good morning house democrats at a standstill calling off a test vote to advance the infrastructure and budget bill yesterday. they're going to reconvene to try to bridge the divide today we will take you live to washington meantime, on wall street stocks will try for for a third straight day of gains, led by tech names and some hard hit china tech stocks, which are staging a big rally overnight we will show you what's moving. plus vaccine mandates are on the way and the public and private sector after the pfizer jab won full fda approval. we will talk to an expert about exactly what your employer can require to you do. it's tuesday, august 24th, 2021 and "squawk box" begins right now. ♪ >> good morning, and welcome to "squawk box" here on cnbc.

i'm mel la leah long with joe and becky are off today. >> i couldn't stay away. obviously one day, one day you stayed away, it was like friday. >> i wanted to refresh to make sure i was fresh for you today. >> to really bring it, which you do. >> bring it. >> really bring it you had to bring it for 14 hours today. >> i know. >> starting now. >> let's take a collect on u.s. equity futures for this tuesday morning. looking at a positive open across the board, s&p looking at 5 at the open 9:30 a.m. eastern time, dow jones looking to be higher by 24 points, nasdaq looking to add on up 40 points right now. treasury yields have been holding relatively steady throughout the morning and overnight session. 1.262% and check out the move in hong kong listed chinese tech stocks specifically staging a big rally overnight, several catalysts, jd.com second quarter earnings beat expectations that stock getting a vote of confidence yesterday when kathy woods bought 164,000 shares of

the company's u.s. adrs. tencent recently posted big quarters as well there is short term clarity and there is expectation that the new pace of regulations could slow the fact that we didn't hear anything overnight, that's actually a good thing. >> eamon -- do you follow eamon? >> of course i do. >> let's get to this first the house scrapped a plan yesterday for a vote to advance two economic proposals, the chamber will reconvene today as democrats try to break a stalemate on how to proceed with president biden's economic agenda you know what i'm talking about, eamon. we will talk about this first and then briefly, briefly -- >> i know where this is going, joe. >> i know. we will talk about your movie review for a classic movie that -- >> right. >> and we will try to figure out aaron altman how did they do

that did they have tubes under his hair >> you're talking about the movie "broadcast news" which i watched over the weekend and the people talking in my rear are saying we have to move on with this segment. >> we will talk at the end >> and we will talk about the movie at the end let me get to the news first, joe, and the news is this, no deal, no vote overnight. here is the video of nancy pelosi leaving the house of representatives, they broke up just about 12:30 last night, pelosi on the phone with leader hoyer said a few words to the reporters who were gathered waiting for a verdict on this bipartisan infrastructure bill and where all of this is going here is what we know as of right now, this he did not get that deal last night, negotiations as i say broke up after about 12:30 a.m. there are reports of a possible deal here which would involve a date certain for the infrastructure bill in exchange for a vote on the budget all three bills here are tied together, the budget resolution, the bipartisan infrastructure bill and, remember, the john lewis voting rights bill

the house now convenes at 12:00 p.m. eastern time today. so here is the political dilemma that nancy pelosi faces, and she wasn't able to resolve last night. the moderates want to move forward with this bipartisan infrastructure deal that passed overwhelmingly in the senate, it should pass overwhelmingly in the house as well, there should be republican votes for that that's a trillion plus dollars moderate democrats want to take that deal off the table and put it in the bank right away. some of the progressives and nancy pelosi say, wait a second, we have this additional $3.5 trillion bill we want that and we're not going to give you the bipartisan infrastructure bill until we get that process moving on the $3.5 trillion which they say is important for what you call sort of human capital as well as sort of the physical infrastructure piece of all of this so that's the struggle that pelosi has and, remember, she has a very narrow majority in the house of representatives, she's going to need just about every single democrat on the table to come together for this

deal, but as of right now she doesn't have nearly enough to get this thing done so the request he is what is nancy pelosi going to do we will know more by noon today but this thing might not be resolved throughout the course of the day today. >> eamon, the moderates aren't -- they're going to probably stick to their guns on wanting to do the other one first but that's not even the issue. if they did vote on the $3.5 trillion there is no way a lot of those moderate democrats and we've had them on the show, talked to them, they are not going for $3.5 trillion that's not going to be a $3.5 trillion deal if it's anything it's going to be much, much less. same with the senate that wouldn't go with the senate manchin has already said -- and they will both -- you know, they will both fold at some point when they get a couple of things for their individual states probably, but there's just -- you can vote on the $3.5 trillion you're not going to get the votes for it even if you do vote on it before passing the infrastructure bill which i don't think they're going to do because they want to put it in the bank and get that done >> yeah, look, there is an old

rule in politics, joe, when somebody offers you 80% of what you want you take it, come back later and argue about the 20 that would seem to apply here to the infrastructure bill, but you're right, the progressives say what they want is this $3.5 trillion and they want to use as much leverage as they have right now to get that done and so that's sort of where they are. i think your analysis is spot on in the sense that everybody is looking for where they're going to fold here everyone is going to have to fold to get a deal done, the request he is where do you fold and what do you get as a result of that folding and that's the negotiation that's playing out right now, and pelosi wasn't able to pull together last night. >> i told josh gottheimer one of the moderate democrats, he's saying there's got to be a complete repeal of saltal salt. we know none of them are going to stick to their guns people around the country that watch this stuff they're like i'm tired of watching. i'm tired of watching people say things that they don't meep and

it's all negotiationes >> they mean them in the sense that they're staking out a position. >> it's sausage being made. >> negotiation. >> sausage being made is disgusting and this is even worse. >> fair enough i like your analysis, joe he. >> what can you say to that? you can tell me how they got that sweat coming -- and do you know what the producer told me he did not tell you -- >> i was amazed by it. >> he did not tell you to move on you made -- >> i made that up. that was a bit -- >> you moved on yourself because the producer and you -- >> that was a bit of news acting that was a bit of news acting. later i'm going to tear up for you. >> you may it here and it comes out there. >> it is an iconicmovie in our industry, i had never seen t everyone has always said you have to see it so i finally watched it over the weekend. i didn't know it was a romcom, though i thought it was going to be a serious drama, i didn't realize it was a love triangle i thought the two men that the jane character had to choose from, aaron and tom, were both

total bums and i'm glad she didn't pick either one of them spoiler alert. >> you know me as you do and you like tom i like tom he wasn't the brightest guy, but he liked the way he moved through things without any conscience whatsoever. remember at the end when he did get the tear, he goes -- he goes, look, i teared up anyway when i didn't have the other camera so calling it up -- >> right. >> that was like, oh, my god, these journalists -- always so high minded. do you know my favorite thing? >> fake news acting. >> my favorite thing, jack as bill whatever his name is. >> yeah. >> jack was like the main anchor. >> jack nicholson comes in and plays the walter cronkite figure. >> they were having massive layoffs and he goes it's just horrible they go, well, we could put a couple million off your salary and we wouldn't have to have those layoffs, bill. and he -- >> and nicholson doesn't even say anything to that. >> no, he just looked at the guy

and the guy running the place goes, bad joke, i swear i didn't mean that. really good. >> who is running these networks, joe? is it the talent or is it the suits, man >> rachel did pretty well. no, it's the suits it's the suits it's the suits. >> these people are genius they're geniuses with wisdom that you can't even imagine. >> now we are going to move on that did it. okay thank you. >> that was a scary move on. i heard it in my ear and i wasn't even talking. >> they are not telling me that. >> you should check out "the godfather. this is a mother about the mafia and i think you would really like it. check it out >> i appreciateyour recommendations. i'm going to -- i'm going to look into that i actually read the book the book is great. >> you can rent it >> that's the end of movie minute with eamon. >> it is >> like a whole other show

it's like a squawk spin off. like joanie loves chachi. >> chachi is still around. >> this will be almost as good as that. >> almost as good as hello larry. >> all right we're moving on. >> we're going to talk to both of these gentlemen, see the d and see the r, so they will probably disagree on this, it will be part of what we're talking about, but maybe we can do the heavy lifting here and report back to the speaker that we've got a deal maybe we can do that, melissa. do you think >> yep see you later, eamon. yesterday'sapproval of pfizer's vaccine by the fda sparking a flurry of activity in the public and private sectors here is president biden speaking after the fda's announcement >> today i'm calling on more country and more companies i should say in the private sector to step up with vaccine requirements that will reach millions more people >> within hours of the announcement the pentagon,

school systems in new york and new jersey, cvs and chevron announced vaccine mandate plans. separately disney reached a deal to require vaccinations for its unionized employees at walt disney world in florida. they will have to be fully vaccinated by october 22nd this obviously was part of the rally that we saw yesterday, the idea that this will strengthen the gusto of the reopening. >> yes i don't know what you see on twitter, but -- >> what? >> i don't know. just all the crazy anti-vax. why get the vax if it doesn't work why get the vax if you still wear a mask? why do this? why do that? it's much better, i think, if it does happen to you i think it's much better if your immune system is -- >> outcome. >> outcome, there is no doubt. >> but at this point there may not be a choice for people this they want to keep their job and go back to the workplace. >> in the private sector you're okay with that philosophically i need to think about it i mean, i know it takes a

village and we've heard that for a while and you are not doing it for yourself you're doing it for society. as a whole but, i don't know, it does -- it does -- don't tread on me. you are treading. >> i do understand the arguments for both sides. >> yes. >> in terms of the private sector mandating vaccines, but as an employee i would feel better knowing that all my colleagues returned me were vaccinated. >> right well, i wish everyone was like us because i did go -- i lucked out, i called a dermatologist and he said, yeah, i can get you in, you know, because i have all these other basil cells. >> now apparently you can get a booster. >> i can probably get one and i will two plus eight. >> off label uses. >> off label. >> off label uses. >> two plus eight would be october for me. >> right >> because i got it in february. >> i'm about the same timing. >> are you >> yeah. >> well, gout in early. >> i got in in march. >> march okay >> i got january and then

february we will talk to a workplace safety expert about what employers can and can't mandate. coming up, retail earnings are front and center in morning, the squawk planner is up next. here is a look at futures as we head to break. we are look to go see a higher open, the dow looking at 46, the nasdaq looking to be up by 43 points "squawk box" will be right back.

