the way, we have to hear from james says, james quincey, because i've got to tell you

i don't think taking share from just dr. pepper -- >> you think they're taking -- coke wait i'm sorry. saying pepsi taking share from coke >> i think so. by the way, you can't beat frito-lay. they can raise price they have that daily distribution system that is fantastic. they are taking aisle space. gatorade plus 20 all right, gatorade, i don't know if you like the new diet gatorade, david, if you work out, but it is sweeping the nation it was a great -- >> i'm listening listening about the gatorade. >> really fascinating, jim we talked conagra and general mills falling victim to input but starbucks. see the breakout on starbucks with coffee prices >> 50% of starbucks' sales in this country are cold. and could be told, remember, a deal with starbucks, cold is crushing it. people want cold look at that that's with a big -- david,

that's with china. >> what are you talking about? with his back to you. >> over here i'm over here. >> oh. i'm sorry. i'm sorry. that's with china. remember, we're all worried about china. nike. >> nike, apple and starbucks, triumph we worry about china with, because it's -- >> right >> we don't put tesla in there maybe we should. important to make large numbers for china. >> and goldman, tesla, it's a why. >> banks, guys, not performing well. >> they one. >> and amid praise for the quarters we've seen so far from jpm and goldman sachs. >> the update. >> they were up -- >> goldman should not be down -- it rallied 20 points into the quarter. this is typical. >> it did. it is typical. >> tomorrow, window of -- >> positive response to earnings regardless. >> jpmorgan was last week.

thursday, jpmorgan was 150 okay if the yahoos hadn't taken it up to 157, they'd do fine i recommended on "mad money" to -- i know you're too busy to watch. >> i am. busiest part of my dancy. >> i'm usually out of the pool by then. i'm drying off. >> wear it in the pool to listen to the podcast. >> our podpodcast? >> do you ever drive on the west side >> i heard the billboard changed. >> who's got it? >> it was "techcheck." now it's him. >> nice. >> how big is your head? 50 feet? 70 feet? >> can't get it through the doors. my wife said, no way my wife was horrified. >> you get that billboard all the time you get that bill board "all the

time"! >> and weakness in '70s. does that tie into inflation or not? >> well i think -- doesn't make much sense taiwan is semi oh, geez, up a couple bucks out in only a little advance with this 90 level, nvidia, i think people saying when they redid -- i can't believe people are still paying, thinking it's ethereum story forget that. texas instruments and analog devices the ones to buy if you want simple because they are i ott. iot. >> there's a fair amount of workout today. a piece on the supplemental, the child-related supplemental stimulus that will start going out this week. >> oh, wow. >> retailers that will benefit target among them. new high today. >> american eagle outfitters adviser on last week, the denim cycle. it's gigantic. >> yes.

>> looking at again simon properties david same sn is killing it. e american eagle, nice so glad you mentioned that this is one more example they get that money, don't burn it or put it in the closet they go to the mall and by they go to target. >> brian cornell, unsung >> unsung. white stone. >> yeah. >> pepsico. >> what does white stone and pepsico have to do >> in queens. >> he "was" at pepsico right. before he ran target do you expect everybody to keep up with you on that. >> yeah. >> get back to simon property for a second that is a move that stock more than doubled. >> david told you. stern activity. >> even prior to the pandemic, not to mex dntion during it.

the question, whether anyone would run. the a-malls hung in there, to your point and a lot of money potentially spent by the consumer. >> savings rate went down, ever hear that? >> i may have. >> one side of this speaking $33 billion in dividends -- $33 -- >> confident completed the acquisition. >> and now breathing life into things like forever 21 into jcpenney. that is, david -- you have to do plou mouth to mouth i know it's although longer -- it's -- >> cpr. yeah you want to compress don't necessarily -- >> yeah. looked like that first baseman of yours. >> elonzo, the polar bear.

>> jim, a ton of engagement on twitter when you tweeted amc buyers hold. expand on that >> this is a crucial level i mean, they can't have amc go down anymore, and it just keeps going down even though i think that, know, you could look at numbers for what disney did. i love the fact that disney broke out the numbers, by the way. another think jpex is doing right. theater business doing okay. not that bad ever since adam aaron wasn't going to do an equity offering how do you like the stunning decline of the stock a reference to mel gibson in "braveheart. >> uh-huh. >> hold the line. >> yes they are not holding the mean guys are into some -- the new dumps are extraordinary. >> you did one last week don't mention it again. >> a whole new bunch of them crtd, a nice pump and dump a really good pump and dump.

there's osat looks like a good pump and dump. i mentioned these, i had a thing last night how full gary gensler's played it. so i promised to point some of these things out. >> another volatile stock, virgin galactic space. yesterday, of course, watched it open up on the success of the mission, and then down after they announced plan to sell half a billion worth of stock the stock following those losses yesterday is down another, let's call it 5% there you see virgin galactic. let's not forget, this wan a one-time spac way back remember ten. still a very strong performer. one of the early companies to, of the wave, certainly. >> got too excited. >> despac. >> and you know it was a woodstock. >> yes. yes. it was. >> very much so. >> arc. >> yeah.

