treasuries, the ten-year was sitting at 1.27% last time we checked at it. i think that's where it is right now too. stephanie, kelly, i want to thank you guys both for being here today this is like charlie's angels. >> thanks for having us. >> thank you so much that does it for us today, make sure you join us tomorrow, right now it's time for "squawk on the street." ♪ >> i guess that makes us bozly good monday morning, welcome to "squawk on the street. i'm carl quintanilla with jim cramer at the new york stock exchange, david faber has the morning off. futures are under the gun to start the week after the tramgic developments out of afghanistan. our road map is going to begin with the taper time line shifting policy views have potentially opened the door for the fed to announce it will begin tapering as early as september. the u.s. opens a safe tri

probe into the autopilot probe and cripypto surging, topping a $2 trillion market cap for the first time in three months we just listed some of the worries that we wake up to on a monday we're going to get a lot of retail earnings this week. maybe they give us a better sense to at least how the consumer is digesting all of this i think that's absolutely true a lot of the price increases that frank holland discussed are jarring. i think the response is everybody got money from the government there's no resistance of it. these are deguys who know to cut and promote if they feel like they need to discount things and they obviously don't think there's any need to discount what we're going to hear is i think some really great numbers from companies that are selling things full priced that we would be surprised about but maybe they also comment that back to school is tricky given the fact that the -- when you listen to dr. gottlieb, it's very true that under 12 very difficult to figure out how they're going to go to school.

>> right we're going to hear a piece of what the doctor said on "squawk" a few moments ago. airbnb, southwest, the numbers on friday, which were out on friday, fifth biggest collapse in a month in the history of the series >> look, i listened to that airbnb call, and it was really interesting to hear because it's all good about the past. and then it's just completely open about the future. now, doordash, which also went down was very good about the future given the fact that there might be a lockdown. so i came back and said, you know what? like stephanie link, why don't you give me something that has a price earnings multiple i don't have to worry about. these stocks are new they're unseasoned, and when i hear that there may be troubles with doordash drivers, when i hear that airbnb people are reluctant to go, i say well these companies aren't priced like that. they're just not

so i am call me uncertain about the new companies. today when i look at the research, ryan specialty, wheels up, cs disco i mean, cs disco, i don't know, burn baby burn, disco inferno, it's a legal solutions company caltura, i thought that was a jeans company. pay core suddenly i get to cisco. >> a name we know. >> and i say thank heavens, august 18, chuck robins, totally realistic. sonos, but honestly pay corps, is it a junior workday i've actually done research into these, it's not like -- >> yeah. >> we're now in that era where all these companies that rang the bell are now getting research coverage. it is very hard for someone trying to be good to figure out whether you buy. >> you made this point before,

that the street only has a certain bandwidth and we've had so many companies come to market honest company gets research today as well. how good is the home rwork >> i know. i look at first advantage, city life's at 25, goes to 28 i want 25 to 50. i'm not going to do $3 for some company that just started, even though it sounds like a good company. this taper discussion, jim, is it adding anything new is this something we already have baked in, september announcement, maybe december, rolling off purchases by the middle of next year, et cetera. >> yeah, i think that i have a mortgage company on this week, and they're convinced, like everybody knows and everybody's trying to get a mortgage ahead of time, but they're the only people i actually are focused on, other than traders will there be algorithmic traders that sell things on a taper? i think it's going to be a taper yawn a taper weeper. >> yeah.

>> it's just not a tantrum a tantrum to me implies sell stocks i think people are very reluctant to get rid of their stocks given the fact that it's been impossible to get back in once you go. i was -- my travel trust, i went back in to paypal. i said, ooh, there's a chance finally. to get in, you want to get into things because you just see them go up and up and it's driving people crazy. >> there's a mees in bloomberg over the weekend, now up nearly 200 days without a 5% pullback 48 all-time highs so far this year you take out 1964, jim, that's the most we've had at this point in a year in 100 years >> it's extraordinary. but there is a lot of money that was sent by government to people i watched, like everybody else, people climbing, terrible c-130s and i remember, i went back and

looked, thank you to bing west about what happened in vietnam the u.s. air force flew 201 c-140s, evacuated 45,000 vietnamese to guam, 7,500 people to thailand. 71 u.s. helicopters, they took out 50,000 people. 50,000 people. it was -- secretary schlesinger was a brilliant man. took out 2,000 afghans so i figure you're taiwan and you're looking -- just a second, chinese obviously cheering the taliban. maybe we ought to rethink who we send chips to. the market doesn't even care i was watching the futures do the futures not just know what happened in afghanistan >> i think a lot of people were looking for a broader decline than we're seeing so far at least this morning >> it's early. >> it is early and speaking of the line between afghanistan and the markets, let's get to our own dan murphy this morning for the latest, at

least out of kabul dan, good morning. >> hi there, curious to get your take on whether or not you think this is impacting equity futures right now. i wanted to begin with the late rest from kabul airport, which has really become the epicenter of this story. take a look at the latest vision that we're getting from kabul airport where we see scenes of complete chaos and desperation earlier today afghans clamoring around a moving u.s. air force plane. you can see some of them clinging in desperation to the side of that aircraft. that aircraft is underway. the engines are running. you can also see others trying to keep up running alongside essentially attempting to leave afghanistan, which is now well and truly under taliban control. of course we have seen also reports of shots being fired at the airport earlier on today and at the same time reuters reporting that five people were killed in the chaos at the airport. however, nbc news has not been

able to independently verify that reporting of course president joe biden is going to have to politically explain these visuals. he's not doing a lot of talking at the motment this comes after we saw extraordinary pitches emerging in the past 24 hours of taliban fighters making their way inside the afghan presidential palace, essentially cementing taliban control over the capital kabul, and ultimately taliban control over afghanistan near two decades after the original american entry into that country, so the situation on the ground still very fluid as it stands on the other side of the airport as well, what we know is that the united states has been attempting to remove its own american diplomats from the country. most have been able to leave safely, we understand, but that evacuation effort is still very much underway. what we're also looking out for

now is any commentary from an emergency session of the united nations security council which is getting underway in an hour's time we're looking out to see how world leaders are reacting to this we've seen condemnation from the majority of countries who are ultimately quite concerned about what an afghanistan under taliban control is going to mean for, number one, security in the region this part of the world that i'm in right now, the middle east, and of course security globally, and are we going to see perhaps afghanistan again becoming a hot bed for terrorism into the future, guys a lot to unpack there. back over to you. >> certainly a lot of our policymakers here are having to revisit their earlier expectations about that very dynamic. dan murphy, thank you. jim, the pictures are so disheartening all weekend long, and yet we know this is a market that at least in the last couple of years doesn't respond to geopolitical risks. >> think about 1964 versus 1975 where the market was just in

this morass, there were many reasons why. no market is bullet proof. we may discover midday the semis may go down because they're worried about taiwan people have a hard time relating any of it to any of it oil's been down for several days now. oil doesn't look so good it doesn't mention the fact that venezuela has reached a compromise where they are going to be rewelcomed as a nation that used to produce 4 billion barrels a day. what happens, people yawn. they just keep yawning i don't know how long you can yawn before you say wait a second, there's just a will the -- lot of things going wrong. the at the same time the money is -- i see a company buy a hotel, and i'm thinking wow, some people longer term are very bullish. you will not be bullish.

