all right, make sure you join us tomorrow because -- >> it will be us. >> it will be us again tomorrow, i don't know, if you get up. it was hard today for her. "squawk on the street" is next >> good wednesday morning. welcome to "squawk on the street." i'm carl quintanilla with gjim cramer there's a lot to watch on vaccines, retail earnings, meme stocks and the white house summit on cyber security our road map begins with signs of a potential delta variant peak stocks are sitting at record highs.

j&j backing a booster. >> plus, the u.s. is reaching a deal with nvidia for a super computer this as it waits for a delayed intel machine. >> and a cyber call to action, the president set to meet with the ceos of apple, amazon, google, jpmorgan, and others about the growing cybersecurity threat overall, though, jim, a lot of discussion about the rally we've had the last couple of sessions, whether or not positioning was just too cautious in the wake of what we think is a rollover in delta. >> i think that we're kind of between the rollover of delta, but the smermoderna and pfizer,y only have effectiveness through six months we do get this j&j news. my information is source from pretty good places, and j&j news is great get a booster, but i think that we're all discovering that we thought that we were protected

and we keep trying to figure out how could there had be so many breakthroughs on month seven, month eight. of course the fda is only advising that -- i think that's because they don't feel there are enough boosters or they don't feel people will take the booster, take the actual if it only lasts for six months so i think that there's this -- on the one hand you've got these companies that were prepared the most for the consumer to come back on the other hand, we have people saying we have to get the hell out of dodge, panic fashion, and these are people who are beginning to realize like goldman sachs that it's false protection now, it does give some protection, and we've got to be very careful it's not leading to deaths it's leading to sickness we're not using the regeneron drug to be able to keep people out of hospitals but there's a panic among many hr departments in this country realizing that what the heck. i thought moderna and pfizer had longer staying power and they

don't. >> this cdc study of front line workers where efficacy goes from 91 on this one study to 66 i mean, the point's been made, you would take that vaccine, still take the vaccine. >> i take a vaccine every year that's less than that. >> yes, but i think there's a difference between getting that good news and thinking that you had better news. look, obviously the government has no interest in trying to make it so fewer people take the vaccine, but if i were the texas governor, i'd say, hey, big shots, trying to get us to take pfizer and moderna well, that's like take ago flu shot op optional in this country, my friends. optional this is not what we wanted if you're in favor of vaccination. >> if you thought you were going to have a very high level of immunity for a very long period of time, perhaps that's not what you want so a lot of moving things here >> you know what you have to do. >> i made the point as well about the psychological barriers of saying covid and whether or

not it's any worse than getting the flu. >> right >> if you've been vaccinated, not obviously otherwise. i don't want to even -- >> i've known you for a long time you have always said that i am basically a dollar sign represented by a man >> occasionally i say that. >> i'm going to give you the occasion you worry about this discussion, buy abbott labs. >> all right what, because of the test >> well, if you had moderna or pfizer and you thought that you were okay, well, then, you're just a dang fool it's time to test my friend. you test this morning? >> no. >> well, get with the program. >> all right getting a test is get a getting a lot more difficult >> you got this little thing, you dip it, it's six drops >> i've got a few at home. i've got to do it today, i think. >> you want to sit next to me?

>> wednesday is testing day. >> get that swab, 15 minutes one line you're right there. two lines sayonara >> okay. although you're not going to -- you know, you're protected. >> i don't regard anything as protection these days. >> really? >> that gets to the point -- >> maybe i need seven moderna. >> at what point then do people feel really comfortable coming back to the office, or is it never? we live with it. >> when do we learn that we can live with it. >> i talk a lot about the antivirals they're still moving along there's a pfizer drug. these are going to be important, perhaps more important than we might have previously anticipated. oral antivirals, five days, let's say if you test positive, you take them, and they knock down the virus dramatically is the hope. >> that's the hope. >> that's the hope of you. >> what, you're just negative. >> no, i'm realistic.

it's been a very jarring group of days for people who have been trying to did -- >> but if we live with it and if you do get vaccinated and people are not ending up in the hospital, and they're not -- many of them are not ending up particularly sick. >> right. >> does that change people's view over time or not? >> fedepends on your age group. >> depends on one, your age group or comorbidities and two, long covid >> yeah, something we don't understand by the way, there are more americans in icus with covid right now than there have been throughout the course of the pandemic 25,000 americans. >> why don't we get down -- why don't we call regeneron and have them airlift the regeneron drip. >> the vast majority of those people were not vaccinated >> 90%. >> but they should be right to have the regeneron, just because they're not vaccinated. >> but you keep talking about

regeneron. regeneron use has dramatically gone up. >> 50,000 last week. it's nothing >> and why do you believe that it's not being used as often as it might be. >> nih, fda, cdc. >> and why would they be against that >> what do i like -- >> you keep bringing it up as though -- >> okay. let's just -- >> why i mean. >> because they're not doing their jobs because they wouldn't do what you're doing, common sense no leadership. no discussion. no idea what they're doing eight months, how about six months we say six months. maybe the anti-vaxxers won't take it. we say six months, maybe we don't have enough vaccines we say six months maybe cvs is overwhelmed. j&j pulled out of walgreen's david, do you sense the chaos here or are you focused on the chaos in kabul >> it has been a lot of mixed messages for a very long time from the cdc i think a lot of people have

been frustrated by that. >> it's not uniquely american. it's happening in literally countries with better rates than us >> absolutely. i'm saying if you're a business person, let's go back to what we do for a living, if you're a business person and you're goldman sachs, and it looks like that they're being overly protective, i think they're being prudent. masks and testing, right and vaccination, david >> yes, jim. i'm in favor of all those. >> by the way, regeneron's gone from the low 400s to $700 almost since march. >> they got the magic bullet. >> they've actually hopeful that maybe the federal government will say, look, this is something we should use. they have not said this is something we should be using they've not been encouraging it. >> got more people vaccinated, you wouldn't need to use it. i would assume regeneron use in people who have been vaccinated would be extraordinarily low there are symptom who

immediately have a breakthrough case even if they have no symptoms, they just go take it >> that way i don't get in trouble by the anti-vaxxers who have basically portrayed me as the devil, bee ez l bub. >> it's crazy. crazy town out there you think even the top brass has noticed that i am the most hated person in america. >> the top brass of twitter? >> twitter >> they've kind of put it -- i'm on the top ten most hated. i don't know i have a wife, kids that like me ex-wife likes me >> right there. >> right >> put it on your headstone. my ex-wife liked me. >> or my twitter bio. >> my headstone is he worked too hard and then it. >> let's get to some of the meme

names. can you explain in a phrase what happened to gme. >> first, when you look at the categories that sold well in best buy, you start thinking, wait a second, this is going to translate to gme sales i think that's absolutely true a m amc's a tougher call because the delta variant does not make me feel like going to the movies, but there's just -- there are people going the box office, they have a box office >> it's back >> yeah, yeah. >> box office. >> yeah. >> the names the names are doing well by the way, amc does not take apple pay in your city, let alone crypto. >> not anywhere near where we were pre-pandemic. >> no, but amc's got staying power. >> we know it's got staying power. it's also got a $20 billion market value does that make sense to you? >> what does that have to do with it?

