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 is crypto which has

been moving around a lot so let's show you where things stand right there now. bitcoin flirting once again with 40,000 at $39,870. ether is also up as well, morgan. >> yeah. earnings as you just mentioned, andrew, once again dominate today's trading session. before the bell we are going to hear from boeing, mcdonald's, pfizer this afternoon facebook will be the big one to watch as you can see right there, there's no shortage of names to hone inon. three big tech stocks making headlines, apple, alphabet and microsoft. they reported after the bell last night let's get a check on those stocks apple posting better than expected earnings. revenue and iphone sales tim cook saw the very strong double digit increases in iphone upgraders and switchers during the quarter. the shares are down about 1% pre-market though. google parent beating the street on the top and bottom lines as well advertising revenue rose 69%

from last year those shares are up nearly 4% right now. microsoft earnings also topping expectations notice a trend here? the company's revenue from device makers from windows fell. cloud growth with their shares turning higher >> gamers. some gamers finally left the house. starbucks reported and there are other stocks to watch. earnings and revenue beat the street but the coffee chain's warning of a slower recovery in china. its second largest market right now. amd issuing third quarter sales guidance the chip maker says third quarter sales will come in around $4.1 billion. analysts looking for a number closer to 3.8 billion. amd raising the outlook. now expects sales to jump 60% compared to an earlier forecast

of 60% the ceo mof starbucks and amd will join "squawk on the street." we have olympic news simone biles now withdrawing from the individual all around competition, quote, in order to focus on her mental health the world's most acclaimed gymnast shocking the sports world yesterday when she removed herself from the team final after appearing to lose her focus. biles said she wasn't mentally ready to finish that event the individual all around competition was set for tomorrow u.s.a. gymnastics said biles will be evaluated before deciding whether to compete in next week's events disappointment in many ways but also raising issues around mental health that we've all been talking about, both in the sports recently and other places in recent months meantime, when we come back on the other side of this break, so much coming up on the show. what investors should make of

all of the earnings reports we were talking about later on "squawk," one hour, two newsmakers you do not want to miss this senator elizabeth warren is going to be with us and billionaire investor ken langone. both will join us at 8 a.m. eastern time you don't want to miss one second of it stay tuned, you're watching "squawk" on cnbc ained an edge on our bake sales. we need more ways of connecting with customers, fast. i know some consultants with great ideas. can they help us improve our digital experience? absolutely. they've invested over $2 billion in tech. that could really help us manage inventory. and save us a ton of dough. then let's take back our market share. checkmate, chess heads. girls, i said “bedtime”!

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welcome back to "squawk box. the dow and s&p are both indicated higher 9 on the s&p and 9 on the dow. nasdaq is strong tech earnings. looks like a lot of mornings front page of the journal this morning. this person did a good job, karen. stocks keep climbing avoiding routine pull backs here's a couple of facts there hasn't been a 5% pull back since october. since that time the s&p has advanced 35% ding, ding, ding, ding, ding, 35%. that is unbelievable last time the index enjoyed such a respite without a pull back was june of '16 to february and she points out there have been a couple of areas percolating. atz investors are grappling with the risk of a highly contagious

variant of covid-19 and the idea that the fed could dial back that sums up, i think, everything right there we don't even have to talk -- we don't even have to finish this show except until 8:00 when we have the elizabeth warren/ken langone. no, we're going to keep going. let's look at s&p winners. that might put a little bit of meat on the bone alphabet, wow. maybe split? what do you want to do with that, 2740 citizens financial, boost in guidance las vegas sands up and mgm, which is kind of interesting given that we don't know what the future looks like. more masking i guess we'll be masking in casinos again. >> there's a lot of focus on that in asia >> and then some laggards, juniper, enphase, terra dine and

starbucks and expedia. >> starbucks, china the outlook there. key reason for the pressure in that stock post earnings last night too. apple, microsoft, alphabet all reported yesterday after the bell they reported strong numbers we're seeing mixed reactions as you got a little preview of there from joe joining us on how to play these big tech names and the trades there, stephanie link, chief investment strategist at hightower and greg branch at veritas. greg, i'll start with you. given the fact we did get reports from three of the five largest megacap tech names, your take aways perhaps not surprising to see huge earnings beats and strong revenue growth. what does the future hold? how is that affecting the stocks right now? >> yeah, it was not surprising we expected to see strong second quarters in fact, i expect to see strong

third quarters what it does -- what it's collectively done, i think, is put to rest the narrative that what we saw last year and the last couple of quarters was covid bump or covid pull through. in fact, when you take them together we see that we are in a very strong it spending cycle. we see we are in a strong transition to cloud sick cycle we are in a strong digital cycle. even where i was looking for something to quibble with on margins where i thought they might be reinvesting in head count, they surprise on the up side even there with some pushing out like google who said the margins would come in. microsoft surprisingly saying there's even more leverage so very little to quibble with at the top end digital advertising, cloud all having strong secular tail

winds. the one i have concern with is apple. >> yeah. >> we saw growth in china decelerate there we also may see some asps coming down. >> yeah, i want to get to that more stephanie, i want to get your thoughts on the numbers we've gotten the idea that the stay at home trade, maybe it has more legs even as we potentially come out of this pandemic do you agree >> yeah. clearly these numbers are just blow away across the board i think that alphabet is the most impressive in that operating leverage was so substantial. they had the best operating margin since 2012 with the first quarter. while i'm happy to see 62% revenue growth and search up 62%, cloud up 54%, it's the margins that matter. this has been the issue for alphabet over many, many years they couldn't get the operating

leverage very exciting news even though the stock is up 55%. i clearly woessner vows headed into the quarter just given the rise that it's had this one very impressive with apple, it's very much intact and the total revenue i know the stock is down a little bit because services, they're saying is not sustainable at 33% but i'll take 20% any day in terms of services that's a sustainable number for the long term. i think apple pauses google can continue to ride higher, i just think those are the two that i like. i prefer it over microsoft. >> greg, one of the other things i've seen pointed to for the pressure of apple shares pre-market is it didn't issue guidance how do you dig through whether it's these three companies we're talking about now or other names

in tech or other industries. how do you dig through and decipher how important the guidance is versus the numbers we're getting for the quarter, especially about whether there's' debate of peak earnings >> in apple's case, they got into it enough when they talked about the growth decelerating from what we saw in this quarter. that's one of the reasons you're seeing weakness. other than on the margins, i tonight think we saw anything that surprised us. you know, i was above consensus and you know i've been saying for a while that consensus was underestimating the earnings power of these companies but, you know, when we have margin guidance that -- or at least growth guidance that is counter to what we're seeing now, albeit some of that on component shortages, not necessarily anything businesses control, there were some other items of concern there what we're looking for is secular stories here

i think these companies are showing with a magnitude of the beats. the strength that it can continue over the quarters and there's real secular tail winds here >> stephanie, this stat that the five big tech stocks, apple, microsoft, alphabet, amazon and facebook now comprise 23% of the s&p 500. is this the place investors really need to continue to be right now? are there other opportunities as we see the major averages hovering record highs? >> i think you want some exposure apple in my benchmark is 6%. you have to be careful, right? that's a big percentage if you only have, like i do, 44 names in my portfolio. i think you definitely want some of these companies with the secular tail winds higher in terms of digital advertising, travel surge, 5g you want to pick your spots.

like i said, if apple pauses for a while, maybe that becomes more interesting because numbers are going higher oh, by the way, they generate -- they generated 19 billion in free cash flow in the quarter. they have $72 billion, in fact $23 billion. stephanie, i know you'll join us again later in this hour as we get more earnings news this morning coming up, could be the most anticipated ipo of the year. robinhood set to press tonight we'll talk about expectations. ♪ ♪ 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.