>> geez, they missed the q they missed the q. >> and a silver platter. >> can you arrange a sound board where we get to trigger our own graphics from here when that happens. >> a blue plate special. put them ahead of alfredo garcia. >> you mentioned amc, though imex, not the same business model almost at a five-month low, jim. >> wow amazing, been on every day hasn't helped. told a compelling story yesterday. doesn't matter maybe this is "delta force." delta. one of the reasons why "black widow" did so well delta. >> oh, i see you're saying it did well at home. >> well i mean, delta makes you feel like, say you didn't get a vaccine and -- really, because of videology >> i don't understand it either. >> the ideology.

maybe because you watched it at home because you're so busy -- i mean, this is one, by the way, people tell me that if you're in a room and you talk, like this, i give it to you. >> yes >> kind of not even tag you're it you're it! >> highly contagious. >> therefore, you'd like to stay at home and watch "black widow." look, i have nothing to say about scarlett johansson. >> good. we heard enough yesterday. >> and nothing to say about case -- kate winslet >> i don't know if that's true. >> i could go into a huawei just for a t-shirt. >> soggy trading here. dow's down 20.pisani. >> hot inflation number. good morning, david. 12 points difference in the s&p. considering how hot the number is, modest response. the sector, defensive tone with

consumer staples, health care leading early on tech up slightly banks typically weak happening going into earnings season the week before and week of earnings season banks sell off even though the bank numbers are overall excellent. very toppy airlines slowly trending downward this is in-line with a sort of peak reopening story united's weak with a downgrade at one of the wire houses and other airline stocks also weak royal caribbean, hotels on the down side. earnings season starting key story here is very, very high expectations. normally we get these numbers. analysts have numbers, expectations in theory, mother of all earnings reports here. talking earnings for second quarter 65% above second quarter of last year those numbers are absolutely huge as this seeing a big, big move

whisper numbers 80% year over year remember, gone, now back again underestimating actual numbers and anticipating really huge numbers coming in. so far they've been right. look at earnings beats today as percentage of the earnings fees by companies reported. goldman sachs, look at these numbers here 47% above. jpmorgan, 18 pepsico, 12% these are big beats. typically beat 3% to 5%. almost 20% beats for a long time now. typical for a typical company. earlier companies, companies that reported a few weeks ago also had great numbers kroger, costco, oracle the only one wasn't a big beat, fedex. they never traded above its report that day. june 24th. below that ever since. there's an indication, if you don't have a significant beat

coming in, you're not going to go anywhere for at least several weeks here meantime, the other big issue, higher costs heard comments today from fastenal raised prices, combating higher costs conagra, unusual, cut its full year guidance on higher costs. a big issue. haven't seen that in a long time instituting price hikes lagging cost increases as a result and going into a new fiscal year, and as a result, their numbers will be lagging, because they can't raise the prices fast enough to account for the higher cost in terms of the earnings numbers, even now you see great earnings numbers from goldman. not much reaction. same with jpmorgan pepsico -- up a little bit here. that's a new high. 152. yeah should be a new high for pepsico and conagra, of course, the one that actually instituted the decline in earnings guidance overall. you see here

good numbers with exception perhaps of conagra and, carl, not much reaction from markets back to you. >> thank you. speaking of little reaction, look at the bond market. treasuries fares after getting cpi earlier this morning at 8:30 eastern time take a look at yields. ten-year 1356. got to 138, about highest since july 6th but off the highs of date stay tuned for an exclusive on "techcheck" at 11:35 eastern time with mary daly. dow's down, and we're back in a minute. 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!

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i'm concerned about the prospect of the pandemic resurging. the delta variant expressed further could slow policy actions which show economic growth we've seen this play out in places like hong kong and australia and potentially places of europe. while vaccine takeup is progressing, it's not progressive across communities and nations including the united

states widespread vaccine ratings are critical to a thriving economy i want to urge business leaders across jurisdictions to do everything they can. >> that's david solomon on earnings call. of course, those are scripted. the opening statements are all scripted, obviously, he wanted everybody to listen to that. and the risk he did say, guys, we're in the middle of a significant economic rebound, that's not surprising to him by the lifting of restrictions and then vaccines. we'll see when they get to the q and a whether he says anything of newsworthiness and bring it to you and the report as well, to window -- >> right >> so everybody has the same information. usually, i tell everybody to wait three days. i do think goldman has stilled

itself as -- ever since 220.30, it was horrified with seven times earnings it was almost like everybody said, come on, we got to start delivering. i hope he trusts it as a hybrid. had a great year so far in the stock. more than 3% >> well, well above. >> yeah. >> they were horrible. citi, one of the few to trade -- >> did you present that level yesterday? >> i did i'm a little focused on it >> it's going to be fascinating again. solomon is with us at 3:00 p.m. eastern time rng,&pall we've gotten this moin s is down two points. we're back in a moment digital transformation has failed to take off. because it hasn't removed the endless mundane work we all hate. ♪ ♪ ♪ automation can solve that

