o. good morning robinhood shares surging if you missed it yesterday, 24% gain we'll dig into the big moves straight ahead meantime, lyft hitting a profitability milestone. a run through the numbers with a first on cnbc interview with the company's co-founder plus, news on the covid front. new york city will require vaccine proof. wednesday, august 4th, 2021. "squawk box" begins right now.

good morning, everybody. welcome to "squawk box" here on cnbc i'm becky quick along with joe kernen along with andrew ross sorkin things are a little bit weaker this comes after very strong day for both the s&p 500 and the dow. s&p 500 actually set a record high yesterday today is down 4 points dow futures came within 28 points of its own record right now it's indicated down by 38 points. you can see the nasdaq is indicated up right now it's indicated up by 3.5 points this morning. then if you want to check out treasury yields, you'll see right now it looks like the 10-year note still under that extreme pressure we can't figure out why this is happening.

the 10-year is yielding 1.18%. >> new york city becoming the first u.s. city to require proof of vaccination for indoor dining, gyms, mayor de blasio saying it was a move to put pressure on the virus spreading. it's six times the number back in june. president biden praised the move and said other cities should follow new york's lead so a lot going on in new york. we will see whether other businesses also follow that lead in addition to potentially cities separately, the fda has accelerated the timetable to fully approve the pfizer vaccine. the agency's aiming to complete that process by the start of next month the fda said the leaders recognize approval might inspire more confidence and it has taken

an all hands on approach hospitals, government agencies, major cities are expected to mandate the vaccine once it is fully approved so a lot of things moving very fast on the vaccine front now. >> getting weird tyson wants to have all employees but the union pushing back >> yeah. >> we had that story yesterday right at the top of the show with the local teachers union. >> the carrot and stick approach you saw vanguard offering $1,000 you have to have it happen or you're not allowed to come in. >> it seems pretty clear that where we're having problems, it's concentrated in the unvaccinated >> yes. >> in the u.k., what -- are they way above us

>> in full vaccinations, yes >> 90% they're staying open the delta variant is not the same issue there it doesn't -- it's not rocket surgery. meantime, in san francisco the -- go ahead, andrew. >> no, i was just going to say we also had, you know, tyson on one side but then we had ed bastian, you know, from delta on the other. he had an opportunity, he could decide he wanted to mandate it. >> it's not fully approved there is, i guess, some -- especially the liability instead of full fda approval. >> yours is a tougher question, andrew it's a bigger lift to require your customers who come in, particularly if the other airlines don't do it you see it in new york city

where they say you have to show proof but it's probably a lot to ask -- >> i'll take the other side of it i think that if delta or one particular airline were to go first, they would actually get more people coming on their planes who are vaccinated. meaning, you'd actually fill up the planes because it would become a competitive advantage t. would disappear because hopefully others would do a similar thing. look, people wanted to go to danny myers indoor restaurants because they knew if they were going to eat indoors. >> my point is you don't need to have companies agree they'll have the employees vaccinated. it's a much higher level to say you're going to have all of your customers vaccinated >> i think it's hea great busins

case to be made. >> the crappy little cars -- one of my little cars has handwritten gobble degook on it. >> the cards. >> you can buy the cards on amazon >> yeah. i could literally get one of those. >> that's why, the truth is -- now we get into a privacy issue. in the state of new york, there's an app we've shown it on the air. it's called the new york excelsior app. it has a qr code when you put your information in, it tracks and checks to see whether you were actually vaccinated i think we'll move towards that. >> when? nothing happening yet. that's why i don't understand how you prove it. no, no, in new york that's what they're -- that's what they're looking to do. they built this app with ibm a couple of months ago now, back in march and i think what's

going to start to happen is stores and gyms will start to use it in a meaningful way >> all right move on here, talk about -- >> more of the same. >> talk about viruses for more again, all day hopefully some day we won't. meantime, in san francisco the public health department said it would allow people who receive the j&j single dose vaccine to receive a single dose of one of the mrna companies, either pfizer or moderna they refused to call them booster shots. j&j requires one dose. recipients are considered fully vaccinated two weeks after you receive it several health officials and the cdc do not recommend them at this time. >> china is facing pockets of

covid resurgence in major cities from beijing to wuhan. china officials confirm 90 new cases. there's a strict crackdown on movement that could hurt the economy and moving around. the city of beijing imposed restrictions 90 cases >> right >> 1.4 billion people. >> surging >> maybe it is 91. maybe 90 nothing -- not more than 92 though no idea. when we come back we're going to talk about shares of robinhood up again after yesterday's 24% gain we'll talk about the surge in retailer investor interest next.

later, the return to work plan honeywell will talk about their plan to get people in the office "squawk box" will be right back. this is my granddaughter...she's cute like her grandpa. voya doesn't just help me get to retirement... ...they're with me all the way through it. voya. be confident to and through retirement.

♪ someone once told me, that i should get used to people staring. so i did. it's okay, you can stare. when you're a two-time gold medalist, it comes with the territory. 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 ♪ put a little love in your heart - david ruffin ♪ matching your job description. my bad, my bad... good race! -you too! you were tough out there... thank you, i'm getting you next time though. oh i got you, i got you. hamblin goes down. d'agostino helps hamblin back up.

are you okay? -yeah. we are watching shares of robinhood this morning that company's stock soaring yesterday. up by 24% yesterday pushing well

past thursday's $38 ipo price. check it out this morning, it's up almost another 10%. shares now trading at 51.18. robinhood appears to be garnering interest from investors. it was a top traded stock on fidelity yesterday which is generally a pretty good proxy for individual investor interest on any given day joining us to talk about what's behind the surge is stephanie wing stephanie, what do you think is this the next meme stock? >> good morning, becky it certainly has the interest from everybody, whether you're involved in the stock itself or not. i think it's an interesting story. a payment for crypto kicker if

you will if you look at payment for order flow data, that number fell 23% in the second quarter. it tells me payment for order flow is very competitive, right? the crypto kicker is probably helping robinhood. they're probably gaining shares. all that being said, it's not -- at 11 times priced to fail the key founders have 67% voting interest that's a little bit of a yellow flag i can make a case for the growth story. i can't make a case for the valuation story. then i step back is retail trading at a peak? as we go back to the office, maybe it's prolonged as we go back to the office, are we going to see the volumes we've been seeing. >> in other words, you don't own

these shares >> i do not own -- i do own morgan stanley that owns etrade. that's a little bit different story, of course, more diversified overall but etrade is also in the game. i like the game. i'm just trying to figure out the valuation. >> you can look at a lot of different places the markets themselves continuing to hit the s&p. okay we're looking at the high levels we're looking at covid taking off again, the delta variation the market doesn't karen or is that because they think this keeps the if he had at bay >> i think it's all of the above of what you said, right? i think delta is a concern mask mandates are a concern.

seasonality. october we seem to get a pickup. all that being said, we have to worry about something, becky i worry when i don't worry that means we're being complacent. >> it worries me just because we keep hitting these new highs and nothing seems to budge then again, you know, that's been the case for a long time and it's been the right call if you've been long >> that's exactly right. that's pointing to liquidity fed is not going to do anything at jackson hole. they may not talk about tape perfecting until the fourth quarter. let's just listen to powell. he's who matters, nobody else. he believes inflation is transitory i don't agree with it, but we have to stay with where he is. the fed is getting an infrastructure bill. the economy is posting pretty good numbers

i look at leading economic indicators and the new order in ism is above 60 in 13 consecutive months that's an indicator for cap exand earnings going forwards. we're still getting goods data inventories at a 5-year low. yes, we're going to slow but we're not going to flow to recession. we'll be above trend next year they continue to remain strong we're running 80% year over year growth that's not sustainable. >> we may be earning peak growth but the growth doesn't fall off a cliff. >> that's what i believe i think you're going to see 9% growth this year 4% next year

>> let me throw one more conundrum your way why is the 10-year at 1.2% >> we're all scratching our heads. i think the 10-year peaked four months ago when growth peaked. so we're starting to see this whole story of slowing growth. again, it is slowing but i don't think we're going back to trend. that's number one. the fed intervention, the doj intervention, ecb intervention and then of course you have to think about where is everybody positioned i think people are positioned for higher rates, lower bonds. you have a technical issue going on as well there's no question about it, the 10-year is telling you we're going to slow. i don't think we're going to slow to a recession or trend growth there are other factors. >> you think the bond market is right, the stock market is right or is this a case where they could both actually be right >> they could both be right. the equity market is definitely

right. looking at the economy, cons consumers, earnings, i think equity has it priced right is the market expensive? yeah, of course it's expensiexp. the bond market could be right i don't want to disrespect them, they're smart people, it's skewed i think given what's going on with the fed. >> thank you for tackling all of these unknowable questions sounds pretty good tough questions. >> yeah, appreciate it. >> have a great day. >> okay. see ya coming up when we return, a ceo exit of products pipeline in jeopardy and $3 billion wiped off the books. it's a flood of bad news for one recent hot ipo and we're going to talk all about it the full story you don't want to miss this after the break. that i had growing up. and that was important for me because you can't be what you can't see. the ey entrepreneurs access network

has a tremendous impact on my business and other african american and latino entrepreneurs across this country because they give access to networks, business opportunities and capital.

