it's thursday, july 22nd, 2021 "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc i'm becky quick along with joe kernen and andrew ross sorkin. equity futures let's look at what is happening. two days in a row we have seen gains. dow futures up 86 points s&p up 7.5 nasdaq up 17 it is almost like -- it is like monday never happened. we have seen two days in a row of gains at this point, all of the major averages have seen gains for the week, too. before the green arrows this

morning. treasury yields were higher. take a look. the 10-year note is right at 1.29%. we can't get back to 1.3% yet. we are on the edge take a look at the squawk stack. it is not just the three major averages that performed well yesterday. you had the dow transports finally out of correction territory. now 9% from the 52-week highs based on the gains yesterday energy still under pressure. that sector is down. it is down by more than 10% from its 52-week high it is in correction territory. wti up 4.6% yesterday. with the gains, down 2.1% for the week today wti up 1% this morning to 71.11. bitcoin. look at this the price close to $32,000 we will talk in a moment about the b word conference where you heard from elon musk and cathie wood and jack dorsey

more on that in a moment >> no skeptics at the conference >> it was one big move 32,800 it came back down. it was headed -- it was at 29 and change >> earlier this week. >> yeah. and it's one of those lower highs with the slight moves it makes and lower lows i don't know if that is a descending pattern >> right >> last time we had one person and one person's opinion, katie stockton those it was high she said it finally had been put at the bottom. 30,000 is where the bottom would be if it reached 28. >> we'll see which way the trend is headed. an update on the by p partisan infrastructure bill the key vote on the plan failing

to pass the full senate after the republicans united in the opposition the measure was a place holder for the actual bill. yesterday, senator told us the bill wasn't ready. it asked for more time to hammer out details. chuck schumer asked for a right to introduce the bill at anytime to bring it up for a vote. >> it looks like monday, rob was quoted they were 11 votes short it wasn't going to happen. the 11 or i forget many rob has a letter signed by enough. it looks like they got 60. >> he said there are still key points they are negotiating with the white house. >> they are minor. they will go ahead with it a lot of republicans think why knowing what is coming after it,

why? we asked him we need infrastructure he says. >> that's what i was going to say. >> yes >> that's you. >> i know. i got it ethereum along with bitcoin rising after teslaceo elon mus made the comment at the b word conference he is accused to using his celebrity to move the cryptocurrency he addressed that. >> i might pump, but i don't dump you know, it is not a case of -- i definitely do not believe in getting the price as high and selling or anything like that. i would like to see bitcoin succeed. >> spacex. >> he owns it. tesla owns it. >> cathie wood suggested there are other companies that might start adding it to their balance

sheet to act as a hedge. interesting. >> we heard that from both sides. cathie wood will say that and mike will say that we have people like larry fink will say nobody is talking about this in sover soverence or true greater areas. >> main street action. that is why it had the move it had. the move is at 32,000. it was at 4 a couple of years ago. 4,000. musk said tesla would likely start accepting bitcoin. he wanted to confirm the renewable energy using for mining is above 50%. he stconfirmed he still holds bitcoin, but doesn't dump.

also his companies do, too tesla and spacex >> bitcoin >> right a book written for kids called that >> i think it is "everybody poops. >> thank you >> what is going on? >> you know the book "everybody poops." >> it's true it's true. >> musk also explained his love of dogecoin which started as a joke like that one. it since has gained traction >> the dogecoin community is irreverant and has great memes i love dogs and memes. it doesn't take it self too seriously. >> price of dogecoin rose on mr. musk's comments. also, look at shares of

mining giant bhp jumped overnight after the company will supply nickel to tesla from a mine in western australia. it is used in electric batteries. tesla said it expects to spend more than $1 billion a year on raw materials on batteries from australia. citing its responsible production practices bhp is at $76.38 gm is halting most of the large pickup truck production in america next week. the automaker is forced to make that move as we see the ongoing global chip shortage alex partners estimates the shortage will cost the global auto industry $110 billion for gm to slow down the big truck production, you know that is a big deal. that is the really profitable sales. dow inc out with quarterly earnings reporting adjusted profit of

$2.72 per share. consensus of $2.45 revenue above the wall street forecast dow had to navigate various supply chain disruption, but expects an upbeat second half as global economies continue to recover. we have news from vegas. shares of las vegas sands are under pressure second quarter earnings missing the expectations the company announced marina based casino in singapore will close for two weeks after the covid cluster. it has been quite a month. mgm and wynn and sands down at least 7% in july there is a question of trying to get people to mask up in vegas restaurants in l.a. are closing. all sorts of things happening right now. >> moving target when we come back, we will talk about stocks now positive for the week after monday's sell

off. futures are in the green again dow up 72. we will talk strategy right after this break among the highlights on the lineup, american airlines ceo doug parker joining usinterview. and join us with republican congress member kevin brady an asd transportation secretary buttpete buttigieg. "squawk box" will would be right back >> announcer: this program is sponsored by truist securities t. retirement income is complicated. as your broker, i've solved it. that's great, carl. but we need something better. that's easily adjustable has no penalties or advisory fee. and we can monitor to see that we're on track. like schwab intelligent income.

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futures this morning are indicated higher this comes after two days of back-to-back gains and strong gains. hundreds of points each time for the dow. the major indices have erased monday's losses. we have kevin from riverfront investment group and victoria fernandez at cross mark global investments. good to see both of you. obviously the market did a turn around this week the stock market looked at big concerns on monday about potential for growth it said never wimind we have earnings here. victoria, it is we will focus on this and not that? >> i think we had so much in the headlines coming from earnings we are looking at the huge number 60% growth in earnings for the quarter. it is dominating the headlines

there is uncertainty there the growth concerns are prevalent. when you look at growth expectations for the rest of the year, do we say we're at peak growth yes, we were we will have decent growth going forward. we people look at the overall economy and say we have a consumer that is flush with cash and a tremendous amount of liquidity in the market from the federal reserve. we have earnings going i don't think strong. as the third and fourth quarter will be decent growth potential. the market says liget's continu to trend higher. along with bond yields doing the samething. we have a better script for the year. >> kevin, the bond market is not throwing off the fears just yet. does the bond market know something we don't