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welcome back to "squawk box" this morning we've got some ipo news for you. duolingo is going to be debuting on wall street they set the language learning app's value at $3.4 billion. the company is a three-time cnbc disruptor. i could use a little duolingo. english is tough for me. meantime, shares of robinhood's highly anticipated ipo expected to be priced tonight. as we look ahead to the price, you want to talk to leslie picker because she's talking about the marketing range with some of its peers. is it -- is its marking valuation the right one? >> reporter: that's the key question, andrew we like to look at these things. is it coming out at a discount to peers is it coming out at a premium?

are you getting a bargain or are you paying up? the answer depends on the multiple you use when you're trying to calculate this map a common metric in the brokerage space is how much a company is valued as to the number of accounts on a price per account basis. robinhood looks cheap at 13.50 relative to etrade when it was acquired by morgan stanley and t.d. ameritrade. logically, that makes sense as an analyst of mkm put it because robinhood's account sizes are lower than its peers what about traditional financial multiples? enterprise value to ebitda take schwab again, for example, trading around 6.7 times estimated 2022 sales robinhood's ipo pegs that 10.5 times. the art of course is always choosing which companies to

compare it to. now i've spoken with several investors who are taking pause from the valuation risk as well as regulatory concerns yesterday the company revealing in a filing it's the subject of more probes, this time regarding fin ra licensing of key executives including ceo vlad tenev. the sec is looking at whether employees traded meme stocks before they restricted certain names in late january. guys. >> leslie, what do you make of the report of that -- that vlad doesn't have the right license is that something that anyone needs to worry about >> that was the fin ra licensing concerns finra slapped robinhood with a $70 million fine finra is something you see with people who are managing other people's money the reason you would be finra licensed, people can keep track

of any blemishes on your record, any type of, you know, running afoul of certain rules and regulations that finra requires brokers to abide by. so the fact that vlad tenev and other executives at robinhood aren't really registered depends on what their day-to-day operations are how involved are they in advising people to make money. other brokerage firm members are not registered so i think the key question comes down to how involved they are. you know, they say that they're taking all measures to comply so we'll see if that ultimately leads to them being registered. >> and finally -- >> or licensed they are registered. licensed. >> what are you hearing from the institutional investor class whether they want into this? do you think we'll see a nice print tonight? >> reporter: i honestly don't know, andrew

i'm getting really, really mixed reads from people. i have some people that say this is a very special asset. they kind of tap into this regional investor mind set doing something unique here. amazing growth numbers a lot of people i talk to say there are some significant risks here all six ipos over $2 billion that have gone public in 2021 are in the red clearly the market is not absorbing big deals well then you add on the potential valuation. i'm going to sit this out and see how the ipo does there's 35% going to retail so the actual size of the flow that institutional investors are buying into are smaller than your typical deal. there are a bunch of question marks. people are expecting volatility. whether that shows up on the up side or down side, i guess we'll find out tomorrow and in the days to come. >> leslie picker, thanks for

helping sort some of this out for us we will see what happens this evening and morgan will have a huge show tomorrow morning because the ipo will be upon us. >> looking forward to that coming up, dr. scott gottleib on the cdc's new mask guidelines and also a debate about mandating vaccines. later, check out this all-star guest lineup. mike novogratz talking cryptos tony saganaki and two huge newsmakers, elizabeth warren and ken langone. as we head to break, let's take a look at yesterday's s&p 500 winners and losers

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good morning we're going to check on futures right now at this hour it's basically -- it's a little bit of a mixed picture right now as it stands we're poised to open basically flat for the s&p. the dow poised to open down 47 points and the nasdaq up about 13 earnings very much in focus after those big cap tech names last night more names including two dow components this morning and then of course the fact that it is fed day and all eyes will be on federal -- it's very early, on fed officials this afternoon when we get the powell conference of course any guidance on monetary policy. >> when you said all eyes and it is a false statement. >> it's a false statement. >> my eyes are not going to be on the fed andrew, are your eyes going to be on the fed? maybe one eye? >> my eyes are on this covid

news right now. >> okay. >> but we'll be on the fed as well it's early in the morning. >> you think all eyes are going to be on the fed that's not true. that is not true in the country i would say no more than 5%. >> investor's standpoint though. we do cnbc stocks. very narrow trading range. >> steve liesman's eyes will be on the fed. >> steve liesman's eyes will be on the fed. >> steve liesman's eyes will be on the fed. >> we should say that. the other networks should say that that is true that is a factual statement. >> but i think a lot -- i think a lot of eyes will be on the covid news so let's talk about that for a moment. because the cnbc now saying fully vaccinated individuals should wear masks inside in certain areas of the country where there's substantial or higher levels of virus transmission cdc director saying people may be able to transmit the virus. she stressed the vast majority

of cases are from those that are unvaccinated the cdc saying all students, teachers and staff should wear a mask at school this is regardless of their vaccination status meantime, president biden says its administration is considering a covid-19 vaccine mandate for all federal employees. comments coming after partner of veterans affairs required it and said it will be requiring its medical affairs being vaccinated dr. scott gottleib, former fda commissioner, cnbc contributor he serves on the boards of pfizer and i will lumen na doctor, it feels like over the past 24, 48, 72 hours things have shifted, at least our understanding has shifted. the thing that struck me most was the comment from the cnbc director effectively suggesting that they believe if there's a break through infection in somebody who's vaccinated that

they have as much of the virus in them and the ability to shed it and therefore share it with others as somebody who's unvaccinated >> well, look, i don't think things have shifted. i think they've gotten more confusing for the average consumer because of the shifting advice from cdc. the bottom line is and we've said on this show many times, the vaccine doesn't make you impervious to the infection. there are some people developing mild symptoms after vaccination. if you live in a high prevalence area if you are taking care of young children or other people who are vulnerable, you should be mindful if you are vaccinated there is a risk you could contract it. you could develop high viral levels earlier in the course of the infection. whether or not that should then translate into general guidance for the entire population that if you're vaccinated you should

wear a mask, i don't think that's the case. i don't think we're going to get enough bang for our buck to make it worth while i think we're further into the delta wave than we're picking up i think in another two or three weeks we'll be through this. this new guidance will have a negligible effect. if you think you might have the virus because you have mild symptoms of it, be prudent get tested, maybe wear a mask especially if you're around a vulnerable person. that should be the bottom line guidance we give cdc is having trouble measuring this. >> doctor, you made a comment a couple of days ago on this show about masks themselves and how protective they can be given just how virulent this strain of the virus appears to be. you know, if we all go back to m masking, let's talk about what

that means are we supposed to be wearing -- can we wear the old cotton mask? does the medical grade mask work are we talking about a k-95? are we talking about an n-95 >> the physical properties of the virus as best we know haven't changed. the reason this delta strain is more transmissible is there's more of it you develop more in the beginning of it. if you wanted to derive protection if you as an individual want to protect yourself, mask quality does matter. wearing a higherquality is going to afford you more protection in a setting of a more transmissible strain you need to be mindful if all you're doing is wearing a cloth mask or procedure mask, you'll cut down on the propensity of you to spread the virus to others. you'll reduce the risk of spreading to others if you don't know you're infected if you want to derive protection from other people being infected

around you, mask probably does matter people should look for higher quality of masks there's ample supply in the beginning of the epidemic we didn't have enough n-95 now we do. people can go out and get them. >> doctor, be happy you're not at the fda anymore when you lose the journal op ed pages, you've lost everyone. there's a scathing article about this hasn't been proved yet -- fully approved by the fda. the journal points out there's more data now, more safety data about these vaccines than almost any previous vaccine that has received full approval they did an expedited for pfizer they haven't even done that for moderna yet so it could be another -- it could be ten months but maybe it's down to six. so i understand that the fda in normal circumstances shouldn't succumb to pressure, but in this case it's just bureaucracy it's just -- once again,

