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 become oldest person to ever

go to space and paying passenger, oliver daemen, poised to become youngest to ever go to space and jeff bezos' brother mark onboard as well total six seats. four filled. about three minutes of weightlessness at that maximum altitude as well where they're going to get to see the curve of the earth, get to unbuckle and float around in zero gravity and have that essentially astronaut experience that future, if all goes according to plan, future paying passengers are going to have as we see this suborb irt the space tourism market kick into gear. years talking about it the beginning are commercial service for blue origin for these space tourism flights. >> and morgan, we've learned so much about that, as you say, nascent suborbital business that is just beginning now. we're going to come back to you

momentarily, morgan. take a moment here with jim to talk about the markets particularly given, of course, declines we saw yesterday. what are you watching this morning, jim i mean, perhaps it's nothing more than the ten-year note, ten-year treasury, continued to decline the yield? >> i am looking at a rebound in travel and entertainment i think that's very important, because this decline a lot of people just put right in the feet of the variant. and we know from natrel, be careful how many people are infected by one is -- >> very, very contagious that said continue to come back to the key piece, should be -- >> viral. >> no, no. which are lack of hospitalizations and, certainly, if vaccinated, still unlikely to get it. >> yes. >> and very unlikely to get particularly sick. >> right. >> important things to know. >> exactly i thought governor murphy was excellent this morning listen, if you're vaccinated, go do your life very important

people aren't doing a lot. carnival cruise, carnival corp., announced operating capacity to nearly 75% by year end that's a big deal. that cruise has been really pummeled if you can see strength in the cruise ships and follow up with phil lebeau here in somewhat negative obviously about international, but still good travel going on regularly. >> i wonder, will we have days like yesterday more often in the sense of potentially going to continue to see rises in case counts you point out, the delta variant is extraordinarily contagious and unfortunately many people are unvaccinated still in this country and certainly in other places around the world. or is there going to be, as you say, sort of, hey, you know what most people are vaccinated, thankfully, and we're going to go about our business. things are not going to shut down in any real way, or change in any real way >> i think i'm a little more bullish about what can happen in the country. if hospitalizations and deaths

do go up, i think the resolve, the anti-vaxxers, will decline i think a lot of people feel right now that there's just much more asymptomatic. when an athlete is still -- is playing and doesn't feel anything as opposed to what happened before. >> that, thankfully, is the case for many of the people when it is a breakthrough. again, not often but does occur, particularly given how contagious the delta variant is when you're out in the world around a lot of people possibly you are -- you know, it can -- can break through on occasion, but those people don't get particularly sick. >> right but there's another side that we have to talk about it today. it's a company that is a very big industrial that matters tremendously. >> tell me. >> ppg. >> okay. the raw cost of paint gone up dramatically calls into question the transitory issue first quarter, thank you, mitch,

for this, first quarter thought could be up, you know, single digits second quarter thought costs high single digits came out last night. you're now in whopping mid to high teens, and they said the next quarter, up 20% now, this is a very basic industrial all right? now, there are some issues there's a -- some parts of this, tio2 whitener, but this is a pre-announcemond from an industrial it is in so many different instances it took me by surprise. >> yeah. >> because you can imagine they're not the only company yesterday a question on sherwin-williams, and i said, i'm worried about them >> right >> they're going quicker than they can -- >> you had been in the transitory camp. >> this is -- jb hunt comments today. can't find the drivers i mean, what's happening is that now we're in earnings period

so you're transitory comments are smacked -- >> what's macked no, the ten-year note, 1.14, jim. 1.14 what it's saying is people are now worried about a lack of growth. >> i know. why we're -- >> rocket mortgage keeps going down no more refi, maybe people feel -- >> crude 66. wer wtint why did industrials sell off? rime giving you, ppg is why. a metaphor. >> yeah. >> i don't want to get too negative, because the travel and leisure is, it is -- that's the growth side. but the variant and the raw costs are the -- i don't want to see recession. that's just silly. you know -- >> people are saying ten year. >> the ten year -- it makes sense. >> people said should be two and three? where are they

>> i think they're hiding. >> going to be a lot of pain plenty of people who thought we were going to -- at least 2%. >> that's billionairitis. >> every single time what 1.7? >> going to 2, and people just disappeared. you know maybe they should be sent to space? maybe they should go to mars and see whether -- we had a gentleman on talking about extraterrestrials. they should go out and find them before they find us. >> hmm maybe so >> another area to put the people, looking for the ten year. >> quite a story there that move. that move down in yield over the last -- >> astonishing david -- >> up in price -- >> now, one of the things that makes me feel, somewhat tentative about the international money is that we've seen germany fall before and we didn't go down in curves and yields so there is -- there's less refi okay. >> uh-huh. >> that's rocket mortgage

telling you that i had that first last night. good, old, a little more tentativabletivety you're focused on the -- >> i am. >> it's four minutes now. >> and ibm, david. >> the rich evidence man is going into space with his brother. >> you just want to watch -- >> incredible story of wally funk she's amazing! >> wally -- >> seven flights up amazing. >> how about apple increase by -- how about the evidence there? >> you got -- >> how about this? first inflows in a long time risk back on, to use that hackneyed phrase and yesterday semis rallied yesterday. >> meaning what? >> meaning the most beat up is already ready to come back. >> you talk and we focused on in

nvidia i wouldn't call beat up. >> a 4 for 1 split yesterday i would have -- well, selling is actually up today. >> yes. >> and david, hcap one of the largest peaks of the year moderating people are getting, like, the surgeries. the question is i think vaccinated people will continue to get elective surgery. then the -- potential opioid settlement how good it is for mckesson. >> a lot of news to get to but we've got a launch 2 minutes 43 seconds. >> what are you? walter cronkite? get your car washed? >> when he gets to mr. car wash time to go to morgan brennan let you take it away with about 2 and 1/2 minutes. >> reporter: the video we're showing exteriors of this

reusable rocket and capsule on the launch pad here in west texas. give you a sense of the interiors, and what the future astronauts are likely experiencing having been inside that simulation capsule myself, that they had days of training inside six seats. partially reclined to help evenly distribute that g force, and -- a flight suit, but no other special gear as you can see -- retraction right now, as they get ready for this launch. we are about a minute from liftoff, guys. for this first crew to suborbital new shepherd flight to space 16 flights for this space flight system the first with humans onboard. set to make history. helping to usher in this new era of commercial space flight, and we've been talking about it for so long, and to which folks like jeff bezos have been putting

billions of their own wealth into, in a bet on this long-term greater vision both from a business standpoint and a societal one a human one. on space, and our future as the human species in space this idea of colonization of the final frontier the first step for a company like blue origin in that bigger, broader vision for bezos to build this so-called road to space. we're 40 seconds from liftoff here. thrusts will be 110,000 pounds max acceleration, three times speed of sound for this 11-minute, fully autonomous journey. that we will see past the edge of space, past the so-called karnen line. >> t minus 15.