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earnings in focus on today's squawk planner we will hear from best buy around 7:00 a.m. eastern time. after the bell retailers nordstrom and urban outfitters and toll brothers will also report. for a check of the markets let's bring in karen cavanaugh from carolinas wealth manager and dana doria of invest net ladies, thanks so much for joining us dana, i want to start off with you seeing that we've seen a very strong snap back rally in chinese tech stocks and you like emerging markets and i'm wondering how you pursue that. china is a big part of the eem in general do you see the worst being over in terms of the regulatory efforts by the chinese government >> yeah, thank you for having me i would say that we work with a lot of managers in investment, managers who have a lot of insight in country, they are not focused very much on -- in diet of the fact that we did see the

government crackdown on both tech as well as the education sector they were viewing it pretty much as a buying opportunity and expected to see exactly this, this kind of snap back they weren't looking at it as likely that we would have the government cracking down and it would be a sign of increasing efforts in that area so so far so good in terms of the expectation on that front. >> i think it was interesting in yesterday's news that the chinese government was taking a stake in bytedance, putting a person from the government on the board of bytedance and the possibility is that the government could extend their tentacles and do that for other companies as well, dana. i'm wondering if that changes your view at all if a member of the communist party is actually sitting on the boards of some of these companies that make up the biggest chinese tech stocks. >> yeah, i think it's a fair question and, you know, the -- you say, okay, well, what's the expectation on balance i think it's important to take a step back and look at what is the risk of the emerging markets

index and china in that index. china is a very big percentage of that index and we also see that the index has changed a lot over time, it's moved from more of a cyclical focus in terms of the countries and types of sectors that are in there to more of a tech focus you do have a certain amount of concentrated risk between china and north asian economies that are tech focused i think the way to approach it as a strategic investor is to hedge your bets and diversify. maybe a cap on how much you have in china even if the index hasn't increased in 30 to 40 percent weight to china. >> karen, getting back stateside, you like materials and industrials. your outlook for the row opening it -- how would you characterize it strong decent >> yeah, absolutely. i think that we're still going to see that reopening trade and so that things are moving along. if we have an infrastructure bill then obviously materials and industrials will be a beneficiary of that. but i like -- i think across the

board we've seen investors rotate to different sectors. i still like tech, i still like consumer discretionary and i still think there is a lot of value in the market because earnings are so strong we just came off second quarter and we saw almost 100% increase in earnings and we see a strong third quarter earnings so that earnings growth is going to continue to sustain the market >> discretionary is very broad, it includes a lot of different things, karen, from media stocks to home builders to retailers. so what move in discretionary do you like >> i think i like the retailers. i think because consumers they're getting out there and they're spending and, yes, they're spending on services, but i think that we've seen traffic in indoor stores is also going up and it's higher than in 2019 for a lot of the outdoor malls which makes sense. so i think that i would say that a lot of those retailers that we've kind of passed over are saying, hey, you know, the consumer is not really going on out. the consumer still is very strong and have a lot of

discretionary income i know that retail sales was a little bit of a miss this past month but it's been growing so much and if you look at the overall numbers our overall retail sales are higher than they were in 2019 just on an absolute level. >> karen, dana, thanks so much coming up, people are paying millions of dollars for digital pictures of rocks. the latest brand of nft to surge in price details after the break: as we head to break here is look at the biggest s&p 500 gainers in the premarket .: t bbrk res okeahe ilo atheiggest s&p 500 gainers in the premarket as we head to break here is look at the biggest s&p 500 gainers in the premarket. as we head to brek at the biggest s&p 500 gainers in the premarket

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the nft market alive and well a clip art of a rock -- of a rock -- just sold for about 40 ether or about $1.3 million. that happened late yesterday ether rock ether rock is a brand of crypto collectible that's been around since 2017 making it one of the oldest nfts around, there's just 100 of them. only 100 of them according to the ether rock website these virtual rocks serve no purpose beyond being able to be bought and sold but they do give you a strong sense of pride in being an owner of one of only 100 rocks in the game ether rocks have been selling for higher and higher prices in recent days. two days ago the cheapest was

$305,000, two weeks ago it was $97,000 and over the weekend crypto entrepreneur justin sun tweeted that he just spent half a million dollars on a rock. hey, that's a nice one, though i mean, the other ones i'm not so sure. >> he got a good one. >> he got a really, really good one. i know a joke about that that i couldn't tell on the air if his name sounds familiar you might recognize him as the tech entrepreneur who runs bit torn and who founded the cryptocurrency platform prawn. in 2019 he paid $4.5 million at auction for a dinner with warren buffett. that's the guy we're talking about. they died -- dined in february of 2020 and reportedly discussed the value of the cryptocurrency, but from what i can tell he was unable to convert warren buffett. i'm certain that he was unable to convert charlie munger who calls it like dog crap or something.

rat poison. >> something along the lines i heard a great argument for nfts because you were reading that skeptically. >> just because of the rocks. >> cyber punk is okay. of an nft. >> i said what i would pay for t there is a picture of oscar robertson, he is eight feet off the ground, his legs are like this and he's getting a rebound. if i was the one that owned that being from cincinnati i would pay a lot for that >> the argument that i heard yesterday that was very compelling to me was that like so many things in life you buy things for a sense of community, like the label you wear on your shirt or the kind of car you drive, a piece of art that you hang on your wall. it's on train to a rt sof community of like-minded individuals and nfts do that it's not necessarily the long term -- not the value of that rock in 20 years, but it's what it gets you right now in terms of who else sees this future.

>> when gary comes on he makes a good case for it as a baseball card collecting dust up in an attic wouldn't you rather have the only one digitally. i can understand how that would work art, if -- we've seen some art -- i saw art of -- it was over in england and it was an unmade bed with a cigarette put out in an ashtray, it was just sitting there. it's in the eye of the beholder. >> exactly >> i think, isn't it >> it is it is. elon musk calling out his software team yesterday in a tweet. he said the latest release of the company's experimental driver assistant software is, quote, actually not great, but he said the autopilot ai team is rallying to improve it as fast as possible. the company sells a full self-driving capability package for $10,000 or $199 a month in the u.s. the beta software is only available to drivers who

previously purchased the capability and tesla employees overnight he posted an update to the tweet saying he just drove the new version of the software from pasadena to lax he said much improved. >> you seemed fine reading that, i didn't hear any weird janantid or whatever they call t they will complain about what you said cnbc has a vendetta against -- unless -- >> it is in the eye of the beholder just like anything. coming up, now that the fda has fully approved pfizer's covid vaccine employees across the country are rolling out vaccine mandates we will talk to a workplace safety expert about exactly what employers can mandate from their employees. that's next as we head to break. take a look at yesterday's s&p 500 winners and losers

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♪ good morning welcome to "squawk box." taking a look at futures and how we are setting up this morning, the dow is looking to add 56 points at the opening, s&p 500 looking to be up by 7.5, the nasdaq looking to tack on to gains from that closing record high in yesterday's session, up 40 points premarket. new york state has a new governor, cath u hochul was sworn in just after midnight in a ceremony at the state capital. former governor andrew cuomo issued a blistering address condemning the attorney general's address into sexual harassment allegations. yesterday's full fda approval of the pfizer jab, covid vaccine parking a flurry of vaccine mandates in the public and private sector. joining us with what employers can and can't mandate john ho co-chair of the osha workplace safety practice at cozen o'connor this is a quagmire wrapped in a

riddle surrounded by a real quandary just looking at all the legal ramifications. are you are going to be in demand at those prices, i think. let's start with possible exemptions people with ms, people with religious -- i mean, i can think of 20 different reasons why someone would say i am precluded from getting this. how do they approach their employer what would they say? >> right well, exactly to your point, first thank you for having me on but, yes, certainly, look, employers have been going through these challenges and these evolutions with covid since the start. so this is just, you know, another one step in that process. but to your point, joe, yeah, if an employer does implement the mandatory vaccine policy it's certainly going to be subject to accommodation issues you point out disability issues and also sincerely held religious believes

it really is going to depend on the employer's policy. there needs to be an interactive pro he is s the employee needs to let the employer know here is why i cannot get the vaccine, then the employer has to discuss it and essentially provide a reasonable accommodation if it can. if it cannot, if that accommodation is going to pose an undue hardship, then they don't have to provide t i mean, in some sense it's that simple, but in operational reality it's a very challenging, very individualized assessment. >> so what if they don't provide the accommodation and the employee stays where he or she is and says, i'm not doing it? then can they fire those people or tell them to stay home or what would they do >> right well, that's the question, right? if staying home is the answer, that's a reasonable accommodation and certainly the employee might argue that, that -- particularly if they've been working from home for a while, why can't you provide accommodation for the last year and a half i've been working at

home, why can't i continue this? that is going to be the analysis that the employer needs to conduct. if it conducts for business reasons it really needs its workforce back in the office, you know, for different reasons, it's going to have to overcome that, you know, suggestion that the work cannot continue to be done at home, but, again, if it ultimately concludes that it is an undue hardship in that there's really no substitute that the employee really needs to get the vaccine to perform his or her job then, es, termination certainly is an option according to the employer and that could of course lead to litigation. >> what if someone is just adamant and says, i'm 25 years old, i never get sick, i have great health in my view and they say i'm worried about heart inflammation, blood clots, what are the other things that i've seen, fertility issues, i've seen, i don't know, some of the very rare cases of some weird autoimmune -- what if they say

this is my body and i'm -- i am worried about these things you may tell me i'm wrong, but everybody has an opinion and i'm worried about that and i don't want to do it. >> right look, if it's just a straightforward i don't want to do it sort of period whether they make some, you know, medical excuse or even if it's a political issue, i mean, that certainly is not going to be, you know, really a disability accommodation. >> so they will get fired? >> if they have doctor support for that maybe we are in that area now we have to take that as a disability accommodation, but if they have no support and they just say i'm 25 and healthy, i think my body is a stronger immune system than the vaccine, then, you know, very likely that is not going to be an issue where -- an accommodation has to be provided. >> john, is there precedent for private employers to mandate something in the public health realm and do you think that there could be constitutional challenges to mandates >> well, look, i mean, of

course, the constitution is really going to apply in the public sector, but it's not -- we know that in the health care industry in particular flu mandates have been around for a while, particularly with schools. so the issue of actually mandating vaccines is nothing new and vaccine hesitancy is nothing new. covid has brought that to a significantly heightened issue and made it political, i don't think the flu vaccine was ever a political issue. employers certainly in particular like i mentioned health care and education have been dealing with these issues already. i think it's -- the general industry, retail and hospitality, this is much more of a new event. >> right the public facing sort of industries. >> yeah. >> what rights do employees have if they have any in this circumstance if they are under the assumption that there's a mandate now and all my co-workers are mandated and you learn that the person next to you is unvaccinated, what right do you have to say, i'm not -- i don't want to -- i don't feel

