sec sessions is not much of a bounce it is a turn after covid sparked a fear the tuesday turn around mantra we will show you what is moving right now. crude prices falling on the fear of the resurgence could sap demand as opec is ramping up production. the richest person on earth is preparing to leave earth. the countdown is on until jeff bezos blasts off in blue origin rocket really cool inside it has nice windows. we will take you there live. "squawk box" begins right now. it's tuesday, july 20th. good morning

welcome to "squawk box" here on cnbc i'm becky quick along with joe kernen and acndrew ross sorkin. the biggest decline since october of last year for the dow. all 30 of the dow stocks lower s&p down 1.6%. financials and industrials apple has had the most negative on the nasdaq. the fifth straight day of losses and worst losing streak since october. you are still talking hefty levels for the averages. the equity futures this morning are indicated up dow futures up 123 points right now. they were up by 100 points more just a little while ago. the dow up 225

s&p up 14. nasdaq up 53. treasury market is something to behold the 10-year at 1.2%. it has fallen below that to 1.17%. that is unbelievable to watch this pressure on yields continue 30-year at 1.8 the price of bitcoin fell below 30,000 for the first time since june 22nd. this morning, bitcoin at $29,441. ethereum is down 4.6% to $1735 pressure across the board with declines of 7% for litecoin and dogecoin the energy market was something to watch a bounce back for wti. the biggest decline yesterday for the oil markets. worst day since september and lowest in two months $66.84 a barrel.

energy stocks tumbling after the price of oil fell 8% crude stocks down 4% to 6% yesterday. adding to dramatic losses for the month of july so far the stocks regaining ground this morning. take a look at where things stand. you are looking at a little bit of a rebound airlines stocked punished. rebounding again this morning. you can take a look at where some of those stand. royal caribbean up those stocks, as i said, rebounding stocks plunged yesterday betting on a familiar category if covid cases rise. that is grocery stores kroger and albertson's jump. clorox and, yes, peloton is making the trade back. >> kroger up 5.7%.

>> i thought everybody bought their peloton or not by now. you really think this is going to happen? >> i bought a ton of it. >> it is on every table around here nasdaq there were a couple of times where i said i might have taken one of those home. >> are you kidding sme >> you couldn't get them any where. >> you steal the toilet paper from the bathroom, too >> i wrap it around my hand without anyone noticing. no i didn't do that did you read "the journal" today? we will also have covid, but it will be manageable hospitalization is rare. it is fairly effective the vaccines are and we will develop new vaccines we should get used to it it probably won't cause the same type of disruption that the first two surges caused.

>> nobody is talking about shutdown. >> the 10-year was ahead of this because we knew about the "d" word two weeks ago or infour wes ago. the consequences of the slowdown of it not as robust or reopening delayed somewhat what else would account for 1.16%? >> somebody hedging their bets by taking the other side of it in the treasury market inn investors who saw this weeks ago and thought this would happen >> the packed stadiums greatest earnings we ever had. none of that accounts for the 10-year. >> you are right >> the yield plunging. we will look into the abyss.

>> two or three month period which looks like the abyss and the question is what does the other side look like i don't know >> we will have greg branch on later. he made interesting points there are countries in asia and other parts of the world with early success. they were more lax on the vaccine. down to 1% or 2% vaccine levels. what happens to the supply chain is issues bad enough if delta spreads there. it that could led to stagflation you don't have enough of them to keep the recovery going. >> the discussion about booster shots being premature is not the case if this is where things are headed the numbers from the uk that said 60% of the people hospitalized are unvaccinated.

that means 40% were vaccinated which is concerning. >> the other news. apple is opening its offices later. they will bring people back effectively in october you are starting to see that kind of thing. especially in california and other places that becoming an issue. if people don't go to ra restaurants the way they did the government is not going to save anybody this time no more stimulus. >> bill de blasio said no. you will not see the same shutdowns as in the past who knows what consumer behavior does on its own? >> it wasn't where we were worried about the uk a couple of weeks ago. "the journal" showing foggy stuff and music. they're out in the uk. clubbing that's a good club town in london >> they also had 100,000 new cases over the weekend >> that's what i mean.

why is that happening? a lot of conflicting things. ending the mask mandate. i spoke to big money manager yesterday trying to get him to come on the show famous ones. you think i know about delta you think i want to go out on a limb and talk about delta? i'm not an immimmunologist and ibm shares higher. beat estimates and revenue grew 3% year over year. the company said heexpectation s revenue will grow rather than deliver. ubs beat expectations for the second quarter earnings as customers poured money into the

w wealth management. they should ramp that up with how we know that group has done the past couple years. the wealth management division with a 47% increase in quarterly profit and grew invested assets by 4% to $3.2 trillion coming up, a lot more this morning. earth's richest person getting ready to leave earth we will take you live to texas where jeff bezos is preparing to blast off in the blue origin rocket as we head to break, here is the wall street fear index the vix. it has spiked a bit coming back to earth we're coming back after this >> announcer: this cnbc program is sponsored by truist wealth. where meaningful relationships matter most. because it hasn't removed

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♪ blue origin getting ready to make history today how? by launching the youngest person, oldest person and richest person into space. also mark bezos. morgan brennan joins us from van horn, texas, where the blue origin flight is blasting off. he has dealt with it his whole life if he doesn't want to be jeff

bezos' brother, i would gladly be jeff bezos' brother and follow him around in case anything falls out of his pocket when was the alarm set for you this morning >> reporter: 12:45 a.m. central time i'm sure you are probably used to that. i can't complain >> right >> reporter: it is a really big day. as you mentioned, this flight is poised to make history jeff bezos, his brother mark, they say they are the best of friend will fly past the edge of pace wally funk and oliver daemen, a paying passenger, will be the first such paying sanpassenger launched on a u.s. company launched to space. blue origin rocket has flown 15 times before, never with people on board this is a first on that front. ahead of the launch, elon musk tweeting best of luck tomorrow

virgin galactic tweeting wishing the blue origin team a successful and safe flight from all of us at virgin galactic that is coming after richard branson's flight nine days ago an the crew trained for the past two days here. they spent a lot of time in the simulation capsule i got to go inside and experience a bit myself as well. the preparation for this, if all goes according to plan, is autonomous trip past the internationally designated start of space at the karman line which is 65 miles. the rocket will detach and land in the west texas desert as bezos and the crew unbuckle and float in for a few minutes and strap back in for the forceful ride back to earth 5gs which is faster than a roller coaster, parachutes

deploying and slough the capsule back to the launch site here that is all an 11-minute journey. it is set for liftoff at 9:00 a.m. we are a go for launch, joe. the date is significant. it is the 52nd anniversary of the apollo 11 moon landing that is what sparked his life long desire to go to space >> i remember it it was cool. black and white. it happened. i can vouch for that, for people who think the flag was waving or from wind. it happened, morgan. i can tell you about it some time i know did your grandparents tell you about that? if you have questions, send them to me. >> reporter: okay. >> all right we will check in with you

throughout the morning jealous? you didn't see it. >> i did not jealous. >> glimmer in somebody's eyes. let's bring in someone to talk about the investment of the launch joining us is morgan stanley's head of global shared mobility this is space tourism and maybe a bit of fun it seems light there are business implications to this, adam. walk us through the way you are thinking about this. >> sure. first of all, i want to say morgan is probably the first cnbc anchor in space that is definitely going to happen on the topic of 52 years ago, you are right, joe it did happen. the reason why the flag looks like it is waving is because nasa knew that it would -- they wanted the flag to be prominent. they put a metal strip on the top. it happened. we can see it even with

telescopes the business implications, the message to investors is pay attention. pay attention. do your homework maybe you don't go out and buy the first 10 or 20 space spacs right away talking about space today, andrew, is like talking about the internet before the dot-com bubble it was a very furtive time it is important to understand intellectually to get in early and research perspective understanding the drivers and markets and space origin and china and the drivers. perhaps not buy everything right now. >> if you were going to be selective and wanted to try to play this and invest and you do believe this is the future and this is what you described as the internet pre-bubble. how would you do it?

>> some mor morgan stanley's crd max on the services side, matt sharpe initiated upside 50% or so check out that report. perhaps they can come on more and talk about it. there are a lot of annames i wo' name on the program. expanding internet access to more areas doing satellite downlink to vehicles and it opens up more chances to collect data and deliver content. >> that's always the question. when do you get in if you get in early, there will be a lot of mistakes, i imagine, along the way. a lot of companies, if you think

of the pre-dot-com period that seemed big at the time that no longer are with us there are companies like amazon which, today, almost seems pre-ordained that would be the outcome. it really wasn't >> it wasn't look, if you were late in owning the names you mentioned, you did all right. warren buffett did okay buying tech names not so early. it depends on your risk/reward if you get in and own the moon shoots, pardon the pun, take the mentality if you invest in ten, eight might fail one would be a dud maybe one, if you are lucky, one of ten would be a multiply ier r compounder >> does the spac model mean more on the market or coming toward us >> it does

it does effect the thinking. it is something that people wouldn't have predicted. historically space with government and smart people on capital to do crazy things you are getting engine of democratic capitalism and retail investor and democratization it will result in successes that otherwise would not have a path to capital, right? it will increase a lot of shots on goal. maybe increase the absolute. we think it will be better for the technology over time than the average individual company's chance of success if you know what i mean. many of these may be white elep elephants, but the tech will do well the historic event of 52 years, joe, i'll ask where you were and

what you were thinking it is a public awareness and support thing. if china puts a woman on the moon, that will do more for u.s. education and test scores and s.t.e.m. and anything in congress could do. it is about humanity and celebrating human achievement. i think the more we have days like this, the more it is good for the world and it is good for business over time. >> just quickly, how do you decipher between virgin galactics, a company exploring space tourism and blue origin is doing space tourism and planning to have defense contracts to send satellites in the sky >> sure. we like to think of the space tourism as the funding strategy. the proof of concept innovation catalyst.

the thing that gets you to learn about science and avonics and all of the technologies and make hyper sonic point to point transport going anywhere in the world in under an hour with 1/10 the cost. is tesla in the roadster tesla had the roadster that was $150,000 and two seats it get early investors a chance to say i see where it is going i see the software angle for those that stayed on for the ride, they are happy today >> adam, good to see you i appreciate your perspective. we will watch at 9:00 a.m. >> thanks for having us. when we come back, a judge ruling in the favor of the vaccine mandate at the public university we will have the details on this one next. as we head to a break, let's look at the biggest pre-market

winners and losers in the s&p 500. cardinal health leading the way. and dow component ibm is up 3.8% mosaic and halliburton down with american tower ppg down 5.7%. we'll be right back.

a federal judge ruled that indiana university can request students submit proof of vaccination before returning in the fall the first case to determine if vaccins can be required to

return to universities the judge ruled the university acted reasonably the judge also pointed out that the students were not forced to undergo injections, but given a choice of vaccination or attending off campus hundreds of public and private campuses have enforced rules and are facing many challenges >> the question is does a pre-covid diagnosis, is that a medical exception? >> i don't know. that is a case by case basis, i guess. with the variants, there are questionsif the vaccination protects you more than the variant. >> you are saying there are people who had it and don't want the vaccine? >> yeah. i've had it. i have antibodies. >> if the antibodies don't show

up, can you test the d-cell or t-cell immunity? >> you still have memory in the immune system. we have time to figure this out. >> not really. a couple of weeks. >> then if it is two-shot regimen, it is another month. covid fears helped drive the selloff yesterday. we will talk about the numbers that caused the issue head to b at the wne ainrsnd losers of the s&p and the dow. >> announcer: executive edge is sponsored by at&t business our people and network will help keep you connected let's take care of business. okay, imagine this... your mover, rob, he's on the scene and needs a plan with a mobile hotspot.

