in the meantime that then they don't have enough tools to fight that mini crisis, whatever that may be it's usually what we do see coming that hurts us the most. i do think there's plenty of capital there but we have to be careful about the timing of rate hikes. >> all right liz, thank you this morning. we really appreciate it. >> we've got to say good by. thanks, mohammed, thank you, kelly. >> thanks for having me. >> time now for "squawk on the street." good monday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer david faber is back. the bounce continues futures are green, the market looking for more signals that maybe the delta variant is peaking out in the south and that risk is to the doviish side this weekend at jackson hole the fed's annual symposium is going virtual as the fda prepares to give pfizer's

vaccine full approval. and a judge ruling that the so-called gig worker law approved by california voters is unconstitutional uber, lyft and doordash are all down in the premarket. and robinhood is moving higher several firms initiate coverage today. we will get to all of them first up, though, jackson hole of course as you know by now is going virtual, one more casualty of the resurgence in covid and the delta variant. a lot of notes out this morning, jim, suggesting that powell is not going to say anything market moving >> i don't know how he can we've got this major public health issue every time we think that we've got covid under control, covid surprises us so if you go back and look at april, may, june, you saw that the cdc was saying listen, maybe we don't need to test. you've got your vaccine, you're done then in july we discovered, no, you need more testing. we're going back to school, dr. gottlieb says, well, we're okay. maybe it's peaked but we still

have the school time why can't we just wait or powell wait like six more weeks to see what happens with school, because right now the idea that it's really a monetary issue or financial issue or anything other than physical issue other than doctor issue, david, is really, i think, ill advised. >> yeah. although if you want some positives, you don't need to look too far scott gottlieb on our air earlier and carl has been retweeting some things in terms of cases peaking in the south. the rt actually below 1 in many of these states. that's a good thing. that's even with kids coming back to school in florida. >> right but we haven't been hit up here. i think that the third vaccine matters. i do think that as we get eight months, eight months, eight months people will have to do something. so i just think if you're jay powell, why not just say too early. let's see if we've really beaten covid or got covid under control. david and i were talking about

why don't we talk more about is the flu more dangerous now. >> you're vaccinated against covid, is the flu more dangerous for you than covid is if you were to get it having been vaccinated i haven't seen the data. i don't know. >> long covid does matter. we're all concerned with long covid. but in general, there isn't anything with j&j, pfizer or moderna that makes you feel that you can't stay out of the hospital but the comorbidities we don't know. >> but there may be a psychological barrier as well because it may well be that it is less dangerous than getting the flu. >> then why is such a hybrid environment. >> i asked you guys during your flu vaccine or why you aren't wearing a mask during flu season. >> i think now in japan i want to wear a mask during flu season remember the cold and flu season almost didn't exist because of

masks. >> down 90 plus percent. incredible numbers last season talking about vaccines in general, we are thinking that the fda will issue approval for the pfizer vaccine "the new york times" said that was coming today back on friday. jim, the thinking is that it would possibly bring holdouts off of the sidelines and then get legal support to vaccine mandates, the likes of which we're seeing out of chevron today. >> i definitely think it's the latter again, i hate to just completely parrot dr. gottlieb but he does seem to know a great deal. the idea that you can mandate is just stark after this. there's no excuse of a company or a college i mean when you want to go to college, you've got to get vaccinated for meningitis. i don't know if i want the vaccine for meningitis but i've got to get it. how can i not, if i lump meningitis and also by the way covid, who's going to fight that every college has the ability to mandate meningitis so i don't understand, carl, why

we just don't add it to the cocktail >> it would seem it will be. >> it will be, and that's going to be fabulous -- well, i'm obviously a pro vaxxer 50% is pro vax and the other people it's not clear. >> i think the numbers are higher than 51 i think at least in some polling. that said, guys, jackson hole goes virtual many companies pushing back their return to work. >> right. >> until next year, which makes it almost a full two years for -- not quite, if they do come back isn't january. and the changes in behavior have been cemented. you know, this conversation that we've been having about returning to work, which we started to have a few months ago when it looked like everybody was coming back in a couple of weeks, now it's much more unclear. but hybrid -- there's no doubt that that's here to stay so many people are going to be resistant to changing a routine that's embedded in their life

given it's 20 plus months. >> a great piece in "the journal. if you have a little blip, people go back to the old way. this ain't a blip. there is no going back to a full in-office environment. >> i have a way to be able to measure this that's not been talked about at all. estee lauder they have makeup and skin care for the longest time, makeup, because it's a selfie generation, had been the predominant way they made money. it's now skin care why? masking and it's only accelerating i think that masking, stay home, it's the new norm. by the way, it's hybrid, carl. >> we're not -- i'm not suggesting we are a proxy for anything, but we've been coming in here five days a week since, what, june >> yeah, since the beginning of june the three of us, yeah. >> is that an argument that this is doable or something about television is special and you kind of have to be there because doing the show from home was

difficult? >> i take my mask when i'm up here, otherwise i have it on 100% of the time. >> many of our colleagues are working from home and doing a really good job, by the way. i'd love to see you sometime. >> did you wear a mask on "jeopardy" >> i did except when i was on set. i tape that he had in april, early may and the protocols were extraordinarily tough. the unions and sony very tough. >> but you wear a mask on the subway. >> of course. >> of course. >> but that's also mandated. there are quite a few people who don't. in fact i think i'll upgrade that mask. >> going to an n-95? >> yeah. >> that means you're protected but not others are you okay with that >> yeah. >> looking out for numero uno. >> we're in the office, we're coming into the office maybe we'll be outliers coming in five days a week. but our larger organization, many people working from home. nbc our even larger

organization, 30 rock is still empty. >> if you're a comcast person who goes and fixes cable, you're not working from home. >> no. >> there's an idea for you, right? >> but office workers, you just of to wonder at this point we've this conversation about commercial real estate and all the businesses relying on people coming to a city center. i don't know. >> gottlieb talked about this point and whether or not vaccine mandates would help bring workers back closer to full time here's what he said. >> with respect to businesses, i have talked to a lot of businesses that have said that they don't feel comfortable man dating the vaccine until it gains full approval. they feel they'll be on stronger legal grounds to mandate the vaccine. i would expect a lot of businesses to fall in line in terms of mandates. >> we'll see what that does to general transmission rates. >> i also think that -- i think people -- there's a considerable number of people who don't want to go back to work because it does seem scary. and then there are people who

are with the benefits don't want to go. i have lyft and it had an excellent comps call they said the number of people who come back to work after the unemployment benefits are done indicates that there's a two-step process that people who feel that they are less concerned, that things are going to be okay, they feel things are better, because of vaccination and people with unemployment i think this will play into jay powell's hands i think the idea that we're going to continue to see salaries go up, david, is ridiculous we can't not with all these people coming back to work. >> not with all these people returning to the workforce >> plus, remember gina raimondo, the commerce secretary she is saying if you send kids back to school, the women in the workforce will come back and that they have really been a

absent i think jay powell will make fools of those who are treating him as if he's a pinata. i felt like getting in there to see if i could get some bubble gum. what happens when a pinata breaks >> i think it hit a new record, 8.4 trillion, something like that >> he's back >> think about that. think about that number. think about what that number has meant and has it exacerbated the divide between rich and poor has it made the rich even richer, all of this enormous liquidity that's available for everything >> when he talks about the common prosperity. multiple times, common prosperity david, i don't know, how do you feel about that? >> i mention that here and you went immediately to china and xi. >> well, they're worried about trying to change this idea of the rich and poor.