bureaucracy. the journal ends saying if the government believes the vaccination is as urgent as it claims, it ought to behave like it with its own procedures how many more people would have it right now if it was full approval here we are going into what might be, i don't know what wave it is, but a delta wave getting masks again and it's not fully approved you were there do you talk to people? it's inexcusable. >> well, look, i think the bottom line is the fda has not had these applications that long >> why not >> they submitted theirs in may and moderna at some point in june they've only submitted them for three months and they've been submitting more information. pfizer only fully submitted the application complete three weeks ago. they were submitting supplements. a lot of the review is on the cmc. looking at how the vaccine could be stored in normal supply chain once it gets fully approved

because it will be sitting in doctor's offices and pharmacies. you have to put a lot of information and labeling and how long it could be stored. i would expect they could be approved very soon in fairness to the aekt si, they have not had them very long. >> we dolled out millions and millions and millions of the vaccines what do you think -- where do you think we would be in terms of the total population if -- do you think it will make a difference, in other words do you think people will say, now i feel better? it doesn't even matter >> look, i believe on a margin of once this is fully approved you're going to see more businesses stepping in to mandate them probably some people will derive more comfort i don't think this is the game changer. i think in fairness to the agency, quite frankly they have not had the applications they're going to be authorized and approved i always thought it would be a three or four-month time frame which is exceedingly fast. i think that time frame still

holds. the far bigger challenge we hold is we're not doing a good job of measuring of the scope of the spread, how it's occurring, where it's occurring, the social departments and where it's occurring. that really falls on cdc we're not doing a good job of tracking out-patient infections right now. cdc isn't tracking out-patient infections among vaccinated individuals. giving guidance on what they should and shouldn't be doing is difficult in the absence of bottom line information. >> dr. gottleib, that is why i was going there with you why aren't they doing better tracking if you're following science and following people that are hesitant to get a vaccine right now or confused perhaps because there has been a lot of back and forth information over the past year plus around covid, why aren't they doing more to collect that data and make it more clear >> well, cdc has a retrospective mind set they don't do good perspective

data collection and real-time actionable information change. the 2017-2018 flu season, i was at fda we were concerned. i wanted to put out a public health advisory saying that the vaccine wasn't working that well the cdc blocked me from putting out that advisory. they went to the secretary's office to say only they speak about the flu, not fda they're not prepared to say anything they haven't drawn out any conclusions. i put out the advisory as an update i regulated as fda, the vaccine. cdc put out something six months later observing that it had been an unusually bad season and 80,000 americans had died but in that analysis i think their confidence fwrent 50,000 to 110,000 because the actual number of americans who get flu each year and die each year, cdc doesn't track that

the confidence was very wide in the 2018, 2019 flu season they said 97,000 people between the age of 50 and 60 were hospitalized for flu but the confidence around that number was around 120,000 so i think around 70,000. again, because they derived it they don't actually measure it do this modeling, they do very good work retrospectively. they'll come out with a very good analysis of this delta wave, who is getting infected and how probably in four months, maybe a little bit longer than that they don't have good real time reporting we need to fix this. this can be fixed. we can build out better capabilities. >> i want to go back to the shift from emergency use authorization to full approval for the vaccines how quickly in the past has that process taken and how does this stack up so far? >> well, typically longer than it's going to take in this case.

we don't have a situation where something's been authorized under an eua and this is widely used if the fda ends up issuing a full approval within a three or four-month time frame, i think that's really fast i think that's very efficient especially considering the information has been accruing to the agency in a real-time fashion. it's not like the applications were fully complete four months ago, submitted to the agency and they've been evaluating a complete application four months they've been getting new information on a weekly basis that they've been evaluating they're going to approve a lot of this. i felt it would be a three or four-month time frame and we're coming up on that. >> scott, a lot of business leaders are trying to figure out whether they should reopen their offices, whether they should mandate masks, whether they should mandate the vaccine whether testing is going to be enough, whether they need to put testing on top of people -- on top of requiring the

vaccination. if you were running a company today knowing what you know both about the legal issues, which is to say i think there's a lot of ceos that are scared about what steps they should be taking, whether they're going to get sued or whether there's going to be a revolt by workers or all sorts of things like that, what would you be doing >> i think a lot of people are getting tired of the waves of infection and how intrusive they are to our lives, business, normal commercial activity, to our personal activity. i think you're going to see federal agencies doing and municipalities doing it. the city of new york and health care institutions doing it that's going to lead the way i think businesses are going to start to do this in my private discussion with business leaders, i know businesses are contemplating vaccine mandates. >> by the way, will that be enough the other component part of this is we're seeing in israel and other places where so much of the population is vaccinated

that it's still spreading. >> look, this will continue to spread coronavirus is now a fact of life this is going to become an endemic illness. we'll have waves of illness. once you have a good portion of population vaccinated or with natural immunity, the overall impact of this is going to be dramatically reduced this is going to be like the second flu we're going to have to learn to live with it as part of our everyday lives. >> okay. dr. scott gottleib, thank you. as always. we've got a lot more coming up on the programming this morning. pfizer will bring you those numbers and instant analysis after this i think you're going to like it here. umm, why is everyone... throwing things at me? look, as cfo it's my job to be ready for whatever's next.

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pfizer makes 3 billion doses and plans to make that many. we could see the 33.5 billion going higher we've also got some information about the vaccine, the planned timing for data is, they say, by the end of september they should have enough data on 5 to 11-year-olds for the vaccine to potentially submit for emergency use authorization. they want to submit for approval they expect to have that by the end of the year, shortly thereafter for younger kids. they're also including new data on their original vaccine, a third dose against the delta variant looking at antibody levels they see they go up five times

in younger people and 11 times in younger people when you give the third dose against delta that's new information looks like third dose does boost antibody levels. there are new data about the covid antiviral drug expecting data on the oral by the end of the year potentially. we'll continue to dig through and bring more pfizer is up 3/4 of a percent on the beat guys >> year to date chart. looks okay but three-year chart, nothing special at all that just shows you the covid vaccine is important to pfizer but they've got other things they have other drugs and they have other r&d going on and important clinical trials for drugs to replace ones that are going off patent as opposed to something like moderna, the chart would look really different because moderna, what the vaccine meant to moderna is,

you know, exponentially more than what it meant to pfizer what about the rest of the business, meg. when things were shut down, did other things get ignored how was sales growth and their other key products >> there have been a lot of questions about that for pfizer. they are still growing the rest of the business alongside the covid-19 vaccine that looks good. they raised the forecast for the other products as well not by as much as they did for the vaccine, but you're kind of looking at what gilead faced with the hepatitis c drug. some of the biggest products but not being able to model what the feature looks like and that's been the challenge of pfizer in that space. >> doesn't look quite as -- all of the -- the stigma for selling at any time when you're a ceo, but he sold i think -- he sold right around here a lot of it, around 40 or 41.

right? you remember he made a big deal out of it and stefan looks like he might as well have shorted moderna he sold at 70. 70 and 80, i think remember on one of the -- >> there were a lot of stock sales, especially from the moderna executives, yes. the one i remember from the the one i remember from the pfizer ceo sofi is a one-stop shop for your finances designed to work better together. and earn cash back rewards, all in one app. that's how you get your money right with sofi.

