billion besides inflation concerns i think greg is right. i think a lot of folks are looking towards next week's jackson hole meeting and what might come out of that i think people are fundamentally misunderstanding the nature of this recovery. it's going to take a while. >> we appreciate t, somehow it got tonight 8:59 and 50 seconds. thank you, i know it's short greg, thank you, i'll see you next week. make sure you join us. "squawk on the street" is next ♪ good friday morning, welcome to "squawk on the street." i'm carl quintanilla with morgan br brennan at the new york stock exchange futures are weak, they're well off the early morning lows as these growth concerns widen on the delta variant. hospital deaths six-month high, oil's down seven straight days, ten-year about 1.4 futures in the red, the dow is on course to erase most or all of august's gains. >> plus, elon musk saying tesla

is working on a humanoid robot and delta derailed companies continue to push their return to the office now we're watching china's port problems, which are also deepening because of delta that is really going to be one of the stories of the morning, morgan earlier in the week, goldman sachs cut their gdp forecast for the quarter and raised their pce inflation number because delta's weighing on consumers here as we know, a single case in china can close a port, which is going to hurt our supply chains. >> and not only a port but the third largest port in the world when we're already seeing some of those supply chain issues from earlier this year, we're coming into or we are in peak shipping season ahead of holidays, school, return to school, back to school, et cetera. so perhaps not surprising, now we'll see what shakes out over the coming weeks and coming months not surprising, perhaps, to see

market strategists starting to bandy about and kick around the word stagflation this week and point to it and concerns around it as maybe part of the reason we are seeing a selloff, albeit still pretty minor at this point but a selloff in the broader markets. >> it's true as joe said earlier a couple of months ago worst week in a couple of months depending on where we get, 4383 is the worst week a little farther back we'll be watching inflationary pressures and then there's always the problem is we don't know what delta's going to do. we don't know if it's going to burn out the way it did in india, the way we think it might be doing in the uk jpmorgan had a note yesterday saying, you know, the way in which it's acting differently in israel versus the uk, the eu, it's not reacting to vaccination patterns, which makes it incredibly hard to predict >> then of course in a week where we're seeing the authorization of a third booster shot here in the u.s. as well, you have analysts starting to put some numbers around what that's going to mean in terms of much higher than expected sales for companies like moderna, fiez

eshs biontech, as well as you begin to see those shots roll out in the next month. dr. fauci talking about the fact that manufacturing is underway to distribute vaccines not only here in the u.s. but abroad, too. so there are a lot of swirling factors that are going to be playing out here and perhaps, again, not surprising to see that it would seem anybody who comes on our air who wants to talk about the markets has sort o'after different view or take on where we are in this coronavirus pandemic. >> of course the good news and the bullish argument would be we're going to vaccinate our way out of this perhaps. we're doing a million a day, something we haven't done where will -- really since the beginning of the year. fauci was on the air yesterday and talked about the need for further boosters as we watched the news that the cdc is delaying review meetings as to whether to recommend additional boosters here's what fauci said. >> you will have places of employment, particularly big organizations that employ hundreds of thousands of people who will be saying if you want to work for us, you've got to

get vaccinated they were hesitant to do that before because you didn't have the backup of a full approval of the vaccination, so i think we can put a dent in that group of people who are thus far not getting vaccinated >> that's certainly the hope we mentioned apple at the top, though, they are delaying their return to office into january of next year, same with schwab. facebook did it a few days ago, verizon, ibm is temporarily closing its new york offices state street is going to vacate new york completely. there's a good piece in bloomberg this morning about how the return to office in a lot of financial centers, new york, san francisco, london, frankfort is really having to push back their plans. it's not going to be the fall. >> you know, perhaps not surprising going back to all the uncertainty we see out there if you have a work force that's been able to work remotely for the past 18 months, why not continue that protocol, especially if the risk/reward is

such that keeping people home and i know there's arguments about where you're more productive, but keeping people at home and working versus maybe having to shut down an office if somebody comes in with a positive case and all the costs associated with that, it makes sense, right if your office is a factory floor, i think it's been a very different situation straight through this pandemic and even there interestingly enough, many of those factory floors are not necessarily mandating vaccines although they're pushing hard for them it goes back to we talked a little bit about it last week whether your work force is unionized or not >> absolutely. it's already happen in texas by the way we heard from ford this week closing kansas city for a little bit toyota obviously their announcement yesterday ihs market has a report out, the chip shortage will cut global auto production by, what do you think, 7 million cars this year, and it's going to continue to hobble the industry in the next year as getting chips out of malaysia, in the case of ford very difficult right now.

>> it's incredible i have an old kind of beat up more than 100,000 miles car that we bought for $3,000 five years ago. we just resold it for more than that, which sort of speaks towards this dynamic in the market, at least for used cars we can talk about how transitory that is. certainly the fed chair has come out and said that. we've heard that from other officials amidst the talk of taper. and of course the minutes this week signaling this ramp-up towards that process but just how transitory is it really going to be, especially when you do have somebody like pat gelsinger saying hey, chip shortage collapse until 2023. >> yeah, and cisco too until the second half of their fiscal year for more on the markets, let's bring in president and cio at guidestone capital management. happy friday, good to see you. >> good to see you carl, thank you. >> fed guidance, there's been more and more discussion that

maybe it's not jackson hole after all, and what would be the harm in having powell say, you know what, this delta thing is affecting behavior let's wait and we'll discuss maybe in september. >> well, i think the market would respond well to that i mean, clearly the last thing the market wants to see is fed tightening now, there's two aspects of that there's tapering and there's actually raising interest rates, and obviously the tapering is going to come first. i think that's the last thing the fed wants to see if powell came out and said, look, this delta variant is creating serious headwinds for the economy, and that's going to push back the need to start tightening, i think the market would respond well to that and probably breathe a sigh of relief. >> inflation, then, is going to be the question. because obviously anything related to imports from asia is going to be affected chips and autos are a trouble spot but you got copper now, iron ore. we've talked a lot about oil today. already down to the low 60s.

