all of the 2021 gains. u.s. equity futures here pointing to a lower opening. and big tech apple, microsoft, google, facebook and amazon all earnings and set to post quarterly results this week. bitcoin surging and climbing back to levels we haven't seen in nearly six weeks. it backed off a little bit, but long way from $29,000 now. it is monday, july 26th, 2021 summer is flying by. "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc i'm andrew ross sorkin along with joe kernen. becky is off this morning.

three and a half hours before the open nonetheless, we are looking down after a wild week last week. dow looks like we're going to be down 114 points. nasdaq is opening down 14 points s&p 500 off 10 points. we will talk about what may be driving that or not. a rough session in asia which is part of this a live report from beijing in a couple of minutes. look at u.s. treasury yields as of now the 10-year note for a second. we'll show you it stands at 1.246% we have two big market themes this week. we will hear a lot of earnings and the fed. on the corporate front, results from tesla after the bell tonight. other big names on the docket. apple, google, facebook, microsoft and amazon a number of other high profile companies reporting in the coming days. 3m, boeing, mcdonald's, ford,

pfizer, the maker of the vaccine and our parent company comcast and then the federal reserve the central bank set to kick off the policy meeting tomorrow. no action expected investors will pay a lot of attention to any mention or hint, a hint, a tiny hint, joe, of whether we will get a hike in all of this. >> amazing how much we do hear from the fed i have deja vu time passes quickly. just last week or the week before we had the two-day testimony? was that last week we just -- >> two weeks ago. >> we were agonizing over the possibility of a taper or anything happening here we are again. big judy shelton piece in the journal. >> i saw judy shelton's piece. a number of fascinating pieces of bitcoin which you will talk about in a moment. we have to talk olympics at some

point as well. big weekend. >> yes it was big baseball weekend i got to go to a game. it was awesome really good. a win. i don't know if i have ever seen the reds win check out the crypto bitcoin topping $39,000 yesterday. something it hasn't done since mid mid-july amazon posting a block chain expert traders say that suggests they are taking a close look at cryptocurrency for payments. it was as low as 33 and change $39,770. it moderated the gains to mid to low 38,000 you remember almost $29,000 we were talking about it last week.

there was some concern when it gets there, it is at a key level in terms of if it were to go below 20 that did not happen again. it almost looked like a short covering or something with the speed of the snapback. ethereum up 2,400. i bought one of those, andrew, just for the heck of it. ethereum at $1,850 i don't know what i'll do with it i'll watch it. all nft payments are that. >> the best part of ethereum is that you can actually use it as a currency and spend it on nfts and other things in a way that is not more difficult with bitcoin, but the use cases are lesser argument. if the purpose of owning any of the currencies is to hold them and try to use them as investments, if you will, there

is no reason to use it as currency >> yeah. i don't have any eye on any nfts yet. you have the actual baseball card you haven't turned that into an nft yet? >> i look at nfts. i'm totally into the nft world i go to open space and i'm always looking i haven't bought anything yet. our kids are looking and doing stuff. yeah >> i'm still trying to figure that out you have it, but you don't really have it you have it, but you don't really have it you don't have something you can hang up. can you? >> i can print it out and hang it up. if i were to buy the nft, i have the only one of that digital version. that's the way to think about it i know i debate this with my father all the time says it is fake. i don't know >> he's the greatest generation,

isn't he he's not a boomer, i don't think, right >> he is the greatest generation, yes, this is true. >> how can we ever feel good about ourselves when we already know who the greatest generation was? we wills alway always be less gt i don't know what to tell you about the millennials. they are not in the running for sup supplanting your father's generation. and the asian markets. hang seng drops 4% eunice yoon is here with details. good morning, good day >> reporter: good morning, joe good morning, andrew investors here were spooked by a series of regulatory clamp downs by the chinese government in tech and property as well as

education. today, the internet ministry announced it is launching a six-month drive or campaign to clean up what it describes as tough problems in the internet industry data security threats and unauthorized connections private education firms must register as not-for-profit companies. this was part of the guidelines announced on friday. also property companies got hit because local media are saying a drive, three-year drive, also announced by the housing ministry on friday to rein in the property speculation this limits land purchases to under 40% of annual sales and including acquisition costs. two companies saw a lot of action tens dls tencent quite a bit. regulators were slapping fines

on tencent after the past merger to create tencent music and the food tldelivery company was beig clamped down and they needed to make sure that they adhere to the rights of the delivery staff. so all of that, of course, affecting sentiment. separately, the u.s. and china talks appear to be off to a rocky start as you know. the u.s. deputy of state wendy sherman is in nearby beijing and it sounds like she got an earful from her chinese counterpart who essentially described the biden administration's focus on competition as a guise to suppress china guys. >> i wish we had a crystal ball,

eunice we talk to you a lot now it seems to be a different story every day we're following. also in crypto and tencent story that is coming out as well i wonder what's the end result will we go through a period where we aren't having a new piece every couple of days or every week we all have to watch this closely for our markets here >> reporter: yeah. definitely a ton of uncertainty right now when you mentioned the big push for control from the government for a variety of reasons, i would say a lot of people would say certain sectors did need cleaning up. there is at least in part a hope to try to clean up some companies that have engaged in some practices that people and

private companies were not very good at the same time, there is big concern there is a bit of political control that's also going on here. in terms of the conversations with the trade talks, some other reports that are emerging really show that china wants to present itself as an equal to the united states supposedly and this is really interesting after the talks, the chinese officials handed over a list of demands and suggested plan of action for the u.s., which includes dropping the extradition request for huawei cfo and lifting all of the sanctions on chinese officials you could see the dynamic where china is trying to present itself as tough against the united states. that is for domestic consumption

and inter nanational consumption because it wants to show itself as a major player on the global stage. >> big piece on the continuing wuhan lab story, too, and no cooperation. the chinese government wants to put it behind them right now it won't happen, eunice. thank you. good to see you. coming up, tesla reporting quarterly results after the clogsing bell. as we head to break, u.s. equity futures prepare for a loss in triple digits. down 96 now. let's look at the dow laggards p&g is not a laggard you are watching "squawk box" on cnbc

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tesla's ready to post quarterly results after the bell today. phil lebeau joins us with the pre preview. >> reporter: three things investors are focused on during the tesla financials tesla is expected to post a

profit today the first being the chip impact. we heard comments from elon musk that the chip shortage did have an impact on the company's production abilities at times in the first quarter. we will see what happened there with the report. what growth is the company seeing in china? the largest ev market. ramping up the market in sha shanghai one factory outside of berlin and one in austin as well. two areas where people would love an update is what is the annual delivery forecast will they give a forecast? the consensus is the company to deliver 181,000. that moves around a bit. will tesla give guidance they typical do not do that at the halfway point through the year that is a possibility. what is elon musk have to say

during the analyst call that comes up after they post the earnings after the bell? in the past, you can count on fireworks from time to time from elon musk. the last four financials have been boring on the analyst call. we will see which one comes to the table tonight. growth margins are in focus. they had nice growth in the first quarter. let's see what they show for the second quarter they come after the bell and the conference call starts at 5:30 tonight. we're on it. we'll let people know during "fast money" if elon musk has anything interesting to say. guys >> would this be a opportunity to talk about things other than tesla or not, phil is dogecoin going to go up tomorrow can he talk about -- is that possible you never know with him, do you?

>> reporter: sure. sure, it's possible. he can bring up cryptocurrency there is discussion about them saying okay, we will accept bitcoin as a source of payment for tesla. anytime elon musk says something about bitcoin or tweets about it, it will get a lot of atte attention. that may come up for the most part, the an invess are focused on the nuts and bolts. >> you know there is an opportunity for him to be an astronaut because now it looks like those two others may not be they may not qualify given they're changing the guidelines for actually being in space. if he goes to the space station on one of those deals, he would get the wings. astronaut wings. >> reporter: the all important wings. it's all about the wings >> yeah. that's right and the bell rings every time one of the billionaire gets

their wings, you know that angel gets their wings >> reporter: yes, clarence, i do know that. >> thanks, phil. see you later. joining us for more on all of this is mark fields former ford ceo and cnbc contributor. what are you expecting, mark >> as you heard from phil, i think one of the pbiggest things is the outlook for the second quarter. i don't think they will get a nu number, but the semiconductor shortage will have an impact on the industry everyone wants to know how it relates to tesla there is a lot of attention on the gross margins. the reason for this is the mix should be better in the quarter. what i mean is they are ramping up the model y production. they able to attain a higher revenue on the model y than the model 3. they have about essentially the same costs that comes off the

same platform. that is another focus, particularly because right now they make their money on selling co2 tax credits. improving the gross margin and improvement there is on tops of minds for a lot of investors >> we talked about the market share on a long-term basis, but where do you see tesla now relative to everybody else and how far ahead are they or are they not >> well, they continue to dominate the ev segment. their share is starting to erode. you mentioned it earlier from may of this year, ev sales are up double. the overall industry is up 30% to 40% the overall pie is bigger. that is good for tesla they have more competitors now they had the market to

themselves and now with ford and hyundai and selling electric vehicles the share is coming down, but volume is continuing to grow because the pie will get bigger and at the same time, they adding more capacity with the new plants every product they come out with is incremental to the product lineup that bodes well although the share comes down they had the market to themselves for a long time and now they have competition. the key is the overall pie growing. that is good for tesla >> that is the other question. we talk about the ev market. is that the market or is the tam cars >> the tam is the overall market right now, the evs represent 2.3% of the total industry it is still very, very small you have to look the products coming into the marketplace.