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welcome back the fed will wrap up a two-day meeting. a look at what investors should be watching as at least some eyes will be on the fed. steve. >> yes a great majority of eyes for investors. three key features navigating reopening the economy. the three issues, the delta variant. inflation. the last testimony powell really put it on the clock said this is temporary for about six months the taper awaits the substantial process and could await more beginning the serious discussion and could be a lively discussion why? because the divisions could

develop with some officials clearly wanting to move faster others thinking the inflationary move providing markets with plenty of warning before it acts before the cnbc fed survey that holds for today. november is when they expect the fed to announce the taper. it will begin in january with about $20 billion average monthly decline in security purchases. that first hike of october 2022. fully priced in in the future markets. relatively high stock prices low bond yields. it looks likely to use that time while some think that's a mistake. they are in no hur why i to change the course and that's unlikely to change today

we do start to see a flushing out of the time line over the coming years >> we are going to try today from the press corps standpoint. right now, powell has a lot of time to fill here. if he doesn't want to taper before the beginning of next year or later next year, he's got to kind of play for time and be ob cure of exactly what the criteria is. what i think he'll say is pretty up beat on the economy but also concerned about the inflation to the extent he'll play for the time to get the committee to september or october until he makes the financial decision on that >> we'll be watching this afternoon and watching your questions. >> you be watching for me. >> can i count baseball at 1:00

p.m. today will you watch for me so my eyes don't have to be on that >> joe, that's my reason for being. i watch so you don't have to four hours of testimony. six hours of testimony just call me >> send me a text if you see anything i need to be aware of >> otherwise, you go have fun. i watch so you don't have to >> this is a great relationship. see, morgan how that works you can watch too. you'll be on >> no. i'll be watching my eyes will be watching >> okay. >> let's go to break coming up quarterly results from mcdonalds. we'll bring you thenumbers and billionaire investor on this week's wild swings in crypto stay tuned e world needs lower cn solutions to keep up.

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big tech takes center stage. apple, microsoft and others. crypto recovery.

the latest for the move on course for the longest winning streak this year plus home depot easy ken langone on taxes and the delta variant more right now >> good morning. morgan is in for becky quick today. so much with pfizer news that has just come out. u.s. equity futures at this hour we have the dow in the red nasdaq 22 points higher. s&p 500 up about 12 points we'll get more throughout the week we have a huge lineup this

morning as we head towards the opening bell joining us bitcoin flirting with 40,000, now over 40,000. we'll talk tech earnings and ted langone will be here and leading up to our interview with senator elizabeth warren >> it is like two magnets. what happens when they meet, does the universe end? >> we don't know >> mcdonalds reporting results let's get to kate rogers hi, kate >> hey, joe. good morning a strong second quart with beats

on the top and bottom lines. eps coming in at $2.37 $5.89 billion. better than 24.1% projected on a two-year basis up 14.9%. higher than prepandemic levels benefitting from strong average check growth, order eyes and price hikes. crispy chicken sandwich and orders promotion, growth with delivery did boost those comps increasing 40.5% better than the 38.9 on a two-year basis those up 6.6% those comps up 6.5%. a strong beat and international developmental license mark 32.3%

driven by china, japan and brazil reporting $8 billion sales across top six markets more than $22 million active app users. it will be moving to bring that loyalty program to other top markets. this week, the company named a chief customer officer to enhance the experience overall saying, quote, the next chapter will be driven by our leadership something seen across the fast food space over to you. >> they have not reinvented fast food they do have the crispy chicken sandwich >> that's everything you've seen these chicken wars red lobster has one now. and chicken prices are exploding

too. i wonder how sustainable that is >> i notice and i have a lot of experience with mcdonalds. you can be a line and i'm still out. there is a line and i'm done in a minute and a half. sometimes they have a person out there taking your order. by the time i pay and get to the window, it is all there and hot and ready to go. that was new and from a couple of years ago 90% of the times that the experience that's not new food. that's just being really good. >> that's the drive through. >> and enhancing the drive-thru experience is a huge part of their business shaving those times. of course digital and ordering ahead is part of that. the technology experience to keep customers like you happy and get you in and out quickly

>> chick-fil-a, they are the market leader. >> they are the best >> because of that sauce and the pickle >> i love the chick-fil-a. i got to tell you. there's nothing better >> the grilled nuggets i see those as zero calories >> the grilled nuggets are the best >> and they are like zero calories that's my story and i'm sticking to it. >> the fact that the chicken sandwich helped drive the report and seeing chicken prices on the rise and so many different players in this market more broadly with their own offerings i wonder how sustainable that is >> waiting for them to launch

and get right. it has boosted sales many price hikes did lead to that comp boost. they are hiking prices across the fast food space. the bts, k pop band they coupled with that led to a boost in chicken nugget sales because they were branded with bts they are really smart bringing in these celebrities and asking them what is your favorite order at mcdonalds a lot of times, it's the core menu item. >> kate, thank you for helping us with mcdonalds and the whole chicken debate >> i still love a chicken mcnugget thank you. we'll see you in a bill. we have some other headlines to bring you. apple shares moving lower this morning. providing better sales and

profit due to slowing revenue growth and the impact of the global chip shortage. the negative effect will worsen during the current quarter google's parent alphabet surging. quarterly earnings about $18.5 billion that has more than doubled from a year earlier. microsoft also doubled on the top and bottom lines thanks to significant growth in the cloud computing. microsoft has been one of the big beneficiaries that employees students operating from home >> do you remember the spicy chicken that people were getting in fights over >> popeys.

it's a great chicken sandwich. super tasty. we've done some taste tests in my house >> let's bring in -- >> chief investment strategist at high tower. are you long popeys? >> i am not. i am long mcdonalds and i thought this report was very, very solid >> there is a lot more to fast food than innovating what was the mcrib, it was poured into a mold like a slurry. you do what you do best and introduce morgan's crispy chicken and get results like this it is incredible

>> a while ago, they simplified their menu 75% in canada. 60% in the uk. that is really helping and that helped them in the covid-19 world. then you have delivery 75% system-wide sales. what you are talking about in terms of higher costs, i've got that that's helping them offset inflationary pressure. i want to hear what they have to say about just unit growth the numbers out there are about 1,300 new stores seeing the total system sales. these are questions on the conference call that will come up the comp number very strong. they have momentum right now >> when would you do a digital

unless it is a larger order. how do you pick it up? >> it is increasing the productivity. >> getting better productivity >> that's why they are able to produce solid margins in the face of the inflationary pressures. >> when they all sit around brainstorming at mcdonalds, what's next. how do they continue to innovate that yogurt apple stuff. people don't go to mcdonalds for that do you remember certain times in the company's history that are like really seminole moments

they took the transfat out of the french fry and no one else could do it. they nailed it the stocks started moving higher at that point. don't you think? >> you think the fries did it? >> i think that was a seminole moment in the company's history. >> they moved from the transfat to the vegetable fat you know those fries are just as good, are they not >> i believe they are the best fries out there. no competition in the sorkin family household just saying. >> you are taking notes. >> a lot of times, personal decisions. now i'm moving to pfizer how were pfizer results?

>> pfizer was very, very solid >> get your mind out of the gutter >> the personal experience, the peter lynch way of investing i agree with you on that >> pfizer was 47 in 1999 it is at 42. it's like a bond >> i know. well, that's not a bad thing these days with the 3.7% dividend yield look, it is up 14% this year better than the 6% they did a year ago some of those key products up

13%. that's what you want to see. we don't know the sustainable covid would be >> that platform represents more of thefuture you like chick-fil-a >> my daughter loves chick-fil-a, are you kidding >> if you could franchise it still waiting on boeing results. we have a big line up here

making more on the markets and later apple and tesla. and ken langone will join us we'll cover a lot of topics here in the 8:00 a.m. hour. senator elizabeth warren on crypto and taxes and more. looking at futures posed for a roughly flat open. the dow posed open lower and the nasdaq stays higher. stay with us plans for the long term, and plans for a long weekend. assets you allocate, and ones you hold tight. at thrivent, we believe money is a tool, not a goal. and with the right guidance, you can get the financial clarity you need, and live a life rich in meaning, and gratitude. to learn more, text thrive to 444555,

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now the answer to today's question, what is the longest running sporting event held in the united states? the answer, the kentucky derby >> crypto measures bounced back.