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what's in stop trading >> well, if you listen to what they're talking about at pepsico, the leading gainer in the s&p, he's talking about taking shares of coca-cola it's not like they both should be going up, it's a zero sum game if you want to buy coca-cola, people are inspired. the only thing that is true, people are driving and going into wawas and buying mountain

dews and coca-cola and coke zero i would be a little more careful of coca-cola, as much as i like them >> right sounds like you're favoring pepsi for now? >> have to, because they're doing so well they can pass on any costs. i don't know if you had the new -- red hot -- burn your mouth -- >> flaming cheetos >> they're incredible. >> kids are addicted >> i know. fire extinguisher in the house always, david. >> jim, what's tonight at 6:00 >> tonight, i'm calling top at oil. i think oil could go 100 -- i've got a new concern. >> oh, my, could you look at this day -- this day is about apple? it's about microsoft it's about faang faang! >> remember faang! >> i created faang i never got credit for it. >> no you didn't

>> you tried >> it's not terrible there are things you don't get credit for >> and never had -- >> still mad about that ironman stuff. >> everyone else made hundreds of thousands of dollars. >> adjusted some, carl, never ends >> and never had the 120-foot yacht. he said how big is your yacht? i said i don't have a squat. >> boston whalers are nice, too. >> you know how? i said i'll pick up the check. >> we'll see you tonight "mad money" 6:00. we're back in a minute dow down 31.

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return to rugged. the all-new ruggedly redesigned 2022 nissan pathfinder. ♪♪ good tuesday morning welcome to another our of "squawk on the street. i'm carl quintanilla with david faber and leslie picker. markets trying to reclaim early losses dow's down 85. s&p down 1 as we're starting out q2 earning

see. big cpi, leslie. >> a little there. three big movers we're watching, shares of pepsi popping, raising the four-year forecast to help fight increasing sales in nor america. conagra under pressure to spike the earnings beat. the food producer cutting the fiscal 2022 four-year forecast due to inflation shares down 4% and nokia surging after announcing an improved outlook for the year on july 29th when it reports q2 results. shares of nokia up more than 8%. meantime, getting breaking cybernews. hi, eamon. >> good morning. carl, multiple cyber security experts are confirming to cnbc all known websites associated with the hacking group revil are in fact down this morning. now, these are sites maintained

by the hacking group which has been linked to russia in the dark web they use these sites to communicate with their victims to publicize some of the material that they've stolen all of those now are down, we are today, by two high-ranking cyber security officials here what you see if you try to go to an revil site says a server with a specified host name could not be found. try again. that saul of the information we have right now we don't know exactly why these sites are down we don't know exactly when this event began. although all of the sites have been active recently what we do know is that president biden spoke to vladimir putin last week about cyber security and some of the ransomware attacks that have been hitting american companies and we do know that a senior administration official said this last week about the expectation that united states might strike back. a senior administration official saying, some of them, that is, the activities that the united states will take will be manifest and visible

some of them may not but we expect those to take place, you know in the days and weeks ahead. so this statement from a senior administration official about activity from the united states expected to take place last friday today, today is a couple days later than that. so it's possible what we're looking at here is a u.s. retaliation. but that's not certain it's also possible that he there's russian law enforcement activity and also possible that r evil itself simply decided to go to ground. we'll wait to hear more explanation from the house and other officials we talk to for now, revil sites on the web now down >> eamon thank you, eamon javers earnings season getting under way, jpmorgan reporting their earning. wilfred frost has more >> jp mamorgan beat on both lin with a release of $3 billion capital markets a key area for

both both saw fixed income trading down 40% year over year but that was expected goldman has particularly shown investment in investment banking while jpmorgan in equity trading, both betteroverall for capital markets than expected. and showed while things aren't as great as a year ago, they're coming back down to a slower than normal which is a good thing. goldman's stellar numbers were also driven by asset management. a massive $5.1 billion in revenue, more than double what was expected, in large part due to equity investments. meanwhile, jpmorgan's net income of 12.4 billion slightly anticipated but able to hold the guidance here's jamie dimon on economic outlook. >> consumer, "stack" is up, kn confidence is up and they're there to go. and businesses equally are in

good shape probably six months behind america. so growth can go into next year and, you know, the ten-year bond goes to 3% growth, short rate goes -- it won't make any difference. as long as there's growth, consumer, jobs wages, those are all good things. obviously, the inflation can be worse than people think. i think it's a little worse than what the fed thinks. but that doesn't matter if we have growth. >> and we will discuss all of this including returning to the office from goldman sachs office with their chairman and ceo david solomon today 3:00 on "closing bell. carl >> we cannot wait for that, if we see you then if not before. wilfred frost. director of financial institutions steven bigger steven, good to see you.