are we -- is the bigger danger inflation or deflation right now, david >> great yes, carl i think stagflation may be the biggest risk the issue i have today that we're seeing real inflation. is it transitory, is it not? it's kind of hard to call it transitory with some of the data you just cited and what we've seen over the past several months the fed is trying to thread the needle right now the ten-year yield at 123 is not the same -- not concerned about inflation. the fed's trying to thread the needle the markets don't seem that concerned about it you don't really see the markets pricing in inflationary concerns they're more worried about growth, and so today i don't think inflation is the biggest risk for the markets i think the markets want to see continued growth, delta variant and want to see the reopening trade come back. i think that's going to be the real key inflation is probably a 2022 story quite honestly because i think most investors have bought

into the transitory rhetoric coming out of the fed. if we get into 2022, we're past delta. we're seeing growth resurging a as a result of being past the delta variant. i think that's when inflation really starts to become a bigger risk for the markets >> david, i want to go back to something you just said, and that was, you know, what tightening means for the markets. historically whenever we've seen the fed enter tightening psych l ls it has not been good for the markets, at least in the near to medium term. we've had folks on our air saying listen, because of that inflation risk out there it would actually be a positive the markets arguably have already priced this in it would be a positive for the markets to see them pulling back on some of those monthly purchases. you don't agree? >> i do not agree. the markets trade at 22 times forward earnings it's trading at 22 times forward earnings because the fed is extremely yeasy that pe multiple which had a huge spike in march of 2020 when the fed started to cut rates,

that p/e multiple is going to have to adjust lower we've got very high earnings expectations we're looking at 40% earnings growth this year, another 10% next year, if we get a multiple contraction in the face of that, that is not a good idea. i really disagree on that. you think the market continues to be very enamored with fed policy the low rate environment has created the phenomenon which pushes assets out on the risk curve. sans the fed starts hinting at tightening, the market's going to have to adjust to that, and that will not be positive. >> certainly can make that argument in terms of what we're seeing in a junk bond market as well with record off bond numbers there. given this entire conversation, how does an investor position their portfolios >> i think you have to have a very diversified approach. i know that sounds trite, but in this environment, you've got two things working it's like you said, is it deflation or is it inflation i think you've got to be prepared for both, so on a

slower growth environment, that has become the best place to be in a slow growth environment if we're going to rebound, if we're going to get past the delta variant, and if we're going to see this reopen trade resurge, you want to own financials that's going to mean you're going to see the yield curve steepen and financials will do very well, particularly banks and that environment we're going -- at some point if we're truly going to have a sustainable economic recovery, that will really favor the financials. >> talk about a barbell strategy, david. very hard to read right now. s&p futures have just gone green. maybe it's what you said david, thanks a lot, good to see you. >> good to see you, thank you. tesla teasing some big upcoming projects at yesterday's ai event our phil lebeau has the latest. >> morgan, this demonstration, if you will, last night of some of the technology that tesla is developing when it comes to artificial intelligence had two components to it the first component, the one

that impacts full self-driving vehicles and the technology there. the company outlined a number of steps it's taking, neural nets, project dojo improving the autonomous drive technology. tesla is not full self-driving right now. it's level two autonomy, it's nowhere close to level four or five it's developing a chip for training its artificial intelligence networks. that was the meat, if you will, of the demonstration last night, and then there was the teaser which is getting plenty of attention and basically this was a recruiting tool. it was tesla introducing what they're calling the tesla bot. they are developing a humanoid bot, life size basically, it will be using full self-driving technology as well as components here's elon musk talking about why they're building this bot. >> it's basically going to start with just dealing with work that is boring, repetitive, and

dangerous. basically what is the work that people would least like to do. >> the tesla robot is called optimist, at least right now they say it's going to be ready next year. i think a lot of people are skeptical that this is going to be ready even in a prototype form next year we should point out, guys, while this is getting plenty of attention, that is exactly what tesla was aiming for at the end of the presentation where they talked about the tesla robot, they made it very clear on the stream, come work at tesla tesla ai skand they're looking o that artificial intelligence talent, and that's really what this was, a big recruiting pitch last night, at the end of an update. >> some of the headlines last night were talking about this human opioid robot that would be doing boring jobs, and i was like boring company that's going

to be building tunnels, what's going on but i mean, arguably it makes sense, right given the fact that they do already have that technology they are already making those components it's like a hypervertically integrated company just the way its sister company spacex is as well. >> correct. >> elon musk is a builder, he has surrounded himself with builders whether it's hardware or software, the idea that this would be a recruiting event more than anything i think is pretty not notable. >> and look, they've done this with their other events as well. everybody knew this going into this that was not a surprise, morgan and also give them credit. they wanted to grab the conversation they have done that. yeah, there are going to be a lot of people looking at the guidancing on stage and they'll be like what a joke this was look, we're working on stuff will it be ready next year no, but will it be ready down the road will there be other elements down the road, yes and to your first point about

this humanoid bot doing boring repetitive tasks, look at boston dynamics and the progress they've made with robotic. it's amazing some of the robots they've had and they're still developing that shows you this is a slow process. it's not like you can just roll these out into a factory and immediately take care of everything carl, back to you. >> really quick, phil. in markets they sometimes say you can give your prediction for stocks but don't say when. everyone talks about autonomy day in 2019 when he promised a million autonomous robo taxis by 2020, it hasn't changed him at all, has it? >> no, and it won't change him that's part of what he does. he is going to throw out bold visions, visions that people may scoff at, they will say you're crazy. as he works towards advancing towards those ultimate goals, whether or not he gets there, they are making progress, and it did reinforce the belief that many have that tesla is way ahead of the industry when it comes to things like autonomous

drive technology so there is a strategy here from elon musk. >> which is really the crux of the bull/bear case, right? >> always has been exactly right. phil, thanks, great stuff. phil lebeau talking some tesla today. when we come back, covid causing some congestion at ports in china, big ramifications for holiday shopping. take a look at futures they were down on the dow about 150, about 6:00 a.m. eastern time we've moved into the green on all three more "squawk on the street" from the nyc continues straight ahead. jerry is here! j! mate, how are ya!? it's so good to see you. good to see all of you, yeah! why is jerry so... popular? it's been like this ever since we started using workday.

