it is 5:00 a.m. at cnbc. here is your top five at 5:00. markets kicking off the new trading week with the dow and s&p hovering at fresh record highs and cryptocurrency continuing comeback with bitcoin marching toward the $50,000 mark. the biden administration defending the decision surrounding afghanistan as the taliban gains rapid ground over there. back here at the home front, the race to vaccinate americans

gaining more momentum as top health officials warn of the surge of cases ahead we will talk with the head one hospital in the covid hot spot about the challenges they are facing. fresh comments from one fed head offering new insight into when the central bank may scale an back the easing monetary policies. and some retailers big names with the supply chain challenges it is monday, august 16th, 2021. you are watching "worldwide exchange" here on cnbc. i'm dominic chu in for brian

sullivan today here is how your day is setting up s&p is wrapping up a fresh record last week the tech heavy nasdaq under fore performing for the week. the 10-year stands at 1.27%. turning to oil prices. following data from china. a slowdown in economic activity among the covid outbreaks there. wti down $67.80 $70 a barrel for brent look at cryptocurrency bitcoin prices on a $47,158. ethereum prices up 2%. $3,270 this is amid the comeback in the

price of cryptocurrency. total market value climbing back above the $2 trillion mark. now to the afghanistan story. the president fleeing the country as taliban fighters expand control in kabul. the state department here at home saying 1,000 u.s. troops will be deployed to help with the deteriorating security situation as it works to evacuate embassy personnel there. we have dan murphy from abu dhabi with the latest on kabul and the rest of the country. >> reporter: dom, significant developments this morning. we witness this moment to unfold

two decades and the u.s. invasion of afghanistan. extraordinary pictures in the past 24 hours of taliban fighters, armed and inside the afghan presidential palace that came after cnbc in the middle east was abilile to conf the afghan president fled the country fearing for his safety we saw the biden administration deploying 6,000 troops to afghanistan to help to ensure the safety and security of u.s. embassy personnel on the ground as it worked to evacuate the embassy personnel. of course, at the same time, we are monitoring developments at kabul airport which appears to be the center of the story we are seeing reports of mass gatherings on the ground there right now as thousands of afghan citizens attempt to escape what is clearly a worsening security

situation on the ground. nbc reported shots apparently being fired at the airport today as well. clearly the situation continuing to deteriorate all the while, we heard the u.s. secretary of state defending the u.s. decision to withdrawal troops while calling for a peaceful transition of power in afghanistan, whatever that might look like. listen >> yes, we have seen the reports of the afghans and the afghan government and taliban talking about the way forward. we will work to support those efforts. we have a team in doha to do that working with the united nations and other interested countries like qatar to see if there is a peaceful resolution going forward. a peaceful settlement. a peaceful transfer of power that would be good for the people of afghanistan to avoid further bloodshed.

>> reporter: so, dom, the situation is still unfolding as we speak some likening this to president biden's vietnam moment some going as far as to say this was a hasty and embarrassing end to the two-decade engagement in afghanistan. >> it wasn't just a two-decade engagement, but over $1 trillion for the united states and coalition partners it is not just the airport we have seen reports of casualties, dan. it is universities in the city and places that could be the target of taliban interests. what an exactly is happening with the other parts of the city besides just the airport >> well, dom, greatest fear on the ground and in particular in the region, i'm coming to you from abu dhabi

the worry is that afghanistan is going to become a hotbed for terrorism. also, dom, a number of unanswered questions this morning. including how is afghan leadership going to look into the future clearly that situation also quite concerning at the moment at the same time, how and why was the afghan government and army not able to defend t themselves from the taliban and stop the takeover after all of the american investment we have seen on the ground and the big question of what happens next, dom, which is unclear. >> we already have seen headlines coming out afp saying china is willing to develop friendly relations with afghan taliban dan murphy with the latest on afghanistan. thank you. to the top stories sticking with afghanistan. united airlines started

rerouting flights to india to avoid afghan air space amid the situation on the ground you just heard. the carrier serves delhi and mumbai carriers. fly mumbai has suspended splits flights to kabul nancy pelosi is pushing the $1 trillion infrastructure plan to the $3.5 trillion spending package in a bid to navigate the democratic party ideological divide on the matter pelosi wrote she asked the house rules committee to look at rules that advance both pieces of legislation. some house members have said they won't consider voting for the budget resolution until the infrastructure bill is approved. progressives will not sign off on the infrastructure bill until the spending bill gets approved. you see the dynamic developing.

