to delay return to the office. disney shares blowout quarter. theme park returns signal profitability. it is friday, august 13th, 2021. "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc i'm melissa lee with andrew ross sorkin and scott woapner. the dow is looking to be up by 62 as for treasury yields we had them stable yesterday in fact, all markets were stable yesterday. s&p 500 with the narrow range

before the pandemic. 10-year yielding 1.346%. scott. the fda authorized covid booster shots for people with weakened immune systems. people who received organ transplants or compromised immune systems the cdc needs to sign off on the move advisory committee will meet today. if approved, third shots could begin immediately. about 3% of americans have weakened i mmune systems. other people who are fully vaccinated do not need additional dose of covid vaccine at this time >> we were just talking about this. >> the cdc saying the delta variant spread so rapidly, more than 90% of counties with high transmission those counties meeting the guideline for people wear masks indoors whether vaccinated or

not. new orleans and san francisco will require evacuativaccinatior restaurants and gyms and other venues news out yesterday the supreme court will not block the indiana university policy to require vaccines to attend classes this fall. this is an issue that was directed to judge amy coney barrett. interestingly, there was some view that maybe she would take up the case and take it on the other side this, i think, paves the way for more schools and institutions to create vaccine mandates. >> this is all happening at a tough time with schools going back whether university or young kids who have not been vaccinated it is a very tough situation to be in. >> you have to wonder if there is a difference of the public and private universities and what they can mandate.

that will be an interesting division >> i wonder about not vaccine hesitancy, but for the past couple of weeks and months, there has been the argument which is, look, get vaccinated you won't have to wear a mask. increasingly, the message is get vaccinated and wear the mask so the incentive system or structure for wearing the mask for those who only want to get the vaccine so they wouldn't have to wear a mask is reduced there is a lot of back and forth. >> especially when the variant isn't as deadly. the incentive get the vaccine and wear the masks and don't die from covid >> it's a hard one it is a hard one playing in the corporate space. facebook delaying plans to return employees to the office initially planning to bring back employees in october that was the original plan now it will push back the plan

until january of next year following what amazon is doing a similar plan for corporate employees last week. labor day, no longer january? >> january is the new post labor day. >> we just moved by four months. >> the ripple effects of this in terms of economic activity will be felt. we see it here in times square a lot of offices are not back. if they push until january, we will not see the population in times square the impact onsmall businesses that operate here. hotels, et cetera. and corporate travel also gets pushed back. if you are not going to the office, you will not go on a plane. >> everything is pushed back the market has been able to have the remarkable ability to look past everything and assume this is just a blip whether the southwest profit warning from the other day

didn't effect the stock market at all like you thought at one point it would with the announcements of bringing workers back at amazon and facebook. >> one is a one-time event we now have a bunch of events that were one-off, if you will this is like adjusted evida. every quarter. adju adjusting. >> three record closes on the s&p 500 in three days? >> yeah. >> obviously there is some discounting going on here. speaking of southwest and the warning. people watching shares of disney they are up strongly this morning. the company's third quarter beating expectation for earnings and revenue. parks, experiences and product segment returned to profitability since the first time the pandemic began. now disney plus with 116 million

subscribers. on two fronts, streaming business streaming missed the previous quarter. that was in question for this quarter. the parks business, which bob chapex said was strong. >> they crushed it i don't know what other way you look at the quarter. every important metric they crushed it. >> even if you have to pay scarlett johansson $50 million >> what did it get down to $70? then it had the incredible run and stalled for a little bit now it is getting the boost. they just crushed it >> it had to back fill to its valuation that it had acquired because of disney plus they are showing the numbers here they're proving it out later in the show, we will show you what bob chapek said

during the pandemic. >> take a look at futures. melissa said we are positive across the board that is where we sit now dow opened higher at 54. we are coming off record highs s&p is good- by three. check out lumber now the lowest level since january of 2020. down 13 of the last 14 weeks down 10% alone this week 'lbeig bk.wel rhtac >> announcer: this cnbc program sponsored by td ameritrade where smart investors get smarter. ♪♪ ♪♪

i've spent centuries evolving with the world. some changes made me stronger. others, weaker. that's the nature of being the economy. i've observed investors navigating the unexpected, choosing assets to balance risk and reward. and i've seen how one element has secured their portfolios, time after time. gold. an element so agile and liquid. a proven protector. an ever-evolving enabler of bold decisions.

an asset more relevant than ever before. gold. your strategic advantage. 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

for a look at what is ahead of the last trading day of the week, let's bring in lisa and greg branch at veritas welcome. lisa, what do you think about where we are right now are we closer to the top or do we have some room to go? >> we're still moderately optimistic on u.s. equity. if you look at what is going on with the macro standpoint and earnings, we have a positive trend in momentum. we have good numbers and continued momentum in them certainly, second quarter earning season was robust. that sets the foundation for nice numbers through the end of

the year i say moderately, however, because we recognize risk and test nos in the second half and higher base comparison that make it harder for growth to be overall, we are advocating for clients to stay in that u.s. equity position. >> greg, it seems you are worried about inflation. is that right? >> yeah, i think that is a fair characterization more than just inflation i think we are going to see an opportunity to pick up assets cheaper than the other side of jackson hole the last remaining defensive posture that the fed had used is concern over the delta variant would do to the labor market the jobless claims numbers the last two weeks dismiss that narrative. we have seen pandemic low numbers the last two weeks only in june and july have we seen less than that. the delta variant is not causing deterioration in the labor market and the opposite with 10

million job optenings that's a repcord we have more people looking for work or under employed the fed position to keep the foot on the gas with monetary stimulus has all been dismissed at this point. i think you will see them change posture at jackson hole. >> the market is not concerned about that, greg, right? inflation reads have ticked up the fed speak has been hawkish this week. melissa said coming into the segment we hit record highs each of the last three days the market doesn't care what you are worried about. >> that's fair remember, i also believe that we'll see a tremendous third quarter. 85% of companies beat in the second quarter i think we will see something of the same in the third quarter. in the meantime from here to there, i'll put different data the 10-year yield 1.15% on

august 2nd a low we have not seen since february to 1.36%. the fixed income market is starting to anticipate really no last leg for the fed to stand on to defend on monetary stimulus i expect them to change posture. >> let's assume, lisa, that happens. fed chair goes to jackson hole says what he does. makes you think the taper is coming sooner. the september meeting maybe puts that in play and in october, they start to taper. what does that mean for the market do we get upset or can we handle it >> our base case remains that what we will see is announcements later in the year with the beginning of tapering near the end of the year and into early next year i think you raise a good point if there is expectation pulled forward, the fed may really pull back on the gas pedal sooner than we expect

i think that will affect markets. markets have been dependent in recent years on an come dating stance and that could cause volatility >> greg, if i believe what you say, i want to be in the banks and a little weary of tech if rates are going to go up, i wonder what tech is going to do and if rates go up, the bank trade will keep working. >> right i think the bank trade will continue to work what we saw is a multiple revision performance story the multiples were crazy a year ago. trading less than tangible book. that is no longer going to trade. earnings growth story with a net interest margin environment with the rates coming up. tech, i believe, will be a pause.

on the one hand, rates will provide a headwind, but the performance has been spec spectacular. last year was covid induced and that has been sum mmarily dismissed. we are in the midst of the cloud cycle with 50% growth in those businesses you have secular tailwinds behind the tech stories. >> lisa, what about positioning for you? >> our interest right now actually is midcap stocks. we advocate emphasizing the middle tier of capitalization for clients. the reason is midcap provides a nice blend of growth and cyclical you are able to pick up on momentum in the u.s. economy and reopening and still getting some measure of quality >> greg, what do you make of the argument that some made on the

network this week that you will get an everything rally. the markets will handle what the fed can do is preparing for it? the bond market moved in anticipation of that and hotter inflation read in the last couple of days then you get beyond the delta variant and the cyclical stocks, some say at bottom they will rise everything will go up. once you get past all of the fears of delta and the fed does its thing. we're ready for everything >> yeah, look. at the highest level, i don't disagree we are probably in a multiyear growth cycle i quibble with the notion that everything will rise equally there will be sectors under tremendous cost pressure whether that is food cost or input cost or hard to find components cost. some industries under tremendous inflationary wage pressure that is occurring at the mid to

low end. we're looking for companies less prone to those threats, but again, secular tailwinds and a growth story to articulate. >> lisa and greg, thank you. coming up when we return, the covid delta variant complicating travel plans for americans. here is the question is it worth buying the travel insurance or not that discussion is next. as we head to break, check out shares of sofi after going public with the spac the current quarter outlook came in weaker than analysts expected we're right back after this. is. as your broker, i've solved it. 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.

welcome back to ""squawk. travel plans around the world demand and we have contessa brewer with more on that con contessa >> travel demand is soaring and travel insurance is also in high demand online broker for trans insurance says 30% of the policies are bought specifically to cover issues like coronavirus. sales are sky rocketing. july numbers up 67% above the same period in 2019. >> certainly been increase in awareness and huge change to the demographic. our traveler is about ten years younger than before covid.

>> the biggest insurers are aig which said premiums have increased for travel insurance and aliance. it has seen a 15% increase, but 7 75% spike in claims since the pandemic began they will cover in instances travelers get sick with coronavirus, but if travelers test positive or have to quarantine other insurers offer similar coverage, but only under cancel for any reason policies. square mount tells us those policies cost 40% more than standard average check the box when you buy the trip policy >> the question we all asked about travel insurance is how easy is it to get your money back or get the insurance paid to you what does it require >> you got to read the fine

print, right if you have a policy that doesn't cover quarantine, it may cover if you get sick and end up in the hospital with coronavirus, but if you have to quarantine for 14 days in a hotel at your destination, that is an expensive cost to shoulder and especially one that a lot of families would not plan on for their leisure travel it pays to read the fine print and see what is covered. if you go through those details and insurance policies are fun to read. if it you go through it and see the quarantine is not covered or in terms of a border closure, you may opt to pay additional cancel for any reason. >> what does it cost >> a lot a lot. >> contessa, you may be an expert we have another expert at the table. you just bought some >> i did i bought travel insurance for

the first time in my life, contessa i bought it through square >> did you have to do it >> i didn't have to buy the insurance. >> some destinations are now requiring it >> i did it for peace of mind. as i learned, sure, you can pay as you said the cancel for any reasonis 40% more generally where you can obviously cancel for any reason if you are paying $800 for a policy like i did, you are really only going to use the insurance if you test positive for covid when you are somewhere whether you get sick with it or not. covid positive, then you have a better chance of being able to actually use the insurance what i found out and i haven't gone on my trip yet. if you go and travel restrictions get put in place and you have to have a curfew or quarantine or whatever that will not be covered if you have to miss out on nights and days and this city

and that city, that is not covered under travel insurance policy unless you get covid and that causes you to miss part of the trip it is an eye opening experience. my finger was shaking as i pushed the enter button when i put my credit card information i don't want to pay. i want the peace of mind so i'll pay. >> look, scott, the insurers have turned themselves inside out to come up with a product and policy that meets these new requirements previous to the pandemic, they didn't have policies in place that could cover those contingencies when the cdc issued closures or warnings, that is something uncovered. they have gone back to the table and crafted new policies and coverage are you going to pay for that coverage yes. the other thing to point out is the cancel for any reason policy it may not cover 100% of the

cost what we know is, if you are stuck at a destination for an extra two weeks, you will shoulder the entire cost >> the cancel for any reason policy, as i understand it, only covers 70% to 80%. not 100% >> exactly. >> you are paying 40% more on top of the large amount of money, you will still not get all of your money back if you cancel for what they say is any reason i should add, when you shop around and you see the rec recomm recommendations, i bought a highly recommended policy. that was vetted. you still better read the fine print to understand truly what your benefits will be if you have an issue, particularly overseas where the costs can get e

high if somebody tests positive and you cannot fly back. the airlines are strict. if you test positive, for example, wherever you are and i'm not certain on 100 days. for united, you are not allowed to fly on the plane for multiple days after you test positive you could talk multiple nights you did not plan to be in a particular city in the united states or around the world where you have to cover the cost and travel policy? who knows? >> there is no insurance for having to be stuck for two weeks in a hotel room with small children because you're quarantined and cannot go anywhere because you're quarantined. >> i hope i never have to use mine >> we are hoping for you contessa brewer, have a great weekend. thank you. great to see you in the next half hour, we will show you what airbnb said about the potential for travel disruption in their third quarter.