>> nothing it has absolutely nothing to do with what the stock is doing, you're right >> so young. so naive >> jeesh, david. >> i know. >> i was born at night but not last night who said that first? >> i don't know. >> well, who had the greates line ever on "squawk on the street"? >> greg hayes. >> boom. greg hayes said that to me. >> ain't going to happen. >> i asked him about the tweets that the former president was doing. he was kind of discussing how he handled that. >> i do remember that. interesting note out of b of a about financials, jim, surpassing tech in dollar amount and buyback year-to-date their records back to 2010 show that the sector with the biggest dollar amount in buybacks tends to outperform over the next several months so they're bullish on financials. >> yeah, they are. the financials actually have -- look at the multiples.

goldman sachs, but when you look at the tech multiples you have to question why they should buy back a lot of stock when they're selling at such high levels. i think that financials are right for buybacks look at morgan stanley morgan stanley is now an advisory company, and yes, a lot of multiples meg tirrell is saying don't forget yesterday fauci said people should get the regeneron. i'm saying that the actual -- it's kind of like emergency use versus whatever. they need to make the regeneron. i'm going to go right back to financials, they need to make regeneron to have regular use like they did for pfizer when i saw jpmorgan at 14 times earnings, i said does that really deserve to have such a low multiple given the amount of cash it has. bank of america if you think rates are going to go high, which i think they may, what a great steal. why not buy back stockm facebook does buyback, but

facebook's higher multiple apple does buyback with apple higher multiple. >> and we're going to talk to rod hall later on this morning. >> rod hall? >> in the 10:00 a.m. from goldman, who has been stubbornly neutral on the name. >> there were some people who were negative on palo alto >> that didn't work out too well for them >> no. >> ill-advised strategy. well, look, rod hall, what does it matter? if you're neutral, that gives you the optionality tospeak incorrectly about apple because you don't know it? just kidding rod hall is a very smart guy who wauf thought. >> there's a good note out of bernstein about google choosing apple to be the ios search choice. >> i paid $27 last night at 3:45 a.m. >> another 27 bucks. >> every night you pay them.

>> i get up at 3:00. can't fool me. >> we're going to talk about tim cook and others going to the white house later on today for that cybersecurity summit. dick's up 12% in the premarket and this downgrade has jim's attention. futures we're back in a moment undeniably versatile. unlimited 2% cash back. this is the card built for... ...real life. (dad) she's gonna be a drummer. (cashier) yeah she is. that's gonna get loud. (dad) right? (vo) the new wells fargo active cash visa credit card. unlimited 2% cash back on purchases. that's real life ready. i'm dad's greatest sandcastle - and greatest memory! but even i'm not as memorable as eating turkey hill chocolate peanut butter cup ice cream

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nvidia announcing the energy

department's new super computer will run on the computing platform it will handle ai workloads and enable scientific breakthroughs by tackling issues including clean energy and advancing cancer treatments. it comes as doe lab is waiting for a larmger super computer from intel that has been delayed for months. >> this is one of those that's curious. when jensen huang the ceo of nvidia, one of the things he likes to talk about is the super computer, how fast they are. he once demonstrated what it's like to try to land a man on mars you've got to have the person go as fast as possible and then a couple of miles before they get there, they got to slow down quickly. and he said that's a super computer it's like trading calculations, and i think that intel had the contract, but and they're very insistent, by the way. this is just temporary and intel's going to keep it, but i find temporary quizzical because if nvidia does it now, why did

we have to wait for intel? >> these -- you know, the big tech and government contracts i'm thinking jedi there's a new dispute now over -- i guess challenge over at amazon i mean, these are turning into very routine sort of discussions about who gets what from dod or doe. >> it's a very fluid situation i think if anyone thought that intel couldn't make the seven nanometer, if anyone thought that intel couldn't make this, are you kidding me it's intel now, pat gelsinger inherited this team. pat can't just turn it on like a dime, but i think the government's starting to realize that nvidia is the secret to a lot of the different things they need, just the way that mercedes benz realized nvidia's well ahead on autonomous driving, including waymo. this big sticking point is driving black ice, and if they can crack black ice, you're going to be riding a benz. david, we never expected, if you were to -- mr. benz, mercedes,

mr. -- if you were porsche, you would never have had a unit at the wheel. units are way too stupid and way proclivity to drink and sleep. you would have had an autonomous driver we got to rethink the whole process. >> i'm surprised to hear you say that nvidia is ahead of everybody? >> i was surprised too black ice is not that common. >> he just showed me black ice as an example of a difficult thing. >> one difficult thing that they're still trying to tackle. >> if you go through the last quarter, nvidia is more certain of their stance in terms of autonomous than they've ever been i'm betting on benz. who do you want? >> i don't know what my choices are. >> ford? >> you love ford >> not when it comes to autonomous. >> i didn't name my dog after

ford. >> you didn't. no, you didn't. >> that's true. >> when we come back, we're going to dive into dick's sporting goods, 20% hike, accelerate the buyback and a lot more we'll get crer mam'sad dash and count down to the opening bell don't go away. cookie dough creamy premium ice cream and chasing fireflies. don't worry about me. i'm fine. you can't beat turkey hill memories.

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(upbeat music) - [announcer] introducing the grubhub guarantee, our promise to deliver your order on time within the delivery window and for the lowest price compared to other apps, or you'll get back at least $5 in perks. let's get to jim and the mad dash let's start talking some stocks. boston. >> yeahings , boston beer. there was a time when the fastest growing category in the world was hard seltzer boston beer was a leader cowen this morning comes out and says in the four weeks ended

8/14/21 hard seltzer revenues declined 0.4% marking the first ever decline we have seen for that category. david, it's over. >> it is the hard seltzer craze is over? >> yes, hard seltzer has now been something that, well, if you asked for one, david, i'm going to say last year, pal. >> really? >> yeah, last year. >> let's go back a little bit more on this chart if you can, boston beer has still had an incredible run. >> so has sam adams and he was never president. >> that's not even everest, that's k2. >> that is a serious decline not that long ago. i didn't realize this year has been so tough. >> this is where mallory succumbed. >> has it accounted for the drop that they're talking about or the lack of growth they're now expecting? >> you got to say, they did cut the price target they went from 825 price target to 400 >> ooh >> so i don't know