you'll say, wow, because i thought airbnb was the way to travel, you felt that that was the safest now it just seems like i've got to hear more from southwest. right now, i don't feel confident. >> indeed. and speaking of all of that, we are going to keep our eyes on travel stocks today, talk about the delta variant. this is what dr. gottlieb had to say this morning about the whole dynamic, and including children in hospitals take a listen. >> about 1% of kids who get diagnosed with covid get hospitalized, about a third of them get admitted to the intensive care unit. we don't have a lot of pediatric beds in this rcountry. we could find ourselves in the situation where we start to get pressed for capacity, especially if a lot of kids remain vulnerable and you start seeing outbreaks in the school setting. the reality right now is we don't know how many kids have been infected. >> so the percentage of u.s. hospital beds that are covid related, about 10% right now

it was about 2% in june. on the other hand, did a million vaccinations yesterday >> yes >> that's double that from june. >> untold stories. you'll get a provincetown breakout, and everyone says holy cow, you get everyone together no good. seven hospitalizations, no deaths the people that are anti-vaxx are going to get sick at a much more serious if you knew you could have the sickness be less intense, why would you not go for that vaccine, but that's still proven to be a very difficult sell for some i was very heartened by more i'll get a lot of heat i think as a nation it's great we don't want those hospitalizations dr. gottlieb has been true north the whole way, so has dr. eric tople by the way i think it's weird because like they're following his tweets, be but he's gospel. they show you charts the charts are rather

magnificent if you have the vaccine and horrendous if you don't. why be part of the horrendous. why? i struggle about someone who's choosing to be really sick, versus someone who's not the idea is to live. that's like the goal. >> yep >> keep you safe i did see a mercer study about 14% now of u.s. employers that they surveyed say they will or already have instituted vaccine mandates for their workers. >> right >> we'll hear more in the days to come. >> the president never did really interesting he never did >> i'm not sure they felt like they had a federal standing right? >> i know, but, well, save more lives. less people sick to me it's like positive, i don't know maybe i'm an outlier about the positive notion. >> when we come bag, we are going to take a closer look into that investigation into tesla announce add while ago busy week setting up between the retail earnings, fomc minutes, we are going to hear from powell at some point. don't forget nvidia and cisco.

more "squawk on the street" from the nyc straight ahead ♪♪ ♪♪

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the u.s. government opening a formal investigation into tesla's autopilot system >> hey, carl thr, this is what t of people have been calling for for some time. shares of tesla are under a little bit of pressure after the national highway traffic safety administration announced it will be opening a formal investigation looking into

tesla's autopilot technology what will nhtsa be looking at? specifically it will be looking at 11 crashes where tesla vehicles were in autopilot mode and they crashed into emergency vehicles those crashes led to 17 injuries, one fatality this will involve the models, s, x, y, and 3. basically everything tesla has made from 2014 through 2021, altogether nhtsa has reports of 31 incidents involving autopilot technology that includes these 11, and there have been others as well but for this investigation, it will only wbe focused on the 11 crashes. those go back to 2018, those crashes. as you once again take a look at tesla over the last five years, as this stock has moved higher, elon musk has repeatedly defended autopilot, even as critics have said, look, there are not enough safeguards in here it's camera based only

it doesn't use lidar technology. it allows drivers to think the car is completely self-driving it is not. elon musk has at times said it's not completely self-driving. at the same time, he has also sold the perception, if you will, that autopilot is essentially the way for you to get in your car and your car is going to take you from point a to point b, though, again, when pressed on analyst calls and at other times, jim, he has said, sure, it's not 100% self-driving we'll see what happens here with the nhtsa investigation. just a reminder, jim, the way this works, nhtsa investigates if they find there's a flaw with the technology, they go to an automaker and they say, you should recall this technology or come up with a solution. if the automaker says, no, we're not going to do that, then nhtsa goes to court to force a recall. but we're a long ways from that happening. we still need to see exactly what happens with this formal investigation. >> phil, i think that's a great report, but it made me think are

those really bad numbers i mean over a long period of time, i think it's very few. and then i question let's say drunk driver versus sober driver, how many people would a drunk driver have killed so i don't know, i mean, i think it sounds like a pretty good -- anybody gets -- crash is all bad, but that's a very few number, isn't it, phil >> it depends on how you look at it, jim. some people would look at this and say there are 31 incidents, 11 crashes in this investigation. 31 altogether that nhtsa has acknowledged so the question becomes are those the only ones that we know about? and the other question becomes is the technology being marketed and sold to the public in a fashion that makes them think their vehicle is completely self-driving because it's not it is not self-driving technology, and so that's the question, carl, and ultimately, we'll see if anything comes of this by the way, we have yet to hear from elon musk remember, they disbanded their media relations department and a

few reporters have already tweeted at yelon, saying do you have anything to say about this investigation? >> he sometimes does make material comments on twitter, phil we'll keep our eyes peeled for that thank you. maneyou got that going on, and ford are fighting about the terminology of the word cruise autonomy is moving along in different kinds of ways. >> we still haven't heard from the big guns, somebody like a waymo from alphabet, what are they doing intel, mobile eye, watch that one. pat gelsinger, i think, has inherited a very good business, and it's going to e, i think, may be the leader in self-driving so i'm not giving up on self-driving because i think that if we had hrobots that drov rather than humans when henry ford started mass producing, we have far fewer deaths, but i also recognize that any death is

too many >> yeah, we're going to watch it after the nhtsa headlines did cross about an hour ago. we're going to get cramer's mad dash and count down to the opening bell in a moment futures continue to look weak here on the first day of a busy five sessions. 'rba ia mewee ckn mont and one we explore one that's been paved and one that's forever wild but freedom means you don't have to choose just one adventure ♪ ♪ you get both. introducing the all-new 3-row jeep grand cherokee l jeep. there's only one.

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. let's get to cramer's mad c dash. >> i read the whole report, and it makes me want to buy the stock really badly first of all, they raised their price target second, they're going to exceed numbers. third, they got a path to $3 million average, which is incredible that is so much better than anybody else, and then they

said, well, look, it's run a lot. it has run a lot this is the kind of thing, they go from strong buy to outperform this is what analysts struggle with, stocks have moved up so much, what do they do? and i actually think this is a prudent piece, but at the same time, will it come down? no i mean, this stock is up i've been using a $2,000 price target, one of my absolute favorites. at the same time, i don't think this is bad research because the guy's had a home run why not take it down i mean, all you can do is go wrong at this point. >> right their point is this move may not look like much, that's a 37% move in six weeks. >> right, and there's not much left. >> right >> again, i think it's pretty interesting because what they're saying is, look, we don't recommend -- we don't push stocks when there's only a little bit left, 7.5%, and that's true. i mean, so i applaud this research because you caught this move, and if you caught this move hallelujah i like the stock long-term, but short-term for traders, good

piece. >> not getting dinged up five bucks. we will get the opening bell i oufive minutes don't go anywhere.