melissa. coming up, disney shares surging. we will dig into the theme park numbers and subscriptions. programming note do not miss the hour of "consumer spending in america. make sure to tune in to that at 6:00 p.m. right after "fast money. as we head to break, a look at s&p 500's winners and losers. >> announcer: executive edge is sponsored by at&t business our people and network will help keep you connected let's take care of business. ca. 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.

good morning welcome back to "squawk box" on friday morning take a look at futures dow up 51 points nasdaq opening 4 points higher s&p 500 up 3 points. melissa. we have disney beating

expectations we have the ceo bob chapek who talked to jim cramer last night. >> we decided to step on the gas. step on the gas on the two biggest initiatives that we have going in the company one is the direct-to-consumer proposition with disney plus also in our theme park business. >> joining us to discuss more is tom rogers executive chairman and former nbc cable president and cnbc contributor. great to see you, tom. >> great to be here. good morning, melissa. >> do the numbers on disney plus and streaming venture prove disney's valuation >> well, they certainly did well with the parks and you expect them to do a lot better because parks are open i was very impressed with the demand particularly in the u.s. given that is all off the

domestic travel. no international travel yet. that's a pretty strong showing i have to say when it comes to the streaming side of things, i'm a bit more skeptical the headline number is a big one. 116. obviously the market is rallying around that because the stock trades on that metric. you have to dig into that a little bit it was admitted on the earnings call that the majority of those subs come from hot star and india which are low revenue subs i put them in a different bucket than the rest of the streaming world and what everybody else is going for. you ask the question how ydid they do in the u.s.? they were interesting numbers. they obfuscated on that. they said hulu grew by 1 million subs domestic only. espn plus grew by 1 million

subs domestic only. renew from hbo max grew 2.8 million subs in the u.s. netflix lost subs in the u.s we came away after disney grew all this high energy movie power putting their foot on the gas as chapek said. we didn't find out what this did in the u.s. market in terms of the big story disney plus. i have to say, i came away more sk skeptical. >> tocm, you come away with the sub viber ebscriber internationt are we looking at a low quality pace of growth powering these numbers? >> they said about 40% of subs now come from hot star it was a big number in the

quarter. revenue per subscriber came way down and that is a function of just how many hot star new subs there were in the quarter. there are other issues weighing on the profitability of the streaming business in addition to hot star, hulu live is the bundle they sell as a cable streaming operator it is also low margin revenue. espn plus, today, given the rights costs absorbed there is low margin revenue 30% of the revenue is low margin then you have the other issue which netflix doesn't have that's the tax that they get applied to the revenue from roku and from apple and the pelcos who are partners in initiating subscribers for disney plus. that is a 20% tax on revenue

there is a lot of profitability issues with the streaming revenue that the market is not focused on they like the headline number. >> tom, i have a philosophical question for you it may be impractical, but philosophical. long term with the franchise films end up on services like plus than streamers, how much harder will it make it to create franchises that work in the theme parks? it has been the blockbuster at the theater that has turned into the theme park ride, if you will, that's driven all this i wonder if that changes in the streaming world? >> a great question, andrew. the big advantage disney has especially over netflix is that flywheel effect of being able to exploit what they do in the movies through a theme park which traditionally has been about 40% of the revenue of the

company. the more you amotize the value off the streaming service, it certainly is going to get harder to have the promotional and marketing that drives that flywheel that's done through the theaters today i expect disney to come up with more of a hybrid that is more focused on theaters and a bit less focused on streaming than some of the other major media companies do and that's what was unsatisf un unsatisfying about the rulesults they included the disney plus results and you could pay for day and date at $30 to see it at home what did that do i'm skeptical. they made some comment that

outside of hot star that grew else's where and that growth wa similar to last quarter. they weren't clear about what that meant disney plus gained 500,000 subs last quarter if they gained 500,000 subs, throwing the movie power at it and espn plus grew by 1 million and hulu grew by over 1 million. that tells me they haven't hit the right formula yet. >> is the premise of the notion that you need the big theater blockbuster to build the flywheel, is the premise you need to reach a broader audience if we follow the thought that movie theaters are dead, which is, you know, what a lot of people are thinking these days, then it shouldn't matter if you see it for $30 at home at a one-off basis or subscriber to

disney plus. >> i think there's clearly something to that notion i don't think it has been proved out yet. i don't think it is merely the number of eyeballs television gets more eyeballs than movies do when you talk about the massive blockbusters of disney that out perform anything else in the theaters and with that the characters drive the theme park enterprise that's a special case. there's a degree of promotion and marketing that a theater opening provides that can't be captured off the back of promotion and marketing for a streaming service when you are one of many, many things that people have an option to watch at home. my guess is they don't have that formula right because i don't think we saw you whatever they threw at it over the last quarter really showing up in disney plus numbers. i think that had something to do with how they obfuscated

>> tom, following that logic, is there hope for the likes of amc? >> well, amc and the current structure and the stock it issued, et cetera, is a case in and of itself. i do think people will go to theaters i don't think theaters are going to die it is a really great way to watch to have the convenience at home and theater attendance will not return to historic levels. within that, they have to come up with a formula to how to get streaming benefit. it is one thing to measure people pay $30 incremental and measure in terms of subs on the service. subs on the service is the headline metric that drives disney stock as i said, i don't think we saw yet the formula that's going to

get them there on that one >> tom, great to see you thank you. tom rogers. >> thanks for having me. coming up, airbnb shares sinking after the company warned about potential disruption related to the delta variant that story coming up next. and later, alexis ohanian, reddit founder, will join us reminder, u yocan watch us anytime on the cnbc app. gs will. yeah...uh... doug? sorry about that. umm... what...its...um... you alright? [sigh] [ding] never settle with power e*trade. it has powerful, easy-to-use tools to help you find opportunities, 24/7 support when you need answers plus some of the lowest options and futures contract prices around. don't get mad. get e*trade and start trading today.

♪ ♪ ♪ aloha! isn't this a cozy little room? sorry your vacation request took so long to get approved, so you missed out on the suite special. but lucky for you, they had this. when employees are forced to wait for vacation request approvals,it can really cramp their style. i'm gonna leave you to it. um, just— with paycom, employees enter and manage their own hr data in a single, easy-to-use software. visit paycom.com and schedule a demo today.

welcome back to "squawk box. u.s. equity futures are green across the board heading into the weekend. dow opening 50 points higher nasdaq 2 points higher airbnb shares falling. revenue quadrupled from the lows of the pandemic. bookings rose 29% from the first quarter to hit $83.1 million that beat expectation. this is why the stock is down 3.5% the company warned it did not know if people would be as willing to travel this fall as in the summer. citing new covid restrictions and vaccination progress airbnb projects record revenue for the quarter that ends in september. this is a whipsaw.

the numbers were great those are out of control numbers. >> yeah. as it relates to travel, it is not a matter of where you are, it is where you are going. do you think people are cancelling i guess so >> i just go by southwest. the example we have of what they said were close in cancellations and disruption. >> a dilemma is southwest and airbnb and the offices shutting. facebook the latest. advanced bookings for disney were off the charts. >> what do you believe with advanced bookings? >> right the next couple weeks are key. >> you don't think disney is a unique animal? outdoor place? people feel comfortable there rather than certain other types of vacations >> orlando is not in the greatest position from what you see right now with covid

>> right >> i don't know if that has an affect on people's psyche if you made advanced booking and change i don't know it defends if your family or kids are vaxxed. >> are they vaxxed or not vaxxed >> this is a conversation around dinner tables every day. >> the calculus for andrew and i who both have children under 12 is different from your calculus. your kids are vaccinated it is interesting. >> i'm still concerned and they're vaccinated because of what you hear and read and what you see. >> yeah. coming up, we will tell you about this i was telling these guys during commercial break about it. non alcoholic beer on the rise you are thinking what are you talking about? how can non alcoholic cool trust me when you see it and taste it the co-founder of athletic

brewing is here to talk about the trend that is not squawk booze news, but news you can use and we'll do it next 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.

[engine revs] ricky bobby, today the road is your classroom. [engine revs] now let's go borrow a boat and make some bad decisions. [engine revs] time to go incognito. [zippers fasten] [engine revs] i love you, ricky! i love you, cal! what's the next stop? it's time for your extracurriculars. ¡vámanos, amigos! woo-hoo!

welcome back to "squawk box. if you're thinking, why is his finger up, we're having a fascinating conversation which we will have maybe on the air later. but it's 6:50 on the east coast. if you are looking to crack a beer right now, which you could be, the ones you might want to think about is this. athletic brewing is tackling the fast-growing market of non-alcoholic beer the ceo spent more than a decade as a trader on wall street before launching the company joining sus bill chufelt, the

ceo and co-founder bill it's good to see you, i want to explain to the audience. i was telling the guys at the table why we wanted to the segment. i was at a party and i was handed add beer i thought was a beer, a regular old beer i drank it i remember saying to the person next to me. this is amazing what kind of beer is this so good? and he goes that's a non-alcoholic. this is crazy. what is this athletic brewing company great to have you on the program. i discovered the company is blowing up i can't tell you how many people i meet know about it buying the thing on amazon how did you create the company and what is going on with the space? because it seems like the space is growing but there is a competitor set that seems to be emerging. >> andrew and tim thank you for having me on

this is definitely a fun one for me after listening to your show for a decade plus. thank you for the service and getting the financial industry the news in the morning. love the show. yeah, non-clottic beer, great tasting non-alcoholic beer has been an oxymoron until now beer is something humans have been drinking for thousands of years. it hadn't been adapted for the modern lifestyle athletic set out to get it rolling and turned the industry that has been stagant for decades, had terrible post-prohibition stigma attached to it, we made great beer obliterated the stigmas. >> explain what you did. because i remember i don't know, 20, 15 years drinking stuff like o'tooles which i hate to say, kind of gross. it doesn't taste like beer what did you do. >> we have debted indicated built two facilities in the country, one behind me on the screen here in connecticut and

san diego. we own all our own brewing we use superhigh quality ingredients, the base ingredient of all the beers is organic malt the co-founder john is a hialeah awarded alcoholic craft brewer who came to this side. we are putting the attention that non-alcoholic beer never had taking it out of the penalty box, making it positive aspirational, something people are excited to hold in their hand we are taking beer out of the friday, saturday night occasions and something you can drink seven days a week. have a beer, go to a work dinner, bar, anything. >> depending which one you get i should say 50 calories ors the the pale ale is 70 calories. you're not allowed to endorse a product. >> you sound like a paid promoter. >> i love it so much i didn't know what to do.