>> i don't know it does yet. what the bond market is telling us right now is they are concerned about going forward. we have a significant amount of yielding debt out there, especially internationally that is starting to bring buyers back into the u.s. i think that has caused or put downward pressure on yields along with witthe fact we have e upcoming debt ceiling. that is causing the treasury to have to pull back on the amount of psupply they are issuing into the marketplace. there are several things pushing the bond market at this point. of course, you have the delta variant weighing on the markets as far as the bond market saying they are more concerned about growth than inflation at this point. >> kevin, six months ago, would

you believe looking at the 10-year yield below 1.3% especially with the growth in the queeconomy and the jobs numbers? >> absolutely not, becky i think one of the times i have been on the show, i have said i thought yields would end the year closer to the 1.80% to 2% yield. now we will continue to see below 1.5% this summer as the fed tapers in the fall, we will move back up to 1.50%. >> victoria, so many companies raising guidance and talking about the consumer being really flush. are there areas you are seeing cracks or is this a strong report across the board which is hard to see too many places at all where they are not knocking it out of the park >> it has been a really strong

ea earnings season so far, becky. i think the cracks you mention are going to be in the area the company s are changing through the influence. we heard from pepsico and coca-cola. unilever talking about pricing increases. the prices are going higher. this is what we need to pay attention to the bond market yields have come down because the market has started to believe what at fed is saying. inflation concerns are transitory although i think we are all sick of hearing that word they thought the majority of it is transitory, not in housing, but cars and hotels and airfares we have to start wondering if that switches and starts to become more permanent and then inflation does start to rear its head again that is going to be in housing and in rent and it looks like it will be from the companies that

have price pressure with their customers and they will start passing increases through. that is what i think we need to listen to on the earnings calls. >> if they pass the increases through, for the companies, it is not a big deal. you are paying more, but get more out of the consumer as a result i would be pricsurprised if the companies did not get harmed by raising prices and gm now stopping production of the big trucks next week because they cannot get chips. that chip problem is not going away it may take a year before you work that out because the problems you see everywhere through the supply chain and particularly in asia where maybe they haven't gotten a hold of some of the vaccinations as we have here. those problems could very well continue are you worried about that not being able to produce to make the sales? >> absolutely. supply chain is a factor of the

inflation component moving higher how long is transitory that is something we don't know. you look at emerging markets that actually we're starting to have a rebound and now we have seen a pull back because the vaccination rollout is starting to slow down now there is concern if we need a booster shot in the dominant countries. emerging markets won't get the vaccines they were anticipating getting. it does. it is a snowball effect. i think supply chain issues will be around for a while. even chipotle said we increased prices it helped our revenue. that will continue i think the supply chain issue is there not in just automobiles, but manufacturing in it general. we heard about it through the small business surveys and through the ism and pmi numbers. those are key things people will be watching to see how quickly does the transitory component go away and that's just something we don't know the answer to yet.

>> victoria, kevin, good to see both of you this morning we appreciate your time. we'll talk to you again soon >> my pleasure. >> thank you coming up, new developments in the fight against, in this case, opioid addiction. the issue to prevent california wildfires and what started them just ahead, dr. scott gottlieb will join us with the latest on vaccinations and the delta variant and maybe the lambda variant here is dr. scott gottlieb on "closing bell" yesterday discussing the sl slow fax vaccination rate in america. >> you will see a down tick again in inflections these vaccines work well in the virus, including the delta variant. i feel like they might have a better finance system than we do.

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a massive settlement in the battle against opioid addiction after two years of negotiating three drug distributors and pharmaceutical giant reached a $26 billion deal with the states that would release them from legal liability. the companies in the opioid epidemic the attorneys general says it p paves the way for billions of dollars for prevention services. the companies involve include j&j, cardinal health and amerisource bergen and mckesson.

they pg & e will bury thousands of power lines this is a reversal of the company's stance that doing so would be expensive the company ceo patti poppe took over in january of this year she said the company had long argued that undergrounding was too expensive, but now they believe it's too expensive not to bury those wires underground. pg& e ignited fires that killed more than 100 people and most of the fires were sparked when the trees were hit by the company's power lines. if you want jobs, bury the

wires. have you looked in the sky in new york >> the smoke is all the way here red sun. >> two days ago >> if you look up in the sky one over here. it is all connected. >> unsightly you never do it for that reason which is why they said no. too expensive. when you realize what is happening. i like to bury all the wires wires on my property in the back running along. >> the kernen family should sponsor an underground effort. mini infrastructure plan >> you would go along the neighborhood and down undermine and come back up >> for enough money, joe, you can do that. >> i know contractors that will come in and bury the lines >> it's possible it just costs dough.

>> cost analysis >> they will stay where they are. >> patti poppe. coming up when we return, we will talk to dr. scott gottlieb to weigh in on the latest headlines of the delta variant and the vaccination rate in the u.s. lots of questions for him this morning. plus earnings on deck. at&t and southwest airlines expected to report in the next few minutes. we'll bring you the numbers and instant reaction as we head to break. this is the look at the s&p 500 winners and losers

all right. earnings just crossing from at&t adjusted quarterly profit at 89 cents a share. they came in with revenue above the forecast number. at&t saw better than expected customer additions in the wireless business and lower than expected churn rate. 0.69%. the lowest at&t has matched the be best they have seen with that.

we heard from verizon yesterday. low churn for both at&t, when you talk about the post-paid phone app. 789,000. for verizon, 355,000 at&t had 246,000 fibernet adds you will want to see what happens with some of the things. the company says it added 2.8 million subscribers to the hbo services it has been a year since hbo services the company will say they took a $6 billion business that wasn't growing and now they say they turned it into an $8 billion run rate business that grew 40% in the second quarter we dig into more of the numbers and see more with it with at&t shares up 1% right now yesterday, we spoke with hans vesberg of verizon he said they were stealing market share it is not just consumers flush, but willing to spend on phones and also wireless coverage and

internet connection. they are stealing market share if you look at at&t and what they put out today they have strong numbers we have yet to hear from t-mobile we will see consumers willing to pay up for these things. at&t shares up 1%. verizon up another .30%. t-mobile shares flat. covid cases remaining high in the u.s. as the delta variant continues to spread. joining us is dr. scott gottlieb he serves on the board of pfizer and illumina so many questions to ask you, doctor we are seeing restaurants in los angeles, indoor eating shutdown. do you think those decisions are the right ones i know a number of mayors and governorss of other states and cities are starting to think about whether they need to take similar steps. >> i think the right decisions are the decisions that local

officials need to take to mitigate the circumstances on their ground i think you will see a lot of issues how the country handles the infection with the previous lance. i would support any local official who needs to take temporary steps. the end game is a final whatever of infection we talked about this we anticipated the summer would be quiet and surge in the fall of b.1.1.7 we have therapeutics and vaccines to deal with it we are better at treating it it is like a second flu. we are seeing right now that the end game is a very big waiver of infection in the summertime with more transmissible variant earlier than we thought we would deal with because the variant

was prevalent sooner than we expected against the community that is not vaccinated if the original estimate was connect and the wave of unef infections, we would deal with a strain that is not as contagious as delta and we would be dealing with the population with more vaccine than we currently have it is making the circumstances more difficult than anticipated. it was always playing out with the surge of infection that would happen general the population largely did not want to go back to mandates as we said before, the people worried about covid are vaccinated the people who are unvaccinated are not worried about covid. you don't have the populous support for the restrictive measures >> if you are a business leader running a company today and for example, apple decided to push back the quote/unquote return to