welcome back to "squawk box" this morning we are watching shares of lyft posting an adjusted quarterly profit three months ahead of target which says it's going to remain profitable on that basis going forward. it's warning revenue will decline this quarter due to ongoing driver shortages and warnings of the spread of delta variant. john zimmer is going to join us this morning at 8:45 a.m. eastern time we'll have a conversation with him about what's happening in the world of ride sharing and of course the impact of the delta variant. meantime, shares of match are

failing to push revenues above estimates. the pandemic is failing to take a toll on the dating environment. they're showing signs of strength with room to run as they rise on the vaccine curve they tell readers to, quote, enjoy the rest of the summer and vax that thang up. and this morning's decline would essentially wipe out the stock's gain for the year. so dating not exactly the comeback story that some were expecting. >> remember that ad, that viral ad that you tweeted out. >> yes yes. where everyone's licking each other. >> not that summer >> right delta. i wonder whether delta is going to have a branding problem

i think about corona beer and i think they have a problem. >> joe brought that up >> i think that's over i bought a 12-pack, corona light. >> you're vaccinated. >> i know it's not filled with virus. >> you're vaccinated so it's fine. >> i'm double vaxxed i'll go for three. tell me where to go. >> you might feel it who knows. >> i felt it on my second one. >> i didn't feel either one of them i told you the story i felt like i had a slight hangover after the second. i didn't i had a couplemargaritas the night before >> explains a lot. >> go figure >> anyway, we referenced this story before the break if you want to take a look at shares of zymergen it's plunging after it said revenue from the experimental products won't be coming any time soon. they priced the ipo a little

more than three times the expected range at $31. the company no longer expects to generate revenue in 2021 revenue next year will be what they call immaterial they announced the ceo and co-founder josh hoffman is stepping down under mutual agreement and will be replaced on an acting basis by former illumina ceo jay flatly. mutual language. i quit, you're fired, you can't quit. >> olympics, very few times. andrew, you cry. i'm not a cryer. on the way in this morning i definitely -- maybe it was -- i had something in my eye. i'm not sure what it was it can bring out moments that are so amazing >> of emotion. >> of emotion. >> super sydney.

she was a senior, union catholic she was 17 in rio. the youngest athlete since 1972. she won the gold watching it happen it's in the papers don't blame me for letting you know it happened father and mother both runners the first already to break 52 seconds in the 400 meter hurdle and then both her and dalilah muhammad of queens set records gold and silver for the united states man, it was amazing. big watch parents. it wasanticipating watching

this pretty amazing when someone from where i live tows this. >> darren labelle said she may be the most marketable of all the olympic athletes he couldn't believe nike didn't get picked up. another shoe company swooped in. >> new balance. >> was it new balance? >> yeah. >> she may be the most marketable athlete that you have coming out of the olympics. >> yeah. go, syd, go. s-y-d is her twieter sflag. >> wow i mean -- >> say what you mean, andrew you mean what -- >> i think owe means ouch. >> exactly. >> i hope that doesn't hurt her chances.

it won't it was great. >> did you see the wrestler that won the gold she was awesome too. >> i love it here. i love living here everything >> i'm not requesting to get off on a rant. i take it back janet yellen will speak about the infrastructure bill and the president's economic if agenda hey lily, i need a new wireless plan for my business, but all my employees need something different. oh, we can help with that. okay, imagine this... your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown, your sales rep lisa has to send some files, asap!

so basically i can pick the right plan for each employee... yeah i should've just led with that... with at&t business... you can pick the best plan for each employee and only pay for the features they need. [music plays.] ♪♪ ♪♪ ♪♪

good morning, andrew treasury secretary janet yellen will make the macro economic case arguing ambitious policies are necessary to address the economy's most intractable problems we have seen a copy of the speech that she'll deliver in atlanta later this morning in it she called out four disruptive forces. declining labor forces, racial inequality and climate change. she said combatting that is essential to remaining the super power. quote, we've been used to america being the preeminent

economic power we aren't destinedto stay that way but with these investments i believe we will. she's selling the investments to the public it's to georgia, the state that gave democrats control of the senate and, therefore, control of washington. she'll be speaking alongside atlantic mayor kesha lands bottom she'll talk with leaders of the latino community there's a meeting with ceos. guys, today it is clear yellen is now fully transitioned from her days of actively avoiding politics while she was at the federal reserve to now jumping into the political fray. back over to you >> ylan, i think the big question is we're always trying to handicap what's going to happen with this bill, where does it really stand and frankly when she makes speeches like this or others in the administration do, whether you think they move the needle >> yeah. so i think right now the administration is trying to do

is just sort of have a full-court press and selling this to the public right now bipartisan infrastructure bill is wending its way through the senate it's not stuck but it's dragging itself along they're building that public pressure and momentum to encourage senators and lawmakers to get it over the finish line they argued very strongly was that that bill, that legislation was popular with republicans and democrats, maybe not in washington but out in america. so they're trying to build that support to make that argument once again. >> okay. we will see what happens lots of people watching and waiting. meantime, in some other news out of washington, the cdc issuing a new eviction ban for the next 60 days i want to get over to eamon javers good morning to you, eamon. >> good morning to you, andrew renters will have a little bit

of extra time in order to get their payment together take a look at what we know about this cdc order yesterday it's very targeted so that's at least part of the argument why it's a legitimate thing for the cdc to do. they're saying evictions for failure to make rent could be detrimental to public health the order is going to expire on october 3rd. you have 60 days here. it applies in counties that experience high levels of community transition it is targeted to those specific areas. it allows additional time for rent relief to reach renters and vaccination rates. all of this comes after congresswoman began sleeping outside on the capitol steps on friday in order to call attention to the potential homelessness problem that would result from lifting the existing eviction moratorium over the weekend. she argues it would push a lot of people in this country into

homelessness that campaign getting a lot of attention in the media and really putting pressure on the biden administration from their political left wing in order to take this step not everybody is pleased with this, of course. the landlords, those are the folks who are going to have to eat the cost in the short term the national association of home builders putting out a statement yesterday saying this is the wrong way to go about all of this they say state and local governments should be putting more effort into connecting renters with federal funds designed to help them make their payments the federal government has provided billions of dollars for this purpose of course, andrew, one of the problems is a lot of the rental aid has been in the various aid bills. it hasn't made its way to bill yet. they would like to get the money on to renters and let the economy get back to more of a state of normal. >> in terms of getting that money to those renters, what's

the time line look like at this point? >> well, the biden administration says that they are going to push for that to happen and they say that 60-day window will allow time for some of that money to go out. they're saying that, you know, over that period of time more renters, they're not saying everybody, but more renters will be able to get aid if they need it and we'll see. we'll see whether that works out. it's in a process that is stuck. >> are you hearing anything behind the scenes, eamon, from the banks? >> no. >> in terms of those providing the loans to the lapped lords? >> right. >> this is the full trickle. i'm curious what banks are saying or is it better to -- >> i haven't talked to them. i haven't talked to them about it yet and i haven't seen what their statements have been i can't tell you for sure. yeah, whenever you do anything like this, andrew, somebody's picking up the tab on this, right? money is not free. the renters don't have to pay it

in short term so the pain goes to the landlords and then as you say the banks. in theory all of this will be worked out once the aid comes through, once the moratorium is lifted and we get this economy back into a normal situation we're just not there yet it feels a little bit to me -- any time you extend any kind of extraordinary aid into the economy, you do havepolitical problems pulling it back we saw the same thing with the fed and the taper tantrum. when you put that kind of assistance into the economy and you decide you're going to taper it off, people say, oh, wait a second, we're used to this whether it's markets or renters, you have the same dynamic. >> eamon javers this morning appreciate it. >> i was just reading a story last week in new jersey about how just a fraction, about 25% of the billions of dollars they've gotten in rental relief has made its way through they give it to the states and then they give it to the counties and the counties have to go out and find these people

and follow-up with it. it's been a mess several counties hadn't given out a dime of the $764 million that they've been given for the state just to pay for some of these things too tracking it down the bureaucracy has been slow. to eamon's point, once you allow these things, it's had ard to pull it back we want to bring you an update with cvs health. coming in with adjusted earnings of $2.42 a share the consensus estimate was only for $2.06. that's a 36 cent beat. came in well above the street's forecast as did revenues same-store sales up 12.3% in the quarter. you had 12.4% for the pharmacy same-store sales the company also saying during the second quarter they gave up 7 million covid tests and 17 million vaccines in the second quarter. you could hear a lot more about this when the ceo karen lynch is joining "closing bell.

