it is 5 a.m. at cnbc global headquarters and here is your top 5 at 5 the cdc reversing its course on the indoor mask wearing onthe vaccinated and unvaccinated as the delta variant is continuing to spread. the biden administration is continuing more action. blowout results for the most recent quarters for big tech. robinhood prepares for the public market debut. ahead of its pricing tonight, many institutional investors are wondering if it will succumb to

the curse of the 2021 big deal ipo. the cyber threat is real ibm is out with a report with the true cost of hacking especially when work from home is a factor. shocking news from tokyo as the major headliner for team u.s.a. pulls out of her signature event at the 2020 olympics it is wednesday, july 28th, 2021 you're watching "worldwide exchange" right here on cnbc and good morning i am frank holland in for brian sullivan here's how stock futures are looking as we kick off this wednesday morning. the dow pretty much flat down very slightly the s&p 500 and the nasdaq both up fractionally. stocks coming off their first down day in six with tech and nasdaq really getting hit the hardest. the nasdaq coming off a 1.2%

decline. this as the fed prepares to issue its latest policy decision at 2 p.m. today. no announcement in terms of a rate hike. focus is on talk of a potential taper. the fed may have to take a back seat earnings continues to roll on. results from apple, alphabet and microsoft after the close yesterday. those results at least giving the impression demand for digital services and gadgets is showing no signs of slowing down the three tech giants raking in a combined after tech profit $59.8 billion. we turn our attention over to the early trade in europe. our juliana tattlebaum is standing by. >> european equities off to a strong start this comes after losses yesterday. the main benchmark dropped 0.5%.

it had been gaining ground the positive momentum continuing into today's session earnings fully in focus. we have a number of earnings across sectors reporting and pretty decent share price moves on the back of share point results. let me run through results barclays and profits at barclays almost trebled to 5 pounds barclays will also resume its dividend and buy back up to 500 million pounds of its own shares and today invest horse are rewarding the company for these results. shares up at 4% putting it towards the top of the 600 deutsche bank swung back with profit in the second quarter shares marginally higher there and then in the fashion space montcler shers more than doubled

year on year excluding the recent 1.2 billion of men's fashion brand stone island they said the double digit growth as well as online, moncler shares down. the stocks are reporting numbers today. now turning our attention back to the united states. a developing story when it comes to covid and the rapidly spreading delta variant. the cdc is reversing course on the mask guidelines. recommending unvaccinated and fully vaccinated people begin wearing their masks indoors in places with high covid transmission rates this comes as president biden is reportedly going to ask mandatory vaccination guidelines across the federal government. tracie, good morning a lot to unpack here >> reporter: absolutely, frank good morning, everyone the mandatory federal requirement would have some

exceptions but would be a sweeping change and send a message about how serious the government thinks this latest spread is due to the delta variant. as for the cdc, they just reversed from two months ago, just two months ago they said people who arevaccinated don't have to wear masks indoors now reversing based on new evidence. new overnight, the top doctor at the u.s. capitol is requiring everyone wear a mask vaccinated or not the white house will too as president biden now weighs whether to also require the covid vaccine for all federal employees. >> it's under consideration right now. >> reporter: the cdc reversing course now recommending indoor masks for everyone in high transmission areas red and orange on this map that's 2/3 of the country. health officials believe 100 million unvaccinated people are driving the spread >> we've got to get to them.

we've got to convince them to get vaccinated. >> reporter: but there's also new evidence that infected people who are vaccinated can transmit the virus to others >> those data are very compelling and that triggered the change in the cdc guideline. >> reporter: the cdc recommendation includes masks for all school children and staff but several states have banned mandates. >> it's confusing to parents one school district is going this way but one school district a few miles up the highway is different. >> reporter: vice president harris seen masks up in washington. >> none of us like wearing masks. people need to get vaccinated. >> reporter: the mask debate heating up as federal employees wait to hear if they will also need to get a shot now sources familiar with those discussions tell us that federal workers who decide not to get the vaccine would have to wear a mask and test frequently

