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 the fed decision

a global chip shortage, how that might impact future operations, jim, along with this notion from cook that covid recovery at least globally is going to be an uneven path. >> i think that to not say that would be irresponsible when the cdc has made me feel like -- this n95, i'm not going to fool around with anything else because the cdc aso what's he spe supposed to do as far as the chip shortage, not all fabs are equal there will be some fabs that don't want to lose apple's business in the same way that skyworks su isn't suddenly going to say apple you're out i'm not as bearish on the chip shortage guys are working around the clock to be able to create the full-featured chip it's no longer the dumb chip it's full featured david, i think that when you listen to amd, lisa su.

>> who we'll have on shortly. >> exactly there are just -- >> your second favorite lisa >> oh, depends on the day. >> right >> my wife's name is -- that was probably -- >> she doesn't watch >> she doesn't watch either show >> she's from ten blocks away from my favorite lisa. >> my hometown, too. >> that's right. what i think does matter, david, is that you can pontificate on the chip shortage, but you might be wrong and too negative. i do think there are many people who believe the chip shortage is going to come to an end by the end of q3, and then you're going to say why did i sell apple? he's so rigorous >> you know, speaking of apple and its stock price, i would love to sort of get your sense as to where things stand right now. the revenue growth, by the way, not just at apple but at microsoft and alphabet in

particular 57% currency at goog who's ever seen numbers like that. >> 21% of microsoft and 36% revenue growth at apple. 17.49, 48 billion in recurring service revenue. did it run into the expectation for this quarter, and is it appropriately valued at 29, 30 times, or is this still a good time in your opinion to buy the s stock? >> i think it is a good time, i don't know if you listened to steve weiss yesterday. he was buying puts left and right. i don't think that's necessarily going to be the way to go when i look at faang, but i do think when i listen to apple and i talk to tim cook last night along with josh lipton, i'd say as bullish as i've aheaheard, ad don't forget, the customer loyalty is so great that if they can't deliver the chips in there

for the phone in this quarter, you've got it more elongated. >> you're loyal because you're a hostage. >> hostage hostage? >> i spent three hours in an apple store this weekend they couldn't even let us buy a phone for three hours. >> i was in the 5th avenue store yesterday, it was slamming 75% of watch customers were new to the product, and in china, 85% of watch customers are new to the category. >> i asked tim why bother. how can it move the needle, and he said do you think basically health care moves the needle and i said, yes, the watch is incredible i find people wearing watches who have never even thought about wearing a watch, david take that. >> the wearables numbers are enormous for the company you know, it's everything. i mean, it's obviously 34 billi billion, something like that. >> how long did you wait in line >> we put our name they couldn't see us for 2 hours and 45 minutes. >> buying an $800 phone.

>> what company in the world do you have to wait three hours to buy an $800 phone. >> why don't you go to samsung >> i had a pen that didn't work three times and they won't even take it back i'm sorry, it was a rough weekend with apple. >> david, i think there's lot of alternatives >> yeah, there was an alternative, stupid me i should have gone to verizon i probably could have gotten the phone for free. >> at&t's got a million of them is there i'm a moron. >> at&t has to cut the dividends. >> when you have customers that are willing to wait three hours it to spend 800 bucks on your phone, you're in a pretty good place. >> that's my point. >> had you spent five hours, i'd pay 150. >> if you put apple, google, microsoft together it's 57 billion in combined profit for the quarter. it's 620 million a day in profit from three companies. >> i think people have to go listen to the al alphabet call, to listen to ruth.

i want to work at alphabet period, end of story i mean, they're making so much money and spending so little to make that money that i think we all want to work at alphabet by the way, cloud is going to be the next thing that they have. youtube, they're reaching customers that no one else can reach. can i say if you had -- if someone was writing, let's say someone was writing. i would say hey, listen, i want it to be the most positive call every. >> and that's what they did. >> >> and youtube numbers were almost double in terms of ads. incredible >> we have to -- yeah, we got to get to carl. we got to get to boeing. >> oh, my god, that's another one that david probably thinks isn't that good. >> we're going to pack this hour boeing up in premarket, surprise profit and a lot of news on production rates and everything else phil lebeau, good morning. >> good morning, carl. i am joined by dave calhoun, president and ceo of boeing.

a surprise profit, first time since q3 of 2019 some people will look at this and say you're delivering more maxes and that's the only reason why. you had a number of drivers in here that i think people may not have fully appreciated, correct? >> that's absolutely true. good to be with you, fphil i will recall the last time in person was pre-covid it was a great quarter we are in a transition year. we've taulked about that. this is indicative of that transition nowhere where we want to be in terms of recovery but clearly -- >> domestic traffic, and we are about halfway through the return to service in our max products and they're performing incredibly well. customers are happy with it. flying public is happy with it we're feeling very good about that our defense business very, very solid quarter, absent the charges that investors became accustomed to for a while, but

for good reasons we are really working on the stability of the overall operations and very importantly investing this the tanker, which is a critical asset for the war fighter. finally, as you heard yesterday from our engine suppliers, the services market as fleets are returning to service is going hum. and so we had a good lift in our global services business. >> let's talk about the 737 max. you have increased deliveries, but as you see the covid variant spreading around the country, spreading around the world, two questions here one, does impact your production schedule does it impact how you think the global recovery will happen in terms of commercial air travel we've seen a real resurgence does it pull back or do you think how we're going to power through this as an industry? >> it's not helpful. that's clear i don't think this is going to have severe repercussions. i really don't the one thing that we have cleared with the flying public and with the help of all of our customers is that the safest

indoor spot you can be in with respect to transmission is the fuselage of an airplane. people know that know. everybody's knowledgeable. that helps a lot i do think it slows down the development of protocols around the world, such that the wide body return. it may elongate it somewhat. we are completely dependent on distribution of that vaccine and penetration of the vaccine in ef population that is the most important track that we can follow. >> you talk about wide bodies. let's talk about the 787 dreamliners. you have halted deliveries while you're working on the inspection process, working on some type of agreement ultimately with the faa. as you're uncovering more problems, critics are looking at you guys saying, look, is a problem with the execution and the manufacturing of commercial aircraft at boeing it seems like there's one problem after another. is there a problem >> let me start by characterizing it. this is boeing being tough on

boeing, right? we started the inspection process from nose to tail because when we get to rate recovery, let's assume rate recovery starts in the second half of next year, and i believe strongly that it will. when we get to that moment, we have to be perfect we have one site we've got to get every quality issue that has ever found its way into an airplane, we've got to get it out. we've had enormous help from our supply chain these are very complex, very precise fixes to the airplane. nowhere near the safety window, but clearly things we want to do to stabilize that overall production system. most of these conditions were pr pre-existing as we work our way through them, we're going to be that much better when recovery comes our team has demonstrated courage to go out and find them and then to fix them ask they're working transparently with the faa. and the faa every step of the