the department of homeland security is reportedly considering hiring private companies to analyze social media for warning signs of extremist threats following the january 6th attack speaking to a top dhs official, the effort involves large amounts of internet traffic to find leads on potential developing attacks the journal says it is under discussion and not received approval or any funding. back to the markets now. your next guest says the forecast for wall street this summer is three storms followed by sunny skies or a longer-term outlook for equities robert teeter is the head of silvercrest management robert, thank you for being here with us. storms sounds ominous. how serious could they be and what will they be? >> thanks, dom i think the markets facing three storms here. i think they will pass the first is the fed

we had a lot of talk from fed governors about tapering i do think they will take a very tempered and measured approach you don't need to be concerned about fed policy it will shift, but be supportive the second is inflation. it remains in the headlines. i think inflation is above the 2% target for some time. i think we are past peak inflation. that should remove that concern and that storm should pass the last is the one i think investors are focused on here which is covid we saw the michigan sentiment decline last week. we have started to see the effect on real-time economic data from the covid variant. things are starting to cool down a bit at the margin. we are coming from strength. economy is strong and we can weather that storm as we pass through the delta variant. >> which of the three in your mind could have the biggest market impact? the biggest drawdown that could

happen if things go wrong? >> i think from covid. i don't think we will have major surprises from the fed they have been clear in communication. again, i'm not concerned about inflation here the numbers are on the table i think we are past it i think if delta gets worse, i think if it goes on longer, if the economic impacts start to snow ball a bit, investors could have a bit of a surprise or rocky road in the next couple weeks. >> we have not seen a significant pullback for the better part of the year or maybe more at this point how big of a pull back could these storms take the market the 3% to 5% that we have grown accustomed to? wo could we see a 20%? another 30% drawdown like the pandemic lows? >> i think somewhere in the middle ground. we have come a long way. stocks are price fairly here we are optimistic for next year. i don't think we will see a normal correction of 5% or 10%

mostly on the change of the sentiment. whether it is michigan or san francisco fed survey sentiment is turning here. bearish readings have picked up. the underlying support is going for growth i think it is in the middle range. >> robert teeter, thank you. >> thank you when we come back, the resurgence of covid forcing more companies to reinstate testing protocols for employees. we talk to the head of one company looking to help with that process plus, t-mobile is looking into a data breach potentially impacting tens of millions of customers. details on what information may have been compromised. and the risky behavior putting a microscope on young traders. we have a sybu hour ahead when

"worldwide exchange" returns after this break with a hybrid, you don't have to choose. that's why insurers are going hybrid with ibm. with watson on a hybrid cloud they can use ai to help predict client needs and get the data they need to quickly design coverage for each one. businesses that want personalization and speed are going with a smarter hybrid cloud using the technology and expertise of ibm. nice bumping into you. if your money is working toward the same goals, why keep it in different places? sofi is a one-stop shop for your finances designed to work better together. spend with sofi and get cash back rewards that automatically go toward your goals. like investing in stocks, etfs, and crypto. that's better together. or pay down your sofi debt sooner. that's better together. and that's how sofi is helping millions get their money right.

and there you have it- and that's how sofi is helping millions woah. wireless on the most reliable network nationwide. wow. -big deal! ...we get unlimited for just 30 bucks. sweet, i get that too and mine has 5g included. that's cool, but ours save us serious clam-aroonies. relax people, my wireless is crushing it. that's because you all have xfinity mobile with your internet. it's wireless so good, it keeps one upping itself.