>> mark. morning. >> with the trading, advisories, feets, which of the two big stories today is most interesting and why? >> well, i think the strength in capital markets, you know, clearly has lingered on thank you than most expected can that continue into the third and fourth quarters, we'll see the pipelines look pretty decent here so probably will. so i think that's, you know, just the broad strength of capital market has just been phenomenal for banks for the past four quarters now so, i think that continues you know, the reserve release, it's obviously very difficult to, you know, forecast what these banks are going to come out with you know, safe to say that very much over reserve last year in the first half they're going to trick that out. stellar environment, quality environment i think is as much of a story here, and if that continues it will also be a, you

know, nice tailwind for earnings going forward as well. >> so, do you think that the recent underperformance of banks relative to the broader market gets reversed in q3? >> i think so, you know, they get so lumped into being intrasensitive, clearly that is one lever for the banks but they have many other levers, particularly large banks you know, when you get a bit of a pullback like this i think it's more of a buying opportunity. we may have a perfoause in the performance. the comments from bank management on loan growth, whether the interest rate environment, you know, is going to be -- turning into a tailwind in the second half, we'll see. but i think, you know, the direction of rates is higher that's beneficial to banks and they have another, you know, few others that make the financials a good place to be right now. >> what is your expectation for the prospects for loan growth?

and do you have any read-through based on what you saw for today's reports for the other banks that are set to report this week? >> well, encouraging strength in credit card and auto lending in particular, you know, these are, probably the first areas we'll see, you know, they're somewhat smaller ticket items you know, as the expectation for -- for some of the stimulus is rolling off, for example, job growth is very strong. the unemployment enhanced benefits will roll off in september. you know, customers, consumers in particular have been flushed with cash. they haven't had to go to the bank for lending but i think as the travel and related continues to improve, we'll see better loan growth in the second half. and again based on the rolloff from the stimulus measures as well >> finally, one of the flasheads out of dimon's call was jpmorgan

will weather fintech competition. have you seen any more gran you layerty in exactly how the banks are going to do that >> well, not really. he did address the question and they're making a lot of spot or fill-in acquisitions it's been a, you know, a bit disappointing that banks given their knowledge of the space, you know, that they've been reluctant to make larger acquisitions and sort of change the landscape and the playing field. they certainly, you know, invest an awful lot of technology today just to keep up. so, it's been a bit of a disappointment in my view that they haven't been more to counteract that. but, you know, that could change and based on some of these many acquisitions that they've made, i think we'll see, you know, at least the playing field getting a little more level going forward. >> yeah, definitely starting to dip their toe in the water well, it's always a starting gun for our viewers.

on earnings season and today is an important day, stephen. steven biggar. boeing facing a new 787 dreamliner our phil lebeau has it what is it this time, phil >> leslie, it's the part of the plane that they're inspecting. boeing, what we're seeing is a cut of production guidance as of now, the company building about five dreamliners a month they're bringing that down, not all the way to zero, but they are bringing that down at least several weeks as they reposition some workers working on inspecting and potentially doing re-work, on a plane -- many planes that are builtand are i inventory. here's the issue, they're going to be inspecting and reworking the part of the dreamliner known as the forward pressure bulkhead

in the front of the plane. this is one that doesn't age it deals with that and how the planes are built in boeing planes that are built but not yet delivered that need to be checked. what about the dreamliners, hundreds of them pflying around the world, are they okay we talked to the faa they don't believe this is a flight safety risk they could change their tune in the terms of inspections but those planes continue to fly for the faa and boeing this is continuing to be what we've seen for several months a discussion about manufacturing quality and inspection of dreamliners. that's why we do take a look at shares of boeing, what concerns wall street is that they continue to have this problem where it comes to the faa and boeing so, as they try to work this out, it's unclear how long this will take, but in the meantime, they are going to be cutting

their production of the 787 dreamliner from five months down to a lower number. and fewer than half, fewer than half, of the 100 crime liners that have been built but not yet delivered, fewer than half of those will be delivered this year so whether or not we see a change in the company's guidance in terms for the rest of the year, we'll find out when the company reports its q2 numbers in a couple of weeks guys, back to you. >> okay, phil. investments looking closely at the debt side of that balance sheet as well. phil lebeau for us as we head to a quick break, here's a look at the road ma'am for the rest of the hour including ceo largest investments girl, cbre and the latest spac deals. and plus, crypto facing a slump dropping more than 40% in the last month and virgin galactic going down again following yesterday's