way has worked with us they're good, they're thorough we have to give them time to do it that recovery when it comes, we have to be ready >> jim's got a question for you. >> dave, first, congratulations on a quarter that i think few were looking for there are a lot of people who feel that the time line of boeing being back and the time line for aerospace returning to its glory is 2024. when i look at your numbers i'm almost thinking, let's say your stock goes to 300, i wouldn't mind that. maybe this is a 2023 turn-around and the people who say 2024 are quite frankly, dave, too negative. >> honestly i'm -- i do believe that that question and the presumption in it is correct we have to be ready for recovery in '23, and significant recovery, domestic travel is

already returning. we're getting close to where we were precovid, and then we will get back on that growth track. i do think the protocols between countries and the harmization of the protocols and then vaccine penetration as we move into the course of 2022 i believe bit time we get to the second half of '22, all of the airlines around the world are going to be planning for and beginning to bring up their international operations so nothing's certain, but yes, i share that point of view i'm more optimistic than i have been in quite a while on that front. it is part of the reason why we stabilized our employment and, again, sent the message to our folks that we're done with the cuts we're done with minimizing rates and it's time to get ready for maximizing rates >> all right, we worry about execution. let's say four times a week, and then fly to beijing several times because china's the key.

why should we wait for the u.s. government to help you >> yeah, no, i'm totally with you. and by the way, we do do all of that by the first two month os of this year, phil and i were talking, i was in south carolina, i moved to south carolina so that we could set up this program the way it is i'm very proud of that team for what they're doing every week we go through it. every decision they make, we're all together, and i believe it's all for the long-term good of our people and the flying public anyway, so we do all of that we similarly work on our relationships in china, which are very corrnstructive we work directly with the airlines they have 100 airplanes, maxes that want to get back in the air. the caac continues to work with us they're thorough, they're good it's been constructive and it's moving forward i do feel good about all of that the bigger tensions with china, they are going to be what they're going to be. our relationship and our willingness to work closely with our chinese customer, it's there and we're going to continue down

that path. i remain optimistic on that. >> you were talking about the bigger tensions with china all of this comes down to whether or not the policy changes. you don't want to get into that discussion what you want to do is do business and we haven't seen a large order from a chinese airline four years, five years for boeing at what point do you become worried that if there is not a new order coming along, you're going to have to change your production rates >> well, i probably look into the middle of next year. that is that moment when we've got to, you know, resurrect that order book the order book hasn't gone to the other guy yet, right so they similarly have been in a bit of a vacuum. but -- is well aware if we cede the chinese market the europeans will simply fill it. that will be the difference between world leadership or not, and that represents roughly a million jobs in our supply chain including the boeing assembly

operations so there is a cognizance on the administration's part about what -- how meaningful that is there is a need in the chinese side of this one to do it. we will be the free trade spokesperson we will work hard to do everything we can for our chinese customer, and i'm optimistic we will move down that path. >> quickly, i want to ask you about something that increasingly corporations are facing, andthat's data security data breaches, whether it's ransomware attacks, whatever it might be do you find yourself and your executive team spending more time than ever focused on making sure that there are not data breaches and that your networks and your operations are secure >> absolutely. it's mandatory, of course, for us we serve our military and our fighters, it's mandatory in every way you can think of we're pretty good at it and yet we wake up every day scared to death because we are attacked on a very regular basis just like everybody else in corporate america. so that happens to us, we know

how to remediate we know how to get ahead of it, and in some cases we play offense with our partners in the military there's a lot we know about it every company is investing hand over fist in it. we have to we simply have to. >> you've got the star liner launch coming up on friday, and we talked about last year about the importance of this we all know what happened with your guy's previous launch do you feel there's been a portrayal of boeing being behind when it comes to the space race, if you will. do you feel that way, or do you feel that you're still in position to capitalize on the opportunities that are there >> yeah, no, no, i feel very strongly that we will capitalize on those opportunities you know, we operate in deep space. that's what boeing does. it has its set of challenges and we think we're pretty good at it i can't wait for friday. i am optimistic, confident every way i can be that we're going to have a successful tag with the

space station. we're ready for the crude flight and it will keep moving. we're also ready, the space launch system itself is now standing vertical. it's unbelievably impressive all of this has gone on a while we've been battling covid. i'm very confident we have real vested interest in space. space is going to be a good market for us. we're going to continue to invest in it. >> dave, thank you for joining us >> appreciate it. >> it's good to be here in person almost two years since we did this last. guys, we'll send it back to you on a big day for boeing as they beat the street with q2 numbers. >> phil, great stuff it looks like boeing is going to add at least 80 points to the dow for the open do not miss kevin johnson of starbucks and amd's lisa su later on this hour lots of earnings to get to, and futures steady ahead of a fed decision later today rahthere" wk on the stet stig aad en traders tell us how o make thinkorswim even better, we listen. like jack. he wanted a streamlined version

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. a pair of tech giants rising after posting quarterly beats. google parent alphabet gets a lift in that surge in online ad spend. microsoft results were driven by growth in cloud. looking at the price targets on alphabet, jim, 3150 at mkm, 3155 at b of a. a lot of three handles today. >> i'm going to offer some caution of what could turn things around, there will be people who say, wait a second if you combine what the cdc is saying with the variant that has

us waeg earing masks again, that will cut travel advertisement, which is so important to alphabet you're going to hear that narrative, out of faang is dead commentary, which will be incorrect but so what, and i really want to urge people to strap yourself to the math this was a perfect quarter youtube great, we're going to hear a lot more about google cloud which is great very positive commentary about waymo. but search was fantastic the stock was up 100, it was down at one point, to be able to say wait a second, the world is closing again. the reopening trade is done. david, i don't know if you heard the cdc -- >> i did, i did. you know, listen, we've had this digitization take place. we all know it by the way, they're coming off of what was a flat year-over-year number, so they're up 57% constant currency they weren't down 20 to 19 they were just flat 20 to 19

so a 55 plus percent over 2019 numbers. it's incredible. >> it is incredible. we're not talking at all, though, about -- i maean, obviously the size of these companies, the power that they they have. youtube, we all know the rabbit hole that can be for some conspiracy theorists and the like continued focus of regulation. that doesn't seem to be something people are overly concerned about. >> none of the analysts. >> i think, david, you're absolutely right if you want to read certain people, what they said is you can reach them on youtube that you can't get on tv at a fraction of the cost of tv. >> facebook tonight, what do these numbers mean for facebook. >> unless facebook decides to self-emulate, the number's going to be excellent. >> that's been the theme of the week so far, and we will get more on microsoft after the break. shares of amd and starbucks going in some opposite directions today following their respective earnings reports. we're going to talk to the ceos of both companies after the

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shortlyafter the opening bell, do not miss amd's lisa su followed by starbucks ceo kevin johnson as "squawk on the inusa " returns jt mont don't go anywhere.

