here are the top five at five keep the records coming. the s&p 500 and nasdaq reaching fresh highs. the momentum face something fresh resistance this morning. the fed and potential. new taper talk in focus for the markets. the central bank kicks off the ate all virtual jackson hole summit and japan's order of more than one million doses of moderna's vaccine now suspended amid contamination fears and the biden administration getting billions in commitment from the private sector as it looks to

ramp up efforts to fight the growing threat of cyber attacks. and shares of salesforce not slacking after the latest quarterly results. get it the company boost the outlook for the rest of the year it is thursday, august 26th, 2021 you're watching "worldwide exchange" right here on cnbc and good morning futures right now basically lower. the dow flat the s&p 500 and nasdaq down fractionally keep in mind the s&p 500 crossed at 4500 level for the first time ever yesterday before pulling back slightly to close at a new record much more on that with craig johnson in just a moment the nasdaq notching a new record close. we're tracking treasuries as we gear up for the jackson hole summit right now sitting at 1.354%.

it went as high as 1.35% yesterday. seeing it at the same level. the yields on the ten year, they have risen ten basis points since last friday's close. a quick rise the record close con the s&p 500 being fueled in part by the economic reopening names gambling stocks among those seeing a big boost penn national up 18% so far this year big boost. red rock resorts draft kings, golden nugget, all up 15% plus. we have to throw-in caesar and bali's cruises also getting bate of awe lift norwegian and carnival up 9% royal caribbean, you see up almost 7%. airlines also taking off united, delta, american, southwest, and jetblue all of them up more than 8% so far this week actually we're seeing delta right around 7.5%. let's go worldwide right now

we have a look at the early trade in europe. >> hey, frank. the mood isn't that great in europe every one of the european indices is in the red. negative session after negative handover by the chinese equities not a pretty handover. the ft-se 100 is down .5%. a couple more companies warning about supply bottle necks. yesterday mcdonald's were saying they're putting a freeze on milk shakes, pun intended there, and one of the food retailers also warning about potential bottle necks. so that has been weighing on the names in that basket a tech analyst down .5%. all eye s on the flil situation there with the censor gaining steam in the polls we're also watching one name in particular today that is deutsche bank.

and this is why. u.s. authorities are reportedly investigating deutsche bank's asset management for green washing the investing criteria now the paper cites documents from the sec where dws former sustainability heads that firm overplayed the esg efforts to investors. the sec, deutsche bank, and dws have declined to comment on the report you can see substantial decline in dws today deutsche down 1.7% before we go, i want to mention fickl quickly what we're seeing in the mixed income we yields five to eight basis points higher. at two to three events and again, taken the cue from what is happening in treasuries and also concerns here about the fiscal outlook germany, the focus is on the elections in a month's time.

if it is a censor left leaning government, may be a more expansion air qui policy for the euro-zone as a hole. >> i know awe lot of big issues in europe. but no shakes for mcdonald's that shook me up >> i know. i was very disapounted too i was very upset all of yesterday. >> first world problems though thank you. let's get a check on the other morning stories. we have much more on those good morning >> good morning, frank western digital getting a big boost on word it may be holding merger talks t the data storage company is looking to join forces with japanese chipmaker holdings in a deal that could be valued at over $20 billion the reported talks come just months after reports that both western digital and micron technology were looking into potential mergers with the group. the report suggests discussions

between western digital have ramped up in recent weeks and a potential deal could come as early as mid september japan meantime has suspended the use of more than a million and a half doses of moderna's covid vaccine. health officials there site contamination issues found many some doses in a batch of roughly half a million vials to hit a pharmaceutical which sells and distributes the vaccine in japan, moderna made the move out of an abundance of caution. and cites an issue at the manufacturing site in spain for the problem. shares of salesforce are getting a lift following second quarter results. topping expectations revenue increasing 23% to $6.3 billion the software maker is also raising the full year earnings guidance following its acquisition of slack during the quarter. speaking with jim cramer on mad

money, the ceo touted the deal >> our new user interface through all of our products so when we get to dreamforce, you're going see a whole new version of our sales cloud which is built with a slack user interface. a new version of our service cloud and new version of our marketing cloud and commerce cloud and, you know, it's an mazing product and you look at the millions of users that are on slack and the transformation they made in the workplace, well, that's accelerated during the pandemic. as we move from anywhere, slack is more important. >> slack has become more important. i'll tell you, frank, find our colleagues prefer teams and sometimes i have to remember who is on slack and who's on teams it's kind of like one of the abbott and costello routines >> or maybe slack's become for important. it's not become more convenient. you have to check slack, teams, e-mail, text messages, a lot to check. >> exactly

