good tuesday morning i'm carl quintanilla jim cramer has the day off home depot underwhelms u.s. retail sales data does suggest that the delta variant may be impacting the future.

home depot and walmart moving in opposite directions. we'll explain why. plus the u.s. to advise boosters for most americans eight months after vaccination. we'll discuss it and the big shorts michael burry revealing against cathie wood. you saidthose who are nitpicking on walmart at least are involved in a farce. >> i was looking for a number that was dramatically lower than this on almost every single one. including gross margins. when the stock comes out, the report comes out, the stock merely dives what's interesting is that it's down the com store sales are not a big blowout. they're a gigantic blowout

what happens people who first -- really have to explain this to people. a lot of things are determined by the futures but also determined by europe when europe closed yesterday we rallied. europe, i think, is more of an epicenter of problems than the uk with any -- with traditional. i expected home depot to do better and home depot looks like, wait a second, that was a great thing that it had going and maybe we're done maybe the fantastic numbers that we expected are finished home depot is doing -- 5.61 is the estimate so we can say that's a dramatic slowdown i would just tend to say that it's not as good as others.

>> gross margins missed. inventories, not bloat buddy running ahead of sales. >> i don't want to -- i know mike, i think he's kind of a continuing too negative. i know home depot really well. and i think what home depot had was inventory they paid a lot for. let's not forget where lumber was of the i went to a bumplg of home home depots this quarter in many cases home depot didn't have the inventory that was necessary. i think lowe's may have a better inventory number, starting from a different position i think we'll find marv nelson did better than home depot i don't think that these numbers are bad. we've come to think that home depot has gone from 1/50. >> jim, come on.

what do we expect of companies it's almost unfair it's like home depot does not -- won seven straight games and lost a game. wait come on. give them a break. that's how i feel about home depot. it's been an unbelievable earner i don't mean earner like the sop sopranos it's done really, really well. >> yes, it has. >> it's been a great run people are taking profits. >> and then there's the macro data, retail sales for july down 1/.1, in line with what j pchlt m morgue en yesterday said they argued delta is making the consumer more cautious on the margin. >> definitely. >> no question about that? >> no. i do think that dr. gottlieb, true north, keeps talking about this peak that's coming. i come back to the idea that the fifth column in this country are kids that go to school, come back and we're not vaccinated. it's not like you come back and they have chicken pox and you get chicken pox. delta makes it so that even the

president has to say let's get some boosters going because pfizer was at 55% for people 65 and over in israel that study has been called into question same time, when you go to try to get the third booster right now, you're doing it illegally. i think people have to understand that if you go and you say, listen, i've only had one, that's fine you can do that. honest people don't do that. >> right million people, by some estimates, have done exactly that. >> exactly. >> to jim's point, white house reportedly planning to recommend that most people in the united states get a booster eight months after their second dose that guidance would only apply to two-shot regimens from pfizer and moderna, would take effect as early as mid-september. some argue this morning, jim, that is one of the most negative pieces of news because of the challenge it was to simply get two shots into people. how are we going to do this again and again? >> i think a lot of people who

have the shot i think once you buy in, you're all in. >> you think so? >> yeah. >> no degradation in vaccination rates? >> i don't think so. i think the people who are against the shots are ideologically against it, live preand die a little twist, by the way, for those who have that view and those who are saying, you know what? if it takes more to be immunized, bring it on so the divide is among people who are comfortable with the shot and peoplewho just say i' never taking the shot. >> right so you don't believe there's a large contingent of those who were kind of on the fence but were talked into it in the first rounds >> that's a really good question i was talking with my doctor and werp talking about the notion of how many people in his practice and around his practice, cvs so

he has a lot of different input, says listen, can we please get it we really want it. this is the plus 65 and the eight-month. i have my antigens, antibodies he's like, i don't know. we're in unchartered territory really series heavyweight saying you've got to get this if you get it you almost have no chance of getting these. i would love to minimize that. the cdc and the fda, they're remarkable in their lack of leadership they play. >> if any institution is seeing their reputation's dinged. remember, we gave walensky a hard time about impending doom that did precede delta. >> the hospitalizations, yes the deaths, no

we don't want people to scare us we want reason and we want logic. and when we get that and are confronted with it, we'll say we're going to make a good judgment when you scare us, the people who question their credibility. >> as for the drugmakers themselves, pfizer, moderna, this is turning into a bit of an annuity business, don't you think? >> there's been a big question about whether pfizer could have a good 2022, literally, and 2023, terrible now we're looking at that time and saying this gives it a much higher multiple. something for alzheimer's and everybody is afraid of alzheimer's. i like the concept of the annuity until they fill their patent cliff what they should be doing at pfizer, i've told it to them so i'll say it to everybody this is when you buy somebody. right now is when you buy a company because you're so flushed with cash and no one is

giving you any credit for the cash whatsoever. if you are moderna you want to start ten trials of perm ied cancer vaccines right now, which are very expensive. >> it's a lot to digest this morning on both the booster front and retail front we'll get to a lot of it this morning. futures, as we said, looking a bit negative although, yesterday, we did officially double the march 2020 low. the fastest doubling for the s&p since world war ii. >> since world war ii. >> we found out we were going to w win, holy cow. >> but for the time being, futures are weak and a lot more "squawk on the street" continues from the nyc in a moment ♪ ♪ experience, hyper performance that takes you further. at the lexus golden opportunity sales event. get 0.9% apr financing on all 2021 lexus hybrid models. experience amazing at your lexus dealer.

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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. nbc's ali aruzzi joins us with the latest. >> reporter: after those extraordinary scenes yesterday on the runway in the kabul airport, inundated with people, some clinging on to the side of the plane and at least two people reportedly died after they fell from the aircraft, and u.s. troops having to fire and kill two afghans who are part of a crowd who breached the airport in that mass exodus yesterday, things seem to have normalized a

little more today. after that mele yesterday, the u.s. suspended all evac wags, but this morning they seem to have resumed senior representative to afghanistan posted a video this morning, showing the runway empty with american troops on the tarmac he wrote on twitter that the runway is open i see airplanes landing and taking off also last night, overnight flight tracking data showed a u.s. marine corps hercules at the airport and later taking off for qatar which, of course, is home to sand com headquarters. seems thing to be normalizing now and other countries are sending in planes, like germany shall to get their folks out of there. it remains a major gauntlet for afghans trying to get out of the country and flee the taliban