the reason that share has grown versus last year and continue to grow is you have 100 models of evs in the next two years and you have more body styles available for customers and at different price points you know, it is the entire market and that is what investors look at. they look at the tam and look at the growth of evs in general and look at tesla's dominant position today that's what's going to drive it. >> mark, i don't know if you you can see the screen right now we are listing a bunch of electric companies including lucid which closed the spac transaction i'm curious. this goes back to the tam issue. you have all of the start-ups in the space and the question is how many of them will fundamentally be able to disrupt the legacy players or whether you believe long-term so many of the legacy players will be in

the business >> i do think the legacy players are the established players. they are coming out with credible products now. ford with the mach-e and vow. you see the established oems bring their full game from a product execution standpoint on top of the ability to drive costs down and come out with quality products i think in the new start-ups, there will be more losers than winners. the reason for that is as you have the established automakers come out with credible products, consumers will say how much risk do i want to take in buying an electric vehicle buy from an established oem where i can get service and i have confidence the company will be around for years from now or go with a start-up? a lot of the cars they are

selling, the price point is something not many people can afford it is only such a big market the market is only so big for people willing to buy $75,000 cars and up. >> mark, we will leave it there. great to see you hope to see you again soon hopefully next time in person. we should mention as we noted before in the electric vehicle news, we will do an interview. a first on cnbc with lucid motors ceo peter rawlinson that is coming up in p twtwo ho as they complete their spac deal joe. >> we had a car there last week, sorkin now another one. like a parking space for new type vehicles. now a lucid one out there. we need 100 people guarding the thing. >> there it is.

>> i went on a test drive, skskjoe, last week. we should get video of that. >> which car >> the ludicris mode west side highway. i thought my face -- you feel the gs i felt like that i was feeling the gs >> was it a tesla? >> no, a lucid the new lucid. >> okay. they all go 0 to 60 in two seconds. i don't know how you do that you run into someone we can see the gs effect on your face today >> i don't know if we were able to capture that exactly. i don't think it looked anything like jeff bezos or richard branson's face going into space. i don't want to overstate the effect >> all right coming up, why some young

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get to know us at aflac.com. welcome back to "squawk box. young professionals are rethinking the traditional banking career path questioning the hours despite the high pay joining us is the reporter kate kelly covering wall street

kate, good morning. >> good morning, andrew. >> it is a bit of a surprise, i think. wall street has long been the sought after job, perhaps, after tech, recently what is happening? >> i think it is important to qualify, andrew, when ann and i found and interviewed a score of young professionals, they are not turning their back on wall street, but they want it do it in their own way and on their terms. some are concerned about work/life balance. we knew this with the 13 junior bankers at goldman sachs that put together the long hours and work flow has punishing on their health that seems to have been a leading indicator of a broader trend. i talked to students in college and interested in the world of money and managing it and advising on deals and so on. they said we want something more quantify able, unprsurprisingly

we can easily define our tasks and work hours i talked to someone who said the pandemic caused him to refocus on mental health he is working on the logistics division of bp and buying and selling barrels and financial hedging through futures and other contracts. there are different ways to do it andrew, it must be said there is a contingent of people who want the job and the training that wall street can provide. >> kate, maybe i'm retrograde here i don't know anybody on wall street who has not had an success who has not been a hustler. someone worked 12, 16, 18 hours a day early on in their career i haven't seen it. the question is, is this, dare i say, i'll get tweets

is this a generation that is just soft? softer situation >> i think there are a lot of factors here the short answer to that is no think about the fact we're in the post-crisis world. 2008 shook people's perception of wall street and the safety. you have the rise of silicon valley and the gig economy where you can perhaps follow your passion and still make a living or with silicon valley, make a ton of money and equity at the front and bring your pet to work do all of these things that's not a reality for everyone you and i know that. that is the promise of the field. wall street was having to compete more heavily if you look at mba graduates from the top five business schools, you see the investment banking per se, is slipping for consulting and other private equity i think there is an overdue focus on health and well being one interesting interview was

with jamie lee he said his own father, jimmy lee said this is a rigorous program that we, meaning wall street, put kids through you should try something different. he went into equity sales at goldman sachs, derivatives he built skills there. stayed or eight years and got an mba. he said it took me eight or ten years to build the skills i would have gotten in two years he is a venture capitalist with his own firm today which was part of his dream. he said i still have my 20s. >> so the final question do you think wall street cultur to change? >> it will revert. my strong guess is some of the

changes, allowances for the fact you are millennials and older gen zers are not going for the status quo you will see pay raises which are semi permanent you see retention bonuses. maybe you won't see a firm like jeffries give away a peloton bike and a watch that was a one-off for analysts who worked hard this quarter it is a bumper crop of deals we're facing the deal flow is ginormous the work from home and pandemic and other challenges you have means you have a ton of wood to chop i think the pay raises and attention to quality of life and hiring addition al people and being more compelling so your people don't get picked off. i'll leave you with a statistic. for the jpmorgan chase global program for investment banking

program, they get 90 applications for a spot in the last cycle at blackstone, the number was over 230 that is a small indication of where people are thinking. >> kate kelly. great story. great to see you hope to see you soon. >> thank you coming up, when we return, robinhood ceo kicking off the road show and making plans of how he plans to revolutionize the retirement business. stay tuned you are watching "squawk box." >> announcer: executive edge is sponsored by at&t business our people and network will help keep you connected let's take care of business. t a something different. oh, we can help with that. okay, imagine this... your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown, your sales rep lisa has to send some files, asap!

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welcome back to "squawk box. in corporate news, robinhood launches it's ipo road show this weekend. it was available for anyone to watch. set to price this week and trade on the nasdaq. the company considering launches retirement accounts in the united states. >> in short, yes we are interested in building

more account types like i.r.a.s and roth i.r.a.s we want long-time investors sin. we see a majority of our customers younger and half of them investing for the first time retirement is not necessarily something that a lot of them have been looking for out the gate we want to make long-term planning a habitual process to be in a better place when they are older than their parents >> robinhood's target valuation of $35 billion in the public offering it will allocate 25% to 35% of the shares offered to its own users, joe. the cfo from ryanair on the return of global air travel. all of the headwinds the industry is facing stay tuned you are watching "squawk box" on cnbc

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ryanair reporting quarterly numbers this morning the company posting a smaller than expected loss and upgrading the full-year forecast the company saying that fares remain below pre-pandemic levels joining us now is the ryanair cfo. good to see you, neal. it is still tough. i understand that looking at the

numbers. we see things which may have doubled from the previous quarter, but down a third from p pre-pandemic levels. it is still a tough operating environment. can you describe the progress you are trying to make here? >> good to see you as you said, first quarter numbers out this morning traffic rebounded this morning traffic increased from 500,000 from the first quarter when we were grounded to 1.8 million in the current quarter. we will anticipate 9 million customers in july. that is up from 5 million in june 10 million in august hopefully something similar into september. people are getting confidence and starting to come back. we are probably a couple of months behind our colleagues on your side of the atlantic where domestic operations seems to be back to pre-pandemic levels. europe is behind that.

we would be hopeful we would see a bounceback over the course of the year we already improved our traffic guidance for the full year we had been guiding somewhere in the range of the lower end of 80 million to 90 million. we tightened that up from 90 million to 100 million from march to 2022. >> what was your record? >> slightly above that we were 149 coming into covid. we hoped to get that back to 150 million next year and we started growing toward 200 million over the next four years. 150 million the next financial year and 175 and 195 or 200 million customers. that is driven along by the game changer. the boeing aircraft we are taking into the fleet. 210 of those on order. 10 have been delivered at this point in time and proven to be a

phenomenal aircraft. >> there are other orders in the works with boeing, too is that correct? >> oh, no secret we would like to do something on a max 10. it all boils down to price if the price is right, we're interested in buying the aircraft we have room to grow with the current order to get us to 600 in the fleet by financial year march 2026 and 200 million customers. a max 10 is between 2026 and 2030 no rush to do anything boeing is focused on getting the game changer aircraft to us. that delivery process is working w well we hope to take another 50 plus of them over the winter which would take us to 60 plus max in the fleet for next summer. maybe toward the back end of year, we will get together to

have a conversation about the follow-up order. >> your fares are so cheap when i talk to maichael about i, it is interesting. the fares are affected by the pandemic you are a low-cost carrier and fares have gone down you cut capacity will you increase capacity when do you expect prices to firm >> absolutely we will increase capacity we had a 73% low factor in the quarter up over 60% in the prior year our objective is to get the low back to where it should be we will let the price effectively drive the filling of the aircraft we are low actictive yield. we have the lowest cost base of any airline in europe. we come into this 30% lower than the next nearest competitor. 70% lower on costs than the

second year evinearest competitr the change of aircraft is key for that it is a great value for customers over the course of summer and potentially autumn. our objective is grab market share and restore traffic to airport partners and get back to the 90% low factor as we move into the summer. next year, you will see a big bounce in growth opportunities for ryanair. >> good to see you do you ever see michael working for him? does he ever tell you what he really thinks? have you gotten an actual answer out of that or does he sugarcoat it >> michael is what you see is what you get. >> we love having him on he will say anything and anytime. i wonder what it is like working for him. awesome. >> 18 years in i'm loving it. >> thank you, neil good luck.