>> thank you very much turning our attention back over to the markets the records keep coming with the s&p 500 crossing that 4500 threshold for the very first time ever yesterday. but the next guest says it still has more room to run craig johnson is the technician for piper sand sandler >> thank you of thank you for having me on the show >> always great to have you. >> i know you're bullish i want to talk to you about bond yields they ticked up almost ten basis points since friday's close. right now at about 1.35% pretty rapid rise. how do you see that impacting the market and, of course, we have the jackson hole summit coming up. how do you see the market reacting between now and then? >> i think this is a really interesting setup coming into jackson hole if you look at the charts technically, the ten year bond yield, 1.36% any sort of move above that

would look like a short term bottom has been made in fact, the chart looks like a double bottom is made on ten year bond yields that move above 1.36% would open the door for another leg higher. that can push it to a year end objective, closer to 150 or 175 on the ten year bond yield so from our perspective, this is problem bhi going to be very good for the trade type names. names you were mentioning here at the beginning of the show, frank. there was a record close yesterday. so the s&p 500 is on fire. initially you had a price target of $44.25 for the s&p 500 half way through the year you are planning any more revisions based on what we hear and see from jackson hole? >> you know, i would take and let the numbers get hit. i was told a long time ago when i started in this business, let

your price objectives get hit and then re-evaluate if you look at the evidence of what you're seeing in the markets today, you do see that earnings estimates are nicely moving higher. you're looking at numbers that have gone up substantially for 2021 and you're looking at numbers that could be as high as 250 for next year. put all that together with the fact that we've got still a very accommodative fed at this point in time and i think that there could be some upside from here right now, we're looking at 3% upside i'm going to be really interested as we go through the jackson hole and theseptember meeting to see how this takes place. the fed has moved from what was more of a pro active type model to more of a reaction approach to dealing with tapering and rates and i suspect there is opening the door there a little bit for policy mistakes. it will be very interesting as we see the language coming out of jackson hole. if we get more of a tapering discussion, you know, i suspect rates will move up even faster than what they've been

i suspect that could lean on the s&p 500 stocks but, frank, that very well could be a positive for the russell 2000 stocks that are going side ways for months. >> to be clear, what would a policy mistake be in your mind is it acting too soon or too late or tapering at all? >> it could be either. moving too soon and the economy. you look at the numbers that have come out lately on the kmec economy. it looks like things have slowed or it could be that they act too late this is a very difficult transition for the fed to navigate and get this right, keep markets happy, keep the economy growing. i certainly don't envy, you know, powell and these decision thez have to make there with the fed. it's a very tight rope to deal with too early too late has big consequences for the economy and equity markets. >> i want to squeeze in one more question i know you're also bullish on the russell, the small cap index is more than double the market over the past week a lot of financials in there

just really quick, do you see the russell rising because of reopening confidence or is it being boosted by the financials with the ten year yield rising as well? >> you know, frank, i think it's going to be the latter i think as we see the ten year bond yield move up, net interest markets improve, i think you're going to see the banks move up for that reason. stocks in here like bank of america look like we broke out we've come back. check support starting to move higher again it's the latter, frank it's going to be about ten year bond yields moving up. that is a big component inside the russell 2000 index >> craig johnson, thank you for being here when we come back, the rising threat of extreme weather forcing home owners to take matters into their own hands when it comes to keeping the power flowing. the all energy moves they're making to keep the lights on plus, the biden administration racing to get hundreds of americans in afghanistan out with just days until with the draul deadline we have the latest from washington later, duel earnings on tap

from dollar general and dollar tree the ones that punch they're facing from the supply chain and inflation are very busy hour still ahead when "worldwide exchange" returns. 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 with real cocoa. well, that's the way the sandcastle crumbles. you can't beat turkey hill memories. does your vitamin c last twenty-four hours? only nature's bounty does. immune twenty-four hour plus has longer lasting vitamin c.