>> ooh >> i know. i think it's really -- they went right through base camp two. right? >> they did. >> what do you think of that >> i like that >> online and climb everest. >> any other comps s here that should be -- >> coca-cola moves into it very aggr aggressively, bud's into it, but the only one i like is intuit. that stock had a great quarter. >> did it? >> unbelievable quarter. and that's because of credit score. how often do you check your credit score >> i haven't checked mine in a while. >> people do i segued. >> i wanted to have more than one. >> you said we've only been talking about, i don't know. >> super computers. >> covid yeah, i like talking companies and stocks we're going to do a lot more of that actually when we come back. don't remember -- no, actually, don't forget that you can catch us anytime, anywhere, you can listen to us when we talk about all these different things

on podcasts. >> abbott labs, regeneron. and get rid of boston beer well, actually the time to get rid of boston beer was right >>y mmedsuit back after this

that building you're trying to sell, - you should ten-x it. - ten-x it?

ten-x is the world's largest online commercial real estate exchange. if i could, i'd ten-x everything. like a coffee run... don't just sell it. ten-x it.

a trio of retail names to watch, nordstrom, urban and dick's today the nordstrom has been accelerated by the downgrade, price target 34. matt's point general sly is give where the high income consumer is they should be doing better. >> it's an exintestinstential pe he questions the idea if you can't do good numbers in this environment, you're just never going to do good numbers what i thought wasn't really -- what was so bad was nordstrom's. i always hoped that rack, which i like very much was going to do well, and he said rack has fallen so far behind the rest of the industry that it's astonishing, and i have to tell you that it does feel like

macy's when it was about to break down david, there was a deal at one point, right >> nordstrom had contemplated a go private at a higher price than this, but they never quite got there. they never got there >> shouldn't they be grateful? >> the family would have rolled in -- >> well, no, i mean, shareholders might have gotten taken -- >> no, i'm saying they, the people who -- >> maybe i'd love to come back to dick's for a second. >> i've got great stuff on them. >> you do talk a lot about those retailers succeeding against amazon best buy yesterday we saw with strong numbers, strong performance overall. dick's is another example, perhaps, of a company that's succeeding in brick and mortar right now. >> they basically said let's take the hit let's spend a fortune. let's get up to speed. let's have good omni channel let's invest in tech, and it's all paid off let's order stuff ahead of when people need it let's be local by the way, under armour, nay

key good read through, but they have done so much to be able to manage the supply chain. they did that fabulous mother's day promotion. by the way, galaxy golf is on fire they have done so many things skpshs, and that's why you get a special dividend that's why you get a buyback that's up substantially. it's really tremendous story >> all-time high there for dks there's opening statement bell, and the cnbc realtime exchange, the big board, a software company specializing in home automation going public via spac at the nasdaq satellite company rocket labs also a spac debut, and ceo peter beck ringing the bell there and is going to join us in the next hour. as for urban, jim, which has been stuck in the 30s for most of the year, the dreaded supply chain commentary sort of -- >> yeah, it's a shame that that's the focus i love the fact that they are

now imitating both rent the runway and now they're going after the posh marks, which is this kind of whole idea of the circular ecological function of clothes i like the quarter because of low promotional activity i like the fact that they have ordered stuff ahead of congestion, they had 20% comps, but the market said, look, the stock's been up a lot. this is not enough, and when you compare it to best buy, which has been the new standard and dick's, then you start wondering and saying, well, i guess they just weren't as good dick's was incredible, by the way. and best buy, that conference call, you have to listen to it they thought of everything what best buy's become is your it at home when you do -- you know, when you do work from home, you can't call it and them to come to your house, but you can get a subscription to become a member at best buy and have the geek squad come to your house endlessly. you're out there wherever you

are and you're on zoom and something breaks and you feel like a pitiful helpless giant, you can call the geek squad 24/7, which is particularly good when you do a lot of business in asia. >> and they will come? >> yes, vip service. >> sound like a good value i think it's a great value >> what is this, qvc >> what do you think, jim? >> units are going fast. >> they are going fast >> only 199. right now. >> this is our future. >> this is our future. >> if you act now. >> intuit, jim, one of the best looking 20-year charts i think we show. they beat revenue ahead, morgan stanley goes to 615. they say it's really a company graduating from sort of macro tail winds to a reinvention on digital. >> yeah, they crushed it when it came to h&r block. the last place you want to go during a covid epidemic.

this credit karma, people laughed at them when they made that acquisition this credit karma had this silly name, karma, which you have none. >> thank you karma is a boomerang >> okay led tasso. what i like about intuitive is it saves small business people and medium business people accounting it's always been an incredible bear to be able to be in compliance with government, irs, trying to figure out your books. intuit does it all they've also had a lot of ppp. when i've had them on "mad money," what i realize is they are inventing small and medium sized business, and it's working. they've become one of the most trusted brands people check their credit all the time, but more importantly is quickbooks, you -- anybody can be an accountant, and that saves a small business a lot of

money. it's a great company. draft kings three-month high as cathie wood buys. >> she's relentless. >> a little over a million shares. >> how did you get -- i mean congratulations. yeah, draft kingin s, you're abt to get into football season and that's their sweet spot. i did some work for draft kings last year, and i think that jason robins is a very smart guy. they'll be offering those contests where if you think that brady's going to squcore one point. >> there's a lot of things that you can wager on. >> yes yes. >> i'm not allowed to fwagamble and sing that's right. >> you're not allowed? >> no. >> some reporting that tsm is going to roll out a 10% price hike. >> yes, they can't do that

without demand, and if that's the case, then maybe the naysayers who work on micron are going to have to start covering. it's been an unbelievably good short. we don't know how long the cycle is this time obviously they make d rams which is the least complicated, other than the full featured 2 to $3 chips that global foundry makes that all the auto companies need. >> where are we on that, jim >> we're not great >> i'm curious, you've had a good level of communication with a number of the automakers. >> yes >> what are you hearing in terms of the chip shortage right now >> i think when you look at the new -- from ford, whether it be the maverick, whether it be the mock e, the electric people are just loving the electric, by the way. the bronco it's easy for them they're getting more supply. it depends they're going to focus on having enough chips definitely for the lightning, typically the high

end lightning, which is an extraordinary product where they have double the number of people they thought they'd have they are assuriing me they'll make it. >> and meet the demand they have to make enough batteries to be able to do it. but the demand is real i think jim farley is going to pull it off. and i think therefore the stock is too cheap. >> the dealer inventory levels are still extraordinarily low. that's not bad for the dealers as long as they can keep selling at some sort of a pace. >> ford is trying -- jim farley's trying to do something very different he's doing a reservation system. i mean, he has hardcore reservations, 70% of the people are new to ford. >> right >> that's kind of the hope, the holy grail the electrified. i don't know if you guys got -- i don't know if you signed it. did you get the email from ford? you can use it to light your house up it's really exciting. >> yeah, it's a generator. >> my maverick will not be able