the currency hit a low of about $32,000 earlier in the week. galaxy digital founder and ceo thank you for joining us there was a lot of pointing to the report pointing to amazon is the reason we saw it bounce back. >> crypto loves a rumor like that it has bounced back because they are buying from some of the best investors in the world that sent a signal this isn't going away institutions want to pile in

money. this was partly a big shore rally and partly the investment not going anywhere >> from the past week or two about the argument or the people trying to bat down critics that bitcoin and crypto are an inflati infl inflat infl infl inflation hedge. >> let's remember ethereum is six years old and bitcoin is older. people are buying bitcoin because they have worried that the fiscal and monetary policy is oust control. yes, it is a broader debasement

of the money hedge it doesn't mean we are going to go tick for tick of every item >> and given the fact we did have this hearing today. we have elizabeth warren on the show warning that bitcoin, quote, price fluktation for retailers that accept. and the only people who use bitcoin as money are criminals >> it is disappointing i have met very few people over 70 she's a baby boomer. three presidents bush, clinton, trump all baby boomers our country has deficits we couldn't fathom. looking up to say, hey, the baby boomers have not done a good

job. coming from the genzers. it was disappointing she was smug this is a progressive technology she's supposed to be a progressive. it will empower the artists and creatives. really frustrating and disappointing, it tells us we need to do a much better job going to d.c. and heeducating. >> at the same time, the truth is at least right now, the transaction fees associated with things like bitcoin and ethereum with the funds people are using

to sell the versions are higher than any other instrument out there. >> that's not completely fair. i could send you right now $1 million in bitcoin and it would cost me like 27 cents in transactions in canada, we charge 40 basis points that's cheaper than most bases in america this is a new industry are there scammers around? opportunists, yes. >> i appreciate where it could

go if you are to transact, that's where the margin is for them a lot of other money there than on other instruments the idea that it is somehow a frictionless system. it may be in the future. >> moving that way very quickly. remember, we are the early innings. you don't want to throw the baby out with the bath. we are supposed to be creating the system it will work because it is better we wouldn't have had the mortgage crisis if everyone saw the asset management they are transparent and got instant settlement they are out there defending the banks. looking at the overdraft and the fact that it would cost $4.60

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we have q 2 results from

boeing looking at share prices, don't be surprised if you see them higher why? seeing a positive quarter from boeing core eps 40 cents a share the consensus was for a loss of 83 cents a share the first positive of the quarter. higher abilities of the planes on the 737 max earnings from operations were up 60%. no big charges we've seen charges in the past that have really dogged the defense group. climbing 17% for the increase of commercial aircraft flying around the world cash flow helped by new order flow and cost a couple of numbers, q 2 revenue

coming in a tick below $17 million. free cash flow negative $705 million. operating cash flow, negative $483 million better than analyst expectations the cash balance $23 million the net debt $63.6 million. one exception in his employee letter, president and ceo of boeing says the company previously had planned to drop down to 130,000 employees worldwide by the end of this year they are not going to be doing that holding steady at 140,000 employees. that's the one major announcement there we'll be talking with dave calhoun coming up. boeing's first positive quarter

since q 3 2019 >> can we actually say that chapter for boeing between the pandemic and the 737 max situation that that chapter is now officially closed? >> i think you can say they are coming out of it they still have challenges with the dream liner. they have essentially halted deliveries putting more pressure down the road.

through all of the commercial over the last coupling years we did see charges and that star liner redo and that launch as well >> coming up to markets awaiting the fed statement after concluding the two-day meeting that probably felt like two months speaking after the break home depot founder and chairman ken langon will be our special guest.

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>> the fed concludes its two-day cost reading global fixed income. also the head of the black rock allocation team. i felt this strange sense of serenity come over me. it doesn't necessarily have to be covid around the world, people are

craving quality and return people who wanted value and they wanted it open economically seeing those places where you can buy that i don't think i have both eyes on the fed. the amount will taper be being

incredibly deliberate. at the end of the day at the end, we get gross supply people buying the 10-year note that value is coming down. it is surreal. you still have pension plans that need a risk free asset. i'm not even talking the interest rate risk they'll be there as a base for

fixed incomes. it is not even pension funds this is part of why the fed should taper yesterday rates aren't going to back up that far the extraordinary demand for assets and what's happening in the fixed income issuing that structure product issuing at levels that are the wrong price. the demand for quality assets are epic driving this need for quality assets creating the value in other parts and the equity market. where we are going is different. some of these prices are truly eye popping. it is hard to give balance when

you go through and consider what has given the spike. those will reach the eek qual i yum. wages are up higher. things like shelter and housing is accelerating higher. that growth and demand is

incredible for the products. >> what you said is key to this longer term debate right now maybe you don't have hyper inflation like we saw in the 70s. it is still higher than that 2% higher rate potentially. you talk about something like services, housing or the upward trend what does that baseline look like? >> we felt like that was higher. certainly higher than 2% there is not enough. you study all of the data. there is going to be momentum around employment for a long

time wages will accelerate. you'll want to take your risk in a lot of these equities. >> we are not going to get your stock picks. you gave us tesla and all of this he does it all his eyes are not on the fed. >> one eye one eye. >> down to apple's results right after the break. and ken langone will join us followed by senator elizabeth warren today we're going to fine tune the dynamic braking system whoo, what a ride! i invested in invesco qqq a fund that invests in the innovators of the nasdaq 100 like you you don't have to be a deep learning engineer

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reported earnings that beat estimate of 2.11 per share global comp sales jumped more than 40% nonetheless, those shares are down boeing meantime stock is rising after the jet maker reported a surprise second quarter profit boeing ceo will join the gang. coming up in the meantime, got a break down of apple results and so much more stay with us hey, son!

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today, more than 100,000 of us are innovating to ensure spaces are more efficient, healthier and safer. abm. making spaces healthier for you. this morning, apple shares posted strong numbers. warning chip supply could hammer iphone and ipad sales. joining us nourks seninow, seni research analyst >> good morning.

the numbers were terrific. to have a company that is $350 billion in annual revenue growing 36% year over year is tremendous it is interesting as you point out, this is the third quarter where apple has absolutely annihilated consensus. in the prior too, the stock was also down. we are seeing that the stock is down again this morning. we are seeing that with some other companies this morning google had tremendous numbers. microsoft, et cetera the bar was pretty high. in apple's case, there was a disbelief or fear that things can't get any better the comparisons are extremely tough and growth might

decelerate significantly investors are looking forward rather than celebrating the results may be what is happening here >> so, tony, what is a fair value and what is your outlook at this point. i thinks that a tremendous debate tragd the discount trading at about 20 times historically, it would have traded 18, 19 times. which is among the highest premiums that is the concern we had in recommending the stock apple is a phenomenal franchise company with tremendous innovation the question is, does it deserve to be this much higher taking us to the price target

around $130, $132. i would note companies like google and facebook are trading at considerably lower variables with significant growth. not our belief that apple is a weaker company per se but the choice is, which stocks do i buy based on fundamentals and valuation. given the set up and elevation versus history and some of apple's largest technology, that kind of a market weight is warranted. >> is this because you believe there will be a multiple rerating downwards or that they'll disappoint. >> i think revenue will be

lighter. when it is weaker, people start saying, yes, they have a great services business and iphone is hardware it is ultimately the worry consideration going down more. we'll keep our eyes and pushing as you join us this morning. >> joe >> home depot cofounder in the med. president langone, named after you. >> my wife >> who you've been married to long before you were anything special, which i don't understand

>> i'm still nothing special >> to tease everyone, you have a cross section in the economy in a lot of your holdings and you still talk to people at home depot. the reopening in your view is what >> hot white hot. >> looking at the article with used car prices. it is nuts every place there is shortages of labor and materials the biggest problem are the vendors and the ability this is driven on the labor shortages that has the implications and the policy that needs to be adapted and you don't think it is with $3.3 trillion on the table. i think you'll take a white hot

fire and throw a gas canon top of it. you'll have flames so high, when the fire is out, the drop will be great i'm worried about one thing and one thing alone. the impact of the legal person of inflation i don't believe it is transitory once you give somebody a raise, you don't take it back it is locked in. i think, joe, whatever is being missing here, they ought to take heed i'm worried about this whole effort of getting it done is the concern of 2022. everybody is writing about how they concede the trouble you look at the trouble, the

crime. look at this the trillion to fix bridges. that's okay. >> the $3.5 trillion >> no. not now. last year, they did the right thing when they poured money we didn't know where we were they did the right thing right now, i would argue legitimate infrastructure. they are in disrepair. >> do you have a question for elizabeth warren >> yes >> good. stick around we'll be back with the senator taking a quick break >> coming up, you heard it senator elizabeth warren is with

us with her calls on crypto and taxes and much more. heading to a quick break, let's get a check on the futures this morning. the dow to open slightly lower and all of those big cap tech earnings stay tuned you are watching "squawk box." your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