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all right, we got so much to get to today let's get to a mad dash before an opening bell. mcdonald's is another company that just reported earnings. >> the wts mule showcased the pillars of growth strategy i want to ask carl about that in a second here's the issue this stock has been up endlessly, but i thought this

quarter was terrific, and they're saying some good things about staffing they're saying some good things about what happens when you open a place, but when you listen to the cdc, you say, oh, my, is this going to be another case where the great reopening is postponed? because that's going to hurt mcdonald's overall, i thought it was a terrific quarter i think they're doing a lot of great things the numbers themselves are rather big in terms of what they're dig same-store sales david, i like the quarter very much. >> stock's not looking to be up when we start trading in about 50 seconds. >> well, i think that it's up so much carl, you know the company this is a quarter that you would have dreamed for the same-store sales two-year up 14.9 you've got to be impressed. >> up 15 on a two-year stack 70% of u.s. dining rooms are open and they think 100% will be open by labor day to your point about

rb restrictions. >> let's not necessarily take our cue from the stock, take our cue from the quarter which was quite excellent. there's the opening bell and the cnbc realtime exchange, the big board, a power school celebrating an ipo dual lingo, the cofounder and ceo later this morning >> all i can say is that the people who watched them did not cheer as much as these guys, and they're of course, from ted lasso, david. >> you haven't watched ted lasso? >> i'm not happy with apple, but i love ted lasso. >> there you go, he did something. although we haven't watched it yet, it just came out july 23rd, i think it was released. looking forward to watching it. >> a lot of my friends are buzzing about it. >> the second season. >> and my wife and i found something to watch together. feel good, it was a feel good show.

>> yeah, one more way in which apple's get sbing into our lives azure, a pivot point of debate on microsoft today. >> it's funny, they use this term relatively stable, and i found that that was -- that was like the duck coming down with gro grouchomarks i parsed everything that they had to say, and amy hood, the cfo has never been this bullish. all they had to do was say it's stable to positive, which it probably will be and the stock would even be higher i think that when people speak to microsoft, they realize it's still their time and these azure numbers -- i'm only used to them for being small cap companies to have that kind of growth >> right, i mean, their commercial -- this is not -- commercial cloud is 69 billion

in annual revenue. that's an annual revenue it's up 34%. obviously we like to look at aws. we'll get a snapshot of that towards the end of the week when amazon reports microsoft, and then of course we also heard from alphabet alphabet the smallest but growing the fastest, i believe, at least based on these last quarterly numbers. >> you have things like linkedin doing 10 billion, you have xbox demand continuining -- i thought this was interesting this is a ryan cohen issue the meme people should be buying game stop off of this. demand is continuing to exceed supply for the xbox is good for gamestop. >> gme is going to join the s&p mid cap 400, and i saw a flash head that they're going to rebrand in canada as ev games. stock's down about a percent. >> when i listen to what mattel

is saying and most importantly what logitech is saying that makes gear, it made me again bullish on gamestop. here we're talking about ba-- te ev games are going to be so big. people want to play these games so much. which is what i've been urging ryan cohen, who of course is the savior of gamestop to do this, but he's very opaque on his plans. >> i think, guys, we're going to get to amd in just a second. i did want to hit spotify. those shares are down 8% the company also reporting numbers, total monthly average users up 22% at spotify. 365 million people for the quarter around the globe, but that was a bit below expectations now, i have heard that they've been telling investors, they weren't marketing, that they were not actively marketing during the quarter

they've resumed that and perhaps that will ameliorate some of the concerns around a number that came in a bit below guidance ask what the street looked for >> they're not doing much. >> that they weren't doing a will the of marketing. >> very good we're going to talk to a stock that should be up much more. shares of amd are indeed higher this morning, and that follows incredibly strong future results. chip maker also raising its full-year revenue guidance joining us exclusively, amd's ceo lisa su. how are you? >> hey, good morning, jim, good morning, carl and david, great to be with you today. >> i want to focus on the demand side for a moment. it seems like there's demand throughout the chain, including for amd enterprise every chip seems to have a buyer and then some. is that a correct interpretation of this quarter? >> yeah, i think that's very correct, jim i mean, it's a very strong

demand environment skp we're very happy with our results. we nearly doubled revenue, doubled operating margins, tripled profitability. it was a very strong quarter, and it starts with just there's very high demand we're in the right markets, and our products are doing very well >> well, i know that you have always been loathe, as many times as i try to get you to to knock the competition, you did say this time, a little break of what i regard of being your lack of willing to slam anyone. you say we continue to gain revenue share. what this means is, you know, we're focusing on the most strategic segments of the pc market that was always the bailiwick of a kcompany called intel so you must be continuing to be ahead of intel when it comes to the chips that these pc makers want >> well, you know, as you know, the pc market has been very strong for -- very strong last year very strong the first half of this year.

we've been focused on the most strategic segments of the pc market, so things like, you know, note books have been very strong, gaming notebooks, premium consumer notebooks, commercial notebooks and we've done well. yes, we believe we gained revenue share, a record for our pc business and we continue to believe that we're having more customers prefer amd given the strength of our products and the work that we're doing with our customers. >> let's go to italy for a second, rome very popular chip, belon exceeding rome in terms of popularity you've got genoa next. let's turn that into something our viewers understand what you're saying as you get smaller and more powerful chips, it seems like you're pulling away from companies with this road map that you have. >> the data center, you talk about it a lot with cloud and what's going on in sperenterprie and for high performance

supercomputing it's a growth market it's a secular growth market that is really, really strategic to amd it's strategic to the world if you think about all the infrastructure and everything that we're powering. we laid out this long-term road map. and as you said it's actually a map through italy but rome was our second generation data center product it's done very well. it's done very well particularly amongst, you know, both cloud and super computing s sort of the largest computers in the world. we recently launched milan that is going very well. we doubled milan's shipments in the second quarter and that will continue to grow into the second half of the year we don't stop there, jim this is all about always bringing the best to the marketplace. so our next generation chip is called genoa that will come out next year in five nanometer technology. that's right on track. it's about always giving our customers and really the market more performance so that we can do all these great things we want to do with computing.