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good morning checking the futures little bit of a bounce 190 p0 points indicated for the dow. not too bad from earlier we lost 700 plus yesterday

300, essentially, on friday of last week. that is like 1,000 points give or take. we get back 200. it is off the all-time high. we are not very far -- we're not anywhere near 5% correction. >> we have seen so little volatility and so few pull backs. let me try saying that again this catches our attention when you see something like this. a decline of that much we have not seen that in the dow since october of last year >> a point percentage >> percentage points 2% yeah let's talk about what is fuelling the market volatility that is the uptick of covid cases across the united states concerns about the delta variant. meg tirrell is joining us with this meg, we think we are through this and this may be proof we are not. >> reporter: becky, it is disappointing to see the numbers rising so fast 35,000 daily cases

up 47% week over week. hospitalizations rising week over week. up 31% to now more than 19,000 week over week deaths declined 1% now to 254 every day the areas of the country, metro areas, seeing the highest hospitalizations per capita in springfield, missouri and little rock, arkansas and jacksonville, florida and gainesville, florida. interesting news from uk yesterday. 60% of people hospitalized was vaccinated that turned out to be the opposite stat. of people who are hospitalized with covid, 97% are unsf unvaccinated one interesting thing that we're seeing and hearing from public health officials an across stats is the age of hospitalizations is declining because of the

impact of vaccinations the yellow line is the average age of people hospitalized with covid. the blue is deaths the gray is cases. you can see all of those have come down since the beginning, but since that peak we saw over the winter one concerning stat is the american academy of pediatrics notes that cases are rising as with everyone, but with children and making up a bigger proportion of cases. last week, 23,000 cases reported in kids. 16% of the total that is more than the proportion that kids made up since the pandemic began of 14%. kids under 12 are not eligible for vaccination. there is concern about spread in this group becky. >> meg, we keep saying the uk numbers were wrong yesterday flipped. it is 60% of those hospitalized are unvaccinated does that mean 40% of people there are hospitalized and

vaccinated >> reporter: no, i thought the same thing it was 9:00 in the uk. public health england got back to us. it turns out it is 15% who have had two shots who are hospitalized with covid from the delta variant. those numbers are from june 21st it is not perfect. it is not 40%. >> 60% unvaccinated. 15% fully vaccinated and the rest are parstially >> reporter: yes >> that is important that is still significantly higher than the 3% we see here is that something we will anticipate we seem to be a month or six weeks behind the uk. is there a way we prevent that from getting to the same level here >> reporter: we'll have to see,

becky. it shais hard to compare direct. one issue in the data is people mostly over the age of 50 were hospi hospitalized what we have seen with br breakthrough infections, they usually end up being in older people or people with weakened immune systems some people are recommending vulnerable people should be careful even if fully vaccinated. >> all of those things are logical and make sinense that is better what you are telling us, meg. 97% is good. deaths down 1% that may change as we point out. those are somewhat -- i think the market was down for a lot of reasons. when you heard 60% that was really troubling that the hospitalizations were at 60% of vaccinated people then you start question everything if it really is 97% or the

extenuating things you said, somewhere around 50% or lower. that allays big fears. especially if we prevent the worse-case scenario. if you get delta and it is similar to a cold for a couple of days, that takes the bigger fears of shouutdowns. it takes everything off the table. >> can you spread it to kids not vaccinated yet or someone immunocompromised? >> right >> it is much better >> gottlieb says depending on the severity of the disease is with the viral load. i don't like to talk about shedding virus >> reporter: the one thing about the 60% yesterday. this drives public health people crazy. we're talking about when more

and more people get vaccinated, vaccinated people will make upg up greater percentages of everything we have to keep that in mind what we are actually talking about. >> that's a fair point a very fair point. meg, thank you that cheer clears up a lot of questions. we have dr. vanita patel former white house director. dr. patel, where do you weigh in on this? how dangerous the delta varioan here >> becky, good to be with you. i couldn't agree with meg more than putting numbers in context. we know that from studies and have seen proof there are higher viral loads associated with infections related to the delta variant. this is true in unvaccinated individuals and early studies

globally that demonstrate this is true for vaccinated individuals as well. that is why you are seeing it can be easier to get infected and pass on the infection. having said that, all of what we are seeing with those hospital images and icus getting crowded again is largely with unvaccinated people and what you discussed earlier. any breakthrough potential of people in hospitals is with compromised immune systems the uptick in pediatrics and children who are obese or other chronic conditions, asthma they are definitely more vulnerable that is why you saw the academy of pediatrics take a blunt approach all school age children should wear masks above the age of 2 no matter the status. >> i would also say a lot of

stats that showed kids gained weight as a mass group during the pandemic because they were not outside and doing more things that's concerning. >> becky, this is the first time in primary care for the past ten years, we have been checking cholesterol levels in children and diagnosing and picking up diabetes as young as the age of 4. this is just unfortunately, like many, covid ripping off the ban d d-aid. >> dr. patel, there is debate if we should talk booster shots and the hospitalizations for people over 50 and older people with immune systems not up to snuff, should we talk about a booster shot for that category of people? >> all three of you have been on point in trying to bring this up thursday

the advisory committee for the cdc, this thursday, is meeting on this very topic i'm very hopeful that coming out of that meeting, we will see some recommendations that are in line with other countries where people above a certain age it is no question that nursing home patients and other frontline workers, health care workers and to your point, people above a certain age what does the evidence tell us 50 and older or 65 and older and 80 and older clinical trial data is strong that people who are over the age of 50 still maintain high levels of efficacy. i like to put clinical trial data in context. those were controlled in clinical mitigation efforts. this is a different time right now, becky the issue of a third shot of the mrna vaccine, pfizer or moderna, is an important topic. many of us, for the older

patients, immunocompromised patients and transplant patients are doing that we need recommendations to follow-up clinically of what is happening. >> so, the other question i was going to ask as you look at offices and in some cases starting to think about delaying whether they should open or not post labor day apple being one pushing to october. labor day seems to be the demarcation date for a lot of businesses how do you think about that piece of it? also, how should you think of the context of school? i do think you referenced kids that is one of the reasons you are starting to see the delays >> yeah, andrew. number one, i think -- i hope every school reopens in person it seems no matter what size school is planning to do that. that is important for working parents and have a semblance of normalcy they will be masked and have in

certain parts of the country more surveillance programs hopefully subsidies to allow that to happen schools can't test on a regular basis or have the money to test. directly to workplaces it will be incredibly important for any employer of any size to think about indoor spaces in a different way depending on the percentage of vaccination rates among employed i know some employers are rethinking vaccine mandates and requirements we know pfizer and moderna approval should be on the horizon. would you push that back until that is fully approved i have seen some employers taking that move employers should be prepared for workers to have valid fears and concerns of coming back. particularly if we don't know the vaccine status of the people around them. we are dancing around the breakthrough infections. >> doctor, we have to run. i heard companies reinstating

testing programs even for those vaccinated does that make sense >> it does make sense. not all tests are created equal and testing depends on the prevalence in the community. you cannot assume a negative test is enough a testing program combined with options with masks indoors and air quality are priorities. >> dr. patel, thank you. more coming up on "squawk box" the move in travel stocks that is moments away don't miss our interview with governor phil murphy on the vaccination ras d mh reteansoucmo we are back after this

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fighter futures in the green this morning.

joining us now i hope you turned the tv on at 6:00 did you stick your chest out proud? i was talking about you, eric. did you hear that? >> i did not i was in transit, joe. >> we're on the radio. we're on the radio anyway, i said i like aid lot of your thoughts. they were concerning to some extent i always try to summarize you and i don't do that well because you always say well, not exactly, joe but here is what i think you're saying there's a lot of countries that had thought they had gotten out of under this in part of the world where vaccine rates are way too low. they have delta unfortunately and unfortunately make a lot of components in the supply chain you're concerned that's something we're not taking into account? >> i am.

we focused on the domestic chain. we haven't had a shortage in job supply we have had a problem with job consumption. so we've had record numbers of openings the last months, 9 million. the hope is that we would see some organic abatement of that as the unemployment benefits rolled off and as we got into the school months. so the problem is, right, if we have the abatement and we have the delta variant acting against that, we now have businesses where job growth is occurring where they're competing for a dimin diminishing pool of workers, which causes further wage pressure, which is a decidedly nontransitory element of inflation. that's the domestic worry. the concern is larger. it's global. like you said, the countries that were most effective in the first wave in locking down early

and eliminating, in many cases, the threat of this and they enjoyed measures of freedom well before we did and other countries did. the problem with that is that it cau caused a lack of urgency in terms of creating an import around getting the vaccination so when you look at australia, new zealand, their vaccination rate is 11%. thailand is at 5%, taiwan is less than a percent. they were ill prepared to deal with this second wave with these variants that are much more transmittable and highly more reproductive than the original strain was these countries are key to our supply chains. this is a big blow to the narrative that inflation will be transitory, because it looks like the supply chains will be impacted for many more months than we foresaw as these economies lock down and as the flow of parts, components, raw materials slows to a degree that we hadn't anticipated. >> even with great global

growth, inflation is still an issue. if growth were to be below plan with inflation, then you've got the s word, which is a killer. >> you have the s word. >> which is a killer for financial asset. >> you got the s word. and it's not just global, right? we talked about how this might impact our own labor market as it may diminish what is already a low job consumption rate. >> so stagfla ttion is in your forecast or it's on the radar where it could be 30, 40% or still something to be concerned? you're not convinced it's going to happen? >> i'm not convinced but we need to keep an eye on it this will be reactionary depending on how these countries will be getting their population up the curve the other issue we need to be concerned about is that we keep -- the fed keeps, right now

is keeping the posture that is stimulating further job growth. >> right. >> the tools that they're employing to cure the labor market, the easy money, the asset purchases, that was all designed to stimulate job growth that's very effective when the labor market is broken because there aren't enough jobs but it causes the exact opposite when the problem is job consumption. now we continue to have robust job creation, but with a stagnant or dwindling pool of workers, that is a significant impact on inflation and the duration of inflation. >> oh, boy greg, we'll check back with you. thank you for that you point out the fed is supposed to have a dual mandate. we haven't seen much of that other mandate for a while, have we >> we may have this backwards, joe. >> yeah. >> they're focusing on one, and expected one to take care of itself, but they might have it backwards. the employment should take care

of itself and we should focus on the inflation. >> greg branch from veritas, thank you. >> bye. >>bye, greg. a panel of experts nasa administrator bill nelson, franklin institutes chief astronomer derek pitts and former astronaut mike massimino. apple is looking to release real estate to film movies