welcome back the spread of the delta variant this summer is forcing many companies to rethink the return to office plans. less than 20% of employers were performing covid tests last spring more are likely to look at the testing now. rapid antigen testing is

available and could be done at home one digital health care company is hoping to lead a safer workplace. offering employers at-home covid testing. dr. harris is with us. thank you. let's talk about just how serious a situation the delta variant has become where employers now have to look at this kind of testing to ensure a safe workplace >> good morning, dom thank you so much for having me. we see across the country increased hospitalizations and icu beds full. so, we know we are in the middle of the surge it is not impacting every region the same, but there's no doubt we are in the middle of the surge. we are also in the middle of going back to work and going back to school and we should be

doing those things and doing those things and facilitating back-to-work and school as safe as possible. the collaboration with quest and emed the opportunity to foster safer workplaces using our platform for testing. >> i'm curious, because for many of us out here, who have been working, i joke around tongue-in-cheek. serious, but not i did not have a pandemic experience i've been in the office since march of last year and since the summer of last year, my company has been testing employees on a regular basis. how much do you think it will be a hurdle for other companies to get employees to adopt this paradigm of having to test to ensure they have a safe workplace? >> you know, dom, at e-immede-immhe-med, we said we want to do the right

thing. you are fortunate with a workplace that is doing the testing. that is uneven particularly early on. that is why e-med was very committed to democratizing access we want employers and employees to make sure the workplaces are safer. testing is a critical component of that. through the e-med platform, it makes it easier for employers to offer this testing not only that, dom, what is unique and the added advantage of e-med is that we have certified guides walk through the process because we know we want to make sure that our results are certified. we want to verify and validate identities it is not enough to take the test you need to take it in a

certified process. these tests need to go to the public health departments at the local, state and federal level to mitigate outbreaks and have the data we need to further address the surge. >> dr. harris, over the course of the last year, in the context of testing, there had always been a delineations or separation of the quality of pcr tests versus those of rapid antigen tests available in 15 to 20 minutes do you feel as though the technology right now has made it so the pcr tests and rapid anti dp antigen tests are a good way to detect covid >> dom, there were unfortunate comparisons early on it is about right place and right usage. i can say the rapid antigen

tests e-med deploysis good at detecting infectious individuals. that is the goal it is not about pcr versus antigen. it is about both they are appropriate for different kinds of usage if you want to, again, increase the usage of these tests in a manner that is affordable, certainly the rapid antigen test through e-med is the way to go >> thank you, dr. harris come back and keep us posted >> thank you, dom. still on deck, a major deal with the world's most well known hotel brands what it could signal about optimism on the rebound in travel we are back in just a moment

your doctor gives you a prescription. let's get you on some antibiotics right away. you could have it brought right to your door, with free 1-to-2 day delivery from your local cvs... or same day if you need it sooner but at a time like this, aren't you glad you can also just swing by to pick it up? and get your questions answered. because peace of mind is something you just can't get in a cardboard box. that's healthier made easier. at cvs.

i'm 53, but in my mind i'm still 35. that's why i take oste bi-flex to keep me moving the way i was made to, it nourishes and strengthens my joints for the long term. osteo bi-flex, plus vitamin d for immune support. osteo bi-flex, plus vitamin d we did it again. verizon has been named america's most reliable network by rootmetrics. and our customers rated us #1 for network quality in america according to j.d. power.

number one in reliability, 16 times in a row. most awarded for network quality, 27 times in a row. proving once again that nobody builds networks like verizon. that's why we're building 5g right, that's why there's only one best network. welcome back let's get a check of the headlines with frances rivera in new york with the latest good morning >> dom, good morning we start this morning with the tropical storm systems in the atlantic tropical storm fred is expected to hit southern florida and panhandle packing winds up to 45 miles per hour the storm could dump as much as 8 inches of rain. governor desantis declared a state of emergency already ahead of the storm to haiti

1,200 people have died after the 7.2 magnitude earthquake the team from the united states has arrived and they will join federal response teams already on the island. and tennis star naomi osaka will donate any winnings from the western & southern open to the relief efforts her father was born in haiti dom. thank you. still on deck for the show new remarks from one fed chief when he said the easy money train may begin to slow down if you haven't done so, follow our podcast if you miss "worldwide exchange" check out apple, spotify or other podcast apps we'll be rig bk.htac the personal loan from sofi helped me consolidate my credit card debt into one simple monthly payment. debt free!