comfortable where i'm located or how i'm assigned >> right look, again, because there's no -- there's no law that says you have to put a mandatory, you know, vaccine policy, the safety issue is really a totality of the circumstances. under osha's general duty clause every employer has to provide a workplace free from recognized hazards likely to cause death or serious bodily harm. covid is one of those. it's not enough for the employees to say, look, i need to know that all of my other employees are vaccinated certainly if you take that fact ands also say, look, my employer is also making me work close with people, my employer is not providing sufficient ppe, they are not providing me a mask, i have ate lot of interaction with the public and there is no plastic barriers between myself and, you know a customer when i'm, you know, cashing them out at the register, then i think those concerns become legitimate and they've got the right to complain to osha, which is the

agency responsible for investigating those workplace safety issues. but i think lack of a vaccine itself is probably not going to get them there, it's probably going to be a lot of the other stuff as well. >> we've been expecting full fda approval of the pfizer vaccine for a while and also expecting full approval for the other ones as well, john. i'm wondering how many inbound calls you're getting from employers inquiring about what they can do and what they can mandate. >> well, yeah, right and of course that approval just came down yesterday so i think it's a little early. we certainly do expect that the full approval is going to lead to more employers reconsidering whether they want to implement a mandatory vaccine policy i think right now i think most employers obviously still have it i don't necessarily think this is going to open a flood gate of employers want to go do it the justice department had say even in a temporary emergency status there's nothing that prohibits -- there's nothing under federal law that prohibits an employer from mandating it. from a legal perspective

probably the legality was probably the same as it was two days ago as it was yesterday i think the optics become much better, obviously i think everyone is hoping that with more public confidence now that it's a full approval the inoculation rates will be driven up by that, but, look, you know, you see every week, i think, more and more employers are requiring some kind of mandatory policy or soft mandatory which is of course what president biden did with his federal workers, not so long ago, saying either you get the test or you have to undergo regular testing, essentially making it a real big inconvenience if they want to continue without the vaccine i think this will certainly help, but whether it's -- >> i can hear it now and i'm going to tell you what's going to happen. what if an employer said, okay, if you don't get the vaccine you have to get testing every week and you have to wear, you know, a double mask or something like that this is what you're going to hear, even if you are vaccinated, you can still spread it

and you can still give it to someone. so next thing you're going -- then an employer could say you need to be double vaxxed, you need to test every week and you need to wear a mask the entire time why not say that if you're contagious when you've already been vaccinated? why isn't that the next step and then when does it end? >> right to your point i think that's, you know, the president's policy with federal workers is taking that approach, what we call a soft mandatory approach. if you don't get vaccinated, okay, you know, we are not going to force you, but here is what's going to happen. submit to regular testing and wear -- >> but they happen even if you are vaccinated since people that are vaccinated can still spread the disease and still have breakthrough infection so then they should be tested and wear a mask, too >> yeah, look, i mean, again, as you started, you know, our discussion, i mean, this is a challenging -- >> that's what i mean. >> -- situation. >> it's a quandary and you are not getting enough calls yet.

did you hear that, it's only being a day. do you want to put up your phone number or something. >> do you have any business cards around we're doing all we can for you. >> i appreciate that >> you're going to get some -- i don't see how you don't get calls. and these are all -- you know, these are things that i read on social media it's crazy john, thank you. we appreciate it you know, you've got a lot to think about. i want you to go somewhere and just sit down and think again because none of us know what the answers are going to be. it's very difficult. kwaund gree wrapped in an e enigma. >> great way to phrase it. >> see you later, john. >> thank you. coming up, news out from airbnb overnight on providing housing for afghan refugees. details next. plus today marks the tenth anniversary of tim cook replacing steve jobs as ceo of apple. we will take a look at his performance and talk about the stock's performance during his tenure. you can watch or listen to us live anytime on the cnbc app.

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welcome back u.s. equity features indicated -- opened higher good day yesterday, rebound on friday are we out of the woods? it was a down week, but it was not even -- we don't even do 5% corrections. been a long, long time

a 20,000 afghan refugees will have a place to live at least temporarily. ab and b ceo brian chesky stated that the company will house the refugees in homes listed on the platform chesky said that the company would fully fund those stays but didn't specify exactly how much would be spent for how long the refugees could remain in airbnb housing. coming up, what is working in the markets, take a closer look at reopening plays next "squawk box" will be right back. >> announcer: today's big number $129,300 that was the average 401(k) balance as of the second quarter according to fidelity atvestments, a new record. th's up 24% from a year ago. ♪ ♪ i had the nightmare again maxine.

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so-called reopening play, entertainment company live nation shares closed up 4% delta, united airlines up 4% m mgm, wynn and caesar's posting big one-day gains yesterday. as we head into the fall, here to tell us what he likes, is cnbc contributeor good to have you with us. >> good morning. >> good morning. >> mopgs the names you like, american express, in travel and business how full bore are you on this

reopening trade? >> so, i think what i look at it is a diversified portfolio if you look at the reopening plays they did very well until about three months ago delta is off 15% of its peak if you look at some of the others that are reopening plays, like zimer that's 20% off its peak all this happened when delta hit again. we had companies like trans dyne for airlines that's down 15%. i'm confident in the reopening plays. i think we'll get through this delta variant. the growth stocks have done fabulously facebook and google are done fantastically. you really do need a diversified balanced approach, companies in the short term that have been hit i like another one like uber is down from 60 to 40.

as soon as delta hit, the focus on their earnings has been steppeded. i want to own companies that have earnings growth in the future and i think the ones that have been hit hard in the airlines, and even the autos and some of the medical elective surgery companies, i think, are the ones you want to own as well as the others that are going top line i think once business travel comes back, some of these companies will do really well. it's just a question of, you know, when that's going to happen and we're just going to wait for that. >> what's the growth backdrop that you're expecting? earnings growth. they could have earnings growth maybe on a quarter-to-quarter basis, the growth might not be as strong. >> so, i'm looking at, you know, two quarters here. i think once you get some semblance of business travel coming back, people actually getting on airplanes, traveling, that's when the market will actually discount the future

right now they're not given the benefit of the doubt a lot of companies did give the benefit of the doubt and did well as soon as delta hit, they're pulled out of the delta cyclical sectors. going forward, especially where we have rates, where there's growth, that's where the money is going to go the question is, do you want to put it in now and have volatility we think it's the right place to be some of the easy money has already been made in the other areas. >> does the fed muck it up or do they now have cover, sarat, on pulling back on announcing some kind of taper timeline >> even if the fed comes in and talks about taper, these stocks are not as sensitive to interest rates at some of the other high, beta-high growth stocks. these are true stocks that will have earnings growth based on the consumer, on company spending we could see the overall market come back a little bit

and multiples are not going to really going to expand at this level. the fed, if they do taper and do raise over time it's going to be earnings growth that's going to drive this market not multiple sxapgs we saw in the last 12 to 18 months. >> what do you think the market's reaction will be if the fed come thursday, friday, saturday, announces their taper timeline and it's timeline starting in the fall >> i do think you'll get a little bit of reaction you had a 2% correction last week we've had a 5% correction as the highest since last october you could see the rotation the rotation could go back into the valley cyclicals the companies i'm mentioning in the transports and some of the others are the area that people will put money into. the reason the fed is going to do that is because they're seeing more growth that's out there. these are the companies that are going to benefit for future growth, not what's happening

currently. >> so there's no risk in your view that the fed will do this growth slows because the reopening maybe is not as strong it was a one-off or pull forward sort of demand situation in the third quarter. and they're stagclation. i hate to use that word but it seems to be coming up more and more these days. >> that is a big fear. if you break it down and say growth is coming and value cycl cyclicals will do better, yes. if you do get stagflation, fed t tapers and raises rates, that could be an issue for the overall market the companies we're talking about here are not highly valued they've been below the market for a while since we've had covid. so the fear on the downside, little more downside protection there. the danger is your high pe price to sale stocks if you get an area of stagflation that could

affect them, too that's an area for the market. but maybe the tapering and roadwaying the rates doesn't come in as fast as we think. maybe tapering comes in first. >> right sarat sethi, good to see you thanks. house democrats over a stand still over what we're calling the budget bill. it's a budget bill it's got physical infrastructure and, never done it before, metaphysical infrastructure. and then the regular infrastructure bill. negotiation are set to resume today. the chairman and ranking member of the budget committee join us to face off at 8:00 a.m. plus ten years of tim cook at the helm of apple we'll dig in to his legacy with the top analyst at cnbc. phoenin golf tournament is one of the largest spectator events in north america. it's also a zero waste event, which means everything thrown away

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stocks trying for a short of gains. hung up in the house democrats arguing with each

other. we'll speak to representatives from both sides of the aisle. powell and your portfolio. will the fed send hints about the taper timeline from jackson hole later this week what may or may not be said as the second hour of "squawk box" begins right now i'm joe kernin along with melissa lee. andrew and becky are off today you have to expect that. it's august. is it the dog days of august >> it has nothing to do with -- >> national dog day is coming up. >> is that today >> thursday. >> you would know. >> we're preparing some treats. >> treats? >> some treats u.s. equity futures at this hour are up a little bit. nice day yesterday good day on friday

up 70 on the dow up 9 on s&p. nasdaq up 49 if we could look at individual issues, probably be better than just the averages. right? >> how can we do that? >> as a result let's get to dom chu. we moved him in to position very, very quickly because you're needed, dom good morning. >> good morning, joe good morning, melissa. first of all, my two dogs get treated better than i do around the house. the dog days of summer are pretty good for them let's look at the issues and the movers we're seeing. from a thematic standpoint, something melissa said is playing out, that is the resumed leadership of communication services and retail as evidenced by the record highs we saw in the nasdaq and s&p yesterday being driven on a one-week basis where is the momentum coming from technology that particular etf up over 2%

consumer discretionary up 2% and gains for xhupgs services over the last week these were the three top performing sectors in the s&p 500. that tells you something about where investors are looking towards for some of that near-term leadership that's powering the markets big earnings headliners expected this morning is vapseadvanced a parts. do it yourself retail. on a year to date basis it's been a pretty big mover and some say a covid beneficiary. it's been one of those plays where people have spent more time going to the stores, buying parts for their car, fixing things for themselves, windshield wipers, anti-freeze a near miss. just a slight miss on their same store sales numbers. speaking of covid, will gyms actually come back

morgan stanley thinks planet fitness is in a position where they can emerge from the covid pandemic better off. they initiate that stock with an overweight or buy rating and $93 price target, 25% implied up stock here they think this stock can survive the pandemic, has bigger market share once people get back into fitness. keep an eye on fitness. >> i'm going again constantly at the gym. i'm even going to sauna. >> do you take a plunge pool >> i don't know. it's hot and people are in there. i don't know it seems like it's just a germy, disgusting -- >> why would you do that then? >> i love the sauna. you're right about dogs. cuomo has done a lot of thing but abandoning -- that's the cover of "the post," that he left this dog, captain did you see that at the governor's mansion, melissa?