>> yeah, as you're speaking, i'm going to urge people who are selling the stock to understand that this was as perfect a quarter as i've seen, but maybe perfection doesn't intrigue people anymore one thing that you know i was disappointed in is i'm just praying that the authorities, it's out of your hands will prove xilinx that you mentioned in the quarter being something you wanted to diversify into if you can just describe, i don't know how opaque the regulators are, lisa, but if you can describe what regulators might be concerned about, it would certainlyly assuage my feelings that xilinx will get done this year. >> we think it's good for technology i think it's good for our customers because we can really, you know, optimize technologies together it's good for the company because we'll diversify our overall revenue base we were encouraged in the second quarter in that we passed some key regulatory milestones

including unconditional approval by the eu and the uk we're going through our regulatory process i would say it's going exactly as we expected it to go. these things take a little bit of time. we believe that we're on track to close by the end of this year i think what you'll see from the combination of amd with the strength in our computing capabilities and xilinx with their strength in adaptive computing will just be, of course, a really exciting, you know, company as we come together so very much on track, very much as we expected, and it's just a process that we're working through at this point. >> lisa, it's david. a quick diversionary question from me on the topic of bringing people back to the office. i'm just curious, have you made your final decisions in terms of what your expectations are for your work force, what they want versus what you want is it the same thing and what does it look like >> well, david, thanks for that question i will say, you know, first of all, i'm so proud of, you know,

our amd employees. i think we've executed very well, you know, through this last 15, 16 months it's been difficult, you know, for everyone what we've taken very much is a manner of we're working with our employees in various geographies. we're a global company, so depending on the geography, you have different -- you know, different elements of the pandemic right now we're giving people a lot of flexibility in terms of how they do that we do have some people starting to return to the office. we're doing it in a very, you know, sort of flexible fashion, and i think people are happy with that. so i feel great about the exec execution. i think that's one of the things that's key is whether we're in the office or we're working from home or we're working from anywhere that we're able to execute on all of our road maps and all of our commitments to our customers, which is absolutely critical. >> lisa, real quick, do you expect that you're going to have people back in the office full-time? is it only going to be two days a week do you have a sense for that >> yeah, what we said is we

expect people to mostly come back to the office, you know, at least three days a week. and then we've given people plenty of flexibility. if you have any situation that, you know, would -- that would be difficult, then we've said, fine, let's make sure that we work it out, and we'll -- you know, we do believe that there is collaboration that you benefit from when you're together, but we also understand that, you know, people need flexibility. again, our business allows that as you can see from the strong execution that we've shown. >> lisa su, it is great to have you on this show, congratulations for everything you've done for shareholders it's been a remarkable run and it's always great to see you. >> thanks so much, guys. >> all right, carl, back to you. >> thanks. when we come back, we'll talk to starbucks kevin johnson and another first on cnbc interview. take a look at the bond report, look at treasuries with the fed statement due out in just a few hours from now yields are up across the board ten-year is around 1.26. we're back in a moment

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nasdaq getting killed here shares of starbucks on the nasdaq moving lower. joining us now first on cnbc is starbucks president and ceo kevin johnson. we always enjoy you coming on the show good or bad, i thought this was a good one. welcome. >> well, good morning, jim. >> kevin, you're doing something that i didn't think was possible it is very clear that you're doing custom made at scale is that technology is that your team being proficient, or is it just you have the right drinks and people just sknow what to ask for and you guys are ready >> one of the key differentiators of starbucks is the fact that we've got a great beverage platform that resonates with customers and it's customized it's personalized for each and every customer you're seeing that that's one of the things that is powering these record results. you point out we had a significant beat on top line revenue, a significant beat on earnings per share and this was a record quarter,

and in many ways, it was a record quarter because of the customer experience we create in our stores the beverage platforms we've introduced and digital the customer experience, beverage and digital are powering these results. >> all right, now, just so you know, google is down today, well, it's barely up so you know that it doesn't really matter what starbucks says kevin, i think it's very interesting. people are going to say, wait a minute, why is it down ask there was a jpmorgan analyst who basically said the ticket was actually down in china, which isn't very common, especially in an inflationary environment and that china is not doing well can u you put that in context, please >> the best way to look at this, jim, if you look at revenue growth in china over a two-year period so let's take fiscal year '19, we grew revenue 23% in china over fiscal year '19, two-year revenue growth, 23%. that's double digit top-line growth much of that is a combination of

our new stores that we're opening, the new stores we're opening in china are performing at higher revenue levels and higher profitability than prior generations, which means the brand is resonating with our customers. and so, you know, i think this was a record quarter in china when you look at that top line revenue growth, the new stores that we've opened and the fact that we've increased digital, customer relationships in china to over 173 million and so we continue to -- the brand continues to resonate very well in china. you know, our comps have accelerated, two-year comps have accelerated, and we post 23% two-year revenue growth in china. >> the wise guys are telling me, wait a second, coffee went up 50% last week. i tell them that you actually thought that coffee could go up and you prepared for that. so could you explain to people how it's possible starbucks is not being hurt by the rise in coffee >> it's gone up significantly

lately, a lot of that is due to weather in brazil. what people don't know at starbucks we have a coffee buying strategy that we buy our green coffee 12 to 18 months in advance, so we are already price locked for more than 14 months, which means we've already purchased the green coffee that we need, the arabaca coffee certainly for the rest of this fiscal year and for most of fiscal year '22, and we've got it warehoused. not only do we have a great cost basis for that coffee, but we have the supply. adequate supply. we're not going to run out of co coffee, and we're going to have it at a good cost. >> on that note in terms of inflation, your cfo on the call did say your operating margin is tempered by two factors, one of which is rise in global inflation requiring continued incremental investments to support growth, and rising wages, your goal of course to get to 15 bucks in the u.s. in

line with the announcement you made so are operating margins going to be tempered for the foreseeable future as a result >> david, you got to consider we saw significant expansion in operating margin this quarter, and that's even with these inflationary headwinds so rachel did highlight the fact that there are some inflationary headwinds, and i think certainly we're going to continue to invest in our partners you know, we've always done that at starbucks we're going to continue to make the wage investments that we think are appropriate to recognize them for the great work they are doing to create that great experience for our customers in the stores. and so, you know, i see that as a good investment. >> right, but what are your expectations when it comes to inflation beyond obviously the inventory of coffee you have where you can sort of offset it? is it something you're concerned about preparing for or feel like you have -- you kind of know where things are headed? >> yeah, i'd say it's something that we know where things are headed and we've prepared for it and we're not concerned. i think, you know, the combination of, you know, we can use price in some cases, but we've got so much efficiency that we're getting off of, you