we've heard minor conciliatory comments by the taliban, saying they don't want women to be victims. they said women should be part of the government structure in afghanistan. many people are very skeptical of those comments. they think they're hollow words while they're taking over the country just so everyday functions can work look, carl, the taliban have a terrible track record. they've never shown any sign of wanting to reform or become moderate when they ran afghanistan from '96 to 2001 they were one of the most brutal, ultra conservative, oppressive regimes in modern history, stone ings, amputation, public executions in soccer stadiums were daily occurrences. women had no rights. their words aren't going to be listened to. their actions are going to be looked at very closely. >> ali, a good reminder and good roundup of early science hope

f hopefully of stabilization, at least around the airport thank you very much. jim, i thought of you this morning because we talked about this yesterday chinese state media is warning taiwan, for example, about -- >> anti-submarine warships by chinese around taiwan join operations why? u.s. provocations. we have to tell the truth here as opposed to the chai knee. taking a page approximate kyle bass, the guest previous we're not doing anything offensively that anyone can really tell. these are things that are just basically, you know what let's test the resolve of the united states because we just saw what happened in afghanistan. and a lot of people are concerned that we're oblivious in our stock market to what the chinese see as a major opportunity against taiwan taiwanese government is very anti-communism andthe companie themselves are very anti-communism but wasn't baidu, wasn't ten

cent, wasn't alibaba, weren't they capitalists they've all been slapped down. chinese making a major move against capitalism and trying to squeeze taiwan. >> more headlines today about online, for example, platform regulation, trying to take out what they view as unfair competition, as china under underperforms for a second day there now. >> let's understand, this morning we had walmart, okay and we had home depot. could you imagine if the justice department threw out a line today that said, you know what walmart is crushing it that's unjust. you could say, wait a second you can't do that. that's exactly what's happened here alibaba is being told you guys make too much money. that's a beginning of what, let's just analogize to communism, what stalin said to ukraine. you guys are making too much money. next thing you know, boom. i don't think alibaba, they'll

jail anybody but the notion of treating these companies as if they have a pe, what's the price earnings ratio of a company that's being told to make less money >> and one more reason that genzler issued already his most direct warning to investors about investing in chinese companies. >> i have to take my hat off to the commissioner, because what he's doing, he had a full plate, but he is just tibbing them off. he's ticking them off. robi robinhood, what has robinhood got going? i don't know if you read its research it's hysterical. i was thinking about it. it's like goldfish, pepperidge farms goldfish it has no rigger whatsoever and it's lapped up. >> one thing that has hopefully some rigor is ricoh data let's get to rick santelli.

>> big return on weak retail sales, very strong industrial production up .9%, almost double the expectations up .5%. from up .4% to .2%, but this is the best number since march. past utilization, a very big number 76.1%. we leaped over into the 76 percentile handle. we haven't had one of those since february precovid, precovid 76.3 was the precovid february, and that is the highest level since then this is a very, very good set of data points for manufacture ing, mining, resources. this will help yields hold yesterday's low yield, which down a little this morning the market is trying, trying to hold equity markets might find something to bounce on, on this data point, carl

back to you. >> rick, we'll find out in a few mo moments. in fact, we'll count down to the opening bell we'll get cramer's mad dash as jim and i check out a different room here on the floor, shaking things up on this august, 'rba ia me wee ckn mont mpetition beat us a. how? they have a better finance system than we do. i feel like they might have a better finance system than we do. workday. how do they make better decisions faster? workday. it's got to be something workday. i think i got something. work... hey, rob, you're on mute. hello! hey, rob, there he is. workday. the finance, hr and planning system for a changing world. what the world needs now... is people. people who see energy a little bit differently. where a switch to cleaner power means a more resilient grid... with renewables and gas power providing energy whenever it's needed.

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- had enough? - no... arthritis. here. new aspercreme arthritis. full prescription-strength? reduces inflammation? thank the gods. don't thank them too soon. kick pain in the aspercreme. time now for cramer's mad dash as we count down to the opening bell i know you were looking forward to the roblox. >> i do want to take the other side of the trade here we knew previously the stock got hit in the high 80s because they had a bad month. the bad month is now incorporated in what we've got today but the good month is

july you could say, wait a second, jim. that july number is helped by delta. look, if delta were gone, that would be a different thing instead, we're all grabbing, for heaven's sake. daily average not so bad i don't mind 42% growth daily users outside the u.s., 42% growth in daily growth users over 18. i think the stock is being punished a second time without taking into account the last month was very good. last month very bad, stock goes down, quarter stock goes down again. no look at this forward month and this month is good i'm not buying what they're selling when they're selling roblox. >> hours engaged up 13 year on year discussion of the metaverse. we're going to need an acronym of names. >> metaverse, like beethoven,

brahms and bach are there. because i bought nvidia. you could have a conversation with various people on tiktok who are upset and scarlett johansson. that is not my metaverse but it is many people's metaverse. >> interesting we'll talk about roblox after the opening bell the opening bell is a few moments away more "squawk on the street" continues after this don't go anywhere.

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the purchase program is not as effect ive as it is right now the sector is not adding much to employment we're seeing that the employment is coming from opening up of the economy. >> that's boston fed eric

rosengren on "closing bell." he said he expected the august jobs number to warrant an announcement about taper at the fed meeting on october 22nd. >> what's the had your he here we got a terrible retail sales number when you go to a restaurant in new york, you basically have to prove that you did something and it's for real. you have to prove vaccination. that's going to be an impediment when i talk to people who are in commerce, they're all just worried that everything has slowed down dramatically, whether it be -- by the way, go talk to southwest air. >> and spirit. >> yeah, spirit. what's happening travel is being throttled back we're all waiting to see when this is going to pass. and there's a guy from the fed who says, listen, it's all systems go all systems stop in some places. i find -- look, industrial production is lagging, retail sales is forward and i don't

really like hear that there's something that has to be done before the unemployment benefits roll-off you have to? look, i know that there are people who can come on air and say the fed is behind. i have been trading stocks since 1979 i've they ever heard of the fed hint, not even the great paul volker taking rates up every 15 minutes. he was behind. what jay powell is trying to do is be sure and there's nothing the matter with being sure. why? what's the hurry we don't have any -- look at rates. rates are saying, you know what? there's no business being done united wholesale mortgage on tonight and they're up against rocket they compete for mortgages and they're not making much money. there is a shortage of housing if you raise rates, what will that do? create more housing? no they're giving her all she got yes, we can look at so many things that are inflated there's no doubt about it.