frank. >> tracie potts for the very latest out in d.c. thanks, tracie. our bertha coombs is here with more. good morning >> reporter: good morning, frank. chinese bike sharing giant hello is formally scrapping plans for u.s.ipo becoming one of the first casualties on beijing's crackdown when it comes to overseas listings. the company is backed by jack ma's ant group credit suisse is expected to publish an investigation as soon as tomorrow detailing the breakdown that lead to massive losses related to archegos capital management according to "the wall street journal," the report would focus on the bank's risk management movement came in errors, judgment and concentrated positions could become public around the time the investment bank report's second quarter

results which again are slated for tomorrow walmart is taking a page out of amazon's playbook when it comes to web services. starting today the retail giant will begin selling its ecommerce technology which allows customers to buy items online and pick them up in stores to small and medium sized businesses on a subscription basis. walmart is partnering with adobe to offer the new subscription services businesses will be able to add products to walmart's online marketplace with just a few clicks shots fired, frank that would be a big, big competition there. two bohemoths. >> sometimes when the big boys fight, bertha, you've got to let them go. let's turn our attention back over to the markets futures back in the green. nasdaq and s&p up marginally this comes after the market snapped a five days winning

streak pfizer and mcdonald's set to release their numbers this morning. joining me is bill stone glad you're here big question now, earnings or fed? which one is top of mind for you when it comes to the markets >> you know, i'm going to push and say both but, you know, i guess the earnings rules dominate the morning and then the fed will take over in the afternoon. >> there you go. clean answer you said push and you gave us a real answer. i like that one. obviously, bill, so much going on right now just in the global economy and just the world in general. we have the delta variant. we have inflation here in the united states. also in other parts of the world. we have the 10-year, those yields down from a month ago we have the yield curve flattening how do you see that impacting the market before we get that fed news conference at 2:00? >> well, i mean, it's been really kind of hanging over the markets.

you've seen some of the more economically sensitive companies. frankly, i'm going to say the banks are probably the easiest one to point to not trading well despite the fact that, you know, the market hitting all-time highs quite often during the period and i think that's really showing you underneath the surface the worry is that, you know, we might be, you know, going into some more difficult economic growth comparisons but -- and part of that, you know, probably chalk that up to worries about the variant and also worries about perhaps the fed being too aggressive in taking away stimulus generally the companies are a solid read on the state of the consumer you saw the numbers and what did you take away as we enter the delta variant influence recovery >> yeah. i mean, what you could say about it is the u.s. consumer is alive and well at least for things they really want

so starbucks now posting better results or better sales than they were pre-pandemic when you think back on it, will people go back to their coffee fix going to starbucks for it because you're not in the office i certainly worried about that well, worry no longer because they knocked it out of the park. probably the only concerns out of starbucks are really that coffee prices have been going up quite a bit. they said they had the ability to raise prices kind of think about when we talked about inflation earlier. the second part about them is a little worried about the international. there you go with the variant side they've had pressure on japanese and chinese sales from lower mobility go over to apple again, knocked it out of the park they didn't have any problems selling phones or their different products during covid

frankly but then they more than doubled earnings now in a quarter over quarter basis their issue is really when you go and look at it, they talked about that they've got supply chain issues and they probably won't be able to ship as much product as people want all in one you've got all of the issues we're dealing with out there within these two companies. >> well, at least the webex audience can't live without it. much more on "worldwide exchange," starbucks warning of problems percolating in china. plus, how one travel startup is banking on the return of business travelers even as the pandemic is showing no real signs of ending. later, breaking down big tech what wedbush is telling this morning after blockbuster results. a veryus by hour ahead when "worldwide exchange" returns

need better sleep? try nature's bounty sleep 3 a unique tri layer supplement, that calms you helps you fall a sleep faster and stay a sleep longer. great sleep comes naturally with sleep 3 only from nature's bounty