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sonos is up in the premarket after an international trade judge ruled that alphabet had infringed on patents coming on the heels of that surprise profit last week, jim. >> sonos is one of those companies that i think people spend more time in their house, bingo, they get sonos. if you take a look at best buy, that's doing quite well too. this patent portfolio that i didn't really know existed is so important, this itc ruling, there's apparently sonos many patents. to me it didn't seem like it had as much intellectual property as i realized those of us who love sonos figured it's a connected speaker system but no >> the jeffries note, they up to hold with a 50 target, but the

hold is reflecting valuation levels at this particular level? >> this is one of those things there's real momentum in this company. people are looking to play the next level delta too i know there are a lot of people who say, give me something if people go back home, not lockdown but just stay more at home not return to the office. this is the one people coming back to. >> as opposed to a zoom or peloton or the classic lockdown pass. >> overplayed. >> yeah. >> i saw the other weekend, the guy's -- they continue to do well with their ecosystem, but i just think when you look at william sonoma, which i like very much, people are talking about, wait a second, are there going to be problems, restoration harbor, now rh, the very positive note by callen about it my problem with all of these is can we get the stuff out of

china. can we get it out of china and i don't know i mean, that's our biggest worry these days. >> i mean, it's also because of the etsy quarter and roku quarter, like it's whiplash. they're talking about people going out more, right? >> yeah, i mean, i don't know if it's an in play, you want to go out. the issue here is that we were able to go to the stores, maybe we won't go to the stores. i went to mcdonald's this weekend, and i went in, no mask. it was terrific. boy, i love their coffee i got their coffee, and i said wow, it's all changed. i said wait a second, what am i doing here maybe i should have a mask. >> you have me wearing the n95s again just to be safe. just a layer of productection. it is air span celebrating its listing via spac and an auto service provider we're watching as well yields, jim, back to 2 1/4 this

morning. we're going to watch that. interesting that really the ten-year did come off some technical levels last week. >> right, right. and i never want -- most of the people who watch our show, market, i never want to say hey, look, it's rational that the market's down, but we did lose afghanistan over the weekend now, i know we were supposed to lose it, but i didn't know we'd lose it over the weekend the fact that that would have no impact on the market is ridiculous we have allies the allies saw that. don't we think that some allies take a stand and say, you know what this is what happened with vietnam. maybe we won't be protected. look, it's entirely possible that what happens in afghanistan stays in afghanistan but it's not vegas. >> but also wasn't unexpected. >> truly. >> it was delayed. >> truly it seemed to be only the military didn't realize it was -- or the dip on that -- and that horrendous flight reminds

me of saigon i think that i'm just worried about look, you have to look at anyone who is trying to figure between us and china because there's china immediately saying we're going to build roads that's incredible. how is that possible that they're going to have any more luck than the united states and russia >> it is called the graveyard of empires. >> always. i read that. >> yes, you're suggesting maybe china says we want to take a crack at this? good luck. >> another failed venture. i think that the idea that the chinese who have not necessarily been all that great to muslims suddenly found a country that they like. it seems pretty fanciful, but the american -- like the press has given biden i think a pretty, you know, pretty positive note on it. trump wanted out biden wanted out everybody wanted out so when it happened, why was it a shock to people? or did they think that it would take weeks instead of the

weekend? it was kind of amazing, and then i figured, you know what, the market is going to be down initially and then people are going to come in and start buying tech because maybe they think that the economy's going to slow. they want old tech it is beleaguering to see which are they going to buy. >> maybe sea gate gets -- to your point about amd's getting a little busier. >> well, i mean, look, i do look at things that are drug stocks coming back. it's just really hard to ifind when you see costco up so big, right, you start saying to yourself, you know what, people want to buy american retail. you know, costco's not report for a while, but at the heart of what people want to buy and i'm struggling with the idea there's got to be something worth

selling. something should be sold we have so many new companies coming ryan specialty insurance, that's one of the worst businesses in the world being a broker for specialty insurance. no, a lot of buys. time to buy ryan when you look at a company like zoom, okay, zoom's a good example. zoom has changed rather radically, much better company, i'm just saying look at the company. that's a high multiple stock that's high multiple people went low multiple i bet you cisco is one let me just check. cisco is like kind of bullet proof, down $0.22, i'd buy that. 2.6 yield. >> jpm does reiterate an overweight on cisco. >> basically it's like, hey, this is okay this one's all right i mean, like i read that, and it's like, hey, you know, that's 9 and 18 because we've got 17 games. you want to be 9 and 8 that could be in the right division that's a good stock. >> of the retailers and you mentioned some of them, we're

going to get walmart, target, lowes, elhd, tjx and ross. >> what a week. >> do you foresee land mines do you see a conference call coming along like the ceo's -- >> i think those guys are all at what matt boss put out today people are constructive. everybody's constructive they can be constructive because listen, in another seven weeks everybody who doesn't have this virus is going to get it unless they get vaccinated. the thing spreads. i don't think people realize, it's like chickenpox when i went to school, went to school and got chickenpox. >> sure. >> can't eat without a mask. that's the big problem got to eat, got to take the mask off. >> yep >> if you could eat with the mask we'd be safe. it's just that i haven't figured that out yet >> i have seen some pictures of musicians in bands where they do

cut a small hole and the tr trumpeter can prlay that way. >> when you want to eat a taco it's really good to have your mouth open there's a profound statement. >> no, no, it is a -- look, that's why we're getting vaccine mandates for restaurants in new york and san francisco and new orleans. i'm not sure how you're handling the policy i think it begins today. >> it begins today, and i don't know, worn out by it, don't know what to do just kind of feel like what's everyone else doing. what's everyone else doing it is amazing. i'll tell you, the one vaccine that i'm really worried about is the stock that's been the best change it just doesn't go down, and the one that i think is really people should focus on is regeneron. regeneron has -- regeneron's finally moving up. regeneron has the drip that makes it so that if you do get it and it's serious, it's regeneron. they're shipping 50,000 of these, i don't know how many of these they can make.

that's the stock. >> not the vaccine makers. >> i think they're okay. they've had such a run, moderna. i happen to love moderna as a company. pfizer's still not expensive when you look at pfizer versus say lily on the strength of maybe something for alzheimer's, you realize that these are inflated, and yet, regeneron, it's not an expensive stock, which is rather incredible >> right >> regeneron's a great company they've got so many things going for it, not justmont cloeal antibodies they've got a fantastic anticholesterol, but regeneron is the monoclonal antibody that's what making a lot of people live that would have died. >> that's been a priority for desantis in florida, making some comments about the importance of that cocktail. >> you know, i just have to say

that testing, daily testing of kids before they go to school. i've been telling people buy abbott i took binax twice this weekend. >> good luck getting a pcr test right now, at least in the new york city area they're out. right? it's all antigen tests the supply is getting cramped. >> hologic has a good one. those are the three. i have great faith in the binax. we're sitting around having breakfast, what are you doing? i'm taking binax hey, i'm having a cup of coffee. what are you doing carl, things have changed. hey, what do you got there pass the binax we went and bought every binax at rite aid. we want to test every day. once kids start going to school, they could be carriers you come home, instead of having

a g and t, you have a binax. >> it's like a different era madmen >> hey >> t-mobile says it's investigating claims in an online forum of a data breach that would involve the personal data of over 100 million users interesting. that's about all we have on it at the moment. >> yeah, i was surprised that that comes out there's a lot of companies let's say that came out from remember the days, i don't want to mention it that has come out before and for other companies. it's really crushed their stocks mike sievert should give us a call just say listen, don't worry about it or let me tell you what we're trying to do mike siebert watches the show. it would be conducive to what that company has historically done, which is be very forward, very open. let's hope he continues and says here's the deal.