i've been buying it by the crate from amazon. bill the other thing you have going is seltzer water this is fascinating because two things are going on in the market around seltzer, one hard seltzer which you see all over but you guys do a seltzer, flaired with hops in it. i was trying to explain to scott and melissa what that tastes like. >> it sounds disgusting. >> i was telling you -- there is a fun -- it's sort of like having a little cocktail like a mock tail cocktail fun. i can't explain it bill, can you do a better job than i'm doing. >> please. >> there are so many non-alcoholic occasions durings day, most filled by water or other declining beverage categories like sugary sodas that's a $250 billion plus category there are slivers to slice off that there is little innovation in the sparkling water area

it's lightly fruited lightly hopped, a premium sparkling water that people can enjoy any time of day and complements the other occasions where we're selling non-alcoholic beer also in the 100 billion beer category, trying to add more days of the week to that category. >> the other piece of this -- this is like a high -- premium product because it's not cheap is the product -- what's the price point right now? because i think my wife said to me, like this is not -- this is not just -- because i also drink bubbly and aha and going out of style. with the day pack you can't just do that -- each one is not, you know, nothing. what's the price point on this stuff? >> so it is a little more expensive than the mass brands but it's delivered to your door. and it is premium. and then our beer is a little bit above that 12.99 a six pack fully delivered to your door across the country. >> bill we have to go. have a great weekend

i'm glad we could tell these guys at least about it they think i'm nuts. but hopefully -- maybe they'll try it anyway, fascinating space. good luck and congratulations. >> thank you for having me on. coming up dr. scott gottlieb joins to us weigh in on the fda decision to allow booster shots for people with weakened immune systems. look at the futures. on the heels of three straight record crosses on the s&p as we are looking to add about 2 points at the nasdaq up fractionally "squawk box" will be right back. (judith) in this market, you'll find fisher investments is different than other money managers. (other money manager) different how? don't you just ride the wave? (judith) no - we actively manage client portfolios based on our forward-looking views of the market. (other money manager) but you still sell investments that generate high commissions, right? (judith) no, we don't sell commission products. we're a fiduciary,

obligated to act in our client's best interest. (other money manager) so when do you make more money? only when your clients make more money? (judith) yep, we do better when our clients do better. at fisher investments we're clearly different. if you're 55 and up, t- mobile has plans built just for you. switch today and get 2 lines of unlimited and 2 free smartphones. plus you'll now get netflix on us. all this for up to 50% off vs. verizon. it's all included. 2 lines of unlimited for only $70 bucks. and this rate is fixed. you'll pay exactly $70 bucks total. this month and every month. only at t-mobile.

futures are pointing to a modestly higher friday hope following record closes for the dow and s&p 500, both on track fror a positive week, which would be the second straight and third in the past four weeks the fda updating the emergency use authorization guidelines for two key vaccines in the fight against the pandemic and shares of disney they are surging after what can only be described as a magical quarter we'll break down the results and find out what it means as the second hour of "squawk box" begins right now

good morning, welcome back to "squawk box" right here on cnbc i'll andrew ross sorkin with melissa lee and scott wapner joe and becky off this week. look at the futures on this friday things are setting up for the weekend, i should say. dow looks like it opens up about 40 points higher nasdaq up about call it -- 1.5 points the s&p 500 up about 2 points. a couple of headlines to tell but. the food and drug administration authorized covid vaccine booster shots for people with weakened immune systems that action coming late last night immuno compromised people will receive a third dose of pfizer or moderna vaccines. fda says others are adequately protected and don't need an additional dose at least right now. in the meantime walt disney shares rising reporting better than expected revenue from the latest quarter boosted by rebound in theme

parks and disney plus service. did warn of uncertainty ahead due to the coronavirus, delta variant. it kind of killed. did well the last quarter, something. kansas city southern rejecting the improved takeover bid from canadian pacific. does not stut a improvement to the deal with in place now the canadian pacific offer is lower than the canadian national -- i find in confusing -- it's the canadians. it's just the canadians. >> it's all the canadians involved. >> but it feels its proposal has a better chance of winning regulatory approval. we'll watch that transaction stocks to watch this morning after reporting quarterly results. air about been b losing 11 cents a share small are than the 47 cent loss analysts expected. revenue exceeded estimates quadrupling from a year earlier. sofi losing 48 cents a share for

the quarter compared to analyst forecasts, the digital financial services did seed revenue exceed estimates as membership more than doubled a year earlier. it's down 10%. zip recruiter posting a quarterly loss of 5 a cents a share compared to 22 cents a share loss but the online employment marketplace operator saw made up beat comments about the remainder of the year. the stock surging 13% this this morning. and rocket company shares are jumping premarket despite a miss on top and bottom lines for the online mortgage platform operator rocket saw a surge in closed loan origination volume versus a year ago and gave optimistic guidance for a variety metric. the stock up 5.5% up. doordash -- per share worse than the 20 cent loss analysts expected revenue $1.24 billion, up 83% from the same quarter a year ago when nationwide shutdown and propoled the

blistering growth as more people ordered delivery the cfo saying he expected stickiness in the behavior but said the pace of growth likely wouldn't be as dramatic for the rest of the year and a programming note the ceo of doordash on "techcheck" happening at 11:00 a.m. eastern time in morning. >> the two watch must watch inflation reports show what's been true anecdotally is true on the macrolevel companies able to keep pace with rising input costs by passing them to consumers. that's been good for stocks so far. steve liesman joining us now with more. that's really the case, steve, right, you got cpi, ppi hotter, stocks set a record again. >> yeah, that's right, scott but look pressure could be building on company bottom lines here and the reason you said are the two big inflation reports this week showing consumer prices moderating but wholesale prices, well, they continue to surge if prices can't be passed along to consumers margins could

suffer in the months ahead joel naroff writes increasing producer costs are pressuring businesses in every nook and cranny of the economy. up until now companies have been able to pass along high costs to consumers and then some. that's what scott's talking about. that's led to responding profit margins. the question is how long can they raise pricing starbucks said in the earnings call while thrilled with the margin performance in q3 we expect it to moderate slightly in q4 primarily due to the growing impact of inflation. couples with incremental investments critical to our continued growth the stock off 8% since the call. now, what we were able to do is compare two parts of the consumer and producer price index showing the cpi rising faster than the ppi past several months that explains how companies boost profits. they raise prices more than the costs. but cpi moderated in july. ppi continued to accelerate.

many companies in the call said, hey, they think the inflation problem is lingering into 2022 and they were also confident they could pass the costs along. mike englund tells me with shortages across a wider array of products it's likely that retailers can sustain markups or add to them during the post-pandemic rebound. all right. companies can offset cost pressures, cut kovs cost and find great are efficienciy but something has to give either inputs fall or consumer prices rise if not, scott, profits will be hurt. >> right, right now i mean the market seems to be thinking that okay margins are going to hold and given investors are given powell and company the benefit of the doubt, that what they've said so far is going to hold true and they'll be able to manage it. and the stock market is going to hang in. there is no other way to see it. you can't set records every day if the market is overly worried

about inflation being even more sticky than it already is for longer than some assume it's going to be. >> right, but here's the issue, scott. how long can consumers continue to, you know, pay higher prices? right now what i think is happening is alm of the stimulus money has boosted savings. we see that in the data. and consumers are able to use those savings to paper over higher costs eventually some of that runs down now of course more people go back to work but you can't just keep raising prices something has to give in this way. you can't have a temporary inflation story, all right, the idea of inflation rolls off later this month if you have the rising producer prices. >> the other piece, though, steve is whether wages are rising commensurate with the price increases. and so what are -- aren't we seeing wages rise? aren't we seeing a better position for the workers out there because of such a labor shortage >> not enough, melissa when you look what we call real earnings or inflation adjusted

earnings, the past three months inflation adjusted earnings have been actually negative wage gains so far at least on average are not keeping pace with inflation >> that's something we'll give steve, thank you steve liesman. >> pleasure. coming up, spooner sharing company rides into the public market we'll speak to the ceo ahead of the debut here at the nasdaq before heading to break let's check the markets as we close out this week, s&p and dow looking to perhaps close another record close here. s&p up by 20 dow up by 42 "squawk box" will be right back.

this morning electric micromobility company helbiz debuts on the nasdaq via spac. offering electric scooters e-bikes and eye in europe washington, d.c. and miami it's broken into food delivery in italy with plans to bring the business stateside helbiz merged with green vision acquisition corporate include as $30 million pipe and we should mention "fast money" trader guy adami is a trader on helbiz. salivaer to the ceo, great to have you with us salivaer to. >> thank you for having me. >> what is micromobility, a scooter as opposed to a car. >> micromobility is a new trend.

it's something that we believe from six years ago and now is not always scooter we have scooter, moped e-bike. micromobility is here to something and is he something we will forever. >> in new york city you don't operate here yet but in the other u.s. markets for instance where you do operate, there are bike shares as well. there is lime, there is a lot of other options for people who are looking for a way to get from point a to point b. >> there is a lot of competitor right now. of course uber, lime, bird are one of the biggest but what do we want to do? we want to use micromobility and mobility to bring people downloading our app and then as you say before we also have food delivery in the kitchen. our idea is to attract people to the platform and sell everything including insurance. in september we started to sell insurance in italy. >> insurance. >> yeah. >> insurance for riding a scooter for instance

>> insurance for riding scooter, for riding the personal scooter and also from the beginning -- from the beginning of next week we will present our new cooed owe scooter not only a sharing company but next week we will start to sell our scooter. >> trying to do a lot of things, salvato e.r. e. >> what krrngt do you see as the highest margin. >> i think it's the ghost kitchen but it's a big investment with helbiz kitchen we tried the biggest ghost kitchen in europe based in milan we are trying a big test and we will bring in the united states but also sharing of a very big potential and selling scooter together with being in ferina how we are doing from the next week i'm sure this will bring a lot of revenue in the company. >> how has the pandemic supercharged your business

i imagine people are looking to be on their own in the open air. >> we have two different phase of the pandemic. first we have a big push due to pandemic a lot of city open to the micromobilityeven city they no allow scooter or e-wik they allow us to be on the street and of course in italy we were a big hit by the lockdown. that's why we start to launch the kitchen to keep the revenue always in line. >> i see we're going to leave it there. fascinating business we have a bunch out here on the nasdaq maybe scott or andrew will hop on. >> thank you for letting me in thank you. >> have you ridden an electric bike before? >> no. >> no. >> an electric bike, no. >> some of these are electric. >> yeah, no i ridden on the scooter something like that walking down the street in d.c. for example. >> yeah. >> hop on one and go. >> yeah. >> really? >> i've done it too.