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to achieve - to change the game and inspire the team of tomorrow. china's port congestion continues to worsen after a single covid case shut down operations our eunice yoon is live from beijing with more. hi, eunice zplort hey, carl, shipping companies are telling local media it will likely take two weeks to clear the backlog of containers at the port. they expect the closed terminal will be partially reopened next tuesday and be fully operational by september 1st assuming that there are no more cases there. now, beijing's zero tolerance policy towards covid might claim the shanghai airport next. that is what people here are watching there were two workers confirmed today with the delta variant, 300 people have been quarantined, and certain residential and hotels have gone

into semilockdown. they've been designated middle risk, and this all comes as manufacturers not only are trying to ship out goods by boat but also by plane. now, the authorities here have also been imposing restrictions on other areas of the economy, the data privacy law just was passed today by lawmakers. this is the personal information protect law. it focuses on protecting user data it's going to go into effect on november 1st, and now companies are going to be required to collect the minimum amount of data for a service, obtain consent for sensitive information, offer easy opt out options for consumers and get government approval to transfer data overseas. and separate to, that the cyber watchdog today unveiled tighter restrictions for data collection for the car industry as well and again, requiring that data is stored locally and if not, the data, the approval needs to

come to transfer data overseas from the cyber watchdog or other government authorities now, the concern of course is that these requirements are going to make it much more difficult for chinese companies and other companies that operate here to be able to expand and make profits because a lot of the companies have been engaging in using those -- that information in order to personalize services now, in addition to data privacy, another big topic here has been the anti-foreign -- the anti-sanctions law this is what the lawmakers have been discussing, potentially extending that law, which has been passed here in mainland china to hong kong and macau but morgan, interestingly enough, that law and the vote on it was actually postponed. no reasons were given as to why, but it could be because there has been a lot of concern in hong kong that this could

negatively impact the role of hong kong as a financial hub. >> that would make sense just to go back to the data privacy law, eunice. i realize tiktok is technically a subsidiary housed in the u.s., how far reaching could this law be for subsidiaries like tiktok. >> it would be focused mainly on chinese companies here in the mainland at this point it wouldn't necessarily extend all the way to tiktok, but at the same time, you know, there's always some concern about the way the chinese government and the chinese companies here or at least bytedance would be able to utilize or get pressure for day data overseas, morgan. >> eunice yoon another busy day in terms of news coming out of china. thank you. as investors do worry about potential economic slowdowns there too. let's take a look at futures

with less than eight minutes until the opening bell, turning green with major averages poised to open higher more "squawk on the street" from e w rkto ehae straight ahead

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we're focused on the deflationary forces that are building up in the economy i think that's going to be the shocker out there, that deflation is the greater risk now, not inflation and not all deflation is bad there's really good deflation associated with these technologically enabled platforms. the bad deflation is going to be associated with companies -- who paid too much attention to short-term oriented shareholders who wanted their profits now >> fascinating interview with cathie wood of arc yesterday on tech check, talking about her overall deflationary stance, which sort of feeds into her innovation thesis, and that is you're requestigoing to have co, especially in financial servicesservices that are going to drive costs close to zero. she's been directionally correct on materials and oil in the last

couple of months is she actually did move robinhood saying she wouldn't mind if they made an acquisition, she could handle the dilution. >> wide ranging fascinating interview. i was a little jealous i got her comments on cryptocurrency and the flight to that as a safe haven and the impact of china was fascinated as well. >> obviously not consensus but cathie really worries about that there's the opening bell the big board, it's financial data company faxsa we depend on those guys heavily. thanks for having you do at the nasdaq, techno glass manufacturer of manufactured glass and windows. for all the worries we've had to field this week, the taper discussion, china, the delta variant, the slowing consumer. it's been hard to get too skeptical or worried because corporates have been strong, and once again today deer comes out with a beat in raise foot locker, we were looking for a negative comp. they come out with a positive

69 >> i'm glad you brought up deer. raise the full year earnings forecast, talked about the roe bus market conditions, and everything they're seeing on agriculture. we've had similar commentary from other executives of companies. around what we're seeing in that, but the ag sales were up 29%. operating profit up 50%. construction, which of course is going to continue to be in focus, especially with all the infrastructure investments that are either being made or poised to be made not just here stateside but in other parts of the world too, those were up 38% and the operating profit grew 126% perhaps most interestingly, this is one of those older names, classic industrial names that's kind of reinventing himself with the whole idea of digitization, precision, agriculture it's actually one of those names that is in at least one of the arc funds. i know the space fund, which it raised a lot of eyebrows when it was added to that etf earlier this year, just speaking to this idea of investing in the future and where those innovations

could potentially have impact be deflationary. >> farmers have been managing yield using gps for decades. >> it has been one of the least -- >> with the idea that doeere's going to take is another step is really cool. >> we've had guests on, i think of trim bull, also another cathie wood name that's been invested in that has talked about how undisrupted some of these sectors have been or slow to adopt technology and how big that opportunity now is. so perhaps that will continue to become a bigger part of the deere narrative. back to your point, consumer's been strong. we've seen it in the retail numbers all week spe especially notable, the fact that some of the mall names like a foot locker or like a macy's have been doing pretty good. they might not be shopping as much online, and we saw that in the retail sales numbers they certainly seem to be going out and spending it's just how sustainable is it

and what does that look like coming off of stimulus checks and everything else. >> it's definitely events split. foot locker up 11% the guidance was not so great looking at a weak kwq3 we're going to talk to foot locker on closing bell a beat 139 above $0.98 and revenue had the outlook not as strong it is a definite tug of war between some of the specialty retailers. think about twhat target said this week about resilient consumers. even macy's saying some areas haven't been really dinged on traffic despite the delta variant and those concerns it brings. >> and fewer discounts return to school has been such a big theme, and maybe i'm just more keyed into it with like a kindergartner starting, but it seems to be a much bigger theme this year with the retailers, at least in this earnings season. a lot of push there, especially i think given the fact we've talked about this earlier in the

show, there's a lot of question marks about what the inventory levels will look like coming into the holiday season too. >> yeah, speaking of all that, keep your eye on some of the drug names regeneron, their antibody cocktail gets approved in the uk that one that they've developed with roesh and j&j, alex korski stepping down as ceo in january there's a new company vet who will become the new ceo. cramer loves to talk about j&j because of their balance sheet, pristine balance sheet, and they've been hitting record highs. a lot of these names, microsoft, j&j, the bulls will argue you're not going to get a real correction until those start getting sold. >> on a day where microsoft is announcing that it's raising prices for some of its products as well, which again goes back at that whole resilient consumer, you know, growth versus inflation debate. >> that's an all-time high right

there. >> yeah. >> on microsoft. >> it's been a little bit of a push pull in recent weeks. we have seen a piling back into some of these big growth names that are considered safe havens as well givenall the macro uncertainty swirling around the market. >> i heard you say you wanted to mention the fence. is this through an afghanistan lens or something else >> it is first i want to pull up a chart of the ita, which is the aerospace and defense etf. it's actually set to end the week lower it's up slightly today, but basically it's been underperforming the broader market this week, which is also set to not, you know, end the week with the strongest of gains here, but it's names like the commercial aerospace and aviation companies that have been selling perhaps most dramatically this week, not surprising given everything we're seeing with delta and all the uncertainty there, and on the airline side, you've seen warnings around passenger bookings and what that's going to look like into the fall but the defense names have also