thanks to sofi. ♪♪ ♪ thanks to sofi. someone once told me, that i should get used to people staring. so i did. it's okay, you can stare. when you're a two-time gold medalist, it comes with the territory.

and there you have it- woah. wireless on the most reliable network nationwide.

wow. -big deal! ...we get unlimited for just 30 bucks. sweet, i get that too and mine has 5g included. that's cool, but ours save us serious clam-aroonies. relax people, my wireless is crushing it. that's because you all have xfinity mobile with your internet. it's wireless so good, it keeps one upping itself. stocks set to face pressure for the week. and warning of an intensifying surge of the covid cases in the weeks and months ah ahead. we will talk with the head of one texas hospital as the state deals with the growing crisis. and t-mobile dealing with the data breach of tens of

millions of customer data. it is monday, august 16th. you are watching "worldwide exchange" on cnbc. welcome back i'm dominic chu in for brian sullivan here is how your money is looking as we are halfway through the 5:00 hour. losses at the opening bell dow lower by 880 points. we have a very busy week for economic data with a number of key reports out as you can see tomorrow, we get retail sales and nahb index later in the week, housing starts then jobless claims and fed releasing its minutes from the policy meeting turning to the oil markets under pressure following data from china h showing a lowdown of economic activity

u.s. benchmark crude is down 1%. $6 $67.74 we have to take a look at the cryptocurrency bitcoin on $47,113 ethereum up 2% $3,265 was the last trade. this is among the comeback of cryptocurrency with total market value climbing above the $2 trillion mark over the past weekend. let's go worldwide with julianna tatelbaum in the london newsroom with the european trade. good morning, julianna >> reporter: dom, good morning opened lower following the weekend from asia. the ftse 100 with losses down 1% the losses are fairly evenly spread that data out from china

overnight, dom, that you mentioned is weighing on sentiment. it missed expectation with growth slowing across retail and industrial and fixed asset at the same time, investors are jittery of the risk with the situation in afghanistan also the concerns of the spread of the delta variant putting it in context. stoxx 600 has rallied for ten sessions in a row. the longest run of consecutive gains of index since 2006. a strong run we are in retreat this morning h here is how we are looking this morning. red for nearly every sector. real estate trading .20% higher. on the down side, resources with losses of 2% tied to the china story. no doubt that weaker than expected china data weighing on sentiment. oil and gas is the under performer. 1.6% down alongside travel

dom, back to you. >> julianna tatelbaum in london. thank you very much. to some of the top stories t-mobile investigating a hacker is trying to sell personal data of more than 100 million customers. a hacker on the online forum claimed to sell names and social security numbers and phone and driver's license numbers as well if confirmed, the breach could affect nearly every t-mobile customer in the united states. hyatt hotels is planning to buy apple leisure group from kkr partners for $2.7 billion. apple leisure operates the secrets and breathless resorts spa chains the deal would give hyatt one of the largest u.s. providers to

mexico and dominican republic. minneapolis fed president kashkari said they would mark enough progress in the economic recovery for the fed to start tapering kashkari making the comments last week. he said it will limit the employment outcomes of the fed he believes the current pricing pressures right now are transitory later on today, don't miss boston fed president eric rosengren here on cnbc later on this afternoon at 4:30 p.m. with our colleagues on "closing bell. now to the latest on the virus pandemic with the u.s. averaging 129,000 new cases a day. that could increase. this according to the nih director dr. francis collins

warning the country may cross 200,000 cases per day. the last time the country crossed that line was january. dr. collins calling unvaccinated americans quote/unquote sitting ducks for this particular virus. the biden administration is offering covid booster shots for this fall. the first would go to nursing home residents and health care workers. the efforts come as the u.s. report 1 million covid vaccine doses on saturday. the most for a single day since early july all of this as hospitalizations continue to rise particularly in states with unvaccinated people. texas, for example, an increase of 400% over the last month and all seven emergency rooms in the houston hospital system are currently full joining to discuss this is dr. marc boom. president and ceo of methodist