superfun. >> supergreat. just get off at the intersections and walk through those. >> i can't remember the company that i was -- whose scooter whatever -- i used it was cool. >> that's a branding problem >> even if i could i don't know i would say it i don't know coming up, the heat is on. this month's temperatures expected to be above average it's helping utility stocks. we'll give you details after break. and the later the fda approving vaccine booster shots for those with weakened immune systems dr. scott gottlieb joins us with more squawk will be right back. time for the aflak trivia question which state is home to the most for fortune 500 companies. the answer when cnbc "squawk box" continues 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. 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. 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”!

now the answer to today's aflac trivia question. which state is home to the most fortune 500 companies? the answer: new york as of last year there were 54 companies headquartered in the state. california was number two with 53 and texas came in third with 50. >> welcome back to "squawk." the northeast in the grips of a

heat wave. it's so hot. can i just say, it's truly hot temperatures expected to be above average for the entire month. but it's not just the heat making utility stocks very hot right now. frank holland joins us with more frank. >> good morning, andrew. well a balmy 85 degrees could be the average u.s. temperature in august as heat waves forecast to make it up to 13% hotter than normal dan lettered of weather.com says his models are similar with more heat coming. heat waves are partly why utilities are on the hot streak, the best performer in the s&p over the last month. next air energy, ever source and southern company some of the best performers. work from home continuing because the delta variant could be another catalyst for utilities. at this point in 201946% of electric generation went to residential customers, this year the number increased to 49%. it's a higher margin business than commercial and industrial often referred to as cni

the margins that you're capturing for residential customer per utility can be 20 dars or 25 per megawatt hour conversion five for a cni customer or less. >> esg investing given utilities stocks a booster the fiege biggest announcing plans to reduce carbon emissions. duke energy one of the largest and one of the most ambitious plans, also with the recent decline in bond yields dividends are another driver for utilities. the five biggest have a dividend high are than the 10-year yield currently. embridge with the largest, almost 7%. back to you. >> frank, how much of the recent performance by utilities due to infrastructure spending, do you think? >> you know, some of in obviously due to the infrastructure bill. but a lot of that analysts believe has been priced in one thing giving the boost is the commercial ev push and also the passenger ev push.

look at the numbers here, it's really not clear how the spending is rolled out where it gets rolled out. but yes the infrastructure bill does have a boost. but it's really the possibilities going forward over the next years. >> frank holland, i was thinking of -- we were thinking of good morning vietnam, robin williams, it's so hot can -- it's damn -- hot. >> i think worse has been said. >> worse has been said on the air. we'll. >> on this program. >> yes, yes we're just going to zip it that's what we're going to do. >> still to come dr. gottlieb joins us to talk the approval of the vaccine booster for the immunocompromised straight ahead. later reddit funding to go public after the latest funding round. we'll talk to the co-founder you're watching "squawk box" on cnbc.

ohainan hainan an well, would ya look at that! it was an accident. i was— speaking of accidents, we accidentally left you off the insurance policy during enrollment, and you're not covered.

not even a little bit? mm-mmm. no insurance. no. when employees can't enter and manage their own benefits enrollment information, it can be a real pain. not even— nope! with paycom, employees enter and manage their own hr data in a single, easy-to-use software. visit paycom.com and schedule a demo today. every single day, we're all getting a little bit better. we're better cooks... better neighbors... hi. i've got this until you get back. better parents... and better friends. no! no! that's why comcast works around the clock constantly improving america's largest gig-speed broadband network. and just doubled the capacity here. how do things look on your end? -perfect!

because we're building a better network every single day. welcome back to "squawk box. let's check how we are poised to start the friday session, looking at higher opens across the board. building on record closes this week dow getting a boost from the great disney results yesterday

after the bell up by 45 points premarket and nasdaq looking to lose about 7.25 part of the nasdaq move, the move in the 10-year note staying tame this woke now at 1.346%, lower than yesterday. checking bitcoin, higher by 4.6%, up $2,030. >> coming up dr. gottlieb, and then shares of disney jumping after the media giant reported blowout earnings, crushing wall street expectations and subscriber growth, revenue and earnings we will break down the quarter and the company's outlook. a reminder you can watch us live on the ground or on the cnbc app both we're back right after this. this is how you become the best! [wrestling bell rings] [music: “you're the best” by joe esposito] ♪ try to be best 'cause you're only a man ♪ ♪ and a man's gotta learn to take it ♪ ♪ try to believe though the going gets rough ♪ ♪ that you gotta hang tough to make it ♪ ♪ you're the best! around! ♪

♪ nothing's gonna ever keep you down ♪ [triumphantly yells] ♪ you're the best! around! ♪ [ding] don't get mad. get e*trade and take charge of your finances today. ♪♪ 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

what happens when we welcome change? does this come in blue? we can transform our workforce overnight out of convenience, or necessity. we can explore uncharted waters, and not only make new discoveries, but get there faster, with better outcomes.

with app, cloud and anywhere workspace solutions, vmware helps companies navigate change-- meeting them where they are, and getting them where they want to be. faster. vmware. welcome change. facebook is the latest company to delay its plan to rourn u.s. employees to offices. in it initially planned to bring back workers in october with strict vaccination and mask requirements but now it's

pushing back the plan until january of next year amazon announced a similar plan for corporate employees last week there are more and more our own company nbc universal postponed back to office plans to october. >> huge impact on so many parts of the -- of cities we don't think about, whether the transportation secretary are catering companies, all sorts of catering companies that typically cater, like, corporate cafeterias and things like that. that business goes away. there is lots of people impacted by this even beyond just weather people go into the office or not. >> i was talking to my real estate broker operating in new york city saying the rental market was picking up so rapidly there are bidding wars for rents but with the postponement back to work you wonder if that slows down there is a whole ecosystem surrounding the office and what it means to go back to the office that will be shut down. >> if you remember, there was a run, if you will, on properties outside of big cities.

>> i was thinking of that right now. >> right now. >> like the hamptons. >> are people renting the rest -- there was a group of people renting for. >> now they're going to extend that. >> or buying >> right. >> prices will remain -- although yesterday n.a.r. said that housing prices were moderating a touch. >> right. >> in some of the communities. it could reverse as easily >> i think it gets extended in places like that, to your point. if you're out there planning on coming back because you had to be in the office, why wouldn't you extend your -- your rent -- your lease if you could. >> right. >> but you know what's going to be different i think this year in schools you know, a lot of -- >> well. >> a lot of people in the country people were renting or moving other places. >> schools were remote. >> yeah and they thought they could make it work i think -- i hope for the sake of kids -- >> i hope we're wrong. >> i hope we're very wrong and

people are able to get kids back to school and back to where they at least originally lived. >> that's the most important point you make about school. >> we have a great guest to talk about that and so much more. news breaking late last night, the fda authorized covid booster shots for people with weakened immune systems people receiving transplants or similarly compromised systems. the cdc needs to sign off. the advisory committee meets today. the third shots could begin immediately. 3% of americans have weakened immune systems other people they say are adequately protected and don't need an additional dose of vaccine at this time but maybe later. we'll talk about it right now. joining us now is dr. scott gottlieb, former fda commissioner cnbc contributor also serves op the boards of pfizer and lumina. how big is this decision how quickly do you think it's approved how quickly do you think people will get the third booster

shots, scott >> well, probably right away depending who we're talking about, how the cdc ultimately defines immunocompromised in the setting. the. the decision last night at 11:00 last night is a little bit more narrow than it might have been they talked about people solid organ transplant patients and similarly immuno compromised comparable level of immune impairment to organ translant patient. now it's up to the cdc to interpret that and define it it's the case probably that cdc newholm rates certain conditions that would qualify and then make a general recommendation and that's going to ultimately get put into practice. this could be implemented right away doctors could prescribe based on this emergency use authorization. a lot of patients who have undergone organ transplantation are have gotten third doses. doctors have been doing that in protocols. but there are some patients probably who have not received a third dose who will be more eligible for it.

>> dr. gottlieb, scott, nice to see you this morning a couple of things i saw an interview late afternoon with dr. fauci who said something that i found, frankly, surprising. i wonder if you can opine on it. he said that the booster shots were not necessarily a result of the -- as the word that he used was the durability of the vaccines themselves but rather the already compromised immune systems of the people that we're talking about. in other words, those people never got the immune response that they otherwise would have gotten had their immune systems not already been compromised i thought we were talking about the fact that the -- the immunity wanes after a period of time his suggestion would say otherwise. can you shed any clarity on that. >> well, there is two separate issues dr. fauci is right that this forcing at fda issued last night

tries to address situations where patients probably never derived the full immune protection from the vaccine because of the immune impairment there is a separate issue, separate question around the declining immunity we observe in some of the clinical data particularly out of israel, also u.s. data from people vaccinated a long time ago, people vaccinated in december or january and people older who don't have fully intact immune systems to begin with. in that cohort we are seeing indication of declining immunity now the judgment that public health officials make in the united states is that the declines aren't significant enough yet to warrant additional boosters i think that the u.s. public health officials -- this is a policy call as much as a public health call -- i think they want to continue getting first doses in americans and pivot to booster shots probably sometime in september when they have data from the nih on mix and match. data on using pfizer vaccine and moderna interchangeably and probably worked through a lamarer swath of the population still seeking first doses.

one interesting pinpoint is that israel overnight also authorized booster shots for those 50 and over and health care workers they are starting to walk down the booster shots. they have largely fully revaccinated the population 6 oh and over and now walk it down the age continuum. we have to keep in mind we also gave immunizations to the elderly population and nursing homes back in december and also inoculated or health care workers back in december. those would be the two cohoerts that you would seek to give booster shots first to people furthest out from being vaccinated andrea people at high risk, nursing home patients wsh, or those coming in contact with it constantly. >> the i anticipated my follow-up question about what israel did overnight on that note, why does it feel we're playing from behind? why does it feel like we're following rather than leading when it comes to booster shots

and why not just open it up to -- i don't know whether it's 50 and above or health workers or whomever? why does it feel as though we are playing from behind? >> well, i think this is where the policy call comes in first of all, you know, pfizer is going to apply for an emergency use authorization for a third dose this month. moderna said they are applying next month we'll have the data from nih studied i referenced everyone is on a time table to authorize this around september. i suspect that's where we end up i think that this is a policy call as much as a public health call that u.s. officials want to continue trying to promote first vaccinations before they pivot to giving booster shots and bringing people into that and the long lines that ensue. as you see a rush to get the shots. particularly among the elderly population the question is, the declining community in that could hoert is it significant enough right now that they're at risk from the delta wave we haven't seen that in a wholesale fashion in the south i think that's where cdc is

taking comfort but this is literally something changing week by week. as the delta wave moves north, the question is are we seeding more bad outcomes particularly in nursing homes i would be worried about nursing homes, the infection getting in settings against the backdrop of a population with declining community and more vulnerable. final point, anyone getting vaccinated or recently vaccinated has an inoculation satisfying them through the season and robust protection against the delta variant. we're talking about people more than six months out. older individuals who didn't drive the full protection from the immunization because they have immune impairment because of advanced age? >> scott look at the calendar for a moment or your imaginary calendar in terms of when people are getting the booster shots, what age, at what point do you think we will get to -- i don't want to say the other side of this but i'm thinking about the fall with booster shots, depending on age. then we have hopefully kids