that's coming up at 3 p.m. eastern time in a cnbc exclusive interview. when we return, china imposing travel restrictions we have a live report from beijing next. and we'll talk to the ceo of dow component honeywell and how the drabelta variant is making impact

all the things, all around you... where you learn, work, and fly... we help make them healthier. we are the people of abm.

for more than 100 years, we've been a leader in making spaces cleaner, from the things you touch to the air you breathe. today, more than 100,000 of us are innovating to ensure spaces are more efficient, healthier and safer. abm. making spaces healthier for you.

welcome back to "squawk box. as covid cases rise china is putting restrictions on subway traffic. eunice yoon joins us live. we were looking through the numbers. big jump there but not relative to what we've seen here. >> yeah, that's right. there were 96 new cases in china today. the overall number they say of infected people is 400 so the numbers are quite low, but at the same time it is a big jump and china is very, very concerned about it. so we've already seen the government imposing travel restrictions, moving towards lock jo lockdowns in certain areas 33 cities have been affected so far. several transportation lines,

railway as well as flights have been suspended high risk areas have gone into semi-lockdown. one was quite disconcerting to many here. the area that's seen as a tourism area has gone into lockdown even if you were a tourist there in the area, you cannot leave. becky, as you had mentioned, the subway lines here just moments ago said they're going to limit passengers for certain areas some of the most crowded lines really during peak time. the capitol has restricted exit and entry within the city in order to protect the capitol wuhan, the epicenter, is in mass testing right now. retesting the entire 11 million population because of an outbreak there overall china has been concerned

about the outbreak of the delta variant because people aren't seen as having as much protection china has ramped up the vaccination program. it says it's already distributed 1.7 billion doses of covid-19 vaccine as of today but there are still epidemiologists who are sayingmore needs to be don in order to try to protect the population since the vaccines that are allowed here, the chinese ones, haven't been as effective. >> that was going to be my question the percent, it sounds like they have gotten the vaccination doses out. what is the effective rate when you look and compare it to j&j and the moderna and pfizer effectiveness? >> well, generally the -- yeah, i mean, the effectiveness is lower. i mean, it's gone -- we don't really have the data still so the range has been anywhere between, you know, 50% to like 70 or 80% or so protection, but one of the big concerns among

people who have been getting the chinese shot is that of the length of time in which it's effective really seems to be much lower than, say, pfizer and moderna. it's effective a matter of months people are concerned that the protection isn't necessarily there for a lot of chinese and that's a big concern for the science here as well as the general population i would say some of the scientists have been quite bold in a chinese context in that they've been starting to question if china should maintain its zero tolerance approach because the other side of this is that there hats been concern about the impact this is all going to have on the economy as well. so a lot, a lot of questions as to whether or not this approach is going to be effective and exactly what all these lockdowns are going to mean. >> just to put it in context, you're talking about 91 cases,

maybe 400 people impacted. lockdowns taking place in the united states it was 149,000 cases? different ways of kind of looking at this and handling this and i think different levels of understanding from our citizens and population, too, in terms of what they handle and in terms of what the authorities will do. eunice, thank you. it's good to see you today and we are going to talk more about china coming up in the next hour with peter navarro he served as trade adviser to president trump. joe? >> whoa. you know, that actually is an interview you probably don't want to miss. coming up, could we be on our way to a $5 trillion infrastructure package we're talking what the votes this week in congress mean that's coming up next. but as d with the military, we've grown to serve all who've honorably served. no matter their rank, or when they were in.

a marine just out of basic, or a petty officer from '73. and even his kids. and their kids. usaa is made for all who've honorably served and their families. are we still exclusive? absolutely. and that's exactly why you should join. jerry is here! j! mate, how are ya!? it's so good to see you. good to see all of you, yeah! why is jerry so... popular? it's been like this ever since we started using workday. what do you mean? it makes it easier to develop great relationships with our suppliers. now everyone, everywhere loves jerry. they sure do. they do. they really do. mmhmm. workday. finance, hr, planning and spend management for a changing world.

this is ashley. she's a posh virtual an receptionist. ent she'll make sure you never miss a call or an opportunity to grow your business. you can't be in two places at once, let posh answer. posh virtual receptionists. i became a sofi member because i needed to consolidate my credit card debt. i needed just one simple way to pay it all off. it was an easy decision to apply with sofi loans, just based on the interest rate and how much i would be saving. there was only one that stood out and one that actually made sense and that was sofi personal loans. it felt so freeing. i felt like i was finally out of this neverending trap of interest and payments and debt. ♪♪

the bipartisan infrastructure bill is being fiercely defended by the senators who helped to craft it as others begin too try to amend it joining us now, our guest. ques we had jason on yesterday. you have a tlot to live up to. he was some what cynical about even the bipartisan plan because he thinks it will lead inevitably to the $3 to $5 trillion what will we do to fix

infrastructure other than republicans would get everyone on board when would it look like for you to fully support it enthusiastically >> good morning, joe thank you for having me on likely we'll pass the infrastructure bill. if not this week, it will be early next week. this is what we do is highway spending and rail spending they are basically doubling the spending this is important infrastructure investments. we have to have a larger discussion about how we'll fix our infrastructure what we are seeing outside the united states are things like asset recycling and they use the proceeds to invest in infrastructure the port authority of new york and new jersey could sell their airport to private investors and

then take the proceeds and upgrade the new york and new jersey infrastructure. that's a much more efficient and powerful way than doing trillions of spending that will ultimately be financed with higher taxes that will slow growth the economic benefit is probably not a very big deal from a macro perspective. from a company per spec is tiff, you'll see a lot of the structured companies stocks out perform. >> and jobs and things but do you think this billion or $550 billion, do you think there's a lot of slight of hand in there someone noted using unspent covid funds that were never paid for, using that is still adding to the deficit it is not paid for there is a lot in here like

this >> is it paid for? >> it is not, joe. we are used to selling oil out of the strategic patrol. we've done these before. they are going to use $50 billion of unspent employment money they've said we are not going to provide this generous level of unemployment benefits and take this money to apply it. we know those overly generous benefits were holding back >> we are running out of time. i know what the other side would say, if we cut taxes on corporations, isn't this a good use, if we are going to deficit spend, isn't fixing roads and

bridges a good reason doing it for all the things republicans love >> saying there is long-run productivity if you look at the five core tenants. it is very same all-star to president obama's 2009 package he passed before coming into the office there are really three things we need to do we need to make sure schools are open in september. we need to get covid aid to roll up straining labor force and get more americans vaccinated. you do those at very little cost to the public and you'll get a much bigger economic bang for the buck >> i hope there is some shovel-ready projects. no cash for clunkers

expert analysis there. thanks >> thank you, joe. we've got a big two hours coming up. huge lineup still to come. ceos of honeywell and general motors to join us and the chinese market and a wide ranging interview with the sec chair. we'll talk cryo ptand spacs and meme stocks. don't go anywhere.

this is the gap, that opened up when everything shut down. ♪ but entrepreneurs never stopped. ♪ and found solutions that kept them going. ♪ at u.s. bank, we can help you adapt and evolve your business, no matter what you're facing. because when you close the gap, a world of possibility opens. ♪ u.s. bank. we'll get there together. ♪ ♪ ♪ ♪ ♪ more diverse thinking leads to more unexpected, more thoughtful solutions. ♪ more thoughtful solutions.

hey lily, i need a new wireless plan for my business, but all my employees need something different. oh, we can help with that. okay, imagine this... your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown, your sales rep lisa has to send some files, asap! so basically i can pick the right plan for each employee... yeah i should've just led with that... with at&t business... you can pick the best plan for each employee and only pay for the features they need.

markets are mixed after yesterday's rally. in this hour, we'll get quarterly results from general motors and the business update from the ceo of honeywell. dealing with delta the fda preparing to grant full approval for one vaccine at the center >> china's tech crack down and the u.s. response the second hour of "squawk box" begins right now.