wish that hadn't happened. rather than maybe, maybe not >> we did have that report over the weekend that pat gelsinger of intel met with the white house last month, i believe. and pushing for a multibillion dollars chip investment in this country. >> well, we definitely need it i think that one of the reasons why they do it away is because it's just much cheaper to make chips. we do need to have a safe place for all the equipment from kla, you know, we need it from lam. i know that pat is very spot on and we've got tremendous momentum there, but i think the problem is you're talking about multiyear. it takes a long time to get these things done. >> do have micron is a little higher of course had a couple of downgrades last week, which we talked a lot about it. western digital. oil is probably one of the worst performers this morning. you got crude back to 66

i still think back to your call where it was in the mid-70s, yeah >> blind squirrel finds nut. >> but i would say that the main thing with oil trades with china, it doesn't trade with the united states. remember, i had pioneer on last week they're doing quite well i had devin. they're doing well, but why are they doing well? because they're spending within their means and then returning a lot of capital and variable dividends. not pumping a huge amount but being conservative it's not the united states that's driving this down we're being much more conservative we're taking barrels out i want to know more about this venezuela story. if venezuela has any sort of peace, everybody wants to be back there the problem is the inflation was terrible if they lick the hyper inflation, people go back there. bhp sold, they're worried about esg. instead of worrying about esg, fix it be like these oil companies that are saying we're going to cut

down methane, we're going to get rid of greenhouse gases. the market is getting hit. i think that makes sense i think it makes sense to re-evaluate on a day like today what happened in afghanistan, and the implications i don't think you can just sit there blindly and say, you know what, that does not matter it matters to people in the sense of, wow, i've been pretty big in this market, and china seems to really be on the rise again even though they can't even make this stuff because they've got delta sweeping through their country. >> sure. >> delta, i think, is something that is going to slow our country down that's why the taperstory, wha i don't want is taper at the same time that we start getting all air and b. you go read the airbnb, and you say what am i tapering for i've got a guy who runs one of the largest greatest hotel companies in the world, pseudo hotel, and i'm tapering? he knows more than i do. that's how i feel.

he's done a better read. >> your point about china certainly is correct, industrial production was not just a miss, it was the weakest since august of last year retail sales 8, 5 instead of 10, 5. >> those are weak numbers. port was closed this weekend, and the chinese are not going to say, you know, our vaccine doesn't work that well i think they go to pfizer's partner, biontech and say, listen, we need -- you got to give us a billion vaccines now, there have been 4 billion vaccines that have been produced of course you need two, but it's pretty impressive, but i do think that the chinese kind of need unfortunately a doover in their vaccine, and shxi's not going to come and ask pfizer >> that's not going to happen. >> we did mention crypto at the top. market cap back to 2 trillion. the journal with an interesting piece about small investors driving this particular rally. >> this is an amazing rally, and to disclose, i own ethereum, i

checked it this morning with my ceo, and i said, oh, my god. i bought this as a currency because everyone tells me ethereum's going to be the currency if you go read the coinbase conference call, it's very clear that there are so many institutions that want to take this, visa leading the charge. see what it's like to go buy some, buy something with it and all i can tell you is this thing just soared over the weekend i think there are a lot of people who are saying this is let's say when it goes up, the stock market goes down how about that >> yeah. >> let's put it like that. >> and implications for coinbase, of course, which gets reiterated over atlantic today overweight, and microstrategy, yes. >> i thought the coinbase had a very good quarter only because they're the best show of a kind of bedrag led group. if you read the conference call, i think it's a conference call

about crypto, and why crypto is about accepting and you've got to understand if it's accepting, then you should buy coinbase you don't need to buy the actual currencies meanwhile, treasuries keep, you know. >> yes. >> that's typical of people who think that the economy's got to slow down. then you get a stock like apple and you say, okay. 12 5g these stocks that are just like -- they don't dance to the music. like hey, you know, things are down, go buy apple it's a great market when it says things are down, let's go buy shopify. i need some shopify right now. but can you let them come down people who are buying, could you just wait a little you might get a better price that could be terrific >> no dip too shallow, jim that's been the lesson lately. no dip too shallow. >> isn't that amazing? i talk to people about the market it's never like i'm thinking about selling. this was a bartender this

weekend, he saw me, he goes thanks for ford. >> good, thank you. >> you're welcome. >> but to jim's point, we're down about 250 and back to 4447. let's get to bob pisani. >> modest monday this year considering we were at new highs. the big problem over the weekend is the covid variant is boxing in the reflation trade, the materials, the industrials, all the travel sectors you see energy stocks, material stocks, industrial stocks k bank stocks weak. tech is holding up because moderate growth will do okay in this environment consumer staples are also holding up that's the defensive trade if you look at what we call the broad swath of cyclicals, some of them are also value stocks today. you can see the material stocks. freeport and nucor the travel stocks like carnival. consumer slcyclicals like unite, and whirlpool. a lot of questions for traders

this week, among them of course what's going on at the federal reserve. you heard steve liesman talking about the potential for an earlier taper, maybe october or november rather than january the delta variant, i said before boxed in market. that's the problem right now, and of course we haven't talked about biden, but there's a lot of discussion about what, if any damage to his political capital has happened as a result of afghanistan. that includes on the infrastructure negotiations. why are we at new highs? i'll tell you it's very simple because we have incredible earnings that just keep going on let me jugs show you the second quarter 2019 versus 2021 i want to point out some of the things, the retailers and what's going on here. the retailers are flush with cash right now the retail earnings situation is going to be fantastic because the consumer, as i mentioned, is flushed with cash. most of the retailers are passing on higher costs. demand is high and supply is low, and we've got very little on sale out there. so the important thing is we're going to get retail earnings this week and the consumer has never looked better than they look right now

if you look at some of the big names that are out there and what's going on, there's a lot of discussions about that. the delta variant is really the wild card here the key test is back to school if you look at some of the big numbers here, apparel makers, they've held on very well, names like urban outfitters, under armour, gap, capri holdings all doing well the big issue is everybody going to go back to school is everybody going to go back to the weddings is everybody going to refresh their wardrobe for back to work? these stocks have been acting like they have, again, that's a big wild card. the department store, same situation, these stocks, the macy's and the kohl's of the world, they all ran up in the earlier part of the year most of them had been sideways since then under the theory that we're going to have a significant reopening. i think the problem, again, we don't know to what extent it's going to be reopened i want to go back to that point about the s&p earnings carl, s&p earnings are up 30% compared to the second quarter of 2019.

the revenues are up 8% so this is amazing you have a modest increase in revenues in the last two years, use 2019, and a huge increase in earnings, and carl, that is operating leverage modest increase in revenues because you have massive cost cutting. the bottom line blows up 8% increase in revenues, 30% increase in earnings, and people, of course, are still noticing that margins at 13% for the s&p 500, that remains at a record that is why we're hitting these new 52-week highs. >> not to mention the record cash for global companies being written about today. we'll see how treasuries are faring here. we did mention the ten-year yield getting back to 1 1/4. dow is down 260. might sound like a lot, but it's actually the worst day so far for the dow in about 12 days we're back in a moment

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to jim and "stop trading." >> this market, one of the things about this market, it's unbelievable, upstart, artificial lending up 395% this week good quarter really good. quickly goes up 70 points. don't lose heart there are some real firecrackers out there and this is an amazing lending company. just keep looking. keep looking and don't necessarily get caught up that they are all bad that just started. >> this is a very good company don't be discouraged the markets should go down things happened this week that -- >> bad news this weekend a lot of bad news. >> yes. >> you will have roadblocks tonight. what's on "mad"? >> roadblocks have been interesting. very split if students come home, wow, okay, we have suntory, a very

good love, and app lovin it's just on fire. another company that helps gamers, helps everybody. it's, like, it helps everything. you know the way that market working, if you can be a platform for developers, roadblocks, too, people love you. it is very hard to keep track of all the companies that come public we need to get the wheels up. >> that's right. >> somebody recommended -- >> we were talking to blade on a "tech check." >> he asked, i said, i don't know where do you do? all right. maybe, i don't know. >> see you tonight "mad money" 6:00 p.m. eastern time "squawk on the street" is back in a minute. dow's down 271 here.