getting access to this what point do you think that you can -- i don't know if we can ever claim victory any more. but something close to victory >> well look we're transitioning from this being a pandemic to more an endeming virus in the united states and probably other than other western markets still a pandemic in a lot of parts of the world where you don't have high vaccination rates but we're going through the process. i want not at binary point in time but after we get through the delta wave this is more endeming where you see sort of persistent infection through the winter, pervasive but not at the levels we experience now. and it's not necessarily dependent on the booster shots the booster shots will drive us further into the endeming phase as we protect more of the population particularly the vulnerable population. but it's driven more by the delta wave coursing through the u.s. population getting to the other side of this. >> scott, in terms of the boosters, i know moderna is working on one i don't know if pfizer is working on it in this respect,

to actually change the formula to deal with delta itself. >> right, both companies are working on it. you know, pfizer is putting into clinical development, doing testing on it, underway right now, moderna as well the hope is you never need to use it the presumption is that the existing vaccine covers this new delta variant well and wouldn't use a delta variant vaccine in this setting. i think any time a new variant comes along looking concerning you'll see the manufacturers start the process of developing new vaccines targeting those new strains. so you have it in the back pocket in case you need to pivot to it. the good thing about the vaccines is the manufacturing process is plug and play you don't have to start trying -- >> if you wanted to get boosters that were specific to delta, how quickly could we have access to those? >> well, you could start manufacturing them in volume right now. you'd still have to go through the regulatory process but the reality is that you probably want want that unless

you have clear evidence the existing vaccine wasn't effective. even if you might surmise a new variant vaccine targeting delta might be more effective against delta, you don't know how it works against everything else. we have a lot of data on the existing vaccine, know it works well consequence everything else you take the bird in the hand in the situations unless you see a big dropoff in effectiveness of the vaccine against the existing strain circulating we don't see that right now. >> you know, dr. gottlieb what investors are trying to figure out is how long the new stream of revenue is going to be for the likes of a pfizer and a moderna. so to that end, should we assume that these booster shots are going to be every six months for years out that it's going to be like a flu shot? >> yeah, well, look, i certainly don't think it's going to be every six months i think what we said from the outset is this could become an annual inoculation much like the flu shot it's unclear right now -- it could be the case once you

receive a third booster patients are dravrg a more durable immunity or people who aren't immunocompromise ds will drive a more durable response. that doesn't mean they're protected always they might need a subsequent booster. it might be every other year once you space them out longer you might drive a more durable response for some cohort of patients those immunocompromised more frequent not six months but annually for the rest of the people might be annually or every other year. we don't know how durable the response will be after the third dose the other big concern is the does the virus drift does it drift a and the vaccines lose effectiveness then you need to reformulate the vaccines like we do the flu vaccine because the strain changes each year we'll have to see how much the virus changes over time. the presumption is it's going to continue to change but certainly not at the rate it's mutating right now. >> let me ask you a question if i could getting back to the origin of this whole thing

“washington post” has a headlin this morning, dr. gottlieb says in a new documentary the w.h.o. scientist involved in the investigation says that kminz officials pressured the investigation and the investigators to drop the lab leak hypothesis. where are you today in your mind about how this thing originated at the start can we definitively say at this point we think it came from a lab? do we work our way back from that where are you. >> look, i don't think we can definitively conclude where it came from right now. certainly the side of the ledger that speaks to the possibility this came out of a lab has grown over time. the side of the ledger points towards to zoonotic source is stagnant we haven't found a species it could have come from, haven't pieced together a good thesis how this came out of nature. that side of the ledger hasn't budged since the early days with the exception of slight

additional evidence in terms of the genetic sequence as we evaluate might point that direction. i think this is still a question of very much open to debate. and i don't know that we're going to have a definitive answer we're awaiting the 90 day report from the u.s. government intelligence agencies that might inform the discussion. the reality is that w.h.o. investigation was not a w.h.o. investigation. it actuallies with a joint investigation between the w.h.o. and chinese officials. so they jointly shared the investigation. the chinese government did not cede control to the w.h.o. team. it was portrayed as a w.h.o. independent investigation. it was not the chinese government participated in that investigation. and had a say in the final conclusions that came out in that report. >> this is apparently coming from the person who actually led the joint investigation, saying that chinese colleagues influenced the presentation of their findings >> right we know that you know, we've known that it hasn't been widely reported but

the chinese government participated in the drafting of the final conclusions. like i said, this was a joint report between chinese government scientists and the w.h.o. team. this was not an independent investigation by the w.h.o. team they had to work jointly with the chinese counterparts inside china. that -- that right there says that this was a joint report the chinese government officials who participated in that joint investigation influenced the final outcome of that report and it was portrayed by the media as independent report. it was never independent if you look at the initial drafting of the guidelines of that team. >> scott, i want to pivot to a slightly different issue, not vaccines but actually therapeutics because it's something we haven't talked about for quite some time. i know early on there was a view that perhaps therapeutics were solving or problems before a vax. would. where are we on therapeutics given it seems like remedies vir which clearly works in the hospital setting was notified to inhaler. i believe they stopped the tests. what's out there on the horizon?

>> yeah, this is a druggable target i think we will get small molecule virm replication. that should help we should be able to drug the machinery to use it dp one is phase or two or three stead one from merck licensed by a another company a good drug finding company. they are furthest along. look aing promising in early stage clinical trials in pivotal trials there is a third drug buy roche further behind there is a possibility that we could have a drug available this winter from one of the clinical trials i think the clinical trials themselves will be challenging to run because you're looking to run trials that either demonstrate that the drugs reduce the symptoms of covid or reduce progression to severe disease, or reduce the likelihood of coming down with covid if you're exposed to it when you try to run the trials

against a backdrop of a largely vaccinated population to loorigg back return to work. we started the about facebook in fact moving back from october -- bringing people back in the office in october now moving to january, amazon doing something similar i know a lot of other companies thinking to follow suit. again this goes back to looking at the calendar and thinking about vaccines for children, vaccines for adults, booster shots for adults how are you advising companies to think about that? >> yeah, well i think what's going to really drive the decisions is what is the delta wave look like in the northeast and other places now where you see companies moving back, back

to work dates, we're likely to see a pick up in the delta infection probably my guess is late september you're see the delta wave course through late september through october, hopefully on the other side of it sometime in november. and we won't see a big surge of infection after this on the other side of the delta wave you'll see persistent pervasive infection but not at the levels we saw last winter if we follow that time line, if companies don't want to be reopening in the throws of the surge of delta wave, whatever the contours look like don't know how big that's going to be -- then the prudent thing to do would be push it past october. we'll see that pickup late september. we're not seeing it right now. if you look in the tri-state region you don't see a lot of delta infection. hopefully we stay that way because of the vaccinations and prior infection we had. >> doctor, is this a shift in your view? i ask because i listen to you every day when you come on the

program. i thought in my head at least that you felt that things by the end of september were going to really shift and move down in terms of where the peak was and now we're talking it sounds likened of october potentially into parts of november >> well, look, the south is definitely showing an indication that cases are coming down this is a big country. and delta wave will sweep across the country in a regionalized fashion. the south is looking better in september. i think there is already indications cases are declining even though the pressure on hospital systems is getting worse. the situation from the patient standpoint is going to continue to get worse before gets better even as new cases start to decline on the day over days basis. by september hopefully you'll see the other side of the curve in the south very clearly. but cases will be picking up in the northeast, the great lakes region, maybe the pacific northwest. they're later to experience the delta wave it's probably going to coincide with the restart of school, some

businesses returning if you look at last summer as well, you had a big surge of infection in the south things felt pretty good here in the tri-state region as we got into september cases started to pick up as -- by the time we got into november or late october that's when you really saw the surge of infection. it probably will come a little bit earlier this year because this delta variant is so contagious and my guess is you start to see the pickup by the end of september and see us in the throes of it in october. how big the peak is we don't know hopefully we're somewhat children in particular. >> especially the unvaccinated children how do we deal with that >> this is why i think schools need to start the year with a level of caution and humility

about the uncertainty with the delta variant. we dent know hue hard this will be to could control in the school setting this wouldn't be the time to withdraw mitigation tactics we though can have impact on trying to control the virus in those settings the goal is keep kids safe first and foremost, secondary goal back for insclas learning. if those are the goals you want to start with all the tactics you can implement in place your full complement of tools, masks keeping them in defined social pods trying to improve ventilation, all the tools we know work on the margins to control infection. >> scott, we appreciate your perspective. i -- i -- personally this time hope you're wrong. i always say scott is like my got on this stuff. he has been right. >> yours and mine. >> and i do think there's been a shift now. we're going to have to keep our eyes on it have a great weekend, dr. gottlieb always appreciate it coming up when we urn are disney ceo defending the decision to require all employees to be vaccinatsion

and the latest quarter and the programming note, don't miss the special cnbc hour on consumer spending in america from rising prices and cryptocurrency to struggling small businesses. make sure to tune in at 6:00 p.m. eastern time f aorn extra hour of "fast money" tonight. u.s. stocks and etfs. and a commitment to get you the best price on every trade, which saved investors over $1.5 billion last year. that's decision tech. only from fidelity.

we have built up a history of consumer trust and confidence when we opened up walt disney world back in the middle of the pandemic there were a lot of

doubters but through things like the nba experience that we had there, and showed everybody in the world we could operate responsibly in the midst of this pandemic and we've been operating walt disney world now for about a year >> that was disney ceo bob chapek last night with jim cramer shares of dennison moving high are after posting a massive beat on top and bottom lines. joining us now for more with more insight on disney's numbers is michael nathanson, the founding partner and senior research analyst at moffett nathanson. good to see you this morning well. >> good morning, thanks. >> i don't know how you can look at this quarter and be anything other than impressed they actually knocked the cover off the ball yet you're reiterating the neutral rating and $185 price target on the stock. why? >> because the real valuation driver is disney plus. and under the numbers you see a real slowing down of disney plus

growth in developed markets, right? and that -- the park's recovery we have. we think 2022 prophets will equal 2019 profits in the u.s., clear as day but the real question on valuation to me is disney plus and growth slowed down outside of india the past couple quarters and it feels as though the product has hit maturity pretty quickly. that's the big driver of valuations is disney plus. >> all right so this is simple sounding to me like an issue of the company being able to sustain a premium- a more premium multiple. >> that's exactly it, andrew >> it's scott, by the way. >> oh, scott, sorry. >> scott's way better than i am. take it for what it is >> all that said, judging from your comments overnight to the producers and from your note, urine credibly impressed by the theme park performance, which you think can, as you say,

boomerang higher in subsequent quarters >> without a doubt what you're seeing is who ever is going to the parks are paying premium rates. discount does not have -- disney des not have so discount food, rooms, ticket prices the company restaffed and rethought the cost buckets you're getting incredible operating leverage from this point on as he said on the call what you see on the profit margin side will be incredibly high profit margins every dollar coming into the park now will translate to 50, 60% profit the boomerang is going to happen and we've never had doubts about disney's parks we've been disney bulls all throughout until the past year or so. but disney has proven time and time again they get premium rates and customers are willing and happy to pay it.