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solar power operator ulta's power is going public spac sponsored by cbre. the bill gives about's to the cbre portfolio joining me, co-founder and founder of altus let me start with you as awe

look for a partner going public. is cbre going to enhance the possibly to put your solar cells on perhaps more buildings which might have been the case with another spac >> yes, definitely are we considered the alternative of a traditional ipo. once cbre reached out to us this year, the magnitude of the 7.2 billion that cbre manages was incredible and it was love at first sight once we feirst met them and we'r very excited >> bob, i'm curious with the buildings that you manage, what percentage at this point actually have solar panels and how often is the conversation happening these days where at least they're considering doing along those lines, to lower their carbon footprint, for example >> well, that question gets to the heart of the opportunity here relatively low percentage of

those buildings have solar power today. but a relatively high percentage of the owners and occupiers of those building are looking for help in the area of sustainability, green energy, carbon knew neutrality one of our real objectives with this spac was to find a company that we could combine with that would help to serve our clients that was positioned such that could help them grow and positioned also with secular tailwinds. we think altus is percent for that and help cbre grow. >> i want to learn how it will help you grow and how it will work but i also want to come back to incentives here because there's been criticism and rightly so for spacs, in part because the sponsor's incentives aren't in line

you say you are incentivized, bob. what is it about this spac from others that makes you point that out in your investment presentation >> our spac is structured differently than virtually all other spacs. there's only a very small handful that have a structure written we only share in the promote. we only get our interest in the publicly traded company, agency the value of the spac or the value of the company goes up 10% above what the ipo price of the spac was and then grows from there. so, we are very aligned with our shareholders that's something that we wanted from the outset. we wanted that kind of dynamic we don't expect this to be the only spac. we want this to be a proud sponsor of the companies we invest with us >> and i'm looking in part to your revenue estimates going out to 336 million

you also say the proceeds from the transactions, i think our viewers have seen them, we put it up on your screen are going to fully fund your forecast in growth you're not going to need to raise any more equity? >> no, we don't think. about one half of energy made, and california has 100% of its energy coming from the sun and wind power and so this is significant growth that's going to happen. we had benefits of being sponsored by blackstone for seven years now. we had blackstone and cbre basic, all of their customers are looking for ways to power their businesses and activities with renewable energy. it's a very real thing happening now. it takes the buildings and parking lots that these buildings occupy and turns them into solar generation. >> and you become a distributed

power supply or you already are, because this business is already in existence. but are there any impet ddiment? we already about road blocks are there things that need to be overcome >> absolutely. a great question one of the interesting things we get from cbre is massive amounts of data. and they have data on consumption of energy from elevators, hvac equipment and buildings. when you take the solar that they have now, in the near future, we're going to be able to combine it with energy stora storage and we're ultimately connecting buildings with others and that becomes a smart grid. we're not there yet but that's ultimately where we're coming. >> bob, coming back to cbre, you

held that out, is that a new significant generator? not necessarily for the spac you've launched, but for the company itself >> this is going to be a very nice tool in our toolkit to serve our clients, something they really want so, of course, when we can come at them with solutions that are lined up with their desires, in this case, green energy sustainability which they're all pushing for us and others to help them with, it's definitely going to help grow our business. this is the kind of thing we're looking for strategically to interest in. >> lawrence, the price of solar installations has been coming down quite significantly over the last decade or so. is that a helpful aspect for your business? are you able to operate at scale, given some of price declines? and what are your expectations for the price of solar installations moving forward >> absolutely. we've both gotten much better at

building and constructing the systems but the equipment has gotten cheaper as well solar panels have come down about 90% in terms of cost in the last decade. really the important thing for altus and other companies in this space to be competitive with great power. of course, all of our contracts with 200 customers and counting sell power and it's easier to buy tell cheaper and that's a beneficial thing. >> and, bob, finally to come back to you on something we talked to you in the past, it does appear to be becoming clearer that a lot of companies are not going back to having people in the office full time i think hybrid appears to stay i'm curious what you're seeing from your portfolio and tenants and what your expectations are are we ever going to see the office buildings repurposed beyond putting solar panels on them >> well, we've seen an interesting dynamic.

for sure, companies are go to be using a hybrid approach, back in the office, some at home this is not a new theme that we're discussing here. i believe things are going to settle in at 80%, 85%. we'll get real evidence after labor day. but i still think that's going to settle in what we're seeing in the market place, though, the best office building with great hvac systems and elevator systems and the ability to move around the building efficiently, those buildings are becoming a real area of focus. and value. some antiquated stock will be repurposed potentially, or go out of use but a lot of interesting use are going to be happening in the go back to the office scenario between now and year end >> all right you have no plans to do another spac or is this the only one you're going to do as a corporation >> oh, this is a big part of our strategy, to sponsor companies

that we think can help us serve our clients and we can help them succeed. some will be through spacs we expect more spacs and several other deals that we mentioned a couple months ago with industrious. this is part of what we should be watching with cbre going forward. >> gentlemen, appreciate it. an all-time high on the nasdaq a few moments ago which is up almost now 17% for the year outpacing the s&p. in fact, take a look at the top gainers at the nasdaq 100 right now. china names getting a bounce back and pei,ps with the revenue up 13 year on year. we'll be right back. 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.