he left his dog, said someone else take care of him. >> why would he do that? >> he was going on vacation. i had three people at my house that said we'll take that dog and i'm like, no, we will not. that would be four dogs. he is cute did you see him? you've got to bring him with you. >> he's not leaving him -- >> actually he got mad and said the coverage was not fair. he just wanted someone to watch the dog while he goes on vacation. >> then he's going to get the dog back >> we shall see. we shall see. >> all right. >> we're watching. >> i'm sure. i'm sure thanks, dom. walmart launching a new shipping business looking to deliver drone and ouautonomous opportunities. frank holland joins. good morning, frank. >> hey, melissa. walmart golocal, retailing that service today. st actual shipping is scheduled to

begin before the end of 2021 it will use gig store workers, store associates and even other delivery companyies to make thes business-to-consumer deliveries. this would be a white label service meaning delivery will not be in walmart branded trucks tom ward says golocal also looked to disrupt delivery tech. autonomous business company in april, cruz. in june it invested in startup drone, to use drones and autonmomous vehicles to make deliveries. >> mentioned avs and drones. we're invested in these disruptive technologies. we move past experiments in these spaces and truly trying to understand any scale this kind of technology. >> u.p.s., fedex, amazon stocks will be watch ed closely today a large retailer doing local

deliveries is a much different business than these national carriers amazon laumnched a similar service in 2018 and sus spepded it in june of last year. >> how long has walmart been working on this, frank >> melissa, that's not 100% clear. we know walmart has been building up its delivery capability since 2016. back then it bought a company called jet.com for $3.3 billion. in 2018 it launched grocery delivery kind of following an amazon blueprint. >> frank, thank you. frank holland. coming up, the crypto craze has investors looking to cash in on upswings in virtual kurpsys l currencies in bitcoin. there is a dark side with hackers trying to take over

accounts a check on the markets we'll be right back.

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join for free on the xfinity app and watch all the rewards float in. our thanks. your rewards. the crypto craze has boost investors to cash in as the price of bitcoin has soared, but it's also led to a rise in hackers draining accounts, leaving those investors with little recourse.

many customers of coin base where they can buy and sell crypto currency are taking aim at the customer service, saying coin base has left them hanging. eamon javers with the nightmare. >> reporter: discovered crypto kurpsy through tonya's co-worker years ago. they thought the boone could give their family a way up. >> a way to retire and feel secure. >> reporter: so they started buying how did it go at first >> up until recently it was great. >> reporter: earlier this year, they say their account was hacked their investment which it grown from a total of $45,000 to some $168,000 was essentially wiped out. going down to $587. >> i go on my computer and see a ton of security alerts, password changes and i signed on to the crypto and said it's gone. >> reporter: to their astonishment, they say they

couldn't get anyone from coin base on the phone, just email. turns out they weren't the first investors to have that problem more than 11,000 complaints since 2016, mostly related to customer service have been filed with the federal trade commission and the better business bureau in an alert says coin base has not responded to a participate of complaints from consumers who state they are locked out of their accounts, even after providing required information or updates and customers have difficulty reaching the company. >> this not only was our future. this is my kids' future, too. >> reporter: you wrote them and said you lost $170,000 and they haven't called you back? >> no. they still haven't. >> reporter: the crime often works hackers get into the customers phone and responds as if they're the victim, giving them response to the crypto accounts tonya's last communication with coin base came in late may when they gave her back access to her account after she was locked out for a month.

customer service employee, jason rose, says the company's customers need reassurance in taking the plunge into crypto. >> they need that touch of somebody being there while they're going through this complex transaction. >> reporter: rose work ed at con base from 2014 to 2016, and he says the company was phasing out live chat. >> the decision to do that was disastrous, because the time that it took to respond back to emails took a lot longer than it would for a live chat. >> unfortunately most people who contact me would tell you it's poor customers service. >> reporter: david silver, an attorney who specializes in crypto currency cases represents the vidiviks. >> they're being victimized twice. >> reporter: the company repeatedly declined a sitdown for an interview on customer service. instead sending a statement saying in part we grew from 33

plus million users at the end of 2020 to 68 plus million registered users as of june 30, 2021 through all of this growth, some of our customers unfortunately experienced challenges and delays reaching our support team the company would not disclose the number of accountsthat hav been taken over, but a spokesperson said only a small number, less than.01% of our customers have been impacted by account takeovers. law enforcement officials are seeing crypto account takeoves across the country fbi analyst ali camoli told us these are different than those in the real world. >> one different thing about crypto kurpso currency transacts that they're irreversible. that's not a transaction that you can take back. >> reporter: how big of a problem is that? the crypto exchange accounts being completed deleted? >> it's a huge impact on the victims, which is incredibly difficult for them and something we're always looking to help out

with. >> a coin base spokesperson told us it eliminated live chat in early 2020 to avoid those long wait times but as we continue to ask ques questions, the spokesperson also told us coin base will roll out phone support for account takeovers and live chat support later on this year as for the vidiviks, coin base reached out by email a few days ago saying the company would not reimburse the couple because the breach was due to a third party and not coin base's fault. back to you, melissa. >> so many questions, eamon. that's where the first question is this is a hack of the phone service or -- it's not a hack directly of coin base, correct >> right yeah and that's coin base's contention there we had nothing to do with this so the liability is not on us. what happens here is something called a sim swap. that's the most frequent cause of these account drainings is.

that's when a hacker actually goes to the phone company and gets a new sim card, that little chip that goes into your phone, sent to them as if they're you they impersonate you on the phone with the phone company, get the sim card, install that into another phone and then they have access to everything on your phone through that, they can then contact the crypto currency exchange and change all the passwords and redirect the money to wherever they want it to go the question here is, what are the phone companies doing to prevent this from happen ing? how tight do they need to be in terms of their security procedures do they have any liability if they're sending out sim cards to third parties who aren't the real owners of those phones? and then for all the people affected by this, what happens to them? there's no real recourse for the family like the vidiviks they are simply stuck. they thought they had $170,000 and now they have 500 bucks.

>> after the sim card swap it's amazing these hackers or these thieves basically are able to contact coin base and get responses quickly enough to change passwords, et cetera, when the vidiviks and other companies can't get in touch with coin base when they ac actually need help. >> right and that's the real complaint here by the customers, right if you have a bank account and suddenly your $17 0,000 vanishes, you're going to get somebody on the phone when you call the bank to talk about. there's an anti-fraud procedure, elaborate security regimen has been set up over the years with coin base essentially the told us, look, they've been growing very fast and did not have the ability to do time with all these customers who are contacting them. and coin base said it's a very, very small percentage of their overall customer base who have had this problem where their accounts are simply drained. so for coin base and all the crypto currency exchanges, part

of this is growing pains where they'll have to have a much more robust customer service function in order to deal with customers who have had this kind of problem. they're going to have to work on security on their end. you would imagine also working with the phone companies to make sure this doesn't happen to more people. >> right eamon, thank you eamon javers. coming up, we've got some corporate stories to tell you about, including best buy, which reported quarterly results a short time ago stock right now is up almost 5%. check out the shares of bitcoin, holding steady check out bitcoin this morning okay, good yeah holding steady just above 49,000 "squawk box" will be right back.

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couple of corporate headlines we're watching the electronics retailer reporting an adjusted quarterly profit well above the 1.85 estimate better than expected 20% stock is up 4% joe, you're pointing out, though, this key headline. >> the guidance for the same

store growth for the year, the company now sees 9 to 11% versus 3 to 6% previously some of the things that they thought are going to be down are down much less than they thought. enterprise, comparable sales i think it's interesting that -- in fact, in the third quarter same store sales were supposed to be in one area down 1 to 3. they were down 1 to 3. the fact set was down 9. things weren't as bad and in other areas things are much better than expected but the demise of best buy years ago greatly exaggerated. >> huge. >> i bought a tv for a dorm room. >> how big >> 43 inch fantastic. they've come down in -- i didn't order it online. why? i wanted to talk to the guy. >> wanted to see it in person? >> i wanted to see it. i can take it, look at it. there's other things i don't know

online, it's -- clothes are hard enough to buy online. >> right. >> even like a tv, we thought we would never -- amazon was going to sell every tv from here on out and best buy said you know what we're going to have a geek squad, we're going to have this. we're going to set it up here, show different models here you're going to be able to talk to someone suddenly, you know, they're clicking. >> second half of last year was strong, though for them to come up with comparisons and say things are going to be better but maybe it's not entirely a surprise given how strong the housing market has been. >> that's true, too. >> you move, set up the new house. they were buying ipads and all that. >> maybe more online last year but they're multichannel, right? >> they are. >> omni channel as i like to call it. meantime six u.s. states

have declined to join the $26 billion settlement with johnson & johnson. georgia was the latest state to decide its attorney general said the settlement did not guarantee the best outcome for the state and its citizens ford has doubled production efforts for its full-size pickup truck. ford made the decision after seeing strong, early demand for the new f-150 lightning. ford is targeting annual production of 8 0,000 vehicles by 2024. still to come, we'll talk navigating the return to work, and how businesses can accommodate employees while at the same time prioritizing safety it's tough later, we're going to talk to congressmen, congresspeople j jason smith and john yarmuth on the budget standoff. stay tuned you're watin"sawbo ochg quk x"n cnbc

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business community could see the avalanche now of new ma

mandates for covid shots after full federal approval of the pfizer vaccine yesterday the president calling on companies, government agencies and others to step up vaccine requirements joining us now to discuss more is harvard business school professor and author of "remote work revolution. and tom gimble, both brought back by popular demand they may not agree on everything again this time. and the new wild card is full fda approval now, sadal. what would you urge companies to do what are they going to be able to do and how should they do it? >> they can comfortably now move to mandate the vaccine they have some legal leverage if that's an issue and wherever possible, of course, there might be exceptions for individuals, they have to be responsible for the safety of their employees,

both psychological and physical. it's important they do that, particularly for parents with small children who are unvaccinated the workplace cannot be the place where these families are vulnerable. >> you can't make everyone happy, tsedal. you pointed out mandating will al alienate those who don't want to get it not mandating will alienate those who are already vaccinated and worried. it's not going to be perfect you're never going to make everyone happy you need to listen, i'm sure, to your employees. >> you do need to listen at the end of the day, this is a disease, a contagious disease, a health crisis, a global pandemic and it cannot be perpetuated further at the workplace it can be a compliance issue if people do not adhere to these mandates you saw the university of virginia unenroll all these students who are putting others at risk. >> tom, how would you handle it?