to do that, david. you and i can drive around my maverick, and you can park it. it's much smaller. >> it's like half a pickup truck. i'm like half a guy. >> you can throw the fish in the back or the trees, yeah. >> not the great american tree machine. i'm not talking about that but the maverick is not in yet, how about that >> guys, i got so much to get to today on spacs. >> you've got the 10:00 hour >> can we go through it in the next 23 minutes. >> what are you going to do a spac report? >> i'm going to do a faber report and a spac report. >> i don't know if we've got a johnny gilbert z. >> and now here is the host of the faber report, david faber. >> thank you, johnny gilbert all right, there you go. i'm back to you. i want to talk about spacs let me give you a quick rundown

of where we're going to head first. the largest spac out there, one of the more favorable for investors in terms of at least an alignment with the actual spac holders we're going to talk about bill ackman's spac, the lawsuits, i reported on this yesterday i want to clarify some of those things i want to talk about minimum cash requirements in spacs this is coming up a lot lately given the very high level of shareholder redemptions. ackman put out another letter basically saying, listen, he's going to try to move to a spark, which is a new vehicle he's creating, that he wants to get the s.e.c. to sign off on. if it's approved by the s.e.c. and he getz the spark warts as well, he says then, you know what i'm going to do with psph if we haven't entered a merger transaction, i'm going to give you your money back and then you're going to get an opportunity to participate in the spark. they don't take your money it's kind of an option to participate in a future deal it would be a new structure.

ackman spac was so large it made it very difficult to find a potential target he talked about things like bloomberg, which i've reported is not going to happen and any number of others it does seem likely he's going to give the money back to his credit, at least the incentives there were much better aligned with that of his spac holders h let's go back to the awsuit. one of the reasons ackman is doing this is this lawsuit they got saying they should be regulated under the 40 act investment company yesterday i reported on what might be a proliferation of those lawsuits they're not going to come from the people suing ackman. i can tell you that at this point. i am hearing from any number of spac sponsors. it's unclear at this point whether these are simply going to be following up with similar arguments without great merit, but it does have a chilling effect on the spac market overall, jim, and it will -- remember, time is your enemy want to get your deal done and

approved or announced and approved, so we'll keep an eye on that. i did want to back off a bit yesterday from indicating in some way that mr. jackson, the former s.e.c. commissioner and any of the people suing are going to actually broaden out. that is not expected to be the case. >> but the chilling effect is very real. you could have a lot more plaintiffs attorneys i know a lot of sponsors very contacted by lawyers. >> let's go to an interesting move today in a particular stock. lwac is what i'm talking about here take a look at the stock if we can because this is going to get -- look at that. what's going on here, there's a -- i wouldn't say new, but there is a relatively new phenomena here you're getting enormous redemption shareholders saying i want my 10

bucks, my 10, 10, whatever their redemption price might be. and yet, they are still voting in favor of the deals. it is having the effect of reducing the actual cash that is coming in to the company once they actually effect the merger. not to mention it is vastly reducing the amount of shares that are actually outstanding. couple this with what has been a recent trend among investors to short spacs that are about to close their transaction, and the expectation that, in fact, it might move lower, and what do you have well, let's just give you the numbers. 71.7% of the shares were voted in favor, of outstanding shares vote instead favor it was approved. but you know what? 17 million shares were redeemed. what was that as a percentage? it was like 95% of the shares were redeemed, jim i want my money back, even though i voted in favor, and what did that have the effect of doing? anybody shorted suddenly finds themselves today saying, wait a second, i can't borrow this stock anymore. >> it doesn't exist. >> it doesn't exist. >> i've got to use short squeeze

on my hands. all these shares are gone. >> it's nearterminal >> it had the effect of vastly reducing the amount of cash available to the company that lwac locus walk was requiring, but they waived the minimum cash requirement. they said we'll make do with the 5.2 million coming in. we'll add that to what we already have we'll have 60 million total in gross proceeds that's well below the 100 million we anticipated having. it's the company that needs to waive that minimum cash requirement. then guys, get back to the misin misincentive, the lack of alignment in misincentives >> gary gensler has to stop this >> why aren't they renegotiating d deal prices down even if it goes to 5 or 4, they are still going to make money, even though you as a holder might be down 50%.

take a look at the background of some of the transactions of these deals. look at the amount of due diligence, the lack of overall information we get in terms of any transparency there just continues to be a misalignment of incentives not for pipe holders, by the way, who also were on the line when these minimum cash requirements aren't met because of these high levels of redemptions but it's something we have to continue to watch not all spacs are bad. >> how are sponsors doing? >> sponsors make money even down to low levels. >> go ahead, not all spacs bad. >> they're not there are some deals that make sense that are funky in some way that wouldn't make them appropriate for the public markets in a typical ipo there are so many we have to keep a closer eye on the cnbc spac 50 you're looking at right there, that is the 50 spacs that haven't announced de deals, so they're trading ever

so slightly above par. we've got the deal index you've announced the deal, but you haven't closed it, and that's well below par, and then you got post-spacs where we keep an eye on how do they actually perform once they close the deal, and those aren't doing well either. >> this isn't s&p that's up gigantically >> there's a lot of arbitrage available as well. you can get four times leverage on a redemption. you buy it, you can get four times leverage it's a spread, you might get delayed. it's kind of, you know, not a bad way to return for some of this stuff. >> the famous name spacs, the people who were not really business people. >> not great, so many of them not performed particularly well. huge money that's been made. bill foley's spacs, constantly they have not done well. >> that wine that he has in that ad >> white chocolate

>> wine is good e he's a great guest but those spacs have not been performing well. >> i don't mean to joke. there's some serious money lost in this. i mean, serious. >> and it's not like you didn't tell people. >> we talked a lot about it. >> you said this was going to happen. >> it goes back to that basic misalignment the spac sponsor is perhaps incentive to pay up. to pay more than they should have and not necessarily renegotiate a deal down. >> sometimes they to,do but rar. >> said to get out of these saying, listen, this is going to be the disaster. thank you, mike semblas. he can fish off a kayak like you wouldn't believe. >> really? >> you have gone fishing. >> his son is a great fisherman. >> overall largely flattish action, dow is down 54, s&p is roughly flat as we go to break, watch treasuries today we did get to 134 on the

ten-year that was the highest since august 13. overall, though, the ford just delaying return to office, american airlines saying that q3 revenue is trending below their prior internal forecast, has a little bit of the riskoff trade going. be right back. what the world needs now... is people. people who see healthcare a little bit differently. where technology helps doctors provide more precise care... leading to faster, better outcomes and puts improved health in all of our hands. because seeing a healthier world isn't far in the future.