that's happened through the pandemic you can see even the occupancy down to 50% in the hotels but the per cap spending is off the charts that story is as good as there is right now in the business. >> lastly before i let you run you say dtc losses are likely to have peaked. the subads for plus beat your own forecasts. how do you factor that into kwrgs when coming up with the overall view >> well, the subs came in better but if you look again under the hood of what's happening the subs are growing in india. do you know what the indian rpu is right now >> i don't. >> 50 cents a month. you getting beat by very low value customers, right if you go and do the math and peel out the non-indian subscribers, you're seeing a slowdown as is happening in netflix. >> right. >> again the optics of the quarter look amazing on the disney plus side, you do

the work and get under the hood you see a slowing of growth in the markets they play? >> i thought that was an instance where you asked the question and give the answer even as i'm sitting here. >> he is running a quiz on "squawk" this morning. >> we got to run big hour ahead we're going to talk to alexis ohanian a little bit later and also the mooch don't go anywhere. back after this. ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ i'm dad's greatest sandcastle - and greatest memory! ♪ ♪ but even i'm not as memorable as eating turkey hill chocolate peanut butter cup ice cream

with real cocoa. well, that's the way the sandcastle crumbles. you can't beat turkey hill memories. 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.

all right breaking news, the fd a-oks covid vaccine booster shots for a subset at-risk americans. it's another weapon 199the fight against the delta variant. shares of disney surging in premarket trading. the big bet on streaming is paying off with more new subscribers than expected. and reddit stretches to 11 digits thanks to to a founding round we have a first on cnbc interview with reddit co-founder allisis ohanian, the final hour of "squawk box" on this friday begins right now

good morning, welcome back to "squawk box" right here on cnbc live at the nasdaq market site in sometimes square i'm andrew alex sorkin in for joe and becky we thank you for the ride. in the meantime u.s. equity futures on this friday morning, let's show you where things stand. looks like the dow opens higher about 54 high are. the s&p 500 up about a point nasdaq off 20 points also showing you treasury yields, flip the board around and show you where the 10-year stands right now looking at 19.351 melissa. >> here are stories investors will be talking about. the food and drug administration authorizing a third dose of fidser be with moderna covid-19 vaccine with people with severely weakened immune systems including some americans who have had organ transplants or certain kinds of cancers or disorders. white house chief medical adviser dr. fauci said last week

that new data suggested the individuals do not produce adequate immune response after two doses. the cdc has to sign off on the third shot before they begin meanwhile, the fda says people are not severely immunocompromised are still adequately protected by shoe shots. in the meantime check out disney, the dow component reported adjustly quarterly earnings above street consensus beat performs. helped by theme park park. and the company did warn of uncertainty surrounding the impact of the coronavirus delta variant. and then there is airbnb moving to the downside the company posting a smaller than expected loss for the latest quarter, beat revenue estimates. sales quadruple for a year ago as uds rebounds from the pandemic lows. but they pointed to uncertainty over the pandemic and delta variant. shares down 2%. the other development on the covid pronate to tell but. supreme court amy comby barrett

refusing to stop a mandate that students and employees get covid-19 vaccinations. rejecting a request by eight students by students saying it would violate constitutional rights first time the supreme court weighed in on the vaccines barrett did not give a response or ask the colleagues. it does pave the way for more educational institutions and perhaps corporations and others to mandate vaccines without legal recourse to the extent that there was a view that there could be people who might sue. >> scott. >> let's get back. thank you. let's get back database i thought you guys were going to have a chat. >> we can have a chat. >> i was anticipating a chat. >> no. >> chatting. >> chat with santelli. >> et cetera get ready for the final trading day of the week. can that be any more awkward.

>> mike has been checking out bell weathers for clues about the rally staying power. i think everybody is wonder bag the staying power, getting inflation and thinking about the fed. michael. >> we have the list of things that could did he rail things, scott. but i think the main feature of this market has been how impressive the staying power, the persistens of the rally, not particularly high momentum or exciting recently but the s&p 500 right now we know hasn't had a 5% pullback since the fall august is tenth month where we registered all-time high in the s&p 500. if you look it's only a few times that's happened ten straight months mostly in the middle of bull markets not up to a major peak final point on this sort of angle and the fact that it's been so resilient reminds me of the years i mention, 2017, 2013, post-election years where you had the relentless rally with a lot of rotation underneath we'll see if it finishes that way. even in those years you had some periods with downside chop

especially in late summer. look at the at the small cap measures this is not really a leader to say the least. for several months the russell 2000 as you can see looking at peak back in february, march i put it up against the small cap 600 because obviously it's slightly larger companies on balance versus the russell 2000. but also small cap 600 are small cap companies right leer at parity you see the separation markets trending toward stability, profitability, away from the smaller and more speculative stuff. in terms of bellwether groups it's a mixed picture look at the broker index, racing higher if anything running kind of a little hot here. today a downgrade of morgan stanley one of the leaders in the area you obviously have the capital markets humming, high liquidity environment, fed's out of the way. that part of the bellwether set looks good against semiconductors yesterday, a rough day, kind of compromising this idea that it

broke out of the range to the upside because you are back to the multimonth threshold plechls. the transports struggle pd a bounce here. nothing falls apart but an uneven picture in terms of leadership obviously hesitation about the strength and pacing of this economic recovery through the delta variant, guys. >> delta is the great unknown, mike. >> yeah. >> you listen to what dr. gottlieb just told us a few moments ago of the progression, how it's highly regionalized and the northeast will deal with it into the fall and maybe portions of the midwest, it's going to be an issue the market seems complacent in some respects about what may lie ahead. >> well, the market -- think about last year and how much worse we thought we would have it and in fact did eventually have it prevaccination before you had the vaccine. we still were kind of trying to look through it. i think the market -- investors are more emboldened to say we

have seen the curves we know it's tougher and it peaks and unmore excuse for the fed to go slower and keep the liquidity side pretty flush. i would interpret that as being that kind of premise, markets are operating on but i showed what transports are doing. you look at some of the deeper cyclical groups they've been consolidate a while. it's not like the market isn't paying attention to the areas might get hit. but it's rotating as opposed to exiting. >> mike, thank you >> yes. mike sandly shoing us. a big interview with 776 founder and reddit co-founder alexis oohanian as the company reechgs of $10 billion plus another big week for cryptocurrency with anthony scaramucci check out doordash, posting a wider than expected loss for the second quarter but revenue beat estimates, gross order volume, up 70% from a year ago and doordash raised the full year guidance for the metric. don't miss the ceo in the first

on cnbc interview later in "techcheck." stay tuned "squawk box" will be right back. h creamy premium ice cream and chasing fireflies. don't worry about me. i'm fine. you can't beat turkey hill memories. new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today.

welcome back to "squawk box.

reddit the social media site spawning the meme stock trading trend. reaching a $10 billion valuation in the latest funding round. saying it has raised more than $400 million from fidelity and plans to raise $70 oh million in total. plans to go public joining us now is the co-founder and former executive chair the founder of 776 congratulations, alexis, on just this -- you know, i mean, you knew it had blown up a long time ago. but it's blown up even more. >> this is a great milestone and don't get me wrong all credit to a lot of hard working great people who are putting in the work and obviously the reddit community, which just continues -- continuing to prove the point that community is one of the strongest assets a company can have >> how big a company do you think this can ultimately be >> i mean, look, the -- i'm very, very long on the power of community. and i think one of the things we sort of lucked our way into back

in 2005 was this reality and so i think the sky's the limit. and i think every business is really now taking notice to the power of actually having an incentivized and motivated audience that isn't just sort of being used or mined for their information but actually contributing to something much bigger than themselves >> how do you deal with misinformation at this point in the ball game? i asked because clearly this is an issue on facebook but i would argue it's an issue on reddit too. i spend time on reddit there is legitimate information that's just factually untrue, whether it comes to covid or other issues when it comes to issues like covid it's not just whether it's right or wrong it has real implications. >> well, look, i can speak holistically, right? this is going to be the great challenge of i think this decade in many ways because we have, you know, the very real situation that the vast majority of people are now

getting informed by sources that are, you know, people just like them in many cases and so as the traditional institutions have both lost a lot of confidence in the eyes of people, as well as just sort of gotten outmatched when it comes to sort of quantity and even sometimes quality of content, i don't have a good answer for this i think at the end of the day media literacy continuing to be really important there is absolutely responsibility for each platform to figure out where any draw the lines. i've obviously talked about that very publicly. and i think ultimately we have to find a way to navigate this together, because the end result is, you know, we have a society right now -- you mentioned mem stocks -- we have a society where across the board people have lost faith in all the big institutions, whether it's financial, media. >> right. >> higher education, et cetera, et cetera, the list goes on. technology is going to be a part of that new solution but it's all getting built literally as we speak.

>> one of the things i'm concerned about -- i don't know what the answer is. >> um-hum. >> is that there are a lot of people online as you said who don't trust the established players, experts, if you will, big institutions, and yet as a result they almost disbelieve anything that comes from them. and as a result you have this -- this sort of conundrum, soup of misinformation where when you're trying to present factual information to people and they almost instinctively decide that it's untrue, when it is true and if you're somebody like myself sitting in the seats that we're sitting in in the media or others that do this professionally that think we're doing this in good faith, think we spent our careers trying to tell truths, if you will what -- how are we supposed to think about that and also how you think about the psyche of the users that are on the platforms? because they seem to prop up

each other, if you will. >> and i think this is -- look, this is a great challenge. you have -- there are discussions on you know science communities on reddit that are more rigorous and thoughtful than i wouldfind just about anywhere because it's actual scientists practitioners a talking civilly and thoughtfully but it's a spectrum, right and sink we're at a point now where -- and i think we're at a point now at the very least we can't get any less trust or faith in these big institutions. and i hope what comes out of this is we start seeing more built sort from the bottom up and technology does empower this in interesting ways. what substack is doing for new journalists who build the audience relationship with the readers and make a living doing. i'm not an investor in substack. but i think it's a trend of what is the rebirth, i hope of

institutions and they're going to be born from the bottom up, with the community of people who really feel a much closer one to one connection, as opposed to an abstract institution you just have to trust. but believe me, i -- when it comes to the pandemic i think we could have gotten a lot further had we had a lot more consensus and trust in the institutions and harder conversations but thoughtful ones a lot earlier. and, you know we're in the situation now where, like i said, i think we're watching technology enable what this next wave is going to be. the only thing i'm sure of is that community is going to be a core part of it. and it's going to be built from that bottom up and it's the top down old school institutions that have the biggest challenge. >> i mean, i hope that rebuilding happens quickly because this has become sort of an ecochamber in confirmation by a soup all mixed up into one that's going on in the online platforms. but alexis, back to sort of the financial side of things, and you mention meme stocks in the latest quarter reddit posted