t minus 10, 9 -- 8 -- 7 -- 6 -- 5 -- 4 -- commander, start 2 -- 1 -- >> whew! >> ship is cleared the dock. >> reporter: and cleared the tower on her way to space with our first human crew -- you are going to space >> reporter: oh, my goodness

listen to the roar of the engine just about to pass through maximum dynamic pressure one of the stresses. >> there you have it. jeff bezos and his three crewmates are now headed to space. >> beautiful burn on that. >> liquid hydrogen. >> history being made in the west texas desert right now, as not only the richest man on earth, but potentially the oldest person to have ever gone to space, the youngest person to have ever gone to space and the first time that a u.s. company is carrying a paying passenger to space as we see this mission under way. >> just feels different. doesn't it, gary >> totally different.

>> -- in the middle of the -- >> reporter: it's a single liquid fueled be3 engine. in about -- in about half a minute, likely half a minute to a minute, you're going to see that rocket booster, you're going to see that rocket booster detach and gnbegin its own descn back to the desert initial reactions, what do you think? >> you know, joe's been making fun of me from years ago when i talk about how exciting the rocket launches are. but, man, i want to do this. i want to do this, morgan! watching that makes me want to get in and do it. >> reporter: right >> how much fun could that be? >> reporter: by the way, just take a look. you're seeing the altitude i don't know if you can see it right there. there you go altitude as they do climb to the edge of space right now, looks like zero g.

they accelerated two, three times speed of sound now things begin to slow down a little bit. >> what -- morgan, what's the maximum altitude >> you're going to see weightlessness they're going above the carmen line 62 miles above earth. >> right. >> reporter: and so they're going to go for, a bit further than this, and as you see on that screen, it's zero g so weightlessness has set in and -- this is the -- we're not going to get those images until after they land and land safely, but presumably right now you have those passengers unstrapping to begin experiencing that weightlessness around the capsule's cabin >> whew! >> morgan, this is jim i know that i watched candidly like i watch a sci-fi movie. a scary movie, because the last scene you ever want to see is something terrible

how many people there actually felt maybe something could go wrong? >> reporter: well, you know, it's like the old saying space is hard. space is hard, and space with humans onboard, a spacecraft, is especially hard. everything has to go pretty much perfectly. that said, i think there's a lot of confidence here that's part of the reason you did see jeff bezos climb aboard this inauguraled crewed flight a vote of confidence in the system as it's been described to me by the executives at blue origin redundancies have redundancies and in some cases more redundancies when they land, three parachutes they've tested -- this could land even with just two parachutes tested the emergency escape system three times as well a very high degree of confidence putting people onboard this flight, including the commander. >> one-mint warning.

one-minute warning >> morgan, not blatant -- rare the you see we've already breached -- >> they're coming down, right? >> that's it >> reporter: that's right. so we saw, it looks like it was about, altitude 340,000 feet or so i'll get those final numbers for you in just a few moments. that's right descent begins you can see those -- looks like you can see those parachutes -- deployed. >> david -- >> left side of your screen, that is the booster. >> 2000 miles an hour. >> first step --

astronaut oliver -- >> oh, my word >> oliver -- >> oliver -- >> thank you. >> copy. astronaut wally. >> wally >> copy. >> astronaut -- >> copy. >> astronaut bezos >> whew-hoo! whew >> happy, happy, happy >> copy.

>> thank you, again, everybody, for joining us live -- to its landing pad there we see engine -- three lights. sonic boom. >> and that is the reusable rocket booster. making a pinpoint landing back here. i don't know if you guys could hear, that was the sonic boom as it re-entered and came down for this touchdown. >> booster has landed. >> landed. booster landed >> and that's the capsule.

making its dissent four now astronauts onboard. when they land they will have earned their astronauts wings. right now they're going to be feeling the force of five gs. >> i see blue. i see blue i see the big bar. i see the big bar. >> standby standby. stand by main. standby main standby main. [ applause ] >> ah! >> that's the capsule. just deployed its parachutes you can hear the clapping on the ground here. [ applause ] employees clapping and cheering. the astronauts, by the way, have

been joined by family members and friends for this launch as well a lot of celebrating happening here on the ground you can see those parachutes. and that capsule coming in for a landing. it's slowing down. parachutes will slow it down to about 16 miles per hour, and as it gets closer, there will be thrusters that power up to slow it further for a landing about one to two miles per hour when it touches down. >> guys -- you can add astronaut to the list of accomplishments for jeff bezos. >> yep tourism -- the era has begun, morgan. >> often talk about the richest man on earth, but he was not -- so who's the second? that person just became the richest -- but he's not on earth.

not on earth. >> elon musk >> kind of funny isn't it yes. two of them. think of them together one day, although i guess -- i don't know if that could be allowed. >> like the president and vice president in the same room >> rocket would be used. >> a smooth -- >> whoa. >> touchdown touchdown. [ applause ] as you can hear, more cheering here. >> -- congratulations to all of you.

>> history has been made. >> and jeff bezos saying thank you to everybody >> copy. very happy here as well. let's do a standard check. astronaut oliver >> [ inaudible ]. >> and video, seems very pedestrian >> okay. >> "squawk in space. >> astronaut demo, i am -- unbelievably good! >> oh, this is -- >> copy. that's you control of bezos, best day ever! >> yeah. >> copy, everyone. go ahead and remain in your seats. crew member seven is on their way. shortly you will hear the capsule off gassing.

>> did anybody -- at the -- we asked? >> main mission was to -- [ laughter ] >> that was only about five minutes. >> yep. >> first up with control, you're -- >> guys -- there you have it. a successful first crew mission of blue origin's new shepherd capsule and rocket. mission that has minted four new astronauts keep in mind, still a very elite club only -- -- fewer than 600 peop have actually become astronauts and now jeff bezos and his

brother mark and wally funk and oliver daemen as the youngest traveler to space, all officially astronauts who will receive those astronaut wings upon their retrieval from this capsule. guys, i need to know, it is july 20th it is the 52nd anniversary of the apollo 11 moon landing that was a seminal moment for jeff bezos he has said that that is really where the seed was planted for this lifelong, nearly lifelong dream of going to space and becoming an astronaut, and here it is, 52 years later, and it has happened. pretty incredible. pretty incredible. >> incredible. i can remember, bezos, we're the same age so i can remember watching that -- hmm. 3:00 or 4:00 in the morning, whenever it was, jim when they landed on the moon. >> because i an in's insistent,

amazon is up nicely. rolled it in represented by a man obvious people were concerned, and their buying. >> it was quite something to watch and as morgan has said so many times this is an important industry that we're watching be created obviously, a lot ahead of it yet, but -- but morgan, it looks like -- i guess -- here we go. open the capsule, and -- oop they're running over there. and they'll be coming out shortly. i would guess. the four newly, as you say, newly minted astronauts. >> reporter: they have rehearsed this, but it is the first time that you will see that blue origin crew actually open that capsule door back up, and welcome people back on to the ground, back on to earth, after this trip. more than 62 miles above our planet.