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welcome back now it's time for the etf spotlight taking a look at the ishares of consumer gooding. up nearly 40% over the last 12 months relatively fast with tesla and coca-cola.

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♪ welcome back i'm rahel solomon and here is your cnbc news update at this hour elon musk returning to the witness stand for the second day to defend tesla's 2016 from solarcity, also union pension funds and asset managers and it alleges that musk coerced the board of directors into using tesla's assets to rescue

solarcity from potential bankruptcy in california, wildfires continue to rage the beckwourth complex fire, over 91,000 acres and leveled dozens of home about 2500 firefighters continue to battle this massive complex of fires as strong winds continue to help spread the flames there south africa's premiere says the bodies of ten people were found in a shopping mall after violence was triggered after former president zuma's jailing and broadened over social injustice. and remember the ship that blocked the suez canal back in march? hard to forget, the "evergreen." it's finally in waters, ship tracking shows it's under way in the sea. david if you were missing clothes or sneakers, perhaps it

was there. >> thank you, rahel. the crackdown in china coming at a time when more companies were expanding their footprint. our seema mody has the impact. >> and now feeling the pressure on both sides we rez surrected h china sales index, remember this you can see it's underperformed to the s&p 500 in recent weeks as concerns over beijing's oversight continues to grow. however, latest commentary from u.s. executives on china has them fairly optimistic, nike ceo don donoghue, in june said the biggest concern we have is it consumer equity as consumers feel a connection to the nike brand. on the first quarter, caterpillar seeing robust growth in china and that government spending on infrastructure has fueled strong excavator demand

and while the u.s. firms don't have this listing problem that chinese companies do, steve orlens, the president, says they do need to adjust to legal and regulatory data. in china, it's very sensitive and highly regulated china's new laws he says is making compliance increasingly difficult. let's take a step back, for most of 2020 stocks, high foreign sales outperformed their domestic counterparts. however, since february of this year, worth noting companies that are more u.s.-focused have performed better goldman sachs crediting the u.s. stimulus as being more successful here than other parts the world. we'll see if that trend continues, carl, back to you >> thanks. great place to start with our next guest, joining us is k kellen dwyer former justice department division great to see you

>> thanks for having me on >> general viewers, at least on the china front, they're doing this crackdown for three sort of similar yet disparate trends can you explain? >> yeah, from president xi and the chinese state wanted to rein in the tech titans who are seeing as potential too powerful and then the second and kind of related is that of sovereignty, that we've seen not just china, but really every country, united states, the eu, india, realizing, albeit late, the value of data. and taking steps to make sure that they have -- they have access to data and also that rival countries don't have access to sensitive data so i think when in the case of data, the idea that a company has sensitive information about where chinese stipulates are traveling at various times and

various places, the concern that could somehow be exposed to u.s. investors and regulators is a very big concern to the chinese government >> general view, i think, this is kind of a shot across the bow for them >> yes >> and for some degree, they're not going to kill their golden geese. but how do we know when they feel enough is enough? >> well, that's the tough question, right? i mean it is kind of two conflicting trends, the chinese government, in their china 2025 plan has put a lot of emphasis into building and supporting a tech sector that can rival the united states. but at the same time, they don't want that sector to become so powerful and those kind of titans of tech can be so powerful to rival the chinese government so you do see a little conflict there. in this instance china apparently believed that the harm that chinese tech companies might feel in terms of raising

capital from this sort of erratic action was more in order to remind the titans of tech that they're chinese citizens first and businessmen second >> kellen, you bring up a good point about capital raising because it does seem that all of these crackdowns come either right before, during, right after a potential listing. what is it about an ipo in particular that seems to be kind of triggering these crackdowns from the chinese government? is it a sense, as you mentioned these companies have made it, they're listing or about to be publicly traded companies, is that something that we can look at for potential chinese listings in the future >> yeah. so, it's a little perplexing, the stated reasons, the stated concerns is data security but the chinese cyberspace administration is worried somehow going public in the united states, a company like didi would be forced to turn over sensitive data.