$100 million in advertising the first time ever np and a big part was because of the millions of users gained thanks to or in part thanks to wall street bets and financial forums i wonder from your perspective, did you see that coming? and how durable do you think that trend is? do you wake up and look at amc or gamestop and as a barometer of whether or not the activity is going to continue >> so, no, although, you know, i do believe in power to the gamers i do think, look, the -- these forums, wall street bets in particular has been around for years. a perfect storm happened, you know the start of this year. and a lot of people learned about it but i think if 16 years of building community has taught me anything it is that you really can't predict all that much when it comes to the sort of ingenuity and creativity of people combined with the just

sort of serendipity of what catches everyone's attention and i think it serves ceos well that i coach today as an investor, to really do their best to build the tools and build the community space, to attract the users who care, who are incentivized, motivated. and then see what they do, give them some -- some basic tools to create and they'll more than likely outinnovate even the smartest room of the hardest working people because they have scale. i think that's the story we are seeing of the internet play out time and time again. and, you know, i -- the meme stock phenomenon is not going away this is the new norm. >> but alexis let me ask you about the meme stock phenomenal? is a healthy environment look, there is a lot of smart people on wall street bets, reddit, talking about these things people clearly clever when it came to understanding the short

squeeze opportunity early on with gamestop and the like but at the same time i would arpg now especially in the context of amc -- i know i'm now going to be slaughtered on reddit and twitter on other places for saying this there does seem to be a disconnect between valuation we talked about the manifesting your own destiny where if enough investors decide to give enough capital perhaps you can get to the other side and a better place. but do you look at this as a positive development i think long-term it is a positive development i think we are in in messy intermittent period where we still, you know, where we see a lot more volatility, where it's not a floral thing it's not a mainstream thing. it's quickly booking mainstream, for instance, to be day trading on your phone. but the -- i think the inevitable future here -- you know i've come out and talked to you about trading cards and how excited i am about that sort of

alternative asset space. i've had like 13-year-olds show me their rainbow wallets for nft and brag to me about how much money they made flips board apes or cool cats we have a generation coming up that is going to have a more fundamental understanding of markets than i certainly did as a kid. i think that shift is happening very, very quickly again, thanks to technology and ease of use we're in the weird face phase in let middle where you have a bunch of traditional institutions you still have a bunch of early adopters who are now investing and very excited to be doing so. and then you have a whole lot of people still not yet sort of onboarded into this new reality. and -- but i think in the long-term more democratization of financial access and financial literacy is a good thing. i would rather see more people

be able to be sort of partake in this than fewer. >> there does seem to be a generational shift, alexis, in terms of the newest generation, not just its knowledge and desire to know the markets but also its attitude toward money sports betting is really easy, investing in an nft is really easy at the end of the day it's about making quick or fast money that's the mantra. when you look at instagram and all the feeds with the cars and young people, that's -- that's the end goal and so when you're making investments now in companies, how -- how does that creep into how attractive that company is it seems like a generational shift in attitude toward money and how you make it. >> you're absolutely right there is the sort of b.s. instagram posturing. i hate it. i think it's toxic i do think -- here -- and this is going to feel weird, right.

but there are people who collect nfts simply because they love them and they love the community of people who also collect them and yes there are speculators, people who flip them but there is a culture around it and a community around it just as real as the community around anything you love, your favorite sports team, your faith, like community is something we as humans just have wired in us and the thing that we lucked into with reddit was building a platform enabling hundreds of thousands of these to thrive what's changed now is -- especially with blockchain -- and more democratized access to investing for instance, is you get to feel a part of a community, own a stake, literally in the community and as more people believe in it and subscribe to it, your stake becomes more valuable. and you're thus just more incentivized to keep believing

in it and evangelizing it. and we've never seen this play out the way it can now thanks to the internet and tweets a thousand times about the pujy penguin. i know it seems weird. i know it seems very, very weird. but the fundamentals here are -- are about human nature and i think that's the part i'm most interested to watch, because i have seen -- we have all seen people take dogecoin, a total farse, based on a joke to market caps that rival real companies with real inventory and employees and revenue. simply because everyone wanted to believe in it and i use that as the mental bellwether for if this can be asked, purely medium into a reality, that valuable to that many people, then surely there are opportunities for things that have more substance, have more engagement, have more

realness to them to grow to such heights. >> alexis. >> that's a wild proposition >> it is a wild proposition. maybe it's generational. maybe -- maybe the world changed. maybe it's weird maybe we're at the ebbed of a cycle who knows. but we will find out one way or the other over time. we look forward to continuing the conversation with you over time we should also mention on the new funding that reddit has that news don't miss the exclusive interview with the company ceo later on this morning on "techcheck." big thanks to alexis. live to pebble beach where astronomical amounts of money will be spent on classic cars. robert frank live in california all over the surge in auto collecting as an investment. what do you have coming up for us, robert >> good morning, scott great to see you well over 1,000 cars expected to cross the auction block this week the most important of the -- of the year for classic cars, including this $2 million

lamborghini. but we are showing t mheost expensive carve the week, coming up right after the break

re-entering data that employees could enter themselves? that's why i get up in the morning! i have a secret method for remembering all my hr passwords. my boss doesn't remember approving my time off. let's just... find that email. the old way of doing business slows everyone down. with paycom, employees enter and manage their own hr data in one easy-to-use software. visit paycom.com for a free demo. it's time to switch to t-mobile. right now, pay zero costs when you do! keep your number and keep your phone - - we'll even pay it off! only at t-mobile. the leader in 5g.

being -- after being cancelled in 2020 because of the pandemic an isaac iconic car collecting conclave is back. robert frank joining us from california where big money is about to be shelled out. you have some sweet rides around you, robert. >> yeah, scott and pebble beach is back with a vengeance you know, tens of thousands of wealthy collectors rolling into pebble beach and monterey. there will be not international buyers this year but that hasn't slowed the incredible bull run we see for classic karps. if you look, sales this week expected to top $325 million if they hit that, that would be up over 28% from 2019 before the pandemic a lot of the action now, though is online. if you look at total online and

live auction sales this year to date, already topping $1.0 billion that is up over 30% just from 2019 >> it's all about liquidity. and the new liquidity coming from new places. we're hearing people who have done spac -- spac and despac transactions, crypto, all of the sort of modern effects of our booming economy are evident here and i have a feeling they'll be some of thewinning bidders >> and these star ever the week here guys is a mclaren f 1 they only made about 100 of these cars the father of the modern supercar a holy grail for supercars, the car could sell over $15 million at gooding rm sothebys has a porch 917 k. this was the movie steve mcqueen movie le mans with a famous car with a pedigree

that could become the most expensive porsche ever sold. if that tops $14 million but the price movement, the meme stocks if you will of classic cars are the jeeps, trucks, suvs. you see chevy blazer yesterday here at mecum, a 1974 chevy blazer sell for $64,000. you've got broncos now selling for over $70,000 so all of these young collectors that have piled into the market during the -- during the pandemic and got the bug online, they're driving these prices of these older suvs and trucks. you've got strength at the bottom and at the very top it's going to be an interesting week >> all right, robert, thank you. robert frank, beautiful cars there. we are just actually here rick santoli standing by with numbers, please. >> you know when we're having so

much fun time flies who doesn't love cars, especially the '59 cadillac with the finishes july, petroleum prices on import prices up 0.1 less than expected the headline number for import prices up 0.3. we could see petroleum play a big factor there but here is where the numbers get interesting. import prices year over year up 10.2%. remember, 11.6 from a couple months ago was a 10-year high. these are sticky again to the export side of the equation export prices up stronger than expected the imports on the weak side in x petroleum. exports not so much. if we look at year over year export prices at 17.2 -- 17.2, that is very close to 17.5 from may, which was the all-time high

going back to 1984 besee export prices are sticky import prices not so much. and that's interesting because we are definitely importing much more aggressively. think trade deficit. the fact that we are importing things that aren't necessarily as pricey maybe gives some people confidence with regard to the pricing issues we all know that are coming or here to some extent and we also know that on the inflation front makes it very difficult to trade things like fixed income markets one day the market is selling off thinking inflation is down the road, even if it's sticky, the next day many don't show up for auctions, thinking after a hot ppi and cpi maybe they've misjudged. look for the back and forth to continue on what's noteworthy here is that if we continue to monitor interest rates they have snugged up rather dramatically any type of yield close in tens over the next two or three weeks that has a 1.4 in if i would

like to see more aggressive selling coming in. andrew, back to you. >> rick, have a great weekend, my friend. >> you too. >> when we come back right after this we're talking more about the delta covid variant impact on wall street's return to work plans. plus crypto with sky bridge capital anthony scaramucci, a conversation you don't want to miss sometimes he holds back too much but, no. we'll hear it all from the mooch right after this fermentation? yes. formulated to help you body really truly absorb the natural goodness. new chapter. wellness, well done.

♪♪ it was my dream to be an entrepreneur based upon the examples that i had growing up. and that was important for me because you can't be what you can't see. the ey entrepreneurs access network has a tremendous impact on my business and other african american and latino entrepreneurs across this country because they give access to networks, business opportunities and capital.

introducing xfinity rewards. our very own way of thanking you just for being with us. enjoy rewards like movie night specials. xfinity mobile benefits. ...and exclusive experiences, like the chance to win tickets to see watch what happens live. hey! it's me. the longer you've been with us... the more rewards you can get.

like sharpening your cooking skills with a top chef. join for free on the xfinity app and watch all the rewards float in. our thanks. your rewards. the big news overnight, the fda authorizing a third dose of pfizer or moderna covid-19 vax for people with severely weakened immune systems. several million americans with organ transplants or cancers could be eligible. former fda doctor scott gottlieb weighed in on the boosters. >> this could become an annual inoculation like the flu shot. it's unclear it could be the case once you receive a third booster patients drive a more durable immunity, or certainly people immunocompromised will drive a more durable response. that doesn't mean they are protected in perpetuity.

they may need a subsequent booster. it might be every other year. >> joining us now to talk about how wall street is handling the spread of the coronavirus delta variant, anthony scaramucci, sky bridge capital founder and comanaging manager and cnbc contributor. good to see. >> you hi, hellsa. >> what do you make of the return to work mandates we've seen from wall street nerms, morgan stanley saying i'll be disappointed if you don't come back to the office soon? >> well, listen we we want back to the office on may 3rd i made a decision on monday to close the office through labor day because of what's going on with the delta variant and had the opportunity to talk to dr. gottlieb about the conference but jim's point i discovered we are way more productive in the office most of wall street sits in a blp setting. and there is of cross synergies and pickup of trading data,

relationship data, et cetera it's hard to do from home. i speculate what jim is saying but we want to be cautious and put the health and safety of our employees first. but i do get the cultural need for wall street firms to get people back to work. that's when we find ourselves having the greatest level of productivity. >> there is such a discussion these days anthony about whether things will get back to normal and questioning of being in the space. as somebody who believes in an area really benefits the business, i mean, what do you make of, for instance, folks in silicon valley decamping and going to austin, decentralizing silicon valley, if you will? >> again, it's a different culture. there is more technologists there. and it's a lot easier to do those things in an industry like silicon valley or venture capital where the technology firms like facebook or google. and so i think what you have to do, melissa, like everything in life, you have to look at what you have in front of you, look

at what the variables are and the strengths or weaknesses of the employees and utilize it to the best of your capabilities. tomorrow will be my 32nd anniversary on wall street less my 11 days in washington and i find that we work better together in a bull pen setting you remember make bloomberg when he got the mayor's job he cleared up city hall and put a bull pen in there. because that's the culture i get the austin thing obviously states like california and new york are going to have to become more tax competitive if they want to keep these people. >> anthony, it's scott, good morning. it's good to see you you at sky bridge have taken a get vaxxed or get axed, if you will, stance, i wonder if you think that more and more companies are just going to do that, especially once the fda formally approves the vaccines where is your thinking on that. >> scott, i certainly hope so.