let's take plastics, very inflated as we open plants, reopen plants from terrible storm in houston, prices peak. i am not -- to say we're one month away from peak or we're peaking right now. we're peaking right now in semi conductors, okay that month that we just saw, we're peaking in august. it wouldn't surprise me if rates didn't go up at all. we peaked in housing what is the win? is the win to slow the economy is the win to make it so we make less money i think what jay is doing is saying, maybe all the books are wrong. maybe we should let people make a little money right now ceos make a little money. i'm not presenting him as a communist but a thoughtful man ceos make a fortune. maybe it's about time -- >> powell will talk today at 1:30 at this town hall the thing with educators, and i don't think we're expecting any news although, i don't know

it's difficult to tell. >> the first pal went and crossed the market that was not a temper tantrum. this powell is someone -- he never gets any credit for being a good man trying to help people. >> we'll find out more, obviously, not an easy gig no doubt about that. there's the opening bell cnbc real time exchange. big board is data and analytics company inspire global, celebrating its spac and otonomo over at the nasdaq. >> enough analytical companies that have come public, we have great analytical data companies, we have a ton of them. sp splunk, adobe. one comes public every day you take a look at the company stock a few weeks later and it's like, oh, wow, that was -- ow.

>> what is that, just -- >> too much supply. >> it's not weakness in enterprise or -- >> no. >> -- worries about it cap x >> i would rather just go buy salesforce, much cheaper, adobe, much cheap er here is the thing i see. 23 sbls andme, i did 23 sblsand me sitting on a xwchlt genome mine, you can't because it's not a health company raur not supposed to be able to use it like vaccines the stock has been a disaster. this started with all sorts of fanfare, really, really liked it and now it's like, get me out of 23andme. i have a 23andme i did for my

dog, 24% australian cattle dog come on. that dog has never been to australia. neither has his parents. give me a break. not tasmanian devil. >> something he hasn't told you. >> i'm one percent -- i don't mean to pick on them i think it's a fine company. one trillion data points okay fda has said we really don't want them used necessarily look i think they should be used i think they should find a way to take all of this great stuff. but there's also privacy concerns. >> right. >> any time you try to make progress in health care there's so many different ways to be able to make it so you can't so i just say be careful 23andme is not etherium, now being the ft. knocks of the crypto. >> we're down 300. home depot is leading the charge

lower. >> roadway. >> followed on the s&p, jim, lows, which we'll get, i think, tomorrow. >> we presumed lowe's is bad, that marvin nelson doesn't know what he's doing, the same exact problems as home depot that would mean these two companies are inseparable, which has not been the case in a long time by the way, marvin ellison has done remarkable things at lowe's home depot is an a student, gets a b plus lowe's was a b company you had a b plus. >> been a bridesmaid historically. >> yes >> there have been a couple of quarters where they outperform doesn't happen a lot. >> marvin ellison doesn't have any ability to at home depot lowe's cannot necessarily call whirlpool or black and decker and say, we need -- we want you to take all the drills you're going to send to home key poe and send them to lowe's. it doesn't work like that. i think walmart has a lot of

power. >> by the way, the tone is pretty defensive this morning we have a lot of krogers at the top, p & g. >> are we doing that xagain? t tiresome. >> they trimmed some ad-v and bristol, merck and gm. >> bristol up. i can take -- rodney mcmillan, i've known rodney for a long time, ceo of kroger. when the stock was at 27 he was like, you have to believe in me. believe in me, was he the new york mets in the world series? the time was to believe in him that stock has been a rocketship kroger is a much better company. they managed to be able to localize the stores, which was brilliant. and they're up against the large est grocery in the country which is walmart and they're holding their own. look at that stock of course, it's all very defensive. j&j, a stock that can do no wrong, whether it's mesh, whether it's talc, a shot that

walgreens won't take that thing is invincible, like mark wahlberg. >> and flies in the face that at least the perception that the vaccine underperformed its rivals. >> had a great quarter people keep recognizing a great quarter triumphs over the one shot that walgreens won't give you. i know a lot of one-shotters, inclu including my wife. she's saying, j&j basically says you're not going to get real s sick what the heck? you got really sick after the second moderna well, i fell asleep at the standing desk. boom never fall asleep at a standing desk is one thing i have learned in business. >> we talked about walmart early this morning amazon there's a big debate now. ecom growth in q2 on a bigger base how is that not better than walmart's six? >> walmart, there are notes out this morning saying that walmart

is gain ing on amazon. i don't find that to be the case i am very pro-walmart. amazon is being uniquely considered as like home depot, pass it was a great thing and everybody is going to have it has it i disagree with that but it's a very powerful narrative that i certainly cannot -- >> this kae that they're seeing market share slippage to two other entrants sxh other direct to consumer look, everyone has direct to consumer i am not recommending target right now. i use shipped, which is incredible it's reflected in the stock. its stock is down four today if you look at target, it looks a lot like kroger. who are target and kroger? companies that people wrote off. they decided you know what, cornell, there's nothing you can do mcmillan, rodney mcmullen, i said come on, man, cheer up. it's better than that. come on. he's like, hey but he delivered, quietly

delivered. wow! >> that's amazing. you have a couple reiterations, goldman reiterates tesla stanley reiterates t-mo. >> it's no longer john ledger, who comes on air and says hey, those who are selling my stock you're a bunch of idiots and morons go buy "dumber & dumb" or "dumb & dumber." if you look at the stocks of at&t are horrendous. it got a lot of epoxy disney was down yesterday. that was an opportunity after that blowout quarter they're at 177 bob has got the -- listen, if it's covid, we've got disney plus if it's not covid, we've got theme parks.