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good morning it is a storm of corporate earnings hot on the heels of yesterday's beats. one hour, two huge names billionaire businessman ken langone and senator elizabeth warren together live the final hour of "squawk box" begins rightnow. >> good morning and welcome back u.s. equity futures had been

mixed. hasn't really been the story we've got all eyes on the fed. the fed is going to come out and say what they've been thinking about the past few days. earnings have come out a lot more for today the s&p has turned positive. google last night, microsoft is down at this point the 10-year, not surprising that the 10-year is trading under 1.13%. joining us on the set. >> thank you for having me we have a lot of big guests today.

do we not? >> calling on this week to better police the cryptocurrency market writing the treasuries and oversight must add quickly to use the authority to address cryptocurrency's risk and regulate to ensure the safety and stability of the consumers and financial system >> here is senator warren yesterday, cryptocurrencies, what are they good for >> all the warning signs are flashing the hype, the volatility and wild claims that turn out to be false. as the crypto market grows to a close, so does the risk. regulators need to do their job and step in befores it too late. >> saying she wants answers by

today on the plan to protect crypto investors on with us now, thank you for joining us this morning. >> thank you good to be here. >> fascinating to watch the hearing yesterday. here is where i wanted to start the conversation we had mike novagratz on the last hour. talking about how and when to regulate the industry. there is an element where this is an early stage. still a startup. now in the same breath we had in the conversation about should we have regulated more or not in the 1990s? >> you might look at this another way. look at the lesson about when do

we regulate drugs? >> as long as people can sell snake oil, it turns out we are no longer invested when we have an fda that stood up and said, we are going to test these and ensure the market we are safe. look what happened we got a much bigger market that helped the entire world. i don't want to wait until a whole lot of people or small investors, small traders have been completely wiped out. >> i think rules of the road there at the beginning cop on the beat, give people a lot of confidence and those bad actors are watching out and we can't keep pushing frauds on

people >> some of the meme stocks i hear now, no, no you are not protecting me by doing that you are actually protecting the big guy, the establishment if you regulate, the little guy is not the one who benefits. >> i want people to have freedom to invest. i don't want the system where the big guys can get out there and do pump and dump taking in the money and then

disappear it is the big guys that's the party care about before a lot of people have been wiped out. >> do you believe in crypto as anidea >> right now one of the things i think about is digital currency. there has been an enormous failure to crease across the millions unbanked or underbanked. who are paying way too much just to be able to have their

paychecks cashed or to be able to pay their utility bills or rents just to get an edge into the financial system because they don't have standard checking accounts. digital currency may be an answer there because the costs are extraordinarily low for being able to transact maybe that will be a way going forward that we get more people into the system. >> what do you make of the idea that there are a whole bunch of people who have invested in bitcoin and buying it as a hedge because they think the government is spending way too much money >> well people can make their own decisions but to do that somehow assumes two things one what is happening with bitcoin or some other currency is somehow going to be divorced

from what is happening elsewhere in the economy secondly, that the crypto are not going to have their own inflationary measure look at what's happened in the high volatility in the price of these things the idea there is a protection or hedge, i don't think that will be borne out over time. >> there is a lib ter yan strain for those who have believed in the idea of crypto i wonder how you feel about crypto and as a challenger to fiat currency and what that means for the social fabric of democracy. it may be a great benefit to the countries where there isn't a democracy and creates other

problems >> you put your finger on it that's exactly the right way to think about it we have a lot of problems in our financial system right now the fact that we managed to put in control the question we have to ask is look at the design of crypto to see where it may be better also where it may inject its own risk into the system andrew, you remember back during 2007, 2008, 2009, how money markets were outside the system. how people made a little money because they didn't like the fact that banks would have money in a checking account and you wouldn't get much return on that and what happened when the crash

hit so much money was tied up and would put our whole economy at risk. we need to think of crypto in that way. >> when you talk about snake oil salesmen do you believe that is effectively a snake oil product? do you believe it should be outlawed or otherwise make it something of value >> my concern is about the snake oil salesmen who hide everywhere when there isn't regulation. actors that look around and see

traders as folks they can take advantage of my concern is that a wholly unregulated market, the folks who pay the price are small investors and taxpayers. >> one of the issues you were talking about should be taxing crypto do you think there should be a different approach the way we should be is we should be taxing well. it shouldn't make a difference whether you have real estate, cash or a bazillion shares of

amazon yes, jeff bezos, i'm looking at you. whatever form, there ought to be a tax on that. a tiny tax and only for the people who have $50 million in assets notice the tiny tax that would be enough to pay for kids to go to college and to pay for all those roads and brings and bring them into the 21st century at the top of the line if we asked those at the top to pay a little bit more >> that's a little different than taxing income the wealth that people have, they've already paid taxes on -- >> whoa. time out jeff bezos has not paid taxes on the wealth that he has

these are things that probably aren't going to be practical and doable and not what our forefathers had anticipated. >> a wealth tax is negative compound interest. you are right. i made all the money i paid the government what i owed them. i could have lost it all but i paid my share i havea bigger issue for me that is apple pie and the wealth tax i have an easy one from a fat cat wall street guy how do you rationalize giving me

$3,000 a month check every month with all my wealth why don't you people have the courage to address entitlements. i shouldn't get social security. second thing, i pay a minimum alternative tax. i pay a tax no matter what my deductions why don't corporations have a minimum tax? third, what about the carried interest why not address that these are home runs in terms of right versus wrong in my opinion. one example, this is shocking. take all the corporate taxes paid last year as paid by the government home depot paid 1% of all of those taxes. one company that didn't exist 42 years ago. we take good care of our associates, our vendors love dealing with us.

we give back to our community. our share holders have compounded to 27% from the day we went public 40 years ago. everybody has done well. we've paid full taxes. these are slam dunks tell me why i get a check and my wife gets another $1,000 on top of that. take it away from me i know it is the third rail of politics but do it >> let's start with the wealth tax. you don't want to address the issue of how i'm getting $4,000 a month and i shouldn't be getting it >> can i answer some of these questions? the first one, wealth tax. looking at jeff bezos who is worth a bazillion.

he has not paid taxes on his wealth he's paid nothing in taxes or about 1% his income is very, very small but continues to grow wealth through his amazon stock funding not by cashing in but borrowing against it we have a tax system because it focuses on wealth that doesn't capture the folks at the very top. it makes middle class folks and working class folks pay but doesn't make those at the top pay. a wealth tax is an opportunity to say if you are at the very, very top, you have to make a contribution too i think you also ask why we don't have a minimum tax for corporations i've proposed something very much like that

the amount of tax made, those corporations should have to pay a tax on what they report. not after they've done a million loopholes and excuses that would be another way we could pay child tax. structured as an insurance policy you paid in year after year after year, part of the contract was if you would pay in, you would get this kind of return on the back end it is not somebody's welfare or charity. it was an agreement that every

employee in the country who is eligible for social security paid into and gets a return at the back end surely you wouldn't want to be the person who would go on national tv and say after a contract has been negotiated and someone has paid into it for 40 years, that the federal government should turn around and say, ops, we changed our mind and we are not going to give you the payout you earned >> senator, isn't it a contract made about our income taxes? by the way, i've gotten so much more money out of social ty. i've gotten more than my share we all know one thing. times change times change my government told me you pay your taxes and what's left is yours to do what you want with

you are telling me you want to changeit you are saying, by the way we did get your money and now we are changing while i have the opportunity to talk to you, i have a question for you. i have a harlem children's home. chairman of the board. major supporter here for the schools and catholic schools in your book, you talk about how you supported vouchers why aren't you pitching -- we know public education in america is a disgrace. it is a disgrace there isn't a word out of congress about it. why don't we address the issue of competition you are talking competition of

bitcoin. we know one of the problem with charter schools -- the fact of the matter, one of the biggest crises we have and create more of a lack of equality is public education what are we doing about that >> if i could, i appreciate your interest in public education >> more than an interest it is a commitment >> i hope you will read my most recent book called "persist" and has an entire chapter of public education. i was a public school teacher. i taught special needs kids. i loved that work. my commitment to public schools i hope runs just as deep as yours. we do need to make an

investment one of the reasons i have argued is to make those investments in our children those investments in my view should start from the time they are babies we should have high quality child care, universal pre-k. invest in k through 12 quadruple funding in title one schools. fully fund idea, which is education for our children with special needs. and we should make post high school education for our kids without forcing them to go into debt that is our most precious resource, we will be a strong system going forward