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healthier and safer. abm. making spaces healthier for you. we're going to be watching the white house later on this afternoon, we think around 1:00 or 2:00 as they hold this summit on cybersecurity to announce a series of initiatives meant to address some of these systemic cybersecurity weaknesses in this country. ceos from apple, ibm, microsoft, amazon, jpmorgan we now believe, jim. >> where is palo alto network, perhaps this nation's best sub security brain too bad, should have been there.

>> there's sin dar pichai from alphabet who did you ask about yesterday? >> gelsinger, i think he's tinkering with that super computer i'd rather not talk about supercomputer since you trashed us for talking about super computer. >> i didn' now, russia is obviously a prime suspect as well, in terms of cyber crime and spying but cyber espionage, the chinese. they're competing with the chinese. >> there are business people trying to get better relations are china. that was important >> you're not one of them. >> i love the chinese people my father worked for china -- >> bloomberg has a piece out this morning about some prom n prominant econnist in china about robbing the rich to pay

for the poor results in the opposite of prosperity, in their view >> yesterday we talked about what they've created we have to remember they did it as a dictatorship. >> and a significant bump up in many of the names. you can see today though, giving up a bit but yesterday was a big day. and 10 cent, with over $10 billion in nishtives to help rural farmers and the like >> i think wind is the safest way to play them the government made it so it was easier for them to get their covid test i'm going to give you a stock you think you're going to look at abbott labs. >> go back to abbott labs. >> explain it to people.

so >> twitter box, sometimes $19, sometimes 23 you open a plastic thing and out comes a thing that you drop six drops and open it from the wood side, not the fuzzy thing side and you circle your nose five times and circle the next nostril. then you go back you'll get false positives if you don't do it this way you put it under the hole, wait 15 minutes and i have suggest people test every morning, like i do >> every morning you do that >> yes >> that's great. >> but i also check my balance with chase many times and my credit karma so, maybe i'm a belt and suspenders guy >> by the way, moderna has

completed their submissions of the application to the fda they say efficacy does remain durable through six months after the second dose. >> up 4% >> in our next hour, we'll be joined by the deputy national security advisor, as we talk more about the summit. in the meantime, dow is down 54. don't go away. the distance between what is, and what could be. while he's tapping into his passion, the u.s. bank mobile app can help you tap your way to your savings goals. without missing a beat. so, you can feed his passion. ear plugs not included. ♪♪ u.s. bank. we'll get there together. c'mon caleb, you got this! and if you don't, there are other options! umpire: strike three, you're out! you'll get 'em next time!

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let's get to jim and stop trading. >> i want to get to toll they reported a terrific quarter. initially the stock was down big. it's the demand and this is the delta demand, guys there were people that thought it was going to peek they said forget about it and millennials are buying homes not used to hearing about that when it comes to housesing, secular growth and by the way, gross margin has improved which is incredible. >> tonight >> doug is on. dug's pure joy, by the way mine is much more like kate

windslet look at that frank sloogtman, the flying dutchman probably the hardest school in europe and mark -- >> well, you know, jim, we -- >> that's two big guesses on return the office. >> we're going to stay late because frank is doing his call and we do whatever is necessary. >> "mad money" 6:00 p.m. with jim cramer financials are leading as we get the yield close to 131

♪ good wednesday morning welcome to another hour of "squawk on the street. live at post nine of the new york stock exchafg market consolidating a bit after four straight gains for the s&p and 50 record highs for the year so far 20% gain and total return as we watch covid vaccines and yields that are helping the banks today. >> we are 30 minutes to the trading session.

starting with toll brothers, rising after reporting better than expected profits for the latest quarter more than dulking a year ago as well as low mortgage rates. plus dick's sporting goods surging. second quarter sales rising 21%. the stock is up 130% this year and sticking with retail, going the other way. nordstrom shares shrinking don't miss the ceo, erick nordstrom later. 3:00 p.m. eastern time, david. the concern here is that, on top of 2019 sales, they're not growing where a lot of the other retailers are and that's considered one of the key metrics everyone is watching >> thank you j and, j announcing positive results for its covid booster shot meg. >> hey, david.

we've been hearing a lot about the need for the booster shots, moderna and pfizer now, getting the first data from johnson & johnson in the form of a press release, where they said six months after the initial single shot, they gave a booster dose to a few people in an early study and found it caused a rapid and robust increase in spike-binding antibodies, nine-fold higher than they saw a month after the first shot saying this should help inform decisions about giving a potential booster to the j & j vaccine, perhaps eight months after the first dose, as health officials, including the cdc in a tweet yesterday, said they need more data for an informed decision for the j & j vaccine but they will probably need a booster dose morning console had a poll today showing three-quarters of unvaccinated adults said they would get a booster shot

we're going to have to see this go through the fda and cdc process. but j and, j trying to provide information that it can also boost. we're waiting on the safety of a booster and more real-world evidence from the j & j vaccine. more news from moderna this morning. announcing they've finalized submitting their full application of their covid-19 vaccine. that's a key step in the process. fda has to accept that and we'll see how long they take to complete and fully approve the moderna vaccine as well. but up, you guys >> and that's good news on the third shot and what are we learning about breakthrough infections in this country anymore data on how common they r whether hospitalizations and severe illness is rising anything you can tell us here? >> reporter: right now experts are really pointing out that the vaccines are holding up well

against severe disease with delta. we are seeing that protection against infection and symptomatic disease, perhaps that doesn't put you in the hospital, that is starting to wayne, particularly with the rnra vaccine, including data from the cdc yesterday the cdc is not broadly tracking breakthrough infections that don't result in hospitalization or death and it's been criticized for that. but overall, that is the trend we've been seeing and that's why they've made the recommendation that eight months out, we need boosters we still have to see it go through the fda and the cdc making that decision meanwhile, we're watching delta, which is going to start imposing a $200 monthly surcharge on employees, who are not vaccinated against covid-19. the first company to levy a penalty to encourage workers to get protected. this is to pay for their

company-sponsored health care plan interesting adjustment because they're dealing with political pressures in the state of georgia where mandates are not as easy to pass, as in other parts of the country >> so, this is another way of doing it and i think, for the first time, putting a number on how costly it is for them and for people not to do it. because look, their insurance is going up it's going to be more expensive if they have to be hospitalized or, god forbid, with a severe disease. so, this puts a penalty on that. >> meanwhile, also on the airline front, american airlines chief revenue officer does say august revenue is trending below the prior internal forecast. kind of rings with what southwest told us about q3 and that profitability was not necessar necessarily guaranteesed because of what we've seen on the traffic of delta