in the previous quarter, i thought he emphasized disney plus way too much. the problem with a stock like disney is the conference call is so analyzed and parsed this time it was 51% theme park, 49% -- the guy is really expert disney plus. but before it was 75% disney plus, got trapped in that whole thing with espn, 100 million people, thent went to 83, sell, sell, sell no, i thought he proved himself adept. he came on "mad money," he is consi considerate, rigorous. he mentioned scarlett johansson. >> ties to endeavor, ari emanuel. we should mention we are clients, the two of us. >> yes. >> he talked about deals being rewritten. i don't think they represent scarlett johansson but that backend comp will get worked out. >> i think that's something that

he was hinting at. you get these situations that it seems like civil war it's really not. it's just a bunch of rich people trying to make more money. i'm not referencing angles but that's kind of -- >> endeavor did raise their guide for the year on continued confidence about live events, ufc. >> right ari finally got through. again, i'm a client, too i've been watching the stock has been going down while the fundamentals have been going up. but again in ari's defense, it's one of, what, 300 companies that have gone public and you don't have really great coverage it's infrastructure and steve t tusa wrote about it, jp morgan genius i use that term lightly. it's not an analytic service that finds out if you're using games a lot and third-party analysis that's going to be hurt it's actually a business and, by the way, se, if you went gaming, geez i mean, that is just worldwide

gaming but based in singapore i find that we're getting a lot of things like outbrain, which we all know is at the bottom if you're looking at a story and it has something that is -- you click on it. jeffries piece that frankly is lukewarm on outbrain and another piece that is liking it. they're the exact same thing honestly there's nothing more to say. it's like hey. this is the problem with all the new conference calls outbrain this one is neutral this one is buy. what do we do? who is buying? j&j. >> because the street's inability to do rigorous work on the surfacing of new issues? >> tusa taking it on, he covers real companies and i said maybe cordon main is real. i thought it was a women's

apparel company. we have several different women's apparel companies and most of them are recycled. last thing i ever wanted was to wear somebody else's clothes let alone a hand-me-down now it's very environmental, environmental, why goes to a landfill i've been to the waste management landfill. >> i have, too. >> yes and i have held -- got hit by a little pigeon, seagull they do that it's supposed to be good luck. at the same time, that's the -- that's been a big theme i've had to deal with on "mad money," clothes that somebody else wore and how great you are to get theirs i don't know how does that make you great you cleaned the plastic out of the pacific? honestly, what is that doing why is that an ethos they're committed a lot to be able to wipe out the plastic. >> look at coke. done a huge amount of work. >> and some of these companies are doing esg.

they're not green washing. i love that term i'm always looking for the green washers so i can expose them a lot of companies are actually committed because they want to be able to trap anyone young. >> it's a priority for that investor base. >> yes. >> we haven't touched on michael burry's new short. >> cathie wood. >> does this move the needle at all? >> yeah. no more than -- kind of got blown away by the -- how did he do on the crypto there look, a guy who got it right could get it right again i think that krcathie wood is a genius she knows a lot of companies not necessarily companies i want to own. when people say to me, jim, i want to be with cathie wood the next five years, i don't fight them maybe that is her timeframe. let's give her her timeframe let's not say she's wrong about her timeframe. a lot of these genetics companies, genome companies i believe in those

they seem expensive to me. if you get one or two of them and they hit, boom she had that farm equipment company -- not really farm equipment but great innovation but she bought this company raven and it got a bid from polaris buys it. suddenly i say myself, you mow what she's smarter than the average bull. >> yes. >> and i enjoy listening to her. i look at what she bought the night it comes out wait a second, had an is she doing buying that? then you dig a little bit, okay if, if everything works out maybe they've got something. i don't want to short her. i think that's too glib. i think that presumes she's a blow hard that doesn't do any homework that's not true. she buys stocks that you and i might not want to buy because holy cow we're afraid of losing 40%. she's not. i've got to hand it to her. >> really resolute in her view

that technology specifically is going to be disinflationary, right? she's warned you about getting into oil. >> dead right. what do we have to do to prove she's not just tesla, she's not a one-trick pony there was a moment i said her stocks are going to go down, and that happened. but this is kind of a moment where i also think she may be overpaying, but i find that what's happening is, to make the big bet against her is just not smart. >> once again push back on these requests to stem production cuts given what we've heard about retail -- >> they love this price. they're fine everybody is good. everybody is good. i want to correct, not polaris, raven. they're enemies. the united states is happening -- our producers are very happy they're happy over there

the russians seem to be happy. our government is not. it's just not playing a role i keep watching for venezuela, i've got to tell you venezuela is the largest repository of oil in the world if they get a real government and it becomes not a failed state, that's why maybe the futures are showing that oil goes back to the 50s maybe they know something. so i'm not -- i worry about what -- i called oil and i'm sticking by it. >> one of you're good ones. >> thank you i've got terrible ones. >> we'll remember that day meantime, obviously, some pronounced weakness. dow continues to be down about 300. let's get to bob pisani. bob? >> delta, china and a lot of peak everything story floating around show you what i'm talking about. look at the sectors. consumer discretionary retail week on home depot, gap,

clothing stores are down, banks a little weak. defensive basically here health care, consumer staples doing well, kroger, clorox, usual suspects there peak everything? people are passing around the numbers for the retail sales numbers showing how confusing everything is on retail sales of the clothing, for example, month over month, down 2.6 department store is week what happened to the rebound here internet sales down. bars and restaurants, my favorite indicator up 1.7. sorry about that, up 1.7 for bars and restaurants this is very hard to read this because of the confusion around the variant. how much is it messing with the reopening? it's messing with it a little bit for sure not necessarily a lot. we just don't know how long it will continue. same thing with home depot we get this argument jim is absolutely right. these are great numbers out of h home depot comp sales up 4.5. we were expecting 5. operating margins went up, by the way, 20 base points. operating margins are still terrific for them.

transactions see, this is the proxy for the traffic. this is the peak everything story. aha, you see, not as many people going into the store okay, yeah average ticket was up nicely thank you very much for that the important thing is to see what's going on, up 11.3% for the average ticket those are pretty good numbers. here is the problem with home depot. it's beating the s&p for the last two years and year to date it's up 26%. it's a consistent earnings grower pe is very consistent on this company. 20, 21, 22, somewhere around there. higher pe than lowe's. that's the problem t plays into the peak everything story. how much better can it get, even though the numbers are still excellent. that's what's so frustrating about this have you excellent numbers and still fall into these cynical -- peak everything story essentially. did you see the global fund managers we follow this every month from merrill lynch. it's full of peak everything essentially. peak growth. most of them feel it's the peak growth, peak profit period

importantly, they feel it's peak inflationary expectations, 65% of those surveyed said inflation is, indeed, going to be transitory and 84% did say they felt there would be tapering before the end of the year. mixed bag. playing into the peak everything story. china stock story is a very important one. you're getting a double barrel shot here from both regular layers, china regulators drafting guidelines to prevent internet companies from engaging in practices genzler, the s.e.c., basi specifically saying let me make everybody aware, and we are all aware of this, that you actually don't own a chinese company. when you buy a chinese ipo here in the united states, you're actually owning a shell company, more likely in the cayman items. that's a quote from gary genzler and has asked the s.e.c. to

pause any china ipo listings carl, you've got another continuing double-barrel move from the regulators on the china side and on the u.s. side. you see the pressure that's putting on the chai knee stocks. carl, back to you. >> bob, thank you. coming up next hour, bhp selling its oil and gas arm. >> wow >> in that -- >> really important man right now. >> we'll talk about it with bhp's mike henry first a look at the bond report yields have been pushed all over the map this morning got depressed. number recovered on the industrial production number, ten-year note 1.25 weakness on apple. we're back in a moment

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the american consumer definitely in focus this morning

as home depot under whelms on its earnings depot is the worse competition beat us again. how? they have a better finance system than we do. i feel like they might have a better finance system than we do. workday. how do they make better decisions faster? workday. it's got to be something workday. i think i got something. work... hey, rob, you're on mute. hello! hey, rob, there he is. workday. the finance, hr and planning system for a changing world.

let's get stop trading the jim.