the people you talk to, what do you expect them to do? >> i absolutely agree that right now the idea that somebody might be doing something that would be challenged in the courts, mandating everybody gets vaccines, i think it's actually the opposite that if you don't mandate vaccines and people get sick when they come into the office from people who don't have it, that that's actually going to be where the letigious nature of this comes out the president of the united states is saying that companies should make a vaccine and mandate the vaccine and companies are doing that, that's as good a legal defense as you have with the pfizer full approval is hey i can now mandate is what we're hearing from most ceos we work with. >> i'll ask both of you. if you really wanted zero tolerance for this disease, given there's breakthroughs from people who are double vax'd and

given they could be contagious, couldn't a company, if they wanted to go even further, couldn't they mandate weekly testing of people who have been double vax'd couldn't they mandate mask wearing for everyone in the workplace even if you were double vax'd, tom? >> i can speak from experiences. we're still doing temperature checks every single day of people coming into our office. we recommend that of all of our clients, do temperature checks there's still the false negatives, false positives of the rapid test i'm not sure we're at that point yet. you're right if you wanted to be 100% perfect on everything, you would do that you could get a test three days ago and then be positive today and negative from that test. so, i don't think that's very realistic in what we're talking about. it's more about doing things within a logical expectation and execution that's going to make people feel comfortable. >> sedal, you could make that

point that for most people in the great majority of cases, you've taken the worst case scenario off the table when you're double vax'd. maybe just focus on that and, i don't know, would you still socially distance? would you still wear masks would you still test every week, tsedal >> i would part of it is, you need to give people the shassurances that they're coming to a work environment where they can be safe testing with a frequency that makes sense. in some organizations they're testing those who aren't vaccinated more frequently than others and the vaccine mandates, the mask mandates. i talked to 500 people recently to talk about the return to work the number one fear people had was will i get sick as a result of coming in will my family get sick as a result of coming in? and my company needs to assure me that i'm going to be safe

so, they have to do whatever they need to, to give these assurances. >> last time we were talking and, you know, tom, if you don't -- you two disagreed a little bit on the necessity of bringing people back to work i'm going to maybe try to get to that again. >> i'll help you out, joe. i disagree a little bit with what was just said and from a standpoint of the number one complaint that leadership has, whether it's human resources or ceos, or the c suite, is are people living in a bubble when they're not in the office are they going out to restaurants? are they going to dinner are they going on airplanes? really a good thing on that survey of the 500 people would have been, how many of you are not leaving your house, not going out into other public areas where you don't know if people are being tested?

at least in an office that's saying everybody has to be double vax'd, you know in that environment it's as safe as it can get. >> so, you know, going back to the return to work challenges that we had before, i'm going to go straight there, because i've been dying to talk to tom ever since. >> uh-oh. >> no, actually enjoy it very much the idea that remote work does not allow for people to collaborate effectively is the one that i was saying no, no, no but to try to get into people's movements outside of work is very complicated what we can control is when they show up to work, are we testing people are they safe? are we disinfecting? are we ensuring our ventilations are where they need to be? this is what companies can control. this can then become a compliance issue, whether or not they hupgng out the night befor

with extended family isnot a place where we can manage and control this disease. >> tsedal, i kind of was leaning to tom's point i'm going to tell you why. for kids that have had two years off, that have been at home, just anecdotally, going back to school is like, what i don't like being there if it takes too long, it's like they totally forget what it means to get up every morning and get ready and -- i don't think it's a good thing if this sort of lasts too long it's almost you pass the point of no return maybe for workers, too. >> i agree with you violently about kids, had an they need to be in school and we need to have the protective measures for them the return to work, what i'm saying there is that we can rely on remote work, wherever is necessary, in order to advance work and we need to be very realistic

about the fact that we are seeing a workplace renaissance where some hybrid type of arrangement is what people are desiring so, to go back to the prepandemic workplace is not realistic, nor good for the society. >> that's not the question. >> tom, i'm going to speak for you. butts in seats you slackers, get back in to work how is that? >> no, no. >> huh >> i'm going to correct that, joe. everybody has been working i will never say people haven't been working and my company is having a record year. i would say it's return to office not return to work. and the fact is if we're going to say kids need it but adults don't is the biggest case of the pot calling the kettle black collaboration for students, socialization for students, whether you're in grade school, high school or college, it's the same thing for adults. how about people who are 22, 23,

24 how do they assimilate to the work world never having gone into an office we need to make sure we're doing everything we can for the socialization of the work environment. that's what this country is about. that's what real capitalism is about. >> maybe adults need it, too, tsedal, not just kids. 22-year-olds are kids. >> listen, we're assuming digitally enabled work, collaboration from a distance is not effective, doesn't work. it has been around for a very, very long time and, in fact, there's five decades worth of research that s shows which practices you use. it's about advancing in the workplace in this new way of operating. and no one is saying all or nothing. no one is saying all or nothing. >> i agree with you, that it shouldn't be all or nothing. i think there has to be a hybrid when harvard, when the ivy league, virginia, illinois, and the state schools, when they go

to a pure hybrid for forever, kids are going to stop going and paying $50,000, $80,000, $100,000 a year and it's going to be a different approach they're going to say kids need it, they need the maturation and i'm going to tell you, adults need it, too. maybe it's two, three, four days, maybe it's five for some industries when we have truck drivers and retail clerks that have to be in their job every single day we're going to have an upheaval where people will say if i have to come in, why does that 35-year-old marketing person get to work from the beach that's not fair. and i haven't seen someone have a good answer for that. >> i have one. you give people remote working days, find the flexibility as best as you can. if that's not possible, we understand that we can give recognition, we can give financial benefits to those who can't. but to say that the whole world should not advance in this digital economy, using digital tools is a mistake. >> that's not at all what i'm

saying i think we do need some sort of hy hybrid the moment you -- >> you agree with me finally, tom! you agree. you agree. >> i always said i believe -- i always said, tsedal, i believe in a hybrid environment. we have to do that but i believe every company and every university, for that matter, should do what they feel best and people can go there or go some place else people can go to that college or go some place else i have a hard time thinking that harvard is going to become university of phoenix and no one is going to be on site, no one is going to be there we'll sell the real estate and everybody is going to do remote learning. >> that's a shot of boston behind you, tom? >> the greatest city in the united states, joe sxl hold on bear with me tsedal, you're in -- if you guys wanted to go to lunch after all of this, you could easily, right? >> i'll have to do that. >> we can make that happen. >> my treat. >> today i think, all right. >> or maybe a zoom call.

>> or a zoom lunch. >> a virtual lunch. >> tsedal, that would hurt tom's feelings great idea, tom. let's do a zoom lunch. no come on. you guys are physically in the same area. i'm going to work on that with the people -- with our producers here thanks to you both and we'll do it again, tsedal. and i know some good restaurants. i don't know is lockover still open or no >> no. >> oh, it's not? what's good in boston right now? how about the bay club up on top of 60 state, is that still open? >> who knows >> that's not open either? you were there, too. why don't you give a good cambridge -- >> i haven't been there in forever. >> the cooks are working remote. >> thanks, guys. coming up, what investors should take away from the jackson hole summit. we'll preview the meeting and

tell you what it could mean for your investors. futures pointing to a higher open as we start off this tuesday morning. beig bk. rhtac

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tesla ceo elon musk calling out his software team in a tweet yesterday. saying the fsd beta 9.2 is actually not great but says the it team is rallying to improve it as fast as possible, for $10,000 or $199 a month in the u.s. the beta software is only available to those tho purchased it previously. he later tweeted saying he just drove the updated version and much improved. stock is up .7%, joe. >> in chicago. that's why -- it's going to have to be a zoom lunch. >> if they agree on the hybrid, remote kind of thing.

>> good idea coming up, latest on -- >> whether they're still open. >> i know. fnt diner in boss top broke my heart. >> every single restaurant you love has been closed. >> for way more than a decade. budget and infrastructure talks on the hill. congressmen john yarmuth and jason smith will be our guests then this afternoon, companies dealing with supply chain issues, staffing shortages, shifting consumer demands and more make sure to catch cnbc's evolve live stream on retail august 24th, today, at 1:00 p.m courtney reagan will interview the ceos of kohl's plus chewy and learn from the two of them how they're navigating the landscape. recommendation ter at events at cnbc.com/evolve. .

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chief executives of apple, microsoft, amazon and more reportedly plan to attend a white house meeting with president biden tomorrow the topic how private companies are improving cyber security there has been a dramatic uptick in ransomware costing billions

during the pandemic. extended to google, ibm, southern company and jp morgan chase. as the jackson hole summit grows, many expect the fed chair to remain vague about the timing of any taper process or process kick the can down the road matt faber, chief investment officer of cambry investment good to have you with us. >> good to be here. >> some conspiracy theorists, and i use that term lightly, says it gives the fed more leeway in being vague. >> i agree with you. i think they'll be grumpy. they're not all hanging out in jacks ep hole. they're stuck online talking about macroeconomics what are they going to be talking about? inflation. and, you know, i think that they're not going to do anything for the next few months.

they're going to start to discuss, see how this inflation is transitory or permanent the reason that matters for the equity investor is stocks are expensive. stocks are really expensive across the board, any measure you want to look at. this hasn't mattered for u.s. equity investors for decades inflation hasn't been a concern. historically if you look at long-term valuation multiples in that 1% safe inflation zone, that warm, cozy zone, stock multiples are allowed to be the highest they want to be around long term, 22. you get above 4 and they start to slide then they start to fall off a cliff. if you get above 5, they get down around 17, if you get above 7 or 8, they go down to low teens. concern for equity investors, which hasn't mattered in 20, 30 years, is that this inflation sticks around for a little while, which no one wants to

see. >> so, let's just say that the fed does announce some sort of taper timeline at jackson hole or somewhere down the line it will come we saw what the markets did last week it had a little bit of a tantrum, right what would the real impact be if you're saying interest rates don't matter to valuations, which has been a tenant of the bulls for a very long time >> one of the biggest misconceptions i hear over and over is people say stocks are allowed to be expensive because interest rates are low but the crazy thing is they've never stopped to look back in history and say but is that true historically, it's not historically when you have low bond returns, stock valuations have also been low we have this scenario now where the ten-year ratio is almost the highest it's ever been it's at 39 here is the prescription you have to move away from the

market cap waiting in u.s. stocks you have to move to what i call my chart of the year if you go back to the 1920s, the worst year for value ever 1999 we all remember the dotcom bubble this is cheap verse expensive. that was in 2000 that was until 2020. 2020 was worse than 1999 so far in 2021, you have the exact same playbook playing out. you have a great year for value stocks, but it could be a great decade you haven't even had the expensive stuff come down yet in the u.s. so you've got to move miles away from the market cap, waiting where all the expensive stuff is second, and we can get into this if you want, we've got to move away from our shores emerging markets, 15 the cheapest stuff is down around 12. >> so, meb, the hair is on fire for a lot of the guests we have on who say interest rates are low and therefore stocks can

