yesterday after the rough session on tuesday we're in the middle of something. why? fed minutes signaling the potential for tapering asset purchases before the end of the year is rising oh, no the fed might actually get out at some point. robinhood posting strong revenue gains thanks to the surge in crypto trading. also warning about the trading slowdown on the platforms. that is driving the stock lower in the pre-market. the white house unveiling the plans for vaccine booster shots for all. will a third dose soon be a requirement for getting workers back to the office it is thursday, august 19th, 2021 "squawk box" begins right now.

good morning welcome to "squawk box" here on cnbc i'm andrew ross sorkin with joe kernen becky is off today joseph, just the boys today. we have a lot going on >> the entire world covered between the two of us. >> we will try >> the new york types. we got everybody covered you know what i mean what happened to the restaurant guys, andrew now they're suing? i thought they were all going to go along with that it's complicated we can't count on anybody. >> we will talk about masking in new york and mea culpa about new yorkers. >> how about the w.h.o.? mad we are giving a third shot we develop it and give it to everyone and we still get in trouble. >> we'll hit all of the topics

and so much more the fireworks will begin we will talk about the fireworks and the markets. the dow coming off the biggest daily loss in nearly a month falling 383 points just over 1% s&p falling by more than 1%. nasdaq falling by just under 1%. the declines coming after the fed minutes showed the federal reserve began making plans, as joe said at the top, to taper monthly bond purchases before the end of the year and the market getting spooked by all of it let's show you the market and where it is right now. three and a half hours before the market is set to open. if we did so now y, dow would close down and nasdaq down 70 points. also show you treasury yields moving a bit based on this news. 10-year note at 1.233. the price of crude

if you want to buy a barrel of wti, you can do it right now at $63.30 joe, the other thing is everyone says we taper, taper, taper. the other thing i'm curious about is what you think job growth looked like this month? is that number going to be weak? if that number is weak, people say no i'm not sure everything is baked into the cake yet. >> reversion, regression after the job numbers last month would not be surprissurprising that was a blowout if it was a little bit less, i don't know if you say that means we're headed back. you know, i was kidding about us with vaccines. i got one the day i was able to and showed up the next time and hugged the people. to take that off the table

the horrible hospitalizations and ventilators? to take that off the table is a no-brainer to me i would give a third one give it to me. i think it might be october. andrew, what makes me disillusioned. you can have two double vaxxed people in close proximity. that doesn't mean everything's fine the one double vaxxed person could have an a asymptomatic case and they bring it home to somebody. >> we know that. it hasn't happened to us, but we know people who have been outdoors two people outdoors. double vaxxed. got it then gave it to other people which is extraordinary >> maybe they didn't get it from each other maybe un-vaxxed people

>> no. >> everyone was vaxxed and someone gave it to someone else? >> two people double vaxxed. breakthrough case and didn't know it. that breakthrough case to the vaxxed that person got it that person had children the children got it. i think it breaks when children get the vaccine and i think when you feel comfortable that older people who have the third shot you need to take the hospitali hospitalization and death off the table. if that is taken off the table, then i think we'll have to go about our lives and just assume we're going to get this along the way, but maybe it will not lead to death. i tell you in most of cases of the people i told you about, they did not have terrible

outcomes one oddly got regeneron for other reasons. there wasn't a case of demonstrable cases of hospitalization or death there are still other variants floating around. if there are not enough people who are not vaccinated, that is a challenge. >> i'm seeing at least there are claims that people that have had covid have had better protection with the vaxx. i heard the opposite by dr. scott of scott. we'll have him on later today. yesterday, people thought i was going like that to him this person was in my ear saying okay okay, that's your last question. i said i'll ask a ten-second

question and a follow-up the person was talking dr. scott may have looked at the video. that's not who i was talking about. president biden making announcements in the fight against the delta variant. he offered plans of third shots to adults who received pfizer or moderna, the two mrna vaccines eight months after the second dose he vowed to use his authority and legal action to deter states from banning universal masking in classrooms and the news comes as the cdc released three studies showing reduced protections from the vaccine against mild and moderate covid illness. it is unclear if the decline in efficacy came from lack of precautions like masks or the rise of delta variant. the study will show the vaccines

remain highly effective against the worst outcomes of hospitalizations or death. you have the journal with a piece. the journal is vacinista they are pushing back against the w.h.o. three cheers for the biden administration for ignoring the w.h.o. vaccine shaming vaccine nationalists here we are thinking about getting a third and you can never do anything right. >> it is such a challenging situation to figure out the right answer i like to think getting a third, especially the people who need to get a third right now, should be a priority. the question is how can we make so much of this? this is back to the whole ip discussion with intellectual

property and pfizer and moderna open it up and manufacture through others i would like to see us manufacture more of it more quickly. i don't know how you do that and compel >> you want to manufacture a high quality vaccine that is what these guys are doing regardless of protecting intellectual property. they can do it better. probably get more and allowing them to do it instead of trying to farm it out let's not forget how quickly we developed this pfizer and moderna i don't know it's really great that the technology was around and ready to be adapted to this. we all take it for granted at this point deaths are down. worst-case scenario is off the table for many people. coming up, futures right now. tuesday wasn't great yesterday was 380. at one point over 300 down that has come back a little.

it seems to be a little shift, perhaps, based on what the fed said we are getting ready for retail reports and claims that could move stocks in the next few hours plus, robinhood shares plunging after the slowdown in trading on the app we will have an interview with the cfo. >> announcer: this cnbc program is sponsored by truist wealth we focus on person to person growth

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welcome back time for the "squawk planner." we will get the latest -- excuse me blah, blah, blah we will get the jobless claims at 8:30. first time filings to fall to 365,000. that was a tongue twister. we will hear from macy's and estee lauder and petco and kohl's coming up we with ll talk to ron coughlin coming up. and make sure you see "cnbc

evolve." courtney regan will talk about the staffing shortages and so much more. it will be fascinating to listen to that. register at cnbc.co cnbc.com/eventsevolve. >> andrew, gordan johnson will be on. chill. chill. talk it's just words. can't we just talk, andrew >> it is challenging to say things that are negative about tesla. the truth is and saying negative things about tesla, by the way, have generally been wrong and right at the same time you can make the comments that are accurate and truth, but not move the stock

>> right i said if gordon was managing money, he would have been broke 20 times i already said that. i still like listening to him. he is very smart who knows with a lot of this what finally happens nobody knows munster seems bullish. cathie wood said for a while, we would have flying autonomous taxis by 2022. >> i don't know about flying ones autonomous taxis by 2020 >> i'm waiting for the flying. you think those might be dangerous? i don't know >> the flying ones gravity never goes away. >> that is hard to overcome. you know who else we have on today? we also have jonathan fighting

with o'leary are you ready for that >> i told you. this is fireworks. >> that's going to be good i like those gentlemen >> get your popcorn. robinhood out with second quarter results after the bell last night revenue doubled, but the stock falling after the company washed of the slowdown of trading activity which would hit revenue in the current quarter cryptocurrency was half of the transaction base revenue you know which your mic's off dogecoin oh, here it is anticipating more than 60% of dogecoin trade. that's usustainable. the cfo sat down with kate rooney >> you saw a shift of interest

in q2. he equity was strong in q1. we saw the strength in crypto. we want to be there for customers no matter where their interest we will see vulnerable over time >> warnick said the term meme stock doesn't apply to robinhood. more of the interview. i think he says it doesn't apply to robinhood stock certainly, j.j. kinahan will have more. i love robinhood i love the democratization you cannot say anything about the apes they come up with some horrible

ill illiteration is that sustainable revenue growth when the two things you are hanging your hat on? >> you know, the one thing is robinhood has gotten people excited about the markets. that is good for everybody they talk about the quarter may be slower. in the broker business, this is slower quarter i think what one of the things good for them and industry is some other story that helped get people interested in the market again. you and andrew were talking at the top of the show of the swirl going on currently that helps volatility well, robinhood has a lot of folks who trade options. option traders love volatility if we he start to see sell off,u may see people interested in a different way. the meme stock story has been a

strange one all year long. we are all trying to figure that one out, joe, in terms of the spark that lights that suddenly has people interested in trading those in a different way that's just very, very difficult topredict. with that, i think, like every brokerage firm, you will see that those are the things you have to look further down the road. >> looking at it from the devil's advocate point of view i don't know whether this is fluff or if nfts are fluff or if the market is overvalued because of the fed or i don't know if cryptocurrency is overvalued i think the fed might taper some day. you also might not get another stimulus check that apparently some of that money was going into some of the accounts.