>> thank you bye-bye. >> see ya' coming up, summer olympics are in full swing. we will bring you highlights next. as we head to break, check out bitcoin this morning back up above 38 now in the mid $38,000 range up 12% af avere y. u e watching "squawk box" on cnbc r i feel like they might have a better finance system than we do. workday. how do they make better decisions faster? workday. it's got to be something workday. i think i got something. work... hey, rob, you're on mute. hello! hey, rob, there he is. workday. the finance, hr and planning system for a changing world.

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welcome back to "squawk box" this morning the olympic games officially kicking off on friday amid concerns about covid and other challenges the latest headlines coming out of tokyo i want to welcome sarah fischer

and forseth jabar young. i want to start with you, sarah. want to talk about sort of what you think we're seeing from the ratings, what we're seeing from the downloads of peacock and what it all means. >> yeah, i think you're seeing a continuation of what we've seen throughout the pandemic which is that huge events, sports events, awards, et cetera are down across the board as people have transitioned to streaming throughout the pandemic, they're not watching live linear tv shows as much as they used to. that's number one. number two, downloads for peacock or streams on peacock are up that's great news for nbc. tows does that mean overall this will be a success we don't know how many people will hold on this is nbc's most important bet

yet on streaming so they have to get this right >> jabar, what do you think it says about either this moment or sports sports has always been this product, if you will, a show that brings people together, my son who lochs the olympics, watching it 10 years old on an ipad, not live on peacock. he's scrolling through the sports like it's a video game. he'll pick the sport, watch the clip, go to the next clip, go to the next clip. it's a completely different experience of how i grew up watching it which is the whole family around the tv screen. >> good morning. thanks for having me i was beginning to think you don't love me no more. it sounds like maybe you and your son need to watch the olympics together. i watched the u.s.a. basketball game on peacock and afterwards i got interested in the story telling edition when they had

explaining all of the story lines behind basketball. kevin durant put in the spotlight. what i think it says is this is a new generation coming up, awareness of prowess where streaming is important the first metrics on olympics in saturday and they were impressed with their streaming numbers on peacock. they had a total audience of 15.3 million for saturday's primetime coverage i don't know if that's a bad number or a good number. what i do know is from the olympics standpoint, it's good to get out of the negative covid headlines and start to celebrate and know some of these athletes. i watched the rolling. australia and u.s.a. men's volleyball i was tuned in i like michael christenson and i thought the passion was great. if you keep this up, it will be a successful olympics for nbc.

whether that shows in the ratings department, who knows. if you can get people tuned in when you have so much negativity during the olympics, i think it's a success. >> what do you think of that idea about a shared experience people were talking about this as an issue in the atlanta olympics this is now in the '90s when nbc was going to run it on three different channels now it's fractured in far other ways. >> big problem here, andrew, we just don't know how to measure it obviously these eye balls are watching it. now that matter because advertisers who spent over $1 billion with nbc on this olympics need something to justify that spend traditionally it's been nielsen ratings for television we don't have that streaming equivalent what does it mean for the future

of hosts like nbc getting broadcast rights in the future you'll see rights being divided even more. certain rights will go to social media to air clips, certain rights for streaming and certain rights for broadcasts. that's how it's going to look in the future want to go back to jabari's point. the fact that we get any eye balls here is important. it's covid olympics. this opening ceremony, if this is a forecast of what the rest of the oliympics looks like, it' pretty bad last olympics we had 27 million. london 2012, 40 million. it's way, way down and it's a cause for concern. >> jabari, one of the things that's fascinating is there's the free part and then there's the paid part. u.s.a. basketball is part of the paid part and the question is whether you think that is going to draw in users not just to

watch basketball but then to stay with the app going forward with all of the other programming on it? >> well, i think that's all about the story telling ability of it. i think sometimes we over analyze things when you get people tuned in, you get people tuned in because they're gravitating towards a story. u.s.a. basketball lost against france their story is worth it. i get it for free. you probably do, andrew. you can tell the story, nbc is very good at story telling. >> guys, i appreciate it we've got to leave the conversation there joe, i'm curious, are you betting on the olympics? >> someone asked me that i have not yet i was in a state where it's so backwards that you can't use draftkings i drove 20 hours in three days,

andrew, 10 on monday, 10 on sunday but i had an adaptive cruise control where it keeps you three lanes from the car in front of you it was almost autonomous you don't need to do anything. i almost started falling asleep. i didn't get to watch much i'm going to if it's betable, i will do it. anyway, coming up this morning top stories including china stocks plunging overnight. stay tuned, you're watching "squawk box" on cnbc tailor made or one size fits all?

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a big week for earnings on tap with big tech results in focus. tesla kicks things into overdrive tonight. we'll get you caught up with the markets. new covid concerns sweeping across the u.s. as the white house warns of a possible return of a mask mandate. dr. scott gottleib with more developing story out of china as the latest high level talks between that country and the u.s. get off to a rocky start. we're live in beijing with the very latest as "squawk box" returns right now.

good morning and welcome back to "squawk box" here on cnbc i'm joe kernen along with andrew ross sorkin. becky is off today i think, maybe this week, andrew. i don't know her schedule but i think it's almost august we all need -- we need a week once in a while, don't you think? >> yeah, we do we do. >> u.s. equity futures at this hour are down but not out. down 130 points. we've pared that loss to less than 100 we are in the red across the board with the s&p down 12 1/4 and the nasdaq down 3. cryptocurrencies are rallying sharply to near the top of their recent ranges.

market watchers see the increase being driven by short sellers bailing out and reports that amazon may start accepting bitcoin for payment. bitcoin hit its highest level since mid june in overnight trading up above 39,000 briefly. robinhood may begin offering retirement accounts as it seeks to expand its customer base. the trading platform set to go public this week held a virtual road show event over the weekend and ceo vlad tenev said companies interested in offering different accounts seeking to offer long-term investing. the price of gasoline is nearly $1 higher than it was a year ago. the average price is at $3.22 a gallon, up 2 cents over the past week however, analysts say that supplies are plentiful which could keep prices from rising any further. back to this china story turning to a developing story

now again out of china high profile talks between leaders there in the u.s. getting off to a rocky start chinese officials blaming the u.s. for what it calls a stalemate. eunice yoon from beijing hello again, eunice. >> reporter: hey, joe. it was a really rare move that we saw today when the chinese foreign ministry issued six statements about the talks between u.s. deputy secretary of state wendy sherman and her chinese counterpart which were taking place today in a city nearby beijing so in those statements the chinese foreign ministry said that the chinese side believed that the fundamental problem between the u.s. and china is that the u.s. is demonizing china as what it perceives to be an imagined enemy. that's what they said. in the past hour a senior administration official had described the chinese

description as theatrical. the u.s. came to china talks with realistic expectations. they said this was a healthy exchange, that they were brutally honest from the u.s. side with some of the topics that the chinese don't like to discuss and that they were not expecting any major breakthroughs. the chinese state news agency shinja had issued what they think would be a good plan of action to repair ties that would include lifting visa restrictions on communist party members, lifting sanctions as well as dropping the extradition request for huawei's cfo i think this really shows the conversation and the relationship, as you had said, joe, was off to a rocky start and, andrew, another big highlight i think from the u.s. officials briefing was that they said there was no meeting

discussed at all about -- between president xi and president biden and earlier a lot of people had been talking about how this discussion in shenzhen was supposed to be one of the steps that would lead to perhaps a meeting with the secretary of state and the foreign minister and then eventually lead to a summit between president xi and biden later in the year. >> that looks like it's off the table, at least off the table for now. eunice yoon, we'll be speaking to you a lot more over the next couple of hours. latest business condition survey shows respondents showing the highest level of profitability on record. steve liesman joins us with the latest on that steve, good morning. >> good morning, andrew. this is an interesting survey. businesses experiencing sharp increase in costs from wages to

materials but they're able to overcome them and hitting their highest profitability in the survey's history take a look at profit margins. the net percentage of businesses with profit margins, hitting 35%, the most on record. that beat the april record and far surpassed business profitability before the pandemic profits surged despite rising costs. businesses seek to raise prices by more. the service shows in that 28% hiking the prices they charge just off april's record of 42% prices charged goes up in the next three months. cnbc has been looking at company comments and earnings reports telling us how they're dealing with the surge in inflation. some back up the findings in the survey we're passing through the wage inflation that we're having and we've actually expanded our margins.

whirlpool, they're having a great time over there significantly raising guidance to affect the strength of our business from sustained consumer demand and wait for it, adding the successful implementation of our previously announced cost-based pricing our pricing actions continue to yield dollars in excess of inflation. these comments by businesses suggest they expect inflation to ease somewhat in the coming months and a cost decline. the higher places remain in place, that would be good news for cost variability andrew, you can see how we have the makings of an inflationary spiral here. businesses raise costs, wages go up keep probability in place. the question is whether or not it breaks somewhere along the chain. >> but, steve, the question is markets may not love that. maybe markets will love that, i don't know the administration will love that i would think who doesn't love it?

>> which part? >> until it breaks that's the problem >> well, i mean, i don't think the administration's going to love it. what this shows, i don't know. you know, this is maybe an accident, maybe not. you think about you start with this back and forth. my costs went up and i raised prices companies are trying to keep a lid on costs you hear the companies create committees and units in order to manage their costs and increase their productivity they raise prices more than they have to. there's a sign, andrew, in this of a certain pricing power in these reports and in this survey that they have the ability to raise prices i don't think the administration is going to love this. what they would like to see is wages go up. >> steve liesman keeping his eyes on all of it. >> covid cases on the rise

top golfers like john rahm again with john rahm bryson dechambeau. some of the names knocked out of events we'll speak to scott gottleib about the spread of the delta variant. a lot of other issues after the break. before we go to break, let's get a check on the markets "squawk box" coming right back what a ride! 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 ♪ ♪ i had the nightmare again maxine. the world was out of wonka bars... relax. you just need digital workflows. they help keep everyone supplied and happy, proactively. let's workflow it. then you can stop having those nightmares. no, i would miss them too much. whatever you business is facing...