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extreme weather events across the u.s. rinne creasingly ree wreaking havoc on the country's electric grid. consumers are taking mat nears their own hands as they look to renewable sources.

we have more >> hey, frank. good morning again and again we see that our bridge can't keep up with extreme weather events fueled by climate change we've seen averages from california to texas to new jersey and everywhere in between. consumers are fed up new data from solar website clearly illustrates the link again extreme weather and people looking for ways to keep the lights on even when the grid goes down. the website saw 358% increase year over year from california residents looking for a solar quote between june 30th and august 6th the state facing devastating wildfires right now as well as record drought and heat waves. remember when temperatures rose to 116 degrees in portland at the end of june? well, solar review said quotes jumped more than 900% as temperatures soared. it's not lum itimited to the wet when texas suffered from that deep freeze, quotes from texas

residents spiked 850%. now we don't have exact data on how many of those requests turned into actual purchases, frank. but it's clear that high profile grid outages are definitely fueling interest >> yeah. you have my interest right now so question for you. just listening to your report, if i get panels on my roof and the grid goes down am i good to go or more i have to do? >> that's a good point you have to have an on site battery storage system as well for your lights to work if the central grid goes down that's because if there are line workers out repairing lines, you can't have power flowing back on to their grid. that would be a safety risk for the workers. so what happens is you disconnect from the central grid and create your own grid and then you're good to go this is a huge growth area for some companies solar edge and end phase and goldman sachs said the residential storage market will reach $1 billion for the first time next year

and i spoke to the ceo of solar edge last week he said that adoption rates are such that as in the future if you say you have a solar system, that will automatically mean you have battery as well so that you can keep power if there is issues with the main grid and he said that adoption rates are really growing here and that consumers are turning to storage ready inverters, meaning even if they are not buying battery storage right now, it is on their horizon. but, of course, demand is high supply is limited. supply chain issues that we have seen throughout the entire economy are also playing into solar here, frank. >> i imagine prices are high the who wants to go a couple days without power, internet, tv so got to pay the cost >> exactly >> we appreciate it. >> still on deck on "worldwide exchange". finding relief from sky high home prices. one ceo says crashing lumber costs can help would h-be buyer wallets. today's big number, $357

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the biden administration said 1500 americans still need to be evacuated from afghanistan. stressing that number is actually pretty hard to pin down the race to get the citizens out

comes with just days until the august 31st deadline to withdraw u.s. forces from that country. nbc news' jay gray is live in washington with the latest good morning, jay. >> good morning, frank of as we get closer to that end of the month deadline, tension is building in afghanistan it also appears the taliban is now tightening its grip. at times actively and violently stopping afghans from leaving the country. >> reporter: this is the evacuation by the numbers. five days left 1500 americans still in afghanistan. 5 500 received instructions on how to get to the airfield they're still trying to get contact with 1,000 citizens on the ground. >> we're aggressively reaching out to them multiple times a day through multiple channels and communication. >> reporter: as huge crowds continue to gather, it's impossible to put a number on the afghans desperate to leave overnight the state department issuing a security alert

calling situation at the kabul airport dynamic and volatile. >> i've been in war a lot. i've seen a lot of fires and gun fires and stuff like this with the americans. i never seen something like that never. >> reporter: a former u.s. military interpreter he lives in texas now. he went back to afghanistan earlier this month to move his family to kabul where he thought they'd be safe as the taliban took control -- >> my youngest brother called me he said run. kabul collapse he knew they had to get out. after three days, they finally made it on to a u.s. military transport leaving behind friends, family, and a country in turmoil >> now administration officials continue to stress that they will do whatever is necessary to get americans or afghans who worked alongside u.s. forces out of the country regardless of any

deadline, frank. >> so, jay, you touched on this a second ago do we know any more about what will happen, any americans that are still on the ground in afghanistan after that august 31st deadline? >> yeah. that's the rub we push administration officials on that. what they're saying is that the pentagon as well as the state department is coming up with contingency plans. obviously, they're not going to discuss that strategy. they say something is in place they're asking neighboring countries to continue flights into the kabul airport even after the americans leave hoping to keep that airport open and functioning. jay gray, thank you for the latest all right. let's get a check on the other headlines outside the business world. nbc's francis riff yar is in new york with the latest great to see you >> frank, always good to see you. good morning you to. we start with smoke from the fire that is creating hazardous air-conditions for lake tahoe.