houston hospital how fo thank you for being here this morning. let's talk about how stretched your hospital is due to the pandemic >> we set our all-time record yesterday. at 7:00 p.m., we measure this we hit 749 across the 2,300 bed system it shows no sign of slowing down we are preparing for continued rises and continued stretching of the men and women working so hard for the last 18 months and have done a phenomenal job it is a trying time. we are still not seeing the protections put in place in the community and actions taken to start to bend the curve back down >> doctor, what do you think in your opinion is the reason behind the hospitalizations you have what is it this is driving the surge back to the highest levels

we have seen since early this year >> it is a perfect storm of three things the first is the delta variant the delta variant is widely more infectious it spreads very quickly. couple that with low vaccination rates. in our community, we are 5% or 6% below the united states average. couple that with a time where effectively we had no mitigation activities happening in the community. we start to see that shift back. we see the spreading start to come down. we are still seeing record levels and we don't see an end in sight we will deal and smashing through previous records >> can you take us through what is different this time right now you with the delta variant this feels like the surge last summer or fall are there similarities or differences in your mind from

july or september of last year >> it is similar the rate of increase is astounding it is day after day as opposed to the winter surge which built in the foothills and started steep evening. the other thing we are seeing is this is all about the unvaccinated we get a snapshot across the greater houston region about tens days ago, 91% of patients in hospital were unvaccinated. in my hospital, we have a transplant hospital and vulnerable patients. we are 83% unvaccinated and 17% vaccinated the 17% vaccinated are older and weaker immune systems. immune hesuppression. if we all had gotten vaccinated, they would not be in the hospital we know what to do if we, today, acted like we did

last summer when we realized it is getting bad and stop today, we could break this curve in about ten days we haven't seen the mitigation activities i'm afraid we're in for a significant rise. >> a curve imply there is isan slope and down slope as well we heard evidence and statistics from the uk and israel that appear to see that curve on the down swing right now with the delta variant. is that something that will happen in the u.s. >> i'm sure eventually it will burn itself out. i don't know when. when we look at the uk experience and india experience, we should peak in the next week or so. that is just hope that it looks like theirs. hope is not a strategy we need to focus on changing behaviors and get more people vaccinated and right now, it is

really about masks and distancing it is about stopping many of the things we're doing in large group settings those are clearly spreading the virus. the virus spreads like wildfire among people not vaccinated. >> dr. marc boom, thank you very much for your thoughts good luck with the situation there. >> thank you coming up on the show, a big week for retail ahead with the number of high profile names out with quarterly results stacey is here with more on those. before we head to break, spacex moving closer to the bid for orbital and interplanetary travel elon musk said the starship could be ready for flight in

weeks. and "free guy" film taking in $28 million in the debut. not on streaming, but a theater-only release. and pebble beach and nonterey week auction sale hits $343 million the most expensive car to auction in three years "worldwide exchange" is back after this make fitness routine with pure protein. high protein. low sugar. tastes great! high protein. low sugar. so good. high protein. low sugar. mmm, birthday cake. pure protein bars and shakes. for every fitness routine.

♪ music ♪ pure protein bars and shakes. ♪ dream, dream when you're feeling blue ♪ ♪ dream, dream that's the thing to do ♪ ♪ music ♪ when you see value in all directions, you add value in all directions. accenture. let there be change.