♪ put a little love in your heart - david ruffin ♪ and stay a sleep longer. greatmy bad, my bad...rally

good race! -you too! you were tough out there... thank you, i'm getting you next time though. oh i got you, i got you. hamblin goes down. d'agostino helps hamblin back up. are you okay? -yeah. time now for your big money movers three stock stories of the morning. shares of starbucks under pressure down 2.5% despite beating on the top and bottom. global same-store sales up 73% from a year ago when they fell 43% during the depths of the pandemic u.s. sales 83% year on year. the coffee chain is lowering its

full year forecast for the same store sales growth despite raising the overall outlook for fiscal 2021 earnings per share. shares of amd are higher after they issued third quarter guidance the world's second largest computer chip maker says computer sales will come in at $4.31 billion. amd raising its annual outlook and now expects sales to jump 60% compared to an earlier forecast up 50%. visa shares under pressure as well this morning down almost a percent despite beating on the top and bottom lines for the most recent quarter ending on june 30th. they're reporting sales of $6.13 billion topping the 5.8 billion analysts were expecting. the results come on a snap back of consumer spending a year ago with visa saying payment volume is up 34% to $2.7 trillion. still on deck on "worldwide

exchange," how one startup is trying to lure back the elusive business traveler taking a page from airbnb along the way. shocking news for team u.s.a. in tokyo when it comes to gymnastics superstar simone biles. the full story when "worldwide exchange" returns. today's big number $2.24 trillion that's how much is invested in esg funds globally as of the end of june according to morningstar. increased offerings, net end close and market appreciation grew sustainable fund assets by 12% since the first quarter. ah, same deal! yeah, it's kind of our thing. huh, that's a great deal... what if i'm new to at&t? cam, can you...? hey...but what about for existing customers? same deal

(breathless) it's the same deal is he ok? it's not complicated. with at&t, everyone can ace back to school with our best deals on every smartphone - like the samsung galaxy s21 5g for free. age before beauty? why not both? visibly diminish wrinkled skin in... crepe corrector lotion... only from gold bond. wondering what actually goes into your multivitamin? at new chapter, its' innovation, organic ingredients, and fermentation. fermentation? yes. formulated to help you body really truly absorb the natural goodness. new chapter. wellness, well done. i'm 53, but in my mind i'm still 35. that's why i take osteo bi-flex to keep my moving the way i was made to. it nourishes and strengthens my joints for the long term. osteo bi-flex. find our coupon in sunday's paper.

need better sleep? try nature's bounty sleep 3 a unique tri layer supplement,

that calms you helps you fall a sleep faster and stay a sleep longer. great sleep comes naturally with sleep 3 only from nature's bounty welcome back to "worldwide exchange." let's get a check on this morning's other headlines. nbc's phillip mena is in new york. >> good morning. a chemical leak killed two people last night and left seven more injured the acidic as sick leak was quickly contained and there's, quote, no level of concern for residents in the area. an investigation into the cause is still underway. meanwhile, it was an emotional day on capitol hill during the first hearing on the january 6th riot police officers gave gripping accounts of facing down the mob that day describing attacks that were both verbal and physical. top republicans have criticized

the investigation into january 6th as partisan. and finally it's perhaps the most shocking moment of the olympic games so far simone biles considered the greatest of all time suddenly pulling out of the team gymnastics final after struggling on the vault exercise officials confirmed that biles will also not defend her all around gold medal in the individual competition her team says she is focusing on her mental health. biles will be evaluated daily to determine whether or not she will compete in next week's individual event finals. frank, back to you. >> phillip big disappointment to not see simone biles not compete don't know what's going on in her head we know she has the heart of a champion. >> she doesn't owe anything to any of us. she only owes it to herself to take care of her own well-being. >> wishing her the best. absolutely great to see you as always. >> you too. demand for travel in short-term rental booking has been slowly recovering as travel restrictions have come

down across the country. airbnb platform offers contactless hotel amenities seeing the company bounce back it will partner with platforms to offer businesses the ability to book through the site expanding from individual travelers as business travelers -- business travel also looks to make its comeback. let's bring in the ceo of saunder, francis davidson. >> good to be here. >> frances, really quick we described your platform as airbnb like. can you give us what the biggest -- i can't talk right now, at an airbnb and hotel from a saunders site. why would business travelers be attracted to one of your sites as opposed to a hotel. >> saunder is a tech enabled hospitality brand. what that means is we operate hotels and apartments under the sonder brand they are beautifully designed by us the services are accessed