been weaker and so pure play names like lockheed martin, northrop grumman, general dynamics, some of the others as well have also been selling off. we saw a little wbit of a bump n those names, the fact that the taliban took over so quickly, the fact that we have these rushed painful, sloppy at least from what we can tell based on the reporting, moves to evacuate tens of thousands of americans as well as afghanis out of that country right now as quickly as we can, you might have expected to see some of these defense stocks rally because it speaks to potentially less stability in the region and arguably the world, especially as china and russia, but particularly china are now in a position to start swooping into that country and offering more aid and sort of speak to the tug of war in terms of hoe gemny on the world stage. roman schweitzer from cowen did

point out you have the overseas contingencies out of the defense budget proposal. there had been about $9 billion set aside proposed for the upcoming defense budget to pay for the afghan military and u.s. support. what's going to happen to that money. also arguably what's the read through going to be to some of these future funding efforts focused on the likes of china. i know they were talking about this on the last show, given the fact that there's a lot of lawmaker consternation and you could argue erosion of goodwill towards the biden administration in the midst of all of this now, what it means for the spending plans that will happen here at home those defense names under pressure right now longer term, analysts are saying you're going to see demand for intelligence, surveillance, and reconnaissance missions. you're going to see demand for unmanned systems, and satellite capabilities and all of these contractors are going to be the ones that tebllypotentially ben from that. >> fascinating boeing within that.

>> boeing is down big. >> got to 204.80 on july 19th. we're about $10 above that you've been talk about their challenges on space in the last couple of weeks. >> oh, my goodness. >> having to delay some of those launches and then also the idea that, you know, we're now doing maybe 1.6 million passengers through tsa a day, which is not the 2 million we were doing for a whale ile there. it does call into question that bullish argument that you would get enough traffic and especially return to corporate and international where the carriers would graduate their fleet plans to start thinking about wide body, and that would be the next stair step bullish play for boeing. it hasn't happened yet. >> the fact that the stock is down something like 9% this week which is a pretty sizable move for this blue chip company, you have all the uncertainty around the commercial business, which is the biggest business and tends to be the business that moves this stock then on the defense and space

side, you have had these issues around the star liner capsule, which competes with spacex under the nasa commercial crew program with the company coming out late last week, about a week ago and saying we need to do more work there's issues with this propulsion system, and the launch window is now going to push bag mck months if not into next year, in general it perhaps doesn't bode well for investors that this piece of the portfolio that has essentially buoyed the commercial side is also not necessarily firing on all cylinders. >> spotify, which has come all the way from almost $400 back in february to the low 200s, announces a buyback of up to a billion dollars. we'll watch that, and on a much lighter note, i know they talked some viacom nickelodeon on sidewalk this morning. we're going to watch "paw patrol" this weekend a lot being written about whether or not nickelodeon and paramount plus can start to

steal some mine share among disney and disney plus. >> my house is probably going to be both. it gets to the point of how many is enough and what are we willing to pay for which is conversation we've been having for years we'll have to see how some of these brands begin to perform and how kids begin to -- you know, whether kids start to dictate the pursestrings. >> don't forget the upgrade from wells earlier in the week talking about how the paramount plus numbers have surprised even them despite the weak premarket, dow is up 50 >> good morning, carl, morgan, happy friday everybody all the major indices are up it's 3 to 2 declining to advancing stocks keep an eye on that advance decline line it has not looked particularly strong a lot of technicians, that's among the most important thing they watch just a point there, not bad open, though, consumer discretionary tech leading,

materials, industrials, bank, these are all your major sec sors some of the more defensive groups lagging a little bit like consumer staples in a lot of ways this is a very typical august and in a lot of ways this is a very odd august why is it a typical august the volume is on the light side. even on days when there's downside the volume tends to be flattish volatility you get in mid-august wa all the way through september, they're called air pockets this is a feature of the summer and late summer for years and years. the vix spikes up oddly at different times. cyclicals tend to underperform defensive stocks tend to outperform so far that's largely what has happened unfortunately on another level we're getting completely unusual odd august because of a confluence of really three different factors. first obviously the delta variant is causing the market to reprice the growth outlet. that's causing a lot of confusion in the cyclical

sector china, there's regulatory actions in china is causing a repricing of the valuations over there and beat a lot of debate about how investable china is at all particularly in the etf space, and of course the federal reserve, the markets become very sensitive to the fed's time line they're anticipating of course september. tapering announcement and tapering ending in the middle of next year and then a rate hike that could change and anything could spike interest rates up and that would be a real mess for growth stocks. a lot of risk to the market. the real ultimate risk when you combine these three factors is the risk of lower valuation, 20, 21 times forward earnings. that multiple could easily come down if one of these things, one or particularly all three of them get particularly worse. as for what we're actually doing in august, this is looking fairly typical, although a little more exaggerated than normal because of the covid situation. you get sensitive sectors that are sensitive to the economies like energy stocks, industrial

stocks, material stocks, consumer discretionary stocks have been under some pressure recently, and so a little more exaggerated. tech tends to be flattish. that's exactly happening, and defensive sectors tend to do better that is happening though exaggerated. spectacular summer, consumer staples also are up on the month. so in one sense, very typical, but the numbers are a little more exaggerated. if you want some sense of how the second half might be different than the first half, look at ross stores. i don't want to concentrate on their back ward looking comments i just want to look at the shocking guidance here 61 to 69 is the third quarter guidance this is pretty amazing lower guidance here. and compared to q32020 and, 2019 is what you want to use. they're talking about 61 to 69 the bottom line is the first half of the year, guys, is very different than the second half

of the year. they're basically telegraphing their concerns about the potential impact on covid at this point and lowering the expectations that's what the street is trying to deal with right now those lowered expectations carl, back to you. >> thank you very much, bob pisani after the break, we're going to talk about the ongoing chip shortage with former cypress ceo, t.j. rodgers. yields been tough to move around even with a lot of data this week, ten-year around 1.24, been pretty steady most of the morning. g microsoft all time high, but amazon 31.80 is a two-month low. we'll be right back. 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,