good morning welcome back to "squawk box. we have a bunch of news to talk about this morning we'll show you where u.s. equity futures stand this hour. it looks like the dow will open. nasdaq looking to open marginally higher. a couple of headlines to talk about. toyota and honda are the latest auto companies to warn about the ongoing impact of the chip shortage issuing a cautious out look. honda, return to profitability after a year ago loss but spirit canceling half airlines.

scrapping 40% flights on monday and 20% on sunday. working through bad weather, system outages and staff shortages. van guard is offering $1,000 for workers who receive the covid shot by october. they will submit the same amount to those who can prove they've already been vaccinated. they are not discounting those who got it early i know there are some who thought, well, if you are only going to attend those now. sq >> is that $500 a jab? >> full vaccination. >> at this point, don't you think you should always go for the double vax >> i think i would not have a

problem with j&j >> i knows it 60 or 70%. there were questions saying maybe there was more durability for johnson&johnson over time. >> if anyone gets any vaccination, you should be happy. new york city will become the first u.s. city to require proof of vaccination for indoor dining and gyms intended to put pressure on people to get vaccinated the deltavariant has risen president biden praised the move and said other cities should follow new york's lead other things happening in new york yesterday too >> what's that the smack down between the city and state over political issues? is that what you are talking

about. >> de blasio made some comments. what do we call it cuomo gate >> it is democrat but it is me too. that's a problem >> i can't speak for the "new york times." i can speak for myself i think it is very difficult i wonder whether cuomo survives this i think it is very difficult given the number that speak against them the new york times did a huge cover story. we haven't mentioned it. it is not going to kill us >> it is not in our wheel house. >> it could have a again win impact on the state of new york. the city of new york and so many businesses headquartered in new

york i think there are going to be implications more so if he is forced to resign or is impeached it is a media story too. unpacking the news. >> and that is odd back to the markets. dom chu. go become and hide with the

stocks >> we are going to look at amerisourcebergen stock. it basically came out with better than expected profits and revenues thanks in part to sales of specialty products like covid treatments that part of that story. check out shares of live nation carrying through into this story as well. the company comes out with a smaller than expected loss on a surge of revenues. the ceo came out and said they expect over 3 million people to

attend their festivals and they think two-thirds of those will have more people attending since 2019 pre covid and then one more, joe, i'll put out there robin hood shares. they got as low as $33.25. pre-ipo. the pre-market trade is around $33, $34 billion that's about 304,000 pre-market. it was the number one searched ticker in the full day yesterday. so robin hood getting the full boost. >> why would it not be the meme

stock? they are young >> thanks, dom >> coming up when we return, honeywell chairman and ceo and former white house trade advisor will discuss china's teccrk h ac down and attempting to control corporations we'll return after this.

team usa is ready for the olympic games... ...and so are mike and eddie!

show me the olympics. they easily catch every single event with the award-winning xfinity voice remote. show me bmx racing! show me swimming. track and field. shot put. skateboarding. water polo. climbing! discus. surfing. dressage. dressage? it's horse dancing. magnificent. with the best of the olympics, and everything else you love, it's a way better way to watch! cheer on team usa with xfinity x1. say "show me the olympics in 4k" so you can watch in stunning 4k ultra hd.

the delta variant, supply chain disruptions. these are some of the thorny issues facing the economy for months our next guest, honeywell's chairman and ceo great to see you today thanks for being here. >> thank you, becky. >> i know when you all reported your earnings, you talked about how you had really seen a come back by companies that had been hit hard especially in ar owe space yesterday, the lead story was about how some of the asian economies were starting to slow down and restrictions they were putting back in place.

we've already heard about some lockdowns. what are you seeing? what's happening as best you can tell >> we are, i would divide our business into two segments that being primarily aero space and energy or gented businesses that are slower to come back we've seen the trend and short cycle which has been booming for us since the beginning of the year in terms of the delta variant, we are not seeing the impact yet. we are seeing a negative trend some of the guidance issued by the cdc here as well as trends outside the u.s. i can't tell you that's translating different business pattern yet but something that concerns us and something we are watching closely >> not that you've had in

problems getting shipments i point out, the supply chain has been the challenge shortages. inflation. getting logistics. in bound freight is difficult. this year is quite different in terms of the challenges we faced in 2020 but they are challenges nonetheless and inflation we have seen as well. it is a different set of challenges i thought maybe we'll get a different breather but really, it's different challenges we've faced. do you think inflation is the bigger problem of the transitory issue? >> i really don't know i'm not convinced it is transitory i will say we are seeing some

sustainability of the commodities we purchase. will that subside over time? i'm telling you we'll still see that today we are following that closely in bound and out bound. if you can't pass along price, we'll get squeezed will that change we are seeing the economy. interest rates are low labor is very difficult to obtain with err facing challenges in terms of hiring people whether or not this is sustained or temporary, i think it is too early to call that >> i think you improved your profit margins in all four major areas of business over the most recent quarter is this something you will continue to do and just trouble getting people into jobs >> we had very robust processes and ability to pass on

inflationary i thinks it something we'll have to continue to watch so far, we've been able to manage it. kind of what i call the supply team and we've been able to pass it through it is a challenge we kind of normalize and we'll watch it. in china, we were in a hybrid

environment. we'll revisit after labor day. it will be a back and forth kind of game. putting things in the offices and will fully mask up we are not ready yet to prepare what tomorrow will look like we'll see what makes sense it might vary based on your mode of operation and we'll vary on rotation and sort of the country

we are in. i'm are the ready to declare what we'll do long term but we are trying to break the mold of working from home. at least having the employees come in a couple of days although delta is proofving a challenge to that. >> we are hearing companies like vanderbilt offering $1,000 and microsoft saying you can't come on campus. >> we have pretty good success in our office workers and vaccinations we have some issues in manufacturing facilities some are over 90% vaccinated others lower we haven't offered cash innocentives we have contests between various

facilities we had our medical staff visit and talk about vaccinations. we haven't taken the step of mandating at least not yet >> i have heard of smaller startup companies talking about flying taxis you are focused on this unmanned aerial mobility. talk about this. when you say it, i believe it. >> looking like a trend. like an analogy and big cities the buildings have gone vertical to create more people space per square foot. the same kind of challenge with mobility is that a lot of big cities are enclocloged up in teo

traffic. we'll have to use the vertical space. we've booked $3.5 billion worth of business. we think it will happen in two phases in terms of urban travel. the first phase is delivery of packages and cargo not really these but all kinds of environments. we are starting to see that already in some shal settings. eventually, in 5 to 10 years, that will happen it will happen in terms of human transport. that will be real. we are very actively playing in it whether we did act waiters, motors or avionics we are proud to secure a number of systems we believe this will happen.

>> when you say $3.5 trillion of potential business what is that >> this just means it is aligned with the plans of the startup. it is very much aligned with the business plan. we are very bullish on this trend. we do think it is real it will happen it makes all the sense in the world given the needs for human transport. when you think about being able to go from new york city to the hamptons in 15 minutes, that's pretty compelling. delivery of packages to roof tops many companies have secured pads

on top of buildings for human transport or package delivery. we are bullish in this it is not going to happen tomorrow as always in honeywell, we try to balance the short term and long term and these are some of the bests we would place >> it is great when you talk about shaving that time and you think about the startups out there and the mentality of self--driving cars, it has been move fast and break things stuff like this sounds more complex. i can't imagine this would go forward without saying here are the rules of the road, so to speak about what happens when you are flying through the air is this a situation where you think the government has to set the guidelines first before we see things flying all over the

place? the first step is to be fly cargo and packages that safely and a lot of discussion of airport and passengers in terms of technology and availability the avoidance, the avionic, the technology is there to make it happen i think the technology is a little ahead of the reality. the regulatory environment will be there whether short attorney general or midterm, that's yet to be determined we believe this will happen. >> thank you for your time we appreciate this midquarter

update and getting a real feel of what's happening. >> thank you, becky. coming up, former white house trade advisor peter navarro. >> and the aim to fully approve covid vaccines as a new surge of covid cases grow dr. gottlieb will be our guest "squawk box" coming right back >> announcer: time for the aflac trivia question. what is the top lifetime grossing movie of all time go aflac!!! what the heck, troy - that's not your kid! the aflac duck is just covering for sophie. same way he got me money to help cover her hospital bill when my health insurance didn't pay for all of it. but this isn't fair! that's exactly what i said! but then i learned health insurance isn't even supposed to cover everything. wait...for real? for real real. luckily i had aflac. aflac!!! get help with expenses health insurance doesn't cover.