take all that away what if we got into a market that wasn't quite as exciting that was longer than a week or two? i'm not thinking about 1974 or anything like that or '87. what if we got into the market that doesn't go up every day what are the prospects and some of the areas of fluff? what is the prospect you think they could attract people to buy puts play the down side of the market at robinhood >> you know, volatility effects option across the board. calls in puts and go up together and go down together with that, voluatility gives people an opportunity in dow downward markets to do things with strategies that you don't do with the markets which are boring overall if you knew what was the key,

you would not be here at 6:00 a.m. you would be on a yacht. >> i would be here a dinghy, maybe. go ahead >> i'm sorry what i was going to say is we are in an environment, though, where let's face it, you guys lead off every single day or somewhere in the first couple statements of your day is about the fed. there's no reason in my opinion to believe that will go away at least for the rest of the year you may get more indications next week at jackson hole, but that will add more volatility to the market the one thing i find funny is everybody wants to talk about the bear case. we are off all-time highs. natural market forces should have sell offs in there. we haven't seen any sell off of

huge proportion or small percentage of 1% or 2% in quite a while. i think there is this expected upward movement a little bit if you look at what the spx. the s&p 500 cash, one standard deviation move unexpected move today is $38 we are down more than that you mentioned at the top we were down more. you have to put this in perspective of the fact that if spx is down $38 today, that should be the expected move. >> vix is up we didn't talk about that. vix was 15 not long ago. we will see if that does anything j.j., you are in chicago >> yes, sir. >> you say environment like it sounded like hire.

that is my rick santelli. >> i love rick i have known rick a long time. great guy. see you, joe >> andrew. when we come back, pointing to steep losses. we'll talk about it with the fed taper timeline and we'll talk about that straight ahead. as we head to break, energy stocks falling as crude prices tumble "squawk box" returns right after this >> announcer: planner is brought to you by workday. the system for finance, hr and planning good to see all of you, yeah! why is jerry so... popular? it's been like this ever since we started using workday. what do you mean? it makes it easier to develop great relationships with our suppliers. now everyone, everywhere loves jerry. they sure do. they do. they really do. mmhmm. workday.

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management carla, before we get into that, i want to talk about what's going on in the markets this morning. the dow off 240 points largely because of the view the fed is accelerating the taper timeline and what it could mean for the vc space what is your take on where we are with the fed and what may happen >> thank you, andrew the market hates two things. uncertainty and surprise the suggest that the timeline is being moved up when there is at volatility, it is risking the investor portfolio. what is going on in the private markets, no question, people would be a little more cautious when you have a volatuatile pubc market it will make you cautious with the profile and investing

activity >> have you found with conversations with the vc founders and private equity funds and others you talked to that they are saying, it will cost more to get leverage in this space if that is what we are going to do or the exit could be tougher maybe the price will come down by the way, you can throw taxes into that in this calendar year. i don't know if you think that's the case it may not be a calendar year, but maybe into next? >> the conversations i have had with vcs in the past few months, they turn to their portfolios and decide they will keep dry pour powder they wanted to have capital available for that from that perspective, there is volatility in the public markets which means they hold on to the companies. that's going to have new in

investment if they have to continue to invest >> in your sense, and this speaks to the new cohort that you are introducing right now. is your sense is there a lot of innovation happening in the world right now in the midst with the tail end of covid, but it still persists or is this a lot of treading water? >> andrew, i don't think there is a lot of treading water we had two of the biggest application classes we have seen since the inception of the lab in 2017. you and i talked about it before there is exceptional appetite in interest among millennials and zers if you look at the companies that applied and we brought into the cohort, the sithings have bn

fintech and retail and what you see going on in the broader economy. i feel a lot of innovation transpired over the last 18 or so months we have been in the pro protocol >> are you seeing the start-ups getting into the issue remote work and what start-ups look like today and if people are starting and managing companies all virtually? >> with the spector lab, we pivoted immediately. we conducted the lab virtually we started the cohort with the intention as we get into the fall to have periods where we he will be able to bring the cohort together it was amazing to maintain and drive community even though we weren't in the same place. i believe the companies because the founders tend to know each other. they are finding ways to be in

the same place with respect to driving their business and getting customer sales, a lot of that is happening virtually. >> carla, it sais always good t see you. we wish you luck we hope to bring them on tv at some point to talk about their businesses thank you. >> i would love to do that thank you, andrew. >> hoping to do it in person we keep extending out. >> i'm optimistic. hopefully we will. >> talk to you soon. thanks >> that's what the next segment is about. the responsibility of employers as we bring workers back to offices. should they provide n-95 masks now that booster shots are authorized will workers have to show proof of a third shot? we dig into those questions.

here is a look at the winners and losers from the s&p 500 yesterday. >> announcer: executive edge is sponsored by at&t business our people and network will help keep you connected let's take care of business. okay, imagine this... your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown, your sales rep lisa has to send some files, asap! so basically i can pick the right plan for each employee... yeah i should've just led with that... with at&t business... you can pick the best plan for each employee and only pay for the features they need.

i think you're going to like it here. umm, why is everyone... 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. ♪ >> announcer: at work is brought to you by workday. the system for finance, hr and pla planning do the right thing for your employees, consumers and your businesses let's remember the key to keeping our economy strong is to get people vaccinated and at work >> that was president biden yesterday on the private sector's responsibility in fighting the spread of covid-19. the administration is calling for a third shot this fall for awfll adults who received the to shot regimen and complicating return to work plans nation wide. let's bring in tom nimble with

lasalle network. and sedonne neely. author of the remote work revolution i want to talk to tsedal first you have five mistakes that bosses will make i found similarities in all five the all or nothing approach we are taking with this it used to be one way and totally going back to the way it used to be or totally adopt all of the new stuff we have done in the pandemic neither one will be the case >> that's exactly right. we are at a time in the world where our routines and workplaces have been completely up ended organizations and leaders are trying to figure out how do we make this predictable and stable some of the mistakes they can make is not listening to workers

whosay they want agency and flexibility and like some remote work and treating them like children making mistakes and not training people now that we're looking at hybrid places, we need to upscale we all need to level up. with that, will come different outcomes >> one of the -- one that spoke to me is reinforcing tech exha exhaustion there is video conferencing stuff to do although you are in the office people are going to say no you are sick of those things you don't necessarily want to keep everything that you learn tho how to do during the pandemic. >> tech exhaustion digital tools used correctly

should never exist we match the right tools for the right work video conferencing will continue to be convening tools within organizations. if we don't recalibrate and really think through how we use technology and how often we use them, we are reproducing the things that have been giving us headaches and slurring our words. >> in-person long meetings are bad enough do it on a video conference. i need more money to do that tom, i think she warns about going back to the butts in seat mentality. butts in seat metric she explains it where a lot of corporate managers look around and need to see a crowded area

to measure success you still have butts in seats at 9:00 at night. that is how you are succeeding you might be that guy. >> let's not go overboard. i don't see harvard switching to 100% home-schooling. when kids want to pay or take out loans, $80,000 a year, we want to be together and have the experience when the company pays the employees, the employees say i i don't want to come in. i want to work from home you can't have your cake and eat it to. you can't say you want to learn all together, that is a healthy learning experience. it is the same thing in the office collaboration and learning i agree with the professor it doesn't have to be all or nothing. there is long-term effect are long-term remote work. it is elasticizing the wealth