through the sonder app early check in, check out, communication with our staff, et cetera it makes it possible for us to offer premium accommodations we're on a mission to take it from 39 cities to across the world. you have more than 250 properties across the nation so the idea here for you is you can attract business travelers in general they would ideally be longer stay people like a lot of other people on your platform. my question to you is when do you see your ability to take advantage of that? i talked to my colleague, phil lebeau, one of the experts on airline travel and business travel, he said business travel is 70% lower than it was before the pandemic when do you see the rebound? do you see people staying as long as they would have pre-pandemic >> the business travel recovery has been slower than leisure travel but it still has happened

extremely rapidly. we think our value proposition resonates. they have a duty of care and they need to travel safely with sonder we can do the entire rental in a contactless way. it's been resonating with travelers over the last 18 months and that story is really appealing to travel management and businesses that want to put their employees back on the road. >> where do you see the future of long-term stays like your company provides do you see people wanting to stay longer in one place or as the recovery continues, do people want to be a bit more nomadic. we saw a big boost of rv shipments and they wanted to hit the road and control their environment. >> i've been on the road for the last nine months and 74% of young adults that we've surveyed have expressed a strong business

of trying the digital nomad lifestyle. the idea that companies are comfortable with digital freedom, sonder space is perfect for that they come with high quality consistency which is impossible to find in the market today and really suitable for longer stays. >> ceo of conder, francis davidson appreciate you coming here. "worldwide exchange," the true cost of hacking ibm out with the new report highlighting work from home as a costly variable when it comes to cybersecurity. "worldwide exchange" will be right back creamy premium ice cream and chasing fireflies. don't worry about me. i'm fine. you can't beat turkey hill memories.

need better sleep? try nature's bounty sleep 3 a unique tri layer supplement, that calms you helps you fall a sleep faster and stay a sleep longer. great sleep comes naturally with sleep 3 only from nature's bounty

team usa is ready for the olympic games... and stay a sleep longer. ...and so are mike and eddie! show me the olympics. they easily catch every single event with the award-winning xfinity voice remote. show me bmx racing! show me swimming. track and field. shot put. skateboarding. water polo. climbing! discus. surfing. dressage. dressage? it's horse dancing. magnificent. with the best of the olympics, and everything else you love,

it's a way better way to watch! cheer on team usa with xfinity x1. say "show me the olympics in 4k" so you can watch in stunning 4k ultra hd. big tech's biggest stars crushing the street's latest expectation. wedbush's joe kalina here to sift throughthe numbers with what investors need to know. president biden with new mandates to come bad the surge and the delta variant as the cdc reverses course on rules regarding masking up indoors. new troubles for robinhood on the eve of its ipo. you're watching "worldwide exchange" right here on cnbc all right. welcome back i'm frank holland in for big

papa, brian sullivan here's how stocks are looking halfway through the 5 a.m. hour. the dow flat the s&p and nasdaq both firmly in the green all three indices snapping their five day growth streak with the nasdaq suffering a more than 1% drop we want to get a look at some of the stocks right at the center of china's ongoing regulatory crackdown. we see alibaba up more than 1% meituan up 7%. tal education up 11% now we want to take a look at this morning's other top stories. bertha combs is back with those. good morning again, bertha. >> reporter: good morning again, frank. president biden reportedly set to reveal new steps in the battle to combat the delta

variant surge. all federal employees and contractors will be required to be vaccinated or submit to regular testing. he also expects to reveal new incentives to encourage more jabs the move would follow the cdc's decision to reverse its mask recommendations saying that vaccinated people and kids in hot belts in this country should once again wear them indoors we're learning new details meantime about rivian's planned expansion plans. they plan to invest $5 billion into its expected second manufacturing plant. the report adds that the plant will include a 50 gigawatt hour battery cell production and a product and technology center. reuters said construction will begin this fall with producing -- productions, rather, slated to begin in the second quarter of 2023 and delta is ramping up hiring amid surging travel