>> i want to say i had great quarter and people like it more, because unfortunately, the delta variant, they're going to go back to what they did before brian said that, their stock would be up and there's citi maintaining neutral. i thought they should gepositive i like airbnb more than any hotel this period. you can brink your own clorox. he'll hire me and i'll get the stock hire >> i think morgan stanley goes 145 to 120 >> it is a winner during delta people do not like to stay at hotels during a pandemic i want brian to be more upbeat i apologize if you think i was being too positive >> all right remember, i'm telling you i'm going with this july number that's okay.

uwm, which is united not so good wholesaler stock price but good at what it does. they claim a good quarter. and remember you get a free doughnut that's what's happened we have so many new companies. no sponsorship, no way of knowing things these are all fine companies if you take a look at dunkin' donuts, it's private and then these guys went public we don't, maybe, want doughnuts. >> we'll see you at 6:00, jim. "mad money." >> we do it from somewhere ee? iabzels >> more "squawk on the street. a streamlined version he could access anywhere, no download necessary.

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for bundling made easy, go to geico.com. ♪ good tuesday morning welcome to another hour of "squawk on the street. live at post nine of the new york stock exchange. quite a morning. retail sales did disappoint, as

well as home depot and that has people reconsidering the impact of the delta variability on retail behavior. rick >> yes, our june read on business inventories, up eight-tenths of one percent. it's been a whole year since we had a minus sign in front of any business inventory number. june of last year was the last miness number. that's a good thing. we need build inventories. and we have the august release of national association of home builders housing market index. dianna >> rick, home builder sentiment dropped to 75. the street was looking for a one-point decline. anything above 50 is considered paudsative now, of the index's three components they fell five points to 81. a perspective purchasers fell

five points to 60. and builders say they're continued rising costs for materials as well as skilled labor. that's pushing the price of a newly built home even higher and clearlyfecting affordability and demand lumber is down from its peek in may. other building materials remain a challenge. that is drywall and windows. sentiment fell the most in the south but fell across the nation >> thank you here are the three big movers we are watching today roblox reporting a miss on both top and bottom lines this is another stay-at-home winner those shares are down about 4.5% right now. shares of the biggest mining company also under pressure after announcing a multibillion dollar deal and reporting results for the quarter.

the ceo is going to join us later this hour to discuss all of that. so, stay tuned and finally, keep an eye on the vaccine makers all of those names are set to reap further gains today under reports that the biden administration could recommend covid-19 boosters for all americans, after their second dose you can see names like moderna and novavax. home depot down 5% beth out with results. hey, court >> hi g to see you so, the two dow components beating on earnings and revenue. walmart coming in stronger than expected and home depot disappointed walmart with a 6% growth in transactions this quarter t was stores that

led the way with store traffic continuing to grow at walmart. the e net commerce grew 6% that's a much smaller increase than they're used to seeing. last year they grew 97%. and the retailer expecting global commerce to hit 75 billion this year. that's x-marketplace goods walmart put up the third biggest quarterly revenue ever and raised its earnings revenue and comp sales guidance. brett bigs says the third quarter is off to a good start with a really good start to back to school. and shares up a quarter of a percent. home depot growing 4.5% total, 3.4% in the u.s. and that's growth on top of 25% last year in the same quarter. still both of those were below

the street's expectations. home improvement has been a big beneficiary of the pandemic. they stayed home, worked on their homes and home depot is considered essential but never had to close the pros outpace the di wires for the second straight quarter. and as we're speaking about were the strongest categories indoor and outdoor garden sales fell, along with total transactions average ticket or checkout was higher by 11%. it's fair to say inflation did boost sales. in fact, president ted decker said inflation boosted sales by about 120 basis points, when you're looking at those transactions so, important to qualify there you mentioned shares are down 5% i was talking to robert hahn and

he said as a matter of fact, home depot shares have not risen after earnings in more than two years. back to you, morgan. >> i'm still wrapping my head around the inflation quantification michael, i do want to start with home depot reading that fell to the lowest level in a year. we've been seeing housing sales begin to turn over as well obviously the cost associated with boilding or renovating a home have been sky rocketing is it that it does have tough comps or both? >> i think it's more about the tougher comparisons. they were up 30s a year ago. and so, on a two-year basis, these results are very strong. they did moderate a little bit and maybe that's a little bit of the housing.

maybe that would be on a two-year basis, the strongest quarter ever we did have stronger weather in the northeast. it basically rained every weekend during the second quarter. we heard that from a lot of the suppliers as well. >> shares are down almost 5% would you be buying on the dip >> well, we think home depot -- but we're recommending lowe's. and the reason we like lowe's better is we think it's a more margin opportunity home debow is the leader on the margin size but lowe's has been closing on that with their management and we think as the margin gap closes, the valuation gap would close. home depot does have more of a pro business and pro is leading right now, but we see that as an opportunity for lowe's to close

the pro gap as well. >> i wanted to ask about the inflagsz that i told you about are you seeing aen impact for walmart as well and what's that doing, in terms of consumer behavior, moving forward >> well, walmart is see nothingflation but mostly in digital range, 1 to 2% with home depot. and it saw more inflation more than any other product out there. walmart is saying it but less so for home depot, the lumber units a down a little bit. somebody luke walmart, unit growth was strong, even stronger than total growth. so, they have been able to pass through. in fact, walmart is a big price gap and they're as wide as they've been in quite some time. >> i've seen a couple reports, looking at the expansion of snap