gap. there are a lot of negatives from the long-term remote work that people have not talked about. >> how do we get there a third vaccine? will another booster help or that is how we inn troed the segment. we want to have the option to bringing people back >> first off, i'm more optimistic than tom here about the future of work and the fact that we are actually much more hybrid than people perceive. in terms of vaccines, the gardner group conducted a survey with hr leaders across the companies and found that 760% of employees are very worried about covid and transmission from unvaccinated employees 26% say they will refuse to go back if they don't feel safe

companies have to contend with this issue if you mandate vaccines, you alienate those who are not interested in vaccinations today. on the other hand, if you don't take a leadership role with the vaccines, you will alienate all of those who are very worried and will refuse to come in at the same time, many families, 50 million around the country, have children under the age of 12 people are very worried about those things as well this is where work arrangements that are flexible and mandating or not mandating or mask rules have to be at the forefront of leaders' minds. >> tom, what do you think? you want to do that? require that booster >> number one, i'm optimistic about the country and work force and record lows on unemployment. don't mistake my realism for

pessimism. i think we should have vaccines. the definition of the inmates running the asylum is similar to what biden said. i love gardner polls predicted that hillary clinton beat donald trump. we cannot rely on polls. i'm on the ground with people going for jobs at staff level positions and call centers and marketing and hr and managing and directors from small and medium size businesses people need the collaboration. we have the two intersections of the seclusion and being alone and wanting all these things and what companies have to do is what they feel isright we have a choice in this country. you can go work for any company that will hire you if you are marketable believe me when i say this if you have people working remotely, it will be terrible for the average worker

they will not be pushed or challenged by working in the same room with peers it will spread the wage gap. >> i like when people shake their head i like to hear more tsedal tom, she's at the business school at har revard. >> i have taken a couple of classes there. i've been to harvard >> there is harvard and harvard business school. don't paint her in that picture. >> she is smarter than i'll ever be i'm just a working guy >> i didn't know i could start an argument. it was a good pairing. we'll have you back on thanks tom and professor. coming up, when we return, chinese internet stocks plunging now down 10% in the last week

amid the government crackdown on the sector a top citigroup banker sees opportunity in china he will talk to us and explain that is straight ahead a quick look at futures. we are down on the dow close to 300 points down 290. nasdaq opening off 94. s&p 500 off 34 points. we'll talk about what the fed will do. "squawk" returns after this. >> announcer: currency check is res sponsored by interactive brokers.

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one of the smallest in the 500 getting a lot of attention because of the recent market volatility that utility sector is the best performing in the s&p on the month to date basis. it is up about 4% during that span if you look at the last year to date period, the s&p is out performing the utility sector in the last ten years trended in line with the market you can see on the right side of the screen, that white line is the forward price to earnings y ratio he oof the s&p there is a reason traders are more focused on the utilities trade. as for the valuations on the forward basis. the price today versus earnings he expectation for the coming year.

the price at nextera at 34 times. the lowest valuation in the group from edison and nrg and exelon trading 13 times or 14 times next year. keep an eye on the utility sector especially with the market volatility picks up. that is the focus for this month. keep it here we have more "squawk box" coming up after this commercial break >> announcer: sector-nomics is sponsored by spdr etfs

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welcome back an update on china's crack down. tencent now down 30% the company warns more regulations likely coming. but it can confidently be client check this out, alibaba and

others falling 10% it is like going back in a time machine you can buy them at the price they were in 2019. the chairman of the international client's group at citi we want to talk spacs and i want to talk to you about china what do you think is happening there? do you think there's a business opportunity to be had or is it over >> good morning, andrew and thanks for the time. china is definitely not over it is a massive marketplace. from an investment standpoint, they'll want to tap what they give into them that said, it will take a while

until we see regulatory clarity. as we've seen happen, as we've pointed out with alibaba didi regulatory is needed so people understand what is happening the indian ipo market has exploded to a certain extent, the investor market has exploded here >> does that mean, to the extent there are u.s. companies that call you for advice about mergers and acquisitions and you say can't buy into china right now. these are the moments during when there is no clarity when you typically want to buy, if you can, are you telling people to stay away right now >> i think from an m&a standpoint and an investor's standpoint, companies are waiting to see

there are some small private investors going on but they'll wait and see as you pointed out, if you can buy alibaba going back three or four years that would be attractive >> you and i talked spacs. it was a height of the market, then a plunge. earlier this week, we were talking about the lawsuit brought against bill ackman raising questions about spacs all over again >> the market now is over 400. the product is going to be around

those numbers are unsustainable but as a method of going to market, those are something people will look at. >> since you are the baro meter of confidence in the corner office in my view, where do you think we are the market is at all-time highs. usually it is the worst time to buy but when people feel like they have the worst mojo >> the fed has indicated they'll be pulling back here i think you have the inflation on the market and priced to perfection the m&a market continues to be robust people are trying to be cautious going forward as we hopefully have a stabilized world. >> okay.

always good to see you >> thank you coming up, we talked about this interview social media showdown. we'll dig into the taliban's use of social media. they took control of afghanistan. a lively debate is just ahead between those two gentlemen. we are coming right back a fund that invests in the innovators of the nasdaq-100 like you become an agent of innovation with invesco qqq

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scaling back the easy money policy before the year wraps futures are down tesla getting ready to update measures into the ai initiative. will the government force sh shareholders to take their foot off the pedal. the taliban on social media. we'll debate it as the second hour of "squawk box" begins right now.

good morning becky is off today equity futures down over 200 and change but it is from all-time highs, andrew. so on a percentage basis. >> we have a lot of action let's look at this morning's biggest movers we'll head over to dom dom on the wall. >> i've moved from the wall to the telestrator right now. there is a general risk aversion trades that happening with the overall markets. one of the places in the predominant move here.

specifically the banks and tied to the move over in the interest rates. the gap in the long and short-term yields. the flattening of that yield curve is a down side jp morgan chase off 1.5% almost 2% losses for wells fargo and investment banking as well also watch ha is happening with global caterpillar shares in the open boeing down and u.s. steel down as well. perhaps some infrastructure worries.

and chinese internet stock tencent and the medium term trend has been down significantly. alibaba off 3.5% baidu, jd.com, pinduoduo and others off 4% right now. the government a big part of that right now back to you. you. >> companies earning an adjusted $1.29 a share. the company reinstating and announcing $500 million buy back take a look the chairman will be joining us in the next hour to

discuss the world of retail and what's happening, joe. >> to put a little meat on that bone did you hear what you said $1.29. the estimate was $19 cents >> huge. >> we said they raised guidance. they raised $3.41 to $3.75 i'm not good at math isn't that like double $1.71 like double to $3? i don'tknow if we should gloss over how unbelievable that is. that's a big lead beat >> big beat. >> we didn't know if people were going to buy clothes maybe this was the quarter people thought they were going

to go out of peacock i'm not talking streaming. i'm talking peacocking because they were going to go out to the office and to dinner >> you do that you are a proud, proud peacock you've got the thing here every day. >> peacock >> you do. i said poor stock. it was 5 and now back to 19. it was 60 when it was really going. i'm trying to think of what bird first signs of the delta variant showing up in the focus of the cnbc road back barometer

who comes up with that is that you? >> the junior economics reporter, joe. >> how many are thereof those? you've got like a staff of tens of dozens? >> officially or in my mind? officially, there are none in my brain, i have six or seven people working for me on a daily basis. this unfortunately, joe, is a road backward. the affects of the delta variant. they are showing up in the high frequency reports. the affect has been modest so far flattening out but outright declines in others the three things we are watching open table reservations. they had exceeded their 2019 level in june. card tracker for in store

spending 3.9% below the january 2020 level. it had made progress to catching up the gap is now widened and ukg shift work for employment slipped more this august than last august. let's look here. it looks like most of the weakness and data stems from weakness in the south and southeast where the delta variant has exploded take a look at open table in florida and texas where they've declined sharply they are flatter in california and new york that suggests a delta connection there have been a steady increase of spending in store according to the credit card data but the gap is once again widening with card notpresent.