>> you see jeff bezos through the window. >> reporter: guys, started a blue origin service. now that this successful flight has happened they are planning two more of these suborbital trips with paying passengers onboard before this year is out. >> right i assume this will become commonplace. so much so i guess the plan is, morgan, we certainly won't be focused on it any longer, but today was a historic day. >> now, david, do you think that billionaires, exhausted pretty much everything they can do, buying islands, 190-foot yachts, is this next >> without a doubt. >> this is billionaire signup? >> there will be plenty of others price point continue will be very high. morgan filled us in. over time expected to come down as we watch them to begin to open the capsule, but, yeah, jim. i just think we remember dinner

i had a number of years ago with a lot of very wealthy people exceptionally wealthy. went around the table asking what would you want to do? what's one thing almost to a person they said, go to space >> go to space >> yeah, yeah. so morgan, there may about long list the i guess there already is, right? for virgin galactic and potentially blue origin at least in terms of the trips they had planned? >> reporter: that's right. david, i feel like you and i, our common question we continue to ask over and obsever again wt is the total addressable market for space tourism? we don'tster those hard numbers from either of the companies publicly yet, but both of these companies, whether it is blue origin or virgin galactic, continue to say, and have continued to say in the case of virgin, blue origin here to me over the last couple of days that demand currently exceeds capacity and the game plan over the

longer term is kind of like the early days of aviation the more they can ramp production, the more regular they can get with these types of space flights, the more prices can come down and the more accessible and mainstream this entire trip and process can become but that is going to be, that is going to be a route that will probably take a number of years to get to still. >> yeah. and getting ready to -- pull the -- >> reporter: there he is. >> congratulations to you. >> yep there he is. back on earth. >> a mig smile. >> jeff bezos, who's accomplished a great deal, of course building amazon, and blue origin, and now -- as morgan pointed out, one of the very few people to go into space. even if it was for a short amount of time [ cheers and applause you hear the applause, of course we still have markets to watch for you, and we are going to get back to the news of the morning

as well. here at the big board, by the way, it's -- auto group, diagnostic services provider celebrating the ipo. you hear the bell. nasdaq and the company owner operating copy centers ap recent ipo. man, a lot of ipos. >> look at the stat here. >> they begin -- there they are. exiting the capsule. there is mr. bezos. [ cheers and applause ] >> oh! there they come. mark bezos, jeff's brother.

>> congratulations congratulations! >> oh -- >> as you can see, what a day. newly minted -- astronauts being greeted by their family and friends here to watch this space flight, and, this space flight and historic moment out here in the west texas desert just 25 mimes north of the small town of van horn successful, smooth launch and landing. and as you can see right there, four passengers, look pretty elated to have gone on this rather short, just 11 -- minute

journey into space. >> yep quite something to have watched. all right. are we going to get back to following the markets here i think. as well. of course, you can see corner of your screen. the s&p does start the session off. jim, not a particularly strong open. >> no. >> i want to thank morgan, of course, for all of that amazing coverage joined by her again shortly, as we look at continued embraces of the astronauts that's mark bezos, i believe, jeff's brother lives not far from us in scarsdale, new york. all right. morgan, thank you. jim -- let's get back to the markets. the s&p is sort of, not much of an open after obviously a fairly small decline yesterday, although we will cut losses. >> and market transfixed like we were

i don't want to trust this opening. majority of people interested in stocks were very much interested in the launch. so let's give it a little time you want the market to have a dramatic rebound, because the futures were dramatically up, know, say 3:30, 4:00 a.m., but we're not going to get that. reflective, again, what's going on in europe so, so moved and i know that the ten year is not exactly as exciting as the launch, but it continues to confound people who want to believe that it's time for an economic expansion. >> yeah. those are yield levels that we have not seen and you have to go back quite some time. >> yet when you try to get a mortgage, believe me you're not getting that rate. >> no, you're not. >> i'm afraid you won't get anywhere near that. >> not one at 1.13 but one as a decent spread. >> not great. >> no? >> speaking to brian jordan

yesterday. by the way, first horizon, a very big bank and you're not getting that rate. he's not making that much money on these, obviously, but what i do feel is that you're -- i'm surprised there's not another big finance wave david, looks like everybody who wanted to may have refinanced. >> may have already done it. >> get to some movers this morning. start with ibm up about 3%. i mean, you followed the company closely. >> yeah. >> relatively new ceo still. obviously a big split of the company going to be taking place. i mean, revenues were flat but the market seems to be okay with that. >> well, i mean, citi goes from 140 to 150 says might be turning a corner and a little skeptical on a conference call for this company, gross margin. strengthening demand 162 to 164 i do think christner made a case, we have businesses doing

well pour free cash flow there. there are skeptics, david, who say, sure, debt paydown, but same time, how can you have growth, pay debt, have the paydown and have dividend? i think this quarter answered a lot of questions you can still have a raised dividend not enough answers for me about the spin-off, but that really wasn't the focus obviously the quarter. >> right. >> but it gave people confidence, but also there was a lot of, one quarter does not -- >> right are the -- parts of the company that are supposed to be growing quickly, and remember, of course, retooled the company to some extent. red hat a key part are they growing facility as they should be i mean, revenue up 17% -- >> for currentcy, right. interesting. since red had joined the fold and senior adviser moved on, a

four-time gain have good. usually don't give good logos but verizon, cvs mentioned before handled 10 million calls obviously because of covid talked lovely about the e-y relationship a lot of jealous, fantastic information technology company and sluchlumberger. against that all is people like to see gross margin expansion. >> yep he's not giving it to you, but that in a nutshell is what people are saying, and there are some people who said, whitehurst gone, maybe something going on red hat, don't like. just the opposite. so i think ibm will maintain it's lead today. >> okay. talk about the bigger companies as well, which, you know, apple, largest single market cap company out there. >> yeah. >> hit 2.5 trillion.