♪ good mornnday morning. >> i'm carl quintanilla with leslie picker live at post 9 at the new york stock exchange. david faber and morgan brennan have the morning off the market off to a rough start on this monday dow's down 267 after a weekend of disheartening news out of afghanistan, haiti, more covid

worries and misses on china eco data. >> we are 30 minutes into the trading session. the three big movers we are watching today sonos moving higher after an international trade commission judge ruled google had infringed on some patents. bitcoin surging past 45k more on that market later this hour finally, tencent music shares under pressure as china's crackdown continues. the company scrapping its planned $5 billion hong kong ipo as chinese regulators continue to speak out against big tech names. always seems to come around the ipos, carl. >> this morning our senior economics reporter steve liesman has more for us. good morning. >> good morning. the federal reserve's open market committee looks to be coalescing around a plan to announce it will taper its asset purchase in september and begin red reducing them a month or so after. interviews with officials and

their public comments show growing support for a faster taper time than the market expected a month ago that follows strong jobs data the past couple of months along with higher inflation really leading to that producer price index. new potential timeline or taper time could look like this. a taper announcement in september. last month market consensus had been centered around november or even december. the taper beginning in october or november again that actual market consensus had been a couple months later. this depends how much advance notice the fed wants to give markets. and the tapering that lasts eight to ten months, a lot of folks say eight months depending how aggressive the fed wants to be in reducing the $120 billion in asset purchases each month. notices, the committee could delay the announcement to november, especially if august jobs data proves to be weak. the delta variant sparks a new round of economic lockdowns or inflation readings ease off precipitously.

the fed chair said that he is not foresee a large economic impact from delta, that the fed, quote, should take seriously the risk of higher inflation powell has yet to speak since that data came out the july jobs report and the producer price index at double the street consensus focus turns to powell's jackson hole speech. he could set the table for that announcement at 4:30 we will be talking to boston fed president on the cnbc interview. carl. >> steve, you have done great reporting on this. and you have spoken with so many fed officials. how near of a gap between the hawks and doves right now? >> you know, it's a matter of months and i think it's something that powell, who has proven to be very good at bringing consensus to the committee, can pull together pretty easily he has a bunch of leverage for example, he could announce in september and then delay the beginning until november

also could do, if he wants to satisfy the doves, a ten-month taper timeline or if he wants to satisfy the hawks an eight-month taper timeline he has ways to create consensus. i think everybody is on the same page in terms. need to end the asset purchases with some disagreement as to when but, you know, we always find this kind of disagreement among the fed initially at turning points in policy and this is no exception. >> steve, people are still scratching their head about the michigan confidence numbers on friday the fifth biggest month-on-month collapse you have to go back to katrina, the gulf war, the great financial crisis to see a drop like that. does it leave you wondering why the numbers portray a consumer that is so worried >> well, not if you were following, if you will, carl, the all-america survey several weeks earlier we reported that big drop what we saw and i think what

richard curtain at u michigan is seeing is inflation beginning to weigh on consumer sentiment. i think that's a big deal. think the fed sensed this. i think it felt political pressure on this issue it doesn't help to have wages going up if inflation is going up more and that will sap the optimism out ofs consumers what i see happening at the federal reserve is more and continuing concern about inflation and understanding that it has to address that through its policy. >> we are going to find out, hopefully, more with the minutes and a little powell this week. steve, thanks. continuing with the market, let's bring in david, jpmorgan asset management global market strategist, and senior global market strategist for wells fargo institute. david, beginning with you, just listening to steve and just thinking about geopolitics, obviously, the umich survey, china feeling the impact of the

environment, a taper, are the reasons to buy dwindling here? >> i don't think that the reasons to buy are dwindling i fully understand what's muting consumer optimism in the current environment. you have lots of cross currents that people are feeling unsure and a little bit unsettled importantly, when we look at the u.s. economy, more importantly, when we look at the outlook for corporate profitability, we think that the fundamentals are supportive of taking risk in portfolios i would go as far as to argue going back to something that steve said, you know, there is an expectations here that the next couple of jobs reports should be pretty good. there is some rumbling that perhaps inflation has peaked on a year over year basis it may improve going forward and coincides with very robust economic data. we see room for rates to move higher and value equities can rally against that backdrop. >> do you think that the market

positioned to anticipate a more aggressive tapering timeline that steve laid out? >> i will have to say clearly it's kind of 2.0 in terms of we have gotten taper before so, hopefully, markets are prepared this time around. really it is all about kind of a handoff from liquidity which is what we basically experienced for the last 18 or so months driving markets higher to there is actually real growth there. and we think so. we think it will take longer for some economic data to mean revert the way the market is pricing it, when you look at trade and other areas, the market thinks that slowdown will happen faster that will be the debate tplays out the next three to six months. >> david, what is your expectation with regard to the ten-year does tapering indicate that we could see a rise in yields that everyone's been waiting for in light of what's been going on with the inflation picture >> so i think what's so interesting, if you go back and look at the playbook from the prior cycle, actually the tapering announcement didn't

really end up pushing rates higher, but that seems to very much be the expectation that perhaps that will catalyze a move in rates here into the end of 2021. to me it's more about the global growth story you mentioned the numbers out of china earlier this morning being somewhat disappointing obviously, delta is a much bigger problem for the world than it is here in the united states and other parts of the developed world, more broadly. so to me if we can get some signals that, you know, the things are beginning to improved outside of the united states and europe that, will catalyze rates higher we think we finish the year closer to 2% rather than 1%. i think 1.75 by year end is a reasonable expectation. >> right although jpm was prior at 1.95, right, david >> the investment bank has been bringing their forecasts in a little bit i tend to operate in ranges for safety's sake. so still in the 1.75 to 2 range,

but closer to 1.75 today than the start of the year. >> fwit it samir, i mean, david mentions europe and given the fact that their valuation rates are well above the united states, canada has had good numbers in terms of vaccine output, it has made people wonder whether it's time to start looking harder. maybe it's too late to start looking at whether or not europe outperforms the u.s. among developed markets. >> yeah, we have been calling for some convergence for much of the year that's one of the reasons why we had dollar weakness as one of our calls. where we focus instead was on the emerging markets side. the tricky part has been delta has really kind of upended plans, especially with respect to china, and more recently the chinese data has been a library little bit of a fly in the ointment we think if developed markets do well, the dollar weakens, emerging markets are the real opportunity here. >> david, we are expecting a large swath of retail earnings this week. coming on the heels of what we

saw with regard to consumer sentiment last week, the sector itself has underperformed recently, what type of commentary to do you think the ceos will be discussing with regard to the state of american consumer now >> it will be interesting to see if consumers have continued to tee ploy a lot of the dry powder they built up during the pandemic we are able to look at the chase data on an anonymous basis one of the things that we found and continue to find is that consumers are flush with cash. so to me it's really about confidence and that's where i th why i think it's worth noting what the ceos say. there has been work done by the folks out at uc davis and the san francisco fed which actually shows that coming out of pandemics consumers can be a little bit gun shy so it wouldn't be surprising to hear these management teams acknowledge that maybe the consumer isn't out and spending at such a robust clip like a lot of people expected, but nonetheless i think that the outlook for the consumers is

still solid. i will be looking for in these report mentions of higher wages. to me the story really about can wages negatively impact margins in 2022 and what does that mean for earnings. >> finally, samir, oil's -- it did get close to 66 this morning. i know your generalview is talk0 a barrel got way ahead of itself in the last couple of months >> yeah. so we think that the commodities as a whole are probably starting a new cycle and it has to do with how much discipline producers are willing display this time around what you see in the rig counts, oil back to pre-pandemic levels and that's the story here, is with opec plus operating out of discipline with u.s. producers, you know, showing quite a bit of discipline, we think that the path of least resistance is higher for commodities but again if it gets there too quickly as with $100 oil, we think it will mean revert.