they are down more sharply the spread of fear and i think you need an epidemiologist and psychologist people are afraid and tired of being afraid too >> we were talking about that some hybrid model is what we are talking about. we never go back to the way it was. the point was made, if you do go back, please don't mix more zoom

calls while you are back bad enough thank you for that road back if you do go back to stores like we saw with home depot and target and you go back to macy's you are talking clothes. >> apparel, joe. has been doing pretty good >> if you do go back, online, you don't order your bill blass suits. what's your favorite >> i still like a great ralph lauren suit. >> so you don't order those online >> no. so you would think macy's would

not be as many orders online maybe it makes sense for macy's. >> my question for steve, if the money is moving back into clothing and people are still buying at home depot, if you believe that, does that mean they are buying less tech. there was a whole period where people were saying i'm not buying fashion, i'm buying a phone. what do you think? >> i think -- the way this tech stuff works. it's kind of cyclical, right you come out with a new iphone and the electronics portion of retail surges up people bought a lot of tech for their home they maybe had some threadbare clothing they were wearing it was time to replace some of that stuff

services is the bulk of spending by consumers i know we've got to wrap here but i'm on a rant. we know what happened there why the retail report shares fell. there was a shift in services. i'm not worried are people not going to macy's or buy from amazon it is are they not going to restaurants or concerts and that whole service sector thing that was down so much that's what needs to come back to make the economy right. that's what i'm most worried about with the delta variant >> thank you for that. that's actually important. speaking of retail, amazon

planning to open several large locations in the u.s. that will operate like department stores saying the first location is expected in ohio and california. they will be about 30,000 square feet, which are smaller than most department stores which average about 100,000. using the format to expand its reach in clothing, household items, electronics and other areas. coming up, amid tesla's probe to auto pilot, we'll preview the event and take a quick check on markets down all morning dow off, s&p off about 300 points we are back after this

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tesla shares having a rough week after the nhtsa announced a look into operations buttoday is ai today joining us now managing partner at loop and jordan johnson, ceo and founder.

i talked about this interview. gene is channelling donald rumsfeld who says there are things you know. things you don't know and things you don't know you don't know. i got to start with this and then i'm going to go hide. this is how you start. this is unbelievable and get ready for some e-mails i'm going to give out your address. the last five tesla days were littered with false promises that never came true and in many cases outright lies and deception and then you go over the history. can you talk about your premise there and some of those days that back up what i just said. >> yes, thanks for having me on. my question is why should we believe anything that will be said at ai day when all the prior days were complete

fabrication. battery day, they introduced the cell structure no battery introduced. they said they'd introduce a 500 battery cell and the semi-introduced in 2017 and the cyber truck which they've recently delayed a lot of promises made, none kept elon musk said they'd be out of level five autonomy and robo taxis on the road in 2020. we know there are none on the road he was saying that to investors, la lawyers were telling california dmv they are at level two. mit reviewed and referred to that as, quote, theater. best of all, solar roof day.

a fake solar panel on the set of desperate housewives, a fake city which they used there is an on going lawsuit that alleges fraud was used. promises made that argue they know they can't meet, given that history, autonomy day two is probably something similar >> what do you want to respond to any of the past or you may optimistic ly hear things that people aren't expecting? why don't you go into the bullish case of things you might hear >> maybe a little on gordon's comments the company has often given expectations that they haven't met. i think that is a statement of

fact however, there is truth to what they are doing and i would describe it as this. it is not pure fabrication this is real technology. ultimately, the company does have a history of being late years late but ultimately delivering on the promises of what these events have held. time will tell the truth is somewhere in between. i do believe that tesla's success and market share is decreasing several fold greater than the closest competitor in the u.s. that does speak that this is real so, joe, to quickly answer your question today is essentially a sequel to autonomy day in 2019 this is important because autonomy is the substance of future vehicles. i suspect they'll say it is two

years away or five years away. eventually all cars will be autonomous it is important to note tesla is having an autonomy day and we don't hear that from ford and gm and tesla should be rewarded >> i'll push back on this. in the prose of covid, tesla was praised for saying they'd make ventilators. ford and gm did make ventilators. that is a real-life example of help american taxpayers have paid te tesla millions

what nikola did with the fake orders they brought them out at stock and look where they are today. they've been selling full self-drive since 2016. $20,000 a pop. it is still vapor wear that doesn't exist. i think making these promises and you can't look past this and say he always meets his promises he doesn't >> i think he does we can look at some features now. it's a different conference of how they market this the highway, and sum ones. i think they have advanced on top of that we look at the details and the sub stan of the car.

the reason why they do well in market share you can debate what the trend is and why they've done well, there is a strong value for the consumers investors have the elan translator going. >> thank you i've gotten tweets from you before what is it >> g johnson 213 >> i will say the market share in china has gone from 17 to

down to say they are gaining market share, we don't know where they are coming from. total sales were up nearly 100%. when you say they are gaining market share, i don't know what you are referring to >> we have to go he's a brave man, is he not? >> you've got to love him. fearless like us. we are not thin skinned. >> i cower in the corner, as you know >> the weird thing about tesla is, the teslarians think if you don't like the stock, they go crazy. the teslaxers might be worst make up your minds, you clouds thank you. ufc in the sky

the numbers of unruly passengers skyrocketing in 2021 and joining us with some staggering numbers in the meantime, check out the numbers. dow across the board, triple digits s&p 500 looking to open down about 39 points. we are back in a moment. time for today's aflac trivia question, when did amazon e sw wn cti profit? thanerheweonnue. go aflac!!! what the heck, troy - that's not your kid! the aflac duck is just covering for sophie. same way he got me money to help cover her hospital bill when my health insurance didn't pay for all of it. but this isn't fair! that's exactly what i said! but then i learned health insurance isn't even supposed to cover everything. wait...for real? for real real. luckily i had aflac. aflac!!! get help with expenses health insurance doesn't cover. go aflac!

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don't get mad. get e*trade and start trading today. when did amazon first turn a profit the answer, the fourth quarter of 2001. in that quarter, the stock jumped 81% the faa says fines levied against unruly passengers this year has topped $1 million phil joins us now with more.

we had an interesting discussion if you don't use duct tape cwhic sounds crazy you are up in the air and have someone you need to restrain, what do you use? >> let's talk the fines. the fines have hit a record high for 2021 these are fines the faa has levees against unruly passengers after they've acted up we've seen images like this repeatedly total fines topping $1 million new set of fines over $1 million. the top penalty was $45,000. with someone held on the ground

and then tried to put their head up the skirt of a flight attendant. 34 incidents in the latest group. 22 of those were because people refused to wear face masks remember, the tsa extended the face mask requirement for airplanes and airports through january 18 you look at airline stocks, passenger levels for august plateaued. we are down 22%. most believe this is probably the level we'll stay at through fall and the holidays. >> it seems drastic duct taping someone to a seat. >> sure it does. >> but after what they've done if they are running crazily through the cabin, i think

drastic measures are called for. i don't know how you just rule out something like that, joe do you have any idea >> no. i don't. i think flight crews are trying to handle it the best way possible you also have passengers who want to step in and get involved and assist you can say here are the rules for handling an unruly passenger. as they become more unruly looking at the list of alter indications, you've got to do something. >> duct tape seems i mention the scarey killer tie things you can't get out of those i don't know what you do i don't know you can't gently try to do something. you can't.

>> we should point out, all of the airlines put their crew through training when you get to the point, you have to be restrained, that's out the window that's what flight crews are frustrated with. >> we've talked about everything in this new world, right >> we are touching on everything all the hot button issues. still to come, the situation in afghanistan unravelling quickly and the taliban viewed as a terrorist association using social media should they do more to stop them that's the debate. >> the fed minutes indicating the central bank preparing for bond purchases at 1.230 right now the dow off about 300 points right now.