and whether that leads you to a more discount-hesky model in your retail portfolio. does that make sense >> sure. i think that will help walmart they've been helped over the last couple of quarters from other forms of stimulus we've seen over the past two years, since ape rofl last year over a billion dollars in stimulus that helps walmart and things like snap. that will help retailers, dollar stores, etc. >> so, whether it's the earnings reports we got from this morning and the fact we have more names reporting as the week goes on, i guess key transfer investors or specifically key names you would be invested in as we do get more results. >> if nothing else, again, we think we're down three% on the confine. we think they should be able to

get that we think target has been a share gainer and has been obviously strong stock within the retail steals numbers, on a year over year, nonseizeinally adjusted basis, look pretty strong and for that, that increases a beat for best buy. we think pj's positioned itself well one of the items from walmart's report is sam's cost and growth memberships. we think that will translate to good numbers for bjs when they report >> as we head to a quick break, here is a look at our road map for the rest of the hour china stocks slipping as regulators continue to crack down across industries names like alibaba and j.d. back in the red and it's been a year since the famous oped declaring new

york city is dead forever, but is it? >> and they exit the oil and gs business, striking a million dollar deal with woodside. and the dow's down 272 esg is responsible investing. who's responsible for building esg into your investments? at pgim, the pursuit is on for outperformance. as active investors, to outdeliver with customized strategies, integrating esg best practices into our investment decisions. as asset managers and fiduciaries, to outserve, with our commitment to better esg outcomes. join the pursuit of outperformance at pgim. the investment management business of prudential.

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they've entered into a commitment that will create one of the biggest independent energy companies, by production, in the world and that's where we'll begin with mike henry, the ceo it's great to have you on such a big deal appreciate your time today >> thank you >> the materials the company put out talk as lot about the role of commodities in a decarbonizing world. can you talk about, in terms of motivation, how decarbonization played a role? >> let me be clear that the results come off the back of a great year so, we've had record production in a number of our operations, that's allowed us to fully capitalize on the markets we've had for our commodities, that pulled through for a record dividend $3 per share is the final dividend $15 billion for the full year and we've returned $38 billion to shareholders.

the underlying business is running really, really well. off the back of that, we have made significant announcements to go with the strategy and setting the company up for the future one of those is woodside, a australian oil and gas company this is going to create an independent emt company, that's going to be larger, more resilient and better able to navigate the energy transition and it frees up more capital to deploy into the commodities most moderately leveraged and move into rising living standards and we see those trends as driving really strong long-term dud mand for the commodities b.p. produces. and along side that, we created a more resilient oil and gas com

company able to better navigate the energy transition. the action we've seen over the past 12 months has seen an inacceleration in the trends and given us confidence in the strategy we've laid out. we've seen a doubling down of climate commitments from a number of nations around the world and companies, including ourselves. i came out last september and spoke about updated commitments and goals around decarbon zagds. all of those things are going it go towards driving even stronger demand for copper, and then even steel. these are going to benefit from the decarbonization. >> i what to get into the pot ash piece of this in a moment. but first, you mentioned iron ore output i mean, steel making and the ingredients that go into steel are still b.p.'s bread and

better more than double per ton is what you've earned here how sustainable is that? especially, given the fact that there are concerns about potential economic growth s slowdown in china? >> we've seen iron ore come off in recent weeks because of the restriction in china strong economy in china, strong economic recovery, of course, in other key markets as well. we're forecasting that's going to continue on healthy demand driven by strong economy. and over time, they'll relax we expect to see more supply coming out of brazil, maybe more out of australia so, we're not, by any means, saying the prices are going to be here forever. for the time being, we see a pretty good outlook for iron ore

demand and healthy dine ynamic r pricing. >> i want to follow up on the impetus behind this deal historically the oil and gas business, you've had as a hedge to the volatility in other commodities. elliott has been pushing for years for you to offload this business so, what was the final straw now? is it a reflection of what's been going on with decarbonization? is it various tail winds as rel relates to inflation what's different this time >> so, we've been clear previously that we've regulated all parts of our portfolio and the opportunity to unlock greater value for shareholders and we spoke about synergies it creatsz a company that can better navigate the energy transition something all companies are able

to face into and importantly, one of the other drivers of this is it does free up more capital to be able to deploy into those things we've staked ground in and said we want to grow in over time and nickel, copper, pot ash. that are positively leveraged to some of the negative things around us and this is going to create value for shareholders and give them greater choice around oil and gas, and make sure we can invest in these things that we think are going to underpin b.p. for decades to come >> you mentioned the record final dividend, $2 per share the argument could be made the that the sing as scyclical as commodity prices and growth, again.

how are you balancing those against investments in things like pot ash >> so, we have a flexible dividend policy. that's the first thing i point out. and all of our decisions about how much cash we return to shareholders above our 50% minimum and how much we reinvest in the business is driven by our allocation framework we have a very disciplined approach of how we think of the next allocation of the shareholder dollar and this is a project with healthy returns. it's going to generate strong margins and cash for decades to come and it opens up a new front for growth for the company, with a number of expansion after the initial investment in stage one. >> finally, can the long-term trend on capex, is that to the down side?

>> it's going to be driven by the opportunity suite. weevlg announced the capital we have in the year ahead of course, that's going to be lighter with the petroleum transaction. but i'm excited for us to have commodities to continue to invest in. but we're very cognizant about the desire for shareholder returns. my aim is to increase value for shareholders over the long term. >> it's huge deal. big ramifications and a huge comment of where we are in the long-term cycle. we appreciate you coming out and flushing it out for us thank you. >> thank you and later this hour is new york city dead a year after the famous oped, we have a break down of the numbers. to see you. good to see all of you, yeah! why is jerry so... popular?