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futures higher this morning. we'll get you ready for the trading day ahead. new jersey governor phil murphy will talk to us about possible new protocols and issues. plus blue origin's historic launch amazon founder jeff bezos is headed to space. a live report from the launch pad as the second hour of "squawk" continues right now

>> good morning and welcome back to "squawk box" here on cnbc i'm andrew ross sorkin along with becky quick and joe concernin. >> take a look at futures after what was a pretty tough day yesterday. things are looking up today, dow 133 points up, nasdaq, 70 points higher and s&p looking to open 17 points higher the rising number of u.s. covid cases was a key factor at yesterday's market sell-off. according to johns hopkins data, 33,000 new cases per day over the past week, more than double the average ten days ago rapid spread of the delta variant is the primary contributing factor, according to medical experts and there is some upbeat covid news however, canada will now allow

fully vaccinated tourists to visit the country august 9th and end a 16-month ban visitors from countries other than the u.s. will be allowed to visit september 7th. and amazon plans to stop on-site testing for employees this month. the testing program would ramp back up if there were any change in public health guidance, which is a bit of a whipsaw, right i bet that plan was put in several weeks ago, and/or the thought was, and now they'll have to shift. nasdaq private market units, into a separate unit wall steet journal reports nasdaq will team up with goldman sa sachs, morgan stanley along with citigroup, investing in a stand-alone company. the paper says the deal is set to be announced today. if you remember, that grew out

of second market back in the day. >> adina, yeah all right, let get a check on what's moving in the premarket after the worst day for the dow since october. good morning, dom. >> worst day for the s&p 500 if you look at the reason why there's modest optimism in this morning's trade it's because on that base of closing down 1.5% at 4258 for the s&p 500, it hit a key technical level, 50-day average price for the overall index. it hit that level, bounced off there's a reason people care about that over the course of the last several months here it's held as a line of support. 4% pullback here, 4% pullback in numerous parts 9 to 10% pull backs in the 12-month period back last fall an area where people feel comfortable at least lagging

into a certain position there. take a look at the morning trade so far, some of these sectors hardest hit are recovering this morning, showing signs of stability. airlines on the travel and leisure front up 1%, norwegian up 2%, valero energy, i use it to represent the overall gas and oil complex, and deere is just about flat but trying to hold some steady motion here. deere, caterpillar, those type of stocks trying to rebound as well specifically treasuries and the difference between longer term rates and shorter term rates as this has gotten narrower, you can see here, we hit the lowest levels since going back to early february in this stage ten-year note yields and t two-year note yields by the way, if you overlay a chart of these bank etfs, you'll so an arc lower. specific chit ten-year note

yield and two-year note yield. bitcoin prices below 30,000. a lot have been looking at that 32,000 range for bitcoin prices. if there was a break below that, we could see more significant downside it's stable down only 3%, 29,758 there. by some measures, guys, record highs we've seen, we're now down, becky, roughly 54% from those all-time levels. lot of focus on what's happening with some of these bigger coins and tokens within that crypto occu currency sphere. >> you're still looking. at this point, falling below where we started the year but not far below that look at late last year, higher still than where we were just then talk about a wild ride this is something we watch every day. >> absolutely. >> dom, thank you. good to see you. along with yesterday's sharp markets, dom mentioned this. senior economics reporter steve liesman is here to report on

money managers and analysts can possibly explain a ten-year yield that's moving the wrong way. i would argue this is far more provocative than the moves we've seen in the stock markets. you're not surprised to see stocks come down 2% once in a while. to watch the ten-year fall below 2% is shocking. >> it is becky, from my reporting no single explanation is dominating for the bond market rally that, the best way to put it, defies the gravity of resurging inflation, while the reopening has bought not just yesterday but since the recent peak in march here are the explanations i'm hearing. the delta variant has a risk-off trade. you have peak inflation. you have a fed by the opec agreement yesterday and the chart i showed you that inflation is expected to come down a fed more series on inflation from powell's comments last week

and some profit taking by institutions i'll talk about that first, since fed chair powell spoke last week, the inflation came down. even while stocks have reversed it's down from 1.74 in march john canavaran from oxford says powell's comment have convinced that it won't be a long-term problem. this growing concern about the delta variant. everyone i talked to did mention delta in the conversation. it's a risk-off trade with fears that delta variant will temper growth selling stocks, locking in the required returns for pension funds for the year and then parking those funds in bonds thin summer trading exacerbates

the move along with the idea that a lot of the market was leaning the other way on the direction of yields. becky, probably the smartest thing i heard was you just made a lot of money in the bond portion of your portfolio. odds are that it will go the other way and take profits. >> yeah, we've heard that before, that they couldn't possibly go any lower, and that was the end of things. steve, what about the fed? the federal reserve and its own activities in this market. how much are they buying verse how much is being issued right now? how much does that explain of this >> well, they are taking a good part in the secondary market of what's out there but it's still a small part of the market there is a debate out there, becky. and i think you know who is on which side of it that everything going on in the bond market is artificial because the fed is in there buying $120 billion a month of fixed income securities of which 80 billion are treasuries and 40 are mortgages. the other side is look, this market has moved around a lot

while the fed has been making these purchases. it does seem free to express his opinion to some extent regardless of the fed purchases. the fed say big buy er, constant buyer and big owner of these treasuries but the u.s. bond market remains one of the largest, most liquid markets in the world. >> we look at big moves as being anywhere in a .3% range. we're still talking about a relatively tight range even though we look at these minor moves as a big deal when you're down this low. >> you don't see 10 or 15-basis point moves like this that often in the bond market it's usually some approximate cause. i want to say one more thing, becky. you've been doing this all morning. you're having this conversation on air, the conversation i've had with a bunch of people is about the lethality or how deadly this delta variant is.

>> right. >> there's a report going around from jeffries. you know about the reports that are out there. i find it amazing that the discussion about the fatality of a variant of covid is absolutely essential right now to the discussion about which way the ten-year yield goes. >> i guess. >> if it's not that lethal and ends up being like the flu, hey, maybe the bond market has this all wrong. >> that's what we've been talking about this morning, too, steve. thank you. it's great to see you. >> yeah. >> talk to you soon. >> bezos ready for blast-off amazon's founder looking to make space travel history morgan brennan joins us now with a preview of what's coming. morgan >> reporter: so much is coming right now, becky new shepherd rocket and capsule on the launch pad. coming up after the break, we'll have those, plus what this private space flight potentially historic flight means for the erl.ging space tourist market oval stay with us

♪ watch the olympic games on xfinity ♪ ♪ root for team usa and feel the energy ♪ ♪ 7000 plus hours of the olympics on display ♪ ♪ with xfinity you get every hour of every day ♪ ♪ different sports on different screens ♪ ♪ you can watch it anywhere ♪ ♪ and with the voice remote ♪ ♪ you never have to leave your chair ♪ show me team usa. ♪ all of this innovation could lead to some inspiration ♪ ♪ and you might be the next one to represent our nation ♪ ♪ this summer on your tv, tablet, or any screen ♪ ♪ xfinity is here to inspire your biggest dreams ♪ >> welcome back to "squawk box." morgan brennan joins us just outside the launch pad in texas. good morning. >> reporter: good morning, andrew as we do await the sunrise here, so you can actually see what's going on behind me more clearly,

we do have activity starting to pick ip. we just got video overnight of that new shepherd rocket we'll show you that right now. that new shepherd rocket that is mated with the capsule to begin its vertical launch a little less than two hours from now the rocket has been fueled the countdown has really begun for jeff bezos and his three crew mates to start moving around here at launch site one and board that capsule for this potentially historic flight. it is worth noting, though, meantime, that richard banson may have beat bezos to suborbital space but bezos is beating virgin galactic to market arianne cornell telling me two more flights to suborbittal spae

are already booked today's flight that culminated in a $20 million bid rescheduled that allowed 18-year-old paying customer to join the crew today. so many folks are honing in about service. what's the price blue origin still not disclosing any price or what those booked passengers are agreeing to pay right now. this is very much a topic and focus for competitor virgin galactic as well as that company's ticket sales are scheduled to reopen ahead of a service launching next year. subor bital space tickets are expected to price half a billion dollars in the near term meantime it is really the world tuning in to watch as the

richest man on earth gets ready to head to space and do so with 82-year-old wally funk, poied to become the oldest person ever to travel to space. damon, who is poied to be the youngest to travel to space and bezos' own brother, mark we'll bring you these developments over the coming minutes and hours. as of right now, it is a go for launch at 9:00 a.m. eastern time guys >> it really is -- been desensitized a little, morgan. it really is extraordinary the billionaires that funded a lot of this go up on the first flight that's still somewhat experimental branson went jeff bezos is going. it's really cool and really extraordinary that that's the way it's happening. and the virgin galactic flight i liked watching, it was awesome as david faber said seeing a rocket ship take off is really neat to watch and to be watching that with bezos on the top of it

is just -- i don't think we can overstate how unbelievable it is. >> the idea that one of us could go i'm not volunteering for it right now. but the idea that people you know could go ahead and go into space at this point, too, kind of hard to imagine. >> morgan, i don't know how long it takes where it becomes a profitable venture we'll talk to blajit in a minute i don't know go ahead, morgan. >> you know, there are a couple of analysts that have tried to put numbers, basically wrap their arms around their best guesstimates of how big a market for space tourism and subor bital space tourism could be it's not terribly large per se compared to other industries or industries specifically within the space sector that being said, whether it is blue origin or virgin galactic,