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the taliban testing social media and now facebook and twitter facing the question. are social media platforms being inconsistent here being that they banned the former u.s. president trump. joining us here. director of anti-defamation league and kevin o'leary, now the judge basically is what we should call you, mr. wonderful i'll start with you jonathan where are you at with this what do you think these social media platforms should do? what is the responsible thing to do >> it is a great question and the right one to be asking when

we've seen this terror organization take over an entire country. there is really no rational reason why twitter should be hosting the taliban or facebook or twitter or any of these they all have their own terms of defrs. they call them twitter rules, facebook community guidelines. terror organization that brutal eyes women and shouldn't be allowed to exploit technology to sanitize their own organizations. we should acknowledge. facebook has taken them off, youtube has and it fails logic why jack dorsey has failed to do so we've seen them step up and we

hope they continue to do this. >> you are on the other side of this >> i am. one man's terrorist is another man's freedom fighter. the truth is at the end of the day, it is probably more important to see what messaging is coming out of there so we can fight it i find it a very tricky slope to start deciding what messaging should get out and what shouldn't. i would rather for the sake of keeping our freedoms let it all out there. i've said this before, the cost of freedom of speech, the cost of allowing individuals to make their own personal decisions means that the lunatic fringe will always have a voice that's the price maybe it is 1 or 2% of the content buts that what you have

to live with when you make the freedom of what you look at or your family to see >> can i jump in here, talking about that freedom the freedom of choice of a corporation like facebook or twitter or google which owns youtube, to make that choice, how do you feel about that you've always been a free marketer >> i get your point. i agree with you they are private and can make their own decisions. let me pose a question to you. as you may know, i've invested in many veteran-run businesses they tend to do very well in setting goals and achieving them one of them recently called me up and said on the canceling of donald trump that was that man's commander and chief. he did multiple terms risking

his life in afghanistan. he cannot understand how it is possible an american citizen gets canceled permanently. that voice is erased it could be any senator or congressman or american citizen and yet the taliban that he was tasked to go fight speaks to him every day on twitter how can that be right? >> wow kevin, i never would have guessed you'd be making the kwwoke argument that one man's freedom fighter is another man's terrorist. i believe in the western mindset of the rights of women and the rights to pray how they choose there are lots of options on social media for the taliban

other than twitter if you are an elected official or terrorist, anyone who incites violence against others or this type of extremism, the companies have the right to choose not to put that on. when you are willing to do shark tank kandihar edition. because i believe in those veterans and their sacrifice and service, i am surprised you are making the argument for the mulahs there is always a fringe let's keep them on the fringe. on mainstream platforms, let's digify those who behave with a degree of decency. >> the problem is, i don't want

you deciding what i can see or not see. neither does that veteran. they are willing to take on the information and make their own decisions. that's the challenge these companies have when you start editing what i can see, i am not okay with that i would rather take in that data see what the enemy is doing and combat it. you can recall only a couple of years ago, they were recruiting on social media, far better than any other army was the taliban was getting people from europe to come fight with them because they were doing such a great job on social media. we should have been countering that on social media it's better to know what the enemy is doing than to ignore it than to shut it down and worse decide what an american can see and not see. that goes against a fundamental

right of democracy and you'll go down a slippery slope. i agree it is a huge debate. you never answered the question. what was the answer to that vet. why was his commander and chief shut down when the enemy isn't, why? >> i think they should shut down the enemy. i don't think they belong on twitter. i get what you say if you incite hate ed or cause violence, you shouldn't be doing that on a main platform. i think these companies are publishers just like cnbc has the right to have "squawk box" taliban edition, i think twitter has the right to make these decisions. put them on parlor, kevin.

put them on friendster they don't belong on facebook. i agree with mark zuckerberg there's a reason mark and cheryl are taking them down jack should do the same. they have the right to express their opinion -- they shouldn't have to publish their terrorist platform >> remember facebook is a global platform there are billions who don't agree with your point eof view. it is a social media >> they are private companies with share holders >> part of this is a business decision you are a big advertiser you've talked about the benefits

of facebook and instagram. most want to be in, quote, safe spaces do you want to have an advertisement appearing as if you might even support the taliban next to content from the taliban? that's the calculus you have to calculate if you are mark zuckerberg >> the fact is, facebook is my number one spend for all the bashing it takes, nobody cares while these issues are very important, i am also well aware. i can geolock my ads there are tools that avoid me advertising on the taliban page. i don't have to do that. these are very sophisticated platform people are not stupid. they look at what's going on on facebook and make their own

personal decisions >> have you had any contact about this >> we have asking twitter to basically apply the same standards to taliban that they do to david duke and spencer these are hard questions but this is easy if you promote the idea of chopping off the hand of thieves or forcing women to wear veils and forcing marriages to terrorist. they should call you mr. woke, i think our western values -- >> there is something we haven't thought of here. when you throw the light of transparency on what the taliban does these are horrific when you let social media expose them to the world, that pressures them to do what you

want, to stop doing that give women their rights and pressure saying what you are doing is wrong how you do that is on social media. shutting off their voice and not letting it be exposed to the rest of the world is a bad idea. that's my point. transparency can solve a lot of problems when people around the world use the platform to push back is my whole point >> please tell that to the families of the journalist that have been assassinated while they watch taliban sanitize their terror and watching the taliban against women. i come back to the argument of adam smith and capitalism. let the taliban tell the world their story somewhere else

it is not too hard >> i'm listening i come back with something similar to kevin that's putting one of these who truly are woke kevin is not woke. one of these truly woke people in charge of who can use their platform can have political consequences i don't care what you think about donald trump or january 6. maybe half the country that doesn't agree with the most hyperbolic blame with the former president, you are not allowing him to participate in the electoral process in 2022 or 2024 and you've got a guy sitting there keeping him off the view point of a billion people you don't have any worries the

media can silence someone in the political process because they say he's equal to the taliban. >> these companies have an extraordinary amount of authority more so than any elected government the difference definitely concerns me. i'm here to talk about the fact that taliban and their terror doesn't deserve to be on twitter. >> should they really be gaming the election they probably have preference. if $100,000 elected president trump in the first place because of facebook and russia, what is the point of keeping that off twitter 2022 and beyond? >> i don't know about that and russia if you violate the terms of

service whether cnbc or twitter, the publisher has the right to say they want your content on there or not >> it is a lot of power. the taliban and cutting off hands is one thing i don't know, there are guys who have been banned for questioning masks. i don't want to give anyone that power. >> which is why we think the companies need more transparency raising the question of ads against taliban content. we've seen companies like p&g, uni leaver find their brands flighted against white supremacy. transparency are good things for companies, consumers and the

country. >> kevin, 20 seconds >> more light. more transparency. i would open these platforms up for the cost of the ability to let the lunatic fringe have their voice. people are not stupid. they make their own decisions around the world they don't need anybody telling them what to see or what to do, they make that decision themselves that's what i'm really for >> appreciate it i think i'm with jonathan here my worry is that the lunatics will see the lunatic fringe and become lunatic that's one man's view for the day. talk to you soon very good, thought provoking conversation >> the aclu used to be something different. remember when lawyers represented terrorists and the aclu would come to their

defense. they've folded on this >> i don't know about that we'll have them cob comme back. coming up. petco. pets and the pandemic and later dr. scott gottlieb and boosters, the delta spread and what offices will look like this fall over $1.5 billion last y. that's decision tech. only from fidelity. we've got you taken care of, sgt. houston. thank you. that was fast! one call to usaa got her a tow, her claim paid... ...and even her grandpa's dog tags back. get a quote.