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the delta variant is continuing to spread dr. scott gottleib says we may be further into the epidemic joining us is dr. scott gottleib, former fda commissioner, serves on the boards of pfizer and illumina. scott, there were better numbers i think over the weekend that cases weren't at the levels we saw last week. are these signs of progress? are we going to be disappointed this week? >> well, there might still be a week where we see cases continue to go up as some underreporting on the weekend in certain states some states don't report at all. i think more observable trend is what's going on in the united kingdom where causes are clearly going down there's a very clear trend down. it seems like they've peaked whether or not they're going to get a second bump because they lifted on the mitigation in the

last five days, it's unclear they didn't have a lot of mitigation in place. they did have some measures for venues light nightclubs. so it's possible that they're going to see a second bump as a result of that i think it's probably unlikely they'll probably just be seeing a slowing, deceleration. the u.k. is turning the corner, pretty good indication that we're further into this than we think. maybe we're two weeks from signing a tro. >> so a false hope who doesn't report which states don't report and how does that skew the numbers that make them look better than they thought >> i think typically florida doesn't report on the weekend and a number of other states don't report over the weekend. you usually get a catchup on monday probably a little early to see the u.s. turning the corner now in terms of the number of cases.

i do think we're much further into this than we are detecting. i think we're going to see a delta peak we're already seeing health systems get saturated in certain states like florida. yes, the backdrop is being vaccinated so you're seeing less older americans turning up in hospitals, pretty good indication there's a lot of infection underneath the hospitalizations we're not detecting that's taking place in the younger population i think there are a lot of indications. a lot of testing, buy now act now, not getting reported. people who are symptomatic are mildly symptomatic or people being vaccinated those are presenting for testing. so our ascertainment, the number of people who are testing and getting reported is quite low.

this infectious wave is far more pervasive. we're further into it than what we believe, i think. the only challenge that i perceive is that we probably will turn a corner sooner rather than later if you think over the next two weeks through the most we'll start to see it turn the corner. could happen a little sooner than that. schools are going to be reopening so we'll be turning a corner right at the point schools start to reopen. my concern is the schools reopening could cause sort of a second bump in cases or could look like a pattern where we start to see a decline and it levels out and a reopening of the schools and coastal transmission we don't quite get out of it as quickly as we would. the kids will be sources of transmission this may be a little more persistent otherwise, we're probably

further through the wave and affecting a good number of people who so far escape the section and escape vaccination >> it seems like every day we're hearing more about breakthrough cases anecdotally. i know people who have experienced breakthrough cases asymptomatically and symptomatically. in the two cases they had a much tougher time than i was imagining. somebody that had taken the pfizer and moderna, both, you know, the two steps. the question is how should the public be thinking about that and you're talking about school reopening. that could be an issue but there's a lot of businesses that are planning to actually have close to 100% of their people back post labor day. >> yeah, we're doing a good job tracking cdc is doing a good job tracking

breakthrough infections. the vaccine protects against disease that would cause someone to be hospitalized the cdc is not great at tracking sections in the out-patient setting. some cases are getting a little more symptomatic despite the case they were vaccinated. you do see in israel a growing number of breakthrough infections in their early datasets that's why we started this when you look at the cohort from january and february what you see is declining vaccine effectiveness where people are getting very sick they're not becoming hospitalized vaccines are very protective against severe disease this is the population you of course expect to see declining immunity two things going on. not just the one thing

older vaccine, vaccinated in december, january, february. may be an older individual whose immune system isn't going to develop as robust and sustained an immune response on the other hand, you have a far more contagious variant. two things moving at the same time you have a variant and both of these phenomenon happen simultaneously together it wouldn't surprise me if on a systematic basis we do have more breakthrough infections we're not tracking it and we should be. it's really discouraging that the cdc isn't tracking this. the other critical question that needs to be answered if we were systematically tracking this data and the nation, if you develop a breakthrough infection, you're vaccinated how likely are you to transmit that infection we know from the old data that people who are vaccinated are

far less likely to transfer that infection. that may not be the case of the delta variant where you shed a lot more virus if, in fact, you're more likely than you were previously to transmit the infections despite being vaccinated, we don't know the answer to that question. that would inform issues of could you take care of a newborn if you're vaccinated or an elderly patient. if you're vaccinated and not feeling well, should you get tested for covid typically someone who's vaccinated might not get covid you have symptoms that could be consistent with mild infection the prudent thing to do is to get yourself tested despite your vaccination in the absent of information. >> wouldn't matter nearly as much if the people you're around

had also been vaccinated that's why we're stuck at this number. >> that's right. >> how are we going to get above that it's slow going now. are we close to saturation for how many people are going to get vaccinated, scott? what is you're eventual target for where we max out will it be 60? will it be that low? do you ever get above that >> it's actually picking up in the last couple of days. up 24% week over week. as people see more infection they're going to get vaccination. right now we're at 188 billion americans with one dose. little over 57%. 167 million americans fully vaccinated that's 49% i think we get to 60%, close to 60% by fall which is a pretty good number. at least 1/3 of americans had infection. if you assume the infected population -- the unvaccinated

population is over represented, then a lot of people choose to go unvaccinated because they know they've been infected people who choose to go unvaccinated aren't worried about covid. if you assume 40% of the unvaccinated were previously infected, that gets you about 84 million americans that are unvaccinated or haven't been previously infected who are vulnerable to infection. 50 million americans are under the age of 12. some of them have been infected, a lot haven't. when you will it all down, you talk to someone between 30 and 40 million americans who are unvaccinated that's being targeted by this wave might be a little bit larger than that. we might be pretty far into the infection spreading with actual immunity much further than we tracked. this is starting to turn a corner in two or three weeks >> all right. >> the other point, data did

come out this past week showing pretty good durability for people who had been previously infected natural infection proves to be pretty good durability. >> thank you for the update. dr. scott gottleib. when we return, earnings expected from lockheed martin. we'll get that shortly and bring it to you. check out futures on this monday morning. tell you where things stand. we're down dow looks like it would open off 120 points s&p 500 off about 13 points. then a big week of earnings. we're going to be kicking things off with tesla later in the day. we'll get results from apple, google, microsoft, facebook, amazon we'll talk big tech and where you should be putting your money to work when squawk returns after this

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still to come on "squawk box" this morning. social media companies seeing big moves higher can the momentum continue? we'll discuss all of it. lucid motors going public on the

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welcome back to "squawk box. want to talk fed this morning. central bank set to kick off the latest policy meeting. no action expected investors paying close attention to any mention of a rate hike. take a look at the 10-year note. looking at it at 1.240 defense contractor lockheed martin morgan has it. >> lockheed martin numbers are out, revenue of 17.03 billion versus an estimate of 16.9 billion. earnings roughly in line the gaap eps, of.52. there's a performance issue on a

classified program we're going through some of those numbers and what compares to what. the world's largest weapons maker raising the eps forecast for the second quarter sales grew at all four divisions accelerated share repurchase program. costs were some things that helped buoy the bottom line. on the f35 joint strength fighter program, which is 1/4 of overall revenue. possenreid telling me production is starting to plateau but sustainment and modernization are increasingly in focus. as part of the 21st war fighter technology which includes 5g and hyper sonics, possenreed said strong investments will allow them to invest organically it will give back a, quote, healthy amount to shareholders

a big topic given the biden administration focus on deal making and competition plus recent scrutiny from senator elizabeth warren, lockheed's scrutiny of buying aero jet rocketdyne the shares of lockheed martin don't seem to be moving too much the numbers are just hitting the tape that's not true. they're down about 2.5% right now. andrew >> thanks, morgan. great to see you. meantime, we're getting earnings this week from many of the big tech companies including amazon, microsoft and alphabet three of the social media companies have seen huge gains in the last week twitter and facebook up around 8% snap up 30% after reporting a blockbuster number last week joining us is sylvia jablonsky

dan ives equity research investor sylvia, one of the big questions is have the stocks already moved from some of the stocks we've heard from some of the competitors last week? >> good morning, andrew. i think we got a move off of some of the social media stocks. twitter, facebook and snap really set us up for positive momentum it feels like the market might be rewarding earnings. i have two theories. one is the variant hit the market monday. s&p was down 2.2%. retail traders are anxious to get in and participate that could be partially that and i think partially it's the

second quarter of really good earnings the way it's setting up now looks like the best earnings quarter since 2009 over 100 names, 88% beat i expect to see the same this week i think these names are proving they have the liquidity, future growth and the returns let's see how it shakes out. i expect a good week in these fangs. >> dan, overshot already are they going to meet or exceed expectations how much of that trade, if you will, was the variant? >> look, i think right now it's going to be a goldilocks week for tech earnings. i think if i look at the fund amount amitripls, i think we lot tech stocks 10 to 12% up this is going to put more fuel in that tank in terms of theselloff that we saw, some of the pull forward, that's discrepancy we're seeing some of the

strongest tech fundamentals that we've seen it's across cloud, cybersecurity, big cap tech. you look at apple as a good example. seeing investors in the rear-view mirror we're on our way toa $3 trillion mark cap. >> sylvia, which stocks do you like are there any in this sector you wouldn't touch >> i like all of them and i think dan makes a good point the fundamentals are there the story for why they're doing well has to do with the fourth industrial revolution. it's 5g. machine learning google, amazon, microsoft, they have cloud they're going to participate in big data, 5g apple, they've jumped on that 5g rollout with their phones. i think the improving innovation technology and focus on the future with all of these things from artificial intelligence, machine learning big data is

going to serve these going forward. days like monday are great opportunities to get in. i agree. i think with dan we see 10 to 15% for the year i still think that's a good point to get in. >> you would buy ahead of the earnings it sounds like? >> yeah. three months ago i'd tell you it's one where these numbers are not going to move on earnings. going into this earnings season it's a green light i think ultimately the street is underestimating not just the growth but i think what's happening in 2022, you see a rereading here it's a risk on when it comes to tech, clouds, big tech, fang, this is in the middle earnings. we look good as a bull cycle going well into 2022 it's a green light in tech here. >> dan, let me ask you one question we keep talking about tech which is the classic consumer tech companies.