the name of the game here is reusability. the ability to, except as they have put their founders on these flights, show the safety, instill some confidence more broadly in the public and get to the point where production scales, the price has come down. this becomes more mainstream you're able to collect that data as well. in the case of blue origin and bezos, this is one piece in a much bigger vision to, as he calls it, build the road to space to enable future generations to essentially colon ize the final frontier the suborbital piece of the puzzle is a potential revenue generator to help fund rockets, space habitats, lunar landers and the like it's supersonic hyper travel around earth. >> bezos has pointed out these are the steps you take to build

for, you said, future generations. we may not see the promise of course, maybe we'll get to live a lot longer. they have to work on that, too henry blagett, co-founder, we were talking henry earlier about some of the similarities to the internet age in the '90s, which you're so familiar with and how it starts slowly and you have no idea how it's going to play out. i would think this would have a much longer time horizon in 20 or 30 years it's been staggering how quickly you see that do you expect something similar from what we're seeing in the space arena, for lack of a better term? >> well, thanks, joe i would say that i share your

excitement great to hear your excitement. we've had remarkable tech technological accomplishments the last few years of which this is one of them it's a very good question. this is the development cycle of this space is so much slower than it was for the internet you remember in 1995, 1996, dozens of companies launch and hundreds, then thousands and you have these monsters built. this one is slow jeff bezos, an investor insider, he took me on a quick tour of the early blue origin factory, showed me the rocket in its state then they were just beginning to test it that was a long time ago it's the same as elon musk my guess is that it's going to be slow. to morgan's point, the next step here is, yes, you'll get a lot of people who will be excited to do it because nobody has done it it's really cool and then there will be further developments, hotel and things like that. >> oh, yeah.

so that's a purely space tourism. hotel on the moon, i guess these are future generations, i would think, unless we really proceed at breakneck pace. i'm trying to think of all the other type of money-making ventures you could have. they get more and more sophisticated and seem to have a longer lag time. it would be nice to go transcontinental in a couple of hours. that's maybe more virgin galactic that's more than just an 1 11-minute ride you can think about that then i want to talk about when do we start developing things in zero gravity because there's chips and pharmaceuticals and all kinds of ways that -- things you can do experiments that you can do out in space that's something and then i guess the holy grail eventually would be, i don't know, can you mine something out there, henry, that -- things

that are precious here that are in abundance out there you're talking decades or even centuries for that, i would think. >> i would say some people in the industry would certainly say decades, no centuries. there's a lot of excitement around asteroid mining, how to do it. pretty eye-popping calculations about what it could be worth if you could actually begin to do it certainly that's something that a lot of entrepreneurs are exploring in the early stage. >> but it's not going to -- the promise of what we saw with the internet will not be realized from space for generations, wouldn't you think, henry? >> that's right, it is decades it takes a long time basic comment but i remember going to a space conference or space thing about, i don't know, five, ten years agoasking, how close are we to colonizing, getting in the solar system? and the answer is look, there's

no way to go fast enough to make it other than a one-way trip for a generation to live in space forever. a lot of the skepgs we see on tv all the time unfortunately are still science fiction. >> so you're pretty smart. because all the excitement about ufos and other life, i said for a long time it's hard to get around that equal mc squared so to get on the other side of that, 186,000 miles per second, it's really hard how did anyone even get here to watch us that's why i'm not convinced that they're here quite yet, henry. i don't know whether you are. >> no, it's impossible i will believe that until somebody figures out how to do it some other way. >> i'm looking to china for the ufos and probably not russia i'm looking for china. i don't know

i could be -- orson wells had people believing it. you never know henry, thank you thank you as a thinker deep thinker. >> thank you great to be with you an exciting morning. >> he needs to think more about bitcoin but about a lot of other things, you're very -- thanks, henry. >> heard him laughing there at the end. >> last laugh. >> that's right, he did, unless you laugh right now. go ahead there you go united set to report after the close today. we've got a preview of what the company may say about new covid fears. that's next. as we head to a break, let's take a look at s&p's winners and losers ibm is leading the way up 3.8% very strong numbers after the bell that's a dow component, too, part of the reason the dow is up 133 points in the futures this morning.

welcome back to "squawk box" this morning take a look at the cruise lines this morning, because they are rebounding, at least a bit you're looking at norwegian cruise lines up close to 2%, carnival corp, royal caribbean

in the same league there and then take a look at airlines as well. they seem to get crushed yesterday but again seem to be coming back a bit this morning alaska air there over 2% united airlines will be announcing quarterly earnings after the bell today renewed covid fears, phil lebeau has that front how quickly do these fears show up in the numbers? >> it's hard to tell, becky. leisure travel will not be impacted in the spike in covid delta variants, at least not immediately. if this lingers or gets really bad, that could change the leisure destinations, most of those are locked in take a look at the airline index, you see that it's been pulling back at a pretty steady clip here over the last month or month and a half and part of that is because there is a growing realization when it comes to international

travel, it's not going to be coming back until well into 2022, if not '23 and '24 a few things weighing on the airlines right now first of all, it all centers around whether or not as covid-19 delta variant cases increase how much is that going to slow corporate travel, which is expected to increase heading into the fall? do companies say we're not going to send you out on the road, or do executives say i'm good we continue to do virtual meetings for the time being. then there's international demand that is going to be delayed, no doubt about that as you take a look at some of the airlines that will be reporting earnings this week, and we're talking about southwest, american, alaska. they all report a little bit later on this week in the international component here, especially when you're looking at american, that is the concern, is that they need that international travel to come back but the cdc issued a warning to people who want to go over to britain. look, it's a level four. if you don't have to go, you

shouldn't go if you are going, make sure that you're fully vaccinated. against that backdrop we will hear from united after the bell today. like the other airlines it, too, has been under some pressure in the last month after we get the results, you do not want to miss our exclusive interview. tomorrow morning we'll be talking with united ceo scott kirby exclusively here on "squawk box. a lot to discuss with him. not just the immediate outlook when you look at maybe the third quarter and leisure travel that's safe again, guys. it's the longer-term impact in terms of corporate travel and international, that's the concern when it comes to the delta variant. >> and that's where the money is, too, where the profit is, too. >> yeah. >> we'll hear a lot more about that and looking forward to that tomorrow thank you, phil. >> a quick earnings alert for you this morning del component travelers, big beat in its latest quarterly earnings in the top and bottom lines. the results were helped by improved investment results, higher premiums and lower ka tas

troef y losses that stock right now down by about 37 cents we'll see where things go as we get closer to the opening. when we come back, new jersey governor phil murphy will join us for the latest statistics on the spike in covid cases in his state stay tuned you're watching "squawk box" and this is cnbc 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.

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>> welcome back to "squawk box." i want to talk markets yesterday was the worst day since october for the dow. markets are finally accepting that growth is peaking for more on the markets, chief investment strategist at icapital network the market looks like it's going to rebound a bit this morning. you think this is about earnings peaking? you don't necessarily think this is simply about the delta variant? >> well, good morning, andrew. i think it is but a couple of things first of all i will say the pullback we saw yesterday, i think, is completely predictable and also not surprising. the reason i say that, look at

what's been going on in the bond market the bond market has been flashing warning signs for weeks. if you look at the bonds earlier in june, let's say, they were moving down because maybe we were pricing in -- pricing out, i should say, the inflation and saying this is transitory. if you look at what's been driving the bond market in the last few weeks, it's been the fall in real yields. that tells us that the markets are concerned about growth expectations and so much so that the yields are back to levels that we last saw prevaccines, prerecovery back in february i think it was only a matter of time that this was going to show up in the equity markets and the other thing, andrew, i would say, that is just not related to the delta variant is just the positioning take a look at how exuberant it is in the equity markets over $500 billion in in flows, whether you look at hedge fund positioning, near record highs we were coming in, in a period

of time where news flow wasget ing potentially worse. i wouldn't sound an all clear on this just yet. >> that's my question. if you're expecting more to go, how much more are you expecting to go on the downside? >> look, i think it really depends what happens in the next couple of days the reason i say that, we're right at the 50-day moving average on the s&p we hold these current levels, it is possible it ends up being this 3, 5% type of pullback that's quite shallow, but i'm a little less skeptical. what i would really like to see to sound an all-clear is i want to have a little bit more clean-up in positioning. and i'm talking about hedge funds specifically as i mentioned, they're at near record net longs two sectors in particular worry me a little bit. first of all, software space net longs in software are significant and we've not seen a massive unwind of those

positions. we certainly have not seen that play out in the markets just yet. meantime the valuations of some of the software names are 12.5 times foors forward sales. i would like to see that cleaned up the other is industrials you've had the industrial sector sell off quite a bit but they're hanging in there we are getting the index later this week which may suggest the manufacturing activity is peaking. if that's the case, that's a sector that's an overweight for hedge funds as well and one of the most expensive ones in the s&p. we see some of that cleaned up, to an extent this is a broad-based, aggressive by for now. you could buy a few things selectively, like the banks, for example. >> to put a fine point on it, how do you think about this issue of the delta variant at this point >> yeah. the delta variant, we shouldn't disregard it if there's one humbling thing

that covid has taught us, as quickly as we want it to pass, it's not passing and it's definitely lingering we shouldn't brush that aside. in the markets, the ten-year treasury is back to prevaccination levels. negative 1%. that is not the state of the union when it comes to the vaccines look at, for example, 68% of the population is vaccinated with at least one dose in the u.s., that number is 56%. so i think it's a very different situation. and i will say that the markets, i think, are discounting a little bit too much in terms of the growth slowdown. i think that's overblown but it's squaring these fundamentals with the positioning here. >> anastasia, great to see you this morning thank you. >> great to see you, andrew. >> kind of interesting i was looking to see the s&p covid scary and delta is scary and you worry about its impact

on everything. so bond market is back where it was. s&p, though, think about that for a second 42.58. the lows, for lack of a better term -- >> from last year? >> yeah, 2,400. >> wow >> if it's coming back in a nasty way -- >> but i don't think -- the lows are not -- >> i don't either. you know what i'm saying bond market is back where it was. we've gone from 23 -- >> we've come a long way we know we have vaccines and the ability to change. >> i sent that out i tweeted that people are crazy that are out there in the twitter sphere. i tweeted messenger on technology for vaccine is a awesome and these people are crazy. you're putting squiggles in your blood stream is this third grade? you refer tothat as senior year coming up, new jersey

governor phil murphy on possible new protocols. >> you finally said something that got a rise out of somebody. we've been trying for weeks and weeks here and you're looking at a live shot -- they send these pictures of squiggles you're supposedly contaminating yourself with. get a clue it's a little stretch of -- i actually studied that stuff. >> live shot of blue origin's rocket getting ready ttao ke off from van horn, texas we'll bring you coverage of the launch and updates "squawk box" will be right back. 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? become an agent of innovation with invesco qqq