the office to october. a number of businesses and many businesses planning to do across the country at a minimum by labor day if not earlier how do you think about that? what is the right call >> i think you will see more of that the challenge right now is we have a lack of modelling about how this is going to play out. first of all, cdc is putting out no modelling which is hard to understand a consensus from a group of ten academic groups that model the virus. they mostly show a peak around back to school and back to school the dispersion in the scope of the epidemic they are predicting across models is wide. there is no agreement between models they are having a difficult time modelling the wave the bottom line is we will see continued growth for the next three or four weeks. a peak in late august or early september. it is possible a second bump as

kids go back to school as kids are vectors of transmission with b.1.1.7. this will come and go. as businesses want to open against the back drop, october may be prudent september was iffy under the old scenario september is likely the resurgence it is always iffy you reopen against the back drop of the final surge. i happen to believe we are further into the delta wave than we are measuring this may be over sooner than we think. we docn't really know. we are not doing a lot of testing. most of the testing is now at home with bianax now vaccinated people are not presented for testing. and healthy ones presenting right now are not testing. >> that is my next question. as kids go back to school and my kids were in school all last

year with masks. i don't know if you think with delta it will be much more difficult. then i was going to ask about testing. even testing those who are vaccinated and whether that is necessary. especially if you are running a business where people are going to be on an open-floor office plan or warehouses or other things, those that are already vaccinated >> i think it will would be hard for governors to have mandate on masks as you return it to schools. a lot of red states said they will not do it you will see a lot of states leave it up to local officials if masks will be required. i don't think it is a public health necessity to test people who are vaccinated to see if they might be asymptomatic i think we need to understand whether or not people who are vaccinated are more likely, if they do get infected,

asymptomatic or mild infection, be able to transmit the delta variant. if you were infected with the wuhan strain or b.1.1.7 and you get infected, you are far less likely to be infectious and transmit if you deal with the new variant with the levels you achieve are thousand-fold the original strain, it is possible you are shedding more virus and could be more contagious. if you are vaccinated and have a mild cold, do you go around your kids are you around an elderly individual who is vulnerable do you take more precautions do you avoid the circumstances even being vaccinated? that is the question we should

answer the only way to answer that is to test so cohort of vaccinated people to see if they are infected and if they are likely to transmit. the cdc should collect that data right now to answer that question that will be a critical question it is very likely that the strain we're dealing with in perpituity this might become the new coronavirus until we have another form of the virus to come along and displace it >> scott, you mentioned the idea of the governors having a hard time asking kids to go back to school to wear masks they will legal it up to the local authorities. that's their plan at the moment. the state health department is not recommending kids. kids under 12 who haven't had a

chance to be sflavaccinated that puts a lot of pressure on every single school superintendent to make a decision to alienate at least 30% of the population no matter what you decide. >> look, any mask is better than no mask in my view setting aside not a lot of political support for mandates on masks, with a more transmittable variant, we need to ask how much you are producing with the mask with the appropriate level of bang for your buck with the measures and what you could be doing. with a more transmissible variant, the mask is not protecting you even with b.1.1.7, we asked people to wear two masks this is more contagious than b.1.1.7. if you put cloth on kids in classrooms, you will not have

large droplets to transmit you have to invest in something with children creating pods or spacing out children more in the class or suspending certain activities where people congregate and not having group l lunches. there may be other things to reduce risk production than with mask where we know there will be spread with masks. if we are going to tell people to wear masks, we need to educate people better than quality of masks and the differences in terms of the reduction or risk with the different masks. >> okay. dr. scott gottlieb, i appreciate it joe, you have anything >> no, they said we have to go a long, deep question. >> we will talk to you tomorrow. appreciate it. we have southwest airlines reporting adjusted quarterly loss

35 cents a share analysts estimating 23 cents a share. southwest says it will be profitable the remainder of the year and gary kelly will be on "squawk on the street" at 9:30 a.m. and ceo doug parker will join us after that report from american airlines "squawk box" is coming right back >> announcer: currency check is sponsored by interactive brokers. the professional's gateway to the world's markets.

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we have stocks to watch this morning. first up is csx share higher after better than expected second quarter results the ceo says they are working out challenges the second quarter numbers beat the street with texas ind industries third quarter revenue guidance is below what the street is expecting. that is leaving investors concerned about the ability to meet soaring demand. that is stock off 5.25% and kinder morgan shares sliding after the outlook cut for the year this is months after the company raised estimates following the

surge of gas during the winter storm in february which knocked out half of texas' power plants. strap yourself in >> seatbelts >> this is going to be a long read i can split it in two. >> you need to take a breath >> a seatbelt that i need to go to space >> they weren't really strapped in >> jeff bezos talked about his face >> feeling the gs. they got right out of it we'll have mayor pete. not mayor pete secretary pete >> secretary pete. >> he is ready to go he can't afford it check this out give him a few more years in government 1973 application from steve jobs' is up for auction again as a physical copy and nft.

that sounds like what we talked about yesterday. get either one the handwritten document has gone up for auction a few times before recently in march when it sold for $222,000 the organizer said the sale is meant to highlight the difference if perceived value of digital versus physical. hamptons home prices, andrew, surging to record highs as demand continues to increase for luxury long island houses. according to the report. >> don't show my house like that on the air that's it. >> the one you rented. according to a miller samuel douglas record the median price in the second quarter jumped close to $1.4 million. >> a close up. that's not mine. >> a 30% increase from last year 675 deals made in the second quarter. 25 of which went for above the

asking price it they they need to put in another road they need to do that before i can think about it one microsoft start up is offering a way to remove cigarette butts from the beach with their robot beach bot it can identify cigarette butts with the help of microsoft's artificial intelligence systems. >> is this the problem too many cigarette butts >> can they do this with syringes >> the company behind it hopes to expand the clean up to other types of waste there you go >> i can take my seatbelt off? >> yeah. i'm done take off the seatbelt. who's still smoking? >> i don't know. >> do you see someone smoking,

don't you wonder >> yes, but i walked down the street the other day and i saw someone smoking a cigar. how do you feel about that >> when i'm out, i see people. >> do you? >> i don't. >> do you see the jobs' application? i was trying to read it. they asked his major english lit. his phone. none good luck trying to catch me i'm here for a job application if you don't have a phone, how do they reach you to say come on in none coming up, we'll dig into at&t quarterly numbers as the company looks to slim down could the advertising unit be next on the block? as we head to break, check out the faraday future flagship car outside nasdaq today 150 horsepower 0 to 60 in 2.4 seconds

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er a. at&t reporting earnings and revenue that beat estimates. a lower than expected turn rate. adding 2 million domestic subscribers. i guess it comes under your umbrella a little while longer i guess telecom is part of media.