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kweb on pace for an eighth straight week of losses. regulators issuing a new set of draft regulations just this morning, banning unfair competition, restricting the use of user data a host of names like alibaba and you can see 10-cent holdings ali bobby down 4% right now. and fed officials are in talks to taper at the end of the year here's what the fed had to say yesterday after the owned of the closing bell >> my own personal preference would be that we do equal amounts of reduction of both mortgage-backed securities and treasure securities and that we finish off the program midyear next year. that just reflects the fact that, it's not being particularlyfective, there's no reason to drag it out, as long

as the economy continues to progresses as we expect. >> we're joined by head of macro strategy at wells fargo. thank you for being here great interview with rosengren, commenting on tapering and said another month of a positive jobs picture would cause him to be supportive of announcing in september that they're ready for a taper. what do you make of that do you think the market is pricing at this time >> no, i don't it seems very quick, frankly and it's interesting when you consider the jobs picture. you have fewer jobs than precovid and this is something they've talked about time and time again. chairman powell has shown no information to taper just yet. we should get more clarity in september and when kids go back to school. the idea of announcing a taper

seem as month to two months early for us >> if you're an investor, what do you do here it feels like a crescendo of discussions on the talk of tapering do you see it as something that could be more down the road? what do you say to investors, in the face of so many comments in the last week or so? >> what that translates to is saying short maturity and treasuries, corporate bonds and that type of thing you have a loud chorus but the band leader has not spoken so, let's wait to hear from powell before getting super nervous. at the same time, we look at bond yields and say they're awfully low. it's not very appealing. so, our advice to wells fargo is keep it short, stay three years and in no one's going to make a lot of money but you'll probably lim

that down side substantially over the course of the year. >> why do you think bond yields have continued to be so low? liquidity seems to be a factor and some have made the argument you do have distortions in markets, due to the fed arguably and i know you said it would happen awfully fast f we were to see a taper now and maybe it's not happening fast enough. >> yeah, yields are super low. there's not much doubt about that, at least from our perspective. i think you have to say what are the inflation expectations, verses the real yield? they've behaved as i would expect they've gone up a bit with realized inflations. i'm a bond geek, so i can talk about this stuff i know what it really tells us is going forward, the economic return you'd expect on a bond, has become really negative and a lot of people have become really conservative out there.

and you have a number of investors that have changed their asset alcations. they've had a tremendous couple of years with equities going up and it makes sense for a number of them, over time too, shift those stocks to bonds. we still think yields are far too low and geup at the owned of the year >> after friday 's number and then retail sales and then nahb this morning i mean, if i see another report that argus real consumption growth is going to slow sharply for the rest of the year, i wonder how much is too much? >> it's an interesting take away because if you look at the inf inflation data for the last two or three months, we've had unusual data points over the last two or three days it's still super difficult to forecast any economic number over the near term right now from the various stimulus

programs, from the fed, other central banks. it becomes challenging to forecast only one month ahead. and this is why i think policy makers are more steadfast, looking at six months or 12 mungs. i agree the day-to-day data flow challenging. i would take a somewhat longer term view on those things. >> i wanted toget your thought on what we're seeing globally, especially on the geopolitical front out there. we did see the market react, at least for a short while, maybe an hour or so to what was going on in afghanistan. this morning we woke up to news about new zealand shutting down, which had somewhat of an effect on asia, but seems like here in the u.s., a bit lower on the news but really n vesters don't seem concerned are you? >> in the longer term. if you look at the tape, you'll

say i should have stayed in bed today. er for it's awful. and yet the market reaction has been pretty muted. taking a longer view, let's say a year out, we think a lot of the news over the last 48 hours raises volatility. when you think of, in particular, the notion that maybe the u.s. isn't quite the stabilizing force it had been, whether in afghanistan or the middle east. makes more countries tempted to try dirty business i think in the longer term, itbusts volatility and in the short term, they care about the central bank and the fed and neither of those have been too disrupted, really, by the news overseas. so, until that changes, i expect you'll not see a big reaction. >> just as a good band leader would do thank you very much for joining us today time for news update hey, hal >> and here's your cnbc update this hour.

flights resuming from kabul's international airport after thousands stormed the tarmac yesterday in an attempt to flee the taliban. you can see these images in the satellite. the spokesperson from u.n. calling for all aid to help support afghans. they're expected to recommend covid covid booster shots for most in the u.s. eight months after a second dose and only apply to those that have gotten the two-shot pfizer or moderna vaccine the heavy rain and strong winds drenching some of the make-shift camps of those who lost their homes in saturday's earthquake meanwhile, tropical depression fred has moved north after dumping heavy rain, leaving neighborhood streets flooded more "squawk on the street" is back after this. you packed a record 1.1 trillion transistors into this chip

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it's been a year since the infamous "new york city is dead" oped, that even had seinfeld arguing new york will be back. here's more. >> reporter: with those words from seinfeld becoming mantra and marketing in new york. you can see behind me the soon-to-open jean storment he loves the op-ed so much, he wrapped his entire building in a giant version. the snapback into real estate helped them sell $100 millions in apartments in two months. the building sold out in six months that was half the time he expected

and at prepandemic prices with no price cuts. >> surprising, i think, to a lot of people. new york made a huge comeback, huge, huge comeback. i mean, we see it on the street, in the restaurant. not only real estate we see energy is big >> other indicators show a long road ahead mta ridership, still had the prepandemic level. restaurants are still about half prepandemic travel levels. and in the office side, there was 47 million square feet of empty office space just in midtown, at the start of this year rental rates for commercial space down about 9% from a year ago, which was already down. a year ago, 12% of new york city workers were now t is better but still only about 23%.

and the big question, guys, and for new york city's recovery, and for the commercial market, is how many have come back and for how long, starting in october, when the return to work truly starts >> it's curious because you look at what's gone on with rent prices but then if people aren't, you know, in the offices physically, you have to wonder how sustainable the rent prices are if people, ultimately, won't need to go back to offices as they once were so, is that a key barometer we should bewatching for? >> reporter: absolutely. rrs we have a lot of people back in the city but there's still about 8,000 empty rental units the vacancy rate is still about two to three times the normal rate and that is all because return-to-work is an open question

the other side is because of the tax base the most important source of tax revenue is property taxes. some is residential and large part is commercial we we've already seen tax rates come down about 10%. if they truly are hybrid and not as many are coming back to work, will you need less and you'll get it on the tax side, as well as the beating of heart business in midtown, that relies on the flow of people in and out of the city each day >> do we know how many people moved out of the city in the last year and a half >> reporter: you know, morgan, that is the big question as well we don't we have gps tracking data from cell phones, which tells us about 600,000 people left. we don't know if they moved, we have mail forwarding that shows

hundreds of thousands left but they could reforward back. we have census data showing the population grew over the last ten years but no reliable recent data on how many left or come back that's why we have to look at other indicators, like real estate and commercial office space. >> you know william cowan has a great oped in wall street. he employs, at least financial service workers to get back in the office but i guess it's going to be interesting to see how new york survives x banks, right? because hybrid has changed everything >> we've paid so much attention to what j.p. morgan and goldman sacks are doing and they're clearly mandating back to work because that's such a client-intensive, intense business and culture that you need to be back to work.

but all the lawfirms, advisory firms in new york that are smaller, from what i'm gathering, are at least going to a hybrid, if not fully remote. you're right we're going to have to see -- it's easy to discredit when it comes to big banks but all the other companies in manhattan would have to wait until october and beyond to see how it evolves and it will evolve >> appreciate that what a story and a comment on the year anniversary, when people really did thing this was going to be the end of the city, in a lot of ways >> i feel that's been said so many times over the decades and it always comes back well, after the break, the spac i think you're going to like it here. umm, why is everyone...