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welcome back to "squawk box. comcast chief brian roberts met with viacom's chairman to discuss a streaming partnership for international markets according to people familiar with the matter. wall street journal reporting the meeting held around the end of june in new york included viacom's ceo robert bakich it would allow the companies to enter nonu.s. markets together partnership talks come as comcast and viacom cbs are looking to expand.

this has caused speculation if there's something else in the offing i would caution folks it would be very, very challenging in this regulatory environment to try to pursue something more meaningful that's why, in fact, if talks were to proceed it were around international streaming and the like. >> and that's why you would want to get it out so quickly, with an exactly what the meet ing is about. the minute you hear there's a meeting between brian roberts and shari redstone you're thinking -- i don't know whether you believe what you hear, that brian says he doesn't think it's necessary to pursue something like that. kavanaugh, cfo, saying we like the assets, the hand we have right now. i don't think we need to give anything back. if you take that at face value but you never know with these guys you never know and all of a sudden -- but you're saying -- >> the one thing you know -- >> you're saying the concerns -- >> you saw what happened to the stock last time.

it was about a month and a half ago. immediately sells off. >> how clever you can get with carving up a bunch of assets of that kind of size. i think it would be challenging to do the full -- >> combo. >> full bite if you will b but, you know, crazier things have happened. >> i would love to meet spongebob one day. >> i had to interview him. >> the voice you mean? >> no, no, i met. >> the actual spongebob? >> big guy they told me to interview him for three minutes. he's not allowed to talk because he doesn't have the same voice that was an interesting interview. >> i want to meet them all sandy, squidward, gary gary doesn't talk much. >> neither do the guys who are filling in, in those suits when they're standing there good luck interviewing them. >> gary goes -- remember gary? >> yeah. when we come back, new jersey governor phil murphy on

co covid, tacks and much more. next hour, jim paulsen on yesterday's sell-off this morning's bounceback, earnings and all things markets. futures up by more than 200 points after a more than 700-point decline yesterday. so far so good if you're a bull. dow futures down, s&p futures up 23 nasdaq up by 23. "squawk box" will be right back. ♪ dream, dream that's the thing to do ♪ ♪ music ♪ when you see value in all directions, you add value in all directions. accenture. let there be change.

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welcome back, everybody. new jersey governor phil murphy has confirm ed covid deaths. he has pushed those who are not vaccinated to get the vaccine as the delta variant continues to spread he joins us right now. phil murphy is with us this morning to talk more about this. governor murphy, everyoneis pretty concerned about the number of new cases that are com coming, the delta variant being more likely to spread and more deadly than we had been before but new jersey has a pretty high vaccination rate, 70% of adults there have already gotten one shot on their way to being fully

vaccinated what are your concerns at this point? >> good to be back with you all. it's good to see you all in the studio together for the first time in a long time. listen, this has been said a lot of late. we started saying it a month or so ago this is now, in new jersey, a p pandemic of the unvaccinated in fact, we're well over 70% of folks who are fully vaccinated we've got probably 350 folks in our hospital we keep them in our prayers. i venture to say they're all unvaccinated i would just continue to say, plead with people to get vaccinated we're the densest state in the america. that's normally a good thing not in the pandemic. variants are all over our state. i would beg people to get vaccinated if they do so, it doesn't mean you can't get covid but it does mean overwhelmingly you're going to stay out of the hospital and, please god, stay alive. >> governor, people always say you're from the densest state. can you use a different word, please you mean there's a lot of people living close together. can you make that a little

clearer? i have to fend off enough jersey criticism. you come from the densest state. >> joe, i will work on that. unlike spongebob, i will answer your questions. >> oh, you're watching, that's nice. >> we like that. >> we're not dense out there. >> sometimes sometimes. so, governor, let's talk more about this, though we have seen places like los angeles county say they're going to einstate or have reinstated the mask wearing mandate for inside new york city is not doing that at this point. what are your plans on that? what's your thought about whether you should or shouldn't? >> for the time being, i hope we don't have to do that. we are, i think, the only state in the nation that didn't lurch over the past 16 months, meaning we went forward and then came back i hope not to do that here if we have to, we will the good news is that these are all metrics if you look at hospitalizations, positive rates, folks who are severely

sick, in the icu the rate of transmission, et cetera while it may not be where it was a few weeks ago, these are still largely in very good shape and we continue to vaccinate several thousand people, if not more, a day, with their first vaccine. we're literally knocking on doors in a bunch of communities in the state and have been for many weeks so i hope, becky, we're going to be able to stay where we are but you never say never. this virus deck at a times the te terms, not us. and we'll continue to watch it like a hawk. >> what are you thinking about the school year? we have school starting about a month for now, at least high school and younger kids. are kids going to be wearing masks and what's the date going to look like >> we put our recommendations out for the last month and the time being this is not a recommendation we want school to be open, full bore, monday through friday, as

close to normal as we can get it but for the time being, we're recommending no masks. but we are allowing -- we've got an advantage in new jersey we've got over 600 school districts and we've said to those districts if your circumstances locally suggest or require you to be stricter, you have every right to be so, again, it's going to be -- the thing about masking is you can watch that -- the data like a hawk but putting in an hvac system or building a new building, that's a decision you can make at the last minute. we'll have to monitor it i'm hoping we can go back. >> you're recommending no masks even though no kid under 12 will be vaccinated at that point? >> that's our recommendation at the moment we're giving districts the flexibility to take a step more strictly than that and we'll continue to watch it it's the middle of july. we've got six weeks on the clock. this is something we'll be watching day-to-day between now and then. >> what would change your mind about that with the delta

variant? i realize districts can do what they want but that puts pressure on every single super to make a very unpopular decision, one way or the other, something that will irritate half the parents am their town, no matter what they say. >> having said that, working with districts and giving them latitude has worked pretty well for us over the past 16 or 17 months. >> the superintendents, it's not worked well for them it's probably worked well for you guys but superintendents i've spoken with say not so great. >> i'm not sure i'm going to agree with you on that one what we would need to see, we need to see a wholesale deterioration in the health data we're seeing it trending in a challenging direction because of the delta variant we've not seen that wholesale deterioration and please god we won't. the sooner people get vaccinated, the more likely we won't see that. >> governor, do you have any idea what the vaccination rate looks like for state employees and is there any new thoughts

about requirements of vaccinating state employees? >> i don't have a number off the top of my head i would say there's no reason to believe our state employees are not as vaccinated as the state is and where i think in terms of big states we're at the top of the list and in the top five or ten of all states. and that's something we'll continue to monitor. for instance, have a different reaction in a health care setting, university hospitals, the one hospital we oversee. they're now requiring vaccinations that seems to make sense to me it depends on which part of government i would continue to like to see folks to get there of their own free will. the good news is skepticism has gone down over the past six months it's not as low as it needs to be and there's a lot of irresponsible, whether it's social media or talking heads on other networks that are saying things that are putting people

in harm's way, that's not good either this generally, slowly, and steadily, has been getting there and i would hope people would get there of their own free will. >> the technology of mrna vaccines, it's promising i think about senator rand paul who said i've had it i've had covid i'm not getting the vaccine. there's some truth to saying that for people who are maybe not at risk because they're young or have no underlying conditions and if they've already had it or have antibodies, they feel it's redundant or not necessary to be required to take the vaccine to go back on a college campus. how do you walk that line? >> i would say with great respect to the senator and anyone else who feels that way, i don't think we know enough to

draw that conclusion i spoke with medical experts every -- almost every minute of my life. the information is incomplete. what is not incomplete, we know these vaccines are safe and they work even if you've had it. we have a family member who had it he's vaccinated. go out get vaccinated we'll learn more about this over time but let's not speculate. >> governor, appreciate having you on this morning, from the densist state, population wise what's moving in markets after yesterday's big drop take a look. biggest gainers in the s&p don't miss our coverage of the big blue origin launch we have the squawk space force bringing you all the action. "squawk box" will be right back.

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new projects means new project managers. you need to hire. i need indeed. indeed you do. the moment you sponsor a job on indeed you get a short list of quality candidates from our resume database. claim your seventy five dollar credit, when you post your first job at indeed.com/home. good morning futures are pointing higher after that big sell-off yesterday. the dow coming off its worst day of the year. this morning we are seeing green across the board what fueled yesterday's market volatility for one, ooh fears over the increasing spread of the coronavirus delta variant.

live report with the latest numbers coming up. and we had the right stuff now the prime stuff. f former amazon ceo jeff bezos, his brother and two more passengers getting ready to head to space in just about one hour from now we'll bring you all the action as we get ready for this historic moment. final hour of "squawk box" begins right now. >> 2001 but it's like it's a cheap knock-off of what's supposed to be 2001, is it not good morning and welcome to "squawk box" here on cnbc. live from the nasdaq markets sm. i keep waiting for the --