>> until when? thens it over? >> i'm saying there's so many other things in media sara would be ready to talk about like netflix. >> that's true >> sara, won't at&t share holders have a stake in how well zazof runs those >> that's true this will have some upside that 2.7 million subscribers and they think they'll have 70 million subscribers to hbo and hbo max. the fundamentals are in good place, joe for a long time, they were so distracted, we weren't hearing as much importance like the postpaid phone subscriber or the fiber. the lowest turnover.

great for the first time we are hearing great things about the fundamentals. they spent millions. they are probably going to sell it way less than a billion that's been the weird thing about at&t they are doing well in phone and interfwhit there has been so much other distractions they need to spin out in order to get to 5g. >> how about netflix

disappointing or about as expected still $500 stock any media company could have bought five years for a tenth of that. >> earlier this year, anticipating the growth. the guidance for q 3 was pretty low, joe >> what made the street happy is that they are starting to invest in new tricks. gaming is the big one and investing to make their franchise more sticky like

the street was more excited about that subscriber growth is slowing down and it is a problem for netflix. >> they need more, i really quality content. you don't just roll out some crappy movie that's what they are doing and not working for me >> i agree >> that little n which signifies a netflix original, i blaze right over that. that's a problem for netflix >> you seen dr. death, yet on peacock. >> no, i'll add it to my list. >> only if you can sit there and watch someone butcher an operation. >> no, no. >> pretty good >> a huge lineup coming your

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stocks look to make three straight gains up beat worries and waning worries about covid cases move markets higher one of those areas getting a

list, american airlines. a test vote on the bipartisan infrastructure plan fails. we'll talk to ways and means leader the second hour of "squawk box" begins right now. >> welcome, u.s. equity futures at this hour we are in the green with the dow up 86, 88 points s&p up about nine points and the nasdaq up about 25 points. a slew of earnings, joe. >> including american airlines let's get to phil with the numbers. >> hey, joe.

american airlines reporting better than expected results for the second quarter a loss of 1.69 well below what the street was expecting. revenue better than anticipated at $7.4 billion. the estimate was $7.34 billion in the second quarter, revenues up 87% compared to the first quarter. we saw a surge in demand the 3 q guidance capacity will be down 15 to 30%. both of those in comparison to the third quarter of 2019. that company not forecasting if that could be profitable in q 3

or q 4 they are going to pay down the debt that total debt, it plans to pay down $15 billion by 2025 a lot to discuss we'll partner coming up in a half hour. we'll talk about whether or not the company believes pretax profitability is just around the corner better than expected results in the second quarter from american airlines back to you. >> got to open up to europe. that will help >> should we ask secretary pete about that >> every executive in the airlines industry will tell you, they need europe to open up. we can go there but they cannot come here. we need that change. >> we will do that, phil

thank you. secretary pete coming up >> phil, what if people prove they are vaccinated. would they be okay with that >> would the airlines be okay with that? sure, they would the biggest issue is that for a long time, the united states has said, look, we do not feel comfortable that europeans can come over here because of the delta or the covid-19 and now the delta variant. as it has surged, the question seems like it has gone to the back burner in washington. >> it's a longer trip but if you want to come up through the southern border.

>> if you want to go anywhere in in the caribbean >> you didn't take the bait. phil is a pro. >> i knew were you where going >> next time, i won't even try let's get to dom looking at some of the big movers this morning. >> by the way, why phil is such a role model for us. >> that rally has been extending that gain and steam, would you believe it if i told you the markets were now 1% away from the highs and that eight sectors are actually higher on the week now. three top performing sectors on the basis are industrials up nearly 2%.

consumer discretionary and financials are up. industrials, consumer discretionary. pushing those values higher. two stocks to watch giving notable action this morning. shares of microsoft are up and to $387 a share. exxon 58.24, named a top pick in integrated oil and gas with analysts at jp morgan. they think it is a good play overall. the rebound is happening with regard to cryptocurrencies almost 32,000. up about .017%

etherium and a couple stocks. coin base up about 1%. microstrategy up 1% building on a massive gain on the heals of elon musk and spacex owning some crypto back over to you dom, thank you far days futures starts trading today. the luxury vehicle maker take a look at that vehicle sitting outside our studio as we speak. a quick check on the markets right now. squ squawk returns in a moment designed to work better together. save, spend, borrow, invest, and earn cash back rewards, all in one app. that's how you get your money right with sofi.

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. welcome back beating estimates with the latest quarterly results distributable shares came in at 82 cents profits soared after value of investments. that stock now up about .08. jon gray will join us next hour. luxury ev maker faraday

future the ff 90, is it a prototype we have out there today >> good morning. thanks for having me here. it is ff 91 in front of nasdaq it is a great day for us an important milestone for the company. now we are going to deliver this car over the next 12 months. >> it has a lot of features. the one that gets me is 0 to 60 in under 2.4 seconds 1,050 horse power. that's not what defines this brand for you. can you explain what iai is and

some of these buzz phrases you are creating a third internet living space where you have a 27 inch rear screen with zoom capability. you go home to the car and office and you are connected all the way. >> ffie stands for intelligent and internet and he is electric and eco system it drives looic a race car if you want but every other seat is a great seat you can work, can you relax. it is a complete different experience >> you are coming through a spac today, you bristle at the term startup. not only have you been around a while, you are close to having manufacturing capability to start as soon as next year

>> correct we are not really a startup. we invest 2 billion in technology for scale of volumes. we have contract agreement in south korea. >> you have plans to go quickly into more affordable markets within a couple of years in the premium time, the way this works, you have to start from the top with a halo

product. not too many people can afford it this brand after 18 months and a smaller version and certain project will come after to address the market >> what about the qualitative difference and i like the color of this one? >> what you see is the top model. it will be beyond $200,000 it will compete with mefrcedes and then starting at $80 and the more competitive is around

$40,000. >> we have a submerged cell cooling technology if you would jump on 100 degrees day into a 60 degrees pool, you will cool down very fast it converts to the best and longest range. >> very rapid charging what does that equate to >> you can charge with 200 kilowat hours. you can charge the battery to 80%. >> you are also developing a last mile smart electric vehicle. how advanced is that right now >> we have a concept ready and we were working with one of the big players on the west coast. they need purpose built vehicles

a lot of different spes specifications >> the spac ffie you have almost a billion to build this out >> yes it is a very exciting day for us the seats. i sat in the backseat. you sit there too. carson thank you. good luck. ffie

make that light. >> coming up when we return. netflix subscribers and growth slowing down taking a look at the company's strategy after the break. american airlines here to talk about the state of the airlines. that's after this. which is the hottest planet in the solar system? the answer when we continue. ha ha. jill is certainly upset with that unexpected bill from her back surgery. aflac! let's see that one more time. ♪ ♪ (bleep) (wincing) oooh, right in the wallet! ouch! aflac!