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cypress semi ceo t.j. rodgers. thanks for being with us today. >> thank you >> in terms of these semi shortages, i mean, we know they continue to roil the auto indu industry we've gotten reports they're starting to affect other industries as well what is your outlook do you anticipate this is a situation that could stretch into say 2023? the answer is a defintyitive ye and no what you just heard from intel is for the really high end chips, so we're talking about chips 12 nanometers in dimension. by the end of this year, the rest of the industry will be recovered and for chips made on 200 mill meimeters, 40 nanometes and above, which is almost everything we use, we're going to be back to normal

the car industry is getting hit for two reasons. one is they use high end chips, and two is their procurement practices set them up for this, the exception being toyota, and i think the triggering mechanism for this interview is toyota announced that they're going to come up short a couple hundred thousand cars. the reason being that in the dashboard of modern cars, you have a little movie theater, and all those dials that used to be there aren't there anymore they're pictures and the chips that paint that dashboard and control the car are high-tech chips of the same type that intel makes. intel i don't believe makes many automotive chips at all. those chips are expected to be scarce through the first half of 2022 so the yes is some automatic automotive manufacturer are going to be affected through the middle of 2022 intel is going to be affected through the beginning of 2023 because intel has been

underperforming. mr. gelsinger, the new president of intel, he came in because intel has had problems, watched samsung and tsmc, asian rivals pass them by in the really high end chips, and yeah, they've got a

. >> today it's washington and a lobbying group and they're -- grauvling for money. the chinese are putting money in their chips and we'll lose ground in them a standard lobbying argument in washington the semiconductor company is not very good. the fact is preand open competition, premarkets, are the kind of markets that the chip industry thrives in. and government subsidies are bad for chip industry. i don't buy that i don't think weside the give money to some of the richest companies in the world

>> free and open markets we have a industry that continues to consolidate i mean going back to intel voiced his interest in acquiring something as well with us yesterday. do you expect we continue to see more of this type of deal making and that, essentially, the biggest players get bigger >> yes that's been the trend. cars are 110 car companies in 1900 and now we have big two and one or two big companies off shore. that's continuing to happen. in the chip industry in this case, i support it gelsinger runs one of the best managed companies in the world and they're going to take over -- they're talking about taking over global foundries that's not a well-run organization and they'll get capacity,

online, well run, making the right stuff. and that's the kind of move a semiconductor industry can fix some of the problems they have all the money to buy what they need that's not a problem >> c.j. rogers, thank you for joining us today >> thank you bought a pop in equities dow's up 114 a lot of thanks to mega cap tech as for the laggards on the weak, it's a lot of materials and energy as oil is on pace for an eighth day down.

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was saying and we had that discussion with different folks about whether it's digital gold or real estate or just quote unquote a fad as some of the naysayers would say. and interesting is the fact that ginsler has signalled that he might be willing to, with very specific guidelines in place, move forward on an etf too write ups on that today. we are in the green today. still poised to end the week mixed. for the major averages we've got more "squawk on the reet" at the other side of this break don't go anywhere. in their liv. for them it's the biggest milestone, the biggest accomplishment, the sale of a business, or an important event for their family. for them, it's the first and only time. we have seen this literally thousands of times, in thousands of iterations.

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to put polish on the end of a tough week >> all the major averages are poised to end lower. here are the three big movers we are watching right now footlocker surging and sales up nearly 7% shares are up 6% now in the early trade. ross stores are a retailer going in the other direction though. the guide weighing on results. right now the biggest laggard on the s&p, down 5% and spotify growing momentum shares are down more than 30% for the year so, high or buy, 4% right now. joining us is ernesto, chief investment officer, and chief global investment strategist at charles schwab good morning to you both ernesto, i'll start with you

the topsy turfy moves in the market, what do you see as the biggest risk in the fall >> the answer to both of your questions is the same. the uncertainty around the delta variant and of what the fed is going to do. what pace are they going to start their tapering at and how is that going to resolve itself? we know it's not going to be positive for growth, clearly and the question is how negative will it be and i don't think anybody has the answer to that at all. >> i want to get your thoughts on this too. especially since i realize we're looking at red arrows for the major averages for the week. but we're coming off a series of high for the dou

>> the waves of new global covid cases have driven u.s. verses international and locked down internet retailers verses reopening sickliccals like airlines and we're seeing it in the market again today tech and health care are two leading sectors. i don't think that's sustainable. i think we need to see rotation back to see more significant gains in the second half and that's dependent on seeing a downturn in the number of cases. but we have to keep a close eye on this, given the virus pattern. i would say keep close attention to the data next week. we saw retail sales down in july, thanks to the delta variant. keep an eye out for the figures. the ifo business confidence numbers and personal income and spending data. >> on that point, from jeffrey,

i wonder if you think the market over time is going to settle into pattern recognition wear. a new wave a new let orof the greek alphabet and they'll know to start lightening up and start getting into psychocyclical. and today's delta is going to be a new variant later on and you will get the eb and flow between defensive and cyclekles. we found the best opportunity to time these things exactly is to stay in focus on the quality value companies. in other words, companies that are profitable, low-cost to capitol, strong business models but trading at a discount to their peers and not perfectly well in each case but relatively well throughout the cycle

because we don't know how long these -- each of these cycles is going to last and what the resolution will be, especially with the covid-related issues, because it's medical answer, not a financial answer that will determine when things start to get better we thought we'd be out of this by now and now delta shows us it's going to be delta, landau and whatever else comes down and we got to be able to deal with it and the best way is to stay focussed on companies. >> jeffrey, i know we've seen chinese stocks in the u.s. sell off pretty dramatically in recent weeks but has it been a boon to u.s. stocks as well, given what it's meant for some of the institutional money and hedge funds? >> i think we have seen money relocate out of asian markets back into the u.s. but this is something that can swing back very quickly. chinese stocks, which are

dominating the index, have fallen 28% this year seems incredibly huge. but historically, that's the average. usually we see a draw down of 28%, in the last 20 years, since china's entered the wto. that's a normal draw down any given year and often they can swing quickly and so can flows keep a close eye on that i think concerns about rampant regulatory changes seemingly every day could give way to support for the markets for chinese authorities in the form of other stimulus measures that could cause that money to swing right back so, be cautious being overly bearish on the china outlook >> interesting all right thanks for joining us and kicking off the hour sticking with the china theme, authorities did pass one of the world's strictest data privacy laws overnight and a surprise to see what's

been happening hong kong in a bear market 20% off of the february high managing partner at managing capitol. good to see you. >> likewise. >> i'm wondering is there a lim toot which the chinese will eventually stop punishing some of their former favorite giants? >> you know, it's actually not about the name -- about the trends but the names the 10 cent alibaba were always in the cross hairs of regulators because they have the perfect combination of both monopoly control over the sectors in which they're operating, as well as a significant number of licenses, and other kind of components that made them these behemoths that wouldn't exist in a western market condition i think we'll continue to see these businesses targeted in this environment those in health care, other consumer articles won't see that