still go higher and become more expensive. doesn't the backdrop of why rates are low matter r rates are low in this particular circumstance because of the fed's liquidity, because of the expansion of the balance sheet there has to be something said for that, though doesn't that change the context of that research >> yeah. so, look, if you look historically, low-bond yields are bullish for stocks that has always been co-inherited with low valuations and the reason bond yields are low is because trailing economic growth has been terrible trailing stock performance has been terrible. inflation was high all these bad things, right? we don't have any of those things we have the opposite scenario. we've had great growth, great stock returns. you have this suppressed interest rate environment and high stock valuations. and so it's setting up for a really nasty possible outcome

for market cap weighted stocks whenever this turns. this fall, 2022, 2023, i don't know i'm a trend follower at heart. one of these days we'll look around and it will happen quickly. in the meantime, you can hang out. in the cheap stuff and add tail risk that's one of the last things we a add. oldest fund is a tail risk fund that lets you participate if things happen quickly. >> we heard from some people that rise ing interest rates, se historically, in certain times, have meant higher stock prices because it means, i don't know, that the globe is recovering or something. >> yep. >> to a point i guess. do you think that could happen and when would it reverse and start being restrictive? what type of level on the ten-year would you think >> yeah. look, you have to go back to the 1940s, 1950s, similar

environment, where you had low interest rates for an extended period when they started going up, you had monster stock returns, some of the best we've ever had in the u.s. in the 1950s, 1960s, if you remember that, of course, set the stage for 20 years of no stock returns after. the problem is, we've had a monster, monster bull in the u.s. that's been going on since the financial crisis and a huge dispersion between u.s. and foreign the biggest valuation gap we've ever seen in 40 years, u.s. stocks versus foreign stocks playing out. i think there's not a lot of opportunity in stocks, just not in the u.s., large cap, market cap weight. >> the tail etf is down 20% since its inception, meb it's hard to buy that sort of etf in a market of bulls. >> that's a good thing you want to lose money on your insurance. you wake up today and say, my

god, i'm so sad my house didn't burn down. once it buys puts. that's hat fund does, and pairs it with ten-year bond. you don't want to own it for a large part you want to own it when times are bad. it was up in a year when stocks were up. it actually did its job. the comparison you want to make is to the rest of the inverse funds. this is the cheapest fund in the entire category. on top of that, it loses less, because it's using the puts as opposed to inverse, double leverage, triple leverage, and compares it with bonds to try to pay off some of that premium. >> thank you, meb faber. coming up, congressman john yar muchlt th and jason smith, to talk about the house budget fight and how and whether a resolution can be reached. later today marks tim cook's t ten-year anniversary as ceo of apple.

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i've loved trucks since i was a little girl, and now i get to drive the biggest, coolest trucks there are on the road. on my routes on a daily basis i might have 1,100 to 1,400 stops which to me that's 1,100 opportunities to connect with my customers. everyday is another chance to bring a smile to someone's face, and that's what makes me excited about tomorrow. good morning futures pointing to a higher

open as wall street looks to continue a broad rally among this week's upcoming test, the annual jackson hole summit why goldman sachs is raising the odds on a fall taper china-based tech stocks are rallying big driver straight ahead. plus a decade at the helm. it's been ten years since tim cook took on apple and investors are cheering a more than 1,000% jump in the stock since his tenure the final hour of "squawk" begins right now good morning welcome back to "squawk box" here on cnbc live from the nasdaq market side in times square i'm joe kernin, along with melissa lee. becky and andrew are off this is in the our last hour another ten hours we have

together this week. >> i'm counting. >> that was fast. >> ten and counting. now less than ten. there are the future this is morning after upset yesterday. big rebound on friday. nice up session yesterday. treasury yields fell about one point, 2.6% or so on the ten-year, which we just had a long discussion about with meb faber? >> just like david. >> just like faber, just like the college. >> yes good point there i don't know what you're talking about. >> honest ly >> i don't. >> animal house. off limits not allowed to talk about it. >> i don't know these things. >> i can see that. dom chu knows about those. >> everyone just remain calm, all right? everyone remain calm

anyway, my little hat to animal house. one of the biggest drivers of the last week's worth of moves to record highs. we're getting more retail earnings crossing this morning, mentioned advanced auto parts earlier, started off with a headliner after that, best buy earnings those shares are up 4.5%, decently heavy volume for this time of the morning. it comes out, the consumer elec electronics retailer posting better than expected profits shall better than expected revenues, better than expected same store sales and boost its forecast for the rest of the year why? a lot more folks are spending to upgrade their homes and offices to theose computers because they're afraid maybe covid comes back or work from home happens to stay. beneficiary up 4.7% right now. also in the market with shares

on the move as well, we want to take a look at pfizer, down fractionally after a big move higher on the vaccine full approval news. we just learned over the course of the past 24 hours that cathie wood actually boosted ark's stake in pfizer. we're watching pfizer and ark genomic revolution a lot of folks on the innovative etf. chinese internet stocks catch ing a big bid this morning as well a lot of them have been hammered, no doubt about it, over the course of the past several months lost half its value since its highs earlier this year, pinduoduo up 11% massive moves higher in context of the huge moves lower the last several months

we'll finish off, as we often do in this final hour of "squawk box" on this particular day, ticker semps on cnbc.com from yesterday's full session ten-career note yield always in one of the top three spots number one spot there. pfizer, no surprise on the vaccine news, moderna, no surprise there on the vaccine news and alibaba on the chinese side of things and apple as well you mentioned these names catching a huge amount of interest on our website, melissa. those are the most popular from yesterday. >> i was about to ask about alibaba. we did see a big bounce for chinese tech stocks in the u.s. but it was a relative underperformer and i thought that was interesting, considering baba has been the one in the crosshairs repeatedly even with general swipes at the tech sector in china as opposed to bab aa's specific news.

>> i spoke to some traders about this baba is always one of the most popular, top 30 or 40 ticker searches on cnbc.com on a daily basis. it's kind of become like the apple, if you will, of that chinese internet trade it's massive it doesn't move all that much. it has been an underperformer for a while now. some of these other chinese internet names could provide more outperformance, more juice, given the moves they've seen h higher alibaba one to focus on here if you look at the other names we're seeing, who trades pinduoduo offer jd as much as they do baba they're on the radar but they might be slightly less evident to certain other investors than baba is. joe, melissa, i kind of figure if you take a look at these names in the premarket trade the issue is whether or not they do stay that way. remember just yesterday we highway report on cnbc pro for our subscribe rs there, goldman

sachs was saying hedge fund under performance was due to ownage, if you will, of these chinese internet names guys >> thanks, dom sxwh that was a good quote everyone remain calm how about seven years of college down the drain. >> that's a good one. >> and double secret probation anyway from animal house to the house. how about that >> great transition. >> washington news, the house scrapping a plan yesterday for a vote to advance two economic proposals. the chamber will reconvene today as democrats try to break a stea stalemate with how to proceed on president biden's economic agenda congressman john yarmuth of kentucky, budget committee chairman and congressman jason smith of missouri. even if speaker pelosi and the

left didn't get its way and get a vote on the reconciliation before you did the overall infrastructure, there's a lot of moderate democrats you don't have on board for $3.5 trillion, aren't there >> there are a few, no question about it, joe. that's the political reality we f face we have a very diverse caucus, very liberal members and more moderate members the important thing to remember, though, is that the content of the $3.5 trillion plan, which is basically what we call soft infrastructure, these are support for american families, education and so forth, and climate change policy. these are enormously popular not just with our caucus overall but with the american people while we may have a slight difference on how much we should spend on which type of initiative, overall we have

almost unanimous support in the caucus for that. we do have enough people who want to hold us hostage to get what they want. >> and you've got some repu republicans that, a lot of republicans are mad at the republicans that signed on to the bipartisan deal. you got that done. why don't you get while the getting is good? you're not going to get $3.5 trillion get while the getting is good on the $1.2 and then start bargaining for what you are able to get moderate democrats? you call it soft infrastructure. i came up with a better term what about metaphysical infrastructure >> metaphysical? >> spiritual spiritual. >> i think things like child care and early childhood education and community college and other things like that are not metaphysical issues. they're critical. >> congressman, it's a democratic wish list that they've wanted for the last 50

years. >> it can be that as well. that's all right you know, the plan, joe, when the biden administration released it, they didn't call it infrastructure it was the american jobs plan and the american families plan and they represented, i think, a visionary approach to what this country needs to make sure that a generation or two from now, we have a viable society and economy. >> congressman smith, is that how you view it? you might have a different viewpoint. >> yeah, i definitely have a different viewpoint. this $3.5 trillion spending package is nothing but a disaster it's a job that rewards political friends, allies and donors it puts tax increase on all working class families it increases taxes on job creators to such a degree that it would make our tax rates higher than that of communist china. right now we're facing four major crises in this country,

inflation crisis, border crisis, energy crisis and an afghanistan crisis this piece of legislation only makes all of those four even wo worse. >> what do you think is going to happen, jason, in terms of -- how does it move forward or does it not move forward? certain things you'll not be able to stop. >> joe, they simply don't have the votes. that's why we're at a standstill right now. week of july 12th we were supposed to have a markup on the budget committee, they had to cancel because they didn't have the votes. before the august recess we were going to pass the house budget off the house floor. they didn't have the votes last night we were going to pass the budget resolution through the dean rule through the united states house of representatives. they did not have the votes. at the current moment they're about to go into a conference at 9:00 because they don't have the

re votes. the reason why they don't have those votes those moderates have been back home in their congressional district and are reallying from their constituents that this is the wrong plan at the wrong time for all the wrong reasons. >> if you had to give me an answer with no negotiations or spin or anything else, what do you think the final reconciliation bill actually looks like does it come after the infrastructure bill is already voted on, or do you think speaker pelosi sticks to her guns what do you really think happens? >> joe, i think what's going to happen is that there will be a guarantee to the moderates that there will be a date certain to vote on the bipartisan infrastructure legislation and then -- that's in exchange for voting to take what is a first step in the reconciliation process. this bill that we'll be voting on, the budget resolution,

doesn't spend a penny. it just starts in motion the process. 13 committees in the house and about the same number in the senate will be drafting the legislation, will implement child care, climate change policy in the package. whether it ends up being $3.5 trillion is debatable. there are those moderates who would like to spend less and raise a little bit less in offsets. that will be work ed out over th coming months. right now we need to get the process started. that's what the senate did when they pass this had budget resolution what we're trying to do is to institute policies and programs that the vast majority of the american people think are crucial to their life. and child care being one, early child care education being one of the things we can do as a country. almost every advanced nation does that. and we don't we need to do that