know the leverage that we're getting as we scale up in our stores you know, we can offset some of that inflationary pressure in terms of operating efficiency, some of it through price, and a lot of it through just being smart about how we run our business, and that's why our coffee sourcing strategy, you know, i think is a big asset there are no other companies that i know of that buy that far in advance and have that kind i just wuntd wonder how you are absorbing the data and what the trigger point is for closing a store, say in the u.k. or maybe the u.s. >> we manage our stores market by market. right now we have a solution to this pandemic and it's the vaccination. so, as long as we stay on the

front foot, getting as many people vaccinated around the world, we're going to continue to overcome this if it means wearing masks in our stores, we've been doing that throughout this quarter. in geographies in the united states that had more spread of this latest variant. and candidly, their comps were higher than the national average. so, i don't see this impacting us we can rapidly adapt to whatever happens with this variant. the fact there's vaccine out there, there's a solution to this and the more the world gets access to the vaccine and we get vaccinated, it's going to get better and better. >> there is something going on with the american consumer whole beverage i mean -- >> you know, i mentioned this shift.

we saw 74% of beverages led this last quarter in the united states were cold beverage. much of that is driven by the innovation we brought to market in cold brew, nitro cold brew, our refreshers those are all coffee-based cold beverages. the really positive thing is cold beverages really resonate with the gen z and millennial generation that younger generation is really embracing the cold beverages. and that's driving premium beverages and more customization, which is helping us expand margins. >> i want to help you for coming on i know the stock market isn't rewarding anything right now but once again starbucks back. thanks so much for coming on the show >> thanks, guys. >> we'll take a break here, as jim says dow's gone negative.

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got plenty of choices tonight. >> the market is angry people say costs are going up. they're looking for a way to say charley isn't doing well, which he is. when you need build a factory -- we're in a nobody cares environment, which means people want it to go down people are so thrilled to be negative so, let them be negative >> the things we didn't get to what did we miss >> the only one -- they said something cautionary they -- it's -- mattel has nothing cautionary the stock did go up ahead of it. mcdonald's is typical in the market oh, let's sell it. the let's sell it crowd, which

includes my partner to my left >> what? >> you say let's sell it >> when have i ever said anything like that >> no, just you're a foil. >> yes, i'm a foil and sometimes a fool >> no, you're never a fool let them sell. let them just be unhappy >> jim, we'll see you at 6:00. "mad money" at 6:00 with jim cramer we're going to speak to harley fink

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redefining insurance. good wednesday morning welcome to "squawk on the street." m markets a little mixed here. dow's down 240 as we wrestle with some of the biggest earnings this season apple, microsoft, boeing and so forpgt, along with the fed decision later today >> here are three of the big movers we're watching. we're going to start with apple

reporting a massive report on the bottom lines they warn the negative impact of the chip shortage would worsen this quarter you can see they're down about 1.5% right now and teladoc, shares down 5%. and finally, alphabet shares rising after they reported record profit thanks to a surge in online advertising. revenue up 69% from last year. so, here to break town the quarter with us. >> as you said it was a blow-out quarter. what caught my eye and a lot of wall street's eye was the unit of youtube just incredible numbers there. revenue up more than 80% revenue hit $7 billion that's almost what netflix saw for the same quarter they have commentary about youtube shorts, the tiktok competitor

15 million daily views that was surpassed in the last quarter. last point i'll put on this is 120 million people are watching youtube on their tv. so, raises the question why aren't we talking about youtube more when it comes to the streaming wars a lot of questions focussed around further opportunity in the space like commerce. >> yeah. meantime, cloud -- we talk about the two heavy waikts, amazon and microsoft. what are we seeing in terms of alphabet's ability to gain more traction >> alphabet, google crowd is seen as the pony between microsoft and amazon market share is much lower what was notable is google cloud was able to better its margins so, increase the profitability but it cut it substantially from

the same quarter of last year. she said investment would continue and you just ran through those advertising numbers. it's more than enough money to pay for the very strategic important business for alphabet's future. >> we have facebook earnings coming as well you'll cover that the next morning, certainly one would expect facebook saw great strength, when it comes to ads. >> and we saw twitter and snap last week, right good results and representing the rebound in digital ads so, google followed suit it raises the bar for facebook you have to wonder how did they screw this up. expectation were high for google the best performing mega cap of the year and on a day when some of the gains of other tech companies were muted

alphabet is up what? nearly 4%? the ad model expectations are extremely high >> thank you turning back to apple. that stock, as you've seen, is down a bit down about 1.4% over the chip shortage over shadowing what were enormous sales 36% was the increase from a year ago. joining us is doury -- good to have you what was your take on the quarter overall at this point? and particularly given the response of the stock, obviously it had been up over the last few weeks, let's call the last month. but backing off on numbers that will likely never see a 36% jump in revenue again >> look, the june numbers much better than what anyone thought they would be.

36% growth was impressive. i think the debate on apple ends up being the durability of the growth, the sustainability and the big dynamic, in our estimate of supply chain constrains on iphones in september our stance would be, listen, what this does is enable apple to take september with a good back log because i think fundamentally, you don't destroy apple. you can get the iphone users wait for it. you're not going to get an iphone in that time frame. i think the potential to grow in december is higher than it was 12 hours ago, 24 hours ago, which i think is a big positive for the stock. >> can they maintain this kind of revenue growth? the market seems to be saying that was an incredible quarter but. >> i would be shocked if it can

maintain 36% growth, right so, the growth rates have to slow down. but if they can slow down to a more logical and on the heels of iphone slowing down and i call them fascinating services, as we accelerate, telling you that you and i are engaging a lot more as we go forward. and they probably -- i think good decent rates but still solidly positive in december and next year. >> so, to dig into that a little more, are we in a super cycle where this new iphone is concerned or given the fact that services and other segments of the company are growing as well, does that smooth out a little bit? >> i would say the start of a

super long cycle i think the 5g penetration rates are low. you will see continued strength of yourself. and listen, there are a billion iphone users out in the world today. a little less than half of them are on the services side that will give you a better, longer growth on the monetization to have >> what's going on with the apple car? and i ask that because elon musk threw shade tesla's way this week >> listen, apple, as a company will barely acknowledge they have an iphone coming out in the next 45 days they are secretive so, this will not give you heads

up on what's going on. if you listen to supply chain folks, we think there's potential this will come out and high probability it's a 2024/2025 event. you have to start seeing it in the wild some time next year for test purposes. >> you know, cook did talk about the covid recovery being uneven around the world we know they were in closing stores and then opening in the fall i wonder how material that would be if we were to hear they're start closing stores to customers once again. >> i will say especially in u.s. doors matter a lot americans, more than other places, like to see and touch and feel to buy. you start to see that with apple. when they started closing stores

if you get thoo point of stores closing, it could -- >> appreciate your time. thank you. as we head to a quick break, here's a look at the road map for the rest of the hour more breakdowns and earnings movers and where they go from here and shopify president, and shares under pressure. and finally the cdc issues new mask guidance after data on breakthrough infections. dow's down 84. the pursuit is on. the pursuit of outperformance at pgim. with deep expertise to outthink across multiple asset classes, actively managing investments in the world's public and private markets. outscale, with the resources to serve 1,500 clients