about 100 billion below that, 1.4. >> you're getting one after another. people saying looks like 2 million more iphones sold. i mean, today was ubs and talked average sells price up 2%. good gross margin growth people will like that. we had very positive comments about faang. jefferies comes in, stick with facebook and google. and remember, privacy issues there were people who felt -- there were. >> not a step down. >> a couple other stories involving apple not related to, to the main part of the business, but i thought interesting. one is that they did delay return to work by a month. now, you know, they had been having, they'd been reporting, at least, pushback from employees demanding more in-person time than some of the other big technology companies wanting people back as much as three days they pushed it out also could be framed as a concern about the delta variant. although it's not completely

clear to me that that really is the case it may very well be related more to them trying to get their policy in line with what their employees are looking for. >> people are struggling. >> brought it up many times and koc continues to be a big story in business who comes back to the office, when and how they will come back and whether you lose people if you are more stringent in terms of your expectations. >> the way to follow that, i find, look at gm and ford. because car sales are stronger whenever you have a hybrid model. people are at home and yet the raw costs of making a car have gone up so much, and the problem with supply, but also the problem with labor, that these stocks -- they had a very big run >> that's been your favorite. >> jim farley i think -- this is going to be the quarter that i think you're going to surprise the up side. why? taiwan semi basically gave you the high sign things aren't as tight. 40% increase in number of chips

versus where we thought. full featured chips. means that ford should not be down where it is >> okay. >> i'm saying, buy ford. i'm saying buy ford. >> saying that consistently for quite some time. right to do so in any real measurement. >> uniquely, talking in the fall about the first actual rival to elon musk. this -- the -- just -- incredible sales and great customer satisfaction. and car and driver magazine named it the best ev car of the year you're looking at me a little escansed jim takes this seriously. >> i would hope so owner of the company that's not going to happen most likely. >> no. he's a very competitive fellow. >> what you want to see.

tesla is a formidable competitor. >> i've seen this. >> really? >> he won't stop until he makes musk look bad. oh, no, no. >> says elon musk is not competitive. jeff bezos is not competitive? >> the musk truck is looking like the aztec. >> okay. >> aztec was particularly -- >> i understand. very ugly. i do remember. the other story involving apple, by the way, jim is that they are looking for a hollywood expansion, according to "the journal. expansion of apple tv, apple plus, and i have remarked for quite some time, at least for a period there where it should not even be included add considered to be a major direct to consumer platform because they got no library, but they are significantly ramping up their space, no question. >> there is no doubt they have unlimited -- well -- >> they do if they choose to, unlimited. >> but they're not bitcoin over

there. >> right. >> david, what do you think is one of the biggest -- haven't been able to check them all, companies based in los angeles in this case santa monica. >> senatechat. >> do you did they do? >> fairly large. >> $90 billion this week people looking for 84% revenue growth, july 22nd and -- david, buy that that's a buy. >> market value. >> evan spiegel, i actually have a picture with and sent to my kids that was -- >> i remember when he was here. >> evan speakal such a focused business person i'm hearing he's a -- >> no. never went, a nerd said that when things weren't going as well as they wanted them to. >> i like him. >> what are they getting right in your opinion at this moment >> has demo, david, and people keep looking can't get tiktok, buy some -- 70

million people spend most of their day looking at tiktok. i'm convinced. tiktok my wife has at least seven dogs that are -- dominate tiktok. >> tiktok, of course, owned by bytedance, a chinese company not public plans, but may be delayed. a regulatory crackdown going on in china continues to be a big story for us not to mention on antitrust fund, some various things. >> what do you think about m & a? >> hmm, i don't know maybe. maybe a little bit. >> i think people are trying to get deals done before they get -- severed. >> maybe regulatory climate changed to a certain extent no doubt, though, financing is abundant we did have a large deal yesterday, of course, zoom actually taking a look, because the stock didn't perform overly well and all stock transaction. >> and under current, bitcoin. which the bitcoin enthusiasts are mutant >> below 30,000.

>> tethered tonight. >> what are you -- >> being perhaps a bit of an achilles' heel >> you need to explain what, explain what it is for people? >> the money fund, it's like -- you can redeem it. biggest one by far happens to be tether, and it's the one that i think the working group in washington, be that yellen, talking about gensler. they're worried, i think i think they want to name -- i think they wanted to know what the company has in its coffers. >> okay. >> because you're expected to have something that is liquid, that looks like u.s. treasuries to some degree, and new york state will not let this company operate here, which i find to be -- what i call a red flag red flag. >> so there's concern? >> and they're really concerned in washington. >> does that impact all of crypto >> no. talking about this in the paper that i'm going to

go over tonight, you're really talking about people who are so concerned that they invoke things like, the lehmann brothers money fund. remember >> yes. >> break the buck situation. so that's something i've got a professor who understands exactly how -- how things can go wrong when people aren't expecting them and i know that gensler and yellen don't want this to happen this is a, you know, almost $60 billion potential achilles' heel. >> yes. >> now, i know there are people in line who desperately want this thing to not about problem, but i feel i have to keep it -- >> speaking of front and center. i want you to come back to something you mentioned. >> once people stop looking. >> the $26 billion opioid settlement getting very close. >> whew! >> between that and the states very good for them is it good for them? yes. >> and suddenly -- you don't

have that risk, you know, that's always a big risk. >> mckesson over 5%. you know we don't talk about it often enough, but unfortunately it's a name we are in the midst of it, 93,000 people from overdoses, most of them over the last year from opioids, jim. >> some challenge there. >> half a million people have died in the last what? 20 years >> i -- it's just -- tragic. and i don't think the settlement is necessarily going to make it so that education's going to change the situation. >> new york state -- a billion, overall -- >> the problem, david, i still find, how many pills you get after you've had surgery. >> right >> innydia down very badly today. >> i would -- >> 26 yesterday. >> yeah.

nvidia. >> i find tech, particularly semis gave us a turnaround and today we have industrials turning and obviously health care health care has been a missing element. >> yep health care, talked about it bob pisani for more on the broader markets as well. good morning. >> jim's right a mixed take two to done advancing to declining stocks defensive move from the open moved up from there. utilities led at the open. reits, strong, best performing this month as well leading. industrials up a little bit. tech's up as well. call it a mixed take the way to keep it the big issue, two big issues here what about this covid variant? how can we look at it and what will the federal response be if it doesn't go away two issues earnings are coming out. will ceos be more cautious in comments about reopening will that affect the earnings outlook or psychology at all and secondly, federal reserve.

