major pay day. friday august 22nd, 2021 "squawk box" begins right now. good morning, welcome to "squawk box" here on cnbc. becky and andrew are off today it is friday, tgif >> it is not the greatest friday. kind of a tough friday >> it's a big friday let's look at u.s. equity futures at this hour as, of course, investors are awaiting jerome powell's speech at jackson hole we're looking at gains for the week s&p 500 looking to be up by 15 dow looking at 102 and nasdaq up by 54. a good week for the nasdaq treasury yields in focus

1.34 is on the board this morning for the ten-year yield >> you used your influence to get the guy on today >> to be honest, you know, i didn't do anything i don't have any influence here. >> carter -- >> we were going to have him on "fast money" last night. >> great good that we have him this morning and we'll -- there are times i like to hide in the refuge of the mundane bond market, fed, all that stuff. this is one of those days where i'm almost glad what we cover because we can cover this stuff and do our job and the tough stuff, man president biden addressing, you know those guys are getting up they're already up just knowing what the risks are. they're amazing. president biden addressing the country yesterday after a deadly day in afghanistan 13 u.s. service members were killed 18 wounded after two suicide

bombers detonated explosives near kabul's airport >> those who carried out this attack, as well as anyone who wishes america harm know this. we will not forgive. we will not forget we will hunt you down and make you pay >> a group called isis-k claimed responsibility for the attack. president biden said he ordered commanders to develop plans to strike isis-k assets, leadership and facilities in the meantime the american withdrawal continues since the end of july more than 101,000 people have been evacuated from the country including 5,000 u.s. citizens and their families interesting piece in the journal like an enemy of my enemy type thing. the taliban has been fighting

isis-k not clandescently but it hasn't been covered in american media very much. you know, the taliban, it's so warped what is going on. they were supposed to provide security they were supposed to be providing security for people coming into the airport. so the question is someone i guess dressed as an afghani citizen trying to leave, they breached that. you wonder how tough the taliban security -- >> or if they let them in. we don't know how itp happened. >> the taliban i don't know if any taliban were killed i'm sure maybe there were some but they probably, nobody wanted it to happen the taliban probably didn't want it to happen either. it does not necessarily play into their long-term interest. if you were one of the guys or gals knowing that the threat is not over, how do you, who are these men and women whoare abl

to get up and do their job after a day like yesterday it's just amazing. is it not? >> they're heroes. >> just lucky it's not -- anyway let's get to another developing story here. late last night the supreme court voted 6-3 to block the cdc from enforcing a federal moratorium on evicting renters during the pandemic. a defeat for the biden administration's effort to continue the moratorium despite an earlier signal from the court that it lacked the proper legal basis. brett kavanaugh argued only congress could impose such a nat nationwide moratorium. not affected by the decision, including california, new york, new jersey, new mexico, mexico and washington the study that we alluded to this morning from the uk found that the risk of rare blood clotting is significantly higher as a result of catching covid than from being vaccinated against the virus. the peer review study was conducted by researchers from

oxford universities and several other british universities in hospitals and data analyzed more than 29 million people who received either one dose of astrazeneca or of pfizer's vaccine and they estimated that out of 107, that 107 out of 10 million people would be hospitalized or die from low platelet counts with 28, 28 days of receiving astrazeneca vaccine. by contrast that number rose to 934 people per 10 million following a positive covid test. the researchers found that clotting risks remain elevated for a longer period of time after covid than it did following the vaccinations can you believe we have the limits of resolution to confidently, 934 out of 10 million. i need scientific notation to figure that out. it's a small number.

>> good news >> almost good news that covid doesn't cause it so much causes so many other things that will kill you. j.b. pritzker will mandate vaccina vaccination. kentucky governor andy beshear out with a warning that acute care hospitals are reporting staffing shortages as they hit a new record for the fifth straight day he pleaded with residents to get vaccinated and avoid large gatherings 56% of the state's population has received one dose. since march 1st covid hospitalizations have been unvaccinated the democratic governor said he would enact another statewide mandate indoors but he can't because they sided with the legislature to deserve kentucky's state of emergency. coming up, we've got a live report from beijing on the

global supply chain nightmare. and still to come today's main event starts at 10:00 a.m. when chair fed jay powell delivers the key note, the key note address of the jackson hole symposium. cnbc will bring you full coverage of that speech and we have another big lineup. guests from that virtual conference including atlanta fed president raphaelbostic at 7:3 and patrick harker at 8:00 a.m "squawk box"s mi rht ckthousand in our effort to build the world's safest cars. we've created crumple zones and autonomous braking. active lane keeping assist and blind spot assist. we've introduced airbags, side curtain airbags, and now the first-ever rear-mounted front-impact airbags. all in the hope that you never need any of it. ♪ ♪