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♪ ♪ ♪ ♪ shopify achieves its first $1 billion revenue quarter on record joining us this morning for a cnbc exclusive, shopify's ceo. harley finklestein you had interesting comments about e commerce normalizing stock did trade down a little at the open but has recovered can you explain a little further what you've been trying to convey

>> this has been a year of great uncertainty for entrepreneurs and small business we want to give entrepreneurs around the world the best chance to create certainty. we're building essential infrastructure we want to allow as many people to participate in entrepreneurship but on the post pandemic future, retail has changed forever, online and off line are no longer mutually exclusive. we want to insure it remains strong the second part of the reality is we think shopify's becoming the default operator i talked to netflix and james purse and robert and we're betting on a future of commerce, which makes it possible for every brand and merchant to show up in a unique way. i think they demonstrate that it's not a fad and that our merchants are driving the economic recovery and that led

to us achieving our first billion dollar quarter >> up 40 that's about 2 billion above what the street was looking for. should investors get used to that kind of beat on that metric >> they reopened their doors and they achieved the highest ever at $42 billion in fact, gmv was two times what it was two years ago and i think that underscores how transformational these two years have been for kprs and we're seeing retail sales growing. there's about a 60 basis point rise from june verses may and 18% jump compared to june 2020 so, the future of commerce, i think, is bright consumers want to buy from independent brands and those brands are on shopify. >> you just said basically the pandemic has helped fundamentally change retail forever.

you sited some of the strong growth you've seen e commerce and the shift there has been a secular growth trend for a number of years now. my question for you is, how sustainable are these robust growth rates that you have been seeing >> morgan, it's a great question the reopen of the economy is a return to normalcy prepandemic but one thing that will never go back is the way consumers are buying e-commerce has five years wurkt of advancement in a matter of 12 months, maybe less and i think e-commerce is here to stay in terms of being a main stay in commerce and our version of normal is still pretty spectacular revenue jumped 57% year over year it's up year over year and at the same time as traditional banks are pulling back on things

like lending, we funded more than $360 million of capitol to our merchants. as u.s. commerce department is reporting things going well, it's an exciting time for independent brands and merchants and i don't think the future is online or off line it's omni channel. it's going to be like talking about a color tv a couple of years from now >> are we seeing more business creation >> u.s. has said business creation has record highs. we're not necessarily seeing the same highs but we're seeing a lot of merchants on shopify and the fact we're giving out record numbers of capitol that goes into inventory does indicate we have a very healthy small business economy and they're going to be the rebuilders of it in the post pandemic world

>> speaking of things not getting back, your employees may never go back to the office. you said you're a digital by default company. what are you seeing? what have you seen in terms of benefits and/or things that perhaps concern you about creating culture and how has it effected your ability to either attract or maintain talent >> you've been following the shopify story since ipo, maybe before that. you know one of the limitations is we were primarily canadian based. that's over now. our talent opportunities is a global talent pool the ability to hire the very best people for everyone of our areas of business, they don't have to move to canada. they can move anywhere they want we're already finding ways to insure our people are getting together safely from time to time

we call it bursting. but canada is still quite a bit behind the u.s. in terms of reopening. we think this digital-by-design model is going to be great for shopify. >> >>m i'm just curious when this is all over, which we hope is as soon as possible, how many people will you think are going to come to the office? >> we don't think so 10 to 15% of the time, they will spend time together, wliltsz whether it's a week together on planning, brain storming or execution on a project at the final stages but for the most part, it will be a remote company. >> and finally, harley, one story more uniquely american is the impact of stimulus checks on the consumer and consumer mentality. i wonder what do you think retail looks like without a

continuing stream of stimulus money? >> we haven't seen stimulus money in other regions outside the u.s. and yet we're seeing high gm in our retail. if you look at the u.k., which has been -- has had an open economy and physical stores have been open for longer than the united states, you're seeing more people buying it may have given a small bump but i think the consumer wants to buy and they want to buy more and more from local, independent businesses powered by shopify. >> stock has turned around on some of your comments. thanks for the time. >> thank you so much well, spotify, mcdonald's, starbucks and many more earnings movers are ahead as we head to break, watch a & d. amidst what was strong demand for chips.

>> it's a very strong demand environment and in particular, we're seeing a strong preference across our business. we're very happy with our results. we nearly doubled revenue, tripled profitability. and it starts with -- there's high demand. we're in the right markets competition beat us again. how? they have a better finance system than we do. i feel like they might have a better finance system than we do. workday. how do they make better decisions faster? workday. it's got to be something workday. i think i got something. work... hey, rob, you're on mute. hello! hey, rob, there he is. workday. the finance, hr and planning system for a changing world.

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time for etf spotlight the ticker there is up about 1.6% this morning. spotify, which is down, has been down as much as 7/8%, they did report numbers they beat estimates but saw smaller than expected growth in monthly active users and that was the key, falling below prior guidance, down about 8.5%. and more than 40% off of its 52-week high >> also down this morning is mcdonald's one of the many names reporting earnings

kate rodgers has that as it's come off an all-time high. >> and it was a really strong second quarter for mcdonald's with beats on the top and bottom line in the u.s. it's better than the 21.4 projected on a two-year basis. well above 2019 prepandemic levels u.s. comis benefitting from strong average check growth, thanks to many price hikes the crispy chicken sandwich, along with growth in delivery and digital boosting comps and the bts meal led to a bump in chicken nuggets and socialization around the globe better than the 38.9% analysts were expecting on a two-year basis, up 6.9% and reporting year to date and gave an update on the new roiltd