might they be more cautious ending the bond buying program if there are major issues going forward in august and september, october? limited lockdowns of any kind at all? two issues one thing is clear, we are very oversold in large parts of the market take a look. using rsi, momentum indicator, short term when at or below 30, very oversold energy, russell 2,000, transports, s&p midcaps on oversold side and seeing baths today. reopening stocks given up 50, 60, 70% of gains for the year. these stocks up huge in january and february carnival, united airlines. schlumberger, all off highs. pretty oversold, if you believe in the reopening story obviously people are arguing we should be doing something, or buying in some way as for the earnings that keep going on

jim mentioned ppg. a real issue for certain sectors of the economy ppg, paint and coatings maker. business fabulous. volume up 24%. people engaging in all sorts of things that involve coatings, paints and automobiles tremendous raw material shortages, tremendous logistics issues getting the raw materials to them and as a result they actually didn't havea very goo earnings report because the higher prices that they were able to charge are not offsetting the higher costs. that's the big issue overall can you maintain margins raising prices to match the cost the case of ppg, not able to do that you see what's going on there. margins matter really a lot, remember, ultimately margin at least maintaining margins they're not. other companies have fastenall for example, supply chain issues, cost issues but also able to raise prices and

maintain margins conagra had a tougher time like ppg, higher cost issues but tough are for them to raise the prices to keep up with the cost issues you're going to hear more about this and other than the covid variant and what ceos feel about that and how that's the reopening affecting them, i want to hear more about these cost pressures and whether they feel they'll be long term or short term jim chatting a be that earlier on the highs for the day now, in fact, right at highs right now david, back to you. >> thank you, bob pisani. talked a lot about stocks anded bond market as well. get to the bond report this morning and look at how treasuries continue to fare of course as we pointed out yields have dropped dramatically in a very short amount of time and you can see right there. 115. 1.15 i think i did see a bit lower than that. >> so hard for banks to rally. they're trying. >> banks are trying to rally noticed that, but difficult to do so when you've got, looking

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and then they waited a while to be taken out a successful first trip to space for blueorian and its first playing passenger, of course, mr. bezos, hiz brother

astronaut pioneer as well. we're going to take a quick break. we'll be back with more.

jim, you got time to tell us what's on "mad money."

>> bed, bath, & beyond i think the turn is real there this is an emazing experience tech company and gary gordon, he wrote a serious paper last week with a fellow from federal reserve about are these stable coins stable and could they cause the next panic he's written more about the panic of our generation more than anybody and the paper is, let's say, frightening. >> that's a good tease >> stocks rebounding today, at least with yesterd'selofay sl f. we're back after this. on a full line of vehicles. at the lexus golden opportunity sales event. get 1.9% apr financing on the 2021 rx 350. experience amazing.

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tonight our kwcrime in amera series, plus insid . and new shepherd has cleared the tower, on her way to space with our first human crew. go oliver, you are going to space. >> jeff bezos and his blue origin rocket making history.

they reached space in the past hour and came down safely. welcome to another hour of "squawk on the street. we're live from the new york stock exchange carl has the night off we will get to her in just a bit at the rocket. you can see we are rebounding the s&p up .85%. and that brings me to m mr. santoli. >> gaining back so far about half of what we lost in the s&p yesterday. certain things were primed to bounce because five or six weeks ago is when the banks and energy started rolling over it seemed it was stretched tight. treasury yields stopped making new lows seemed a cue to come back in

s&p yesterday, in the morning. just about the sixth time this year it's done that. it's regrouped around that area. so t hasn't gone below and staybed low for very long. seizeinally things are tougher in midjuly and august. if we really extend this rally and get to friday's close, that's when it will say if this is a bounce and people are trying to feel it out or -- >> more sustainable. >> right 43.25ish little less than 1% from here. >> okay. let's get more on the markets. and we're joined by chief strategist at les schwab i want to start on the tenure. 114, as mike said. what do you make of it and what

does it say, broadly speaking? >> initially the move off the late-march highs was surprising. but when you looked under the hood, you saw there was a lot of positioning changing and massive shortcoming. now, you have to argue a momentum trade on a down side for yields that could push the level and probably has beyond what the growth fundamentals suggest. it doesn't only speculate or play the short-term trends it may be doing that in the treasury market as well. but it has been a factor in leadership, going back the march spike. 10% correction in the nasdaq and the subsequent move since then has adjusted leadership in the market >> you mention under the surface.

and mike as certainly pointed out many times there was a good deal of pain already, even though it wasn't necessarily in the mega caps we so often cover >> if you look at measures relative to the 50-day moving average, and the overall s&p rebounded, under the surface the numbers are a lot worse. yesterday's close, only 36% of the constituents trading above their moving averages and less for the nasdaq and russell if you look, and i put on my twitter feed this morning, breath charts. we're around the levels when we bounced last september but a long ways from where we were in march. i wouldn't be surprised to see if we're done from a breadth perspective.

because there were similarities in august, september time period, but no garnlts >> and in terms of your own positioning or bicease soekter wise, whether it's growth or value, what does it say about the cycle or expected returns? >> i think this is not an environment you want to make major sector bets. all you have to do is look on a day-to-day, week-to-week basis, especially the higher beta sectors recently like the areas of tech and com services, verses energy and financials and just how much flip-flopping happens on a day-to-day/week-to-week basis. health care, a hybrid, a value defensive play

i just think you have to be really careful and interestingly. if you screen on value factors, for instance, strong free cash flow yield and for instance, long term earning growth being value minded has served you well even in those areas the only sector they are out-performing value factors is energy so, that's just a recent highlight, what i always talk about, which is you need to have a more nuanced conversation when you're talking about the simplicity of the indexes or at the factor level >> you know, i wonder about the valuation sensitivity, just

overall, looking at the way the market is valued and say things look rich, certainly hasn't helped you in the past year plus you were at historically high valuations markets have amazing returns where do you think that puts us right now, whether in absolute terms, given what outcomes are likely to slow down in terms of growth next year and any way about valuations >> it tells you nothing about what the market is going to do in the subsequent, regardless how lofty or cheap valuations are. certainly what distinguished the period is we're in this massive acceleration when using traditional pe ratios.

and that's helped bring it, both down substantially, and probably straling by virtue of the strength in the second quarter the problem is, not only are you on the more expensive end of the spectrum, but relative to fixed income -- like, for instance a real learning shield, because of the spike in inflation, real earnings yield is now in negative territory so, you have to check that off the list of those interest rate inflation-oriented valuation met rix that you could have pointed to and said relative to low inflation, the market's not egregiously over valued. >> so too, end there, i know health care is something you like not many others. why health care, which we should point out is help today.