>> yes well, the concern is they'll crack down tont wealthy in china and that's why you're seeing some of these luxury businesses -- >> i wouldn't want to be in that business. >> -- that have been getting hit. many of the china stocks have been suffering because of this new data law in china. the government knows more or less everything because it's a surveillance society there for the most part. but the companies are going to be prevented perhaps from knowing quite as much. alibaba shares are going to be down again i believe in the early going. we can see how they perform once we open. >> i know you're not a communist. >> no, senator, i'm not. >> do you know that there are 57 known communists in the state department how did they pick that number? >> after all, we're not communists. >> look, to get back on track.

i do think that labor could -- the escalation in prices to get labor, there will be a lot more people coming back into the workforce. i'm talking about lyft and -- i think lyft and uber are very good temperature takers. >> well, to that point morgan stanley names at least uber its top non-faang pick for 2022. 80% upside to the $72 target. >> wow >> look, there are -- obviously the california decision could hurt them but i think that's going to appeal different. but i do think when you read through that conference call, there are multiple ways that they make money. i think it's pretty smart group of guys running that company they can be a force not just to move people but to move things and we don't talk about that enough. >> jim, real quick to come back to china because it's worth mentioning now is the chinese approval for the analog devices.

but you may start to see some spreads tighten a bit. remember, regulatory approvals coming out of china has been certainly a key consideration for many who play these takeover names. that deal got approval, it's done. >> on the comps call last week -- >> remember, this was the first post-pandemic deal, they negotiated it virtually. it was announced a long time ago. >> on the conference call i felt one of the reasons analog devices first went down was because this deal would not pass muster what does it mean for xilinx one more victory for dr. sue, i think. >> what does it mean for arm and nvidia that's probably a different take >> now, on this nvidia conference call, there's a moment where colette crest says

yes, indeed, it is taking longer than we thought. irony. notice the -- well, the nvidia conference call was so brilliant because they had that wormhole comment, which is how you can get into the virtual reality david, you know what the word for that is? >> metaverse. >> oh, jesus you've got to state it in the form of a question. >> what is metaversie? when we come back a lot of calls to get to. several firms initiating robinhood. we'll break that down. and outperforms for amazon, soft, peloton, exxon futures are green on this monday don't go anywhere.

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robin hoohood is up in the premarket. several firms initiate coverage today. it's a mixed bag of ratings. jpmorgan is underweight, price target 35. goldman neutral, target 56 and jpmorgan's words, we see a number of risks, including regulation, pricing, market saturation, that we think limit their ability to reach competitive margins and profitability. >> this was a devastating initiation devastating because it's talking about everything from way too much optimism in the market. basically the market has been great ever since it started but

there's this endless genzler mention. s.e.c. s.e.c. chair genzler could target robinhood practices david, do you want to own a company that could be targeted any minute or do you want to own a company that is revolution earning and get more people involved >> when you look at valuation, and i'll go back to jpmorgan, they're saying 14 times 2022 revenue. so 14 times next year's revenues a premium to other innovative but profitable financial tech growth peers is what they say. and they evaluate it on a per account basis at 744 with over 40 million accounts they expect in 2024. that's how they get to their price target of $35 a share which is well below where we are. >> i'm kind of in the middle which i guess puts me with a bit like the golden piece which says there's a lot of things that could go right

impressive user acquisition engine and financial services is pretty good. frankly, if they can continue to invent ways to get people, that's what they have to do. i feel like in some way the jpmorgan piece looks very static it says all they're going to do is continue to have people trade. they do come back to that one thing that bothers me which is half of the activity is options. that's great if you have -- every dip is good. but i've got to tell you, carl, if your business is based on option trading, historically that's not a not great way to do it >> we talked about a shift from options and memes to crypto. we do have bitcoin 50k today, highest since may. >> and we had pomp on earlier and he reiterated his 100,000. every time it goes up, we put him on and he tells a very compelling story it's obvious when you read the robinhood conference call or talk about paypal going crypto

in uk, this is all based on demand visa, based on demand. not only that, the nonfungible tokens are back. >> the nfts are back >> because they work in the metaverse. >> they work in the metaverse. >> yes >> by the way, back to work, we'll never go back to work when the metaversion -- >> he said the metaverse economy is twice the size of the regular economy. >> is it really? >> he's smarter than we are. >> does everything cost twice as much >> they have $2 stores. >> clothes are cheaper. >> we'll get cramer's mad dash and countdown to the opening bell as futures look green to start the week don't gonyer awhe.

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let's get to a mad dash, as we get ready to start trading for the week, about seven and a half minutes from now. what have you got? >> david, we have disrupters everywhere, right? many industries have been disrupted. did you know that the grill industry is being disrupted? it's being disrupted by traeger. it has disrupted the grill market with a growing consumables business and the traegerhood of brands. remember, we had webber. >> traeger just went public here very recently. >> we had them on set last week. david, it's a plug-in. it's electric. it's electric. you know, kind of like that dance. and the financial model, this credit suisse piece makes me feel like everyone at $33 you've got to buy it.

morgan stanley thinks it goes to $28. the main thing is weber will be out there next week so it's weber versus traeger. >> well, you bring it up if one has to make a decision, you interviewed the weber kreceo when they went public. >> i think it's a more consistent player, it's been around forever i think traeger is for the robinhood people >> traeger y, weber. >> i work on english. >> who's more macho? >> weber, man. but do not put gasoline on the coals, david i once saw someone do it and -- >> right. >> did you get that? >> yeah, i did you've got to clean your grill too. >> this traeger, you plug it in, you put the wood pellets

>> it's not a disrupter, weber. >> no. >> doesn't disrupt jack. >> got it. >> traeger shares looking up don't go anywhere, we're back after this you can catch us any time anywhere, listen to and follow us on the "squawk on the street" opening bell podcast we're back in a send co