same level of scrutiny >> we had a discussion with cathy wood about this yesterday of arc she has long called for a reset on these chinese names but she wouldn't go so far as to say they're uninvestable she said what happened to for-profit education is going to ring in investor's minds for a long time to come. i wonder if you agree? >> i don't i think for those of us on the ground, what occurred in the for-profit education space wasn't surprising. this was a regulatory grey zone. a lot of forewarning out of regulators here. businesses were getting out of hand and we're enacting predatory policies where parents were being forced to pay higher and higher amounts of money for press prep and they were shurking responsibilities to provide services to paying students outside of their traditional role and an area we, as a fund, have never invested in, period

i think, if you're a tourist investor, who only looks at headlines, you might be surprised by developments. but for those of us on the ground, not a huge surprise. >> so, ben, as somebody on the ground, where are you putting money to work right now then >> there are so many verticals untouched and unaddressed by any regulatory changes so, health care remained a massive boon point talent flow returning to town. supported a huge arb traugs and deficit between quality of care and services and products in western markets and in china a new consumer a very noncontroversial space seeing tremendous growth consumption channels and we believe core technologies. chips, quantum anything that bolsters china's independence, a lack of necessity for core inputs out of

the united states is seeing tremendous regulatory support subsidies and investment dollars and they're booming today. >> certainly continue to see the tensionz btween the u.s. and china increase, whether it's sml of the military or national security exercises that have been taking place in the region or obviously what's happening in afghanistan right now. or even the trade war and tariffs in place right here. does that effect or color your view on how you're approaching your investments in the country? >> certainly where we would discourage companies that are china ink from looking to expands into western markets there's going to be a sniff knlt repositioning of chinese companies going public in hong kong, rather than the united states because of data security fears on the western side, that there would be data leakage from china to western regulator hands, just as americans fear said last year

that tiktok data was going to be distributed to the chinese direction. i think it doesn't color too much of what we do because the sectors in which we invest are dependent on expangszpansion to other markets. >> there's been a lot of talk about supply chains, coming into the united states. i'm wondering how you're thinking about china's ability to handle this particular variant, maybe future variant said, given their level of vaccination and the efficacy of their vaccines do you see this getting, maybe a little bit bet wr each cycle every time >> you know, china's taken a very different approach to the west it's a total lockdown. it's almost impossible for someone to come in the market. we've got major political events, as well as olympics coming up, they wouldn't want to

jeopardize i think the major outbreaks will remain in check largely by brute force, rather than vaccination and therefore, i think there will be limited impact in the day-to-day operations through that policy. we'll have to find ways to live with it and increase vaccination rates. but limited waves from impact domestically >> what does that mean for economic growth in china >> we're bullish on it one of the few market that has bounced back faster than anyone else globally, in terms of domestic consumption, and buying so, it's -- domestically, we're booming and then obviously there's a significant export story, which remains in the next wave of emerging markets our view is china is better positioned and better fundamentals because of the stability domestically that's not susceptible to the new

variants necessarily >> finally, i don't want to ask you to be a mind reader but there's a lot of trade discussion about where all this talk about common prosperity is coming from and a lot of traders suggest it might be an awareness of what food scarcity does to social unrest in china, if you think back to how tiananmen got its origins. is that what they're thinking, hence unrest >> i think wealth inequality and social unrest is a theme throughout the world they're looking to avoid the midinalcome trap they've historically been underregulated and protected, in terms of workers rights, in terms of setting wages at levels that we expect outside the market and so, these types of evolutions to me seem necessary

and expected and are the same types of rhetoric that we're seeing out of western capitols today as well. >> fair point. really insightful stuff. appreciate it so much. thanks as we head to a quick break, here is a look at our roadmap for the rest of the hour shipments delayed. companies struggling with supply chain constraints. plus, quote, bought and buried the stc filing the new antitrust complaint against facebook and a study reveals how many americans pay zero federal income tax i've spent centuries evolving with the world. that's the nature of being the economy. observing investors choose assets to balance risk and reward. with one element securing portfolios, time after time. gold. agile and liquid.

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welcome back the share of americans who pay no income tax is growing who's left with a check. robert >> well, the pandemic led to a record-number of americans who paid no income tax in fact, 61% of american households or about 170 million paid no federal income taxes last year, according to the tax policy center. that mark as big increase from 2019, when 44% paid no federal inkmt taxes. tax policy senter saying the high number is transitory, due mainly to high unemployment,

stimulus checks and increased tax credits. but the share of americans who pay no federal income tax has doubled. in 1990 only about 21% paid no federal income taxes at the same time the share of taxes paid at the top has been growing. they paid 71% of federal income taxes in 2018. that was the latest year reported the top 1% paid a record 40% of taxes. that is twice their share of national income. saying the number of nontaxpayers will fall back to prepandemic levels in 2022 and 2023 but they assume that the expanded tax credit expire and president biden wants to make them permanent so, we'll see what happens there. many of the households that didn't pay federal income taxes do pay lots of taxes

payrole and exize taxes. and a very large number of americans who, last year, didn't file or pay any taxes. back to you. >> some astounding numbers and it does add up, robert jiening us to discuss this and a lot more this morning is p pulitzer-prize winning you have long taken a long look at tax policy from a lot of angles you seem to zero in on, not only who pays but who gets a credit >> right we don't focus that much on the low end of the tax bracket so, i think it's healthy this study has come out and we're taking a look at this. it's a pretty eye popping number of people who don't pay taxes. i personally wish everybody paid tax because it binds us together as a nation and that means

people are making money. that good news about people who pay tax. but when you look at the large number let's strip out the elderly, the young who don't work, you have people who make money but because of the credits, it gets reduced to zero or less than zero the government actually pays those credits back to people and especially when you're talking about a lot of people struggling to get ends meet. you want to take aim at any of those credits? if you're a progressive tax policy ad heernt and there are many, you would applaud these numbers because, as income disparities have grown, you would want to see a higher per percentage being paid by the upper bracket. >> i mean, it's a key point, especially as we see the child tax credit rolling out into people's bank accounts as well $3.5 trillion social