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ss. petco reported earnings. joining us now, petco ceo. i don't have time to find out where i saw it, it was an article about the effect of cuddling and petting your dog has on a person's well being it cracks me up. i don't know what it is. i don't know whether it works with cats, really. >> cat lovers would absolutely say it does. >> you love all your children. >> i get it. you sell catnip too. of the pandemic, one of the silver linings would you say is that more people have adopted, bought or just have pets

>> there were 10 million pets that came into households in 2020 and more in 21. i call it the fury innuity that will play out for years. frankly, i think pets helped americans get through this pandemic >> are you hit with any cost pressures with what we've seen in the supply chain? >> we've gotten some pricing passed on to us from vendors it is only about 20% of our skus we've seen no unit declines. we are navigating through that successfully >> some retailers that were moving more into online sales

with people going back into the stores and online sales. >> we love our model people absolutely came back to our pet care centers growing 17% in the quarter we had double digit online sales. if you look at the customer behavior, 39% of customers want to shop in an online fashion the other thing is that recurring revenue grew by 50%. revenue up 60% we are shifting more of our model to the current revenue and that bodes well from our current basis. >> my whole family are pet lovers i just got a request from someone very important in the family she would like to know what

about all this fresh food. refrigerated dog food. we are buying it now for pongo >> a lucky guy my guy has fish and sweet potatoes it is absolutely on fire we are the leading retailer for fresh and frozen food for dogs is the top brand to over 700 locations by the end of the year. we are really excited about the fresh space. >> you've got an eco system building recurring customers that come in for wellness is that something you are building out and plan to do at petco? >> 50% of customers are looking for one-stop shop. you have to go one place to

groom, one place to vet. we are the only company that can bring all of that together we put down 18 vet hospitals we are doing the fastest vet build out in history we are excited about that. >> they are yelling at me. i was going to ask you to prove to me cats are aloof and detached do they really love their masters? >> i think you'll get a lot of emails about that. >> we'll be right back

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zbhoo morning. futures pointing to a pretty significant drop investors are fearful the fed could begin to pull back on stimulus sooner rather than later. robinhood warning of a slow down in trading activity. comments from the robinhood cfo coming up. let's make it three for three on the negative news. chinese tech stocks getting hammered adding even more pressure to that industry. details in a live report from beijing. final hour of "squawk box" begins right now.

good morning becky is off today we've had some fire works already. the u.s. equity markets own version this morning the dow looks like it is down. the nasdaq down about 113, 114 points s&p looking off about 43 points. treasury yields right now as well you are looking at the 10-year note sitting at 1.225. crude oil markedly lower as well after yesterday settling at its

lowest level since may crude, you can buy it at 63.11 you've got other big movers this morning in the retail world. for that, you can talk to mr. dominic chu. >> mr. sorkin, i do have those movers we'll start with macy's first of all. those shares are higher. retailer coming out with better than expected profits and revenues and sales at stores open for at least a year plans for a new share buy back program and reinstate its dividend also better than expected results coming out of kohl's as well up 27% in the course of the year to date period

and tapestry behind brands like coach and kate spade better than expected results there. tapestry ceo will be on an exclusive interview at closing bell at 4:00 p.m. eastern time the most popular ticker searches 10-year note at 1.225% nvidia robinhood markets. lowe's and tesla i posted the rest of the top 10 on my twitter at the domino. only one cryptocurrency showing up that's bitcoin ands it way down the list

>> wow people say i date myself all the time when you hear tapestry, what do you think? >> i don't know. carol king >> thanks, dom >> that's one of her newer albums out >> what, 1972. more evidence on how china's crack down is taking its toll. eunice yoon joins us now with more we need you every week on this, maybe more >> thanks, joe china's official paper had a word for the social media here don't for get your social duty telling companies they need to work with authorities to clamp down on rumors and protect their

fields of responsibility this comes when alibaba shares hit a fresh new low and warned investors to brace for more regulations to come. social media and gaming giant said it would comply and pledged to double donations to $15 billion to help beijing to build, common prosperity unveiling new rules for live-streaming influencers who sell product hosts have to be careful, no discreet marketing, speak mandarin, and in terms of the presentation, don't wear clothing that might offend people joe? >> okay, eunice.

how do you think it works over there? who is behind the curtain? >> president xi jinping and the leadership who is driving it? >> cultural minister they are going industry to industry to find things. i'm wondering whether he's got -- i don't know a pilot bureau that brings these new ideas or maybe he's just a renaissance man and knows what he wants and how do it himself but i don't think it works that way. >> i would guess that it would be president xi jinping and the rest of the leadership team that are looking to make sure that their ultimate goal is going to actually be realized which is the survival of the communist party. behind that is the fact that

president xi was stressing common prosperity adds in so much that one of the priorities is that they are concerned about the inequities in the system they don't want this wealth gap running away interest them because there have been a lot of people getting rich very quickly. in the past, the government has said it is okay some people will get rich some get it first and the rest of the country will follow they are now saying that formula won't work and we have to make sure those people getting rich are getting it back. >> taking a cue from this country. we'll talk much more on the pressure this hour with the satori fund manager stan niles talking robinhood.

investors are not liking what they've heard. kate joins us with that. >> the stocks down more than 10% this morning robinhood did more than a double this quarter also reported a net loss and reiterating warnings crypto stole the show moved from stocks to digital currency crypto now accounts more than half transaction based revenue that was he have and more than 60% came from doge coin trading as well. lately rooud is not a meme stock and says there is no plans to take advantage of that rising share price. >> it doesn't resonate with me

to call robinhood a meme stock i think a really strong unit economics underlying our business that said, we don't have any plans right now to raise additional funds >> he also says the company has enough capital to withstand another shock like we saw in january with gamestop. saying he does not expect sec to ban payment for order flow saying robinhood could thrive or expand abroad without it >> it is really a quite small on a trade basis when you look at that because of that, it is not a revenue source necessarily all that difficult to rye place.

>> robinhood requiring access. so far not dumping shares in the past two deals more than 80% are not and should get an allocation of those deals. guys >> can we talk about this robinhood as a crypto play i don't know what you think trading is going to look like as we go into the future. they are starting to warn about the activity around doge coin. >> analysts expecting less crypto activity. if you look at robinhood and coin base, they are talking no

fees they are trying to break out there. in the prior quarter, it really was a crypto play making half of that revenue one of the things jason talked about was the unpredictability of that and those viral events it is impossible to predict. it's subjective and based on what traders are working with. really almost impossible to predict. >> we started out the show with this, kate it was a little tongue and cheek. >> if your business drops off because you are no longer riding doge coin, meme stock and stimulus checks. does that sound like a

sustainable business model to you, kate? >> one of the things they are talking about is to try and position themselves as more of a square talking really, the single money app. moving to some of those higher value options and things like roth ir a's. some of those debt card interchange that can make up for trading. the single money app looking more like a bank than a trading app. >> you've gotten hammered here.

>> you've talked about building a business on doge coin as a total joke and you get yelled at by the apes all the time >> it's not a question of the business there, the question is the value of the business. it is not a bad business model but potentially higher valued. >> you can't live off those two things in the future >> there was a particularly unique moment of time in the past 6 to 12 months with the stimulus, the fed, the fact that people were home and just got into trading in a whole new way. we'll see if that continues at the same rate, same growth rate. >> thank you to kate rooney and andrew coming up, former fda

commissioner dr. scott gottlieb weighs in on the boosters and whether the biden administration needs to change its messaging on covid. you are watching cnbc. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

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welcome back to squawk u.s. health officials announcing plans to get boosters to millions by likely next month. biden saying workers at nursing homes may be required. and may tell education department to look into legal action against states that have blocked state mask requirements. we'll go to dr. gottlieb starting with schools. because that does appear to be at the center of the

controversy. the mandate of no masking. parents saying, look, this doesn't work because my kid can wear a mask but if other kids won't. parents saying, i'm happy to let my kid go to school unmasked let the other kids mask. why that doesn't work? >> it could potentially work it doesn't quite reduce the level of risk in the school setting if some kids are masked and others are unmasked. the governors aren't preventing and preventing those from implementing mask mandate. if you are in that setting where some aren't wearing masks,

they'll need a higher quality mask look for kn 95 mask which can be worn comfortably with over the ear straps or high-quality procedure mask >> so you are cool with this some people masked >> no. i think it is a bad idea i think governments should leave it up to the local district. in many cases, where prevalence is high, ventilation in florida, we've seen thousands testing positive and thousands of kids are in quarantine.