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uber, lyft and doordash all under pressure in the premarket. on friday a judge in california ruled the state's gig worker law is unconstitutional. california voters had approved a ballot measure last november allowing those companies to treat them as independent contractors rather than employees. uber, lyft and doordash plan to appeal the ruling. b of a says the street is likely to see the appeal being successful but it could take close to a year if it goes to the state supreme court. >> the research is saying this ruling is not going to hold up it is important because everybody costs a lot more the value proposition is not

clear if they all have to stay paying benefits. >> under the law, under prop 22 they were paying if you worked a certain amount of hours, i think 15, you were eligible for certain benefits so there was an additional cost being borne. we talked about the price of your uber or your lyft is not what it was a year ago. >> no, wow. >> it's gone up. >> but lyft says they have many more drivers coming and they're making a point that lyft and uber are not the same. really to the point where they're saying, listen, our benefits are greater so people are becoming lyft drivers and not uber drivers i don't know, carl, look, i'm an uber guy that's probably -- at this point i think that's probably wrong judging by what lyft said on the conference call. >> they don't have the optionality of eats, right, as much. >> and the eats business is great. the drizly business was an

brilliant acquisition. sending liquor that was the missingin in gredt of dining at home. >> yes and now it's not missing >> yeah. >> not missing. >> well, the data says it's a big deal. >> let's get to the opening bell cnbc's realtime exchange at the big board. it is kensington capital celebrating its listing at the nasdaq its bike new york a nonprofit that promotes cycling. >> nonprofits remind me very much of spacs. there was a piece out last week, one of the fantastic strategists at jpmorgan. it was devastating it basically says if you bought and hold a spac -- david, let's just say his spac scene shows you post merger buy and hold investor gross returns minus 15%. this is the median post merger buy and hold returns

versus ipo index, minus 68%. >> it has been a tough run for spacs. earlier this year that's all we talked about when the issuance was through the roof by the way, they continue to come public. they continue to be looking for deals annual we continue to see them that gives you a sense remember, we have our three different indexes. there's the cnbc post spac that should know at 100 or that's where the numbers should be if it was flat, so it's down. >> what do you think about this axios piece. >> after they announced a deal -- guys, even though i help create these, i forget we've got spacs that have not announced deals. >> right. >> we've got post spac and then we've got -- right, that's spac deal looking at my producer, carrie i'm not remembering which is which.

there's the spac 50. those are the ones that have gone, that have announced their deal and closed their deal, right? okay >> well, there's a very good piece by axios out today talking about by the numbers in july the majority of spac deals saw redemption rates north of 50% about a quarter had redemption rates of 80% >> listen, we got a new one today and it's a big one we'll have richard branson join us vi virgin orbit this is not putting tourists into space, this is putting satellites into space. we'll have dan hart, the ceo and sir richard join us as the founder of a $3.2 billion deal with nexgen 2. it's up but they're going to raise $483 million that includes a $100 pipe. by the way, that pipe number is well down from the likes of

which we had seen during the height of spac mania which you'd get 300, 400, $500 million pipes. so strategic investors that are in the industry in boeing. and they are hoping to close it by the end of the year by the way, nexgen 1, we had them on. they did that last mile trucking company. it's now -- take a look. what was the symbol there? the point we're making here, guys, that was about $7 or so. >> how much? >> i think we have it there. nextgen -- yeah, xos $8 it actually went up. but that's closed. i thought that closed. i thought that deal actually closed on friday. >> the key is to get to 10. >> it's well below 10. this has been one of the key questions throughout there are certain provisions in

nextgen 2, this deal with virgin orbit in terms of the spac shares, the lockups and a lot of other things remember, you weren't -- there was not a similarity in terms of risk taking for those who bought stock at 10 versus the founder shares who would make money to as low as 2 or 3 when you did a sensitivity analysis on a lot of these early deals. hence the s.e.c. is taking a closer look, genzler is taking a closer look. >> isn't this spac scene, isn't the piece that the exhibit you need to close the case a sucker is born every minute if you do this >> he has a history of opining out of consensus, right? >> which makes me his favorite have you seen his bluefish recipe >> i do remember his scenarios for watching the government implode back in october, yes. >> i think he's got some actual

stats here that don't lie. is this a mark twain kind of stat you think >> no, listen, we've been saying this -- >> you've been you've been critical. >> that you've got to be aware of it. listen, spacs are here to stay there is going to be a use for them, a use case for them, i think, but it's not clear. there have been changes, but it's still not clear to me that the investor and the founder incentives are perfectly aligned. >> the sponsor returns are up 500% so what you want to be is a sponsor. >> without a doubt >> let's go sponsor -- >> it's too late we missed the window to that point 15% of sponsors founder shares and private placement warrants will be subject to a earn-out. 50% investing at 12.50 and 50% at 15. they also have lockups 25% 180 days, 25% -- so it has

to be over a two-year period for them to sell out at a significant premium. that said you have to keep it well below 10 for them to make money. off the bat, they're $80 million, i think 8.1 million shares >> they often have such -- remember all the charging companies were so great. the battery companies. the one that david introduced to us, quantumscape >> one interview and i'm the one who introduced it to us. >> you are the poster child for -- >> he's had him on 17 times. >> it doesn't matter, it doesn't matter >> it's down a lot from the $100 price. >> but it's still up. >> jim, we made this point that the pain in many spaces has been clouded or covered by the strength in mega cap tech. you see baron's over the weekend? best business models on the

planet and the reg risk is likely to go away. >> the number two one is microsoft and they have been able to get away with everything, including jamming teams down my throat that's not that good for marc benioff. teams i can't disable. core tanna i can't disable now we have breaking news, can you believe it >> we have breaking news. >> we do have federal regulators have in fact granted full approval to the pfizer/biontech coronavirus vaccine. the first licensing of a vaccine for the coronavirus officially which is almost a year and a half old >> well, you know, they only have to give it to 4 billion people before it's okay. it really is kind of a farce remember, they were saying it's not going to happen until after

labor day and the president said perhaps it should be sped up. >> yes unclear, when do we get moderna as well? >> a few more weeks is what gottlieb was suggesting as well. >> moderna shares are up almost 4% we talked a lot about that stock of course because of its incredible -- >> best pmerformer. >> -- move >> back to the mega cap story. whether it's apple with its service revenue, and i've got -- i have someone on tonight from palo alto net. he teamed up with google let people see these press releases come out and no one cares. remember, google is the best analytics company. they are the best. so he teams up with them, nobody cares. but you've got companies that have so many great things going

that nobody cares that google analytics is so great. it's like, yeah, they're great amazon, they're great. no one is even able to touch these companies. >> alphabet shares are up 59% this year. it's pushing towards a $2 trillion market value to join microsoft and apple at that level. >> i think it must be -- facebook last week did some cartoons that were really kind of stupid. mark zuckerberg had them cartoons on metaverse. i'm stuck on metaverse >> you should be and we've got to learn a lot more about it because he seems very focused on it and we'll all be living there apparently. >> he says it's the most important thing he's ever worked on at facebook but he had these cartoons that looked like hangman or something. but if you look at what jensen is, jensen is talking about identical -- you create yourself in the metaversie and it looks

just like you. it's not stick figures and drawings. >> do i create myself as i am now and even 20 years from now i look the same or do a age in the metaverse? >> i don't know. i think your avatar is your choice >> will i not move as quickly or can i create my 25-year-old self. >> i don't know. i don't know the answer. >> will i feel 25 again in the metaverse? >> enough with your stupid questions. i have no idea i'm not in the metaverse i think in this verse. >> at least for now, where, guys, we still rely on fossil fuels. you see energy up 3% >> it bounced right off. i think 60 is where people kind of cut back and then 70 is where people put more -- this is opec plus a lot of the u.s. companies, the recount keeps going up, which is surprising but i think that we see -- it's

almost as if when oil goes up, the market goes up that is a false construct, but it is a big deal that 60 -- it held 60. a lot of people thought it would go to 50 and it didn't >> even airlines, american is up 3% norwegian up 3% after the cdc on friday said even if you're vaccinated, if you're at risk, avoid cruises. >> i think that you've got to go norwegian because norwegian was able to get that ruling, that federal court ruling which says, hey, you know what, we're going to make it so you have to be vaccinated and we're not going to have kids if you want to go, david, i suggest the norwegian haven, which is first class and you take the norwegian haven to alaska and you get to look calving you know what this is? >> yes, it's the glacier.