demand ceo ed bastian saying the company is looking to add 5,000 employees across the country including 3,000 in customer service and other operational areas. the tsa reported screening more than 2 million people on tuesday, a dramatic jump from the 700,000 one year ago and i will tell you, frank, the other day i was making a reservation for later this year. i had problems online. they told me it was going to be a two-hour wait on the phone i was glad that i was able to resolve it myself online two hours. >> i've had the same experience. i had to cancel a flight you call, you hold, you hold, you hold i tried using their tech service. it was faster. we appreciate it. >> there you go. cybersecurity. the true cost of data breaches our eamon javers joins us with a look at the numbers. good morning, eamon. >> reporter: good morning,

frank. this is the 17th year ibm has done the data breach report. the findings are bad news for companies on the receiving end of all of the cyber attacks. the company found the average cost is up 10% in the last year. in this weird pandemic era that remote work was a big new driver of vulnerability, remote work is involved in breaches of 17.5% of companies. the remote breaches took more time to chase down and costs just over $1 million more to fix as well. so these things can be steep and which industries had the highest costs from all attacks health care took the top spot followed by finance, pharmaceuticals, technology and energy here's an interesting statistic on ransomware which we have heard so much about recently the average total cost this year is $4.6 million. that's not including paying the ransom itself. ibm reminds us that costs from

the ransomware attack include everything from detection, escalation and notification to lost business and the post breach response. all of that is getting very expensive. frank, back over to you. >> eamon, incredible numbers there. here's the real question what can companies do to try to keep these costs down? >> well, ibm is saying in this report that what you want to do is have a good security system in place some of this might come down over time due to the detail end of the pandemic. we heard from bertha about the covid variant surging and mask mandates and all of that if we can get past that and get people back into the office, that might help. remote work does seem to be adding vulnerabilities here. security procedures, everything as sexy as ai-based security to as basic as regular old encryption, all of those things ibm says do drive the costs down. >> eamon javers, we appreciate the very latest out of d.c

turning our attention to the big money movers it's the biggest of the big. apple, alphabet, microsoft and facebook let's kick it off with apple revenue beats across all products and all services. apple delivering 39.6 billion in iphone sales alone up almost 50% from a year ago. the strongest sales growth coming from china where ceo tim cook says customers are buying accessories such as the apple watch to pair with the iphone. slower revenue growth as the global chip shortage will start to affect iphone production. that's something cook addressed on the earnings call >> the majority of constraints are of the variety that others are seeing classified industry shortage we do have some shortages in addition to that that are where the demand has been so great and

so beyond our own expectation that it's difficult to get the entire set apart within the lead times that we try to get. >> all right now let's bring in joe kalime at wedbush securities thanks for being here. >> frank, good morning thanks for having me. >> let's kick it off what was your take on the apple reportings and the chip shortage and the commentary from tim cook that you could see was pretty cautious. >> yeah, it's not very surprising that the tone, especially surrounding the global chip shortages, has been fairly cautious. you're not going to get paid handsomely to be a hero and downplay musk has flip flopped on the semi shortages it's kind of a reality right now facing almost every major tech player and apple is obviously top of the food chain. where apple has been more

insulated is they are the number one consumer of chips and they are going to get favorable treatment from their suppliers, especially taiwan semi in my conversations last night and some of the notes i've glanced over this morning, no one is worried over the long term maybe we see some of the iphones get pushed out of order like we saw last year but they're not facing a demand issue more importantly, it's more or less just a timing issue. for apple, people are picking a little bit at lingering supply constraints. no explicit guidance moving forward. overall, phenomenal quarter as you highlighted the major components of the beat >> let's move on alphabet and microsoft more than doubling easily beating forecast. revenue jumping 62% with the company generating 50 billion in ad sales, up nearly 70% from a year ago the stock higher in extended trading and is up more than 50%.