infrastructure-based package being debated right now and in congress as well and i wonder what reports like this will do to those conversations as we have this burjenning deficit and lawmakers, including moderate lawmakers on the left who are trying to see how we're going to start to pay for some of this. >> right i think it's definitely going to heighten this debate, particularly about the idea of extending stimulus payments or even getting into an area that i am hearing more and more talk about, which is the idea of a guaranteed minimum income. but for the traditional credits, which are basically the child credit, the education credit, the health care premium credit, the earned income credit, i don't hear much debate about that i mean, those are fostering policies that most people agree with and they do benefit people who, as i said, are struggling to make ends meet and they do

pay a disproportionate percentage of things like sales tax, which hits them much harder than the wealthy i think where it's controversial is with the biden plan to extend stimulus payments as we're creeping towards, what many progressives favor a system where the government is beginning to put a floor under people's incomes this whole idea of a guaranteed income and i think that raises practical issues and very important philosophical issues about the role of government in our economy. >> jim, we're old enough to remember -- i think it was mnuchin's conformation hearing where a big part of the discussion was closing the tax gap, getting uncollected dollars in coughers. where are we in the argument right now? there does seem to be a sense that the irs is behind the curve

in collecting taxes that americans legitimately owe >> it's that also the very fascinating debate studies are suggesting that noncompliance has become a bigger issue as irs enforcement has gone down. on the other hand t doesn't seem to be getting much traction. the republicans came out against it i think there are a lot of moderate democrats hearing we don't want to be audited there is a cost to that. particularly an audit. i've been through a few audits and it's very time consuming and i have to say a rather unpleasant experience. dredging up all those records, having the person actually come in your home it's labor intensive for the irs and also for the person being audited. so, i do understand that you don't want to go overboard on this i think -- can i make my usual

pitch? i hope that with these new tax plans, there will be some elements of reform because you can raise a lot more money than you would get from higher enforcement if you close some of the obvious loopholes, many of which favor the real estate agency and the interest loophole i mean, everybody is against it and yet it lives on. i would love to see some of the loopholes closed >> we've been paying attention to white house standing in general, as afghanistan has descended into chaos some are making the argument that tax risk, to the market at least, has eroded a bit because there's less of a chance of moderate congress people in the house to join in with policy that might introduce risk to stocks you think that's fair?

>> i think the tax risk is always been an interesting question whether afghanistan undermines his support, particularly on the progressives, who are the ones trying to hold infrastructure bill hostage and pushing for much more aggressive taxes cuts. i'm skeptical but still think -- i mean, there are moderate democrats and even not so moderate democrats, that i think, deep down, are a little concerned about how much money this additional program is going to cost and how much taxes are going to have to be raised to pay for it i think the risk of this going through, as proposed by biden, is relatively low. >> jim, good stuff maybe next time we'll talk a little bit of trading. great to see you again >> you too bye. >> as we head to a break, check out shares of macy's, a day

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it is now time for etf spotlight. ticker smh up almost 17% this year applied materials is one of its top holdings beetsz on the top and bottom line while raising guidance. revenue rose to record 6.2 billion from 4.4 billion a year ago as you can see, down about 2.5%. still up something like 45% since the start of the year. >> still to come, companies continue to warn of breakdowns in the supply chain.

we'll talk about the port of long beach s&p is no longer on track for the worst week in two months down about eight-tenths for the week

welcome back to "squawk on the street." here is your cnbc update at this hour a chaotic scene in kabul airport in afghanistan taliban fires firing shots in the air to try and control crowds gathered at the airport's walls, as the u.s. military ramps up evacuations israel is expanding the covid booster shot program, giving third doses to people over the age of 40 and also frontline health care workers. last month israel began offering booster shots to those over 60

apple delaying return to office plans amid fears of surging covid cases. the delay applies to all corporate employees globally they previously pushed back the planned office plan until august and a unique way to encourage young people to get vaccinated they set opcostume contest to encourage people ages 18 to 29 to get the vaccine one person saying he was feeling nervous about getting the jab but putting on a costume made him feel stronger. >> okay. whatever it takes. >> whatever it takes also, thank you. supply chain constraints continue to weigh on the company's quarterly results. we spoke to the ceo's of macy's and intel. >> this is a moving target, the whole supply chain situation

i think everybody who's come on the show, who's delivered earnings, whether you're an automanufacturer or high-tech company has talked about these challenges we think it will be with us through the first half of the year, january, and we did say it could move into the second half of the year. we're just going to have to wait and see how things go. >> as you've seen with u.s. government efforts around the chip sack, we're going to build a lot of the factory capacities with u.s. engineering and i.p. to help establish what i've called a more globally balanced and resilient supply chain >> what we're doing is making sure we're highly flexible with them we're bringing those forward we're using our muscle and overseas supply chain to help them if i have container opportunities, i'm bridging merchandise on with us i mean, we're all in this together

>> containerships are on california's jammed ports. port of long beach executive director, who is unveiling an automated container terminal today as well. great to have you back on the show let's start with the adoption of technology, i would imagine, is getting right at this topic of port congestion. >> good morning, morgan. absolutely they invested $4 pillian over the last four years and projected another 1.6. today you're going to see the fruition of one of our mega projects and we're excited about this terminal. it's going to have the capability of 1.5 million containers annually and increasing capacity. >> in terms of what you are seeing seeing on the ground at the port, we know one of the biggest ports in china is partially shut in right now

we're getting reports that there are containerships piling up, if you will, off the coast of california just how great are the delays? >> the last year, clearly, in the global shipping community, there's been disruption in the supply chain and we're not immune to that so, it's an ongoing dilemma here i can represent to you thapt everybody here are putting a full-court press men and women on the doc, terminal operators and our relationships and collaboration with marine terminal operators to create efficiencies ironically, our billions of investment is come nothing to fruition, not only with long beach international gateway bridge, but the container terminal if not the world it's going to go a long way in terms of making sure that we

address the movement of cargo and create greater capacity. >> understood. so long is it taking for a container to get unloaded, off the ship, and i guess moved across the port and on to a train or a truck for its final destination? >> well, once that cargo ship gets to the birth, the average time is three to five days keep in mind the other aspect to this situation is these ships, these mega ships are a lot larger than they were ten years ago. come coming into the port of long beach, we've had as many as 24,000 containers on a vessel. ten years ago, the largest vessel we had was 8,000. not only do we have more volume but when a vessel arrives, the loading and unloading of the vessel is a 24/7 operation by our marine terminal operators and dock workers we're doing all we can to create

efficiency in the port of long beach. >> we're all old enough to remember what different variants are the original even version of covid did to man power at ports. how is it different now under delta than say in march of 2020? >> the good news is an overwhelming percentage of our dock workers are vaccinated. and according to the mayor, robert garcia and governor newsom to get everybody moved forward to make sure the first thing we need to do is vaccinate the dock workers because they've been working day in and day out since the pandemic the delta variant is effecting every industry, whether in business or personal life. but the bottom line is the dock workers continue to work right now we don't have a labor issue in terms of shortage of labor. but again, obviously the delta variant is concerning no matter