>> any podcasts where you've -- >> no, i'm pretty clean. that said, i think you would probably be a better "jeopardy" contestant than i would. >> no, i don't know. >> but i might be a better host than you i think that's -- i think that may -- i may have proven that. >> i would like to see you host once. >> i don't know. if he starts hi. you do that hi remember how you started and you were so authoritative. he gets up let's get right to it i don't know, no one can beat you. you were the best i've ever seen since art fleming. no one even knows who art fleming is >> forget that other guy who did for it 35 years. >> there's art fleming, and then you and then alex, okay? there you go. >> oh, man if anybody wondered whether he's hyperbole -- >> well, you say i am from the world of finance >> they're playing music on us.

>> you said i am from the world of finance what's your quote? >> i think i was talking about we live in a world of facts in the world that we deal with and that's why i love "jeepopardy." >> you want a fact alibaba is down. >> you know what that is common prosperity. get used to that term. >> we've got to look at the chinese stocks we'll do that after the break. let's do the bonds as well take a look at treasuries as we keep an eye on yields. existing homes at the top of the hour overall it does appear to be a reopening play you've got caesar's, wynn, american, royal caribbean higher losers tend to be general middle and cloroxes of the world. we're back in a moment

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cme hq with breaking news. our august preliminary read on market, markit, manufacturing pmi, service pmi and composites. it's a little light at 61.2. last month 63.4. still represents the post-covid high now, services much weaker than expected 55.2 that is the lowest level since september of last year just several months ago we reached a high water mark at 70.4 it seems that the variant has taken a bit out of the service side and that leaves the august preliminary composite at 55.4. that is the weakest since december of last year. "squawk on the street" will return after these messages. l cl cookie dough p creamy premium ice cream and chasing fireflies. don't worry about me. i'm fine.

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it's taken a lot to get to this moment. ♪ grew up at midnight - the maccabees ♪ dreams are on the line. you got this. refresh... it all, comes down, to this. ♪♪ >> yes, that is the name of the pfizer/biontech covid vaccine getting full fda approval.

the first covid vaccine to do so and this is for people ages 16 and up it will continue to be available under emergency use authorization for people ages 12 to 15 and we're still waiting on clinical trial results for kids under 12 so that is something that we are going to be looking forward to seeing in the next couple of months this really is for adults and people in their late teens and the fda's acting commissioner pointing out that while millions of people have safely received covid vaccines, we recognize for some the fda approval may instill additional confidence to get vaccinated she says today's milestone puts us a step closer to altering the co course of this pandemic in the u.s. the expectations this could trigger employers, universities and others to mandate a vaccine that is fully approved and not just on emergency use authorization. it's been through the legal

system and has been held up in the courts that you can maneua cleared vaccine. we will see if this increases the domino effect of mandates and tip some folks over on the fence not feeling comfortable yet but will feel comfortable now. guys. >> hey, meg, it's david. just talk about pfizer for a moment a bit more here i mean, they recently said, i think, what they are going to sell $33.5 billion worth of vaccines in 2021 do we think that this raises their sales forecast even beyond that >> it's entirely possible. they have more capacity to sell. to it could go higher. you know, part of the issue has been getting access to countries that haven't been able to get vaccines yet and so that's not going to change the equation there. but whether this becomes more of a repetitive revenue stream and

the full fda approval plays into that, and also we could see changes in the way pfizer markets this now that it's a fully approved product we see direct to consumer advertising of the covid vaccine? i asked pfizer that question and we will let you know what we hear this could change that communication we hear from the company, too. >> jim, i see you have a note about pfizer trillium. >> i have felt, meg, i'm sure you feel the same, there is a patent with pfizer people have been very concerned that maybe this is not the time to buy the stock we will wait a second. trillion therapeutics, they are paying 18.50 for it. i think this is the beginning. this is the beginning of pfizer putting money to work in order to make it so they have no plenty clip. they have endless firepower. watch for many -- given that they had investments -- watch for many acquisitions by pfizer that will make it so that you are not worried about the longer

term one of the reasons why pfizer is getting a higher multiple not just because of the approval. >> meanwhile, a year ago you could have said, well, pfizer is going to have $33.5 billion in revenues you weren't expecting in 2021. >> it's incredible they can buy -- well not saying they could guy anybody they want but let's say they wanted to buy -- and they are not doing this say they wanted to buy bristol-myers. okay that's the firepower they have this is not like the old days. >> meg, thanks you to. we will check in with you on this important day regarding the confirmation of that approval. >> and it's moving the market tremendously. >> did i jump the gun? was trillium your "stop trading" >> it's all right. i think trillium -- i get a lot of calls yeah, $6 stock i say index stocks are going down i say if it's an oncological franchise, buy the stock why? every major company believes

that is still where you can make the most money now, we may disagree we want them to work owner illnesses. >> aisle glad you did it we didn't mention it the premium and oftentimes as you point out the premiums in these kinds of deals are enormous because if you win, - >> if you win. >> it's off the charts. >> incredible. >> right you know, billion here, billion there. for pfizer - >> but i do think that we have a pay close attention to stocks that are oncological that are all the way down, about to start trials, which is this one. >> guys, just to take a look at some of the chinese stocks p because we have mentioned alibaba off the lows you can see a mixed bag. all the other names, jim, higher a lot of pain here for -- and it's a broad range of investors as well, we should point out, chinese stocks hedge funds are well invested and some in privates this bytedance, who knows what the market value will be hundreds of billions

but it also is a result of this crackdown on data and the fact that if you want to go public you have to share your data with a third party, that the chinese government basically controls. it's having an impact. and the question continues to be, when will this crackdown from the chinese end >> for people out there looking at this, jd.com had a really good -- so the stock opens up very big and now it is just sinking like a stone so be aware that even if you have great earnings, when it comes to consumer, chinese government doesn't like that i think this is an opportunity -- not that i -- but this is an opportunity to sell these stocks because the government doesn't want rich people and that's a -- that's an amazing mandate. >> yeah. >> think about it. >> so lyft tonight >> yeah, let's get -- let's find out what's going on. remember, great information on what happens when unemployment benefits go away and ni nikesh arora what great thing to have on prem

and in the cloud which is what he has created he is brilliant. has a lot of things going. i want to talk about that google deal which everyone is -- you aren't when it comes to google you buy. >> we'll see you at 6:00 "mad money" with jim cramer 6:00 p.m as we said, sir richard branson and dan hart on that company's deal to go public via spac best day for s&p oil and gas since june 1st