♪ da da ♪ >> and if you're waiting for that, you're going to be waiting a while. >> they made the efforts. >> you heard andrew talking, futures in the green dow saw its worst day of the year yesterday economically, sectors tied to the nation's progress against the coronavirus got hit, including airlines, cruise lines, hotels and restaurants. this morning, treasury yields are under pressure the yield, one of the biggest bond rallies we've seen in a while. you can see the cruise lines but we're down 1.8 i'm sorry, 1.18 on the ten-year. and bitcoin was stabilized in the low 29 and now is 29,7, something like that. i think that 60% number that we

saw that we now -- it's in error. if 60% of the hospitalizations in the uk were from vaccinated individuals. that was one number. then they came today and said they had them backwards. >> right. >> it was only 40%. >> not even that. >> not even that and here it's 3%. >> only 15% of the people who have had two shots that are hospitalized and i think this is all sinking in today to some extent. the abyss, if you don't turn the lights on when you're looking into it, you need to see what's really there and i think we're re-evaluating. >> i think meg's description is really important earlier. >> if it's 3% here -- >> 3% of people who are hospitalized with covid that are fully vaccinated. >> fully vaccinated. much smaller number. >> people don't want to hear those numbers. >> by the way, that's why the vaccinated population is a

huge -- huge and growing part of the population you're going to see more numbers. jeff bezos, his brother, and two other passengers, one the youngest ever going to space, the other the old est, are all set to blast off to space in the blue origin rocket in an hour's time it represents years of work and billions of dollars in investment for bezos' space company. and it comes a week after another billionaire made it to space in his virgin galactic plane. it's set to soar high into space and lapped not far from where it took off in the west texas desert the whole trip should take 11 minutes. we'll be following all this action closely this hour with our squawk space force stay tuned for that panel. in other corporate news this morning, according to multiple reports, u.s. states are expected to announce a $26

billion settlement this week with companies that have been accused of fueling a nationwide op opioid epidemic. drugmaker johnson & johnson, mckeson, cardinal health and amerisourcebergen. alice profit estimates beat for the quarter. higher premiums in the quarter, improved investment returns and lower catastrophe loss and that stock up right now 53.79%. mike santoli joins us now. he has been taking stock of the damage which at this point it's like a little flesh wound, i think. >> yeah. >> don't you think, mike >> absolutely. at the index level, it's pretty modest right now, down 3% from the all-time high, s&p 500

yesterday's bounce attempt seemed to emerge where you might have thought last year, it was basically at its 50-day average, which is more or less where it has breached and bounced from multiple times this year obviously it's not just a moment in time. it isn't some kind of magic trigger for the buyers to come in it made sense that's where it would be working against that is the trader's play book says you don't want a meek tuesday morning opening bounce that gives back a third of yesterday's losses as a way of an all-clear because that may invite more follow-on selling. the bond market,ic wit trey traders were prefer for yoields not to be making lows. now the damage sch more severe in certain parts of the market and that means a lot of the market, cyclical stocks, risk level stocks may be oversold

it's kind of bounce time for the russell 2,000 if it's going to maintain this range at all you see no net progress for months in the small cap stocks very similar story forethings like banks, transports over the past several weeks. en energy, oil services, exploration down 20, 25%, looking stretched in the short term on the down side. that's been kind of the flip side of the fact that the rally in the last phase was kind of narrow lot of preselling happened below the surface. high yield bond etf, if credit is still going to be calm and basically says there's no stress in the system, equity wobbles are to be bought a little something to think about here high yield bond etf, this is the price, has a pretty sharp rollover here. it also did so in the early part of the year in the first quarter. that's entirely because treasury yields are going up. therefore, bond prices go down

credit stays very, very firm in that period right here we're widening out a little bit. you have to be on alert there is a bit of economic discomfort that's filtering into corporate securities but it's nowhere near a level you would say all of a sudden the game has changed where there's a news story, rethinking the recovery. it's about paying, where valuations were before we got into this volatility and it's about what the bond market is up to and the fact that people have this sort of urge to lock in on the equity side and diversify back in to bonds as a little bit of a risk, guys. >> yeah. we'll see. gave you something to talk about an anyway, right, mike? >> sure did. >> hasn't it been -- the old expression, it's been quiet, too quiet. >> it got that way, yeah. >> mike, if we got data points about delta that made us less concerned, and there are -- the

other thing is i'm not convinced that the mortality is higher, it's just more transmissible if you get a cold two, three, four days and that becomes clear, don't you think that puts some of the worries and that this does become sort of a very short pullback >> i would say probably, as long as you don't see, you know, authorities around the world trying -- preemptively saying let's just kind of go to the sidelines and impose more restrictions and, therefore, slow down global trade again all those other things i do agree with you, we're clenched up in advance of a further blow that we don't know if it's coming or not. again, go back to the 2010 example. we had this anxiety that madity way through markets because we thought we were back in the global financial crisis. because of what was going on with the european spreads. ten-year yield went from 3.80 to 2.40 in a matter of months the market had a correction because there's that sense we're back in it and maybe something

similar is going on right now. we weren't really back in it zb >> there's no reason to think that bond market players are any smarter at epidemiology than anybody else. >> no. >> for a while it looked like they were ahead of everything but there's different things happening there, mike. >> it's coincidence with what's happening in the equity market it basically goes step by step it's the same story, not necessarily one leading the other. >> mike santoli, thanks. the spread of the delta variant of the coronavirus was one big factor in yesterday's anxiety among investors. joining us now with the latest on case numbers, meg tirrell meg? >> 35,000 on the daily average here in the u.s., up 37% from the previous week, triple where we were at the trough a month ago. hospitalizations are up 31% to 19,000

week-over-week declined, about 254 being recorded every day now why these cases are spreading so quickly has to do with the number of people who are unvaccinated and just how contagious this varpt is it is the most contagious variant we've seen yet the way folks look at this is through a measurement ar knot or ro delta has estimated it to be 8 to 9 according to dr. carlos del rio of emery espe those are the areas we're seeing some of the highest infection numbers and some of the highest hospitalization numbers. that group of states across the southeast and the u.s. florida actually has a slightly higher vaccination rate statewide but is seeing the

highest hospitalizations in jacksonville and gainesville, guys this, as vaccinations are still sort of coming along but at a much lower rate. we're seeing headlines like this one from stat news this morning, talking about doses at risk of going -- expiring. they estimate about 26 million unused doses at the state level could expire fairly soon that's enough, of course, to protect at least 13 million people we heard about this a month ago with the john son & johnson vaccine. the fda extended the expiration of that vaccine. now it's pfizer we're talking about. states are trying to collect all these doses and share them with countries that could use them but so far that's proven pretty tricky guys >> meg, two quick questions. will you reiterate what you said in the last hour when we talked about those who are in the hospital who have breakthrough infections, what that rate really looks like, but also speak to the issue of those who

have had covid before who may think they have immunity and how perhaps those folks should think about it. >> yeah. we know that here in the u.s., 97% of people going into the hospital are unvaccinated from the cdc director on friday we heard that very confusing statement from the uk yesterday. their science chief actually tweeting out that he had completely reversed the statistics instead of 60% of people in the hospital with covid being fully vaccinated, in fact, it is the opposite 60% of people in the hospital there with covid are unvaccinated we dug into the numbers and found out the true rate of people who are fully vaccinated in the hospital with covid from delta is more like 15% the numbers are not as concerning as people were worried about. in terms of prior infection being protective against covid and delta, experts think yes, it should be protective the protection, though, does look to be stronger from the vaccines so we're learning more and more about just how long protection from each of those things should

last. >> take your time on releasing that kind of stuff, you know i understand, you know, good enough for government work, especially uk government work. but still, that's staggering to me 60/40, no, no. >> but it's not 40/60 either who is this guy? >> sir patrick valis. >> he's a sir? >> i believe so. >> come on, get it together. >> meg tichlt rrell, thank you. >> pat, pat, pat, come on. >> this is why we don't tweet things twitter is subject to, ooh, yeah, leads to somebody editing everything. much more on the markets today, a day after the dow's worst day of the year. >> we'll take you to texas where if all goes well jeff bezos will

become the second billionaire to blast off into space just this month. the commentary from our squawk space force panel is moments away. dow futures indicated up by 207 point after a decline of over 700 points yesterday. s&p future up by 22. in addition dak up by 61 stay with us "squawk box" will be right back. competition beat us again. how? they have a better finance system than we do. i feel like they might have a better finance system than we do. workday.

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our next guest says buckle up jim paulsen, chief investment strategist for the leuthold group. jim, this morning, we're seeing more pressure on those yields. ten-year fell to its lowest levels since february 12th the five-year hit its lowest level since march 2nd. what's happening here, and why do you think we're not going to see this shake out until we find those bottoms? >> well, in recent weeks, bond yields have been falling and people have been wondering what does the bond market know that we don't anxieties have been growing as a result of that and then last week, the bond yield ten-year went to 125 and

rallied off that, becky. and i think what we've done here in the last couple of days is retest that low and it failed. i'm not sure this thing is entirely over. i think the bond market is driving everything when yields have gone down, it's starting to connote that maybe covid is a problem again and that's running through all markets, not only the stock market is down but the most economically sensitive areas are going to be hit the hardest, small caps, cyclicals. the dollar is up on its safe haven bid as yields fall, commodity prices have rolled over as mike santoli pointed out, spreads have weakened off. everything in the financial markets connotes weak, economic growth coming. i don't think that will be right necessarily. until that bond yield can find the low that looks sustainable and bounces off of it, i think

all those markets are still at risk and i don't know when that will be i think the fundamental backdrop is very good we're still growing at very strong rates in the economy and earnings, and that's ultimately going to win out i would say this is more of an opportunity to take on more cy cy cyclicality. as covid information worsens here, as we said i don't really know. i think it's still not, to me, over necessarily. >> would you tell clients to buy on the dip or not? if you think it's not over and there's more volatility to come, maybe hold out for a bigger drop >> well, i think that's going to be really tough to call, becky i think if you don't have any cyclicality, if you haven't been in the market, if you've got a lot of liquidity, i would be

picking away at what's happened to small cap stocks, industrials, materials, financials right now i wouldn't wait. becau i don't think you're going to be able to call that exactly maybe it is over a year from now, i think we'll be higher. i think growth is going to sustain. i don't think covid is going to kill us off again. we've already vetted this crisis once, and once that happens, i think it loses its ability to do that becky, we've had seven significant spikes in the vix volatility index since this bull began. four of them this year and every time that happens, you kind of wonder, oh, is this it whether it's reddit, crypto. there's always something this is another one of those temporary bull market scares if you will, rather than any kind of linger. and i would invest accordingly

over the next year rather than worry the next two months. >> we're faring better than the international markets. do you think they'll come through it and be okay in the not not-too-distant future >> i do, becky i think the dollar is going to go lower we have -- one of the things in the background that's happening with this drop in yields here in the united states is the yield spread to international yields has really collapsed, which is going to -- which is wide yield spread has held the dollar up. i think that might reverse other thing that's happening is our inflation expectations are going up faster than abroad, which is also a negative for the dollar and they are behind us with the covid cycle. in order, their vaccinations are trailing ours, even though ours aren't doing as great either i think as we go into next year,

we're going to see their recovery overtake ours i like the emerging markets, excluding china. i think china will be a big loser post-pandemic and emerging stocks outside of there will do the best. >> i know it's almost impossible to try to wager a guess on this. if you had to, what do you think will kill this bull market if it's not going to be covid or these other things that we've talked about and gotten through, what does worry you? >> well, i think we're a ways off, becky, from the final end of this. we have 6% unemployment rate and it's probably 7, 7.5 as we go through this recovery. we've got a lot of excess capacity to grow into in this

recovery we've got a spectacular fundamental improvement going on in growth in the economy and also earnings. i think the second quarter earnings for s&p 500 might print a $220 annualized pace if that's the case, we might be running below average right now in the overall s&p 500 if that sustains, let's say, through year end i think we're a ways away. ultimately, i would say i would get more concerned when yields do go up, when there's more tightening by monetary fiscal policy i just don't -- in some ways right now, what is wrong with a falling yield, long-term yield in the united states against a fundamental backdrop where gdp is growing 7% and earnings are exploding to the upside? historically there's been a bullish environment looking forward for stocks if yields were closer to 2% and

the fed was tightening and fiscal growth was tailing in, i would get more concerned i think we're a long ways from that. >> in order, you still can't fight the fed. jim, thank you thanks for your time today. >> thank, becky. >> okay. okay let's look live pictures of bezos and the rest of the crew heading to the launch pad in west texas three other passengers for a suborbital flight on a shepherd record this is the first crude rocket launch, i guess. bezos is on it, along with wally funk, mercury 13 astronaut that didn't get to go. >> we keep calling them crew they're really passengers. they're not doing anything. >> we call them crew they don't have to fly to be crew they're on there. >> but there's no -- >> ind, there's no pilots. there's a crew 18-year-old oliver damon, who is kind of a cool kid i saw him yesterday.

gregarious. >> lucked out. >> his dad was bidding on it originally and cavuto asked why did your decide not to go? he said he was afraid of heights. 65 miles is -- there it is cool suits that they're in it should be neat for that three-minute period. >> i would definitely throw up. >> did you throw up on the way in this morning? >> no. >> you didn't hit a pot hole that usually does it for you. >> if you watch when richard branson did it, there was a lot of sponsored stuff go ing on. >> i doubt bezos would do that. >> land rovers going. >> that seems like a branson thing, not necessarily a bezos thing. >> i think the other suits were un und underarmour. >> i would be shocked if there were sponsors.