so again the path is higher but it will take time for that to play out >> a lot of difficult pictures to read now, guys, especially with the news we have had to absorb the past 48 hours good to see you both thank you, david and sam here. >> you mentioned, carl, geopolitics, the taliban taking control of afghanistan's capital city dan murphy with the latest hey, dan >> leslie, as we speak the u.n. secretary-general is addressing an emergency summit of the u.n. security council some of those headlines, first, the secretary-general saying that the taliban needs to exercise utmost restraint to protect lives. at the same time, the secretary-general saying that all countries should be willing to receive afghan refugees and refrain from deportations. also news out suggesting that the u.n. security council is also concerned about what it is seeing as chilling reports of

severe erestrrestrictions on hu rights, also particularly concerned by mounting violations against women and girls with the taliban now effectively in control of afghanistan this also comes as president joe biden faces growing criticism even from some allies in washington about his handling of the exit in afghanistan. at this hour we understand white house officials are now discussing how biden should address the taliban's rapid rise to power and the extraordinary images that we are seeing coming out of kabul airport in particular i know you have been flagging this in the show the latest vision from the airport where we see afghans clamoring around a moving u.s. air force plane. some people clinging to the wheels here and fuselage in pure desperation. others run ag long side, hoping to get a ride out. it's their only option now commercial flights canceled and the u.s. focusing on its own evacuation situation efforts

and reuters reporting that five people were killed in the calamity at the kabul airport. however, nbc news has not been able to independently verify that reporting hours before all of this unfoldled we also saw extraordinary scenes of the taliban inside the afghan presidential palace after cnbc here in the middle east was able to confirmthat the afghan president left the country fearing for his safety and leaving to avoid bloodshed as he described it now, this outcome wasn't necessarily unexpected, but of course the speed of the taliban's takeover did come as a surprise the biden administration now defending that u.s. mission in afghanistan and the decision to withdraw a number of questions still remain, including what does the future of afghan leadership look like now we're likely to hear more from the u.n. security council later today. at the same time, how do we explain the taliban's longevity after 20 years of american

vichlt on the ground hard lessons to be learned and reflected on here. the bottom line, where was the afghan army in all of this why was it not able to protect afghan civilians as the u.s. withdrew and also questions about the future of afghanistan and whether or not it is going to be a harbor for terrorists globally a lot of questions yet to be answer that's the latest. back to you. >> damage, thank you for that. answers are going to be a long time in only coming bichlt the way, a quick programming note. we will continue to follow and cover this story on cnbc don't miss "the news with shepard smith" tonight an hour with the latest headlines 7:00 p.m. eastern time meantime, the nasdaq is down a full percent and the dow is about 150 point off of the lows. the roadmap for the rest of the hour travel stocks taking a hit the u.s. nears 1 million daily covid cases. >> and details on the supply chain crunch from the port of l.a. and bitcoin heading towards

50k. we will talk about state street's crypto head later this hour when "squawk on the street" continues. throwing things at me? look, as cfo it's my job to be ready for whatever's next. that's why i have my finance team, randomly hurl things at me. it's also why we use workday. it gives us insights, so we quickly pivot our strategy, people, planning, you name it. sorry, sir. i will aim straight at your next step. see that you do. would you like some coffee? workday. the finance, hr, and planning system for a changing world. ♪

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to achieve - to change the game and inspire the team of tomorrow. safety administration launching an investigation to tesla's autopilot program. tesla shares down nearly 5%. phil lebeau with more. hey, phil. >> this is a big deal from the standpoint that this is a formal investigation from the national highway traffic safety administration this is not simply saying we

have had some reports here, yeah, we might look into it. they are formally looking into let me run down what the investigation will involve there are 11 crashes that they will be looking into all of these crashes involve a tesla in autopilot mode crashing into an emergency vehicle. 17 injuries, one fatality. this covers models s, x, y, and 3 from 2014 forward. that's 765,000 tesla models under review as part of this investigation. one of the crashes that they cited as being a part of this investigation, this is the scene. this was a model 3 that crashed into a state trooper who was assisting a disabled vehicle on the side of the road in norwalk, connecticut, in december of 2019 in announcing the investigation today, they said the investigation will assess the technologies and methods used to monitor, assist, and enforce the

drivers' engagement with the dynamic driving taskduring autopilot operation. remember, elon musk has defended autopilot over the years, said, look, this is a safe system. it relies primarily on cameras as the primary base of information for the vehicles, and until earlier this year there was no system where the car would be monitoring the attention of the driver to make sure that the person was paying attention, if the vehicle was drifting off in the wrong direction, was not reacting the way it should. other driver-assist systems do that it will be interesting to see whether or not that's a focus of this investigation by the way, guys, we have not heard from elon musk about this yet. interesting to see if he does say something. back to you. >> yeah. monitoring that twitter feed closely, phil. thank you very much. travel stocks taking a hit as the delta strain continues to surge throughout the u.s joining us is helene becker from

cowan and company who covers the airlines hey, helene. >> hi, leslie. thanks forhaving me. >> thanks for being here can you just give us a sense, you know, levels, what has happened so far with regard to the travel sector as the delta variant makes its way across the world? >> we've seen a deceleration in forward-looking and increase in short-term cancellations i think people are concerned about international travel more than domestic travel i think people are pretty comfortable traveling domestically in the u.s. but getting outside the country, even with the ease of testing that you can do, and you have to do before you come back to the united states, people are worried they are going to get stuck outside the country, especially if they leave and they don't test positive, but then while they are gone, and then they try to come home, they test positive. i think you're, like, stuck

where you are for two to four weeks. so it's not very conducive to making long-term plans >> yeah, i heard anecdotal evidence of that from friends and family worried about getting stuck places and what that means for various plans for the summer moving into the fall you know, what about the vaccine mandates there has been a bifurcation among airlines as far as vaccine mandates for staff is that having an impact on confidence and willingness to fly certain airlines versus others >> i don't think so. i haven't heard that mentioned as an issue for the airlines i have not heard anybody saying, well, we'd rather fly united because we know their people are being vaccinated i think most of the people on the front lines have made that decision to be vaccinated. everybody still has to wear masks onboard aircraft maybe people feel a little bit safer. i don't think the traveling is the tough part

i think most people are comfortable with the idea that being on an aircraft is still really safe relative to other places thaw might be because of the cleaning and everything that you guys have talked about over the past year and a half i think it's really just the concern about how transmissable this is and what happens if you are caught out somewhere rather than, you know, in the u.s. you don't have to test and, obviously, hopefully, people are vaccinated by now anyway >> helene, in terms of favorites here among the majors, you know, we had heard a lot of discussion about favoring southwest because of the domestic route structure and less reliance on international or corporate and then along comes the guidance or q3 does that change the picture >> i think a little bit. i think that the deceleration in forward lookings is what is changing the picture