go aflac! !mm-hm! get to know us at aflac.com. 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.

what if you could have the perspective to see more? at morgan stanley, a global collective of thought leaders offers investors a broader view. ♪♪ we see companies protecting the bottom line by putting people first. we see a bright future, still hungry for the ingenuity of those ready for the next challenge. today, we are translating decades of experience into strategies for the road ahead. we are morgan stanley. into strategies for the road ahead. my son romeo has sought counsel with some strategic advisors. they suggest that we marry our fortunes with...the capulets. blasphemy! fear not. these advisors managed one of the largest mergers in history, creating billions in value. billions? plus, they have experts in global trade. this merger shall be a boon for our spice business. and set a course for growth. here, here! friars, send word at once. yes, m'lord.

what is the top grossing movie of all time? the answer, avatar the 2009 thriller has earned over $2.8 billion. still to come here, former white house advisor to talk the china tech crack down and what it means for business. we are awaiting results for general motors we'll bring you numbers and we'll have the company's ceo

after the show we are back after this millions of vulnerable americans struggle to get reliable transportation to their medical appointments. that's why i started medhaul. citi launched the impact fund to invest in both women and entrepreneurs of color like me, so i can realize my vision and give everything i've got to my company, and my community. i got you. for the love of people. for the love of community. for the love of progress. citi.

. let's take a look at the futures. they've turned a little weaker dow few opportunities down by 56 points the s&p 500 down 5.5 points. strong gains across the board with the s&p 500 ending at a closing high the dow only about 28 points away from the record high. nasdaq is about half a percent off too. looking at the 10-year below 1.2% for the 10-year that continued pressure we've been watching. in the meantime, we do continue to get the earnings rolling in including general motors out with its quarterly results phil has the numbers

>> good morning. this is a split. you may see a reaction here on the stock on the bottom line which is a miss. they earned $1.97. the street expecting $2.23 unclear if analysts were factoring in $1.3 million in warranty costs for the replacement of the volt battery that needs to be done. the street expecting revenue just under $32 billion well above expectations. that's strong pricing in terms of vehicle sales margin, 12%. free cash flow of $2.5 billion basically, they made most their money in north america that's not a surprise. $2.5 $2.5 billion out of $2.41 billion in north america increasing full year earnings

expectation from $11.5 to $13.5 billion. previous was $10 to $11 billion. that's a healthy increase. now expecting to make between 540 and 640 a share. previous guidance between 450 and 525. the consensus on the street is for 739. unclear what that wide range might be we'll be talking about gm chair and ceo mary barra not only about the results for the second quarter but the outlook. the raise in the guidance and how they are doing on the development and roll out of electric vehicles. >> been watching the stock tick. initial tick was lower we'll see what happens with that looking forward to this interview with mary barra. quick question i know you were listening in

with darius. will this get rolled out the same way as the self-driving cars that they sort of do it and regulators have to catch up. >> that's right. it will be different with these evtals they'll have to get full vert indication they are alreadying testing. we are a far way from those getting into service big difference with self--driving cars they are putting it out there and testing on the roads nobody has to sign off on it they do their own testing. that's a far big difference between the two. >> much appreciated. we'll continue to watch right now. general motor shares down around 18 cents we'll see it in just a little bit though.

when we come back, peter navarro on u.s./china relations and the tech crackdown by beijing. se k sec chair next hour, gmceo and lyft president and cofounder right here on squawk ♪ those days are done. ♪ i got you. ♪ all by yourself. ♪ go with us and find millions of flexible options. all in our app. expedia. it matters who you travel with. retirement income is complicated. as your broker, i've solved it. expedia. that's great, carl. but we need something better. that's easily adjustable has no penalties or advisory fee. and we can monitor to see that we're on track.

like schwab intelligent income. schwab! introducing schwab intelligent income. a simple, modern way to pay yourself from your portfolio. oh, that's cool... i mean, we don't have that. schwab. a modern approach to wealth management. frank doesn't need a posh virtual receptionist, because he cloned himself. while his clone does reception work, frank can go to meetings. visit a job site. and even finish work early. you look really lovely. frank? frank...i trusted you! but if cloning isn't right for you, just get posh. virtual receptionists who can answer and transfer your calls, because you can't be in two places at once.

>> we are continuing to keep an eye on chinese tech stocks as authorities there continue to tighten their grip for more on the chinese crack down and what's motivating it. we are joined by peter navarro it is good to have you on. we tried to get you in to the mind of president xi what is really going on behind the scenes, do you think >> one thing, joe, xi jinping

might have taken a look at what google, facebook and twitter did to donald trump and his power and decided big tech isn't going to get that big. so there's that. big tech in china is their target but one of the biggest victims was american pension fund what we've had in the wake of what's happened is we've already a a slow burn because of the zero interest rates and ability to generate high returns we've seen a $400 billion bite out of these stocks. you know the rule here, joe. it's hard enough to make up missed returns it is almost impossible to grab back capital when i was in the white house, we spent a lot of time talking

about the need and took some action preventing pension funds in investing in chinese stocks there would be a kyle bass, roger robinson, the dmitcommittf present danger all sorts of people including myself have warned us. with a stroke of a pen, xi jinping can wipe out an entire industry the education company he wiped out. and eventually taking $4 trillion out of the capital of this country >> it is interesting their take is that china is accelerating its own squeeze as well prioritizing communist party control over competition with the west.

why does it matter because china and us are playing the long game with tech. the companies are playing the pieces of the chess board and economy. do you think that is a correct analysis >> that feeds right into the point. it is this powerful weapon in terms of being able to gather data big technos what becky probably ate for break fast what andrew watches on tv and where you travel that's dangerous if you put that power in the hands of thea authoritarian state,s that a powerful tool joe, they are willing to surrender lives and billions to

advance their own political agenda and whole power in communist china. some of the things they do really doesn't make a whole lot of sense what they are doing is perfectly logical. the american pension funds were the biggest victims of that. in the white house, we took big steps to choke off from the flow we didn't go near far enough a lot of that was the internal battles and the political dynamics of wall street versus main street. it could dampen gdp and china. if the ccp were to lose control. a lot of people tasting freedom. they can probably forego a point or two in gdp if they can stay

in control is unclear. big tech could stabilize their ability to take control. >> one of my favorite folks watching out there is miles who made a bunch of money in tech in china. now he's leading a movement to take down the ccp. that's xi jinping's worst nightmare. there's a proverb, joe, kill the chicken to scare the monkey. what xi jinping is doing is scaring a lot of chickens to scare the monkey the whole jack ma thing was just that he killed that chicken and scared all the other monkeys the power of big tech, i get back to the analogy here if they were to start running to break up google or twitter

watching the power to engage in cancel culture and censorship. just 30,000 feet up, it's a real concern. when xi jinping looks at that in the west, he's going, i don't want any part of that. you are gone >> hard to shift through the latest we said there were like 90 cases. is that a real number can we believe anything they are saying about covid? >> we can believe nothing the

republican report that came out really shocked me and i shouldn't be shocked by anything i know more than anyone who happened in wuhan. the virus actually started in wuhan in september think about this, joe. i've always said many times on television, we lost 60 days because the chinese didn't tell us about the virus i made the assumption that they didn't know about it until december then hid it from us this goes back to september. i can tell you, joe, if i had five months to prepare for the pandemic half of the people who died today would have lived. >> do you think we'll have a

full-blown bipartisan approach i don't understand why this has become from all of washington. the whole campaign against trump was predicated on blaming him. not china one of the big

discussions would change those experiments. >> i think it is semantics we are kind of out of time it will take years to get to the bottom of it >> we need to get to the bottom of it. of it. >> good to talk to with a hybrid, you don't have to choose. >> we'll be right back with watson on a hybrid cloud they can use ai to help predict client needs and get the data they need to quickly design coverage for each one. businesses that want personalization and speed

are going with a smarter hybrid cloud using the technology and expertise of ibm. nice bumping into you. (vo) introducing 48 square centimeters of earning potential. flawlessly designed. undeniably versatile. unlimited 2% cash back. this is the card built for... ...real life. (dad) she's gonna be a drummer. (cashier) yeah she is. that's gonna get loud. (dad) right? (vo) the new wells fargo active cash visa credit card. unlimited 2% cash back on purchases. that's real life ready. ♪ there she is, miss america ♪ ♪ there she is your ideal ♪ ♪ with so many beauties she took the town by storm ♪ ♪ with her all - american face and form ♪