we're going to be hearing about it as well >> it's a proven situation i think they're starting to get massive momentum update on china, battery technology lifting the delivery numbers i view this as a fork in the road that moves the stock higher as well as electric vehicles going into the next 6 to 12 months a green tidal wave. i expect positive tonight. >> sylvia and dan, do either of you want to weigh in on bitcoin? the reason i mention it is because one of these tech companies, which is amazon, there are reports they're looking to hire people in the blockchain world, if you will. i don't know how much we're supposed to take away from that, or not, sylvia. >> yeah, look, i think crypto is definitely here to stay as an asset class for the future it goes back to some of the things we've been talking about all year i think it's going to become a

digital currency that people actually use we saw a lot of institutions begin to invest in crypto. a lot of retail investors, large banks that have shamed crypto have come on board using it and allowing it to be an investment class with all sorts of trading platforms. retirement accounts are going to allow it i think in terms of the growth of digital currency we're just at the beginning stages. i very much think we're going to get into the $100,000 mark that people talk about if not higher. i think once it's applicable as a payment and we sort of see some of the volatility subside, the you be side potential is huge i don't think it's going away any time soon. >> dan, you think amazon's going to pour some fuel on the fire? >> yeah. i think this is ultimately another sort of credibility issue. i think it's about blockchain. blockchain i look at as one of the core fundamental use cases when we look to crypto that's going to have an

evolution across cloud and the overall stock or ecosystem this is just the start obviously amazon is a feather in the cap for the bulls especially on the blockchain piece. >> dan, sylvia, thanks for joining us this morning. great to see you. >> same to you. >> thank you, joe. andrew, thanks a check of what's coming up in the free market and then the co-chair of the problem solvers caucus congressman josh gottheimer joins us with the latest out of coiltigton on infrastructure, renciaon and all of the things coming up "squawk box" will be right back. ♪♪ ♪♪

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we've been watching the cryptos this morning after bitcoin moved back above 39,000 yesterday, its best level since mid june 38,555 if you're in this, you can see 2400 just under, 2350 check out some related names like micro strategy, riot blockchain marathon digital coinbase getting a big boost silvergate capital trading

higher as is gasoline prices filled up so many times, andrew. i'm really good at -- i'm really good at it now. >> you are really good 2 cents. it's up 2 cents over the past two weeks. >> that's like the wealth tax. 2 cents, right 3 cents? >> it all counts it all counts. that according to the latest lundberg survey. the average price is $3.22 sales of electric vehicles more than doubling during the first half of 2021 ward intelligence said the increase was driven by tesla ev sales jumped by 78%. we have a lot more coming up this morning the latest out of washington on infrastructure and taxes josh gottheimer. later, lucid hits time square electric vehicle maker begins trading today. we want to speak to the company's ceo in the next hour

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the speaker put the vote on hold unless the senate passes they're hoping to reach a bipartisan deal later today. >> we're getting a deal agreed upon there's a couple of issues still out there on mass transit and

broadband and a couple of other things we're basically there and i met with the senators last week, a bipartisan roup. the problem solvers caucus we're working closely with our senate colleagues. if we get that dorn, which i think we will, i'm confident we will, we will get a stand alone vote in the house. there's no reason to hold that up if you have a good bipartisan infrastructure package which the country needs. many of us are going to be pushing for that as you know well, there's a lot of back and forth here and a lot of politics that go on if we get this done in the senate, there's no reason we shouldn't get a vote in the house on this. >> how would that happen what would speaker pelosi say at that point do you think? how would she -- that would not be losing face if she were to just totally flip-flop on something that she's insisted on up to this point >> you know, i'll leave it to the speaker to comment on that

i think the first question will be will the senate send over a bill to the house, right that's the first issue that has to happen. i think you're going to look at the largest infrastructure investment since eisenhower in the highways this is a very big deal. it covers everything from broadband, resiliency, the gateway tunnel from new york to new jersey this is critical if that gets done, we'll pick it up in the house. it doesn't mean you can't vote on something else, as you know it doesn't mean you can't have another piece of legislation after. there's no reason, many of us feel this way and have made our opinions heard on this, that we should get a vote on this. and the problem solve verse caucus including 29 democrats, we came out a week ago and said that as this gets done, working on this for months, let's vote on it for the house that would be a good bipartisan win. >> i'm going to shift to you

that's what makes it so hard for the average american to really understand what goes on. so you're talking about repealing the s.a.l.t. cap and you want to do it in reconciliation without doing that, you won't vote on reconciliation that sounds like are you saying raise the cap? or i want this, this, and this to give you my vote. if this doesn't happen what are you really saying there? go ahead >> no, it's a very good question at first just so everyone understands, we look at this bipartisan packet on infrastructure then there will likely be a second package on reckonciliatio which required a 50 vote plus the vice president on that package which we have not seen any specifics on, there's talk of a number of around $3.5 trillion that would propose the senate, the budget committee with no details of

revenue raising or frankly how the dollars would be spent it's hard to comment fully on these things until you actually see the specifics, although i'll tell you that $3.5 trillion number seems aggressive to me. what i had said there is when we look at the revenue raisers, if there are changes to the tax code proposed, if there are any changes, there has to be a full reinstatement of the state and local tax deduction for me to consider the package again, there's lots of other questions i'm going to have about overall impact i want to look at the totality of impact on families, on small businesses and then make a decision but for me to even consider it, if there's changes to the tax code that affect families, you've got to reinstate sustainable tax rate where taxes are, the 2017 tax bill, what it did to my district, that's table steaks

for me. >> that's sort of where one of the most important things for you, there are probably some other moderates in the house, democrats, that might have other problems, not s.a.l.t. related. >> definitely. >> do they -- i'm not sure they'd need you, josh, to get it done, but if you had enough moderates up, there might be a problem on the democratic side if it's 3.5 trillion. >> that's certainly the crowd. we have a four seat majority given the special elections for a period of time we'll have the three seat majority. they lose three of us. it can't pass the house and, yes, several of my colleagues who i work with including many in the problem solvers caucus have other issues as well. have people in the s.a.l.t. caucus, others who are focused on other issues that matter to them you're right right now there are i know several who have issues, right so the question will be can we work through those

and -- to get a vote that's why this is not so easy it's certainly a challenge we're going to talk, we'll work through it first and foremost we have to get this bipartisan infrastructure package done and then we can deal with those issues. >> you think in terms of what you're hearing, you talk to people in the other chamber, you think it's going to be today you're close enough? rob portman last weekend dated he thought it could be this week. >> rob -- yesterday i saw he publicly said he was 90% of the way there. others have said we're going to get a vote i spoke to several who think we're going to get a vote very early -- sorry, get a legislative text done early this week people are very optimistic so that's -- in my conversations, that's what i'm hearing as well. and we obviously all work for months on this it's critically important and i think everyone recognizes why

not just for the substance of it but for the showing that the country that we can actually come together and govern, which i think is also very important >> in the reconciliation bill, you don't know what's going to be in it nobody knows what's going to be in it. in the revenue raising you said your constituents in northern new jersey taxes are high. you're going to want to repeal the s.a.l.t. cap there will be other tax increases there that you might not like and that are certainly going to raise taxes on your constituents in northern new jersey what is off the table for you? and what's on the table? where would you like to -- what would be okay with youin terms of raising taxes >> well, i'm sure you'll appreciate that i'm not going to negotiate publicly right here, but i'll tell you this, i'm going to look -- there are certain things when you have to look at the totality of the impact if we fully get s.a.l.t. back

and there are other levers that change, for me it's going to be what's the overall impact. you know, on the spending side, making sure given where the economy is, making sure that -- and where inflation looks like it is going, being very cautious overall. i think on the revenue side you've got to look at what's being moved, what levels talking to my constituents and talking to small businesses here and getting the read on it after we see those numbers you know, i'll tell you this though, the first numbers that were put out were certainly too high so we've got to really focus on this and make sure it's fordable and helps my district. >> affordable and 3.5 trillion don't really go together in any set setting. >> i'll tell you this, what i think -- what i think matters is are we going to get s.a.l.t. back are we going to get the

bipartisan deal done overall will this help the people in my district? that's how you've got to measure all of these things and do what's good for the country. there's a lot to happen between now and the next couple of weeks as you know. we should look at it one step at a time. >> just so you know, this was all on tv and we keep these tapes, right andrew, right? these last forever all of the stuff you said, we can go and dredge this up. i don't know if we told you that at the beginning of the interview. >> i think this is completely -- i have been completely consistent on what i have always said i will continue to be consistent. >> i'm counting on you >> you should. >> i'm not in northern new jersey but we're counting on you. >> by the way, becky is -- a shout out to becky. >> exactly exactly. thank you. >> congressman, good to see you. >> andrew. coming up on the other side of this, lucid motors ceo peter

r rawlinson will be here and mohamed el erian will be here to tell you what you need to know for the trading week ead. ay tuned, you're watching "squawk box" on cnbc ee 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. they do. they really do. mmhmm. workday. finance, hr, planning and spend management for a changing world. all the things, all around you... where you learn, work, and fly... we help make them healthier. we are the people of abm. for more than 100 years, we've been a leader in making spaces cleaner, from the things you touch to the air you breathe. today, more than 100,000 of us are innovating