still over 11%, with one of the hospitals in the country having large earnings >> the various components of what we look at, fundamentals, valuation, macro conditions, relative strength, they pretty much check every box and gives you a little bit of the hybrid defensiveness, growth characteristics, and somewhat reasonable valuations. we have a couple of underperforms though and here it goes back to the whole value verses growth. utilities are valuable but really expensive so, you're not getting any value by buying activities so, that's another tie in to this nuanced relationship between growth and value >> thank you always appreciate it >> good to see you guys. >> you too

well, history was made in the last hours a blue origin launched the richest man in the world, jeff bezos, into space. along side bezos, his younger brother mark, and 18-year-old oliver damon the oldest and youngest humans to ever fly to space the capsule accelerated to more than three times the speed of sound. about 262,000 feet in altitude then they were able to float in micro gravity, float around, and the capsules were returned successfully and safely back to earth. beginning, i guess, with the launch a couple of weeks back with virgin galactic a new era of space tourism, where it's going to be a real

business and people are going to pay for the privilege of flying to space >> it's a a little bit an eye of the beholder because it's brief. but virgin galactic down 7%. i don't know that people are really thinking vacationers of the near future are going to decide one or the other. completely impressive. and you want to keep in mind that there have been technological leaps funded by these private entities that you may not have gotten otherwise. >> without a doubt and blue origin is in other businesses that compete more so with spacex in terms of providing a lot of assistance to nasa, for example, on space flights. not just about taking people but it would be cool to be on top of that rocket. take a look at bezos there

very happy, as you might imagine. i think he said it was a life-long dream, even before he became the richest man in the world. we're going to take a quick break here let's give you a road map for the rest of the hour we're going to start with turbulence for the airline sector united earnings on deck. and nearly 90 billion wiped off the crypto market. we're going to speak to the ceo of ali financial after they reported results. jerry is here! j! mate, how are ya!? it's so good to see you. good to see all of you, yeah! why is jerry so... popular? it's been like this ever since we started using workday. what do you mean? it makes it easier to develop great relationships with our suppliers. now everyone, everywhere loves jerry. they sure do.

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travel spots among the biggest losers there and taking a look at the sector for us, seema. >> and $1.5 billion is how much the u.s. economy is losing every week that travel bans on countries, like u.k., stay in place. it's wlhy a group of executives have been pushing to reduce restrictions i've been told they've been seeking meetings beyond covid tax mask to reopen boarders. hotels very much dependent on

international travel to be able to travel to london and other financial hubs it accounts for a large share of their business about 50%. hyatt at 25% and it's getting complicated by the fact that just this week a number of countries are reimposing restrictions, greece unveiling a curfew and the party aisle for many living in groups these are the type of restrictions that, of course, discourage travel and could post pone when international travel returns. guys >> thank you mark is trying to sort all this out let's break it down further, as relates to the airline sheila, good to see you this morning. if we could start with boeing, who's had another rough run.

and it's not just about travel volume it's about demand for new aircraft and product issues they have what's the stock discounting and what makes more sense in terms of an outlook with travel volumes and what it means for their pipeline >> there's no doubt there's a lot of turbulence heading to the earnings season. with the cfo not taking place until august 77 stopped deliveries and slowing down production rates. and asia hasn't approved the max and isn't taking deliveries. about 7 billion of usage this year so, there's a lot of turbulence in the near term but you have to look two/three years out to get to a level of

cash flow. >> two/three years you figure cash flow is back at normal healthy levels >> so, we're forecasting about 8 billion in free cash flow and that's excluding any working cash benefits. about 8 billion. and a 20% market discount. at a 5.5% cash flow yield, that's our 2023 estimate that's 60% below the commercial business but in near term, there's turbulence with losses and delivery hiccups >> and on the airlines, we're hearing from united later on stock 30% off of its highs what do you expect to hear from

the company later today about volumes going ahead and how the company's positioned for it? >> we're a little pessimistic on united, given it's the most transpacific-leveraged airline and just to give you a few air traffic figures, down 50% verses 2019 levels. international travel is down 70%. and a lot of that is because of europe and asia being down about 70, even though the u.s. is recovering and we think they're going to prolong leveraging, whereas love and delta don't have that issue. we're looking to see what they're hearing in passing potential bookings but what we're seeing in terms of activity is it hasn't impacted any travel just yet

>> and you mentioned southwest is that the name you would prefer here? it is more than 20% off its side >> these airlines sell off over the last three weeks, sell off 20% and take 30 days to recover, even though we don't necessarily see hiccups in the activity. that's been november, march, and the recent run up. but in terms of the preferred airline is delta, just given the leverage to transatlantic and corporate travel, as well, in the u.s. half its business is corporate, and half small enterprise. fourlt% in the june quarter, heading towards 60% in the december quarter so, we're looking for delta for the u.s. business traveller. >> and in terms of transatlantic, you think being

levered to that market is a positive to delta? >> we do this summer we're not going to get that run but we think that will be the next leg to open up and asia into 2023. so, a later recovery in the international route. >> thanks very much. appreciate it. >> thank you as we head to a break, check out shares of ibm. the company did report earnings up 32 bell it exceeded estimates, posting what was the largest revenue growth it has seen in three years. even though it was just flat all right. stay with us we'll be right back. by making it more affordable. that's why we're keeping our tuition the same for all online and campus programs through the year 2022. - i knew snhu was the place for me

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welcome back we're taking a look at the first plus rising dividend dvr, include oracle, sky works solutions and apple.

the shares are up this morning on quarterly results on ally financial. joining us is the company's ceo, jeff brown good to have you let's check out with the auto market particularly used cars consumer auto originizations, 2.9 million decision applications can this keep up or when will we see more normalization in use said car market? >> good morning. my first time on cnbc. so, excited to show case ally and coming off the heels of a great quarterly announcement this morning demand is incredibly robust. as you mentioned, 3.5 million auto applications. we expect to see13 million applications total and i would say early signs in

july it is not slowing down so, momentum is strong i think covid helped emphasize the importance of car ownership and we saw strong demand the midpoint of last year and that's continued through this year. but we're incredibly well positioned to capitalize on this ally is the most primed auto maker in the u.s and comprised of consumer loans and leases things are really good and demand looks like it's going to hold up well for the foreseeable future >> i think you said you expect used car prices to start to normalize. why do you believe that to be the case >> yeah. so, what we've seen on the first half of this year. if you use manhim, it's up and

that's what we've seen in our own residual values. that's a high number obviously demand is there. you're seeing constrained production out of the oems we would expect that to normalize. as oems start to out pace consumer demand, we would expect prices to gradually normalize. we think this is well into next year it's going to take timing before prices come off of what we're seeing today >> and obviously, you've accelerated your dividend payout and i think you're buying back as much as 2 billion in stock. i'm curious how you think about capitol valuation. >> sure. so, we were really excited a week ago

we announced aldividend going from 19 cents to 25 sents per quarter for common share we upped it from 1.6 billion to 2 billion. we are still running at capitol levels and well above regulatory minimums we will continue to be disciplined in the way we deploy capitol. but we're seeing growth in other avenues of lending we have across ally. our mortgage business and point of sale financial as well. >> one of the big stories right now, and a positive one, is how good a shape consumer balance sheets are have a lot of pent-up savings and therefore, the credit loss ratios are low across the