>> how do you feel about vouchers now we need vouchers to create competition. >> we need to make an investment in our public schools. i've talked about vouchers and how it is important to make the investment in our public schools and to let parents put their children in different public sch schools without parents having to move homes. school assignment should not be done by zip codes so parents can afford better houses and more education for their children we ought to make our public schools high quality for all our children regardless of the zip code i believe that a long time ago and i've been fighting for that

ever since. >> does that mean our voucher support would go for that school our kids are flying. they go the whole term and they do great it is working. so is that program strictly for public school, not charter schools? not catholic schools >> i am delighted to hear about your charitible giving and commitment >> i haven't talked about my charitible giving. >> i believe it is my responsibility and public service to support our public schools. i believe public dollars need to go to public schools we will raise more public dollars to

strengthen more public schools. >> senator, i have a question about taxing i've discussed the idea of taxing philanthropy. there are a lot of folks like ken doing remarkable work and a lot of other folks that may be giving to charities that may be different. the reason i ask about this, in the same way you were talking about fortunes that go untaxed talking about so many others, their entire fortune will never be taxed i wonder if there is an idea many of the american taxpayers are in fact subsidizing this charity. >> you raise an interesting point. i'm going to take the simpler

answer around this if we put a wealth tax in place this is for people who have wealth more than $50 million ask those folks to pay two cents on the dollar of their fortunes above $50 million. three cents if they have more than a billion you have more revenue in the system and you begin to equalize the tax burden part of the problem we have right now. you identify how it manifests itself part of the problem we have right now is last year the 99% in america paid 7.2% in total taxes. that top one tenth of 1% paid about 3.2%

let's put a wealth tax in place and equalize it a little bit they'd still be getting a great deal at the top but equalize it a little bit and we don't have to put as much pressure on other parts of the tax system. >> senator, i want to pivot. covid-19 and this delta variant and whether you believe there should be a federal mandate for federal employees to get vaccinated >> i think every employer is trying to figure out what to do, towns and employers. i support president biden and what he's trying to do right now in kwrequiring the federal work force to get vaccinated. everyone in my office is

vaccinated employers around the country have the right to try to make their work places safe, that will include vaccines and may include masks. we are in the middle of a pandemic still we want to keep the economy open and put kids back in school. that is a responsibility for all of us some of the big airlines are now calling for the opportunity fly in foreigners to be vax natd but no requirement if you get on a doe mystic flight should that be a requirement all of these should be nudging if they are imposed? >> right businesses are figuring it out for themselves

they are trying to figure out how to keep their work places safe and customers safe. i have gone to places with a sign on the front door that say masks are required i have seen others that require evidences of vaccinations. ifs that how businesses think that is how they could best keep their employees and customers safe, i support that >> how do you value liquid assets if they were to go down the next year, do they give that back because then they've gone down

just trying to get that done now, how are you going to take someone with $5 billion and value all of those and get them to pay that. logistically, this is never going to happen, senator >> can we start with where most of the wealth is for the top 1%. it is in stock >> not all of it >> i didn't say all of it. we could collect a huge amount of revenues just from the stock. you go to the rest of the property, how do you value your ree

real estate. every town in america has a real estate tax and a method they've put in place for valuing >> you get it back if it goes down the next year, senator, if you haven't sold your value in it >> i don't think you do on real estate taxes my understanding is you pay it that year, you pay it that year. if your income goes down -- >> you are taxing it based on the value. let's say it goes down 50% you get it back on the unrealized gains the next year >> you pay your taxes on the wealth on the year that they are taxed. that's how it works. >> what if it goes down the next year and you are paying taxes on what you haven't realized. that's not fair and not how it works. >> you do it on your home every

year every single year. look, people at the very, very top are paying taxes in terms of their wealth at less than half the rate of 99% of america >> you are arguing religion now, joe. senator, i'm happy to have the clarification on your stand on vouchers if i'm right, you are saying the voucher money can be used to go to another public school system. i want to leave you with one data point of the 30 most developed nations on earth, we spend in public education more money in schools thar any other 30 countries. our ranking is 28 out of 30. generic question, don't answer it are we getting our money's worth. give the charter schools and

catholic schools, give them some of the money and see what they will do with it. >> in your book, you didn't qualify vouchers you said i support vouchers. you didn't say one public school to another >> i wrote the book. i know what that says. >> and i read that part of it. >> if you really want to talk about public education, i hope you'll read my current book, persist. one of the points i make is how much we have underfunded education. looking at what we spend on teachers look at our public school buildings and how old they are and falling apart in many cases. we just took testimony yesterday in senate subcommittee talking student loan debt. one of the issues that came up

was the investment in our public schools. as a country, we are not investing enough we owe our children. the investments they make in the buildings, teachers and buses to get them back and forth. in their after school activities trying to get these children so that they have real opportunities from the time they are born we want all of our children. >> touching on all these things from crypto to bachl taxes and so much more we hope you'll come back and talk about more. >> coming up, recapping on

fizzer, new covid-19 details bi billionaire ken langone. we'll be right back. why keep it in different places? sofi is a one-stop shop for your finances designed to work better together. spend with sofi and get cash back rewards that automatically go toward your goals. like investing in stocks, etfs, and crypto. that's better together. or pay down your sofi debt sooner. that's better together. and that's how sofi is helping millions get their money right.

pfizer beat on the bottom line the stock going checked.

meg joins us now with the details. 20 years, i think. >> joe, the pfizer quarter driven a lot by the covid-19 fax even also growing 10 to 15% a break down of revenue by segments the vaccine segment the largest in the quarter oncology business grew 16% operationally. rare disease grew at 28% total revenue up 86% to $19 billion. the covid vaccine contributed to $7 billion in sales. based on contracts for the 2.1 billion doses signed they are going to manufacture 3

billion doses in 2021. we co-see that number going up even further the company giving more details and looking at data for kids 5 to 11, that they could pone it will shealy file for emergency use authorization. down to age 6 months shortly after into company shortly after that and how well a third dose might work against the delta variant. new data talking about how it could boost antibodies 11 times in older people they did get information about the oral drug. they started a phase two on early stage data and they could have results fromthat in the fourth quarter they are testing this on people not in the hospital and at risk

of advancing to severe disease in combination with another inhibitor. that is an oral, that could be a helpful drug if it works >> seems like we got -- people always disagree whether we got the vaccine down pat i think those vaccines are pretty darn good and you can customize them for variants. we do need therapeutics. it would be great to have a cocktail that will bring the virus under control if it is going to be something we are dealing with like a fluty indication every year. talk to those people and tell them to keep working hard. great job. will you tell them they don't care. >> i will pass it along we have albert bourla joining us >> you see that at 1:00 p.m.