i don't know how long this variant is going to be in the news the way it is, a. and, b, i think that if it's short lived, then i think you will see an increase in forward-lookings again, right? i think as people head into the holidays, they really want to think about traveling again. they may have spent thanksgiving apart last year from their friends and relatives. they may have spent christmas holidays apart i think they want to get back it a normal life. and i think that you will see that increase in bookings heading into the fall arizona maybe the variant speaks and declines but it doesn't really change my view that domestic is still where you want to be versus international, although that said, we do have united as an out-perform primarily because if -- if international does, pardon the pun, take off, united has the biggest exposure to

international. so, hopefully, that works out. >> what about the labor issues that have plagued airlines in the past as the delta variant becomes even more in focus are airlines grappling with that as well? >> well, i think what they are grappling with is the fact that they are having a very hard time finding low-wage workers and it's not only the airlines it's more their contractors, the folks who are supplying food to the aircraft it's the wheelchair runners. it's kind of those folks who have not come back to work i think from the other perspective, pilots, that has been a bit of an issue, is an issue for american more than anybody else because they had slowed their training and then they had to speed it up and then they got behind. so maybe they've caught up by now. i think that has been an issue i don't think flight attendants have been as big an issue.

some of the more senior flight attendants definitely took early retirement and early outs last year but they have been hiring pretty aggressively in that category. and being a flight attendant seems like a fun job, right? you get to travel a lot. deal with unruly passengers. [ laughter ] >> i know, i was thinking that could be my retirement job >> i don't know. i see all these stories about rowdy passengers it seems like that would need to settle down a little bit before making it more attractive. but you know what? as carl mentioned, if the analyst thing doesn't work out -- >> if you get tired eof being te dean of the space, helene. appreciate tharjts you are very kind thank you. thanks, guys. for all the worries about travel names, by the way, hyatt is expanding its reach into luxury resorts in an almost $3 billion deal.

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spotlight. iyc, relatively flat the last month as investors try to weigh delta's impact on spending core holding hyatt hotels is higher seema mody has some details why. >> this is a big bet on luxury resorts. hyatt acquiring apple leisure group, a group of resorts from private equity owners for a hefty sum, $2.7 billion. it's a deal that will double hyatt's global resorts portfolio, in the caribbean and n mexico where apple is one of the largest operators for packaged holidays the all-inclusive approach is very attractive to lot of the customers. we have seen deals in the luxury space. earlier this year marriott adding 19 resorts owned by sunwing travel group ceo telling me there is enormous pent-up demand from families and

then intercontinental announcing plans to launch a new resorts brand. it's sort of a sign of where hospitality, the industry sees growth as a return of business travel remains less certain. also worth noting luxury is where hotels are seeing the most pricing power right now. the average daily rate for higher-end properties up near 20% just in the last four weeks at around 3 # $50. this a vote of confidence for the travel industry as the delta variant has raised concerns around future demand hotel operators are trading down over the past one week by around 2% to 3% carl, back you. >> interesting making long-term bets. thank you. back-to-school season got pricier and we will tell you why when we come back. wlap

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welcome back here is your cnbc news update at this hour. after chaotic scenes over the weekend desperate afghans trying to get into the city's airport the white house is now deciding when and how president biden should speak to the nation about the taliban's takeover nbc news saying that the president may come back early from camp david for a speech from the white house, although nothing has been finalized. in haiti there are not enough doctors to treat the estimated 3,000 people injured by a magnitude 7.2 earthquake saturday makeshift clinics are trying to help as many as they can at least 1,300 people died in the quake. and spain nearly 1,000 people have been evacuated as 1,000 firefighters work to contain an enormous forest fire. a car burst into flames on a highway and spread with the help from strong winds, high temperatures and low humidity. and just 40 miles south of atens wildfires are threatening homes and prompting evacuations.

the prime minister is apologizing for failures that allowed fires to spread. it's been tough for greece for wildfires. a tough few months for them. >> absolutely has. we are keeping them all in our thoughts. higher prices may be on the way as slowdowns continue to hit the supply chain our frank holland has more on that for us. hey, frank >> hey there, leslie back-to-school clothes will cost 77% more year over year largely du to the increased cost of shipping the outfit to the store or even to your house. most clothes come from asia in containers the cost of shipping those containers to the u.s. west coast hit a record and is up more than 220% year over year. financial have the rates going even higher. trucking, that's 80% of everything you buy gets to stores, those rates at records as well. 53% higher the back to school prices are

increasing across the board. for example, note backs are 75% higher book bags 22% higher sneakers 17% higher. discounts on the decline the average discount 13% last month compared to 18% in july of july of 2020 inventory to sales ratio a teen y ten-year low stores are stocking 18% less than a year ago. some due to shipping costs, some to storage costs retail warehousing supply at historically low rates at 4% vacancy and those rents have increased 10% year over year the forecast, they will continue to increase. overall, you will pay about 40% more for back to school shopping than in 2020 back to you. >> not good numbers. thank you, frank. the world's third busiest port remains partially shut in

china for a sixth day risking further backlogs port of los angeles executive director gene siroka welcome back appreciate the time. first off, i'm wondering if you can tell us just how many boats are in the water in the queue trying to get to the port here to do either loading or offloading >> yeah, carl, glad to see you again as well. it must be sorted off -- started off by saying the ports have never been more productive in los angeles. port productive for vessels alongside is up 50% since the surge began and we are exchanging on and off each vessel that comes nat port of los angeles 11,000 container units. that's the best in the business today. this morning we have 29 container vessels offshore of the ports of los angeles and long beach awaiting vessel berths and 20 more on the way over the next three days >> and now with that new efficiency that you mentioned, does it mean that can be worked

off faster than in the past? >> we are continuing to work at record speeds. but the cargo needs to be picked up quicker by the american exporter we have got miles and miles of trains sitting outside of chicago, memphis and dallas. cargo is sitting longer times than normal. our railroads are full the 2 billion square feet of warehousing from the shores of the pacific out to our desert region are overflowing with cargo. we need to start ingesting this product into the american supply chain quickly. >> gene, do you believe that the costs that are being experienced as a result of some of these port closures abroad, do you that i the efficiencies that you laid out will help both exporters and importers digest those, or do you think that, you know, we need to really get past the delta variant and potentially other variants that could cause port closures before we start to see a normalization here >> yeah, leslie, great question.