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peloton shares are sharply lower. worse than the 45 cent loss analysts expected. peloton faces higher commodity costs and plans to ramp up marketing spending in the months ahead. revenue growth slowed for more than a billion dollars to just $937 million in part of the recall of its treadmill products in may over safety problems. its cheaper model is set to go back on sale next week peloton lowered the price of its less expensive bike and also rolling out new financing options for the more expensive bike and the treadmill to try to make the products more affordable it's all about margin pressure, joe. we heard it from so many different kinds of companies in terms of higher material costs,

a makeshift change here in this case >> we're going to talk to dana in a minute about retail and that's all about supply chain. not all about it, but many of the companies that did miss, that's what it has to do with. and then you think about, you think about the ones that are really price sensitive and a slight move in input because they make no money anyway. dollar tree or something like that, they're going to be pressured by that because they don't have a lot of room to raise prices >> yeah, we saw the impact of a stranded container ship in one of the dollar stores and the impact there in the quarter. >> and then think if you're back to school type operation are people going back to school? >> i mean, back to school. they're thinking about holiday they're thinking about christmas and whether or not this is solved by christmas. >> some people go back to school, but that's not what we thought it was going to be three months ago >> no. big questionmark there

meantime, we're also watching shares of gap earnings of 70 cents a share beat estimates of 76 cents and raised full-year guidance for earnings gap also acquired ecommerce start up draper. an app that lets people try on clothing virtually it will find the best clothing sizes and produce unnecessary returns. why are you grimacing about that >> how do you try on clothes virtually. i don't understand >> i don'tthink you have to be naked. >> you're virtually trying on clothes. you have your underwear on maybe. i don't know, it sounded weird >> the things you think of at 6:00 in the morning are just a marvel really >> with global supply chains, i know >> underwear is your top thing >> i'm not thinking about

underwear, i'm thinking about what does that mean to try on clothes virtually. you don't have to go into a dressing room. >> no, you don't >> what do you think of? you just think of what the prompter says. isn't your mind working -- >> it does there's less friction to me actually making a purchase >> if you think russians are going to the beach, how can you not think of guys like boris not wearing those small bathing suits? >> i just don't. >> then you're going to happen to be at a beach because you weren't forewarned >> i'll be shocked >> with global supply chains still stretched to the max, some suppliers in china are looking to the skies to get their goods. eunice joins us from the airport. you weren't on camera going, oh, but i just assume that's what

you were doing anyway, good morning >> good morning, joe you know, it looks like the air cargo situation is going to be a headache for a lot of these companies that you mention that are hoping to get their goods out. we are speaking to cargo workers here at the beijing airport who say a lot of their colleagues don't want to return to work because the quarantine protocols are so tight they say the current protocol is what is called 14, 7, 7. 14 days of working in an isolated bubble or in a bubble and then seven days quarantined in a hotel and then another seven days of an isolation at home in shanghai where there were six confirmed cases, the protocol is even tighter where you have seven days of working in the bubble and then two weeks of that quarantine protocol so, a lot of that very restrictive. in fact, everstream which is a supply chains expert said that a significantly constraining

capacity in fact, they believe that air fright prices are going to rise to $20 a kilogram. that's about five to six times what the rates are during normal times. and they said that they could happen in just a matter of weeks. the ceo said that companies, manufacturers and shippers really have to be prepared this is what she said. >> the best way that they can protect their business or prepare is to really have plans in place for alternate routes or modes of transportation or even alternate suppliers. so, they also should be checking their buffer stock capabilities and looking at their policies to be able to handle the unexpected because these disruptions will continue >> shanghai authorities are mandating that cargo workers be isolated away from passenger flights. also a lot of the flights are being rerouted to other airports

around the country one logistics expert i spoke to said the most sensitive sec sectors -- >> all right, eunice, we're taking some hits i'm surprised we can do it every day so seamlessly. but thanks seema. higher fright costs popped in in earning reports this week as we alluded to going to dana to talk about the issue of supply chain issues and her outlook for retail ceo at advisory group. is it everybody, dana? >> it is everybody, joe. nice to see you, melissa everybody is having this issue ocean container freight rates and just getting the goods in from china to ports on the west coast went from $1,500 six months ago to $15,000 now and

growing being able to get the goods for holiday season is a concern. and we're hearing these headwinds are continuing through 2022 there's no end in sight yet. >> so knowing you, you have done the math and thought about who could be less affected who is in a better position to do this and who are the companies that aren't >> we have been doing that work all along. what we're seeing out there right now you're seeing pricing power and some of the apparel companies have pricing power and you look at company like tappestry where there is pricing power and urban outfitters and abercrombie and cosmetic businesses like estee lauder and you mentioned gap earlier. they had a very good quarter numbers are moving up. they basically have been able to manage through the freight while

still being a headwind for the second half of the year, i don't have any apparel company that isn't going to have a headwind from fright monitored by and frankly moderated by demand. the demand is there and goods are selling at full price because inventory levels are lean and this is going to be through the end of the year what every company is talking about >> we have talked about how the pandemic affected everybody in terms of omni channel and online orders and then we say this isn't the pandemic, this is supply chain that's the pandemic, too so, it's all related to that but it seems like a different sort of side of what we're dealing with it's still the pandemic. let's go back to the other thing we were talking about and that is people going to stores and, you know, whether they're picking up goods from, i read dick's people are coming to the parking lot andordering things and going and picking up the goods there. a lot of nuance in the way that we're going retailing based on

delta. >> yeah, what you and i talked about five years ago, it's a different world today. curbside pick up ship from store. that physical store is being used for more functionality than ever before. and it's essential we've seen that. and the other thing we're seeing as stores open up and granted traffic is not at the levels of 2019 yet, but you're also seeing digital sales continue to be strong you need to have both. and i think right now hopefully the delta variant subsides and we all get boosters but going out to social occasions, again what are you seeing. new fashion cycles denim jeans. there's new trends in denim jeans and new tops people want to get out there and gather safely and buy new things because they haven't bought new things you mentioned back to school look at children's place where the month of august has seen a 41% increase in their sales versus two years ago and august two years ago was their best month in history.