microsoft's fourth quarter profit rising 47% with stocks topping 46 billion the company's cloud business azure saw sales growth of 51%. the stock initially falling after the results but headed higher after microsoft says it expects that growth to continue. let's go back one, joel, if you don't mind let's talk about alphabet. ad sales are obviously a big part youtube, something that's a business within a business, a big part of the company. what was your take on what you saw there? >> yeah. i mean, alphabet, it still remains my favorite large cap growth for continued youtube momentum, explosive dij at that time ad results and continued focus. you hit the nail on the head youtube growth is phenomenal talk about a unit that continues to benefit from the secular shift from linear tv to online video and streaming. that trend is not slowing any time soon. youtube growth was 70% and,

again, they're just explosive results in terms of on the digital advertising front as well there's nothing to pick out in alphabet i think you could argue going back on the multi-year basis alphabet has been the most under weight amongst the fang networks this year you're starting to see an investor base continue to warm up to the story even more i think this is a stock that continues to work and hands down the best brand in tech i think we've seen up to this point in the earnings season. you're going to see a material up side to consensus estimates >> one more question about alphabet and youtube growth. something i saw and it caught my attention from a personal note i look at youtube as a podcaster competing with spotify, a music site is that potential for the site has that been priced in to alphabet >> to some degree. right now they have so many different big parts of the business that seem to all be firing on all cylinders which

makes some of the parts thesis still relatively under valued. youtube, they have a lot of runway ahead of them they continue to innovate and keep up with times despite competitors that have entered the streaming world in the past five plus years. it seems it's the top of the chain and will continue to attract massive advertising dollars. until you see a shift where maybe the growth is decelerating they put a high pop in growth quarter after quarter as they continue to innovate. >> one more tech giant to get to facebook reports second quarter numbers after the close today. profit is forecast to grow roughly 70% to $8.8 billion. revenue is expected to rise 50% to 28 billion and facebook's monthly active user base is expected to grow more than 7% to $2.9 billion the street is looking for a substantial beat and bullish guidance as they face antitrust

and misinformation it may feel the effects on ad tracking what's your take on the potential for that 7% user growth with so much competition out there for just eyeballs and the digital space? >> i think with facebook it's similar to apple, microsoft. all of the megacaps. to me, positioning is the number one issue for a lot of these stocks u.s. tech has become a lot more crowded over the last couple of days because of snap's blowout results last thursday. they continue to benefit from the china implosion that's been underway for facebook, we know the business is performing well. we heard that from alphabet, snap chat and twitter up to this point. the key for facebook, what you want to be watching is our commentary on the second half. they have been cautious on revenue decelerating because of apple i0s changes on the ad front and that's going to be the key they've been very cautious in not trying to get investors too worked up that they expect revenue to decelerate in the

second half. that's where the stock is going to work. if they continue being relatively cautious here in year end in the back half, i think the stock you'll see a little bit of travel like we're seeing with apple right now fundamentals are phenomenal. i don't think you can argue the growth scale and margin in a lot of these companies positioning is an issue. look for the second half commentary on the business but the quarter's going to be phenomenal. >> one more quick question before we let you go speaking of crowded trades is that money going into u.s. megacap tech names will it continue to go into those names as the chinese crackdown continues? >> yeah. 100% you pull the holders list whether it's tencent, vaidu, some of the names that have gotten carried out to the wood schett these are all western companies. risk controls have been put in

place aggressively over the past week or so and what do you do? you sell vaidu, you wake up and there's large cap names. yesterday was the first sign i've seen where that process is winding down which could be a near term for the big cap tech stocks it is somewhat limited that process will work itself out over the medium long term. yeah, that's another issue on the positioning front. a lot of that chinese tech money had been forced into the fang complex. >> joe kalina, we appreciate the insight. coming up on "worldwide exchange," robin hood set to tech the test the ipo market

mattel up 3 cents per share and revenue over $1 billion. different story for teladoc. the company posting a wider than expected net loss. shares of mondelez have rising costs. we'll be back in a moment. i'm still 35. that's why i take osteo bi-flex to keep my moving the way i was made to. it nourishes and strengthens my joints for the long term. osteo bi-flex. find our coupon in sunday's paper. ♪ osteo bi-flex. someone once told me, that i should get used to people staring. so i did. it's okay, you can stare.

when you're a two-time gold medalist, it comes with the territory. sales are down from last quarter but we are hoping things will pick up by q3. yeah...uh... doug? sorry about that. umm... what...its...um... you alright? [sigh] [ding] never settle with power e*trade. it has powerful, easy-to-use tools to help you find opportunities, 24/7 support when you need answers plus some of the lowest options and futures contract prices around. don't get mad. get e*trade and start trading today. (sound of people returning to the workplace) (sound of a busy office) (phones ringing, people talking, meeting) the company we've trusted to keep us working remotely, is the same company we'll trust to bring us back together. safely. securely. and responsibly.