we need to do some incentives for changing climate policy. we need to provide infrastructure for our seniors so that they all have retirement with dignity and that's a real problem right now. and that's why the biden administration committed so many resources or proposing to commit so many resources today. again, we're very confident that the american people support what we're doing. but we've got a few people who took the position that you essentially did, at least was implied by your question that is why not take the bird in the hand we understand many people, far more than the nine or ten who are taking this position right now. there are far more who say we're not going to give up the chance to pass the -- your word, metaphysical package. >> metaphysical, spiritual. >> i kind of like that they're not going to give up any -- they want to avoid the risk of those moderates bailing on the spiritual infrastructure

package. >> so, jason, in your view, do republicans think an overwhelming majority of the country is behind that is that the polling you just conceded to congressman yarmuth? that's a factual point that the vast majority of americans are ready to spend $3.5 trillion on a democratic wish list >> they absolutely aren't. this budget resolution spends $68 trillion over the next ten years. the highest spending in the history of the united states if you count the spending that the democrats started since they took over congress in 2019 combined with bernie's budget proposal here, that is more spending than all of taxes that have ever beencollected in the history of the united states

when we are already facing inflation of the worst kind. in my colleague's home state of tennessee, gas prices are up 74% this year alone. the american people are not happy with the rising cost of inflation. that means they have a higher cost to put food on their table, gas in their cars, clothes on their backs. they're not having it. they're not for it that is why they can't get the votes right now. >> last word, congressman? i was going to ask you about kentucky i'm worried about covid. i'm from cincinnati. things are -- >> yeah. it's a shame. >> go ahead, john. >> we have a great governor who is doing his best. unfortunately we have a republican-nominated state we now have all 120 counties in our state are in the red zone. this is the constant vaccination misinformation and fear stoking that we've seen. let me go back to one thing. one thing we haven't mentioned about this plan is it would extend vision hearing and dental

benefits to people on medicare that polls at close to 90% support with seniors over 65 that's expected. that's just an example about the broad public support for what we're trying to do. >> thank you, congressman yarmuth and congressman smith. appreciate it. >> thanks, joe. >> things will be in earnest again. we'll see which way it goes. >> thanks. coming up, streaming wars. a netflix announcement about its fall lineup means for the company, its stock and the industry other headlines, medtronic, at patients underwent nonurgent procedures that had been delayed by the pandemic. cigna, $2 billion accelerated stock repurchase agreement. shares of las vegas wynn and accepted resorts, those stocks

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points, up 70. we had a big session in the indices. nasdaq up 24 oil prices look pretty solid given that they've moved around but holding about 65 almost up a dollar today netflix is rolling out a huge lineup for movies in the fall julia boorstin joins us with what this could mean for movie theaters and streaming wars. i hope you'll give me a thumbs up or thumbs down on the movies or rate them somehow. >> joe, i vpt watched them yet this is what we'll be watching when we'll all more likely to be home this fall due to delta. that's what people are looking for now, what is going to happen with these movies? netflix announced a massive fall lineup, 42 original movies,

ramping up its output. that number, 42, is more than double the movies that t traditional studios would release in one year. the sheer number of films is more than usual due to production delays amid a lighter release schedule the first half of the year and a test in netflix's ability to deliver high-quality, original content at scale it's also an opportunity to jump-start subscriber growth with big stars from michael keaton, to gal gadot, and idri elb among others other streaming services don't have anywhere near this number of original content launching this fall. questions of the impact of the delta variant we'll have to see

if this new content available at home gives consumers another reason not to make a trip to the box office of course, guys, we have to see how many of these new movies ar good and if any of them become the kind of cultural phenomenon that can drive new subscriber growth guys >> i'm wondering if there's such a thing as cultural phenomenon when melissa, i try "animal house. i don't know if there's anything that we can count on anymore, julia. my whole world, not knowing "animal house. what should we expect from the other streamers? >> look, i think it's interesting, if you compare what netflix is doing with its original content strategy to what hbo max has done. hbo max has 17 movies that were intended to come out only theoretically or traditional theateric release. it's also, of course, putting them on hbo max. we'll see some very big movies from warner brothers, the studio

aligned with hbo max such as "dune. those will be available on the st steamer at the same time they're in theaters. back when hbo max made that announcement, by then it seemed like, of course, people would be back in theaters of course covid would be abated. now we're looking at a fall where more people may be wanting to stay home the more content these services have, the better chance they're going to have to compete but, you know, people want new, original content and i think the ability to see films that seem like they would be in theaters or actually are in theaters at the same time is a big advantage. i think hbo max certainly has that advantage going for it through this fall. joe, it will be interesting to see which of these netflix movies get oscar nominations with the limited theatrical release. >> as good as that -- what was that movie, julia, with the drummer that we loved, both of us, so much? miles? remember that? >> whiplash.

not a netflix movie. i always love the fall movies, joe, because these are supposed to be the oscar-caliber movies that get the nominations i'll be watching them mostly from home this fall. >> julia, thank you. you asked me -- you said "animal house," the one with the gopher. you said that to me. >> i did not. >> the one with the -- that's "caddy shack." >> i realized that after you pointed it out. >> this is the one with the dead horse, the one with the -- john belushi. >> i know a little bit about "caddy shack." i know the gopher in "caddy shack. you should see the look of disdain on kernin's face right now. >> it's not disdain. it's disappointment. heartbreak the story behind the bitcoin bounce cryptos are bouncing after bitcoin actually crossed 50 k for the first time yesterday since mid may. it is hovering there stay tuned u'yore watching "squawk box" on cnbc

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now to the bitcoin bounce. kate rooney is covering business news for us. >> bitcoin's year-to-date gains

stand now at almost 70%. still looking to recover that high above $60,000 it hit in april. ether, second largest crypto currency is trading around the $3300 range as well as crypto related stocks this week coin base, for example, getting a boost after adding -- announcing it would add more digital assets to its balance sheet. we had paypal higher after expanding its crypto offering to the uk this week as well and we also saw a group of small cap crypto mining companies rise on the back of those higher bitcoin prices even though crypto companies didn't get that carve out in the infrastructure bill we talked about. analysts are pointing to that as one thing adding to positive sentiment lately around bitcoin. others, though, are pointing out new signs of fraught in these markets based on what's happening this week in nfts, none fungible tokens

picture of a rock selling for $1.3 million known as ether rock. one of thousands of digital avatars. lot of action in the nft markets. melissa, joe, back to you. >> i thought the crypto lo lobbyists, who actually succeeded in terms of showing their case in the taxes was a compelling argument, kate. it's an interesting line of thinking that the lobby is so strong so that gives investors hope that any future regulatory press could be put at bay. >> absolutely. it would seem to be a big headwind at the time, not getting that carve out in the infrastructure bill raised attention in the markets and showed there are high-profile backers, jack dorsey got a lot of grassroots attention on twitter as you said, seems to sort of

now be looking like a tailwind and something that could help boost markets going forward. >> kate rooney, thank you. tim cook marking a decade at the helm of apple, the stock up more than 1,000% since he took the job. we'll talk about the highlights and what the next chapter might bring. stay tuned you're watching "squawk box" on cnbc for mac. who can come to a stop with barely a bobble. lucia. who announces her intentions even if no one's there. and sgt moore. who leaves room for her room. with usaa safepilot, when you drive safe... ...you can save up to 30% on your auto insurance. get a quote and start saving. usaa. what you're made of, we're made for.

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good morning welcome back to "squawk box. nasdaq looking to be up by 1 we've weakened a little bit on the nasdaq front treasur treasury yields are steady let's check in with rick santelli in chicago. the dollar also firmer this morning. it's a case of stabilization across the board here. >> yes you know, it's very interesting, because i never have seen traders so attuned to try to find any clues regarding how the delta variant is going to potential impact or how it will impact the economy

we know it has dented consumer confidence to some extent, yet as we look at many of the other metrics, it certainly seems as though we're assimilating and accommodating and learning to live with the varpt. there is an impact ultimately how the impact a affects the fed decisions and kron affects the chronologic input. the quantitative easing program where the fed buys certain to keep rates low, will it have a positive effect on the headwinds right now that are directly or indirectly affected by the variant? the answer, no matter how you think about it, melissa lee, is no there is ongoing potential

damage rosenberg put out a piece that he thinks the black swan will be housing again and make 2006, '07 and '08 look like child's play i didn't bring that up because i agree with it, because i really don't. even though the delta variant may set a pit for the fed to use more calendar timeline and more runway here, i don't think it's a very good idea interest rates in the equity markets are certainly reflecting a much more positive attitude that we can work through this than not. >> i would think, rick, that the fed is calculating that, and that's why we have heard from various officials that the time line really is in the fall and that's why banks have moved up their time llines as well. even though the delta variant is go going on and it looks like many of the states have seen really terrible caseloads, all those

nu numbers seem to be rolling over or indicating that they're close to rolling over, that maybe the fed is going to go ahead and do this because they recognize that risk/reward balance that you had highlighted. >> yes, exactly. and that's what i see in the ma marketplace. but it isn't necessarily what's going to happen. in the marketplace, keep an eye on junk bond spreads as they widen out a bit. consider we had a double bottom and last week we held low 120s to get back close to 130 it certainly seems that the markets agree with the statement you just made. but we're all kind of held hostage to the fed to some extent if the fed delays this morning, i think that would actually be a positive for equities but not so much for the fixed income markets. >> okay, rick. thanks i was going to ask you something but never mind maybe some other time, rick. >> can't you just say -- >> well, i just think -- >> ask him what you're going to ask him. >> because i like -- i kind of

have a little bit of a soul mate occasionally with rick what's going on in washington, how rick thinks this is going to play out they probably don't want us to talk about it. it's just unbelievable. >> joe, you know how it's going to play out. you know how i think it's going to play out. the speaker of the house is being forthright when she said she pretty much doesn't want to pass the infrastructure bill without the budget blueprint and they could have all these committees and they'll have another vote today but that's the way it was on day one when all this came about when we talked about you can't have one without the other i'm not sure that much has changed, even though it seems like you have different factions in the democratic party. in the end, this isn't a genuine infrastructure package they tied it together. it's more gamesmanship than it is reality. >> it's amazing. there are republicans that said hey, we did it bipartisan. we got rid of a bunch of stuff, you know, so it's just infrastructure so we're on board, knowing that the next thing has all the stuff they just negotiated, supposedly, to

get out of the bill. it's coming anyway and they're willingly being led down the primrose path it's amazing to watch. i don't know what it finally -- >> are they being led down the primrose path or looking for an easy way to spend some dough and kick the can down the road there are certain conservatives and certain republicans, i'm not sure they all fill in the same category, but ultimately this will be decided in the mid-term ele elections. and timing is going to be crucial with regard to how that $3.5 trillion budget blueprint moves along. >> i saw a couple of comments after the last interview and said how can i actually get -- i can have a couple of heads maybe explode if i ask santelli to weigh in on it i might have pushed them right over the edge. i'm not sure what happened. >> i see a lot of blue smoke hazing over the city i think some heads did explode. >> i can't stand these words

it's like, la, la, la, la, la, i'm not listening. today marks the tenth anniversary of tim cook replacing steve jobs and leading apple to new heights josh lipton joins us now he has been following the cook era closely, as closely as anyone, that tech giant. hey, josh. >> joe, there are different ways we can judge the performance of a ceo. one way, of course, would be financial. we can look at stock price apple named tim cook ceo on august 24th, 2011. since then, apple stock is up more than 1,000% versus a gain of 280% for the s&p 500. revenues growing more than 150%, to 274 billion through fiscal 2020 apple's market cap sky rocketing from 346 billion to nearly $2.5 trillion the company, we know, has very deep pockets, net cash position of 7 billion dividends paid nearly 103 billion.