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a checking account. its low cash mode feature gives you at least 24 hours of extra time to help you avoid an overdraft fee. you see that? virtual wallet® with low cash mode from pnc bank. one way we're making a difference. which is the hottest planet in the solar system? venus. average 842 degrees. its proximity to the sun and dense atmosphere makes it the

hottest planet >> for now >> netflix reported subscriber numbers expanding into mobil games. john ford is here to weigh in. >> netflix is crushing candy now in mobil games no wonder the stock is down 3% subscriber growth has been slowing for a while now once you x out the pandemic pop a lot of people want netflix at the price they are charging. disney plus and hbo. amazon, apple that means bored

people around the world have more to come that means it will be harder. >> the average revenue per user came in higher than most had expected >> on the other hand, netflix might be a step ahead here these are not just a desperate cry for attention. opening the app, discovering new shows. these can do what disney did a generation ago it gained a million in asia pacific. pushing ahead with a cheaper

only mobil solution others are reaching up. tiered pricing and data keeping local users happy. first netflix used and streamed other people's movies and now it is making its own creating enduring brands. >> that's not going to be easy on a budget. they've got to be good they need to do a pixar sort of thing in the streaming and digital realm. >> they've presented before. >> do you believe changing will change >> gaming is tough

>> they love tvs and movies. now gaming is the new thing. amazon is trying to figure this out. hit games are elusive. i'm interested to see how they are able to tie a gaming experience into a mobil app experience that will be hard. they are amping up with talent to do it >> nice to see you things change, the more they stay the same. >> content wise. didn't someone say content is king like 50 years ago would you like to be a really talented creative writer type person right now >> i would like to >> you've got 20 people egging and throwing money at you.

putting the writing team all those dollars. think of some of the things we've watched. when you watched breaking bad, weren't you blown away >> still to come, our interview. and congressman kevin grady and pete buttigieg good time to be an agent for writers too. watching "squawk box" on cnbc.

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welcome back to "squawk box" this morning the futures are higher monday was a big down day. we've reversed all of that this morning, dow futures are indicated up by 36 points. futures are up by four nasdaq up by 18. >> quarterbackly profit up

at&t saw better than expected customer additions spinning out and merging with discovery dow component do you with adjusted profit of $2.72. beat theestimate of $2.45. expect an up beat second half. he made that comment at the b word conference. musk has been accused of using his celebrity of moving the

prices of crypto he addressed that during that conference >> i might pump but i don't dump i definitely do not believe in getting the price high and selling or anything like that confirming that mining is above the rise and the individual still holds bitcoin as do his companies tesla and spacex when we return, talking about getting joint

infrastructure plan done join us live on the app. we are back after this

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>> phil brought us those numbers and joined us with the exclusive interview. >> well on our way the story of this recovery are up 87% versus last quarter >> aim airline we've grown a bit. 87% growth enormous pent up demand. recovery is upon us and we are well on our way.

>> q 3 you are looking at capacity being down 15 to 20% compared to q 3 of 2019. is q 3 into q 4, is the transition the same in terms of the growth there or do you think we are in this period where we've hit a bit of a plateau, if you will >> we intend to keep going it will be about 90% we are going to keep growing as deman demand grows we are flying morecustomers.

staffing, how comfortable are you. >> we have45% more capacity. that's all behind us people are making that happen with enough people to make that happen >> transatlantic how frustrated are you that the

biden administration hasn't said brits and the uk, they can come here we can go there? >> we've done a lot of lobbying. they know the issues it seems as though we should be at a point where citizens of the united states. >> there are bigger things at p play they know the issues when they decide it is okay. we'll be ready. >> are they being too conservative >> they have bigger issues i'm certain things like the variant lead to the administration saying we don't

want to send signals to the americans that things are getting better again, we've let our issues be known. he understands the issue as well as anyone. we'll get there when it makes sense. we are ready when it makes sense. american citizens are ready to fly when it all makes sense. we'll be patient about that. >> i know andrew has a question for you. we talked to dr. gottlieb. he said masks may not have been nearly as effective early on which raises the question whether you should require or mandate vaccines to be a passenger. that would be a forcing mechanism within society to try

to get more people vaccinated. where do youstand? that's not going to be a requirement and not something you'll see in the united states. we talk about income and equality a lot united and others are getting rid of some of those really small planes because they don't have a front cab inn

would you ramp up for lack of a better term, the first class experience which way is america headed in terms of the experience itself >> joe, i think all of us look to serve all flying passengers look to travel american is a huge player. we always go to meet the demand and what you are seeing is more differences. you will see more where they are

able to meet that need >> you said you didn't anticipate vaccinations will be required in the united states. would you be willing to go along with a vaccination requirement if it meant you could start bringing passengers back from the uk, from europe? we have transportation secretary pete buttigieg we are going to ask him about that >> all the airlines are ready. some countries we fly to require it we can do that but i don't think the united states is headed that way. i think it is much more leaning towards staying with the requirement you have a negative test within 72 hours >> corporate travel is back.

you are noticing a real increase in bookings. let's say a year from now, two years from now, will it be remarkably different than what we saw prepandemic >> we are seeing business come b back it has doubled a lot of that is more the small to medium business >> that is who is traveling right now. the small corporations are more anytime bell my belief is that we'll get back to 2019 levels and take off from

there. there may be two different places but business needs to travel it is a social organization. >> you made a commitment you'll pay back $50 billion in debt as we move to 22, 23, 24, 25, 26 >> we pre-paid some today. american airlines pre-paid a billion in debt not even due for two years. trading at 75 cents on the dollar and got paid two years in advance at par and we are going to keep doing that we have some

work to do we'll continue to pay down debt with our free cash flows >> doug parker on a day they reported better than expected results. revenue continuing to grow as demand continues to grow guys, back to you. thank you. coming up we'll talk taxes and infrastructure with ways and means committee member congressman and the acblk stone coo jon gray we'll be right back.

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as president biden continues to push ahead with his american jobs plan, joining us now to talk spending is texas congressman kevin brady. the lead republican on the ways and means committee. let's talk a little bit first about infrastructure we know that plan got voted down yesterday. the bipartisan plan we hear a

vote could be taken again on monday >> i'm like you. i hope a vote can be done. they are at work to find a path forward on true infrastructure and real ways to pay for it that doesn't include crippling tax increases. linking it to the spending bill. i think they'll find bipartisan support to this. >> we had senator rob portman on with us yesterday. he said he thinks eventually the democrats, their plan is to go it alone anyway. do you think that's the case

>> yeah, i hope not but i think it is probably the case. i think they'll throw this into a near ri $5 trillion spending package and a lot of tax hikes a lot of bad policies. their last chance to throw everything at this i think it will fail again, look, we can do infrastructure in a smart way. if you are tying it to the massive spending continuing to be a problem, it's a mistake. >> you would think if they could do it, they would have already maybe they don't have the votes for that either. >> they don't have the votes on these tax hikes. i think that will become an even bigger problem

i also think back home, members of congress are hearing about inflation and from a lot of job traders about the impact of these tax hikes. i think the foundation is changing under speaker pelosi. they need to recognize that. >> congressman there is an oped piece. the point is made the president kind of showed his hand. people say he misspoke when he tied it to the reconciliation bill they call it bipartisan.

p it is going to be $4.1 trillion total when everything is said and done, why would you enable this to happen if you really don't think $4.1 trillion is appropriate >> short answer is, we won't be supporting this. the president probably killed the whole infrastructure pack with that statement. he's tried walk it back. the speaker and senator schumer have not you are saying the first one is not going to go? not if linked and compared to. >> that sounds like semantics.