it scorched more than 100,000 acres. residents are urged to stay indoors if possible. two western law makers are calling on president biden to declare a drought disaster in the west record temperatures ravage mult um states. the lawyers who tried to overturn the results of the 2020 election in michigan are facing serious sanctions this morning in a scathing decision, a federal judge recommended disbar f disbarment for all of the lawyers that tried to flip the election for donald trump. the judge ordered them to receive 12 hours of legal education, half of which will specifically focus on election law. two more star players are withdrawing from the u.s. open the williams sisters serena and venus announce they'll not play in the tournament which begins next week. serena cited her torn hamstring for not playing and venus is dealing with a leg injury. it is the first time since 2003

that neither williams sister will play in the u.s. open in addition to the sisters, you add to roger federer, nadal, and also dominick thiem sitting out this year's open so a very different dynamic at this year's u.s. open. people coming out there and not expecting to see these players, the action but i'm sure they're glad to be there. >> i think you said that the nicest way possible. this year's open is missing a lot of star power. >> people are happy to be out and watching live sports in this capacity but again, not the same without these names. >> yeah. also an outdoor event. at least perceived to be a little safer hopefully still a great tennis tournament i'm not a big tennis fan i know awe lot of the stars are not going to be there. the i can figure that part out >> that's the big news the. >> thanks a lot. still on deck, the biden administration reportedly set to shift the time line from when americans should get their booster shots. and if you haven't already, a

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stocks hitting fresh record highs. that may be a challenge today with the futures facing pressure ahead of the open. and investors gearing up for the fed's jackson hole summit to kick off our steve liesman standing by with what investors have to watch. >> and some of the country's

biggest companies opening up their wallets to help the biden administration combat the growing threat of cyber attacks. you're watching "worldwide exchange" right here on cnbc >> all right welcome back i'm in it for brian sullivan here is how your money looks right now as we're half way through the 5:00 a.m. hour futures in the red across the board. all three of them down right now. the dow down slightly. the s&p 500 and nasdaq also down fractionally now this comes after the s&p 500 crossed the 4500 level for the first time ever yesterday before pulling back slightly to close at a new record. the nasdaq also notching another record close we gear up for the jackson hole summit investors watching that closely. the yield on the benchmark ten year treasury note climbing to as high as 1.35% during yesterday's session. right now we're looking at it.

back up to that level right now at 3.151 you have to keep in mind the yield on ten year has risen 10 basis points looking at names in the cybersecurity sector a solid week so far. palo alto up 20% moncast up 14%. secure works is up 13% let's stick with cybersecurity we get some of this morning's top headlines. our bertha coombs is back with those. >> hey, frank. leaders from some of the country's biggest companies are committing billions to help strengthen cybersecurity president biden meeting with ceos from apple, microsoft, google, ibm, jp morgan, and bank of america yesterday to discuss the matter following several high profile attacks in recent months microsoft committing $20 billion over five years to deliver more advance security tools while google is pledging $10 billion over the same period to

strengthen cybersecurity that company along with ibm saying they'll train 100,000 americans or more each in fields such as it and data analytics. meantime, the biden administration is also apparently shifting the time line now for when americans may be able to get the covid-19 booster shots. according to the "wall street journal," regulators are likely to suggest fully vaccinated people should get a third shot six months after their previous doses rather than eight months previously announced by the white house. the journal says the potential move stems from data by vaccine manufacturers and other countries under review by the fda based on a six month time line for boosters. and the ceo of toll brothers says the dramatic drop in lumber prices is set to provide some relief for the housing sector. speaking with jim cramer on "mad money," that drop could save

roughly $40,000 per home for his company. >> the tail wind of lumber coming down is comforting. it's going to help us. it's going to help drive some margin i think it's going to also help offset some of the other cost increases that we're feeling it's taken us longer to build the houses there is real supply chain issues there is labor issues. it took about two weeks longer in our third quarter to deliver a home we expect that to continue for a couple more quarters as we manage through it. >> frank, i guess lumber prices really were trans it horry when it comes to lumber inflation not sure about anything else at this point but certainly true for lumber. >> you know, fantastic segue speaking of inflation and thank you for that report, the fed is in focus to day. policymakers can meet virtually for the annual jackson hole summit and our steve liesman joins us with what investors want to hear