>> it's a very uncertain time. i think it's fair to say given that people are changing their plans or canceling their plans as they watch the delta variant and try and make decisions on widely available data, which we know, as you said earlier, i iicus is as high as it's been. and that's largely unvaccinated. >> and kids under 12 aren't vaccinated >> it spreads widely and so, they may be getting sicker or that so many of them are getting it >> that's -- >> that you have a percentage you would typically have but since so many people get it. >> back to school is -- fing rbz crossed. meanwhile, president biden will meet with top executives of

several companies, insurance, energy, and education, to discuss how to combat cyber security threats joining us now is ann newburgher, white house deputy national security advisor for cyber and emerging technology. has been the point person on the white house for this thanks for joining us. >> good morning, sarah great to be here with you. >> what's your goal for the private sector leaders today >> the u.s. faces malicious cyber security and president biden has put a focus on addressing that activity with a range of far-reaching government initiatives, including his executive order in may, that focus oden the security of software, his industrial security initiative, that folk tszed on rolling out cyber security to utilities serving 90 million americans.

but the proivate sector is a ke partner in building tal. ant. today's meeting is a call to a on that partnership. >> reports that there's an expectation that companies might announce specific targets or commitments on the cyber security front what do you have in mind >> the conclusion of a lot of work in the preceding weeks among government and key companies. some of the things we're looking for is how they'll bake insecurity as they build it. really the best way to have security and technology. when we buy a car, we buy it with the seatbelt and airbags part of it that's what we're looking for in technology and similarly, there are 500,000 open cyber jobs open in america and we brought together a diverse group from community colleges to organizations to help build that talent and we

want to discuss with the companies how they can provide opportunities for on-the-job training and initiatives >> as relates to the commitment, are you suggesting some of the vulnerabilities we face lately and it has ramped up, even since president biden took office, has been since the private sector is not spending enough money on cyber controls on these seatbelts and other safety measures are they not focussed in the right places >> reporter: the threat has changed and we need to change the way we operate to meet that threat so, to your point, the security that's baked into technology is not adequate to meet the threat and similarly, i'll give another example. insurance incentivize us and various safe practices, like installing smoke detecters in our home so, we're seeing if they can patch quickly and share information. what we're talking about is how

do we up our game across technology, building practices and the talent and across the resilience of critical infrastructure to meet the threat >> we cover cyber stocks pretty often here on cnbc and it does seem like you're going more for names that would bring you scale and attention. can you talk about where, for example, a palo alto would fit >> that's a thoughtful question. first of all, this isn't the last meeting on cyber security the president places a commitment on cyber. this is listening to what they have to say and a call to action for the particular first meeting, we focussed on the companies who can scale security for example, i often look to walmart and rfid walmart announced to their suppliers they were looking for

them to track things via radio frequency identification that moved an entire sector to automated better tracking. these kinds of companies announcing, for example, that suppliers need to put in place certain security practices will move the whole ecosystem there's a scale they can bring to the cyber security front that we're looking for them to do and the key part really is how do we make security baked in by design so it isn't a separate, stand-alone thing? >> and in the past, there's also been a lack of communication, broadly speaking, among corporate america. i know this in terms of the intrusion spot it's become a much more important issue. are you going to be and are you taking actions to try to increase the amount of interaction between corporations so they can share best practices and frankly share what the heck is going on with them at the

very moment? >> tlalt a really good question. there are complex reasons why companies don't share information about incidents, including protection of brand, etc. but to your point, it holds us back from most effective ely, preventing a certain technique being used again and again one of the reasons we invited the banking section is because they have some of the best sector collaboration within the sector and with the government and we want to hear from them how we can build that model and take it to other sectors as well >> what about the government itself, ann? a lot of talk, obviously, today and here from you about the private sector but you've called out china, russia haven't seen sanctions necessarily. how is the bidden administration fighting back against these attacks? >> there will be some announcements today as well. the executive order on cyber security really rolled out

far-reaching initiatives, like requiring the federal government to roll out multifactor authentication we're going to lead in the rackets we think everybody should be doing. things like requiring critical software to meet a standard. that doesn't just raise the standard we use in the government companies, agencies, data, local, etc those were some of the key initiatives. i mentioned the industrial security nishtive. and some of the major at rubugzs we did, building partnership around the world you saw the announcement on building a coalition to fight ransom wear. actually today at the white house we're inviting in 30 countries for working level session on the coalition, to fight ransom ware and you saw others announced at nato and in other places as well so, president biden is taking a holistic approach across

modernizing the u.s. defenses, across building partnerships with countries around the world, both to share information, as well as hold countries accountable who perform, who do malicious cyber activity and to make sure we're bringing the whole of government approach to fighting malicious cyber activity >> all the cyber security stocks are up today we'll look for some of those announcements from the companies. thanks for joining us. frrmgs as we head to a quick break. a closer look at the markets with the nasdaq hitting a new record high. s&p 500 heading for the eighth straight of gains. and now trades on the nasdaq the ceo is going to join us. >> he's one of the few apple bears on the street. they they think eyth'll have slowing overall revenue growth

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let's get to phil lubow and talk more about the news from delta airlines >> good morning. joining united frontier, hawaiian on mandating vaccines for the staff. but with a twist their saying whether must be vaccinated by november 1st

those who choose not to get vaccinated by that date will pay a $200 per month surcharge why? because in a memo to staff, the ceo says the company, which has been paying for medical care for staffers who contralkted covid-19 and were hospitalized, says that on average comes out to about a $50,000 cost. and to offset that cost, the company has calculated that it will assess a $200 per month surcharge on those employees who choose not to get vaccinated by november 1st by the way, delta has 75,000 employees approximately and approximately 75% are already vaccinated you're looking at 17/18,000, who will need to be vaccinated or face the $200 a month surcharge. >> we're looking at some of the memos. that's a hefty cost per person

phil lebeau covering that information from delta this morning. and delta is headed towards, quote, slowing revenue growth. joining us is? analyst behind the call. rod, always good to get your thoughts good morning to you. >> good to hear from you >> you did say we estimate and we have to estimate because of the metrics, covid will drive a 22% increase from 2019 to 2021 that seems likely to reverse i guess the question is what's going to cause it to reverse, other than -- is this mean reversion or something else? >> we see -- we saw the rpoorunning at $172 in 2019 and that had been flat, over the years, preceding covid but relatively flat. it's jumped up, like you said,

by 22% to over $330. we predict in 2021 and we would expect it to reverse back towards that level we saw in 2019, although not all the way back so, we think because of work from home, study from home l the remote things they're doing, the value has gone up. so, they ought to hang at a higher level that's what the bottom's up model is predicting. and at the same time, you have the user-based growth slowing and they've been giving out a sol bathe. and we think that growth is slowing for gdp growth you've got the user-base growth that is slowing and the r poolooks like it will reverse and remain roughly stable in years after this so, you get this kind of combination of no growth >> you know, you do seem very torn on the one hand, you point to some of the demand-pull