it's certainly true in the united states there's transparency requirements, but that doesn't necessarily involve turning over sensitive data of who is taking a didi ride and where. so i think the concern is more when you have a company this powerful and controls this much data if it's going public in the united states, the chinese government's concern is they might coz up to ugg regulators into u.s. investors. and that might somehow compromise their royalty or data in some ways so the government wants to either be able to block or discourage these types o listings or make sure that the data securitywise are addressed before the company goes public in the case of didi in particular, the fact that they were reportedly warned and asked to delay the ipos and rush it forward really made them somewhat that the china state

wanted to make an example of it. because what china does not want is for its industry to feel like it can act on its own. >> finally, the state department has issued a business advisories on supply chains and telling individuals and businesses who don't exit that supply chain they could run a, quote, high risk of violating u.s. law i wonder, does that point to an ongoing point of escalation between u.s. and china on trade? >> absolutely. i think you saw very aggressive use of export controls under the trump administration and the biden administration is continuing to do that. and putting them towards their policy priorities. and one that is shared by the trump administration is concerned about the chinese abuse in the western provinces so i believe there is a warning that went out to mike pompeo in 2020 about essentially having these in the supply chain and we're seeing that escalation continue >> fascinating

probably the most important business relationship around the world. and it evolves every day kellen, please come back i really appreciate it >> thank you as we head to break, let's get a check on virgin galactic falling again 17% from yesterday's session. after failing to sell up to $500 million in common stock. and rebounding a bit, up half a peenafrct ter being down much of the earlier morning. we'll be right back. stay with us

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netflix, it is the one thing that has trailed this year, failing to capture a new high since january. is it time for netflix to shine ahead of earnings? our traders break it down on trading nations on cnbc.com. more "squawk on the street" coming up. this is us talking tax-smart investing, managing risk, and all the ways schwab can help me invest. this is andy reminding me

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major coins in a correction period for last two months and trading volume as the largest exchange is falling more than 40% in june alone. that's according to new data out of crypto compare. but despite the drop, june still ranks in the top five months ever after record volumes in may. here to discuss low ventures jill carlson jill, thank you for being here do you think it will find its footing in these levels? and what do we make of the big slump in trading volume? >> yeah, no, i think it has found its footing at these price levels we've been range bound for the last several weeks in 30k and 35k in bitcoin and still in the blue chip cryptocurrencies i would expect that to continue. you know, we've held these prices through a lot of bad news over the last several weeks. i think it would take a lot to substantially lower from here.

and i think trading volumes, similarly, as you pointed out in the opening just now, sure, it's a slump relative to the last six months but if anything, it just goes to show what an exception the last six months have been in terms of the volumes. but both exchanges and more broadly otc sets that we've seen >> there's kind of this trifecta of concerns that people are talking about right now. you've got a broader regulatory crackdown across the globe, really you've got environmental concerns and just an overall risk of appetite from more volatiles assets you mentioned it would take a lot to drive crypto down frurt here what is it that you're thinking could be a potential headwind for this area? >> yeah, so, one of the key things i'm keeping an eye on is how quickly miners are coming back online. you mentioned environmental meshes and regulatory. what's going on in china is sort

of an amalgam of both of those, where you have them cracking down on bitcoin miners and the factors there. that causes a lot of supply pressure within bitcoin specifically, right? miners having to liquidate their holding in order to fund themselves as kind of a cap here as they look to come back online that's kind of one of the key things i'm watching if they don't come back online as one might hope over the last several weeks that could cause continued supply pressure. within bitcoin, that could be the whole market >> on the flip side, what do you think is a nice balance for crypto overall especially with the current environment, summer, you got more people going back to the office is it possible as more people pay more attention after the summer that things could get

more volatile again? >> yeah. and i mean, this is a summer unlike any other, right? as people are coming out of their homes for the first time in a year and a half so, i think there is some level of, you know, just depressed volumes and distraction there as a whole. as you're saying, we're seeing this more broadly across markets. one thing i'm more excited about here is more public market activity that will allow investors who maybe couldn't access crypto in the past for the first time to have to start to pay attention to some of the data points around it. we have coinbase earnings in a couple weeks, that will be interesting to see how that goes given the depressed volumes. regardless of haw tow that goesa will cause people to go to that data point and circles back to the digital dollar, and that will cause investors to pay attention to

other areas of core infrastructure and products that we have in the space outside of bitcoin. and of course, we have renewed discussion of possibility maybe an etf coming down the pipeline. that could cause excitement as well >> so within kind of the full picture of this crypto ecosystem infrastructure, potential etf, of course, the individual coins themselves, where do you see the most opportunity, looking at the second half of the year? >> yeah. i'm watching, of course, bitcoin, i think is usually the first mover in an updraft. and it tends to be the last mover until a downdraft. so if i'm looking for kind of bullish signals, bitcoin is kind of the first thing i'm looking at but then i'm also keeping an eye on cryptocurrencies, specific coins that allow you to move away from the dependency, and again looking at this environmental narrative. you have qing things like chia

solana that move away from the nature of bitcoin. but then as i mentioned, the public market base i'm long on coinbase we'll see where that goes. that's a long-term decision for me and, yeah, i'm keeping an eye on some other comes to market publicly >> yeah, coinbase now about $100 a share since its public listing. >> don't remind me >> yes and so many others that you mentioned throughout the year. jill, thank you for joining us thank you. coming up on "tech check," do not miss an exclusive with san francisco fed presidenmat ry daley, at the top. hour s&p and currently settling down at half a point. stay with us