>> i couldn't to this part as they keep getting up the steps. >> this is too high for you? >> i'm really afraid of heights. >> get you a caribiner and rope? >> it's weird, though, i do do the parachute sailing off the back of the boat i can't be connected to the ground and then they've got to walk across. >> helicopters. >> this is like "all the right stuff" right here. >> you're right. >> it is different than what we saw with virgin galactic that felt -- >> more like a plane at least on the take-off. >> right here they go scott has the cowboy hat on. >> people laughed at trump when he called it the space force. >> they're not laughing at us. >> they're not laughing at the "squawk" space force maybe chuckling.

>> maybe. >> well, we're looking for that. >> wow this is pretty neat. and in real time happening the guy in the hat >> that's wally funk in front. >> bezos in the hat, and his brother is right behind him. >> wally funk will be the oldest person to go into space when this takes off obviously she trained as an astr astronaut. went through all the training and they decided not to send women up big, big day for this reason and many, many others. >> that's interesting. jeff's brother has something in his ear. they all have something in their ear. >> probably connected to mission control. >> i don't know. but the others don't maybe they do. jeff has something in his ear, too. little blue headphones of some sort. >> you have to have butterflies. i have butterflies looking at them, thinking they have butte butterflies. >> big time fingers crossed and we will be counting down along with them and watching

when we come back, the nasa administrator, bill nelson, will join us ahead of jeff bezos' trip to space scheduled less than an hour from now. plus some other special guests in our "squawk" space force panel. by the way, it happens to be the 52nd anniversary of neil armstrong walking on the moon. stay closer. we stay tuned we're getting closer to the final countdown. ♪ but entrepreneurs never stopped. ♪ and found solutions that kept them going. ♪ at u.s. bank, we can help you adapt and evolve your business, no matter what you're facing. because when you close the gap, a world of possibility opens. ♪ u.s. bank. we'll get there together. ♪

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in van horn, texas, joining us live. we are getting very close. half hour now to lift-off. >> reporter: that's right. we're 28 minutes to lift-off as you saw before, before the commercial break, you have jeff bezos and his three crew mates getting ready to enter that new shepherd capsule i want to bring up some of the video now and share with you what specifically we are seeing on the feed. that capsule has made it to the top of the suborbital, reusable capsule. this will be an 11-minute ou autonomous journey max acceleration of three times

the speed of sound mach 3 on that assent up they are standing up on the tower, as we get ready to see them begin the process of loading into the capsule those blue and black suits with the feathers emblazened is the symbol of blue origin. by the way, it's a small west texas town of van horn you're seeing everywhere all over the town right now fully pressurized capsule and cabin. hence, no special gear, no helmets to go on this 11-minute journey. they have ear plugs in it's going to be very loud in terms of the rocket itself it stands 60-feet tall. the stairs they climbed, they don't go through physicals in blue origin but they are given a list to bring to their doctor to talk about ahead of a flight such as this basically, the physical requirement is to be able to climb those stairs as you can see, they'll be get

ing ready to board this capsule momentarily. 110,000 pounds of thrust for this rocket. it's going to be powerful. it's going to be powerful not to go enough to go to suborbital space. when they get to the carbon line they'll unbuckle and will be able to float around, grab different grips within the capsule and experience that zero gravity speerchs, see the curvature of the earth, strapping back in and coming back down for a parachute landing, guys. >> morgan, i don't know. it's -- i'm with them for some reason, just in terms of obviously excitement, but nervous excitement you must feel the same way, i would say, at this point ri

right, morgan? >> reporter: i get excited for every rocket launch, i have to say. i would also just note -- you guys were talking about sponsorships before. virgin galactic are sponsored, have a sponsorship with land rover, which brings the space plane out on to the runway in terms of those launches and they do have underarmour making those suits. in the case of blue origin, astro astronauts were ferried out to the launch pad in riveons, electric trucks that amazon is an investor in that's what they used for the process here today you can see the crew climbing into the capsule right now and beginning the process of strapping in i would also just note as you can see, they're sort of laid back and almost horizontal on those seats. that is a design that's specifically in place to help evenly distribute the force of g's that they're going to feel three g's on the assent. on the descent, it's going to be more like 5 gs, very similar to a fast or powerful roller

coaster. that position with those seats helps to make that process a little more comfortable. >> so we, as laypeople, have no idea about what even 3 gs feels like, do we, morgan, unless we've been in a fighter plane or something? >> reporter: yes but i will say 5 gs, for example, is similar to a really strong, really fast roller coaster. >> okay. >> when you go up to the top of the hill and then you whip down and you're sort of pushed back into your seat it's a similar feeling to that, but more sustained. >> morgan, stay with us. we're going to bring in our "squawk" space force panel to talk about the blue origin launch of jeff bezos and the other passengers. nasa administrator bill nelson, derrick pitts, franklin

institute and former astronaut mike massimino a little tongue and cheek at that music although this is a portentious day and a great day. administrator nelson chuckling a little to the two gentlemen that i think have done this before, can you just describe to us, senator now, or bill, what it is like? what's the feeling what are you feeling right now, would you say? >> well, i think it's great what they're doing. of course, what mike and i experienced, getting up the energy and speed to go into orbit, it's a different experience it's a completely sustained experience what they are going to feel is the g force, as they are rocketing up and they're going to tip over and they're going to have free fall, which is going to be zero

g for two or three minutes, and they're going to see that curvature of the earth and it is magnificent. >> mike, let's say 20 minutes before a launch, when you're doing this, lot of things going through your head. describe it to us. >> yeah, sure. there's a lot of anticipation on the shuttle. we laid on our backs for a while, waiting for the countdown to progress. so, we were doing things like rock, paper, scissors, telling each other jokes, trying to remain loose there's that big anticipation of what's coming next it's sort of surreal, thinking, is this really going to happen you're thinking about this for a very long time as each one of these new to become astronauts have been thinking about this. and is the day really coming today is the day is it really going to happen and then before you know it, you're on your way and the g forces, 3 gs is three

times your body weight i felt like i had a pile of bricks or three big dudes sitting on my chest. that's what it feels like. >> wow as chief astronomer, at franklin institute, such a great day. today's carnegie melon's, rockefellers go up into space themselves that's amazing no >> yeah. this is really incredible. what it shows is that the door to space access is opening for a lot of other people. and the possibilities for others to get into space is grow ing al the time we know that the prices for this are going to drop over time. that's going to make space that much more accessible the other cool thing is that the innovations that come out of all of these flights get fed into programs like nasa's program and all of our space endeavors become stronger because of the work that's being done by blue

origin and virgin galactic and space-x. >> derrick, is it, i don't know, un uncouth to talk about, but let's do it? what can we do to commercialize this, mostly tourism how long for the other stuff could it be generations? >> i think the other stuff could follow on more quickly than generations. it is true that one of the things that has to happen say real solid, financial model has to be built to make this all transpire. meantime, first thing that's going to happen is that this access to low earth or bit provided by commercial entities really makes it easier for companies that need the space platform to get to space for a much lower price that can expand what can be done from low earth orbit or earth

orbit. it can expand what we need to do in the solar system, reaching up to the moon, building up skill and technology bases for a trip to mars. that first hurdle is going to be leveraging these technologies to provide that access that will bring a financial structure and basis for these two companies. >> bill, i wanted to go back to your description of what you were talking about at the top, about what this feels like you talk about how the capsule rolls over and then they go into a freefall do you actually feel the free f freefall when you're in space or is it a weightless sense i don't think i could handle an actual feeling of freefall for an extended period of time. >> in mike's and my case, after we had been in orbit for a number of days, then you're coming back in, you have been, for days zero g

you freefall constantly around the earth as you're or dlbiting you're accustomed to it. by the way, zero g is kind of shocking because your arms come up in front of you floating when the main engines cut off i looked around and everybody's face is suddenly flush and puffy because the bodily fluids start to shift in the upper torso. when you come back in to gravity, then it's the opposite. by the way, that's why we drank 32 ounces of water and ate salt tablets, to absorb that additional fluid we lost on orbit. >> amazing totally amazing. >> i was just going to ask you, how do you think about the distinction of what jeff bezos says he wants to do, which is effectively do this so that in

the future people can actually -- i don't know if you heard the difference between elon musk and jeff bezos elon musk wants to get pooeb people to mars so they can escape the earth jeff bezos thinks that earth is the best place for humans to live and move manufacturing and all the things that shouldn't happen on earth into space these efforts are really a way to try to bring down the cost of that in the future does that make sense to you? >> both of them make sense and these billionaires are spending their own money, which have achieved great things look what elon musk has already done he's carrying people to and from the international space station. bezos will do that as well he's developing a rocket not necessarily to the iss but is

developing a rocket that will go in or bit. meantime, they're giving a glimpse of what it's like out there in the cosmos. albeit a very brief glimpse to people who otherwise would not have the opportunity. >> derrick, while i have you here, earlier -- >> go ahead. >> they're getting a little bit philosophical here, but as far as space travel goes, we were talking earlier about accelerating toward the speed of light and how difficult it becomes, the physical constraints. is it possible to somehow get around that in terms of a space time continuum i don't know i've heard worm hole, black holes, et cetera what i'm getting to is about ufos and the chance that other civilizations have conquered what are these vast distances which makes it so unlikely that anyone is even in our