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♪ good monday morning. another hour of "squawk on the street." i'm carl quintanilla with leslie picker and david faber morgan brennan has the morning off. decent opening on this first session of the woke. we have the fda formally approving pfizer's vaccine overall, a bounce in sentiment as we watch for signs that maybe delta is rolling over or jackson hole may be more dovish. existing home sales out a few moments ago. diana has that for us. >> carl, existing home sales in july up 2% to a seasonally

adjusted annualized rate of 5.99 million units that's a beat. the street was looking for a slight decline to 5.83 million and june's numbers were revised up slightly, still up 1.5% year over year. very small gains, but remember the comps are more difficult because last summer was the big spike in home sales. these are based on closings in may and june sales better because inventory is rising, 1.32 mill units, up 7% that is a smaller decline than we have seen in recent months. still at a 2.6 month supply and sell prices still rising. $359,900 the median price of a home sold in july, up 17.8% year over year. we were seeing gains in the 20% range a few months ago it's skewed because sales of homes priced 250,000 and lower down 30% year over year. sales of homes priced 750 to a

million up 55% million dollars plus homes up 59%. so again the second straight month of sales gains but most of it is happening on the higher end of the market. leslie. >> huge discrepancy there. thank you. we are 30 minutes into the trading session. here are the three big movers we are watching starting with robinhood as a handful of investment firms add the company to the coverage list slamg a fight result or a celebrating. investors don't care shares up 2.8% today plus, uber shares coming off the lows as the california judge ruled the state's gig workers law unconstitutional the decision also taking down shares of doordash and lyft. you can see uber shares down about 0.4% right now and boeing getting a boost announcing it will invest in sir richard branson virgin orbit as part of a spland spac listing for the company. later this hour we will speak with sir richard branson and virgin orbit ceo dan hart.

carl. >> all right we are watching pfizer this morning. getting full fda approval for the covid vaccine, making it the first covid-19 vaccine to pass this final regulatory hurdle we have been talking about the press release out of the fda it will be marketed as comernty for the prevention of covid disease in individuals 16 and older. as we said with jim last week, sets up this annuity business for pfizer if in fact we need boosters every eight months or so we'll see. >> yeah, we will have to wait and see. but, obviously, already assuming they were going to do $33.5 billion in sales of their covid vaccine for this year, and that number may go even higher leslie, the key question here, and scott gottlieb, of course, releeoy on cnbc was commenting on "squawk box," will now businesses feel more comfortable mandating a vaccine now that it's full approval will it result in more people

with vaccine hes hesitancy sayi will get vaccinated? companies have held back, perhaps, from doing so, feeling like, hey, you know what we can tell you to get the vaccine for any other number of potential diseases. >> he mentioned on "squawk box" it lifts this legal hurdle they had been facing. he spoke with business leaders about their desire to potentially enforce mandates to make employees feel comfortable about coming back to the workplace. there was some, you know, grayness and uncertainty with regard to how it would hold up in courts. now with the full approval that lifts that uncertainty, lifts that final hurdle and so at least according to dr. gottlieb we could expect more mandates coming down the pike pretty soon. >> yeah. and pfizer shares are responding positively, up over 4% so far this morning and 34 minutes of trading. the kansas city fed, by the way, announcing this year's jackson hole symposium will take place

virtually. that is due to the risks of covid. our steve liesman, of course, joins us steve, can you fish virtually? >> in your mind you can do a lot of things, david, as you may or may not no in person jackson hole meeting, david, this year always seemed risky. for a few weeks in may when it was announced it appeared the vaccine might vanquish the virus and top central bankers could meet in the shadows of the tetons to discuss the post-pandemic economy. a last-minute decision on friday amid spiking delta concerns, the kansas city fed reversed course and decided to hold the meeting virtually. behind this decision we have been able to report it became clear to the kansas city fed that following the guidelines of the national park meant not only guests but speakers had to wear masks. on thursday teton county where the event would be held upgraded the risk level to red. that means they were mentioned for essential purposes only.

fed chair jay powell decided to speak virtually rather than attend the conference. they said red status told us we were introducing more risk to the community and our guests than we were comfortable introducing. the result, on a event that might have been a symbol of return to normal which is a return to the pandemic-type economy. ben emons wrote over the weekend, the jackson hole event gone virtual is a strong signal to markets that central bankers take delta seriously how seriously? well, while fed officials earlier this month were talking about a faster timeline, one of those officials now, robert of dallas, said if the delta variant starts to hurt the economy, he would delay his call for an earlier taper we will get a lot of information about this we will hear from numerous fed officials thursday and friday virtually instead of person. we will get their views whether the delta variant needs a tougher outlook for the economy

and an easier outlook for fed policy all of that friday with the keynote speech by powell carl. >> steve, thank you. steve liesman. let's bring in chief investment strategist at charles schwab and michael, destination wealth management lizzan, do you atrilkt this to a dove iron jackson hole, maybe some positive signs around delta or just a response to oversold conditions in the past couple of weeks? >> maybe the answer is yes to the combination. i do think that the news about pfizer is important because even though the market has not been at the mercy of the same degree it was last year, i think a surface in terms of leadership shifts that we're seeing at the sector level. >> the factory level, i think have been tied to a larger degree it's just masked by an average

like the s&p still being near all-time highs but the underlying leadership change i think is reflective of all of those things, but certainly the impact of delta on expectations for the economy. >> michael, you think a 10% correction is in for this year even last week with we did a bit of a pairing back in the markets there were certainly some flows towards equities as kind of by the dip mentality. what do you think could be some. key catalysts for that 10% correction and do you believe it would be an opportunity to buy >> first of all, i think it would be an opportunity to bye buy in the dip companies are getting stronger dividends are strong and we are getting to what i would call more of a chaos normalization phase, which is the markets are really starting to learn to live with this pandemic something unthinkable a year and a half ago what's going to drive a 10% drop this is such a sentiment-based

market i think it could be anything the obvious candidate is some surprise on the inflation news but i think that investors basically need to be prepared for down drafts and have lists of assets, lists of sectors that they think want to move into the portfolio strategy there is so much money sitting on the sidelines waiting for an all-clear signal that i think it will be short lived if there is a market drop and that's why you need to take action when the market bumps down. >> it's interesting. we did have some technicians last week say don't buy this dip, the weakness in the russell is too pronounced, the weakness in semis is too pronounced they said don't expect a big correction until things lining microsoft start to get sold because the waiting is so extreme at this point. i wonder if that's going to keep the overall indices with some sort of cushion? >> well, i think the deterioration is definitely

worth watching cl clearly it's been worse on nasdaq and russell two 2000. my report will be out later today on that. i think the weakness in the russell 2000 reflects concerns more about the domestic economy than the global economy. and we have gone back to an environment where, as weakening suggests, you have got general is not being met bit soldiers, although it's a little bit different a pocket of companies that has been driving the index versus, say, through early september of last year when the performance was solely concentrated in the big five i think what's interesting about the sentiment access that michael touched on is that the sentiment excess has been most eye cute in areas outside the traditional averages, whether it's in the spacs or crypto sore only of the thematic areas like non-profitable tech, thememe stocks, and at some point this

year you have seen draw downs in the 25 to 50% range. i think we have to look beyond an index like the s&p to judge whether concerns about sentiment are coming to fruition, which in those areas they certainly have at some point this year. >> finally, michael, it's been said that the most important data point for the next few weeks is begoing to be august jobs i wonder whether or not you think there is going to be any kind of relief in the form of labor supply as kids start to go st go back to school and what that would mean for wage inflation in the last half of the year >> yeah, i think, first of all, if you look at the numbers, you do see what i would call more established permanent workers finally starting to get back into the work force. yeah, kids are going to start needing jobs when they go back to school. i think more so the trends from an employment standpoint look pretty positive. in terms of wage growth, there is going to be pressure on wage