from jay powell. it's a drinking game these days how many times the word transitory inflation is going to come up. >> yeah. it's a little early for that drinking game. perhaps later this afternoon >> it's "worldwide exchange ow ". th there are other parts >> do wyou can can, frank they're meeting in wyoming instead of meeting in person, they're going to meet virtually starting tomorrow in the shadow of a resurgent coronavirus and pressing questions about the economy and monetary policy. it's a virtual meeting with real issues but that is just one issue for the fed right now. they face the task of figuring out the right policy with the delta variant on the rise. inflation spiking. the job growth quite strong right now. and then the issue of fiscal versus monetary policy of course, questions about whether to keep the $120 billion of asset purchases going every

month. since the beginning of the pandemic, fed asset purchases rising at 120 billion a month. they doubled to $8.3 trillion. just before the delta outbreak became a concern they called for an early end to the purchases. asking if they were making the inflation problem worse. now the fed is locked into a place where a meaningful number of its members question the policy but changing that policy amid the uncertainty of the delta variant, it carries risks. it's a difficult place for fed chair jay powell is closely watched by the market. among his choice, you can come out and be more hawkish saying given the strong hint of the september tip or not, it could be neutral suggesting that they're likely after several more months of data. and the most dovish thing he may say is repeating what he said at the press conference in july that we're still some ways away from the substantial he further

progress needed to taper i think the most dovish scenario is the least likely. hard to know where he'll land between the neutral and hawkish options. a lot will dependent on the sense of where the committee is and we're going to get a firsthand read of that right here on cnbc today and tomorrow. we have extensive interviews beginning this morning at 7:30 we have the kansas city fed president. that's the way we kick off our coverage here. we have jim bullard at 8:30. robert capland and then bostic from atlanta along with, by the way, we don't have it there, the vice chair of the fed. frank? >> so, steve, i have to ask you, how does fiscal policy change the calculation of what the fed is going to do >> yeah. you know, no rest for the weary, frank. looks like they're moving ahead with some form of that $3.5 trillion. some of that is paid for when it's paid for. in other words, you take taxes

out of the economy, the fed sees it less as direct stimulus but not all of it is the plus, you have a lot of other fiscal policy coming down the form of infrastructure out there. so it's a moving target, frank and there are some folks on the fed who think you know what? policy should be reacting to this fiscal surge. if the fiscal side does more, then it makes sense for the monetary policy side to be doing less. >> steve, looking forward to the interviews by the way, i'm going to stick to water i have the water bottle here it is after 5:00 p.m. in tokyo, steve. don't give people a hard time in tokyo. >> frank, whatever is in that bottle right there is between you and your maker we don't have to know, frank >> i promise it's water, steve steve liesman, thank you coming up, inflationary pressures, price hikes and consumer what quarter i had numbers from dollar tree and dollar general could tell us about the economy. but first, as we head to break, some of your other top business stories microsoft hiring former amazon cloud executive charlie bell no official word on what the new

job will be. but microsoft says your cloud business is fighting to take market share from amazon web services u.s. regulators reportingly investigating deutsche bank's asset management arm "the wall street journal" notes the probe comes as the firm's former head of sustainability said the division overstated how much it used sustainable criteria to manage assets. and south korea the first to hike interest rates in the pandemicer rachlt the 25 basis point increase was expected. stay tuned you're watching worldwide exchange right here on cnbc. r b. but even i'm not as memorable as eating turkey hill chocolate chip cookie dough creamy premium ice cream and chasing fireflies. don't worry about me. i'm fine. you can't beat turkey hill memories.

welcome back to "worldwide exchange." a live look at times square. this area getting more lively as we go. delta variant concerns slowing some of the reopening. but seeing more and more people in new york city time now for your big money movers stock one that is up, snowflake. that stock up almost 2.5%. the cloud data software company reporting better than expected second quarter results as both total revenue and product revenue doubled. snowflake is raising full year guidance for product sales for a second time. stock two, ulta beauty having a beautiful morning that stock up just about 5%. the retailer reporting second quarter sales jumped more than 60% as shoppers restocked makeup bags and cabinets. ulta is raising the guidance for the year expecting that strong demand to

continue stock three, box down about 3%. shares are lower despite the company posting second quarter profit and revenue that actually beat estimates box did report preliminary numbers two weeks ago to give shareholders time to review the financials over control of the board. the company has been in dispute with activist investor starboard value. stock four, williams & sonoma up double digits. they report better than expected second quarter results the company doesn't expect the strong growth trends to let up any time soon. t it's also hiking the quarterly dividend two names on investors radars, discounters, dollar general and dollar tree. you see shares of both of them up right now smi chain issues have been hitting retail across the board of this earnings season. and these two, they may be getting a double whammy from inflation pressures as well. joining me now, jerome martis. good morning, jerome