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welcome back digital investment platform, bit panda now valued at $4.1 billion this, after it raised $263 million in funding, led by the venture capitol firm, cofounded by peter steel joining us, bitpanda cofounders and ceos good morning to you both congradlations on the latest funding round. what will this capital go towards? >> hi. it will go, very boring answer, into expansion but it's true on the product side, expangsz.

so, we're working many different things at the same time and we're working at expansion into european markets the boring but true answer >> and talk to me about the bitpanda platform, perhaps best known for the cryptotrading antibiotic assets and you've expanded to precious metals and stocks and parts of stocks as well are you looking to take on robinhood here >> hello so, yes, exactly we're trying to simplify investing. we want to bring the topic of investing to everybody in europe and, in the future, in the whole world. and it's not taking on certain companies because, in europe, for example, the investment rate of usual people is super low, right? so, we're trying to convert really low investors in the market and giving them the best

services to start to reenter stocks and other crypto. >> robinhood noted they're expecting a decline in revenue because they expect the interest, with regard to crypto currency to decline, at least in the n near term. are you expecting the same to be true on your platform as well, and how did that discussion go forward with the recent investors in the latest round? >> to everybody new in the crypto area, all companies, welcome to the crypto space. that's normal. so, it's a normal up and down. you have markets where it's trending down, we call internally the building phase. now you have time to build the stock. and then you have the bull run, firefighting and keeping everything alive everything is very extreme in crypto space but that's normal. and it's like the third one we do together with them.

they're in for the long run. they know the inside out of the industry that's not an issue. >> looks like the company's been profitable a number of years is this payment for order flow is that the basis of the model here or something else >> so, exactly we always try to have our business being profitable. so, for five years our economics already working in our favor and on the stocks, we're not using order flow we're actually trying to have a very fair model with the customers. so, we decided to have a super low spread so it's always guaranteed pricing for the users. and we're not selling the data, we're not selling the auto flow. so, we can guarantee their orders are executed in the best price available in the market with a super low spread on top of it. >> so how much of it is crypto

currencies, verses stocks and precious metals, especially when we hear so many compares to things like gold do you see a lot of cross pollination in terms of activity >> if you ask me the question in, say, three months, half a year from now, it's a different answer but for now, we're new to the game and completely new for europe. and this is why our service is still in beta and we're still -- it's not final product so, in a few months, it will look completely differently. therefore, the answer is clear currently our revenues are, by far, mostly done by crypto still. this is our bread and better and something we're still investing in >> i just wanted to follow up on something you mentioned with regard to payment for order flow you said you wanted to be more fair to your customer base, and therefore, you charge a spread

have you gotten the sense that customers are willing and would rather pay a spread to trade than rely on payment for order flow, commission-free trading? >> i think it's air s a differe issue. people want to know what they're paying for and how much they're getting in the charge. if you're submitting your order in the system and only after that it's the price, you don't know what's happening in the meantime we always want to give you a guaranteed price and order guarantees so, execution guarantee and that's impossible if you're selling the order flow and have some big funds, then basically try togive you any price that' basically a disadvantage of the customers. so -- >> may i just add something here i also think, not only on the

customer side, but the regulatory side. you always see in europe, regulators that have a strong opinion against auto flow. they enforce best execution. others say, yeah, it's a good area i think when more retail users are entering the market, i think it will get stricter and therefore, be on thome protectie side for the customers >> interesting to wrap up, i realize the company is growing rapidly so, you have plans to expand to other markets, looking to go public yourselfs >> so, we are using the money to fund our growth path we're currently on we're opening offices all over europe we have quite the lot of head count that is still to be hired. we are now getting really quality people into the company. and it is really a very gradual move in the next years we're expanding a lot. also the product offering will

get a lot deeper, basically on all fronts so this will be an exciting journey. and we are super happy to have our investors on board that will help us on this regard >> great, paul and eric, thank you for joining us today. >> thank you very much have a great day >> chinese tech names some of the biggest laggards in today's session after regulators once again issue some new rules for the sector look at tencent, baba, jd.com, we'll talk about where things might be going from here next on "techcheck." w dn t ck doisow290. protect your pet this flea and tick season with chewy.

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welcome back to "squawk on the street." markets are lower with the dow and s&p 500 retreating from record highs the outperformer is healthcare gains in covid related companies like moderna, pfizer, regeneron are among the sectors best performers keep an eye on shares of organat t. they spun off from fpharma giant

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welcome back to "squawk on the street." more controversy surrounding bill ackman's spac with a new lawsuit claiming it is not really a spac. first let's take a step back here this company known as pershing square taunting holdings raised more cash for a blank check vehicle looking to make an acquisition. a few months ago it aimed to tie up with universal music group to buy 10% of the company that raised eyebrows at the s.e.c. and ackman dropped the deal the lawsuit filed yesterday alleges that taunting should be rendered as an investment company rather than an operating company and therefore should be regulated under the investment company act of 1940. the claim says that an investment company is one where the primary business is

investigating in securities and investing in securities is basically the only thing that psth has ever done as such the lawsuit says that the defendant's decision to avoid registering the company as an investment company has allowed them to use their positions of control to extract compensation from psth in forms and amounts that violate federal law. the case filed in the u.s. district court for the southern district of new york seeking the court to reclassify the spac as an investment company. in a statement to cnbc, they said it believes the litigation is without merit, noting the complaint bases its allegations on the fact that psth owns treasuries and money market fund, as do all other spacs while they are in the process of seeking an initial business combination. firm said it never held investment securities that would require it to be registered under the act and does not intend to do so in the future. >> so we only got a couple

seconds left here. but is the takeaway that whatever happens with this suit that it could have ramifications more broadly for spacs in gen general. >> i think that's one read so that's i think the key question mark. >> yeah. even as we have another spac deal close with spire, the latest spac to start trading that does it for us on "squawk on the street. "techcheck" starts now good tuesday morning welcome to "techcheck. i'm carl quintanilla with deirdre bosa new rules in china saying tech stocks in china lower again. it is -- is it time to join the hedge funds and exit that trade? plus, the latest on