and effectively, the year has shut down. in the period of a delta varnt that is more contagious. we are opening the schools with one hand tide behind our back. we didn't understand how this delta variant will affect schools. in some cases, they are failing on both those endeavors. >> have you heard with individuals getting -- is it a second booster a third shot it sounds like a second booster or if the two were the initial and it is the first? does that third shot, are there some more serious side effects or is that something i've heard that there is really no evidence

of at this point i've heard if the second was worst than the first, the third can be even worse in terms of feeling sick >> we haven't seen it in terms of data. you haven't seen a side effect profile with the third that looks different from the second dose a lot of people going and getting those shots right now. the cdc is working with the opportunity to collect that data to get the third booster we'll be putting up some very high vaccination numbers over the coming weeks a lot of people being told they can get a shot by september 20, the question is why wouldn't they do it now >> do we have any data that say the vaccines are more effective than having covid itself with natural antibodies

does that wear off faster than, less fast than vaccines. in the past you've said vaccines might provide better immunity. i'm seeing things that say maybe having had the disease might be more lasting >> we do believe the vaccines offer a broader compliment of immune protection than natural immunity infection we don't know about the durability people who have been previously infected, there is evidence of breakthrough infections. people are getting less sick it does not track real well. we don't track them respectively this is another thing the cdc is tracking so far the data that's come out that shows the immunity is protected and durible and looks close to being on par with the vaccines

people are going to require a booster. that said, immunity induced seems to be broader. getting antibodies against broader compliment of variants >> you've made the comment if you've been recently vaccinated, you feel confident you are protected against the delta or if a thard booster will give you more protection or how that would work >> we've seen studies so far and debated these numbers the reaso i'm asking, what do we think the vaccine is against delta itself.

whether you take it for the first time today or the third time in a couple months from now? >> diminished against the wuhan variant but still very robust. we should think about the first shot as the booster, they really qualify as two primes and this is the booster that will boost longer term immunity these lasted 8, 9 months in many cases. it is almost a year you've had immunity that has been protected. clearly, immunity has declined overtime more age based the protection against hospitalizations still looks robust even in the israeli data, it looks quite robust it is not falling off a cliff.

going into the fall/winter covid season you saw the administration to try to get boosters to get more durable, stronger immunity people vaccinated right now are going to have an immunity protected through the fall and winter >> okay. dr. gottlieb, always good to see you. >> don't miss the white house's chief medical advisor, dr. fauci on closing bell. we'll return after this.

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coming up, breaking economic data stay tuned you are watching "squawk box" on you are watching "squawk box" on cnbc.

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welcome back to "squawk box. we have breaking news. jobless claims are out post covid-19 low, 348,000 last month, it was revised up slightly from 375 to 377 it doesn't stop there on continuing claims, also a post covid-19 low 2,820,000. last month, we had a subtle revision 2,866,000. moves to 2,899,000

an august number expect these numbers slightly higher. the weakest of the year. you have to go back to december of last year to find a smaller number between then and today, you had april, which is a 48-year high at 50.2. brings us to the point whether it is this number at university of michigan. you have this feel-good number of people associated with stocks you have service sector ism which was all-time high. certain parts of the economy is adapting the the psychology of putting it hichbehind us. the real issue, is optimism going to continue to translate in the softer things like equity prices higher vix

on the interest rate front, rates can stay up. they haven't closed beyond the super important zone the dollar index is running which means the u.s. may not be perfect but we certainly seem to be grappling with issues better than most. we probably wouldn't close the country a week or two over six cases. >> thank you, joining us now, adp's chief economist and steve liesman first. >> not necessarily showing up here these are good jobless claims numbers. inching our way down

i'll be very happy when we get below 300,000. plus 11 plus million americans with jobless claims. the question, joe becomes the delta variant. not just in the united states. the impact of the supply chain in asia and something we need to watch in terms of the broader, longer-term effect year. >> one of the sticking points we've seen, we used to hear about 9 million jobs 8 million, 7 million it is coming down. where we have gotten to more >> the thing that is really critical to understand is

leisure and hospitality that has been leading in terms of the job gains all this year is the sector most hit obviously by the pandemic it took 42% of the losses. so when we are looking at gains, we are looking at service sector, we are looking at the openings as well a lot of those are coming from the service sector where you are seeing gains we'd like to see them in manufacturing across the board we'd like to see them in services >> it is a problem wheres that a part of the economy that could be affected by what's happening in the southern states >> right now, the data looks promising. if you look at those retail sales numbers that came out this

week those restaurants. we call it the happy hour recovery they've been leading this charge that enthusiasm will get back to be sustained and will it include travel and other leisure activity is still an open question so yes, that's still a risk there. >> airlines are quick to say, look, they did definitely see an impact in recent weeks have you heard that steve or neela? go ahead >> you did see damping restaurants is really the shadow end. the deeper end is international travel >> if it gets worst, we'll go

back to where they were, that's probably worst for vegas and all of those things. >> seeing a fall off of hotel and lodging. that was good in the sales report that data has shown in places like florida and texas, reservations at seated tables have declined there. >> just push it ahead. we know we are coming back to these things we are going to get through the delta variant like we got through the alpha variant. >> i think fphil is on to something with the happy hours >> that's right. it is critical to confidence the numbers we've seen has weighed in on the outlook as well confident consumers spend more

the waiting of the fiscal support, people may have less to spend. all in all those are still really strong. rates are still high the consumer looks fairly good from a budget standpoint as long as health conditions stay contained. >> how is that adp number looking? >> we'll talk later for sure >> do you get secret e-mails from neela is that how you anticipate that? >> talking about secret e-mails.

>> i don't think you are thanks more retail results out this morning. macy's crushing profit estimates, the jump stocking, the stock jumping in response. kohl's also rising after revenue beat forecast. amazon plans to open several large locations in the u.s. that will operate like department stores amazon is expected to use the format to help extend its reach. weighing on the shares of walmart and target here to break all of this down, ceo of tjl advisors. you saw these numbers this morning, were you surprised at how big a boost it was the quarter just ended was better but for the year, really

doubling the forecast for adjusted earnings per share. were you expecting that? >> i was expecting it to rise. expecting all of these to rise significantly. i was encouraged by the numbers you just discussed here at macy's and kohl's. before that, target was excellent also they are very encouraging numbers. >> i'm playing a trip to a hotel on the moon believing what jeff bezos says and does will always be the right thing what is the benefit to getting to brick and mortar? >> you'll dial back to our earlier conversations, not just months ago but years ago i'm a little surprised it has

taken amazon this long to come out with this announcement and amazon does half of the online business in america they are the power house to deal with at the physical stores. they are headed to capture more share. it has to come from brick and mortar >> helps with clothing that's a big part of that, i guess. people do it on line but there are certain things you probably want to go into a store for. >> clothing is very profitable done right, it can be more profitable than home business. the actual online experience of

purchasing apparel, particularly on the women's side is not particularly pleasing because 40% of apparel bought on line gets returned. far less product is returned if you actually go into the store, buy the product, feel the fabric and know how it looks and fits you. i thinks that a much more profitable way to do business in the apparel business so i'm sure they are looking at that as well >> going back to talk about macy's, other than responding with the current situation with covid, in the future, you try 20 do a lot in terms of closure how is the company positioned right now for the future >> i think macy's in particular is positioned very well. not only for all of the good

work that they have been doing in the last year and a half while this period of uncertainty has taken place. macy's has not slowed down made the proper investments of getting the company lean getting rid of big stores and made a lot of these hard decisions. the fact, joe, that they've announced that they are going to start up their dividend payment and buy back shares which they've had a pause for many quarters i think it is a vote of confidence they've made and i want to point out that there have been a lot of unstability, lack of stability in the direct competition space, either bankruptcies or store closures

frankly, there is less competition. i think all arrows point green for macy's over the long term. >> have you heard of the term peacock when they go back to the office one of these men or even women sorkin mentioned that. is he not the ultimate peacock >> terry is peacocking we are not together. i'm looking at the tie is that a knit tie it looks like it has some texture. >> congratulations you are still 100% a ralph lauren knit tie. >> it is hard to tell the contrast i can't see the size of the

lapel. we'll see it when i see you in person >> you are in your office? >> i'm actually at home. >> you get up in the morning and by 6:00 a.m. you are having coffee and you look like that, don't you? >> 6:00 in the morning is my wake-up call that's correct >> you put that on for home and watch cnbc in that outfit. >> he sleeps in the suit >> i woke up in this >> oh, my god. too many mouses are walking by with their heads up. that's what you are missing. can you get a shot of that >> we have to go we'll show you mickey mouse heads later. facebook launching a new product. horizon workrooms.