>> good morning, frank how are you doing? >> i'm doing good. both of the stocks have earnings coming up later today. what do you expect how big of an impact will inflation have on these two companies? >> well, the second quarter retail data is showing that consumers are still very much value oriented but without a doubt a child tax credit is helping the low income consumer the most. they are the ones that are facing higher price costs without any wage increases as a result, they can't afford buying traditional groceries at the regular supermarkets but instead, they have to go to the dollar stores in order to buy food and basic necessities because of the strong demand, we're seeing that stores like dollar general are expected to open over 1,000 stores this year alone and renovate over 1700 that will continue to expand the grocery offerings throughout the stores that is a positive move that they look -- that shows it is working towards the company's

benefit. >> another big thing that people are buying are back to school items. i heard a report about this a short time ago overall back to school shopping increased 40% with apparel having the biggest increases over 70% is that actually a the catalyst for the retailers because things are more expensive at a macy's or maybe even a target but they're very generally cheaper at a dollar store. >> so for a store like dollar general and family dollar, they're passing on the higher costs to the consumers they know that they're receiving the child tax credit right now but for a store like dollar tree that sells everything for $1, that's a whole different story they tend to substitute their goods, the national goods for their own store brands in order to retain the costs very low and they're being -- they're becoming more savvy in the strategy they're introducing something called dollar tree plus. where they allow a small portion of the store to sell items from

their family dollar division and these items are priced within three to five dollars. some items are cool. they have vintage shirts, star wars and even snoopy shirts that are flying off the shelves you can see retailers are not lazy about survival. they're trying different strategies to stay relevant in a time when the higher inflation >> you know, higher inflation hitting people across the board. you also mentioned another company that people don't think of as a discount retailer. but when it comes to apairing, they're discount retailer, target have some of the pressures driven people towards that big box store? >> and to your point earlier, like you were saying that ulta beauty posted very strong earnings, they're not only just buying apparel, but they're also buying beauty items at target. target has become the one stop shopping place in the market share especially during the pandemic from the department stores this is one store that consumers are coming towards they know that they can buy

fashionable merchandise for way less than at a department store. it's resonating very well because it's not -- we're seeing that there is repeat business from the consumer. so as a result, target is one of the favorites not only for back to school but for the upcoming holiday season >> so i have to ask you about the long term strat xwi for dollar tree or dollar general. they generally don't sell things online we have a lot of delta variant concerns could that potentially be a head wind for the companies the fact they don't have e-commerce offerings? >> it wasn't a head wind for them during the pandemic just mainly because the loaned consumer really cannot afford to shop anywhere else so as a result, they know that if they still have to eat. they stril to buy groceries. as a result, they do know that the consumer will be coming to their stores and visiting them despite the delta variant. they're a little more in general the discounters are more delta proof than compared to the other retailers within the earnings

season or throughout the pandemic they show us that they have consistently done well no matter how the pandemic has fared >> very interesting. and they're growing grocery business also very interesting is it comparable to what you might find in a supermarket or supermarkets going to feel pressure from the lower to middle income consumers going to a dollar tree perhaps and making that a one stop shop >> absolutely. in fact, because of so many dollar stores based around the supermarkets and the consumer going to the low income consumer gravitating to the dollar store, it has taken a lot of supermarkets out of business they just can't afford the low rural areas to pay higher prices the convenience of the location is also a big factor for the stores dollar general is looking at within five miles, 75% of the u.s. population and therefore, also causing them to have a very loyal customer base that knows

they are in the neighborhood and they can go -- and buy the groceries for the lowest prices. >> great insights as always. thank you for being here >> on deck here on "worldwide exchange", what investors want to hear from the high stakes fed summit and why the next guest says, well, some of you may be a little disappointed. if you haven't already, follow our podcast. if you miss worldwide exchange, check us out on apple or other podcast apps "worldwi ehae"ilbe ghbackxcng wl introducing 48 square centimeters of earning potential. flawlessly designed. 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. at cdw, we get in a changing world,