♪ and there she is ♪

welcome back full fda approval could come sooner than expected joining us now, dr. gottlieb former fda commissioner and happens to been the boards of pfizer and ill loom al loom -- a pfizer board member, what do you think is moving up the time line here >> look, i have the benefit of not having any additional information other than what i've

read in the published reports. this puts it in the time line of what we've been talking about. about three months from the timing of the submission of the application. pfizer submitted end of may, moderna a little later than that this would put it within that three-month window that would be the end of august, early september. you are still within the margin. the timing doesn't surprise me it is what i expected fda to do. that's because they guided to that they publicly made statements they would act on these within a three-month time frame >> what happens next is this the situation where more employers might require vaccinations j&j hasn't even applied yet, right? >> i would expect moderna to be on a similar time frame with that three-month clock they submitted a little later so

their approval would come a little later this would give them more of a mandate to require the vaccination. you'll see more employers mandate. expecting whether or not to impact the consumer sentiment. surveying whether the vaccine site taken under emergency authorization and i'm not sure if it is a full distinction of authorization finally as some of the surveyors think they are that reality is used in the data set. the eoa in terms of the review was really tantamount to the full application i'm not sure that this is going to make such a distinction probably there are some for whom

this is a tipping point but i don't think this will drive a lot of vaccination >> new york city is now going to be requiring people to prove vaccinations to go out to dinner, gym or concert what do you think of that move is. >> i'm in favor of municipalities adopting local laws to address their situation. in terms of whether or not we implement passes, that's effectively what they are doing and what israel has done i think in densely packed cities like new york, they have to think differently about the spread i'm supportive of new york taking this step there are other parts of the country that won't do it or don't need to do it. getting to parts of the country that are more rural. they face unique risks

san francisco is saying people who got the j and j shot came in with the second shot is is that a good idea? for pechl higher risk or vaccinated a long time ago really being optimal since cdc isn't acting and doesn't seem to have a time line you'll see more

and more those that couldn't get danced past the week. not showing up for something like booster shots and this. >> that was always a decision made on the boundaries of what the cdc authorities were i think they are in a tenuous spot there this is really a separate issue and kwl to act on the fact that the fda would authorize that

ability. at some point this fall, there will be a recommendation from the cdc for people who are at least high risk to get boosters. that's when you'll start to see declining efficacy people in nursing homes and facilities where people were vaccinated last december they've investigated an out break of covid in a nursing home and found the vaccines were about 85% effective. that's still quite effective but only 61% effective at preventing infection. in vulnerable population, you want to keep that above 51% of prevention through vaccination, if you can if we wait another couple of months, will that 61 become a

41%? that's possible. >> we've talked about in new york, you have to show this app. it effectively expires six months after you got it. i expire in october. is the view among the state of new york or when the boost has to happen? >> i don't know why new york made that decision or based on any judgement. i don't know what the thinking was behind that. >> what do you think a vaccine

mandate could do or what level could it bring up a vaccinate rate in a city like new york do you think can you get it up above 70, 80, 90%? is. >> we are above 70% of eligible adults now i think it is possible we'll get up to 80%. new york is a higher vaccination result we'll get to the higher percent vaccinated with those mandates put in place those aren't uniform you are not going to see every bus busin business mandating >> doctor, thank you we have a t relomo to come you are watching squawk on cnbc. ! why is jerry so... popular? it's been like this ever since we started using workday.

what do you mean? it makes it easier to develop great relationships with our suppliers. now everyone, everywhere loves jerry. they sure do. they do. they really do. mmhmm. workday. finance, hr, planning and spend management for a changing world. finance, hr, planning and spend management girls... the chess club has gained 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”! this past year has felt like a long, long norwegian winter. but eventually, with spring comes rebirth.

everything begins anew. and many of us realize a fundamental human need to connect with other like-minded people. welcome back to the world. viking. exploring the world in comfort... once again. >> coming off a record-setting day. we are standing by for jobs number from adp. sec chair coming on the future of cryptocurrency regulation and

gm ceo mary barra and lyft president john zimmer. final hour of "squawk box" begins rightnow. >> u.s. equity futures down about 89 points. nasdaq down about 18 s&p down just under 10 big story, andrew today, crypto, aga

regulation important interview. >> joining us now exclusively to talk about new ideas of crypto regulation crypto, spacs. sec chair gary gensler great to see you you just gave a speech all about cryptocurrency and your intention to protect investors i want to drill down exactly what that means. i think there's a lot of people in the investor community and policy world that want to understand the details of that you said in that speech that this asset class is rife with fraud, exams and abuse >> we are an investor protection agency right now, this asset class in bitcoin and hundreds of other

coins is a speculative asset class. if people want to take risks, that's all right we want to provide some of the basic protections. the trading aspects there on are not on the regime that row tekts them it just isn't. it is not good for gaps, investors or the technology. >> what has to happen? do laws need to change >> we have robust authorities. in some places it is pretty clear. those issues come under the securities laws. it is a facts and circumstances situation. on the trading and lending platforms, many of those are

standing a stride regulation if they are trading securities they've got to come in i'm encouraging them to come in. let's talk to them and have a frank discussion many are saying, you know, dealing with their lawyers and saying we are not going to come in and that doesn't have good sense with the markets congress will look to see if they can fill gaps with the authorities. >> when you say you want to work with congress, what are these authorities you don't think you have that you think you need to have in order to preserve the idea of investor protection. >> i think the most critical thing is around where we the public can go to trade or might lend this crypto on the platform if it has the securities, it is also commodities on the same platform how do with that and the sibling

agency that i was honored to chair and stitching that a little together because some of these have both commodities and securities >> you just described some crypto as securities prior that you have not. which ones do you think of as securities and which do you think of more as a commodity basket or some other kind of basket >> i hate for your viewers to keep going back to this. it is pretty clear the supreme court has spoken about this many times. if somebody is raising money, selling a token and the buyer is anticipating profits based on the effort of that group, that fits into something that is a security i'm not going to go token by

token. my predecessor said best three years ago, he really hadn't seen many tokens that didn't meet that securities test >> i'm looking at a screen of cryptocurrencies on the list would ripple, for example -- >> we have an enforcement case and i'm going to leave it at that, andrew >> let me ask you a different question, which is -- >> you are going to try the same question in a different way? is. >> no, no. in the balance between regulation on one end and innovation on the other, where do you think you lie there is a large request in this country about where the united states will stand long-term when it comes to crypto and crypto

innovation you spent three years teaching classs on this topic >> i'm very proinnovation. i think it helps the economy to grow it gives people access to good medicine and good jobs i wouldn't have gone to mit and been a professioor there for the years. i count myself as pro innovation but i think we also need rules of the road. automobile came along 100 years ago. if we didn't have rules of the road, they wouldn't have confidence and trust in the ooblts we need confidence in markets and trust in advance it will meet its potential, it

will come within the policy frameworks >> what do you say to those crypto proponents that say the reason we like crypto is because in some ways we like anti government in some ways, it is outside of regulation we don't want you to regulate it because that is part of what gives it its value it is almost a self-regulating sk currency part of the story of she, he or they we don't even know who they are. a libertarian form to have private money. that part of it is okay. in fact, it has brought a lot of change a catalyst to think about new

payment systems and approaches at the same time, we want to make sure we guard against money laundering and terrorist and the ransom wear where bitcoin is used inside of ransom wear and the clonal pipeline thing we all lived through. i'm pro innovation but also against guarding illicit activity financial stability. >> where do you land on the prospect of a bitcoin etf. it has been a long-running question trying to get the etf approval what would it take >> we already have some funds in the crypto space, bitcoin. the largest has been around

several years. not an etf it is around $20 billion in size investing in bitcoin in the chicago amemercentile exchange. i'm looking forward to the review and the etf filings around investing in bitcoin investments in chicago mercantile exchange around what we call the 1940 act >> i want to talk to you about disclosure and meme stocks you now have a whole new generation of investors going on tiktok and redidit promoting.