neighborhood of this tiny little ga galaxy out of, i don't know, 100 billion other galaxies. >> in our fantasy of what we expect when we think about extra terrestrials, we think one of the things they have the capability to do is zip around the galaxy and the universe with some extraordinary speed but one of the things we have to remember is that even though they may be extraterrestrial, different from us in lots of different ways, but the laws of physics apply to them just as the laws of physics apply to us. if the speed limit of the universe is the speed of limght for us, it's also the limit of the universe for them, too unless they've come up with a way to beat that, which according to the way the universe is structured as we know it, we can't quite do that. so that's one of the reasons we have to examine carefully what we're saying when we talk about

unidentified flying objects being spacecrafts from other civilizations. >> let's talk about wally funk many people don't realize how important this is historically she was a talented pilot and six decades ago she was training to become an astronaut. her dream won't come true until today and that's amazing. >> reporter: it's such a great story, becky wally funk is part of the so-called mercury 13, group of women who during the 1960s were put through the same physical exa exams and the beginnings of the same astronaut training as the men that were in the mercury program. she was part of that that program was essentially disbanded, the women were clearly not sent to space, as astronauts this has been a very longstanding dream for wally funk she is an aviation, aerospace pioneer, has a number of firsts next to her name within that sector and industry as well. pretty amazing to see her at 8 years old inside this capsule

right now for which the door was just closed a few moments ago. and i think they're going through all their checks and getting ready. we've got 17 minutes until liftoff. because of this trip if all goes according to plan, she will become the oldest person to have ever been to space just one of several reasons that this is being watched so closely, this private space flight as an historic mission. it will be the 16th mission, i should note, for shepherd but the first with actual humans on board. major moment, major milestone potentially for space tourism and commercial space flight in gen general, guys. >> morgan, stay with us. members of the "squawk" space force, stick with us we are going to be coming back to you as we get closer to the big launch scheduled right for the top of the hour. it won't be long now about 12.5 minutes.

>> we're going to stay are we going to stay >> i'm not sure. >> we're going to stick around i don't think we're going anywhere right now we've got too much to do we're looking right now at, obviously, this shot, van horn, texas. what we should do, is get down and see our friend, jim cramer, for a moment and see what's on his mind as we await this countdown, mr. drchlt rame cramer are you there? >> yes i find this -- i don't know why. i am like when i was 9 and we stopped and watched the original john glenn launch. i feel like that i think that america wants to know about this very much. i don't blame us for doing wall-to-wall this is one of the great business stories for all time.

it is private equity, private enterprise going to space. yeah, we have a nice bounce in the market and that's terrific but like you guys, i can't get enough of this i just can't. >> we'll keep our eyes on one screen with the capsule and mr. bezos. you're going to be on the other screen, jim. i want to get your sense of the markets this morning it does appear we have a bit of a rebound here after a lot of selling yesterday. what is your sense >> i do think that we had a lot of european selling that came to us obviously people are getting t tired of the bond market what i do get a sense, though, is that all morning you guys have said the hospitalizations, meg has been saying this stuff yes, the deaths, sadly, are all from unvaccinated. i have to believe -- i put out queries to sochlt great doctors to come on air if you are someone who is fighting vaccination, you think it's a mistake, and you see the deaths go up and you see the

eight to nine people who get it from someone who has delta, i vust don't know if your conviction is going to be able to trump your worry. and that could change things in other words, it's more of a moving target than we think. the r0 is terrible. >> what do you think of the marketplace? >> yesterday was a good cleansing, speculators getting washed out the only thing i worry about -- i happen to like the guys from robinhood. if they get 25 to 35% of the robinhood deal to their customers and the stock doesn't hold the print, will those customers those customers put more money up or sell it my biggest worry people say, jim, ridiculous worry, but it is what i'm thinking about. >> interesting angle to all this jim, see you in a couple minutes. meantime, we are going to return -- not returning to space. we're returning to the topic of space. >> yep. >> at least for now. >> we -- yeah.

imax i will never use that term, i'm returning to space we're just a few minutes away from the scheduled launch of blue origin's new shepherd rocket with the world, can't make this stuff up, the world's richest man onboard the rocket blue origin founder jeff bezos going along for the ride his brother mark and wally funk. the oldest to go into space and oliver daemen the youngest to go into space bring back our space force panel. derrick pitts. ea elon musk is working on that, past the speed of light. a few ideas. may not be as hard as -- i'm kidding. that's next, right and mike massimino and our own morgan brennan bill nelson. we're close. now i can feel it. >> reporter: we are, looks like

t minus 15 trying to figure this out. it looks like it might paused the timing you can see on side of your screen, that is oliver daemen. . first paying passengers onboard. the launch of this flight will mark the first time we have actually seen a u.s. company carry a paying passenger, and a u.s. company carry a paying passenger to the edge of space he, of course, took that seat after the anonymous winner of that $28 million auction rescheduled to a later flight, but, guys, it looks like we're looking at video of the base of the rocket here. looks like the launch time may have been paused i'm going to check in on that right now and get right back to you on that. looks like we're at hold t minus 15. >> we see that on our screen here, too, morgan.

obviously, these things can move watching these issues. >> reporter: absolutely. >> 62 miles up, morgan, and then they detach the capsule at the top that you see, and then, what is it? about three minutes of weightlessness they can expect, but the whole trip about 11 minutes? >> reporter: whole trip, completely autonomous, 11 minutes. if all goes according to plan. three minutes of weightlessness, unbuckle out of harnesses, move around wally funk indicated she's going to do turns and somersaults potentially inside that cabin. then buck the le back up and stt their descent. as they deploy and move closer to the landing, they will have thrusters to help slow the capsule down as well by the time it touches down back here in the west texas desert, it billow of smoke but only one or two miles per hour. meantime, that reusable rocket,

the booster will retattach and land. and similar to space x when they capture and reland their boosters as well. >> do we have any idea what the cost of this mission is? >> reporter: it has been a little tricky getting certain numbers, to be put around this so, no i don't have a specific number for you onthat what we do know is that based on estimates from virgin galactic's last round of ticket sales, what we've heard from wall street analysts trying to actually put their arms around this market right now, and then, of course, you have that $28 million seat that seats are likely to be in the hundreds of thousands of dollars for some of these suborbital space tourism flights. so presumably you have six

seats, a couple hundred thousand dollars, you're going to put it somewhere in, do the math quickly, probably put in the ballpark whether this is profitable right out of the gate or not, net-net permission big question mark. we just don't have those answers. >> morgan, thank you i know we're seale you top of hu in a tu minutes. mike, looking at this, t minus 15 minutes what does that tell you as somebody who's been waiting to launch before, sitting in the space shuttle, waiting to take off? you see t minus 15, being held there. t minus 15 minutes held there. what do you think? >> you think, well, we might be getting pretty close for me, i never really quite believed, and what we used to say is astronauts, you really don't know if you're going anywhere that day until you feel the engines burning beneath you. so it's -- all right 15 minutes is really close let's keep going let's get the countdown going

again, and let's -- let's light this candle and get on our way so -- that's what they're thinking right now, i'm sure but also want to make sure everything's correct, everything's good. >> yes. >> so probably not monitoring much, but i'm sure the ground team really wants to make sure this thing goes right. if there's any questions, whatever that might be, whether it's weather, something in the systems, they'll stand down. you'rehoping everything looks good and you'll be able to continue. >> the steam we're seeing right now coming out around the rocket that is that for the lay people >> well, when you see steam coming out of the a rocket it's usually water vapor. liquid hydrogen and liquid oxygen used in rockets it will produce some, what's called burnoff kept at very cold temperatures in liquid form and easy to vaporize usually a little venting that goes on with the liquid hiydroge and oxygen

i assume that's what we're seeing there. >> mike, a lot is different from when you did this, and of the technology and everything else, but the actual physics and the feeling of when that thrust, it's not going to be -- you've experienced it not many people have it's not really that different is it? >> no. it's not a great point. we just had it for a longer period of time you feel a real kick, with the space shuttle especially we have solid rocket boosters. they were like giant sticks of dynamite so we would start the main engines on the shuttle a while, six seconds. once the solids lit, you were on your way, and very abrupt. 100 miles an hour before we cleared the tower. went from 0 to 17,500 miles an hour in 8.5 minutes. they'll experience a shorter vision a few minutes under powered flight the g profile looks similar, match gs around 3 and feel what we described earlier so, yeah in some ways very similar. just for a shorter period of

time. >> okay. mike, thank you. we're going to go, and derrick pitts, thank you massimino over to "squawk on the street," guys, make it completely seamless all going to be watching. >> countdown's on again. >> and first guy to say rocket launches are exciting to watch referenced that a few times, years ago. wow. exciting to watch. >> the countdown's back on. >> countdown's on. >> get over to "squawk on the street." fingers crossed. godspeed, good luck. "squawk on the street" takes it aa with now for the final countdown. >> what i wanted. and go for bagels. let's go for bagels. >> thank you, joe, welcome to "squawk on the street. i'm david faber along with jim cramer live from the new york stock exchange, as joe said. took it a little early because we anticipated a 9:00 a.m. liftoff. how exciting >> exciting. >> it's going to be about ten minutes after that but don't

want you to forget about the markets. futures on the rides. >> what were we talking about? >> the rally >> talk about that, too, and yesterday's sell-off we're set up for what will be a higher open. more coming up on that you've seen it right there jeff bezos and the three other -- can you call them astronauts i don't know make history blue origin's new shepherd rocket first human space flight going to launch, where's the countdown now? 12 minutes 41 seconds. a bit of a pause there, jim. see if they stop it again. while they have that pause so to speak gives us a little bit of time to -- to get to morgan, and find out what's going on down on the ground there. >> morgan -- >> morgan brennan. >> oh, yes >> morgan, counting down now 12 minutes to go. >> reporter: that's right. counting down. hold removed 12 minutes until

liftoff as are right now you can see the video there. here, i should say, in the west texas desert at blue origin's launch site. 60-foot-tall new shepherd rocket and capsule. all four passengers including jeff bezos, the world's richest man, here on earth, poised to go to space in just a little under 12 minutes this is going to be a suborbital flight, mass altitude probably 65 miles, travel at a speed up to three times the speed of sound. going to be a fully autonomous, 11-minute flight it all goes according to plan, 16th for the new shepherd space flight system, but the very first to have people onboard, and, guys it is historic you've got among the crewmates, wally funk, 82 years old, poised to becom