so now, between all apart and all together, there's a bridge. cisco. the bridge to possible. i'm dad's greatest sandcastle - and greatest memory! but even i'm not as memorable as eating turkey hill chocolate peanut butter cup ice cream with real cocoa. well, that's the way the sandcastle crumbles. you can't beat turkey hill memories. i'm 53, but in my mind i'm still 35. that's why i take osteo bi-flex to keep my moving the way i was made to. it nourishes and strengthens my joints for the long term. osteo bi-flex. find our coupon in sunday's paper.

welcome back shares of duolingo expected to start trading today. the company has priced the ipo at $102 per share up from 85 to $95 a share. that gives the language learning app roughly a $3.75 billion valuation. the company will trade on the nasdaq we're watching robinhood with the ipo set to price later today with the expectation of a $35 billion valuation. ahead of that, several reports revealing the company has received inquiries from u.s. regulators about whether employees traded gamestop and ipo shares before they publicly announced they were restricting trades in those. they have mounting worried about this and other ipos. leslie picker joins us with this

and more on that. >> reporter: good morning, frank. so with ipos, this year bigger isn't always better, at least when it comes to this year's crop of ipos tomorrow we'll find out if robinhood, which is expected to raise $2.2 billion at the midpoint of the market range faces a similar fate here's the performance since the debut of six ipos this year that raised more than $2 billion in the u.s. didi has performed the worst but you look at coupang, bumble, sholes, all down the renaissance ipo down more than 5% and lower by 19% from the february highs to investors in these deals and potentially others, it may signal that the market is having a hard time digesting the deals and it may deter the investors

from buying more ipos if they're underwater from other ones there's an enormous glut and it's the biggest in 16 years many of which show the market shrinking. now they're reversed robinhood, a trading app, has a different business model to the bigger ipos which were in ecommerce, ride hailing. robinhood is selling up to 35% offering to retail investors who were likely to get access to these larger deals we'll see if robinhood can break the 2021 curse that has befallen some of the multi-billion dollar deals. >> the numbers you just showed, it looks like something is going on in 2021 some of those stocks obviously foreign stocks as you mentioned, idiosyncratic risks there. my question to you, what are the biggest risks for robb bin

robinhood going forward. the recovery, is that a risk because we won't all be at home looking for something to do like trading stocks >> yeah. i think the market is trying to figure that out, frank this idea that obviously robinhood saw such a boom from people staying home, working from home. they've got a lot of extra time on their hands what do they do? they get involved with investing in stocks. they keep track of these meme stocks as we mentioned does that change as people go back into the office, have social lives once again? does the variant provide maybe even a tail wind for robinhood because it would potentially have people a little bit more of that shelter in place mentality, stay at home and trade that's the key question. it's interesting you look at analyst reports and they say flat out this is a really difficult company to model. its revenue potential and forecasts are kind of up in the air right now because people just don't really know so you talk to investors and

that is one of the big challenges as far as the risk, regulatory front and center, obviously they cover a lot of new ground as it pertains to a fintech company. something like that is a headline risk. >> leslie picker, we know you're going to be all over this ipo and a lot of other stuff with your delivering alpha newsletter we appreciate it as always robinhood is a five time cnbc disruptor the disruptor 50 that topped this year's list ceo vlad tenev is one of the speakers of the disruptor 50 summit you can register at cnbcevents.com. john najarian is on. he's there to lay out the stocks he's seen action in. if you haven't already, follow our podcast. check us out on apple, spotify or oerth podcast apps.

we will be right back. the number one brand to support beautiful hair, glowing skin, and healthy nails. and introducing jelly beans with two times more biotin. i'm evie's best camper badge. but even i'm not as memorable as eating 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. ♪♪ it was my dream to be an entrepreneur based upon the examples that i had growing up. and that was important for me because you can't be what you can't see. the ey entrepreneurs access network has a tremendous impact on my business and other african american and latino entrepreneurs across this country because they give access to networks, business opportunities and capital.