program with nearly 22 million active app users the company says it will be moving aggressively to bring the loyalty program to other top markets. this morning mcdonald's named, for the first time a chief officer to enhance the customer experience, saying the next chapter will be based on digital. the company is aiming for close to 100% by labor day so long as delta does not disrupt those plans. and it's improving the company wages have increased at the company-owned stores and they're trying out things like free child care and sign-on bonuses and brought down the service times by just over three seconds. back to you. >> i thought it was interesting. the labor staffing issues, they cost money

although, it looks like they took about 6% pricing in the u.s. as they look for companies that can absorb the higher costs. >> they did say the menu price hikes, albe it slight, did help boost comps. and the other thing we continue to see at mcdonald's is boosting of the staples chicken nuggets, been around forever and add it to btf. so, i'll be interested to see who they team up with next on at the platform >> kate rodgers, thank you shares of mcdonald's down 2% right now. the ceo of chug joins us next. and as we head to break, boeing shares, speaking of stronger than expected results, those are rallying as aircraft demand recovers, shares are up 4.5% ceo calhoun joined us exclusively last hour.

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microsoft beats estimates on the top of the bottom line, thanks to significant innovations in cloud fx neutral at 45 people are focusesing on that as the point of debate. >> it's about where the whisper number was cnbc did a polling of analysts that was a bit broader of street account. and a fraction above 45 is what they were looking for. we said it was going to be a balance between software

strength, that people were leaning in to software strengths. and really, the software strength won out here. one of the examples, linkedin, 10 billion in annual revenue compare that to anybody but facebook in the social space and it's pretty impressive >> revenue up 21 and i'm just looking, john, at some of the target increases 340. it's -- as david said earlier this morning, it's unique to see companies of this size post revenue growth in the 20s. >> it is but here's the challenge it's this portfolio company that's going head-to-head with these targeted or best-of-read plays. sales force officially got together and look at what zoom is doing all of that potentially competes

with office and teams. 10 years ago you would have said google and g suite are going to eat microsoft's lunch. nobody's saying that anymore the intelligent cloud business grew 20% they want to have the kind of leadership below the ceo level and the focus to take on all those challenges in so many areas. >> does this move the needle, do you think, in our framework of how to look at pc growth >> i think it's going to mean something different going forward. they have a cloud pc that's going to be so configurable for enterprise and then you're going to have to think about what the pc is differently. is the hardware itself the operating system on top of that who benefits, depending what thing is selling

the stuff on the back end or the edge and how much influence does microsoft have over it so, they're working at both ends they've been incredibly smart to this point but the competition is so hot. >> finally teams usage, obviously, driving strong adoption ties right into the real-world debate of how often we're going to use remote work tools, verses the office we spoke to amc's lisa sue and she said it's going to be average. >> showing how hard it is going to be for anybody to catch her and three days a week and also with the flexibility whether you're in or out of the office, they would argue software is what gets you connected to people, either in the office or out of the office. so, when companies aren't sure how many days a week people are going to be in, they need

everybody on the same platforms, everybody accessible that's microsoft's play. the likes of zoom are trying to build on the momentum that they got in the pandemic to take more share in this area, which, right now, belongs to microsoft. >> all right, john, thanks for breaking it down for us. we'll see you in the next hour on "tech check." insurance giant, chubb out with second earnings as well. down 2%. company beetd analysts forcasts. joining us now is chair ceo. >> thanks for having me. >> so, record earnings, growth across the board in terms of net premiums given what would you say is the read through to economic activity and not just north america but through the lens of your company? >> i think the economy in the

u.s. is broad based reasonably strong it wasn't a recession. we put the economy into a coma for a time out of necessity. and so, i think business is bouncing back strongly and we benefit from that in our growth and at the same time, property casualty is a sickliccal business. we're underwriters we're in a period of time we can get paid adequately to assume more risk. and so, chubb is distinguishing itself verses the rest of the industry in terms of its growth at this time given favorable underwriting conditions >> yeah. i mean, and certainly in terms of the pricing environment, robust rates it's almost like a sweet spot right now. we haven't seen, knock on wood, any major catastrophes spewing

those results. that being said, we're seeing more of the secondary perils, whether it's the wildfires or land slides in recent weeks around the u.s how are you modeling for those risks and what does that mean, not only for underwriting, but writing insurance? >> when we look atted aiate -- adequate risk adjustment pricing, we consider the risks of climate change. we assume. we accept the exposure, we assume we're going to have losses from various perils, whether it's fire, wildfire, flood, etc. and we believe we're getting adequately paid to take that kind of risk. >> how are you modeling for cyber? obviously we've seen so many hacks?

i know you're involved in cyber security insurance as well are the risks verses rates matching up right now? >> you know, rates are one thing and rates are rising to reflect the increased exposure and the more hostile environment around -- surrounding cyber and cyber attacks. on the other hand, cyber has a systemic nature to it as well. because of the interconnected nature of all things digital like a pandemic, you could have a cyber attacks that have no geographic bound and no time limit. so, cyber as the potential to cause serious catastrophic loss. and the insurance industry is not yet really recognizing that reality. as it underwrites cyber.

chubb is at the leading edge of addressing that within our underwriting processes and at the same time -- and the coverages we sell and at the same time we're working raising our voice in the public policy arena as we discourse around both public and private sector response and we're working with tech companies, cyber security companies, and the government on policy to address. >> earlier this year you made a brief attempt to acquire hartford, 65 bucks a share and you backed off when they didn't seem to have interest. is consolidation in your industry still something you think you want to pursue >> well, consolidation of the industry is something that all the industry layers together

will decide upon as far as chubb and acquisitions, we have, in our history, pursued organic growth, chaz represented the majority of our growth we're builders and at the same time acquisitions that represent what we're doing organically our appetite has not diminished whatsoever for organic growth and acquisitions that compliment at the same time, we're patient, disciplined. money doesn't burn a hole in our pocket when it's the right thing and it's prielsed to a -- priced to achieve good shareholder returns, then we wouldn't hesitate to pull the trigger >> you compared cyber, and i guess modtling the risk in sieber to the pandemic

what does coverage look like it's been such controversy and topic of litigation. i imagine there's going to be something more substantial that is going to have to come out of this and is it public, private, something else >> let's go across the economy in essence, it's insuring the economy itself and the interruption of the economy. that's roughly a trillion dollar a month price tag or more. the insurance industry hardly has the capitol to support that kind of exposure in my judgment the industry can take risk but it has to be in recognition of that limitation and therefore has to be in partnership with the government. whereas if we were going to