some worryied when tim cook took over from steve jobs, a visionary who could wow audiences with the latest and greatest apple products, engineer and supply chain guru, how could he ever fill such big shoes? cook chartered his own course, telling reporters the challenge for all of us is to be the best version of ourselves creative strategies, long-time apple watcher, says cook has put his morning on this company. he helped change the narrative for a long time apple was thought of as a boom and bust story. today they consider it a strong, sustainable business and cook proved he can launch new, popular products as well. a watch, air pods, music video and other subscriptions. now one big question that investors will start asking in the next couple of years, who ta takes the baton from tim cook? melissa, back to you. >> josh, thank you joining us now to discuss more about tim cook's last ten years of ceo as apple is bernstein

senior analyst good to have you with us what's tim cook's challenge for the next ten >> good morning. the challenge is sustaining the success that apple has enjoyed when tim cook took over, that was the real question in a post steve jobs era, can apple continue to see success? as josh outlined the numbers are tremendous, a $350 billion revenue company. and that makes growth more challenging. apple grew 3% per year this year growing 35% per year the immediate near-term challenge is after such a herculean year where every business has really fired on all cylin cyliders, what can apple do to continue to demonstrate its growth profile >> what do you think that would be would it be, for instance, making the phone something more like a leasable piece of

hardware phone as a service, if you will? would it be attracting new -- i don't know, more in the gaming ground what could it be, toni, that would continue to grow rates >> what apple has done successfully is attack it through various angles we look over the tim cook era, about $40 billion worth of growth have come from wearables, largely the watch and the air pods and there certainly could be more growth from new products, headset or glasses in the vr space. the second area has been through services while tim cook has been ceo, services have gone from about $10 billion to $70 billion an increase of $60 billion in revenues the challenge there is to continue to introduce new services obviously they've introduced apple tv plus. they've introduced apple pay, et cetera, et cetera. and the question is, can they continue to build on that?

one of the areas we're most excited about is apple's advertising business, which is just a few billion today, but was a few billion in amazon four, five years ago and today is a $25 billion business. we think that's an opportunity for apple. and then to continue to evolve the iphone, which remains about half the company and i think your suggestion, melissa, about can the phone perhaps reinvent itself as a service going forward has always been a question among apple watchers. >> is there an heir apparent, toni what we learned when tim cook took over is that you may think the ceo will be there forever and the ceo is fantastic and great, et cetera, but they won't be that's the fact of the matter. so is there somebody you think, it would be a seamless transition if this person took over >> it's not clear. and i think it's important to recognize that tim is 60 and in good health, and has said that

he would like to be ceo for many more years not ten, i think he said, but many more. that's another challenge for apple over the next three to five years, is thinking about a succession plan. in tim's case, he was the coo. apple has a coo today. he's pretty similar in age to tim, so it's not clear that jeff williams would necessarily be the heir apparent. there is really good, younger talent at apple. fred federikis could be a potential heir apparent. that will be an important thing for tim not ohm for himself but other senior marpgs within apple. >> if i could switch gears to tesla, i know you're not a ford analyst per se but i'm sure you're watching what's going on with ford in the news it's

doubling f-150 lightning production, and them saying that's still not going to be enough how does that impact, if at all, your outlook for tesla, when you have the nation's best-selling pickup truck becoming electrified? not only that, but the demand is so brisk so far that ford is already doubling production. >> well, look, i think we're at a tipping point for electric vehicle acceptance evs are only about 3% of cars sold today we believe that will go to about 80% by 2040. this market is going to grow a lot. and there's room for many players. hummer has an ev, et cetera. we're going to have an increasingly crowded space the good news is that the market is going to get bigger and bigger so i think ultimately there's lots of growth available for the taking it's not necessarily a zero sum

game tesla is not, itself, going to go from having, you know, supporting the majority of the market when it's only 3% of sale sales to supporting the majority of the market when it's 80% of sales. at the margin, there will be more competition and ultimately tesla may have to adjust its price or offerings over time it is really important to note that the market will get 20 times bigger going forward and so even if tesla's share gets cut in half, which we suspect is likely, there's still lots of opportunity for tesla to continue to grow. >> toni, thanks. toni sacconaghi. what we'll hear from the fed at the jackson hole summit pallo alto scyber security company offering upbeat results

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we are morgan stanley. let's get down to the new york stock exchange. jim cramer joins us now. hey, jim >> how are you doing >> good, good, good. best buy is looking real strong. tough comps and they're still raising guidance for comps. >> she's talking about some really interesting things involving membership and, you know, what's -- i think that

this is her description of where business is coming from is pretty extraordinary you know, i've got to tell you, this is probably a more important than people realize. you know about discretionary we can all live without anything best buy sells computing, that has a lot to do with work-from-home hybrid model. one of the reasons why such great numbers in palo alto how far is your -- you have a home office? >> do i have a home office no i come in here i come to the nasdaq there are still plenty of peopl now. >> i am -- i am, because i feel we need backup and i find myself thinking, okay best buy on the channel. that's crushing it for them. omni channel, so strong. just, look, i happen to like to shop there, anyway always felt i actually get help if i needed it, but it's all coming together for themand i

think it's a bountiful quarter. >> what a stock move this morning. jim, great to see you. see you soon. >> oh, okay. talk to you soon bye-bye. >> he said, holding its annual jackson hole summit, going to be virtual this week, and in a new note, goldman sachs economists are raising odds of central bank will announce the start of tapering in november go from 25%, likelihood 2to 45% expects brond by $40 million at each meeting i don't know what that was and joining us from research partners a baird company in its own recent appearances, you're not quite as happy about the way things are going is that still fair to say? and what are your concerns, jason? >> joe, i think that's fair to say. i think obviously the second year of a bull market, we're well into, you know, is harder than the first and you have a lot of, obviously, a lot of

challenges that are ahead of us. not the least of which is fed tapering also you have a budget, which will likely include tax increases. and you clearly have higher inflation. i think the goal posts on inflation, transitory removed earlier from earlier this year, where it was considered to be a couple months phenomenon and now here we are in august, and the numbers are much higher and lasted long than people suspect. put all of those things together, it's just hard when the market's trading where it is to get particularly excited about at least multiple expansion, which would suggest that the returns on the market will be lower moving forward. >> knowing you as i do, we can have corrections and pullbacks, but stocks over time go up, and there's, you know, usually a secular bull can last a long time i don't know if you're casting that viewpoint aside

what needs to happen in the next couple of years or next, let's say the next year and a half, and then after that, next two and a half years are there things you think, if we fully went all-in on the euro-style entitlement stake which is, we're taking -- these aren't baby steps anymore. >> we're getting closer. >> hearing what entails in infrastructure basically an entitlement state. we know how that works and supposedly it's going to be paid for. if paid for by higher taxers on the wealth creators. if not paid for, it's going to be printed which means that slows growth down the road, because you're paying debt service. would your whole thesis change if all of these things came to pass, and if didn't get rectified at the next election >> well, joe, one thing that is different between the u.s. and europe is, and it is partly

because of the system that we have. it is much more entrepreneurial, and we have sectors -- >> now -- >> now. >> right precisely. particularly as it relates to some taxes discussed in this new infrastructure bill, the guilty tax. there is a chance that you, you know, you've killed the goose. it's clear to me european stocks may be doing well now trailed as discount to u.s. stocks as long as i can remember and there's a reason for that. it's because you don't have the type of innovation and entrepreneur is as you've had in the united states. so it's no divine right. i would just say this, for the united states. to continue to have innovative companies, to have the reserve currency those are hard things to lose. i'm not saying that we're at risk of losing them imminently, but, also, if you're a student

of history you realize there are many, many societies throughout time that have had to reserve currency or center of the universe economically and lost it through bad policies. so i think -- i believe in american exceptionalism but i don't believe it's so exceptional it can withstand really bad decisions over a long period of time. >> well, so what's your -- what do you think's going to happen do you think we're going to maintain, you know, historically we've gone back, and i thought started losing our way in the '70s i was there, watched it. i watched a snap back fairly quickly and in subsequent decades. but there's no guarantee that someone saves us this time >> no. i think a lot of that will, i think, will fall to put the responsibility on the republicans to have, you know, to act on principle, and also

democrats, too i think moderate democrats i think as you're seeing over the last week with afghanistan, too, though. events change people's minds, and basically politicians are, they're entrepreneurs in their own for their own power. and the -- the place to move pretty quickly we'll see how things work out over the next four, five weeks this is going to be, as one of my colleagues say, a september to remember. you have a lot of things going on here. you have expiration of unemployment benefits a new budget a debt ceiling. you have what we'll see is the withdrawal of afghanistan, if we can extricate ourselves from that situation gracefully, that might be one thing if we can't, that's quite another. there's a lot of things that over the next four, five weeks that will present challenges and

headline risks for the market, seems to me. >> long term, i don't know there may be -- that's what i was kind of getting at ulf always have corrections. also figure ewing snap back,ing bullish again. there may come a time you're like, whoa got to go. i'm sorry. this morning's, big market teams. we'll be right back. hat how you hold a mirror? [ding] power e*trade gives you an award-winning mobile app with powerful, easy-to-use tools and interactive charts to give you an edge, 24/7 support when you need it the most and $0 commissions for online u.s. listed stocks. don't get mad. get e*trade and start trading today.

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good tuesday morning welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber bulls try to rally around vaccine approval hopes, jackson hole hopes and new signs of policy support in china. hang seng up 2%. china tech up 7% beginning with rally on. chinese tech names surging reversing course as bargain hunters search for value. >> plus the faa opening a new broad review of boeing we'll tell you what they're looking at. >> and, "actually not great.