>> no. pelosi says she won't pass it. >> i should be more clear. >> if she agreed to back off of that, should republicans back off of the first trillion? >> i should be very clear. we are not supporting that infrastructure bill in any way weeks or months it will not have our support, period. i think they are going to go ahead and try to jam this through september and november i'm predicting they will fail. i want to ask you about irs enforcement. the republican party has been all about law and order. it seems bizarre to me that we don't want to enforce the laws on the books already, which i

would have thought would help prevent the need to have higher taxes. >> the fact is we want to close this tax gap and do it in a smart way. we think every american ought to pay their taxes. the question is, what are the tax gap. they are guessing on cryptocurrency we think this will create revenue. we've seen one of the reasons it runs into problems will not create the revenue >> even the treasury department has provided estimates that every dollar you spend you get $2 to $3 back. >> even irs admits you cannot

close the tax gap what we won't do is become so intrusive in people's lives like reporting your transactions that won't fly but i do think there are good solutions here. >> there are good areas where they could crack down and it seems like they could do just that >> it would make very marginal gains. the truth is, the irs, they

don't have a good record on smart recovery they need more money the computer systems are out of date >> andrew that is part of the problem. we tackle the issues every year. the fact is enforcement alone won't get you through there. what does, a far simpler tax code and some really smart reporting and auditing the question is, can you find a smart way. the truth is people are cheating because they know they can cheat

the chance of getting caught is so low today >> i will tell you, if you look at the biggest part of the tax gap and what the irs believes needs to be done requires a major intrusion. >> we shouldn't have tax laws then >> look deeper, you'll see a lot of challenges here i do think there are solutions >> thank you for your time today. >> big hour ahead. transportation secretary pete buttigieg is with us today dom chu monitoring what's the latest. >> an unchanged decision expected they kept their key benchmark rate unchanged

finance rate at zero percent just about negative half of 1% they have kept in place a pandemic bond buying program at $1.85 trillion euros through march of 2022. we'll continue to monitor the market here. we are expectinghe t press conference with christine lagarde at 8:30 a.m. front desk. yes, hello... i'm so... please hold. ♪ those days are done. ♪ i got you. ♪ all by yourself. ♪ go with us and find millions of flexible options. all in our app. expedia. it matters who you travel with. expedia. ♪ ♪ ♪

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good morning we are currently looking at another positive open. we'll speak to that company's president exclusively. and no deal yet close to an agreement and pete buttigieg, treasury secretary as the final

hour of "squawk box"begins >> good morning. futures are up and after monday's losses some of those have been reversed check out the price of wti crude that gained more than 4.5% since its best day mid-april senate republicans blocking and that was to be expected. yesterday's vote was procedure al the 22 member bipartisan group

said they've made significant progress and are close to a final agreement. joining us now with the white house take, transportation secretary pete buttigieg i came up with it. it is secretary mayor pete does that work for you >> i'll take it. i'll answer to that gladly >> we know you as mayor pete watch everybody is going to be doing this yesterday, we sort of expected and it almost looked like senator schumer was expecting it it was almost a foregone conclusion that was not complete pushing it out to monday

>> you are right this was expected. what is not complicated was the need to get something big done and i saw it myself. you can see the need in several parts of the countries >> there in new york with the hudson river, you have people depepding on absolute state of the art technology from 1910 and in oregon, and tribal land every part of this country sees a need you have this incredible level of agreement the president and vice president will be sitting down there on

opposite sides we also had senator portman who was on yesterday some were not happy. he said it was the right thing to do in terms of the infrastructure they both don't want it linked with what you would call humanitarian

infrastructure is it still linked nobody has been able to explain in clear terms what that means this is more about the art and the science. we are hoping republicans will vote with us and they'll vote against us on the part that they can't. i refuse to give up on the idea that at least some republicans might come around and vote for americans to have paid family leave. might come around and vote to cut child poverty in half by extending child tax credit making sure three and four

yoyear olds can have education. we are on clear paths. >> if you get some of the tricks at 5 to $5.5 trillion. we are at $6 trillion plus the president was asked to address the worries about inflation. can you honestly tell me, mr. secretary, you wouldn't worry at all about layering in another $6

trillion about what it would do across the board to our financial situation in the united states? that's why the latest report out talks about this being overdone and the idea it is just too much. >> this is just what it takes to get to a level it should have been we are not trying to provide gold pipes we are just trying to get this right >> now you are back to the trillion there is the trillion where we are 13th and the $5 trillion of

the wish list. >> so let's look at the other stuff. the idea that wealthiest country in the world can't come up with a policy to do paid family leave with pretty much every other country in the world already has it the wealthiest country in the world can't maintain macro economic balance while three and four year olds go to school. gdp is a point or two below and everyone benefits there's a definite disagreement on how you get there. >> we are getting to that

balance making sure we collect the right amount of revenue. >> what is the rational for keeping people out >> it is not a dot decision. as these decisions are being made, we can't wait to have travel back to normal as much as possible but it has to be safe the idea of these descriptions are to make sure it is a manageable flow. we have a lot of counter measures now like masks

seeing a fall back it will not be a straight path nobody will be more delighted than me when we can safely restore international travel the other thing we can do is to make sure we have as many people in the u.s. and around the world vaccinated as quickly as possible >> asking you the same question. there are mechanisms of enforcing people to get vaccinated and one of them might be getting on airplanes. >> we don't believe in the government forcing people to do.

>> that you do see private businesses making decisions of how to protect their business and their workers. this is a big part of getting cruising back on track we have talked about gm recalling the volt what are they doing to make sure these cars are safe? >> our bottom line is safety there are new technologies the fundamental concept is not knew we want people to know with total certainty knowing from the

seat belt and on to be safe. expecting them to reach up with the standard. that's what we think about why not do it that way >> the president believes americans making less than $400,000 a year are already paying enough. the second, we don't have to we found a way to fully fund the vision that has the deficit

going doubt. that was part of the original proposal without having to turn to these user fees even if you have some large user fees, it wouldn't come in close. it wouldn't get us there it doesn't add up right now another thing. i know this is a sophisticated audience >> when you think about it, the user is not always the beneficiary. when an owner operator has value

train, you think about where most of that value has been captured more is paid for than buy the guy driving those goods down the road the bottom line, we don't have to go there. >> those fat cat tesla guys would be laughing at the gas tax. >> so while we are on taxes. >> you are going back? i hope you get audited i hope they go after you >> you believe in-law and order.

i had people tweeting me saying you believe in shop lifters? >> yes we should target them too. >> not that you just go after but when you pass them make sure you get the goods back before they go out the door of the store. this isn't just about how harsh you are being with people who cheat on their taxes there is a reason why they shook hands and it is a no brainer >> there's a consumption tax make sure you change the laws that allow all of this or just change it all so you don't have

to enforce it. >> it is out of the bill anyway. maybe it goes back in. thank you. you are on like a speaking tour. you have a front man they have a good guy go doing it you are smooth >> great to have you on. good to see you. when we come back, interview with the president of black stone. talking deals, markets and much more stay tune to "squawk box" on cnbc. mckayla maroney to get your frisbee off the roof? i'll get it. ♪ (upbeat music) ♪ ♪ ♪ whoa. here you go. (in unison) thank you mckayla! dude, get it. i'm not getting it, you get it. you threw it. it's your frisbee. geico. switch today and see all the ways you could save.