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welcome back to taper or not to taper, that is the question. i'm going to stop. there i do know the rest it is the question for the fed this week as they meet virtually for the jackson hole symposium the next guest is in the latter camp, jay powell is unlikely to provide a tapering road map to investors when he speaks tomorrow the managing director and partner at rose advisors at hightower. thank you for being here >> thanks, frank thanks for having me >> that's the question we borrowed do you see more comments about definitive tapering coming up from when jay powell speaks? and how is the fact that jackson hole is virtual and the raising yields on the ten year, how does tham pact what you believe he's going to say >> yeah, sure. look, i think everyone will be following powell's comments very

closely. however, i don't know fut will provide a road map there is still a concern that delta variant is going to make any qe taper a painful and brief vent by the fed or it will force the fed to push out the qe taper even further honestly, robert caplin of the dallas fed, i would say that the sign post is for the latter to happen as you said, jackson hole meeting itself switched from virtual to in person so my gut tells me that fed seems to think they have more runway than they actually do >> one thing the fed is watching is the labor situation you're watching it as well how do you see some of the cost inflation that's being driven by waning inflation impacting the markets? maybe even impacting what the fed has to say i know you've been keeping your eye on the great resignation >> it's very interesting

they have to deal with, you know, this potential issue of inflation as everyone knows. "the washington post" recently conducted a poll where nearly a third of u.s. workers under 40 thought about changing careers during the pandemic. people are referring to this, you know, this event in the labor market as the great resignation. you know, it really -- the covid trigger this reassessment of work and life. and honestly, i would add one thing. you know, i think it's further compounded by the fact that, you know, the vaccine mandates may actually have an impact on the labor market as well rightly or wrongly, of course. there will be people who reconsider based on vaccine mandates over the next four to eight weeks whether to also

reassess their current roles so i think it's going to put pressure on the labor market it's going potentially increase wage pressure and the idea of the great resignation is something to follow closely. >> you know, interesting thought there. a lot of the cap lifts for the markets so far has been the idea of strong earnings from different companies. i'm seeing stats from different analysts eps is up more than 90%. but we're seeing a lot of earnings revisions slowing down. how do you see that impacting the market is there any one sector that you're eyeing that you see earnings strength continuing throughout the rest of the year? >> sure. earnings revision breadth as they call it, is very important indicator to watch in august it was down month over month. and so it can certainly portend to some weakness it could be a catalyst for volatility there is some segment of the

portfolio you want to be defensive. one of the most defensive sectors this year has been in the health care space. if you think about that inflationary pressure we were talking about, they have the ability to pass one cost and you think about pharma or devices, it's a great stable performer. when you think about a sector overall. specifically, you know, blue chip pharma company like bristol-myers, we like you know, it's relatively stable performer but also appears relatively cheap on all metrics. it's trading roughly ten times or slightly lower. and pays a good dividend and has a good balance sheet with a decent pipeline. >> we're almost out of time. want to talk about the rising bond yields. financials, the best performing

sector this month. how do you see financials mag out the rest of this year and what is coming up in jackson hole impacting that sector >> sure. as yields rise, you know, you could see a little bit of a bump in the financial space but honestly, that's a sector i avoided. t this year it's been a decent performer. i don't know necessarily if you'll see the yields curve steepening in it all of this i just don't know if that's going to be a reality. that is something to really follow closely when you look at the financial space. but it's been a space that we've avoweded this us far this year >> all right patrick, we appreciate the insight. thanks for being here. >> no problem. thanks for having me >> thank you one last look at the markets before we begin. futures in the red across the board. nasdaq taking the biggest hit at this moment. something to watch as the markets open up in just about, what, 2 1/2 hours. actually four hours. what kind of math -- i'm glad the producer just corrected me four hours it's early guys. the that does it for us here on

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good morning stocks remain at or near all time highs as we prepare to hit the jackson hole central bank symposium. that's all we're talking about we have a bunch of fed heads to come on. we'll analyze everything we heard yesterday. the biden administration securing billions of dollars in commitments from the private sector the efforts to fight the growing threat of cyber attacks. details straight ahead

and now the stick. beyond vaccine bonuses now going to the inverse for employees raising health insurance premiums for unv unvaccinated workers is that a move that will will catch on delta, delta i saw the headline no, this is about the airlines it's thursday, august 26th, 2021 happy birthday, mom. love you and "squawk box" begins right now. >> good morning and welcome to "squawk box. i'm melissa lee. it is national dog day as reminded me. >> thank you for bringing that up that way i don't have to >> i knew you were going to. might as well ni