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at xfinitymobile.com/mysavings or visit an xfinity store to learn how our switch squad makes it easy to switch and save hundreds. this morning on t"squawk box," we revealed virginia there is more behind the numbers. scott cohn joins us from the port of virginia in norfolk with that part of our story scott? >> hi, david

we ranked the states in ten categories of competitiveness. that means there is a top state in each category let's see how that shakes out our top states honor roll for 2021, in cost of doing of business, our most important category, it is oklahoma, which has the lowest electric rates in the country. in infrastructure, which this year includes, broadband and electric reliability, illinois is on top. for life, health and inclusion, it is vermont with the highest covid vaccination rate america's top workforce is texas, people are coming there in droves, particularly educated workers. idaho has the best economy including america's hottest housing market for business friendliness, that's legal system and regulatory climate, it is south dakota access to capital, no state comes close to california. and california also is on top for technology and innovation. massachusetts is number one for education. virginia, where i am is a close second and the lowest cost of living is

in mississippi interestingly, virginia, america's top state for business overall, did not come out number one in any category. though as i say it was number two for education. this is a game of points, 2500 total points and virginia had the most you can see where your state stacks up and all about our study at top states.cnbc.com guys >> how much did some of the recent trends play into this year's rankings? you mentioned that vermont, for example, has a high covid vaccination rate, illinois, i think it was, you know, was high on the list for sustainability how did some of the recent trends that we talk about with regard to business play a role here >> yeah, i mean, a good place to look is maryland, which is the most improved state in our study this year. we'll talk more about that later today. but we change the way we look at infrastructure, because everyone is changing that definition. we look at broadband, this year, which we haven't done in the

past we looked at the reliability of the electrical grid, both of which maryland does well with. they have done poorly in the past in terms of traditional infrastructure, roads and bridges. the fact they were modernizing that part of their system, that certainly helped them. that's one example of how this changing environment really changed the rankings this year >> fascinating, scott. and it is a joy to bring it back after the last year's interruption scott cohn with our top states for business scott, thanks. over to dom chu. >> stocks are mixed to start the day. the nasdaq and the s&p have both hit record intraday highs. the doi is in the red to start the day at least now, the technology sector is the best performer so far. while energy is among the worst performing sectors, down a percent or so, it is also the worst performing s&p sector over this past week and on a month to date frame as well now, among the laggards in that

sector, baker hughes on the oil services side, marathon oil and slumberburg as well, down a couple percent early on. the energy trade a focus today ept right here "squawk on the street" is back after the break.

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companies are struggling to find workers a new survey shows it may get even tougher in the second half of the year. not such good news, rahel who is back to explain to us what's going on here. >> hi, leslie. one expert telling us that this is the most active labor market she has seen in her 25 years of experience the survey out this morning from talent solutions firm robert hack showing of nearly 3,000 senior managers a little more than half plan to fill new positions and a large number plan to fill vacant roles or bring back furloughed workers. on top of that, the number of americans quitting their jobs is also at an all time high it is creating a perfect storm >> employees are very confident in their ability to find a job when that's the case, they're

going to be more picky and choosy with the jobs they take and that's why you're seeing all these employers have to really showcase what their company has to offer, not only in salary and compensation, which is important, put professional growth and career growth and other perks and opportunities to try to attract that talent >> so what are employers doing according to that same research, about 48% of companies are providing signing bonuses, 43% are giving more paid time off, and 40% are offering better job title titles, but it is not all about the dollars and cents. workers are becoming increasingly more focused on things like company culture and values things like how does the company take care of employees in terms of mental health and wellness. also, employee and network resource groups and employers say that they're becoming more flexible about where a candidate lives and broadening their search geographically. there is also some wiggle room, depends on the job, in terms of qualification, such as advanced degree and years of experience

david? >> rahel, thank you. rahel solomon. before we head to a "techcheck," want to check the banks quickly. we started off at 9:00 discussing what seemed to be quite strong numbers from jpmorgan and goldman sachs but both names as you can see are in the red fairly significantly. nothing from either one of the conference calls that would seem to be a reason for that decline. that will do it for us on "squawk on the street. "techcheck" starts now happy tuesday. welcome to "techcheck. i'm jon fortt with carl quintanilla and deirdre bosa we're live outside the courthouse as elon musk's second day of testimony begins.