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>> we are awaiting brand new jobless claims next we are going live private equity giant black stone. we'll return after this. that needs to change. so, i did something. i created a black business accelerator at amazon. and now we have a program that's dedicated to making tomorrow a better day for black businesses. ♪ ♪

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welcome back back with results. the company beating estimates black stone stock has jumped more than 60%. here to talk about the second

quarter. jon gray chief operating officer. your stock has been on a terror. she had a very good run. i would say the second quarter for us was exceptional the highest fund appreciation si which they love. assets grew by 21% distributable earnings almost doubled the key thing is the expansion of who we are serving and where we are investing if you look back over the business, we were private equity firm and we had a relatively

small number of clients. a decade of very low interest rates and persistently strong performance has opened things up in infrastructure and private credit we think of ourself as a ship and moving into much more open waters and we think this is sustainable. >> something we are seeing now and you could say warren buffett was really the first to do it trying to get in the insurance space. what is driving this >> what is driving this is really back to the comments before very low rates.

if you think about the insurance company and life in retirement, you can think about policy holder promises. if you think fixed income, it is very challenging you can align with the asset manager. original gnat private credit make mortgage loans, you can generate higher returns. aig and its board made a very smart move here. they brought us in as 9.9% investor they are allocating $50 billion that will allocate $100 billion they also sold us more which we brought to the private retail

investing platform that really encap laces our business where do you think we are? we have the pulse around the world and what the world looks like on the other side >> here in the united states, i'd say the economic momentum continues to be quitestrong. we'll have to watch the delta variant. when we look in the second quarter 98% with the area where we had one default we are seeing leisure and hospitality recover quickly. really, things are very strong

housing, autos we are keeping our eyes on inflation commodity and labor markets. we are seeing it in hotels are you with jay powell or with stan >> i think near term, we'll see higher inflation than people expect if you think this post covid period, it is faster than expected markets have. in the near term, i think it exceeds inflation, over time,

demographics should come back down our gut is that it will be higher than where it started prepandemic given the status >> what is your take on the return to work labor z day was and now it is pushed back. >> yes i think most companies like us think about safety first here since the vaccines have been widely distributed. nearly 90% of employees have been brought back. we are better together

we are serving teachers, police and fire we like being together we think it is critical to be together key things is what happens in terms of hospitals and vaccinations obviously people unvaccinated are at great risk. if it doesn't lead to vaccinations, it will continue it is something we'll have to watch. >> what are you doing in your offices? are you requiring vaccination? >> we are not requiring but it is something we are looking at to ensure the safety of our employees. we are trying to say please do get vaccinated >> do you test or what is your

policy >> our policy is you wear a mask when you leave your desk or are around other people. particularly in light of the delta variant. >> good to see you again great to see you >> we are a few seconds away on a new read from initial jobless claims standing by in chicago with that breaking data. >> yes we are expecting some nice sized drops but not getting them. it was a bit of a different

picture by a whis ker. this month, 336,000. last week, this comes for continuing claims at least these are july 10. they are the lowest post covid i'm a bit surprised. i thought half the states, of course, pushing back on the benefits would kick in a little bit more in terms of job lesses in terms of jobless claims the revision, 368,000. last week moved up by 8,000. continuing claims moved from 3,241,000 to 3,245,000 continuing claims still holds that record. ecb continues to announce. considering everything going on in europe and looking at yields at the lowest level since the 18th of february on a closing

basis. italian yields at the low. i'm sure the only bird you'll be hearing with respect to the conference will be doves on tuesday, jgbs traded zero those bonds are everywhere they didn't trade one. the more the government has played the less liquidity that helps it explain the big moves which sends prices up and yields down usually not super on top of how

markets move and how they trade. they should pay very close attention it will make it more volatile. >> the big drop we've seen you think would be the upside? >> you've seen that level, until we start to close above there. i would be looking for yield resist tense to watch them drop back down again. >> we saw a guest who said they didn't think you'd get past that range until the fed starts

tapering >> i think when we get above that level, we'll be aiming for the 150s and 160s again, which i suspect is sort of the zip code that we'll close out the year. >> you heard it here first thank you. we'll see you soon coming up, more in the markets with major averages having turned higher for the week we head to break take a look at the russell 2000 small cap index on pace to break the losing streak. stay tune to "squawk box" on cnbc

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welcome back to "squawk box. christine lagarde is speaking live right now a short time ago looking to keep interest rates unchanged dom has the latest >> we are monitoring that press conference starting right at 8:30 a.m. eastern. the initial comments centered around the policy to keep that

unchanged. the ecb president specifically addressed this motion that the bank will look to keep the target around 2% and rate the policy until it can meet the target the other pieces here looking to continue the emergency purchasing program until at least march of 2022 the commitment is $8.5 trillion worth of purchases for that program. also looking at interest rates they are ticking to five-month lows also seeing some weakness

and of course all of the reaction here as well. >> thank you, dom. we appreciate it we'll talk to jim cramer when we return getting you caught up on a few things this morning. general motors temporarily halt full-size truck production in u.s. and mexico because of semiconductor shortages. >> and california to burry 10,000 miles of power lines. pg&e equipment has contributed to several wildfires more coming up stay tuned world-class interiors, and peerless design... their only competition is each other. the incomparable mercedes-benz suvs. extraordinary runs in the family.