♪ ♪ i had the nightmare again maxine. the world was out of wonka bars... relax. you just need digital workflows. they help keep everyone supplied and happy, proactively. let's workflow it. then you can stop having those nightmares. no, i would miss them too much. whatever you business is facing...

let's workflow it. servicenow. welcome back to "worldwide exc exchange." a big week for retail. earnings reporting this week is walmart and lowe's and kohl's. we will have a check on retail sales figures tomorrow this comes as students prepare to head back to school and parents stock up on school supplies let's bring from stacey widlitz. st stacey, is the delta variant and supply chain effect the back to school season? >> dom, i have been out in stores i will tell you there are s

shortages of just about everything particularly toys and footwear before we get to back to school, we are already seeing problems on the shelves that is the biggest challenge right now. also, you know, talking to stores with the delta variant headlines, you are not really seeing a huge slowdown in traffic quite yet. most of the stores are seeing the american consumer resilient and certainly we learned that. i think there will be some volatility as people are getting somewhat fearful of being back in stores and there is controversy in the stores. mask up? don't mask up? back to school is off to a decent start we haven't had one in two years. look for volatility. >> this is an interesting point, stacey if you look at the balance sheet of the american consumer, overall, the numbers show things

have gotten better we thought there was going to be a massive drop off in spending as government stimulus checks started to go away we have not seen that yet. there could be more help on the way in the future at some point. what does all this mean? does it mean retailers will have a good fall and holiday shopping season >> i think retailers and brands will have one of the best back-to-school seasons we have seen in more than a decade if you think of the pent-up demand and shopper that led us back into the stores, they he h haven't been to school to express themselves ae and abercrombie and fitch that is elevated which is something we have seen over the last nine months you will see profitability, but

perhaps because of the supply pressure and cost of shipping, which you talked about, watch out for out of stock >> that's a good point there's a balance here, right? if you have a lot of inventory, you have more stuff to sell. there may be a question of pricing. at the same time f, if you don't have product, there is not enough to sell which one is positioned to do well this season >> well, i think if you look at who is reporting this week, we have target and target's comps have been leading retail not only online, but in-store comps. mid-to-high single digits. they are facing the tough two years compares they have what the consumer wants. private label.

kids toys you name it. in stock is better than the competition. walmart as well. i think any of the big names are once again going to continue to lead us. they have the strength to actually get product from the supply chain the other thing is look at dtc brands rather than wholesale nike rather than foot lookclockr if we have short supply, they he w will keep the supply >> stacey, thank you a very busy week for you thank you. on deck for the show, truist advisories lays out the week ahead and pulling back the curtain on young investors what is fueling their tendency for risky trading habits.

if you haven't checked us rit, check us out on your favote podcasts apps "worldwide exchange" will be right back do plastic bottles turn into this? wm and repreve have given new life to over 20 billion plastic bottles. and we're just getting started. see how recycling is one of the many ways wm is always working for a sustainable tomorrow at wm.com/stories. (vo) introducing 48 square centimeters of earning potential. flawlessly designed. undeniably versatile. unlimited 2% cash back. this is the card built for... ...real life. (dad) she's gonna be a drummer. (cashier) yeah she is. that's gonna get loud. (dad) right?

(vo) the new wells fargo active cash visa credit card. unlimited 2% cash back on purchases. that's real life ready. at cdw, we get whether you're at home, in the office or on the go, staying connected and secure is what keeps you productive. and no matter where you're working, our experts can help you implement a secure by design hp chrome enterprise solution. you'll benefit from built-in virus protection and advanced security management to help secure your device and your data while keeping you in close contact with all of your coworkers. ♪♪ if you're 55 and up, t- mobile has plans built just for you. with all of your coworkers. 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. welcome back a recent study on young inn vefrters shedding their light on investing. the penchant for them to take bigger gambles we have kristina partsinevelos with more on those findings. >> reporter: good morning. a new era of meme investing is upon us. online world encouraging each other to hold investment it is public nature which is why young erier investors are willit take on the risk

reddit investors are getting advice online like you tube. robinhood and twitter were not the focus of the survey. the survey of 18 to 24 year olds were more risk financial decisions when watched by others. encouraging each other to stay long and behavior could stem from the interaction of community and capital. >> it is not really so much about earning profit as much as showing your fellow community members this is what i got i'll keep holding on for you and the rest of the community. you saw that with gamestop >> reporter: social media and social interaction are a big