forwards that covid brought us on the other hand, you point out that consumers have a lot of savings, balance sheets are strong, flexible work could drive demand for hardware. it really does sound like you are truly neutral, even though that's a term we throw out a lot non street >> there's that. i think it's really difficult to predict what's going to happen here in covid and we're dealing with delta you guys are talking about all these takes around the economy and various companies. we found out that the hard way last year, when we predicted weaker demand and it turned out to be the opposite i think the short term is difficult to predict once we get through this and we will get through it, is easier to predict you can see that this user base growth is slowing and you see that is likely to stabilize at some level and of course, none

of us know what that is. we think it's down from the current level. we think that's a reasonable assumption to make consensus doesn't think that they think they're only down 2 or 3% from what we consider to be inflated levels >> i do wonder one of your competitors on the street has a note out about the amount of money they think google will pay to be the default search engine. whether there's risk regulatory or from google itself for the payment to decline or go away. the lingering risks right now, how do you characterize them >> well, different risks i wouldn't want to comment on the apstore. that's a difficult call to make. i do think apple has rolled out application tracking transparency that is the degrading the value

of the platform for advertisers like google but increases consumer privacy and that's apple's primary goal in all that so, it's hard to believe that google will continue to pay apple as much as they have in the past, considering the platform value is deteriorating. maybe something will change on that front as we look forward. i would tend to agree. and that's about a third of services profits we believe so, that's a big part of the services story for apple >> so, you just don't buy the whole 5g super cycle that many think will last into 2022? >> 5g has been a pretty good cycle for apple and the bigger story has been covid and the fact that yes, every three years we design it they benefit from that and we bought more expensive phones as well

there's the fact we've all had more disposable income, most people have and what else are you going to spend it on you can't go for a vacation and you can spend it on a nice phone. people have done that i think we'll see a normal cycle and this year we won't see much change in the phone. i'm sure we'll see cosmetic things like the smaller notch and so on. we would expect that to be a typical reversal when that happens, it's going to be an interesting day. always grateful. thank you. >> thanks for having me. >> dow's up 18 as we head to break, watch share ochz cassava sciences plunge as they respond to questions over the validity of the drug trial data for the alzheimer's treatment. calling it false and misleading.

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another u.s. regional bank is joining the smallest of institutions willing to work with crypto businesses let's bring in the ceo of customers bank out of pennsylvania thank you. explain this new initiative, why you're getting into the crypto, when so many others aren't >> thanks so much for having me. first and foremost, it is an underserved community, underserved marct that we're looking to bank.

to best understand why, it's helpful to understand why we started a 24/7, 365 real time because that's what is attracting some of the market partis s you talked about we're a tech forward regional community bank we use our tech platform to be the number two bank this year, ahead of j.p. morgan and bank of america. it's this view that let us know they need to be upgraded and through the use of activities, we now have an ability to effect realtime payments. >> so, only $20 billion does not give you the type of scale that a j.p. morgan or another big bank would have to get into the crypto services space. what allows you to make these kind of tech investments >> you hit the nail on the head. we are big enough but small enough

we're a top hundred bank in the country. out of 6,000 plus institutions so, we are a tech forward bank we started thin tech and challenger banks within our company. we are oriented like a technology company, as opposed to the way a bank is oriented. it's understanding that risk of compliance as well as the strategic vision to serve customers that are underserved it's how we built our company. >> tell us what you're hearing from consumers what do they want and do they have to pay extra for it >> to be clear, we're banking commercial customers many are focusing on the consumer space, thinking of trading, etc we're focussed on commercial customers, who are using it as a store of value, as opposed to a transaction medium they're looking for on and off ramps, as a way to transfer dollars for some of the

transactions on the crypto currency markets, 24/by 7, 365 and crypto currency and digital asset exchanges are one industry vertical we'll be serving, in addition to real estate companies. and more traditional financial exchanges. >> thanks for joining us interesting move >> thanks for having me. >> sam from customers bank let's get to a news update rahel. >> thank you, david. good morning here's your cnbc update at this hour about 19,000 were evacuated from afghanistan tuesday. that brings the total, since august 14th, to more than 82,000 and 32 u.s. military flights and 38 coalition flights helped evacuate people from kabul, amid the taliban's takeover of the country. the surge has pushed the u.s.

over 38 million coronaviruses d 5 billion doses of vaccine have been administered in the past three weeks and serena williams has withdrawn because of a hamstring. she's not competed since injuring her leg in june she jones -- jiens federer in sitting out the tournament she's won a record in the professional era you're up to date. more squawk on the street when we come back

just about an hour into trading. dow's up 32, s&p up about three. very flattish here we're on the cusp, once again, of record highs on the s&p joining us ahead of the virtual

jackson hole symposium, is former federal reserve president, charles clauser great to see you >> great to be here with you, carl >> the consensus on the street has been that, given the delta variant and the fact that jackson hole's gone have you everual, that there's less of a risk of a market move. do you think that's fair >> i think that's fair i think a lot of the tapering will make clear the meetings from the last min -- minutes from the last meeting. there's obviously a growing faction within the fonc to move tapering up to make sure it starts this year that those voices are stronger now and i don't think the chairman is going to want to do that in front too much at this point. so, i don't see. i think the risk of being big

market news is pretty minimal. >> although, you mention the minutes and it was the explicit use of the words "this year" that did cause some macrostrategist to move forward their schedule i think all google were at 25. do you think there's something magic about the next couple of months >> well, i think certainly they're anxious to see what the data say as long as there are no surprises in the data, it's usually on the down side, i think they're on track for this year my personal preference would be the sooner the better. but i think that -- i think that unless something untold happens, they're on track for that and whether it be september or november, that's probably a toss up at this point but there is pressure growing.

given the inflation, given the demands for the fed to signal in some fashion that it is concerned about inflation, that they'll want to move this year >> what is the risk, charley, of them starting to taper, announcing a taper, that they're scaling back skimulous at a time when the economy is slowing amid the delta variant. and that extends into the fall and winter as kids go back to school and this very contagious virus is still with us >> the fed can't do anything about the virus 367. it can't do anything about the bottle necks and supply chains the dangers are that the economy would slow a lot, which i think that's not likely. i mean, yes, we may not get six

or seven or 8% growth, maybe only four or five. but that's very healthy, robust growth for the conomy. and it's sufficient for them to say look, the economy is still growing well above trend their estimate of trend, and continuing to supply demand into that economy or stimulate demand in that economy too. easy monetary policy is a risky strategy that's what they did and obviously '60s and '70s was supply bottle necks from oil embargos and oil prices. they kept trying to supply demand to solve the supply problem and it gave them inflation. i think the fed needs to be careful about how they manage this a slowing economy, as long as it's growing well above trend, i think is sufficient. >> so, i think of you as a hawk.