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>> getting down to the new york stock exchange i think it is it made you feel like with that profit of five the markets are under pressure

we have to be careful. we know the yield is good. worry some for the clorox and the proctors it could be self-curing too i don't think people want to go back to work because of the delta variant. powell can get out of the woods because of the way the economy

slows down i'm not worried. it is going to happen. it will go back down and be demand destruction we'll come out fine, joe >> you mentioned the pep rally the crypto peprally. >> you are an etherium guy now too? >> i am. i'm with my friend don't buy bitcoin, buy etherium. >> you have at&t and you had

been outspoken in recent months. the numbers looked pretty good it is not media anymore. it is back to telecon. >> it was so good. why -- they still have a stake in hbo those numbers are fantastic. it should have kept it together. i still think they are a very confused company >> do you think there is potential in what they have now with the discovery play? >> i think discovery is very

good now you've got risk. by the way, after a long day i don't think postpaid being good is going to look so good versus t-mobile. look at verizon i think these just don't cut it. >> are you in the running for consultant to texas instruments on how to run their report >> that was one of the worst conference calls i ever heard. >> it was like a dead horse. texas instruments. i don't think you could be more down beat than they were every analyst saying something positive

i'm surprised they didn't say that we'll talk to you next quarter futures have turned negative rick was surprised that brings up delta again >> i'm worried about delta i think you get it or you get vex nated. do you agree with me >> i do. i was watching someone on the other network saying, looks, nobody understands dna -- some people do. this is really elegant so much better than a whole virus when you make a vaccine with just a little strip of a protein that can give you immunity i'm optimistic if it does become an endemiy dic disease like theu

i think we can handle it >> i agree with you. the uk is doing that they are saying go a about what you are doing. i listen to you, joe, i think you've been dead right about this >> i went way beyond intro introductory biology course. they don't know rna from -- we need to keep that in mind. that's where a lot of this comes from not any background whatsoever. >> there's a great ignorance about it it doesn't exist on your show because you have gottlieb and

you and becky. i felt, short term, got to be negative he pulled through. you heard gottlieb say, it will pull through it is a 1919 scenario. >> thank you we'll see you in a couple of minutes. for anybody who missed it, gottlieb thinks it could very well peak in august or september, this wave of it joining us now to talk about the markets this morning is dcla portfolio manager. great to see you let's talk the weird dynamic what are you watching right now? the earnings, the fed. the variant, what do you think >> i think it is a combination

of all three >> the majority has beat earnings look underneath the market when the 10-year goes to 1.2, you see the stay-at-home stoxxs do well. it goes higher and we get the value. stick with good companies that are going through with this that value approach up stanley that had doubled their dividends. their earnings are going to grow high single-digits if not double-digits. you look at blackstone, you had the ceo on, fantastic earnings these stocks are all growing even though we have this uncertainty out there, but the big headwind right now is, you know, when do we get through

kind of the next stage of this variant, and i think the market in the short-term can be quite volatile, and for us that's opportunities. it's opportunities on monday, and if the market pulls back 5, 10% to really get back in with new capital on the side. >> it's really strange to hear you say -- and you're right, it's just an observation, but at 1 1.2 on the ten-year, everybody wants the stay-at-home stocks. at 1.3, forget it, we want the cyclicals. that's bizarre to have so many sectors in the market kind of trapped by a tenth of a percent move in the ten-year >> it really is, and you know, when it was going down to sort of 1%, any stock that was interest rate sensitive was just getting killed and if you think rates to go up to 1.5 to maybe close to 2 over the next year, some of these stocks on the valley cyclical side are really cheap. if you do buy them now and you can bear with the volatility, i

think you'll do fine some of the companies that we're looking at in addition like a comcast, which is a parent of your company or even an uber which could do very well come the fall once we get through the variant. underneath the s&p, which is at a all time high, there are plenty of opportunities there. you just have to be patient. if you hold good companies with secular growth, investors will do well. >> tech stocks have a lot of overhang from washington the biden administration really looking to crack down when it comes to regulation, especially for those big tech companies and just oversight is that, in your view, a reason to stay away from those stocks >> i think if you look at kind of the big faangs, if you break them up, there's a lot of value there, and i think what investors need to make sure they understand is they're not going to grow by acquisition anymore, so you really have to look at some of the parts. i think a facebook and a google, even if they do get regulation, a lot of that is baked in

already. they're trading, you know, at 20 times cash flow growing double-digits. where i think the issue is going to be is, you know, for them to try and get into new areas and so i think that's going to be the hard part and also for consolidation, and it's just not in tech, becky it's going to be in media. it's in health care. so i think those acquisitions or hey, this one's going to be a takeout, and i think a lot of the spacs playing that game thinking they're going to be taken out. i think there's going to be some disappointment stay with fundamentals, and regulatory wise i think a lot of this is built into a lot of the big tech stocks. it's going to take a while for washington to get their arms around. >> hey, sarat, you sound pretty calm, cool, collected, not too worried about anything coming down the pike. is there anything that does worry you or do you think this is something if you can ride it out for the next several months, it will be all right >> you know, if i look kind of where i think there could be risk could be where the costs are not transitory

so input costs go up, wages go up, and we get a slowdown of fr growth you're looking more like a stagflation period that could be very bad for the markets because multiples compress all across the board. you really don't have much growth, and we've got prices going across the board whether it's in commodities, labor, et cetera. that's something to watch for and i think that's why the market kind of is looking to see -- you say you saw unilever today, other companies come out with wage costs. if they can't raise prices and costs are going up, that's a concern down the road. i don't see it yet, but in terms of watching the market or specific sectors that's where i would be careful to avoid. it would be investing in individual sectors where do you want to be but looking for that kind of secular growth story. >> it's good to see you. have a great weekend >> thank you. >> keep thinking it's friday it's not. >> better than friday.

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. welcome back we are a little more than a half an hour away from the opening bell on wall street. dom chu joins us with a look at some of this morning's top premarket movers. >> the european central bank press conference with christine lagarde, the president, still going on right now ten-year yields for government bonds in germany have declined to a negative 41 basis point mark euros continue to move lower as well just about flat, 11796 some of the earnings movers this morning, three interesting ones that are showing real signs of strength this the premarket trade so far domino's pizza, union pacific and crocs. domino's pizza, same store sales in the u.s. driven by new menu items. 2.5% to the upside union pacific 2.5% to the upside, showing more traffic on its platforms. its average train length that has grown by 9%, and then crocs

is a big one, up 10.5% to the upside there, the maker of those foam sandal type things is up after it posted better than expected profits the revenue guidance coming in much higher than analysts projected. we'll end on some of the most popular ticker searches on cnbc.com in yesterday's session, chipotle mexican grill about flat netflix down about one-third of 1% nvidia and apple posting fraction mall gains. the top four tickers, joe, andrew, becky, i've put the rest of them up on twi twitter @thedomino back over to you. >> domino's, i can't believe it. i remember when it was so much cheaper, dom i guess it's pizza. >> so have you tried their cheeseburger or the taco pizza because apparently that's what's helping driving their same store

sales. >> are you a foodie, dom i get accused of being a foodie. i don't know whether to deny it or admit it. >> he had corn dogs for national hot dog day. >> i can't believe you saw that. i should eat better. you don't get a body like mine by turning down food, joe. >> i love corn dogs. futures are down now make sure you join us tomorrow, join them tomorrow "squawk on the street" is next good morning, welcome to "squawk on the street. i'm scot walker with jim craiger at the new york stock exchange carl and david have the morning off. let's take a look at futures this morning how we're going to set up for the trading day on wall street mixed picture right now, s&p would open negative by a few points, dow down 52, nasdaq would be higher. our road map starts with corporate earnings and covid rec recovery at&t, dow,