underwrite it and in a broad way, not a targeted way as we do today, where we give a limited basis to certain cohorts, like broadway shows, that kind of thing. the government would have to take the quote/unquote tail risk the insurance industry could assume risk up to a certain ag ruigate ---ing a ruigated dollar amount of loss chubb has proposals like that that we have been floating in fact, i testified last week in congress about that notion. so, there is a dialogue that has begun between the public and private sector, where there will be a decision made in due course as to whether something like that is in the interest of society broadly. >> all right

a topic that will continue to evolve and we'll continue to watch. it's time for an olympic update and colin has that for us. >> simone biles will not compete in the individuals all around finals at the olympics she won the event at the olympics in brazil in a tweet, u.s.a. gymnastics applauded her bravery in prioritizing her well being. no decision on whether she'll participate in the individual finals katy ledecky with a victory in a new olympics event, the 1500-meter free style. she said she just wanted to get the job done, thinking of all the great u.s. swimmers who have not had the opportunity to compete in the longer race this after a disappointing performance in the 200-meter free style

u.s. divers andrew and michael hickson won silver in the synchronized diving competition. in the medal count, u.s. in first place. back to you. >> frank, thank you. well, crypto currencies, what are they good for according to yesterday's senate banking hearing, not much. those details are next and as we return from break, shares of starbucks. and the coffee chain did lower its outlook for sales in china ceo joined us first on cnbc last hour >> if it means wearing masks in our stores, we're happy to do that and we've been doing that throughout our quarter in geographies in the united states that had more spread of this latest variant and

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welcome back to "squawk on the street." bitcoin just below 40,000 tlf. here's what senator elizabeth warren had to say about the potential benefits of digital currency on "squawk box. >> there has been an enormous failure by the big banks to reach consumers all across the country. talk about the millions of people who are 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 and rent just to get an edge into the financial system because they don't have standard checking accounts digital currency and central bank digital currency may be an answer there because costs are extraordinarily low for being able to transact >> now, she also used the term "snake oil" when talking about the crypto currency market as well joining us is digital currency cofounder. want your response to senator warren and the hearing yesterday and some of the commentary that came out from lawmakers, who remain so skeptical about this asset class. >> thanks for having me and she's spot on. consumers want this.

her constituents that are millennials, gen z, gen x, they need this. that's the one piece she's got right is the consumers want crypto currencies and i think that's where this is developing from is from there >> not all crypto currencies are created equal. she talked about central bank digital currencies, we see bitcoin and there is either and some of the other names we talk about so regularly on cnbc as well how do you break down those differences and what itcould mean in terms of regulation because the devil will be in the details? >> i think you have some today with your customer and money laundering rules in place and yes, some of the other crypto currencies are less than five years old. cardano, polka dot they're hoping make the system

and all financial services better notful regulation will be welcome by our company >> as a trading platform, what do you make of the recent price action we have seen in the likes of bitcoin there was a lot of pointing to that questionably sourced report about amazon looking into crypto currencies potentially towards the owned of the year. the fact we've been hovering just above, just below, what would you chalk that up to >> i think we've seen it grow 30% in the last month or so. we've seen positive news, the credit card processers, mastercard and visa are both coming up with crypto products all positive for crypto currency we have a lot more news coming in front of us i think more adoption, more

retail consumers and more use in credit cards, etc. i believe that's why we've increased is all this new adoption >> you just touched on it, but given the fact we do have robin hood going public tomorrow and 20% of currency is crypto. how closely are it mean, not on for your company but for trading activity and interest in the industry overall >> yeah. we're excited to see robinhood go public. another company that has crypto that joins us. we were the first to actually be public with the cryptocurrency company up in the canadians markets of the trooronto advente exchange it will speed's adoption the adoption of cryptocurrency is actually accelerating, going faster than the adoption of the internet someone like robinhood becoming public will help all of us grow the business and the ecosystem. >> it's been an interesting week

regarding bitcoin and amazon had that report amazon pushed back on later. i wonder theoretically if amazon said, yeah, directionally definitely thinking about that what do you think that would do for the price action >> again, that's a positive step for cryptocurrency's, bitcoin, all cryptocurrencies the payment side of this is getting better, more efficient, more people coming in. we're using our systems now for payment. that's where this is all going, and then you have all the other product, projects, as i mentioned, with all ternative points becoming more efficient a major step when you have someone even thinking about it and going in that direction. >> steve, thanks for joining us today. >> thanks nor having me. learning language, kcompany gro lingo go public today.

a eat hour ahead on "techcheck." stay with us. >> announcer: crypto decoded is brought to you by -- (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.

welcome back to "squawk on the street." i'm christina. stocks mixed most sectors trading lower this morning. the tech sector is a relative outperformer, though, and thanks in part to the chip stocks speaking of chip stocks, amd one of the biggest gainers after its earnings revenue and outlook topped expectations. micron andnxp semiconductors and applied materials among leaders in the chip stocks. more "squawk on the street" on the break stay with us. don't like surprises? [ watch vibrates ] proactive notifications from fidelity keep you tuned in all day long. so when something happens that could affect your portfolio, you can act quickly.

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- like the samsung galaxy s21 5g for free. the cdc, of course, out with new guidance yesterday telling vaccinated individuals in areas with high caseloads or high transmission, it is time to mask up again the move mark as change from guidance in may saying vaccinated people no longer needed to mask or physically distance in most indoor and certainly outdoor settings tied to new data showing breakthroughs of the fully vaccinated, rare, can be just as contagious as amongst the unvaccinated not everybody is convinced what the former commissioner

said about the news. >> i don't think that's the case, telling people to wear masks all the time we're furtherer into this delta wave and picking up. saying it for week another two, three weeks through this this new guidance will have a negligible impact. >> of course, morgan, i've been saying anybody i've listened to most closely, it is that gentleman, because he has been sort of right more often than anybody else the data is the most important thing. we all, i think, would benefit from seeing more of the data the data the cdc is using to come to its conclusions. the data all of us could use in terms of making informed decisions about mask-wearing and anything else involving how we deal with the virus at this point. obviously, we're all vaccinated. but still -- >> yeah. an incredible amount of confusion. certainly whiplash had with some of the policy stances and reversals et cetera by the cdc

and the government throughout this entire pandemic process. regardless of administration, who's at the helm. but it's like, follow the science and data also in that conversation with dr. gottlieb, how much data is the cdc actually collecting around these breakthrough cases? and just when will we have our hands on that and the understanding around that? it will not likely be until weeks or months from now back to this point. that does it for us here go to "techcheck" now. ♪ good wednesday morning welcome to a huge hour of "techcheck." i'm joe kernen with jon fortt and deirdre bosa today, j