listen this is a leadership issue. this is a personal safety and a freedom issue. you know, i have the freedom to move my arm. but i don't have the freedom to close my fist and put it in somebody's face. this is a freedom issue for all people and so the vaccines will create more freedom, not less freedom there is an ideological struggle going on in the united states right now that's not based on science. it's not based on health and safety and it requires real leadership. requires corporate leadership and political leadership to plain to meme like your children have an immunization record at school we need an immunization record to protect health and safety of people around us it's a leadership issue. people are upset i get hate mail. i don't care when abraham lincoln was trying to put the union back together he abolished elements of the constitution including the writ of habeas corpus

ultimately we have to measure our personal freedoms and the safety of everybody around us. i think it's very selfish not to get vaccinated people like scott gottlieb explained the health and safety issues around the vaccine. it's safer to get vaccinated why put your family through the struggle and the hospitalization god for bid. i feel strongly about it i have no problem speaking about it but i will say this, the establishment for whatever reason, there is a very large portion of our population that has lost trust in the establishment. and we have to build that back to get the people comfortable with things like these vaccines. >> we brought you on to talk crypto, anthony. let's talk crypto. this week we've been talking about the notion of stable coins, specifically circles u.s. dollar we talked to ceo of coinbase talked to bob diamond whose spak is taking circle public. the notion that it was marketed

at one point as one u.s. dollar for one u.s. dollar coin and how that's not necessarily true. they pivoted in terms of the message releasing the report in terms of what assets back the u.s. dollar coin in your view, is there any element of risk to the financial system could we see a run -- is a situation in which one u.s. dollar coin is not worth one u.s. dollar? how concerned do you think we should be? >> well, the first thing i want to do is employ the reporting on "squawk box. i think andrew asked great questions. we had gotten to the bottom of what the issue is. mm of us remember the money market crisis in 2008 into 2019 when the money market dollar peg broke. and we should be concerned about this i'm glad it's getting cleared up this is still the early frontier of decentralized finance the good news look at what happened in may. we lost 40% to 50% across the

board whether it was a bitcoin or other coins and yet there wasn't a commotion imagine if a trillion dollars got taken out of centralized finance and impacted the banks or was targeted on our great regional banks or so forth and so for me, the decentralization of this community is very powerful and it's offering a risk defussing. i think it's important for regulators to understand that as well so, yes, we should be concerned about it have to tighten it up. they have to be more transparent about what they're doing but i don't see the risk there as a result of this massive decentralization >> anthony, the other question i wanted to ask you was about the tax fight earlier this week when it comes to crypto involved in the infrastructure bill and the amendment that ultimately didn't -- didn't shift but it seems to represent a moment in time in terms of the power of the crypto world

pushing back on regulations. and there is -- i think there is a real question. would it help for the crypto industry to effectively accept regulations because it would therefore allow it to even move forward even more? or do you think the goal of sort of trying to push off regulation as long as possible is the better path in terms of the future of this >> so i'm no the former category, andrew i think we need the regulation i want to embrace the regulation i think one of the most important stories in cryptocurrencies it the gary gentzler speech. look very carefully at the speech he more or less said there is a likelihood the etfs, bitcoin futures etfs could get brauvd. he applauded stoshy nakamoto in the work i like what happened over the last ten days. we are in the realm where bitcoiners and cryptocurrency people need to recognize that the government is going to

regulate it, tax it. but it's going to be part of the stp. i think that's great for everybody. it's quite reminiscent of the junk bond market in the early 80s where people weren't sure what they would do as it related to regulation of that market that worked out. but you brought up something interesting. and a lot of the people watch your show. it's the meme stock people, the bitcoiners there is a bee swarming community that washington better watch out for, meaning if they don't understand crypto and they're going to regulate and tax crypto in a way that they don't understand it they're going to get inundated with calls from the group of people i think washington learned that the last ten days. that's a good thing long-term for the industry you know there are coiners out there that don't like it they're classic libertarians, don't want any regulation. but i'm a realist. i want to accept it and embrace and convince more institutions to be part of the story with us, because this is the future of

finance, andrew. we have to be prepared for it. >> so, you're an ex-washington guy, anthony you got a glimpse of how things work down there. >> i got a ph.d. i got a ph.d.. it took me 11 days to earn it. >> that's for sure how much has sky bridge devoted to lobbying recently in it sounds like you are ramping up for a fight when it comes to regulation in d.c. >> we haven't dedicated anything to lobbying frankly. i'm not a lobbyist thes. i haven't paid any lobbyists i mentioned my concern to many so of the washington politicos that i know. but i'm not a lobbyist in fact, if anything, all i'm really looking for is tell us what the rules are sky bridge wants to operate inside the rules and we want to educate our investors about why they need to own some bitcoin, why they need to own some ethereum and be part of the long-term trend but, no, i'm not really gearing

up for a fight as much as i would like to explain this i find when people understand it, kemp rathers of mine in the industry guys like dan lobe, elder statesman, people like ray dalio or stan. when they understand it they want to own it when they don't understand they're afraid of it i want people to get more educated as they do they'll own more and more of these sorts of currencies >> anthony, you don't think some of the volatility we've seen -- not that long ago again that bitcoin was under 30, albeit just slightly and now had a great bounce back. that that just puts some people off? not just novices either. there are a lot of long-term pros in the same ilk of some of the names you mentioned who are negative on crypto and one of the reasons is because of the extreme volatility among others. it's not everybody who has been

on wall street for a long time is not on the same side of the boat on this issue >> well, listen, you're right, scott. it is an emerging market, an emerging asset class i'll take you back to the late 90s when amazon came public, came public on may 15th, 1997, a $10,000 investment in amazon at that time is worth approximately $21 million today. if not a little more than that and yet amazon was subjected to probably eight or so moves where it was down 25 to 50%, one move where it was down 80 to 90%. the point being is that amazon was growing and scaling pursuant to met calf's law. there was fear, uncertainty and doubt even a barren story that said amazon dot bomb look at amazon today if you look at bitcoin it's in the early innings. there is about 125 million

people part of the bitcoin universe, 46 million or so in the u.s. if cathie wood is right and i believe she will be. there will abbillion users of bitcoin by the end of 2025 think of the magnitude lots of volatility but look at the art chart. mostly asymmetric upside volatility but you have to ride the wave if you believe this story and the effects of met calf's lawyer, the networking effect associate with bitcoin. >> anthony thank you good to see you. >> good to be here. >> coming up we're talking markets ahead of the friday morning opening bell with another anthony. anthony deespirito from blackrock. "squawk box" returns right after this one call to usaa got her a tow, her claim paid... ...and even her grandpa's dog tags back. get a quote. that building you're trying to sell, - you should ten-x it. - ten-x it?

ten-x is the world's largest online commercial real estate exchange. you can close with more certainty. and twice as fast. if i could, i'd ten-x everything. like a coffee run... or fedora shopping. talk to your broker. ten-x does the same thing, - but with buildings. - so no more waiting. sfx: ding! see how easy...? don't just sell it. ten-x it. ♪♪ ♪♪ ♪ 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 ♪ ♪ walking on air, she is ♪ ♪ fairest of the fair, she is ♪ ♪ miss america ♪ ♪ there she is ♪ you packed a record 1.1 trillion transistors into this chip i invested in invesco qqq a fund that invests in the innovators of the nasdaq 100 like you become an agent of innovation with invesco qqq

a little more than a half hour to go joining us is tony dispirito, from blackrod, the lead portfolio manager of the firm's equity dividend fund as well good to talk with you. >> glad to be here thank you. are you more constructive on stocks than not? >> i'm very constructive still obviously we've had a big run here, but i think there's a number of things that continue to support to market when you think about things in terms of an equity risk premium,

in other words, the yield, stocks still look attractive of course, earnings are strong, and that all, i think, spells good things for equities going forward. >> i mean, can you make the argum argument that earnings are supporting -- >> earnings have been strong if you look over the l.a. year, the multiple on the s&p 500 has contracted modestly, in the 0% to 10% range, so the last year the market has been totally driven by improving earnings. >> are you concerned at all about inflation? i mean, the market frankly didn't seem to be all that concerned right now. >> i that i have we have to watch it carefully

we're see large cpi numbers, a lot of that is transitory. it's caused by the stop and restart because of covid once we get through the initial shock, where does inflation land out? there, the risks are skewed to the upside, to higher inflation. we have an expression around here, when policymakers panic, that's when investors can start panicking. you can turn it on under the circumstances heads that policymakers are not very concerned about it, so it's something we need to worry about. on the company-specific level, i think this is a huge driver of individual company returns all companies are seeing cost pressures. the other critical question is, do we have the ability to pass those costs along to consumers do they have pricing power we've been favor quality businesses certainly there's many definitions of quality, good

business, good management teams, strong balance sheets, but certainly in there you have to include pricing power, so it's increasingly something i'm looking for in companies with the ppi wheres today, it's going to be very important to stock returns going forward. >> it sounds like you're making a case for more cyclical natured stocks is that right? >> well, certainly history -- use history as a guide if you look at the last four or five rear sessions, recessions the reason is pretty clear you go into recession, cyclicals get punished, then they benefit the most coming out. you're seeing that this year from banking stock, energy stocks and then as the cycle matures, that's when you start

to see quality stocks do better and better that's our playbook. >> good friday, tony we -- enjoy the weekend. we'll see you on the other side sometime soon. >> tang you. "squawk box" will be right back sofi is a one-stop shop for your finances designed to work better together. spend with sofi and get cash back rewards that automatically go toward your goals. like investing in stocks, etfs, and crypto. that's better together. or pay down your sofi debt sooner. that's better together. and that's how sofi is helping millions get their money right. (vo) while you may not be a pediatric surgeon volunteering and that's how sofi is helping millions your topiary talents at a children's hospital — your life is just as unique. your raymond james financial advisor gets to know you, your passions, and the way you give back.

so you can live your life. that's life well planned.

back to squawk, defense heaven in iowa the first-ever major league baseball played at the "field of dreams." the movie site delivered a classic. at the bottom of the ninth, a walk-off homer into the corn fields the yankees had just pulled themselves in front. baseball's commissioner rob man field said another must have will be held at the site next august. >> i watched the open. it was straight up goosebumps. i've got to say, when costner walked out of corn and the players front of yankees and white sox, and wearing the throwback uniforms, fox did an amazing job with the open. it was something it seems everybody is talking about. it was just well done. major league baseball will probably have another game there. it was just super cool. >> that's goosebump worthy right

there. >> it was super cool. >> if you liked "field of dreams" this was a special thing. >> maybe i should show the kelds "field of dreams." i want to thank you for hanging out all week. >> thank you for having us. make sure you join us next week "squawk on the street" begins right now. ♪ good friday morning. welcome to "squawk on the street." i'm here with morgan brennan and mike san tollist, live at post 9 at the new york stock exchange we get one last dose of earnings today. look out for signs of the delta vane caseload may be peaking in some key states. delighting as the company's big bet on streaming appears to be paying