where does the sec see their role in that conversation? >> i think it is the same as has been for decades just as on this program here about investing and the retail engagement is positive but also to guard against fraud and manipulation whethers that big actors or hedge fund in the market we are taking a real close look at market structure. i recently started engaging on twitter. to those twitter followers writing about dark holes we are looking closely at this market structure making the retail trades rather

than selling them to the stock exchanges. >> gary, sec chair -- >> either works. >> i'm watching by coin and not tying it to anything you are saying but i have to tell you having a regular lator or government official just that knows what he's talking about in a calm manner is helping a lay some fares my question is, you are a professor. you know how to teach people did you ever think, i don't know, just sending out an email to colleagues in d.c., the fed or congress and just say, hey, i'm going to give a little seminar. why don't you offer to do that

to educate some of your associates down in d.c.? >> i learn every day from talking to my colleagues -- let me just say. i've had wonderful one on one discussions from senators and in the house and in group sessions. >> senator, treasury secretary, fed chairs, senators everywhere then. >> secretary yellen could be in a terrific meeting where we talked about stable coins. my colleague powell was in the room we were there as the president's working group. we had a really engaged discussion that she chaired. >> okay. all right. there's hope >> two other quick questions while we still have you.

one relates to retail investors. and one of the things we've seen now over the last several weeks or months is that they don't seem to vote when it comes to governance it has become a challenging circumstance you have a real agency problem i'm thinking adam aarons not getting enough votes then lucid with not enough time to get enough votes for its spac do you think of that as a problem? >> i think of it as share holder democracy. in my current role, i'm not voting any shares. we as the shareholders of corporate america have to engage and do that in a way that is efficient and effective to express our views. i do think about it a lot. staff is making the

recommendations on the planning and voting >> how concerned are you about the fact that people don't vote, which is a feature of democracy? >> what we are looking at is both making it more efficient. on the plumbing side and making it a little easier to compare the votes and so forth the ballots but you are right. it would make it more efficient and available. >> mr. chair with we have 30 seconds. china. china stocks you've come down with new rules, how concerned are you about the books in china and whether they are accurate or not? >> i am concerned. i think for 17 years since before the reform accounting and

we have not been able with the public accounting. number two and not fully understanding and buying the cayman islands company that at best has the service arrangements we have news just crossing his adp and i'll send

it over to her >> it looks like a gain of 330,000. >> big miss, becky 330,000 reporting on the july payroll. but then compare it to the none farm payroll those will come in and looking at it by business size.

all of those doing well. just that you have not seen those numbers. looking at two pieces of data we follow ucg and home base also suggesting a weaker jobs report. home base is very weak ukg just saying, hey, we are not going to be as strong as you were in june that jobs report pointing away from that estimate out there

adp has been off and just did the calculation before the number came out. 336,000 on average per month they've been heavy optimistic over the past three months they've been about 300,000 off one way or another new efforts to figure it out i wouldn't say it is a slam dunk but now three pieces of data you use but maybe an issue of the delta variant getting to a place that the easy, low-hanging fruit of getting people back to work

can be accomplished. i would say the issue of the unemployment benefits would weigh off. seeing no bigger jump in states that rolled off the unemployment benefits and those that rolled on >> we've got the thursday weekly claims and then friday, the big jobs number. thank you. it is great to see you >> when we come back, two more can't misinterpreter views with ceo of gm mary barra and lyft's president. >> robinhood at 53.08 at the last tick.

show me the olympics. [ "bugler's dream" playing ] ♪ ♪ ♪ ♪ ♪ ♪

some of the day's top business stories royal caribbean with a second quarter loss $5.06 a share. expected a loss of $4.36 a share. estimates missed

$51 million versus $150 million. royal caribbean booking for 2022 are so far near normal levels and the services preceding at a quick pace shares of pfizer and biontech are higher aiming for the shot full approval by the start of next month. something vaccine vadadvocates e been a waiting as it may make private entities more sure about mandating. and talkabout the fda working to do this more quickly or as quick as possible without cutting any corners. >> the cdc has issued a new federal eviction moratorium

meant for areas of the country that still have high levels of covid. the white house previously cited the supreme court ruling that couldn't extend the election ban. the congressional dats that could bring for time and places that already approved rental assistance coming up, we'll speak to mary barra. the company beating expectations but missing on the bottom line you can see the stock is down about 3.5% futures down triple digits on the dow. the 10-year an even lower yield on that adp number

don't go anywhere. squawk will be right back. what the world needs now...is people. people who see energy a little bit differently. where a switch to cleaner power means a more resilient grid... with renewables and gas power providing energy whenever it's needed.

because seeing a more sustainable world isn't far in the future. we're building it...now. ge building a world that works.

>> dom chu joins us with a look at the morning's top movers. >> we are seeing some

interesting movements in terms of meme stocks some of the heavily traded stocks surging another 17, 18%. another 4.5% shares in volume. if you look at shares of amc entertainment, gamestop are actually lower in early action tweeting about the possibility of selling pressure on some of the meme stocks selling long positions on robinhood another surge of shares of newly formed victoria secret and company and day two of it being its own stand alone company splitting from bath and body works. more coverage initiating vsco with the equivalent of buy rating up 4% around 60,000 shares of

volume much as we do in the certainhours of squawk, certai tickers, i mentioned the top searches, robinhood rounding out the top five you can see 1.14% on the heels of the adp number. moderna, tesla and clorox and other notable searches here. that 10-year note yield very much focus and of course friday's big nonfarm payroll report >> we are sitting at 1.134%. he thinks if it falls below 1.14, we could be in trouble >> of course. >> when we come back, lyft's president on reaching key

profitability target ahead of schedule and gm president mary barra will join us live. attention small business owners, small business playbook coming next wednesday, august 11. tools and knowledge to make the most of the recovery you can register to attend stay tuned "squawk box" will be right back. , we can harness the energy of the tiny electron. we can create new ways to connect. rethinking how we communicate to be more inclusive than ever. with app, cloud and anywhere workspace solutions, vmware helps companies navigate change. faster. vmware. welcome change.

general motors out with second quarter results company beating revenue expectations missing on the bottom line phil joining us with a special guest. >> let's bring in mary barra joining us from the company headquarters in detroit. you are raising your full year guidance right now at about 25 days supply in terms of inventory how do you see the second half of the year playing out? >> phil, it's great to be here before i dive into that. i want to recognize the general motors team.

just a phenomenal job. when you look at the resilience and creativity they came out solving the issues of the semiconductor shortage, i think that gave me confidence in the second half of the year. even though there are still some unknowns as it relates to semiconductor supply i know the team is going to apply the same energy and solutions there is some uncertainty as it relates to covid when you look at the strength of underlying business. our product portfolio. the work we are doing and the launches we have coming this year, i think it is going to be a good second half >> mary, will the chip shortage impact the plans to roll out the hummer electic suv and the

cadillac lyric >> right now, we don't see any impact or anything that would cause us to push it out. i'm proud to say the launch of the lyric and the hummer ev that is right around the corner are all on track >> when it comes to electric vehicles, you know what's going on with the chevy volt and the 61,000 vehicles and the potential to spark i have to be honest with you. the number of people that say this is the kind of thing that makes people say, i don't trustee electric vehicles. how do we have confidence the electric battery is what it should be.

>> it is important to understand what is causing this there are two rare manufacturing defects found in the same cell will cause this. we became aware of two vehicles that had fires in the recall population that already had the software fix and the engineering teams immediately went to work-to-understand what was causing this we are going to do the right thing for our customers. we are going to work every day to make sure what we are doing is validate and tested this happens to be two rare manufacturing issues happening in the same cell, we are going to address it. as we look at the technology also recognizing this is the gen 2 technology the platform is a whole different battery system that the hummer and the vehicles going forward being launched with the joint venture we have will be applying all of general motors quality to the process.

i think people can understand and look to see we are taking the right steps and look to the safety of our customers. >> mary, in the next day or so, there will be an announcement in the white house where you are likely coming together in terms of an agrement and fuel economy standards. ev production. >> would you like to see the white house come out and say, you know what, we expect all manufacturing of vehicles by 2025 to be ev. the eu has laid that mandate out there. should the u.s. do the same thing? >> one of the things we want to do and you'll see the general motors commitment to an all ev future and plans to be all ev by 2025 with all of our light-duty vehicles what is most important is doing the work with a robust eco

system if they buy an ev especially if it is their only vehicle, they'll have an exceptional experience that's the focus to get there as quickly as possible. you'll see us with goals along the way. getting to make sure the customer will be supportive will drive at the quickest adoption >> is there any chance general motors will do that. >> in those with more to follow. >> finally, with regard to china. you are what, second largest automaker there. you've seen what is going on in china. do you have any concerns of the

potential impact of your business given the exposure and investment you have in that country? >> we are very strong in china we have a strong portfolio with cadillac, buick and chevrolet. we are also involved with our sgm program where we are a minority holder. we think finding a way for both countries to have appropriate working relationships that are set at a level playing field is going to benefit both economies. we are not seeing anything negative from an american auto perspective. when we look at the strength of what the franchises that we have there and really the joint venture has been self-sustaining for many years now, we'll look at ways we can encourage both and have a level playing field