growth i mean, there is still a tremendous demand for employees out there, particularly skilled employees. so that's something to watch what that really means, what you are asking me, therefore, is the fed going to raise interest rates? i am still of the belief it's not going to hit that 2% number that people were screaming about six months ago i think 1.6, 1.7 is more in the cards. that's a third of a percent, half of a percent higher than now. i think the markets can survive that if it goes higher than that, we start getting into dicey territory in terms of market volatility. >> yeah. we will see if we learn anything new this weekend on our computer screens. michael and lizzan, good to see you both as we head to a quick break, a look at our roadmap the rest of the hour. bitcoin bouncing back with a cryptocurrency above 50k for the first time since may >> plus, we will have an exclusive interview with sir richard branson alongside virgin

orbit's dan hart with the company going public via spac. >> and pfizer shares on the move as the drugmaker gets full fda approval for the covid-19 vaccine. a lot more "squawk on the street" still ahead. dow's up 230 esg is responsible investing. who's responsible for building esg into your investments? at pgim, the pursuit is on for outperformance. as active investors, to outdeliver with customized strategies, integrating esg best practices into our investment decisions. as asset managers and fiduciaries, to outserve, with our commitment to better esg outcomes. join the pursuit of outperformance at pgim. the investment management business of prudential.

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bitcoin surging trading @highest level in more than three months. kate rooney is tracking all of those moves. kate. >> hey, david. good morning bitcoin hasn't seen that $50,000 price tag since mid-may. it is still above that level this morning, continuing a rebound that really started at the end of july. analysts have pointed to the $50,000 mark as a key psychological and resistance level. it is off the highs though of more than 60,000 back in april other major digital coins this morning are also higher, coming off the weekend. ether, the second largest, is above 3,300 this morning as well as far as what's driving it, guys, the rally started overnight in asia and there have been a couple of bullish

announcements in recent days that appear to be helping prices coinbase saying it would add another $500 million in crypto to the balance sheet also altating 10% of profits to a crypto asset portfolio as well and we had paypal announcing it plans to expand a service that lets people buy and sell cryptocurrencies to the united kingdom. now they have that in the u.s., expanding abroad in the value of the entire cryptocurrency market cap is now back above $2 trillion it's around $2.2 trillion as of this morning guys, we also have new data from our cnbc survey out this morning showing that new investors are significantly more bullish when it comes to cryptocurrencies this is according to a new invest in you nextgen survey new american investors, so those who got into the markets in 2020 or later, are more than twice as likely to own cryptocurrencies,

that's compared to more experienced investors. and more than a third of that group believes that bitcoin prices will go higher into the end of this year compared to about a quarter of the larger investing base guys, back to you. >> always the optimists there. kate, quick question for you there was a journal piece over the weekend talking about the great mining migration with a lot of the miners leaving china as a result of recent regulatory crackdown there. how is that impacting the supply of bitcoin in particular is that kind of changing the pricing dynamic as well? >> it has changed the price dynamic. we saw that kind of start a couple of months ago and we have had miners migrate to states like texas and wyoming where we have done some reporting it changes the level of difficulty it takes to mine a bitcoin. so in terms of prices, the bitcoin miners, it doesn't change the bitcoin price much. it changes the economics for the bitcoin mining companies

it's more lucrative to mine bitcoin, but analysts tell me it doesn't have as much of an affect on the day-to-day prices. but those miners benefiting from less demand and less competition when it comes to bitcoin mining. >> interesting makes sense. thank you, kate. let's hit our "etf spotlight" as we head to break the energy sector, ticker xle trying to rebound after a rough week it's down double digits over the past two months, but up 3.3% right now. wti and brent crude on pace for their first positive day in the last eight sessions. after the break, our exclusive interview with sir richard branson and virgin orbit's ceo dan hart we are back in two minutes folks the world's first fully autonomous vehicle is almost at the finish line today we're going to fine tune the dynamic braking system

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the street." our phil lebeau is looking at the auto stocks and which names are most likely to have good returns. phil, what's going on? >> leslie, when people talk about the auto industry, everybody says we know electric is coming but how do you play that trend over the next several years or kdecades? an analyst for a number of years, worked for ford and now has been with guggenheim, advising a number of companies in the auto industry, and he basically says, look, it comes down to the fact that you are going so see an explosion in the number of new ev models over the next several years and this is the catalyst that you want to ride but you have to know what elements within this group you want to ride when we talked with him last week as they put together their outlook for the electric vehicle market, he said the key here, get in early and be prepared to be patient >> because of all this new technology, and that means for

investors there is more upside than there has been probably since the 1920s in picking the winners, the teslas of the world, and there is even greater downside since the '20s because some companies that we know will shrink or disappear. they will get run over afrmts and thso which way do yoy it the pure ev tech firms, we are talking about weather it's been battery cells, battery packs, strictly components, something that's strictly ev related probably the greatest returns followed by the ev automakers, the that las of the world, make a fisker within that group that's another example next up, traditional parts suppliers. they will do better than the legacy automakers in part because they can pivot within the parts country towards supplying ev components. then the legacy automakers is

going to be perhaps the lowest returns because they have got one foot in the present and then trying to put another foot into the future, and we saw what happened with general motors on friday announcing expanded recall that will cost it another $1 billion this is for the bolt ev. as you look at gm and ford versus tesla, yeah, they have all generally been in tandem the last year. but before that, obviously, tesla blew away everybody. when you are looking within the suppliers, take lack at a company like active, which spun out of delphi and was focused in future tech within the auto industry the return there versus warner, which was one foot in the present, transitioning into the future while it is transitioning, it still has to deal with the legacy auto industry and make that conversion. so, guys, that's sort of a playbook that he has laid out in terms of how to play the ev conversion over the next several

years within the auto industry and where the best bets are. >> phil, you mentioned the recall of those chevy bolts and the cost to gm can does it alter the discussion of where fire risk really is, at least in an ev that is fully charged? what does it mean for the relationship with lg >> well, they are going to point out, and they have already pointed out, that these are the old generation battery cells and battery packs. it's not part of the battery packs part of the hummer ev, the cadillac having said that, it points out the fact that it's a small recall, relative to the number of recalls we see. we often see recalls for 800,000, 1 million vehicles. the total recall here is going to, i don't know, 75, 80,000 vehicles total when you throw in the element of fire, that is the headline that people will remember do i think that this is a long-term drag on general motors probably not but it is something that is going to get a lot of attention near term.