>> we'll talk more with ken langone about that wide-ranging interview with elizabeth warren. and durch -- duolingo prices ipo shares at $102 and around if employees bought and sold some is of those ipo stocks >> they have a lot going on. they do. multiple two more disclosed last night. expecting the ipo tonight from robyn hood aye first public trade tomorrow. st tuned, you are watching "squawk box" on cnbc ode,

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we are back now with our special guest investor the fed will be out today.

i'm sure we'll hear thmore hearing he says 80% is due to reopening. >> i agree >> you agree with that do you think we are heading into a difficult period >> yes i don't believe it is transitory that's what rick said. i don't believe that. >> they get $300 a week from the federal government in north carolina, all you have

to do is say you've gone some place for an interview, not a job. our tax dollar gets people to sign up for an interview, with 60 people, 25 show up. the other 35, they've met their obligation to get the $700 and they get it. we are creating distortions. god bless rick >> how much of that is transitory >> we are not going to cut somebody's pay >> how many people come back to work >> when you give somebody a raise. the prices of milk go up and down you pay a truck driver a raise, you don't go back to say we gave you a raise we are going back to the old rate you don't do that. >> a round number of corporate costs is labor you are not going to take that money back

the tragedy is, the people you are trying to help are the ones who will get hurt the most i'm terribly concerned of who gets hit these guys with eggs, ter and cheese we spend a lit more money on milk and meat i'm worried about the little guy right now this inflation is basic and will continue pumping $120 trillion a month. now you are talking flooding the

market now you can see this point from last year and the work should we be cautious? absolutely we were going to europe in september, we canceled our trip. not worried about getting disease. i'm worried about not getting back in the country. this still is still around we need to take every precaution please get vaccinated. >> do you think washington understands what causes the flynns don't want prices to go

up that's why the false fear mongering is going on. they are appraise of wages that come along with the wage cost spiral they'll continue with the policies >> the thing about a politician, where they stand, take elizabeth warren and vouchers, she can modify to adjust history position when i make a bad bet, i admit it the fact is when this happens, the hyper inflation happens, it will be too late to recognize maybe you need this $3.5 trillion thing. not now. we've put it in place. get some of these artificial barriers

we have 9.5 million jobs looking for people 8 million unemployed people. seems there ought to be some match. maybe 4,000,004 million buts that an impressive number. what i'm saying now is please, please, congress be careful. you are playing with fire. if you are wrong, the little guy, the guy you say you want to help will get punished severely. >> it is an unofficial tax on the middle class which has been completely eroded. the crux of this is fiscal and monetary policy that is only exacerbating that situation. >> inflation is a regressive tax. i'm going to pay more like the little guy does, the poor guy work or the woman, the guy she's worried about helping living

paycheck to paycheck his kids like to drink milk, scrambled eggs in the morning and go to the movie occasionally you start to raise these prices, it is the little guy that gets crushed. they are thinking about their vote i'm asking the question to all these senators and be careful what you're doing, the irony of it is i think a lot of this is motivated by the concern they have for the '22 cycle. they only exacerbate their problems by doing this. >> we're going to take a break do you think is mayor adams going to be able to get new york -- >> i pray to god he does i want this guy to be so successful thank you, ken, stay with us andrew. let's go down to the new york stock exchange, say hello to our friend jim cramer so much to talk to him about we've got pfizer today we've got the big tech companies last night

i don't know where you want to go first i'd love to get your view, by the way, on apple. >> i adore ken i never thought i'd say this i think that he's too negative i think that corporate capitalism doing some amazing things if you look at what happened last night, every company did a great job. i think that question count on business to do the right thing and help us and make it so that a lot of the problems that he said can be mollified. i think we're an amazing country right now where the corporate leaders are the best i've ever seen so andrew, i've got to tell you, i agree with panel on trying to help the little guy, but i cannot believe how well our ceos are doing. they're extraordinary navigating a very difficult situation around the world i just applaud them. every company last night from visa to starbucks to amd, apple. they're extraordinary. let's give them cheers for capitalism >> i agree with that 100%, jim

no issue there at all. my concern, jim, is our government flooding the market with dollar bills when we've already got an overheated economy, and most people i talk to all agree this thing is white hot. corporate leaders you're talking about. >> well, every one of those says the same thing to me is that we don't need this new stimulus we're doing great. we just need to have women back in the work force, which, by the way secretary raimondo is so amazing, ken she knows exactly what you're saying she says, listen, we get the schools open we get women back to the work force. we stop this thing we're both doing -- i'm interviewing seven people a day at a restaurant, all they're doing is checking the job. we have corporate leaders doing so much great stuff. >> i want to ask you a corporate leader question. i think they're doing as well a

job as they possibly could on behalf of the shareholders for their companies but actually on a social purpose matter, which is getting their own employees and their customers vaccinated, they get in my mind a c or a d or possibly an f, and so many of them are so scared to actually mandate vaccines, to actually get it done, it would change this economy, all these things we all want, to get back where we really need to be, they refuse to do why is that? >> the fda tomorrow would get rid of that emergency designation. look at this, the alzheimer's drug doesn't work. the panel said 10 to 0 it doesn't work, and they approved that who is the fda do we even know anything about the fda? every day -- yesterday oh, my god i thought we were all going to die like belly illy and the

predator when i listened to the cdc. i have never seen the government so disorganized when it comes to public health. do i listen to fauci, do i listen to the cdc director, do i listen to the fda? i don't know i have no idea what they say the only guy who's doing it right is the nfl who says listen, you're going to cost us all a paycheck i don't want to give them a bad grade. i think the government's awful >> look, as long as it's -- as long as it's in the emergency phase, you have the risk of litigation somebody saying -- >> exactly right >> this is one of the big barriers you get the fda to say it's final. it's approved, and i can guarantee you all the places i'm involved in, if you don't get vaccinated, you will get fired you have an obligation to your fellow man to protect him as well as yourself >> i don't -- >> you can't mandate people on

an emergency basis because they have the right to say i'm not taking that drug that thing could kill me what are you going to say to them, no, it's the fda i don't know hey, could we criticize them the way we criticized the previous administration >> we can have more of a debate about all of it. i'm on the other side of that debate on this particular issue. we're going to see you in a couple of minutes. >> andrew, i have nobody to beat up on here >> i miss you too, ken, but i'm right here, and you're right there, so we're all together >> andrew, come back, andrew, don't be shy we need you here it's not the same without you. >> ken, i'm going to see you very soon. joe. >> thanks, andrew, thanks to ken langone for being with us for this past hour coming up, we're going to -- >> thanks for having me. >> what you need to watch as we

approach the opening bell on w wall street. what we have to put all eyes on when we return. >> i'm never going to live this one down 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.

let's get a final check of the market the dow is now positive. a lot of dow components, talking

about 18 points in terms of upward momentum before the opening bell in about 31 minutes. the nasdaq strong, solid up about 59 points. amazing that since the last 5% correction, that statistic that we saw in the article on the cover of the journal, 35% gain in the s&p since the last time we had -- no 5% correction since then 35%. that's more than a third, morgan. >> yeah, which is interesting because we've seen this new generation, this new crop of retail investors and traders get into this market in recent months and there's been sort of that kick around, when you talk about the lack of a pullback and then on the eve of the robinhood ipo, you can see why there's that whole back and forth about risk, reward in the market right now. better or worse. facebook, the big tech company to report tonight. andrew, you still here >> i'mright here. >> she was definitely calling bitcoin snake oil.

your question was right on, at least implying it, when you ask doesn't really say it in so many words. there's not a believer there in any adherent value of bitcoin, i don't think. is that your take? >> i don't know. i was actually surprised that she actually was a little bit less -- >> yeah, from the stuff she was implying to when really pressed then she said, well, i don't know we got to go we'll see you tomorrow, we're going to see you tomorrow, andrew make sure you join us. "squawk on the street" is next good wednesday morning, welcome to "squawk on the street." i'm carl quintanilla with jim cr cramer, david faber. a apple, alpha, mcdonald's, pfizer, we've got the ceos of boeing, amc and starbucks this hour we're going to get to all of that ahead of e