industry and the flip side maybe demand for loans is not what a lot of lenders would like to see. what are you seeing along those fronts you mentioned you're probably going up against a lot of the neobank, online-only operators at this point. >> yeah. so, first, on credit things are really about as pristine as they can become. we announce an hour ago, we have three basis points of net recoveries in our auto loan for the quarter. no losses right now. and it's hard to imagine that stays for the foreseeable future obviously, we assume a loss rate of 1.6%. we embed that in our pricing dynamics we are seeing increased demand

in our point of sale lending capability so, other asset classes are performing well. but to your point, i think they're still pent-up demand i think that's a sign of strength into the future so, our outlook on growth looks pretty holistically. we're excited about the reziltiancy of america and the economy. >> okay. well, make it out for us, this bold case you seem to be making about the second half is going to be as strong as the first half what makes that bull case? i don't know if it includes things like the spread of the delta variant? >> certainly risks out there, we're watching covid and we begun our own return-to-work protocols but being very mindful of the delta

variant and risks that presents. it's hard to think back a year ago. we thought the economy was going to crisis. and look at the rebound we've seen we feel really good about things the state of credit is extraordinarily strong right now. and we think that's going to continue to fuel demand and prices going forward is it here to stay or transitory that remains to be seen. but we feel they're well positioned to go in any direction. >> thanks for joining us for your first time on cnbc. >> thanks, guys. appreciate it. have a great day time now for a news update >> good morning. johnson & johnson along with the three biggest drug distribution companies in the u.s., are

reportedly close to a massive billion dollar opioid settlement ahead of the larger deal, new york state reached a $1.1 billion settlement to settle a case that's gone to trial. the true covid death toll in india may be 10 times larger than 414,000 according to researchers who looked at how many people died compared to previous yeared, regardless how it was classified and 4 million to 8 million floebly. and a fire near lake tahoe. it was sparked on july 4th by a lightening strike. then a police ovrs went into the flames to help people in a burning house. he's trying to determine who's in the house and catching them

as they jump from the second floor, and with his help, no one was inrejud. more 'squawk on the street" is back you packed a record 1.1 trillion transistors into this chip i invested in invesco qqq a fund that invests in the innovators of the nasdaq 100 like you become an agent of innovation with invesco qqq

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the stock market is reversing some of yesterday's losses the bond market is holding on. we have a bit more of a rally in prices steve joins us now to wrap it all up for us. and talk about the yield drop in the tenure has been dramatic >> it really has been, david and no single explanation, from my reporting, is dominating the street, for what explains the bond market rally that is, i guess, defying gravity it's brought the highest inflation in decades, the bond prices soared.

some of the explanations on the street, obviously, the delta variant creating a risk-off trade. but that's not true today while the bond rally continues you have a peek inflation idea, that it's forecasts to design from the opec agreement yesterday. the fed being more serious in fighting inflation since fed chair powell spoke last week, the yield has declined to 115 with a big chunk coming yesterday and seeming to continue today down from 174 in march john, from oxford, says powell's comments that inflation won't be a long-term problem. he says the yield points comes amid a lot of concern about the delta variant.

quote, it's a risk-off trade with fears it's going to temper growth a money manager who runs a lot of money out there says some institutions have been selling stocks that lock in the required returns for the year finally, whatever the reason or series of reasons more likely, then summer trading. it exacerbates the move, along with the idea a lot of the market is leaning in the other direction and they got caught. one good comment i heard is if you have gains in the bond mark, wouldn't be a bad time to take some of the problems >> no. doesn't seem that long ago that we were sitting at 1.6/1.7 on the tenure and people were talking about 2% coming very soon, perhaps as soon as the summer and it went the opposite way >> but david, if i sat here and

told you the yield on the tenure was two and a quarter, would you think that was weird with what the economy is doing, the stock market, the outlook? >> no. >> i think i could make a fundamental case for that. that's why the money manager says if you go two and a quarter, you lose an awful lot of money, verses what you gain if you go for 110. i can make a perfect case for two and a quarter given the outlook. >> that's why ritszer the story it is. bit coin dipping these days you have to keep everything moving and reinvent the wheel. with a hybrid, you can do both. that's why manufacturers are going hybrid with ibm.

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crypto under $30,000 for bit coin kate has the latest. >> hey, mike, bit coun had found support in recent weeks but it broke below the key number overnight. analysts are now watching 22 to 24,000 tlf for the next key support level. has wiped out all of its games year to date it's now down more than 50% from its high above $50,000 xrp are also down double digits today as well. and in the last 24 hours, here's a big number for you the entire crypto market cap has lost $90 billion and as far as what's driving, it's not any particular crypto related headlines. the dow at its first day of the year yesterday

bit coun is still trading like a high growth riskier asset. it's so far not trading like any sort of hedge against inflation. it's the publicly traded bit coin proxy and about $1.5 billion of that was available for selling, after a six-month lock up period ended this week. volume is a lot lower than it was in the second quarter. one trader described it to me. and the whole market situation as boring, the opposite of what a lot of traders are looking for. back to you. >> it's actually a bullish >> and morgan has been on site for the historic blue origin launch and successful mission to

space. >> a historic launch and a historic 11-minute, fully autonomous space flight, that minted four new athletes, including jeff bezos and his brother. i want to play you some of the interview right now. let's take a listen. >> five, four, three, two, one >> there we go awesome. good okay congratulations, guys. what a momentous day i know we were so excited to see the entire flight happen from the ground >> it was incredible >> and now we can add astronot to the long list of accomplishments for both of you. >> yeah. >> this is a life-long dream realized the success of the mission, what does it mean for you and the

company you have built and funded through origin? >> this is a tiny little step of what blue origin is going to do. we're trying to build re-useable space vehicles we need build a road to space so our children can build a future. this planet, and you can see it. when we're up there, you see how tiny this planet's atmosphere is down here, it's all around you but we need take all polluting industry and move it off earth this is going to take many decades. but that's what we can do if if we have re-useable space vehicles we need to do it over and over and get as good at running space vehicles as we are as a civilization of running airliners, then a better world for all of our kids.