this stock is down now, carl, 25% since june 8 people like the potential but they are not crazy about the conversion through this period here. >> thank you, phil phil lebeau. we are about an hour into the trading session. get a check on the markets on this monday. we know that there has been a bit of a bounce in sentiment, pretty much a risk on atmosphere for today. best gain for the s&p since about july 23 shd, i believe, a point within an all-time high. names like especially the energy space. look at occidental, devon and diamondback lead big 5 to 6% oil and gas best day in several weeks. a news update with rahel solomon. >> here is your cnbc news update a deadly shooting adding to the chaos in kabul's airport the german military saying in a tweet a afghan soldier was killed, three injured in fight

between afghan security forces and unknown attackers at the airport's northgate. this as tens of thousands of people wait to be airlifted out of afghanistan. new york city is set to announce a requirement that its public school teachers and staff be vaccinated against covid-19 with no option to opt out. the city previously said that teachers in the nation's largest school system would need to get the shot or at least get tested weekly. and to northern california, crews continue to battle the calder fire. as of sunday it had burned more than 104,000 acres, 5% contained. it's one of a dozen wildfires currently burning in california. you are now up to date david barks to you. >> thank you. virgin orbit the satellite launch service which is part of billionaire sir richard branson's overall conglomerate announcing this morning they will go public through a spac merger with nextgen acquisition corp it's valued at $3.2 billion. boeing will have a planned

investment through a side financing, pipe financing for the spac listing joining us now in a cnbc exclusive sir richard branson and virgin orbit's ceo dan hart. gentlemen, congrats. sir richard branson, let me begin with you your virgin galactic went public through a spac merger. it's easy to argue spacs are not as in favor. m nextgen 1 which closed its deal on friday is well below the issued frprice of ten why a spac choice here in terms of going public and why now? >> we had a very good experience with virgin galactic with the spac we were approached we hadn't even heard of spacs at the time we were approached. and since we have been public, we have raised money for the company. we have taken some money out to help the other virgin companies

and investors have done very well one of the people that set up nextgen, george mattson, is somebody that we know well he is on the board of delta, who, obviously, are partners with virgin atlantic he is on the board of virgin galactic and he had seen what we were doing with virgin orbit, saw what we did with virgin galactic, and, you know, we agreed to merge with him and so in doing so we have managed to raise -- we will raise money for the company and i think it's a, you know, a very positive step for virgin orbit >> right and preferable to a traditional ipo? >> we believe so the traditional ipos are very

time consuming and, you know, we have found that, yeah, yes, i know that spacs have had a take up in the last two or three months by and large, they have done extremely well and our experience has been very good. >> yeah. well, let me come to you, dan, and talk about the financial expectations for this company. certainly 2022 to 2023 would appear to be an important year looking at your sort of financial summary. and i wonder, in 2023, i believe, you have in your deck, only 10% of your active contracts are locked in. so how can you feel confident about that financial summary you have given your investors, which calls for 352% revenue growth year over year from '21 to' 22 and 375% from '22 to '23

>> we have a pipeline that is currently at about 4 billion that spans through about '24 or into '25 there is an enormous market that is growing in the small satellite market we have got 300 million in active contracts and lsas and letters of intent. so with that we're seeing huge momentum remember that we just launched successfully in january, launched again in june, and put up our first 17 satellites so we have got huge momentum coming off of those events our business development team is not getting any sleep at all we have signed quite a few deals, which you have seen come out in the public the last few months to so we're quite optimistic as we climb into operation. >> right and optimistic enough -- but what happens to the deals, dan, that are not locked in do they become locked in closer to 2023? does that change >> the average launch contract

is about a 12, sometimes 18-month contract. the initial agreements will get turned into launch service agreements and then we'll execute. >> what type of launch cadence, dan, do you need in order to be profitable you mentioned you had success earlier this year, but scale is, obviously, key for profitability, i would imagine here so what type of frequency are you looking at >> number one, we are certainly a launch provider, but we are much more than that. we are also in our plans working globally across with spaceports in other countries, working with the u.k., working with brazil, japan and other countries. so there are actually a number of revenue streams coming in to your question, we'll be growing to about 18 launches in 2023 and that's the period that we'll start to go positive

>> sir richard, going back to the spac conversation as david mentioned earlier, you have been kind of on allsides of the spa product, having taken a company public through spac. you had a spac of your own, which acquired 23andme you know, given all of the regulatory uncertainty out there, and it was reported that you were also considering doing a private funding round for virgin orbit, why are you still such a big proponent, especially as we will look at shares of nextgen acquisition corp still trading under $10 each >> i am a proponent that stocks will -- good quality companies will do well through spacs and i think that this interview hasn't really got across what virgin orbit is. virgin orbit is completely you niek it launches from a 747 it can launch anywhere in the world. it can launch at very short notice and it can launch at the

orbits in the world. and nobody else can do that. that makes it unique and there are a lot of countries that want that service the u.k., brazil, australia, and so on. so i think the market is definitely there i have invested $1 billion in this company so i believe in it we have got boeing we've got mu dahl a, a industrial and others, strategic partners who see a good future and put another $100 million into it in this round. so i certainly would have invested $1 billion if i wasn't extremely confident, and i feel that we have had a great experience with spacs and i'm hoping we will have the same experience with virgin orbit. >> yeah. and the company is projected, sir richard, to be a positive

free cashflow by 2024. does the money being raised then through this transaction cover you until that point >> yes the amount of money that we will raise will get us into cash positive as i said, i have taken the company this far, and now i will be putting more money into this round and we've got some very, very strong partners coming in with us, too. >> dan, finally, you talk again in your sort of forecast about the proliferation of small satellites and that will drive commercial demand. give us a little more sense as to what you are talking about. when you talk about the small satellites and what kind of demand there will be to put them up. >> we are seeing satellite companies pop up all over the world right now. dozens of them with billions of dollars going into them because of the cost of

satellites is coming down so far. every single one of those satellites needs a ride to space and that's what we're here for we can fly from anywhere to any orbit at any time and we are very unique. i mean, our launch base is a 737 that can take off from any airport around the world so we are seeing a growing space economy. it's currently 400 billion, forecasted to be over 1 trillion over the next 20 years so we plan to be a workhorse to help further that economy. >> finally, sir richard -- >> another thing to say. >> go ahead. >> another thing to note satellites, the level of orbit satellites come out of the sky every four to five years there are going to be thousands of them up there when a satellite falls out of the sky, you want to replace it within 24 hours. virgin orbit at the moment is the only company that is capable of doing that. and so we can, you know, we can fill in the gaps as and when

needed anywhere in the world >> well, gentlemen, we appreciate you joining us this morning. thank you both. >> thank you very much. >> thank you as we go to break, a look the home builders under pressure today, lan ar, di holten and toll brothers. around 20% from the mid-may highs. we are within ste'a ons throw of an all-time high at least on the s&p. more "squawk on the street" continues in a moment.