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1/3 of the dow and s&p will report we have china's crackdown on home grown big businesses intensifying the education and property sectors now ensnared by regulators we have a lot to report coming from beijing tesla reports earnings tonight but first we're going to get details about another up and coming ev company, lucid, which is about to start trading publicly after a high profile spac deal. i wouldn't want to spit on it but i could from where i'm sitting here we'll speak with lucid ceo live

as the final hour of "squawk box" begins right now. good morning and welcome back to "squawk box. i'm andrew ross sorkin along with joe kernen. becky is off today we'd open down dow jones off 81, 82 points. nasdaq looking to open down 20 points s&p 500 off 8 points treasury yields as well as we put the board around here, look at the 10-year note. you'll see that at 1.14. here's some of the stories if you weren't watching, number one, amazon is moving perhaps towards accepting bitcoin for payment. it's also considering the

creation of its own digital token. all of this according to an insider quoted by the london financial new hampshire. amazon posted a job for a cryptocurrency and blockchain lead don't know what it pays, andrew. meanwhile, bitcoin -- i'm not looking but just wondering that's weird that in the one ad -- in the wanted section of newspaper. going to see crypto positions. guess it's not going to go anywhere hitting nearly $40,000 at one point -- that was the one point during asian trading last traded near those levels. in mid june you can see it's 38,500 other cryptocurrencies all up some double digits toy maker hasbro jumping in the premarket. doubling analyst expectations

and revenue also beat. hasbro saw its film and tv-related businesses return to growth also saw strong results in the wizards division thanks to the popularity of dungeons and dragons and magic the gathering. more earnings out from defense contractor lockheed martin gap earnings of $6.52 a share. wall street consensusestimate was $6.53. revenue beat forecast and lockheed raised the full year guidance mike santoli is covering the markets on what's a big week for investors. meanwhile, eunice yoon is on top of the latest tech crackdown headlines out of china we'll get to both. let's start with mike santoli on the markets. hi, mike. >> hey, joe. a lot of familiar patterns we had another friday levee tags

coming into the weekend. that's four of the last five fridays are very, very strong. we proceeded that with another 3% shakeout and then return to all-time highs the other thing to keep in mind, fed meeting this week. it usually this year has been an occasion for the market to kind of churn a little bit, have some down time. late january was one, mid march. you had late april which didn't immediately cause anything you peaked out for a while and then of course mid june was the last one just to keep in mind that it often is a time to regroup for the markets and sometimes we've run up into it another familiar pattern, we had the s&p up 18% or so year to date take a look at the s&p from 2013 it's a touch stone, the year of the taper tantrum. scary rise that didn't turn into anything it reversed. similar to this year as of this date in 2013 we also were at about an 18% year to

date gate innumbers. not saying this is what we are at back in 2013, a closed election year a lot less coming out of the fiscal side. maybe that could be the case this year as well. finally, the more aggressive higher beta stocks in the s&p 500, those are more cyclical, risky, lev veered on a year to date basis, whole story since june, since the last fed meeting has been growth. it's not necessarily do or die for the cyclicals but a decision point for whether that's going to remain a decision part and tied to the strength of the reopening. >> we'll see all of the big tech names, mike. >> yeah. >> what would be surprising? earnings are going to be good. stocks already reflect that. what should we watch for where you'd say, whoa, that's unexpected >> anything but outright

strength in margins and top line growth across the board is probably going to be a little bit of a surprise. it's difficult to say what's in the stocks already when nasdaq has been kind of a leader for a while. things like apple and amazon seem like they have been gaining as opposed to people handy capping a good quarter we have seen it in the past couple of years when just these massive fang companies reminding everybody they're growing at 20% a year on a regular basis, which is unprecedented for that i size they have massive profit margins. that has been enough to carry the market i wonder when we've been up whether there's more room for disappointment or not necessarily being wowed by the numbers. >> the world is changing, mike the olympics is always -- i love watching whenever, but it's weird when i say brought to you by and it's things like facebook okay so facebook, i'm going to see ads from facebook. >> netflix a big tv advertiser.

>> uber. all of these glitzy, you know, highly produced ads showing uber and uber eats. >> sure. >> you know what else has changed? if there are still newspaper help wanted sections, i'm pretty sure they don't have a crypto section. >> probably don't. you'd feel bad getting it from old media. wouldn't even want it. >> thanks, santoli. andrew >> we have to talk about the escalating tech crackdown. they seem to be spooked by the moves the country or government is taking. eunice yoon has more from beijing. eunice >> reporter: thanks, andrew. property, tech, as well as education were all hit with a fresh regulatory clampdowns. local media have been reporting that in the property sector the housing ministry, which had

launched a new three-year drive to try to rein in the property speculation, that is going to include new limits for land purchases by property giants to under 40% annual sales and that includes acquisition costs morgan stanley downgraded the sector and then in tech the internet ministry said it was going to roll out a six-month campaign meant to clean up what it described as tough problems in the industry such as data security threats tencent tanked they fined them. maitwan saw shares plummet they're going to tighten the oversight of the food delivery industry they say to support delivery workers. and then finally for the private education field, china reiterated its concerns that

afterschool tutoring firms that were, quote, hijacked by capital and if you remember just on friday we were already seeing the directive from beijing that private education firms must now register as not for profit and cannot raise funds from stock markets or have foreign investment guys >> eunice, so i'm hearing two things i'm trying to decipher what is real here. on one side there's an argument that this is just the government trying to take more control of these businesses on the other side is a whole group of folks who say actually a lot of these businesses unto themselves have problems, either accounting issues or other things and that this is the chinese government effectively taking control because of that which is it? >> i think it's a little bit of both just because there are a lot of problems, as you could imagine, where i heard plenty of

times complaints that some of the practices that these companies engage in are not actually above board they need to be cleaned up and the government authorities are in their right to make these things better. for example, with the food delivery companies, the argument has been the delivery workers have not been getting an income that is at minimum wage for the local area the government says, okay, we have to make sure this is going to be happening for these local workers but at the same time, you know, depending on which field it is, again, people are worried about -- that some of the real motivation is about local control or for the government to take control away from private companies because they're worried that the private industry could become a lobby in and of itself and potentially have a larger influence and power than the government. and that's something that the communist party does not particularly like. >> okay. eunice yoon in beijing, thanks

joe, it's fascinating what's happening over there. >> it is every week we've got another sort of nuance or another aspect of what's happening. i'm trying to put it altogether so i can understand it it's not easy to understand. it's always been difficult i'll need a lot of help, obviously, from eunice 's analysis big day for tesla with earnings after the bell preview next also a big day for tesla competitors like lucid, about to trade publicly for the first time on the nasdaq after a big spac merger. we'll speak to lucid's ceo right after this break stay tuned, you're watching "squawk" on cnbc that's why insurers are going hybrid with ibm. with watson on a hybrid cloud they can use ai to help predict client needs and get the data

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welcome back to "squawk box. tesla reports quarterly results. phil lebeau joins us with what investors can expect from the ev giant. >> reporter: hey, andrew tesla is expected to post a profit but it's the metric the numbers within the numbers q2 profit margins, specifically

automotive growth margins. there's also the question of what type of growth the company showed within china. how much granularity did they give us and then the chip shortage we know from elon musk's comments there was an impact from semiconductor chips how much of an impact? is it expected to continue in the second half of this year the guidance will be in focus. you have two giga factories under construction one outside of berlin and one just outside of austin, texas. the one in austin, texas, is where they'll not only build the first tesla semis. that's where they'll be delivering the first tesla cyber trucks from. the cyber truck deliveries are not expected to be large within the fourth quarter but they are expected to begin later this year take a look at shares of tesla, general motors and volkswagen. we're showing you all of these

companies because they are the three largest ev spliergs, automakers in the world. they are one, two, three in terms of ev sales and in the first half tesla delivered a little over 388,000 vehicles they give guidance for the full year i'm not expecting it if they do, the number to focus on is 860,000 vehicles that is what the consensus is, if you will, guys in terms of what people are expecting. numbers after the bell and then we'll have commentary from elon musk coming up on "fast money. guys, back to you. >> phil, why do you say no guidance why is that your gallon nl >> full year. >> because they typically tend not to do that half way. they could surprise us

i get the feeling they are not going to give us a number we can hang our hat on. >> okay. phil lebeau, appreciate it we're going to continue this conversation about the world of evs. we'll pivot from tesla to another big ev company or one that wants to become a very big ev company, that is lucid. stock shares will trade publicly listed under the ticker lcid which follows lucid's merger with capital company joining me live is peter rawlinson. we've spoken to you a bunch of times. now it's real. you have $4.2 billion to get to work with in terms of building out production companies and everything else. before we get into the business