>> today, we are announcing a new service called work rooms. it is basically a virtual reality service for collaborating together and doing work it is an amazing experience where you feel like you are right there with your colleagues >> we'll get reaction from tech investor dan nesil maybe joe and i should go into a virtual world and do it that way. we are back after this this is the card built for... ...real life. (dad) she's gonna be a drummer. (cashier) yeah she is. that's gonna get loud. (dad) right? (vo) the new wells fargo active cash visa credit card. unlimited 2% cash back on purchases. that's real life ready.

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criticism. tech company tencent warning more internet shares falling in trading today to stock performances in apple and stock prices in the last two months. talking with a well-known investor saying he's sticking with the well-known basket of chinese stock. joining us now dan niles founder of santori fund. we've been talking about alibaba looking like a bit of a time machine, which is to say if you thought you missed the train in 2019, can you get on the train now. >> absolutely. looking at the hedge fund, we put on a much bigger basket of

stocks on the short side in the u.s. you are sort of in a time machine. you look back historically in 2018 when donald trump went after chinese companies. the condition web, which is an etf of these related stocks that went down. the nasdaq went down 12% you look at it over 12 months. the k web has gone down and the nasdaq is up 100% over that period of time forus, we've got roughly 10% i a basket of over 50 chinese games, but we have almost triple that amount in the basket of u.s. -- primarily focused on u.s. tech stocks outside of the biggest six or so that were short against it, and that's really how we're playing this. we reached for the falling knife. we definitely got a few fingers cut off on the long side, but

the shorts have actually worked out pretty well in terms of the smaller capitalization shorts sitting inside -- >> just to put a fine point on this, have you doubled down at all in the last month as things have progressively gotten worse on those long plays in china is this. >> no, what we've done is we've gotten a lot more selective, andrew, and quite honestly, this is the thing to keep in mind when we started buying this, it was because you had us on, i think, in early july, and we said, look, we won't get involved in chinese tech names until the government has sort of backed off and then on july 27th, the government had -- the regulators had a call with a lot of the brokerage firms saying people are misunderstanding what's going on stocks could stabilize at any moment we thought, okay, down 50 is enough, and they're going to proceed more slowly, but then that started to change again on august 11th, the five-year plan to regulate these names then we've seen more news come

out pretty much every day. for us, as we said, we're losing pa patience, i guess, is one way to put it it's hard to trust what's coming out of chinese state media, when it changes from stocks could stabilize at any moment to we've got a five-year plan for regulating these companies and prosperity for all right now at least, we feel u.s. tech companies with the fed about to raise rates have a lot more risk given valuations at record levels and investor sentiment that's piled in on the long side. >> what would cause you to get out of those chinese names >> i mean, we sold 20% of our basket yesterday on that brief percent rally. we added to some of our tech shorts in the united states at the same time, so, you know, for us, some of this is just looking at where we are. if the fed really has to slam the brakes on, which we think they might have to, then, you

know, will chinese stocks go down even faster than u.s. stocks or will our u.s. basket go down more remember, it's a basket of names on the long and short side for us it's just sort of seeing how the government's reacting and unfortunately right now they seem to not care where stock prices are going, which is a big change frr om what they were saying on july 27th. and that's really what it comes down to. we kind of go back to that statement, it's the government. >> what's your take on facebook right now? mark zuckerberg just announcing this new vr effort effectively puts you in an office all together is that a game changer >> yeah, so i'm probably the wrong person to ask because i'm a tech geek to the core, so i -- you know, i'm a big believer in the metaverse so-called virtual reality, augmented reality, and unfortunately those things have taken a lot longer to take off than we thought. now, the pandemic does change a lot of things. i mean, i haven't been out on an

airplane since january of last year since i came out to cnbc actually back then for an interview, so in this environment, we're doing things more virtually, that might be what gets people, you know, really thinking about, you know, maybe we should focus more on these virtual meetings, et cetera, but i think this is going to be something that happens over a period of time. at the enofd of the day, we all want to get out, we want to socialize. we're human beings that's what we want to do, and virtual isn't quite the same. >> we've got facebook and zoom on the screen. what do you think about the stocks themselves? >> well, so if you look at the biggest stocks, we think google's the best out of all the names. that's our favorite. if you look at them, they're growing revenues at 38% this year you're buying for two multiple points above the market. facebook is growing revenues at 38% this year. you're buying it at a market multiple, and both of them are reopening plays.

grant it, we've got another round of delta variant and things are going on there, but we've also got 4 billion people vaccinated around the globe and people getting antibodies through just catching covid. so you think both of those are reopening plays, we had to pick mega cap tech stocks those are the two we would focus on the long side we like enterprise. >> dan, thank you. always good to talk to you and to learn where you think things are headed we look forward to talking again very, very soon. >> thanks, andrew. get down to the new york stock exchange, jim cramer joins us now this will be the third session of some selling, i guess, jim, is it the start of anything, do you think? should we be surprised >> maybe it's the conclusion. >> the tapering. >> the conclusion of it. we just keep going down basically, the same information, which the information seems to be dubious the earnings today are really terrific, if anyone cares about that the earnings the whole time have been good. europe's down, oldest bank in

the universe, and we sit here and think it's all about the fed. if our fed is all that powerful in paris, let me know. i love what dan niles said, i've known dan for 30 years, really dates us alphabet and google and facebook are so cheap, it's like bring t on zuckerberg was really good this morning. he's getting much cooler he's getting mojo if you want to put it like mojo per share >> how about macy's, surprised at how the numbers just in and of themselves were surprising. >> jeff totally delivered. the numbers are extraordinary. his omni channel is working well, opening a lot of ti-- he' got it going i think his stachff is really good the whole initiatives that he's got about trying to get people in the stores, credit card, starting with omni channel, it's

paying off >> amazon omni channel, that's weird, isn't it? the amazon omni channel. >> i don't know what -- everybody hates amazon >> should they be open they're brick and mortar >> i'd like to see what's in that amazon, so moon rocks maybe. >> well, look, i don't think whole foods is any good under them versus what it used to be i just don't >> really? >> it's just not that special. >> that's a good point. >> i don't think so. people are very negative, bull, bear spread, very negative everybody's negative andrew and you are not negative. you have a very positive show. >> we are. we're not. >> very positive show. you guys are like boom, laser focused. >> and they also said we wouldn't do it if we had the odds i'd still come in here just to sit in this fish bowl in times square and watch what's happening out there. e.m e chld do it frothyat, jo from the yacht. >> thank you, jim, thank you an degree. >> we're going out "squawk on the street" is next

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good thursday 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. coming up that ugly close on wednesday and it is risk off again as oil, copper, iron ore drop on these global growth concerns goldman cuts its gdp forecast. got the ten-year below 1 1/4 futures deep in the red following the wors