the news is carrying the supply chain issues around clock. we don't normally see that but there are sudden nuances throughout this chain that are impacting costs overall. most of the american importers in the trans-pacific arena contract on an annual basis. so their costs should be fixed but what you are seeing is that many are going above and beyond the quantity commitments they give to their service providers and open themselves up to spot pricing. each part of the supply chain needs to find sufficiencies. we have talked with the government, round trip economics. our american exports continue to get pummeled by trade policy, the strength u.s. dollar and this most recent phenomenon of moving empty containers back to asia quickly. >> right deadheading to get them back an amazing thing to watch. you talk about the federal government how much much this can be answered with an infrastructure

bill obviously, it will be painfully slow in coming, if it comes at all. how much of this would be solved if that -- if, for example, that bill were logged today >> much, but it has to work in parallel with other initiatives, carl as you know, we have been working on these efficiency programs for some time they are on the ground we still face 30% of our truck appointments going no-show every day. we have to get that rectified. on infrastructure, i will give you one stat, and that's we have been out-invested at a rate of 11 to 1 over the past decade by the federal government and u.s. congress $11 billion have gone to ports on the east and gulf coasts compared to $1 billion here on the west coast it's not something that happened overnight and we've got to correct this quickly. >> wow, that's a staggering figure quick question on vaccine mandates as we kind of look at what happened in china, do you believe that the risk of port

closures due to the virus is something that would warrant a vaccine mandate for port workers? >> we have to keep look at this very closely, leslie the work we have done on the health and safety of our work force over the past 18 months has allowed our rank and file dock workers to average now six days of work per week on the docks since the pandemic began looking to continue to vaccinate whether it's pop-up stands around restaurants and local businesses to make sure that our workers are healthy and safe is the highest priority for us. we have got to keep digging deeper >> gene, you got a big job a lot of people counting on efficiencies as you point out. we appreciate it hope you come back soon. >> thanks. bitcoin in the highest level since may. we will break down the latest in crypto next. plus, watching shares of moderna today getting slammed but up double digits for the last month. "squawk on the street" back after this

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welcome back to "squawk on the street." the market value of cryptocurrency breaking the $2 trillion barrier for the first name nearly three months as bitcoin continues its rally we are joined by nadine, state street digital executive vice president. thank you for being here there was a "wall street journal" article this morning talking about the role of individual traders on helping kind of drive up this recent run up in cryptocurrencies what do you make of that is that a bullish sign for the crypto market as a whole >> i think these past couple of weeks have proven that crypto is here to stay and it's very possible that a lot of these individual traders are getting

into the action with the promise of more regulatory clarity as the days and weeks ahead so definitely a very bullish sign >> there was also though a report last week showing that institutional investors leveraged traders, leveraged funds were bearish on cryptocurrencies, the futures there. does that concern you we may see a divergence in the type of investor that is playing crypto now, that you have individual traders do tend to be a little bit more, you know, momentum driven, kind of piling in while institutional investors could be a little bit stickier are sitting this one out and betting against this space is that indicating more volatility and potential risks associated with this area? >> as you know, this has been primarily rallies in a market dominated by retail investors so

far. mainly because of the uncertainty in the regulatory unclarity, if you will, that we still have for constitutional investors institutional investors need more certainty, more scalability, and clearly we are working with the regulators to build these infrastructures to be able to support that so there is definitely divergence now between retail and institutional, but that is mainly day to the nature of the environment we are operating in. as we get more, you know -- others have promised more regulatory clarity in the weeks ahead and i think that would definitely be a boon for our crypto trading as we move forward. >> i wonder, within crypto, whether or not bitcoin is losing share or whether or not this rally is solidifying support

i mean, relative to other types of coins right now >> you know, it did hit 48,000 briefly today before it dropped a little bit more, and that, i think that is probably the highest level it's been since maybe may, early may so i don't know if it's losing share or not are but i think as the london -- with the ethereum, we're seeing, you know, more usage for these various coins. but bitcoin is a breed by itself and it's carrying its weight moving forward so it's hard to tell at this point. >> yeah. i wonder, you know, last week with the infrastructure bill and the amendments, i mean, it was remarkable to see the crypto community sort of be so vocal about policy and it was a signal of their lobbying prowess at this point i wonder where your head is regarding those amendments and the degree to which there is policy risk remaining either in this bill or in bills to come.

>> i mean, it was phenomenal to see something so decentralized being very quickly represented by the industry and a lot of big names rallied behind it. carl, i think it's important to note that i don't think by everything that i have read, nobody is saying that, you know, crypto shouldn't be regulated, shouldn't be tax the it was more the murkiness of the language unfortunately, the amendments didn't pass. but not all is lost, i don't think. i think there was a lot of good news on a lot of fronts. one, to your point, we saw the power of social media and the importance of the community rallying around it, looking for clarity. i think while the battle was lost, the war certainly is within reach and it's a long way to go. there is two years of implementation a lot of things could happen so i think it was good because i think it raised the profile of

crypto with our regulators, with our representatives, and honestly all across america and the world. so knowledge is power, and, you know, those were -- it was an incredible achievement for those efforts. so, hopefully, clarity and, you know, i think, you know, reasonable do reasonable things and i am confident that it will -- it will get amended and be reworkable for all parties >> speaking of regulation, we're still waiting for that s.e.c. green light for a bitcoin etf, several applications are pending on that front. i read state street is interested in doing more of the technological underpinnings behind these types of etfs what are the latest expectations tass pertains to an etf that tracks very areas of the crypto

world. >> he's agnostic to the technology, but, you know, very committed to investor protection and so are we. we have a lot of clients, we have helped two of our clients, so we have applications in front of the s.e.c. now, waiting for the green light. i'm hopeful before the end of this year we will see bitcoin etf approved i think they with like to see it more using futures to get exposure rather than the coins themselves i think that's fine. every little step helps here but it is really important to get this right this is a very young industry. it has taken us a long time to get the 40 act and all the other provisions in the investor protection right if it takes longer to get the right tool and framework and mechanism in place, that's a small price to pay for something that could be in the years to

come. >> 4 1/2 months left in this year, so if your projection is right, that seems like -- >> let's hope so fingers crossed. >> all right, thank you, nadine. >> thank you so much >> coming up next hour is uber a better buy than amazon you'll hear from the analyst behind that call on why the ride sharing app is now his number one pick as uber once again approaching 41 that's coming up on "techcheck." big hour aad n'mi tt.he

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welcome back to "squawk on the street." the stock market is fractionally lower on the day, pulling back from highs on friday economically sensitive sectors like energy and materials are some of the hardest hit sectors as you can see here. while those sectors not as dependent on the overall economy are outperforming like the utilities side of things now, nearly every stock in that sector, utilities positive on the day, led by shares of duke energy, southern company and excel and edison international as well.

utilities does remain the third worst performing sector in the s&p 500 so far this year so keep an eye on the utility stocks defensive in nature. quk t see wl be right back keep it right here oh! are you using liberty mutual's coverage customizer tool? so you only pay for what you need. sorry? limu, you're an animal! only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ ♪ you probably think visa is a credit card company, huh? ♪ but it's actually a network. ♪

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oatly shares higher this morning. kate rogers joins us now with why. hey, kate. >> hey, leslie this was oatly's first earnings report. the company reporting a loss of 11 cents a share, one cent wider than expected. revenue came in below wall street's estimates at $146 million for the second quarter the company said it was able to overcome both covid and manufacturing-related head winds during the quarter its supply chain was impakd for major partners like starbucks in recent months. the company says june and july were the strongest consecutive production months in history they announced an increase in the oat-based capacity at its utah facility. it will also open up a facility in ft. worth, texas in 2023. this combined with its manufacturing facility and two in asia will create more than

200% increase in its production output by the end of 2022, compared to the end of 2020. the company also noting inflation saying it had experienced some freight cost increases in emea and the americas dure to the pandemic and the company said its localization of production in the u.s. and emea and asia to come may help to curb some of those costs, leslie. back over to you >> it is amazing they had that short selling report and shares were down slightly from then that will do it for "squawk on the street." "techcheck" starts right now good monday morning. welcome to "techcheck. i'm carl quintanilla with deirdre bosa, jon fortt has the morning off. a sell-off in tech, stocks to be bullish on today amid the dropoff. the u.s. government opens a probe into tesla'sut