itself, i want to understand what happened over the last 72 hours or last week because it was a very touch and go period, moment, trying to get so many retail investors to vote in favor of this transaction was a lot tougher than people anticipated. >> the key message is lucid attracted such attention from the retail sector. >> there's a great following with our message it was done with a positive vote it was a matter of getting out the word to the retail sector. >> the reason i ask, is this going to be a different relationship do you think as the ceo that you are going to have to communicate that with them in a very different way? historically if you had more institutions involved in these

types of investments, you could get the vote easily. this was a new feature or problem perhaps with the sort of reddit/robinhood community >> it is quite a phenomenon. we have blue chip industrial investors. i think it's testimony to the appeal of our product and our technology we've enjoyed that position >> i had the opportunity to take a test drive in the air just last week. it was pretty spectacular i will say. last time we talked you said you had 10,000 pre-orders, what do those numbers look like? >> it's close to the 11,000 mark and growing daily. we're responding to that uptake

in demand. we're accelerating our factory to accommodate increased volume. we've just started grading the site for a 2.7 million square foot expansion this is what the $4.4 billion that we've secured enables it enables growth of the company, strategic, judicious growth to expand our manufacturing capability and to mitigate risk as a company >> you know, oftentimes your company gets compared to -- i assume you like the comparison to tesla, but one of the things when you think about the life cycle of tesla to now, they've had to raise a large amount of money. you've had to raise $4.4 billion. does that give you some running

room do you think you will have to go back to the public market to give you more money? >> 4.4 is an enviable position it secures us through the end of 2022 you make the comparison with tesla. i believe they accrued about 300 million for their ipo. it puts us in a great position for strategic growth. >> the reason i ask the question if you need cash in the end of 2022, 2023, how should investors think about the possibility of the future >> we need to attract increased capital. this is a capital intensive endeavor that doesn't have to be gained through dilution it doesn't have to be sort of equity financing

with sherry house joining us, my new cfo, we are on a trajectory as a business. we need to grow the business this isn't just about lucid motors we're launching lucid group. we're in the forefront of electric mobility and electric technologies that's what the environment needs. we need this transition towards sustainable mobility and that's what our advanced technology can offer. >> in terms of timing, you're still making preproduction cars. how long before you make them? >> we're on track with delivery to consumers, lucid air, this year we're on track with our commitments of volume over the next couple of years and, you know, what really excites me

this is a landmark in our journey in becoming a public company so everyone knows what really excites me is the prospect of delivering the best evs in the world to our customers this year. we're going to commence that with the lucid air that you've experienced. >> peter, mercedes says it's going to be all electric in 2030 how are you thinking about the broader competition? do you have to think about just the ev market or all luxury vehicles >> i don't believe there is a market for evs as such, andrew there's a market for cars. the more penetration evs can make in all sectors, the better it is for the environment. we need to accelerate that hats off to mercedes

i'm delighted. i want lucid air to be compared and road tested against the very best bring on the competition >> peter, strategically you've positioned lucid as a very high end, super luxury company and the question is longer term is this like a tesla kind of model in which you intend over time to bring the price down and at what -- what is the lowest price point or value version of the car do you think you will end up offering or is that not in the cards. >> we're starting with a high end product and it's a tour de force. product definds brand, not the other way around we start with a dream edition. it's $169,000.

it's over 1,000 horsepower and it will have over 500 mile range but we will get lucid air with lucid pure, the air pure model to 77,400 late next year i want to push the price down, make the product more attainable because that's what we need and gradually increase volumes but we need to establish the brand with initial product, 1,000 horsepower premium edition. super car performance. incredible range that defines the brand >> peter,s awe may know -- i'm sure you know, tesla is opening up its charging network to other brands i'm curious how you think about that i know you're part of the electrifying america network, but longer term do you see all of these vehicles working on each other's networks? >> well, i think that would be a great solution i think the important thing here

is that we're partnering with electrify america which is a capital light solution for lucid. we're going capital intensive with our technology and with our manufacturing. we're capex light and we're also leveraging the 1,000 volt 350 kilowatt capability of the electrify america network. lucid air dream edition launches at 924 volts this is the next generation high voltage cars you compare that with the at the time la network which is more of a 400 volt system. >> it's a lot faster charge. peter, want to thank you i will tell you, sitting in the passenger's seat riding shotgun, we went from 0 to 60 in i don't know how it was too fast. i said to the driver, we've got to slow down i was nervous.

he's done it before. >> don't you enjoy it? glad you enjoyed it. >> thank you, peter. we wish you lots of luck with this >> thank you so much >> joe, i'm going to take you for a drive next time. >> remember when we did that >> yeah. >> you didn't want me to drive fast we were driving ferraris then i think we were. >> i think we were. >> andrew, i've got some -- i mean, do you know anyone in olympic judo do you know the gold medal favorite >> i don't >> karate? >> who is it >> i don't know. it's not an american though. we don't have a lot going on in judo or karate grekoromen wrestling we have guys i'm looking at. >> you're betting on this stuff. i've got it. i've got it. >> no, you asked me about it olympic weightlifting. olympic rowing do you know the best two-person sk scullers i don't really feel ready for this yet

maybe hoops. >> hoops. >> women's soccer. women's soccer maybe i don't know it's -- but i'm thinking about it but all those things are available if you want and they all have odds. who makes the odds on like wrestlers and the light weight class? how do they know how do they know it's amazing i don't know coming up -- maybe mohamed will know al and adviser mohamed el erian as we get set to kick off the busiest week in earnings season. stay tuned, "squawk box" will be right back ng plans. this is us talking tax-smart investing, managing risk, and all the ways schwab can help me invest. this is andy reminding me how i can keep my investing costs low and that there's no fee to work with him. here's me learning about schwab's satisfaction guarantee. accountability, i like it. so, yeah. andy and i made a good plan. find your own andy at schwab. a modern approach to wealth management.

coming up. online platform robinhood. also talk about how the red hot ipo market might be about to cool off stay tuned, you're watching "squawk box" on bccn turkey hill chocolate chip cookie dough creamy premium ice cream and chasing fireflies. don't worry about me. i'm fine. you can't beat turkey hill memories. ♪ ♪ i had the nightmare again maxine. the world was out of wonka bars... relax. you just need digital workflows. they help keep everyone

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the ipo market is booming. been booming all year. now some are wondering whether that trend is ready to end leslie picker joins us with some answers. hi, leslie. >> joe, that's a good question for the better part of the last decade the u.s. equity markets have been shrinking. that's really changed. the ipo market for spacs and traditional companies have been so robust. several large companies have defaulted. the net share supply on u.s. exchange are actually positive it's the highest in 16 years according to data from jpmorgan.

many in the private equity show us this is only temporary. hullman and freeman raked in more than $24 billion. ceo patrick healey spoke to us for this week's delivering alpha newsletter he said it won't always be this ripe for ipos and spacs. >> as things get more they will get more picky and choosey it will go towards the higher quality in terms of business improvement or valuation impact for accessing the public markets for less mature, less developed companies. >> in the meantime pe firms like healeys are taking advantage of the hot ipo market while it lasts by selling portfolio companies. snap 1 is going public you can subscribe to our newsletters which comes out at cnbc.com/deliveringalpha >> leslie, typically if you look

back historically does it end with a bang? does someone ring a bell, a high profile, one of these doesn't do well it's like, okay, that's it or is it a slow bleed where there's a series to come out with disappointing debuts? >> yeah, i think the norm is for that slow bleed that you mentioned. the high profile example is the dotcom boom and bust which everyone looks at the worst case scenario for shutting the ipo window that was a scenario where we saw absolute record-breaking ipo issuance both in terms of number and volume back then and then of course it all ended with a bang very quickly throughout the course of the last several decades since that time it has been kind of these slow ups, slow downs largely based on certain issuances that don't go as well or areas of the market and this is something heely talked about, potential for inflation or potential for what's going on with the delta

variant to put at least a pause on ipos as it kind of furthers uncertainty in the market. >> the fed might have something to do with the next timed slowdown. >> people say it did in the late '90s, early 2000s. >> rising rates probably wouldn't help. who knows if we'll ever have that >> thank you. >> meantime, robinhood -- >> this one could be it, andrew. we have to watch robinhood >> we will see we will see whether the music keeps playing or the music stops. robinhood adding a vurt actual stop on the virtual road show for retail investors using this app. kate rooney joins us with the latest on that kate. >> reporter: hey, andrew good morning robinhood's team started with a slide show and financials. they talked a lot about growth some of the interesting details about the future of robinhood came during the q&a with

customers. vlad tenev said the startup is interested in expanding into retirement accounts with iras and roth iras. they're working on wallets for cryptocurrencies that would let robinhood customers own their own digital assets they talked up robinhood as a single money app executives highlighted ways to diversify the business model away from transaction based revenue especially as payment for order flow comes under new pressure that included spending and savings products management team chose the questions. they said they had thousands of submissions. tenev appeared to be reading from a teleprompter when answering q&a. he fielded one question that had nothing to do with the ipo user asked him about his favorite planet, which is pluto, by the way robinhood is allocating money to

customers. it is expected to list on thursday on the nasdaq guys, back to you. >> so how much do you think talking about the retirement accounts and that piece of it changes the way the investor class, if you will, is going to value this company >> it's interesting. people know robinhood as the trading app. people are using robinhood up to seven times a day. that's a long-term play. they're thinking of robinhood diversifying away from the transaction based revenue and payment for order that they talked about potential pressure from re regu regulators if you look at the comparisons in fintech that do roth iras,