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welcome back to "squawk on the street." the fda granting full approval of unifiedpfizer/biontech vacci. thank you so much for joining us, dr. divan. so pfizer shares up more than 3% this was largely expected that they would ultimately get this full approval by the fda is it kind of a pull forward and timing that the market is excited about? >> yeah, thanks for having me on a couple of things i'd say one, getting the certainty that

it came through. maybe a little bit earlier than people were expecting. obviously, we have seen the stock do very, very well the past few weeks in anticipation of this. i think also just general news around the booster opportunity has got a lot of play in the stock. and then a small ac sis morning. people liking that they are putting the cash to use. a number of factors. obviously, the approval is the big news for sure. >> does it hang your modeling at all? because i saw that your current price target is $43 a share, which is about 16% discount to where the hairs are trading in today. how are you factoring in the delta variant, need for bus boosters, approval for children under the age of 12 into your modeling right now >> yeah, so we have what we think is very robust sales estimates for the vaccine. we have about 33 billion this year as pfizer has guided to that could go a little higher as they made other agreements and maybe with the full approval for sure

next year we have 16 billion in 2023, 80 billion, and 1 to two billion in the years beyond that there is a need for recurring boosters, those numbers need to go up a little bit it's a rapidly evolving situation. it's tough to keep up with the sales. there is probably something to our numbers right now. but i think we are seeing how this plays out before giving too much credand is it an annual boe or a third shot. there is still a little bit of uncertainty from a scientific perspective. >> what about the stock overall? i mean, it is interesting. it's finally exceeded its 20-year high, i would note, with this recent breakout can it go higher from here >> so, i think as we talk to fundamental investors, people struggle with the extent of the move it's had recently a lot of sales and a lot of cash from the vaccine, still a lot of

questions about 2026 to 2029 when they are going to lose 18 to 20 billion on key growth drivers. the key is what do they do with the cash we we saw the deal this morning, a transaction a few weeks ago. do they make wide investments with that cash if so, certainly there could be more upside, the multiples could go higher. we have seen not just pfizer, all the companies, sometimes they make good deals, sometimes not so good. a little bit of a wait and see to see what they do with the cash before giving them credit for solving that massive issue that they had in the -- it could run a little bit here on this positive news flow but then i think it will settle back until we get a little more certainty around what happens beyond 2025. >> doctor, thank you very much for joining us today a very important day appreciate it. >> thank you. coming up, we got a bull/bear debate on "tech

check. research first responders initiate coverage on robinhood that underweight out of jpmorgan getting some attention today begins at the top of the hour. meantime, 4479 on the s&p, one point ayrothrerdig of 4480.co hh 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. point away from the record high of 4,480 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. ♪ if you're 55 and up, t-mobile has plans built just for you. switch now and get 2 unlimited lines and 2 free smartphones. for a changing world. and now get netflix on us. it's all included with 2 lines for only $70 bucks! only at t-mobile.

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for an all-time high on the s&p. less than a point away we got one on the nasdaq as we went to break. that is an all-time high on the composite at 14,t897. hey, dom. >> carl, good morning. markets are higher this week with the consumer discretionary sector among the top performers. that group is being led in part by a collection of stocks that could be getting a boost on the heels of the fda's full approval of that pfizer covid vaccine including many of the travel and leisure names, norweigian cruise lines, carnival, royal caribbean, hotel and casino names like marriott and wynn resorts as well. keep it here carnival, norweigian, all those. "squawk on the street" is back after this break

restaurants had a rough year and many are facing a labor shortage as they look to reopen and welcome guests back. kate rogers has a look at new

data on what hourly workers have to say about the current situation. kate >> good morning. restaurants are facing an ongoing shortage and historically high turnover according to new data from black box intelligence and snag a job. turnover was over 100% and higher than 2019 levels. more than 70% of operators have pointed to enhance d unemploymet benefits or higher pay elsewhere for the shortage they found 28% of those who left the industry said they did find higher pay in other industries 23% said a consistent schedule or income were needed and 17% said they lacked professional development and promotion opportunities. another major concern for hourly workers is child care, of course more than a third of current hourly workers or job seekers are parents and 18% of unemployed hourly workers had to leave their job to take care of family or children many hourly workers are also

facing harsh working conditions. 62% said they faced emotional abuse and disrespect from customers, nearly half cited emotional abuse from managers. as the pandemic wears on, nearly the same amount say they do want businesses to keep mask mandates in place for customers as well leslie, back over to you >> kate, staggering statistics there, but not too surprising the pandemic has changed so much, both on the demand side for restaurants and as well as supply side for workers. thank you for breaking it down. the fda granting full approval to the covid shot this morning. the move clears the path to more vaccine mandates new york city is already requiring customers to show proof of vaccination status at some businesses including gyms, theaters and of course restaurants. so joining us now is sal skognamiller, owner of the famous patsy's italian

restaurant sal, thank you for being here. kate just talked about some of the labor issues with regard to the restaurant industry. let's first start with your staff as pertains to vaccine mandates has that been a point of contention among your workforce at all especially given all of the various challenges that restaurants are facing with regard to retaining workers now? >> very lucky we have very, very loyal long-term employees. we have some employees working for us since 1977. it is very -- they're very loyal to us. they want to be happy. they want to be safe let me stress the most important thing to us is that everyone is safe my family works there. so i want to make sure they're okay we installed active air solutions, it goes into our hvac system so whether the heat, the air conditioner is on, it is a system that is called bipolar ionization and it kills the virus.

it is similar to what is used in hospitals. my air conditioning man told me about it the beginning of the pandemic took us eight months to get it and we put it in right away. that's the safety, the most important thing and my employees are all for having the vaccine, they all had it already anyway. >> wow just talking about the changes in the restaurant industry as a whole. peter huffman writing about how the pandemic has brought and in focus these labor issues which he calls exploitive policies saying diners will have to pay more for a better work environment for restaurant workers. do you believe there needs to be a massive overhaul in the way the restaurant industry treats its employees, treats its workers? >> well, that's hard for me to say judging from my own personal restaurant it is like an extended family to us the loyalty has been great i've had, of course, some

employees left, when we were mandated to close in new york city for indoor dining, it was very easy for our employees to go 20 minutes to the lincoln tunnel, 20 minutes north to westchester or 20 minutes to long island to get a job that's where i feel the whole thing is a little unfair i want to stress, for the vaccine, we all got it, i think keeping people safe is the most important thing. but why is it singling out new york city? and not the surrounding places i would feel a little more comfortable if everyone were on the same playing field i understand that new york city is looked to as the world leader and innovator and doing things first and the best but it is important for us to make sure that people are safe, but also having the safeguards of not getting abused. very first customer that we had was screaming and yelling at my wife, up in front. and saying i'm not going to show you my passport unless you show me all of yours and, you know,

we have to explain, look, it is not us i'm very good. you want to come in and have a chicken parmesan and spaghetti and meatballs, that's what i know how to do. >> i'm getting hungry looking at the food we're having there. i've been in plenty of times we're almost out of time so let me quickly ask you, you're in midtown you rely on business people to come for lunch or dinner or prefeed as well. how is business right now? >> it is getting a little bit better and with the theaters coming back, i think it will be better. we're at 236 west 56th street, next to radio city, all the theaters, and for 77 years it was probably the greatest location in the world to have a restaurant and then it all changed in six months' time. so we're hoping that things will get -- start to come back to normal i think people for the most part did an informal survey some of restaurant owners, they feel like they'll feel more safe but

if they're sitting next to someone who is vaccinated. >> all right, sal, thank you so much -- >> i'm sorry our customers -- >> i'm coming in soon. >> have supported us throughout the years by buying our sauce up and gift certificates even when we were closed >> we got to go, sal >> so sorry, sal we will definitely be there soon we appreciate you being here today. >> that's going to do it for us on "squawk on the street." i'm going to be in soon, i promise. "techcheck" starts now with a new s&p record good monday morning. welcome to "techcheck. i'm carl quintanilla with jon fortt, deirdre bosa.