>> you're known flute the business world for quite literally revolutionizing how people live on a daily basis how does that manifest from a space perspective? >> there's new shepherd, which is allen shepherd and the next thing is new glen. and new glen is a re-useable vehicle for orbital space travel that's the next step and really we need build infrastructure when we started amazon, we didn't have to build a pack dj livery system. it already existed and if you want to be a space entrepreneur, there's no real infrastructure that's an affordable cost. that's what we have to do is build that type of infrastructure and future generations will get to rest on top of it. >> it's a bold vision. >> and it's fun.

we had so much fun today >> how much of your time are you dedicating to the vision >> since i stepped down as the ceo of amazon, i have a lot of time to dedicate to this vision. i'm going to split my time between this and the bezos earth fund >> let get to the fun stuff. best part of this flight >> all of it, yes. all of it. >> i think my favorite part was the first 11 minutes of the tliet. from launch to landing i was surprised, once we were in zero g, i was surprised how effortless it was to move around, how naturally it came. i thought i'd be flailing around a little more. it was incredibly natural. >> it felt so comfortable and natural, not alien, and beautiful floating free. >> are you going to do it again?

>> hell yeah >> reporter: so, there you hear it jeff bezos, the founder of blue origin, and his brother. after that historic 11-minute, fully autonomous flight path, the designated start of space, known as the carmen line a trip that did include three minutes of weightlessness and took off vertically, launched from the desert and the capsule landed with the parachutes something, i think we all watched here on this network this morning >> morgan, great job and hell yes he's going back, i guess, into space. i'm curious about his long-term vision this is bezos we're talking about. so, you can't say he may not be

able to accomplish that. the idea of moving all polluting industries into space, obviously decades from now but that's what he's focussed on and rockets bringing whatever is needed back and forth from earth? >> as he touched on and has said before, when amazon was created there, was infrastructure to build out the company we know today, with all the different business segments and capabilities we sees space is at the crucial moment of needing a road built to space, as he has put it repeatedly he really sees blue origin as tasked with that mission we're talking about suborbital space flight and tourism it's one piece of a bigger vision that includes re-useable rockets to bring the cost of going to space down, and things like space habitats, lunar

landers to enable future generations to be able to do all these types of things in space essentially colinize the frontier we always talk about how does the competition fair because of the space billionaires but it's really much more similar, say, to elon musk and spac spacex than richard branson and virgin with the space flight >> and he mentioned the the rep in, figure this all out. remind us what that schedule looks like now, in terms of, you know, the slate of future flights and the backlog of orders and reservations and things like that >> well, you know what, they had -- there were four passengers on this mission today. you have the bezos brothers. you also had wally funk who at

82 years old became the oldest person to ever travel to space, you also had 18-year-old oliver daemen, who became the youngest. ole oliver was a paying passenger with today's flight, we saw the commencement of commercial service for blue origin's "new shepard" space flight system, two more flights with people on board expected before the end of this year and blue origin said they're already booking those paying passengers. so this is happening expect after the success of today, expect to see more of these flights with more of these so-called space tourists climbing on board. so, given the conversation we're having here today, i want to bring in a former nasa administrator, jim brydenstein great to have you on. >> great to be with you. >> you and i have had so many conversations over the last couple of years about this new emerging era of commercial space flight i wonder what you think of, the flight we saw today, not to mention nine days ago, virgin

galactic and richard branson it is suborbital, but it is still space and these are still astronaut wings that all these different passengers have now gotten. >> that's exactly right. it is in fact suborbital, but these are also entrepreneurs that are investing their own money. they're not getting billions and billions of dollars from the federal government to help develop their product here so it is amazing at the same time, we look at what jeff bezos just accomplished, he's also building the new glen, which he mentioned, going to be the orbital vehicle that, again, is going to transform how we access space. the goal for all of these folks is to drive down costs and increase access and really do it through innovation he mentioned this was, you know, the beginning and, of course, he needs to practice in order to do more but this flight that we saw today is really going to inform the new glen, and the upper stage of the new glen is going to have very similar capabilities as far as being liquid hydrogen, liquid oxygen

rocket for the upper stage of the new glen there is a lot happening here that is impressive it is good for america people need to give jeff bezos credit also for the be 4 engine, he's teamed up with united launch alliance to build the vulcan rocket that is going to end american dependence on russia and drive down costs and increase access to space. >> yeah. yeah and certainly the commercialization of low earth orbit, this idea of longer term, more broadly of colonization of space, some of the moves, some of the policy moves that were enacted under you and the former administration now speak to this moment that we're in for visions such as jeff bezos to actually begin to manifest. how long do you think this process actually takes >> it is going to go on and on

remember new glen is also still the beginning. the next big step is to go to the moon and blue origin has a product called blue moon that will take people to the serurface of the moon these commercial entrepreneurs are making huge moves that are going to transform humanity and move more of us into space, which is fantastic the future is going to be human space stations, commercially owned and operated, microgravity is a tremendously valuable resource when you think about how we compound pharmaceuticals or create immunizimmunizations, ad manufacturing, things like creating an artificial retina for the human eyeball, there is all kinds of capabilities that you can do in microgravity that you cannot do in the gravity well of earth. this has huge market implications and we're only right now beginning to understand what they are

>> jim bridenstine, thank you for joining us on this key day as this summer in general we usher in this new era of private human space flight thank you. >> morgan, thank you let's get back to the markets and dom chu, who has a sector sort for us. >> if you look at markets and rally mode right now trying to recover the losses, one of the key sectors is financials, bank earnings so obviously a big focus for traders. gains in the sector being led today by bancorp after better than expected report of its own. other regional banks, regions financial, leaders with investment banking giant morgan stanley. the gains come despite the lowest gap between longer and short-term interest rates since february that flattening so call of the yield curve. some traders seen as a negative sign for future bank prospects pose positive today we'll see if it sticks

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improving, at least if you're long, the s&p is up. a lot of it keying off the ten-year. >> it certainly coincides with the ten-year rising off of new lows that made this morning, ten-year yield we hit some 114. another five-month low, five plus month low that bounced to 120. seems like it triggered folks to say, look, a lot of the cyclical stocks, value trades, super oversold, really been kind of in the stretch of the downside after a few weeks of weakness. that's what's leading on the way up look at transports, energy, industrials. so, you know, it is a bounce, still. we still haven't regained on the s&p 500 what was lost yesterday. about a 66-point loss yesterday, to keep that in your head. we have 57 on the back right now. you get back to friday's close, see if it was anything more than just a -- let's check it out and see if the buyers show up there. right now, still, a 3% decline from a high, a bunch of 3% to 5%, nothing more than 5% since last october

and, again, sort of bounce where it scripted -- in a scripted way. >> if we see you later on "closing bell" and approaching or above friday's close, that's a positive sign, i guess. >> it is a positive sign, but you have to see what it does with it. if it clears it, it is positive. >> got it. always learning. mike, thank you. mike santoli that does it for us on "squawk on the street. "techcheck" starts now and "new shepard" has cleared the tower, on her way to space with our first human crew. go, jeff go, mark go, wally. go, oliver you are going to space