they're not doing nearly as well they've grown a lot more slowly and less extremely robinhood's valuation is all about the trading. >> kay, real quick because i know we have to run. crypto crypto has made up a huge type of the trading you saw that in the earlier numbers. it appears and we'll see whether it's really cooled off bitcoin powering back a bit or more than a bit today. what's your take on where crypto lies in the future of robinhood? >> we've seen a big shift. >> it's making up a bigger share of the earnings. others have speculated the upcoming quarter, as volatility slows down that means the trading volatility slows down. dogecoin was one of the biggest drivers. their growth has been tied to a lot of viral events whether it

is something like gamestop, dogecoin and snl they rely on big events and volatility if bitcoin becomes less volatile, that is not a good thing for robinhood although it's up big tate. >> kate rooney, good to see you. thanks. >> you, too, thanks. we're joined by mohamed el erian, adviser to alianz cheap money helps. how do you think robinhood's going to do? if the fed were to start tapering, something you think they should do, will that be part of the slowdown in all of the interest here? >> good morning, joe thanks for having me what we've seen in the private heequity market, everything in

balance sheet is going up. whether the assets, liabilities, secondary markets, primary markets, whether it be new cars, used car, everything is going up velocity's increasing because there's so much cash in the system that is a function of what the fed is doing people will be listening closely to what the fed says this week i don't expect fireworks it is all a function of not just cheap money but ample money. >> yeah. >> it's been so long since we've had an inflationary problem, mohamed, i don't know whether people understand. i want to talk to you about that because you're worried it's not going to be transitory

politicians seem like they may have skipped this part when they were in college, skipped the part about inflation or economics. sherod brown, the senator from ohio says the only reason republicans are talking about inflation alarmism is because they don't want workers to make more money he's basically saying that all of these rising costs are actually good because they're going to mean rising wages have you ever seen wages keep up with cost of living increases? can it be a positive >> it could be a positive. real wage resistance if workers have an ability to protect themselves against higher prices, they can end up with higher real wages they don't have that ability today. they're regaining it, but regaining it on a low base joe, there's a fundamental

misunderstanding today most people have lived through it for a long time most traders on wall street haven't traded through it. it's a relatively new phenomenon it's being misunderstood i always laugh when people say it's isolated, it's transitory you remember, it was trips then trips became new cars then new cars became used cars used cars became rental cars there is a logic to this inflation chain. most people haven't seen them. it's not isolated, it's interconnected. >> who is going to come in and save us for what could be a period of renewed inflation concerns that we haven't seen in 34 years is it going to be policy makers, the fed or anyone? >> so it's unlikely to be the fed. the fed has adopted a new

framework that is backward looking. no longer forecast based and outward based. it's not going to be the fed it could be that companies can't get their prices to stick but the ceos i speak to, i encourage you to ask that question are all pretty confident that with demand booming, prices will stick. so i think we're looking at higher inflation the question is not whether inflation will be higher it is whether the system is wired loosely enough to adjust to that. and that's will be the learning. >> you don't think right now just the size of the deficit, let's say we do another trillion and another 3.5 trillion on half of that, you don't think just the debasement of the currency,

the other mandate the fed is ignoring, you don't think that causes inflation a year, two years, three years down the road that's not going to be a problem? >> so here's what i think. i know you won't like this it's a monetary policy issue it's not a fiscal policy issue what i'd like to see is three policy pivots. continuing to invest in pro growth and doing more on credential regulation in order to take some of this froth out of the market. you need these three things. if you can do it, you can transition to another world. >> you said pro growth you said one thing, i think probably the opposite. thanks, mohamed. that's for a future discussion that we'll have. >> thank you, joe.

>> time will tell. thanks andrew. coming up, jim cramer's first take on a very big week ahead for the markets, the fed and corporate earnings and once again, the biggest of the big tech names set to report before friday. am wn rurribout it all with mr. crerheweetn ght here on "squawk." all the things, all around you... where you learn, work, and fly... we help make them healthier. we are the people of abm. for more than 100 years, we've been a leader

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let's get down to the new york stock exchange. we have been talking lucid,

robinhood, tesla and all the other tech stocks reporting this week, jim. then bitcoin, crazy. 12% move there what's happening with you? you're looking at all this stuff, i know. >> yeah, it looks like bitcoin must be some sort of a squeeze i know there are a lot of big hedge fund guys betting against it thought it was going to break down at 30,000 clearly didn't i don't think people anticipated the rumor of amazon which is amazing. i'm seeing the reports no one should be too excited oa oats was pretty good eunice yoon is all over it what are they trying to go after? are they trying to go after companies that target rich chinese? china coming after companies that target too much entertainment? all over the map doesn't seem to be very coordinated. clearly there's something going on, joe, where they're trying to make it -- seen

for the past three months or so, which -- and there were things >> there are things happening, big mayb even two months when they -- one after another that we report on on either a monday or tuesday. and what is the common thread there? i don't know if we should even try and figure it out. we may come up with the complete wrong -- >> i don't know. one thing could be that they don't want wall street to make money. we always thought they wanted access to our markets. it's almost as if they decided, you know what, american brokers have made too much money, and let's shut them down it is one of the strangest crackdowns coming from all different directions and yet, some companies like starbucks which reports this week are doing so well there. nike every day we come in and there's a new area that makes you feel

like you've got to get out of it. when did they target those >> i think if you are owning them, absolutely >> jim, thanks we'll see you in a couple of minutes, "squawk on the street." >> andrew. strategist and portfolio manager at high tower advisories and also a cnbc contributor. ahead of these earnings reports, especially as we already saw a move in a lot of big tech companies, i'm curious how you're thinking about pos positioning yourself. >> yeah, so good morning first and foremost, i think earnings have really been great. only 25% of the companies have reported so far in the s&p 500, but they're beating by 18%, and it's very broad-based, and guidance has been really good. but to your point, the reactions

have been pretty ten pid so far. the stocks don't react, that's called value creation and you can buy stocks that you don't have to pay up for so let's watch this week, between apple, microsoft, google,s facebook and amazon that's 24% of the s&p 500, and we know these numbers are going to be terrific we know that digital advertising is recovering, twitter and snap told us that travel search is really going to rebound. we know that 5g just beginning, cloud is on fire retail ecommerce all of these things are very much in favor for these companies. the problem is all these stocks have had a nice run. microsoft's up 28% year-to-date, al alphabet's up 57%. it's going to be a tough bar i think the expectations are actually a little bit lower for apple, which is only up about 12% and amazon those are the two that actually i still remain pretty

constructive on. >> in terms of the move that we saw last week and some of the consumer tech, how much of that do you think is a function of just some of the numbers we did see out of the few companies that did report versus what some people are describing as a sort of delta variant move, which is to say that, you know, as folks get more anxious about that, maybe they pile back into tech >> absolutely. i think that's absolutely what's happening, and it started in mid-may. you had -- you know, value had outperformed growth by 12% from january to mid-may we started worrying about the delta variant and interest rates. you got right back into the growth trade that absolutely is part of it at this point that means expectations are really quite high. i would say i would highlight caterpillar this week. they report on friday. if they can beat, do people start to get more constructive again on the cyclical stocks >> stephanie, you know, we talk

to dr. scott gottlieb virtually daily on the delta variant and covid. we listen to him on the health aspect of it i'm curious how you think the market is thinking about the delta variant and whether irrespective of what happens in various states around laws and masking and the like, whether you think there's going to be a behavioral change this fall, meaning what's baked into the cake i think about new york and i think about broadway is supposed to be starting back up again, and i wonder, you know, what that really is going to look like >> it's absolutely a worry point and it's an unknown. this is why interest rates are where they are we just don't know what's going to happen with delta, whatst going to happen with china, with global growth, with the fed. there's a lot of uncertainties that's why you have seen kind of a reversion back into growth if you have low growth, you're going to want to own growth stocks, right? and i think that's really what's

happening here but let's listen to what the companies have to say. as i said early on, earnings have been very broad-based, very impressive, guidance is going up across the board cyclicals and non-cyclicals. >> right. >> pick your spots, be diversified. >> steph, we've got to jump. in ten seconds can you explain the move in crypto beyond the amazon rumor >> i think it is just the amazon rumor and it's a lot of credible companies that have actually backed crypto, right it's not just amazon it's paypal. it's square, it's visa it's jpmorgan, so it's a lot of companies. and you know full adoption is on its way. >> okay. from your lips, we'll see. we'll see. coming up. >> we'll see. >> what you ed tneo watch, ahead of the opening bell on wall street stay tuned "squawk" returns right after this that kept them going. ♪ at u.s. bank, we can help you adapt and evolve your business, no matter what you're facing.

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a final look at the premarket action in the averages you can see we're not triple digits at this point the dow is now indicated down 96 the nasdaq indicated down 35 or so, s&p down 11. things to think about, take a quick look at the ten-year, which is not really the story today. we've got some new issues. we've got a lot of tech earnings coming, and obviously i will be

listening closely again to what the fed has to say this morning. what's on your -- let's summarize the show like you ask guests to do in five seconds, andrew, what would you say bitcoin? >> not bitcoin, i'd say positive tech earnings are going to rule the week, but we'll see what that really means to the markets, whether things moved either too far too quick or not. >> all right we'll do it, and we'll see you tomorrow, andrew make sure you all join us tomorrow, "squawk on the street" is up now. good monday morning, welcome to "squawk on the street." i'm carl quintanilla with jim cramer at the new york stock exchange david faber has the morning off. futures are well off the early lows of the morning on this final week of july peak earnings season, fed meeting and a of course a lot more talk about disruption from the delta variant.