part of why robinhood and reddit is popular bets sky rocketed to 10.7 million people the propensity to gamble grows when everyone sees your stock picks, there is an upside. rise in retail investment participation and more are getting in the game. especially since the pandemic. >> kristina, this is no surprise you walk into a casino if you see a lot of activity and action at that black jack table or hot craps table, people are drawn toward it. what do we see around the other parts of the issue we know that action brings more action >> reporter: dom, yes. action brings more action. the big part of the study and what we noticed is the sense of community. a lot of the investors are holding on to stocks longer than

they should or selling early because they're encouraging each other to do so that is the slight difference between the twitter world. fintwits versus the casino the other change is the smart phones another survey or study that looked at german banks and investments. people who use the smartphone are likely to take risky investments. a lot of triggers we have to be aware of and on your phone, where it is too simple, it may not be a good thing sdp. >> ease of use kristina partsinevelos thank you very much. we will use that and stick with the markets. futures are indicating a lower open dow lower by 74 points a big week for investors as we turn back to the federal reserve and the next policy steps.

let's bring in keith lerner at truist advisory. keith, we come off record closes for the s&p and dow. is this a market that you feel is still constructive enough for people to remain investing in? >> first of all, great to be with you, dom. the answer is yes. we typically look at the next 12 months and we look at that and we have an economy that is only about a year into the expansion. the average expansion is five years. the bull market is very much in tact supported by great earning trends as a whole. we are in a transition this is the second year of the bull market. so far, volatility has been low. you see higher volatility as you move to the second year of the bull market. overall, if you have an economy that is sound and earnings that are solid and you still have a favorable monetary policy, even

incrementally less so, that is still a good environment reality is we are not moving 100% up like the last 18 months. >> since the pandemic lows, the s&p doubled in value it can't go on forever we get that. there hasn't been a pull back. we always talk about federal reserve and interest rate policy is the thing that ends the bull runs throughout the course of history. do you expect that the pressure is now on the fed to do something where policy can be normalized, but ynot derail the market >> typically the fed changes just like a peak in growth intends to inject volatility right now, we think the economy is on solid footing. look at the consumer still excess savings debt-to-certify service ratio.

and businesses are actually on firm footing and right now, inventory is low. that is a boring topic again, we think things are on solid footing. you should expect by definition a moderation in the move up side a lot of the action in the market is below the surface. that's where we find the opportunities. in the cyclical areas especially >> i don't think it is boring at all. that is what investors are trying to figure out right now, keith. where is the opportunity is it going to be the value pandemic plays we have seen in the last year take us higher airlines, hotels return to big technology companies and communication services where is the leadership?

>> the first thing is it is a balance outlook relative to last year we still lean more on the value side if you think about it, we have seen the back and forth stealth rotation within the market technology out performed 18% to 19%. we think that is unlikely to continue after liquidation and give up, the move to value has sustainability we like the financial area as yields slowly rebound, that should help out. dom, an interesting stat right now is growth areas trading at 30 multiple. the value area is 16 it is relatively cheap i think people are too concerned about the peak growth phenomena. that should continue to support more of the value side of the market >> value is leadership

keith lerner thank you very much. we appreciate it that does it for us on "worldwide exchange. futures indicating a lower on.pe dow lower by 80 points "squawk box" picks up the market coverage next. millions of vulnerable americans struggle to get reliable transportation to their medical appointments. that's why i started medhaul. citi launched the impact fund to invest in both women and entrepreneurs of color like me, so i can realize my vision and give everything i've got to my company, and my community. i got you. for the love of people. for the love of community. for the love of progress. citi. 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.

good morning developing over the weekend. afghanistan's government collapsed. the taliban seizing control of the country. the evacuation of diplomats under way. new questions rising about the fallout of the biden administration agenda. planning the biggest expansion of the food stamp program. details straight ahead it is a big week for retail. government data and reports from the retailers due.

it is monday, august 16th, 2021. "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc i'm becky quick and we have joined by stephanie link i'm thrilled to be here. good to see you. let's see what is happening with the equity futures on friday, you saw the dow and s&p 500 close at new highs nasdaq within 1% of the all-time high if you check it out, there is a big back dow futures off by 82 points nasdaq down by 27. s&p indicated down by close to 10 points. we have some bak