your time in the fed you always warned about inflation and it sounds like you're worried about the inflation we're seeing in the economy now. and you don't think that this is transitory you think the fed should be more on the ball on tackling this inflation, maybe even talking about interest rate hikes? >> i think the fed needs to be talking about what role policy plays and whether or not this inflation will be prove to be transitory or not. we are in a period of time where monetary and fiscal policy are as most stimulative level that we've seen in 75 years. and the question is not will the inflation be transitory, the question for the fed is what is policy contributing to making these transitory shops more

persistent and what role does policy play in that, both monetary and fiscal policy. that's the question for the. not to make excuses or why it ought to be transitory and they can do whatever they want because it's going to go away. that's not the way to ask the question they need to ask what role does policy play in making these -- this inflation more persistent than it otherwise would prove to be >> finally reports this week that the treasury secretary backs a second term for powell, where we've talked about his political adeptness on the hill. we have encouraging comments from sharon brown. any doubt in your mind he stays? >> well, there's always room for doubt in the political process, carl so, there are times you never know what to expect. but i do think that powell has a

good chance of being reappointed. i think that would be a fine choice and but i do think he's under a lot of political pressure. the worry for both the fed and the economy is the danger of applying political pressure to get outcomes that one desires on the political spectrum and this undermining the fed's independence and i thinkthal -- powell's in a delicate spot. he's under tremendous political pressure to keep interest rates low. he's under pressure inside the fed because of their new strategy, which says they won't raise interest rates until unemployment -- inclusive unemployment reaches its maximum. they didn't anticipate they'd have high inflation now before they reach that point. so, they're in quite a pickle. partly because of their own

guidance it's going to be a fine line >> charles, excellent, excellent as always. it's great to get your insight frrlg thank you. we'll talk again soon. tomorrow, don't miss our interview with the dallas fed president, robert kaplan >> i think yellen's opinion, the treasury secretary, matters a lot on that call when we come back, rocket lab going public after the fact merger today ♪

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local leader and launch services and space systems completed the previously announced spak merger that happened today it's about 4.3 billion 10% less than that right now joining us is rocket labs founder and ceo. good to have you we have a lot of different businesses under the broad mandate of space satellite components, space applications so many different things where do you want to focus on values in terms of the metrics that they should be most -- paid most attention to as you start to move through? >> absolutely. bring to the market. and there's been two parts that have been delivered. one has been spacex and the other is rocket lab. we're the second most used with

over a hundred satellites delivered. and also building a large launch vehicle that tais pretty reuseable. but to your point, we're not just a launch company and market leader building spacecraft to mars and to the moon and we also have two of our own spacecraft in orbit i think this is a look at the company and what to look for is the continued execution. we have a long history of executing against this over and over again >> something else they will look at you're saying the break even is expected in 2023 and things ramp up from there and that's how your company most likely will be valued what are the key execution points you have to make sure you

do hit that target of being adjusted down 23 >> well, this is -- what you see behind me is the rocket production line. we don't have to do a dozen things and built a lot of the infrastructure already. >> okay. what about going to mars 2024 nasa's providing the launch vehicle for that obviously the announcement was very recently in terms of that what does that mean for the company and how important is it in terms of what you're trying to accomplish. >> the company been able to crack. going to mars is no joke it's a seriously, seriously hard mission for nasa to intrust in us and we have a mission to the moon for nasa as well.

really what that demonstrates is the level of sophistication and dip that we have, not just within the launch company but within their spaces. >> it's a bit of a space race going on in the space world. so, who's your biggest competition? elon musk? sending sat lellites? and are they ahead of you? >> absolutely. we really only look out and see it's a contributor obviously it's been around longer than us i think as we look at the company and record in history. and here at the spacex, i think it's very obvious and favorable and you can see where we're going. >> you did say to us back in march that they joined us about the larger rocket. if you're going through all the trouble to build a large vehicle like this, you have to be sure it carries human as well

so, what are your plans when it comes to sending humans up >> the whole point of the neutron vehicle was -- is to look at the marketplace here and what it means and we've really sized an optimal vehicle.know, s of trading, not too worried about that what we're building is a generational pace company and something the public and inkhalid the like can now about part of. >> appreciate it thank you. >> my pleasure. coming up on "techcheck," an exclusive with the ceo of intintuit stock back to the flat line after an all-time high this morning. speaking of all-time highs one on the s&p again making it the 51st record high of the year. we're back in a momentis thw

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xfinity mobile with your internet. it's wireless so good, it keeps one upping itself. record intraday high for the s&p 500. a strong day on wall street. not taking much. fractional news in terms of percentage games under the surface is interesting. a comeback for cyclical groups economically sensitive stocks

like financials, industrials, materials and energy, leading the market higher today and for the week consumer discretionary communication services as well defensive sectors tend to do well when rates are low, that's what's slagging. health care, staples, utilities, and interest rates moving a little higher's nothing extreme. seeing the ten-year yield back in the 130s level. first time in a few weeks, coming off the lower rates we saw last week. on hopes maybe seeing peaks in the delta variant in the south and might not go go ahead with an early taper by powell later this week at the summit. and consumer staples today worst performing sector along with health care and the market. ticker xlp up double digits the past six months boosted by walmart, coca-cola not today. certainly not campbell's soup. one of the worst performers on the s&p. downgraded today to neutral from overweight at piper sandler.

increasing commodity costs among other factors. stock down almost 15% year to date a big factor last quarter. hitting a lot of consumer names especially the margin front. don't go anywhere. "squawk on the street" back.

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retail is vast, so there's a lot of markets to be had i think for anybody competing in retail certainly for us, we always have to be raising the bar to this conversation but to what i was just saying, i think amazon, you know, they're always experimenting they're innovating, and so we'll see, but i don't think at all it changes our partnership. candidly, kind of competing with them before on their online business. >> kohl's ceo michelle gass. discussing amazon's rumored plans to move into department stores not necessarily a place you want to be today, if you're nordstrom, but that's the stock i'm watching's talking to the ceo of nordstrom later about the results, the company says were

good rate guidance, good. key metric, retail earnings now, comps versus 2019 pre-pandemic and most retailers showing growth dick's i would say, a juxtaposition today. up a lot blowout earnings 45% sales growth over 2019 levels nordstroms didn't have growth over 2019 levels >> so much of it as you heard from michelle gass, competing with amazon. doing it well or not, a number of companies figured it out. best buy another one talked about showrooming, pushed them off a mistake. kohl's able to compete and you mentioned dick's starting good as well. other names not quite as competitive and may have suffered as a result. >> michelle gass saying we're not a department store not in malls and focused on -- focused on athleisure, isathleia

sapora inventories are low. supply chain is tough and consumers in great shape, balance sheets strong, savings high. >> really nice. >> restaurants rack a lot of hope for rack cramer disappointed. >> got to go sarah stop talking "techcheck" is next. >> we'll be on at 3:00. >> yes, we will! good wednesday morning welcome to "techcheck. i'm carl quintanilla with jon fortt and deirdre bosa today, big tech ceos go to washington as the white house attempts to get firm commitments on cybersecurity fro