>> mary on the cruise subsidiary creating autonomous vehicles creating creating them in san francisco how quickly will we see this at a dealership i know you have super cruise technology what about the actual cruise autonomous vehicle? >> that's a great question i ask you to stay tuned on that. we'll have more to share on our investor day it is exciting the milestones they are hitting excited to do that and we'll share more this year >> mary barra ceo of gm. thank you for joining us from gm's headquarters.

becky, i'll send it back to you. it was interesting what mary had to say about the chip supply it is fluid and one reason they are shutting down production is because covid-19 hit a chip supplier in malaysia this pops up and there's not a lot the suppliers can do >> definitely a moving target. thank you. when we come back, jim cramer's take on another big morning. and we'll ask john zimmer to take us inside his company's impressive second quarter performance. >> a share of walgreens, seen a surge in vaccinations in recent weeks. that includes more than 30% increase in states like alabama, florida, georgia and kentucky.

in total, walgreens administered more vaccines than expected. stay tuned to "squawk box" on cnbc what if you could have the perspective to see more?

at morgan stanley, a global collective of thought leaders offers investors a broader view. ♪♪ we see companies protecting the bottom line by putting people first. we see a bright future, still hungry for the ingenuity of those ready for the next challenge. today, we are translating decades of experience into strategies for the road ahead. we are morgan stanley. this is lisa. i she's a poshs virtual receptionist.

when you're busy, she'll answer your calls and assist your clients. you can't be in two places at once, let posh answer. posh virtual receptionists. welcome back, shares of lyft jumping 125% john, great to see you great news so much questions about the past

quarter but more importantly what you are seeing going for forward. >> we are happy to hit this mild steen and going forward soo tell us not only the profitability around the business but to the extent of the delta variant. >> we number one wanted to create safety. we've retained the mask requirement for riders and drivers. we encourage drivers to have their windows open which is also

helping. month after month, as more people get vaccinated, there is more design by people to go out. we'll continue to priorities safety with every safety process, mandating the mask has been effective. if there is any report of no mask, we have a photo varifying if the employee is wearing a mask we work with the white house and continue to watch the cdc guidance >> tell us about the driver shortages. we've seen prices have gone through the roof

>> just like when we came into the pandemic we've never faced this exact situation. the supply and demand imbalanc happens but it is getting better quarter per quarter, we welcomed 50% more drivers we were able to hit adjusted ebita profitability with driver earnings at an all-time high and demand growing as well >> are these new drivers or drivers coming back? >> definitely both we look at drivers because ridership was down and seeing those drivers coming back and new drivers.

welcoming new people so we are welcoming other drivers how has that changed in terms of the pricing all over the country are drivers getting the line share or more across the industry. >> they are getting the image or ilt of that and that we've invested a lot over the last two years that actually makes every minute more efficient both for drivers and riders in the

business in some cases, we can do better than 200 rides >> in terms of next quarter, do you know how many people you'll have come on line where we've had a big like do you think that is going to be part of the academic >> i mean, we've seen in states that have decided not to take on certain parts of the unemployment benefits that that driver onboarding has actually increased more quickly but again, we're in the this for the long-term. we want to make sure the marketplace gets to balance to help both drivers and riders, and we are seeing that improve quarter-over-quarter, and we're really excited about this milestone. >> in terms of how you see the competition with uber, i know that you think that you guys are now almost in different

businesses, and to some degree you are, but how do you think investors should look at your business now and separate that out to the extent that they should compared to uber? >> i'd say number one, they should look at how focused we've remained over the past two years but over the last decade basically my co-founder and i have been focused on consumer transportation in north america. this is a pure play. this has very strong economics as we're demonstrating this quarter, and the opportunity in consumer transportation is massive. it's over a trillion dollars tam. we're just getting started now we can fund our own growth with profits, and we're excited to continue to lean into that to focus on our mission and not get distracted. >> john, i don't know if you saw earlier, but we had the s.e.c. chair gary gensler on the program, and we were talking about crypto, which leads me to this question. any thought about accepting either bitcoin or any other kind of crypto for payment?

>> nothing to report at this time we always focus on what our customers want, so we'll continue to keep our eyes open >> what do you think about that, though internally? i'm sure there's had to have been a conversation or two about that >> yeah, i mean, i think there have been a few conversations. our payments team has been part of organizations looking at how to do this and the best way with the least amount of volatility, but again, nothing to report at this time. >> john, we're going to leave the conversation there we appreciate you coming on. we look forward to continuing to follow your progress i feel like we've been following it from the very beginning, so it's exciting to see you reach this milestone. >> thank you very much. >> thanks. >> joe >> thanks, andrew let's get down to jim cramer you were tweeting about lyft earlier. the company indicated some of

the unemployment benefits were distorting the labor market to some extent. then we got the adp report, this is still something that's a problem in your view >> lyft mention it had a couple of times saying listen, we're going to have some drivers come become a almost implied that one of the bigproblems we're having are indeed these unemployment benefits and they're keeping people out of the labor force. most companies have not point black said what they said. i think they're far more involved with who's coming to work and who isn't and how lightly people are working right now, meaning very few hours per week, ten hours per week so i felt good that maybe employment costs could be a little transitory. everyone's so worried about the price of labor so this was a very good primmer left >> let's go to robinhood, you've been talking about that. is it a meme now now it's a meme stock. >> absolutely. a bunch of people who -- wise guys thought for sure that this company's falling apart.

you can't short a stock when it just comes out they really kind of misjudged vlad tenev this they were convinced this is a house of card. gamestop, may have been a house of cards they'll take this robin road hood up. and we'll end up hearing about some hedge fund that shorted it. people get on the wrong side of a trade all the time someone's on the very wrong side of this trade. >> jim, i spend my life trying to please all the people all the time, and i always fall short. we had navarro on. has he got some points about china that we need to listen to do you think >> look, i think that peter is unique in that he's got tremendous knowledge about what's going on behind the scenes and how naive a lot of

the media is to the pernicious nature of china and how much they really want to beat us. there are tons of people who talk about how we have to maintain -- secretary yellen, we have to maintain our preeminence in the world and what navarro's always been saying is look out while we keep saying that, they're crushing us in a lot of places around the world. so i think that peter's judgment is informed by multiple attempts by president trump to try to do something reasonable commercially, and they just wouldn't play. they just were not going to give us any money they want us to pay for their goods, but they don't want to buy anything from us and i think that peter was really at the forefront of that, and i think that i agree with that >> i just -- you know, we try to figure out whether the -- we used to think like milton freeman, that the burgeoning middle class would inspire more freedom, and they seem to be

doing pretty well keeping it the way it is, and they'll give up a couple of points in gdp to stay in power, the ccp, that's all i can figure >> it's what he said about social media, yeah, they don't want social media to have the power that it has here social media would of course be critical of the regime, and the regime does not tolerate any criticism. our regime tolerates a lot of criticism. we don't even have a regime. >> so do i. >> so do you, jim. you don't please all the people all the time either. >> people don't like me. i did some things in 1973 i'm paying for right now. >> they're just words, dry your tears. dry your tears, they're just words, they can't hurt you thanks, jim. >> "squawk box" will be right back designed to work better together. save, spend, borrow, invest, and earn cash back rewards, all in one app. that's how you get your money right with sofi.

folks the world's first fully autonomous vehicle is almost at the finish line 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 to help make the world a smarter place does this come in blue? become an agent of innovation with invesco qqq

. let's get a final check on the markets this morning things definitely took a turn for the worse after we got those much worse than expected adp numbers. adp came in with a begin of 330,000 jobs that was only about half what the street had been expecting. as a result we saw the dow turn down quickly dow futures indicated down by about 140 points the s&p futures off by about 15, and then you've got the nasdaq down by about 22 points.

remember, the s&p did close at a record yesterday the other place we've been watching this, and again, pressure came out on the yields for the ten-year pretty substantially right after that adp report. right now you see the ten-year yielding 1.39% rick santelli says look out for 1.2% or 1.12%. that was the low set on july 20th you could see it fall all the way to 1%. that does it for us today. make sure you join us to remorrw right now it's time for "squawk on the street." >> this is "squawk on the street," and now here is your opening bell countdown on cnbc >> good wednesday orning, welcome to "squawk on the street." i'm carl quintanilla with jim cramer, david faber at the new york stock exchange. futures are obviously a little bit weak here. we'll talk some david on "jeopardy!" in a moment. we're looking at softness as we're coming off the s&p closing