ready to shine from the inside out? try nature's bounty hair, skin and nails gummies. because they give access to networks, the number one brand to support beautiful hair, glowing skin, and healthy nails. and introducing jelly beans with two times more biotin. if you're 55 and up, t-mobile has plans built just for you. switch now and get 2 unlimited lines and 2 free smartphones. and now get netflix on us. it's all included with 2 lines for only $70 bucks! only at t-mobile.

welcome back markets back to record highs trying to hold on to record gains. investors brace for the conclusion of the fed's two-day policy meeting for much more on all of this, let's bring in jon najarian. the coolest guy on wall street i'm going to come out and say it thanks for being there. >> oh, please, frank you're the coolest guy on wall street thank you very much. >> we have to table this mutual admiration society for a minute. let's start off with the stories. you've been tracking this since a couple of weeks ago. what's your take on the price action we've seen? >> well, from the beginning of july as you say, frank, we've seen big speculation in the put options, which is of course a bet that it goes down.

those bets have paid off big time because both of those, the kwe -- the kweb and the fxi both just traded to new 52-week lows yesterday. like you say, we're finally seeing a little speculation come in that maybe they see a bounce here because china might actually stop hurting its own stocks, its own companies by some of the actions that it's taken. a little bit of a rebound and maybe time for people to take a little anybody on some of these stocks you mentioned dd already with leslie, but i think that along with some of the even for profit education that has been told by china they can't be for profit, i think some of those after a 70% route, that might be time to particular a little shot. >> turning our attention back to the u.s. teladoc shares hurting this

morning. down more than 7%. earnings just did not agree with wall street. or the estimates people have for the company. you've been tracking this since last thursday when you saw an uptick in puts can you break that down for us >> yeah. just like with kweb or the fxi, last thursday a week ahead of the earnings really somebody came in with stocks at about $155 they were buying them at big numbers. 10 times the interest traded along, frank they didn't liquidate any of them i imagine they'll liquidate a lot of those now the puts $5 in the money are now some $27 in the money as teladock gets whacked this morning. >> jon, i call you the big dog now. we're talking about the big dog of social media. facebook what are you seeing on the options market when it comes to facebook ahead of its earnings

today? >> all right the numbers are out there as far as, okay, maybe revenue of $28 billion, perhaps a profit of over $8.8 billion and nearly half the planet being monthly active users you know, just crazy numbers there is still great up side speculation. the opposite of what we had talked about with the teladoc. they're buying the $3.80 that expire this friday in big numbers. 10,000 options were bought ten days ago that's a million share equivalent of the stock. with the stock at $360, that's a $360 million bet that we go higher i think we're going to see some great numbers out of facebook and right now the straddle, the combination of the call and the put is showing us a 5% move is projected based on those two

directions, up or down and i think it's going to be up and through 3.80 on this move. >> we appreciate the insight i'll be as cool as you when they let me come on tv with that many buttons undone. >> thank you, frank. "squawk box" is coming up xt that calms you helps you fall a sleep faster and stay a sleep longer. great sleep comes naturally with sleep 3 only from nature's bounty if you're 55 and up, t-mobile has plans built just for you. switch now and get 2 unlimited lines and 2 free smartphones. and stay a sleep longer. great sleep comes naturally and now get netflix on us. it's all included with 2 lines for only $70 bucks! only at t-mobile.

good morning today's top story, earnings and more earnings. big tech dominating the conversation. a developing story, the cdc updating mask guidance for vaccinated individuals while the biden administration considers vaccine mandates for some workers. dr. scott gottleib will be here and our special guest. going public, robinhood expected to press its ipo.

it's wednesday, july 28th, 2021, "squawk box" begins right now. good morning welcome to "squawk box" right here on cnbc i'm andrew ross sorkin along with joe kernen and morgan brennan in for becky quick this week take a look at u.s. equity futures this hour. we have a slew of earnings reports. they're going to be impacting all of this. we have the s&p 500 looking like it will open up 10 points higher the dow will open up marginally higher, four points. the nasdaq up 41 points. we'll explain why, i think, in just a moment. the treasury yields right now, the 10-year note, sort of all-important number we've been looking at for a while, 1.258. then there i