if it's in the port or nationwide >> so, of course, it is a key time of year for those containers to be moving through the ports right now with back to school and the holiday season and inventory rebuilds that are afoot for many companies right now. what do volumes look like? >> the good news is the trajectory of the economy is great. we have a movement on the plus side going back to maybe the early '80s that we last saw this kind of trajectory the gdp is going to hit 7% compared to 2020 and perhaps exceed that. a lot of consumer spending, demand, and again, i think we're in peek season and what it means for the port of long beach, we will have a record year this year. perhaps at the tune of 9 million. and together with our neighbor port, port of los angeles, i think we're going to see

movement here in certain california 19 million containers. there's no other gateway in the united states that approximate mates half that number so, in context here, we're moving, this year, 19 million containers and anytime you had that kind of volume, bottle necks are created. the good news again, i think again we're doing a very good job in terms of moving the container, once it gets to the birth, out of the port, and of course, again, i can represent to you there's a full-court press in dealing with every aspect of this but again, keep in mind 18 million containers >> yeah. it's a huge number so, just to put a fine point on this quickly, mario. how long would you expect this level of congestion to persist >> i would say that, as we look in the beginning of 2022, we're going to get to some form of

nourmalcy. normalcy last month for july, it's diminished some. so, i think we're beginning to see a taper down >> thank you for joining us today. >> thank you so much for the invitation >> coming up after the break, the stc renewing claims of antitrust against facebook competition beat us again. how? they have a better finance system than we do. i feel like they might have

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the ftc out with the latest bid to break up big tech the amended complaint two months after the foederal judge siting insufficient evidence. and bill, as they say in the complaint, "after repeated failed attempts to develop innovative mobile features for the network, facebook had a buy

or scheme" >> it does two things to resolve concerns that the judge raised two months ago they were concerned that the ftc had not provided enough information to show facebook was a monopolist in the network. and the second was to elaborate the story about how facebook had limited the ability of networkers to develop products in a way that might compete against facebook as well so, the ftc bolstered its complaint by saying more about why it's monopolist and by telling a refined story about how it sought to suppress the efforts of developers too, develop independent challenges to facebook itself >> even more interesting is the notion of who exactly is a

competitor they did say tiktok does not let people interact with facebook. because tiktok does not allow you to interact with friends and family does that make sense to you? >> typically at this early phase of the process, the burden on the agency isin not to resolve l of these questions, although that is going to be contested actively you can be sure that issue comes up at the next stage, which is often called a motion for summary judgment, if the judge lets this go ahead >> for years now, there has been talk of possible antitrusts scrutiny, we've seen lawsuits. all the regulatory everything and yet investors have shrugged it off and stocks have continued to move higher

given the amended suit, does this include a tipping point are we still looking at years, potentially, of litigation >> we are looking at years of potential litigation i think the judge will say this amended complaint clears the hurdle in the initial litigation but it means it might go to trial some time in 2023. if we take the department of justice case against google, that's scheduled for december 2023 that's two years from now. we might not see a resolution, even at the trial stage of these cases, until 2024/20 twoivl. if you tack on at least one year for appeal, we're into 2026. some time in our lifetimes, these cases will be done and if i an investor, because of the uncertainty that goes ahead and duration, i want to wait until i see that these are

moving in the direction of a decisive move to restructure the communities. the ftc sharpened its complaint for investures but the point you raised is so important, which is in an industry that changes so fast, we're probably four, five, or six years away from a resolution of the case. >> what you just said though gets right to my next question which, if devestures is a big focuses -- >> they'll be follow bood ithe department of justice and they're trying to slam on the brakes the ftc, under the new chair, lena khan, has issued a number of statements designed to caution them about doing new deals. if we're going to bear down on a whole host of transactions,

especially by a smaller emerging competitor the deal-making environment has become somewhat more uncertain but for investors and observers, the real measure of hew effective your commitments are is can you bring and win merger cases? i suspect many advisors are going to wait and see can the doj, federal trade commission deliver on their threat to bring additional cases and win them. >> you mention khan and of course we all know personnel is policy she's not going to recuse herself as facebook wanted and the company has until october 4th to respond is the money that she will not recuse herself from any part of this >> the choice of going back into district court and to refile the complaint in district court reduces her exposure, the commission's exposure on the recusal point. the ftc, as you know, can bring cases internally, through an

inadministrative process, where the ftc is the ultimate decision maker. in that role, the chairman and her colleagues perform the function of being judges if you go to federal district court, the decision making is ultimately in the hands of the judge. and all of the for participation in this matter there's a strong chance they would force thiss issue in thei chance look for a possibility that they raise the issue and say you have to knock the whole thing out because she shouldn't have been in

the ftc would have broadened this whole thing out >> defense merger activity was concerned. we've heard from the ftc on some of the deals out there because it has been such a robust pipeline this year merge at your own risk does this represent or set a new res pent in the new deals moving forward. just as importantly as some companies start to imply it, is it all legal >> within the bounds of existing rules. all of these always existed. what the chair has been doing is turning up the volume and saying these possibilities for challenge should be taken more seriously than before. there again, the real measure of how effective this is is could you go into court and win some

cases. those who are convinced that they have good deals are ultimately going to put their cards on the table and call the game and say show me their cards. the ftc's possibilities of extending the front years face a lot of challenges going to court. the courts are generally disposed not to interview aggressively >> that is a great road map for some policy not easy to understand we are grateful. thank you so much. >> thank you still to come, we speak with the hedge fund manager and more from our conversation with kathy wood ourself beginning at 11:00 a.m. eastern time. we are back in a moment.

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stimulus and their own strategies store traffic was strong raising forecast for the remainder of the year. macy's and kohl's blue past on sales implying a strong second half of the year thinking part of the success in tale winds and told me the exclusive interview, he thinks the momentums are sustainable holding on with the gain in the quarter. kohl's had a 10-year high and expects to hit 2023 profit two years early. the ceo told me she hasn't seen any changes another successful

quarter with higher prices transportation and more. back over to you >> a busy week with great reporting and interviews thanks for wrapping it all up. we've got major averages rebounding but still on track for a losing week. tech, squawk on the street is done and tech check startsnow. ♪ good morning welcome to tech check. elon musk ai ambitions are head and shoulder