we're seeing different ways that retail is done you mention virtual try on before well, it's now even virtual try on cosmetics, too. we have learned different ways >> well, we don't have any time and i was going, how would, someone whose weight fluctuates, how would i try on let's say a suit virtually how does that work >> i think you're going to try on a suit virtually by putting in some of your metrics and they'll show you what it looks like on other people -- >> can i lie >> you're not going to lie, you're going to tell the truth because only you and the computer really know >> i might embarrass myself, though >> because you care about what the computer thinks about your weight >> no, dana, thank you you have to put a bunch of stuff in and you don't sit there and like virtually -- >> it's going to see you and take pictures and you're going to look good

don't worry about it >> pictures. okay dana, thank you. >> thank you have a good weekend. >> okay. we'll see you. told you the naked. >> she didn't mention underwear. >> why would you do your metrics if you don't want to be fully clothed if you're going to be getting fitted for a suit or dress or something apple making a major concession and help some apps avoid paying apple a cut of their revenue. oil prices moving higher this morning as tropical storm ida approaches the gulf coast. crew prices reversing last week's slide wti on pace now for the biggest weekly gain since february it's up right now by 1.5%. "squawk box" will be right back.

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apple says it will allow app developers to e-mail users about the ability to make purchases outside the app. a concession that will allow developers to avoid paying app store fees apple says users must consent to the communication and have the right to opt out the policy change because apple settled a class action lawsuit with developers who accused of it monaupalized distribution the anti-trust battle with fortnitemaker and a trial is expected later this year meantime a big pay day for apple ceo tim cook receives more than 5 million shares this week and sold most of it for more than $750 million. the final part of the pay package that he received when he took over as ceo ten years ago

he received the maximum amount he was eligible for under the 2011 agreement which depended on apple's stock performance relative to other s&p 500 companies. last year he got a new compensation package that runs through 2026 well, we've just got some additional news on peloton that could add pressure to the stock today. the company has been subpoenaed for documents related to injuries associated with its products and that the sec is looking into publish disclosure regarding those injuries earlier this year. peloton had 129 injuries occurred from children being pulled under those treadmills. coming up, the countdown is on to jay powell's speak at the jackson hole summit. get ready, steve liesman has a preview. coming up next >> no offense to steve

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good morning futures have moderated a little bit. up a couple digits on the dow. up now about 86 points the s&p 500 is up 13 and change and the nasdaq up 53 fed chair jay powell, meanwhile, will address the jackson hole virtual symposium at 10:00 a.m. eastern time a speech that you'll be able to

see right here on cnbc so far we have heard from many fed presidents with more on the way and steve liesman joins us now with more. i just retweeted something that there's lies maniacs everywhere, steve. i'm on your side >> no, i'm a lies maniac myself. >> little late, melissa. i don't know >> all right whatever, i hate you, steve. go ahead >> no. do people know what goes on here at the 6:00 a.m. hour? joe, like the bosses aren't watching this is like being somewhere back stage at rock 'n' roll concert and my parents squabble. >> the bosses are the ones watching at home, you know that, right? one group to satisfy what if we did everything the other bosses wanted us to do >> that's true but, i feel like if you're not

watching the 6:00 a.m. of "squawk" you're not watching at 7:00 you sit up and act like a proper anchor. but 6:00 a.m., i don't know. anyway, here's what i want to tell you fed chair jay powell is set to kick off the conference at 10:00 a.m. three cnbc interviews and that has had little effect on the outlook for fed rate hikes which markets continue to price in beginning only at the end of next year. here's what dallas' robert kaplan said. here's what he said about rate hikes. >> i have explicitly and will continue to divorce considerations for asset purchases from our considerations on the fed's fund rate the fed's fund rate is a decision made down the road. yes, my first rate hike and my forecast is in 2022. but i'm not making that decision today.

>> market seems to be doing that, too. st. louis fed president says he wants to get the taper done so the fed can have the flexibility to hike rates to combat inflation. suggesting he could support earlier increases and asked esther george if she agreed with the end of 2022 for the first increase >> that's in the window of a reasonable outlook again, completely dependent on how the economy unfolds. so looking out to the end of 2022, '23, will mean judging a lot of job reports between now and then and looking at how growth in the economy unfolds and again looking at our mandate for inflation. >> so the immediate question for markets today is if powell sides with hawks or doves on tapering later but likely continue to insist that rate hikes are a

different matter for a different day and so far markets seem to be buying that particular line we'll hear from other officials on cnbc. we have pat harker and rich clarida and fed chair powell >> he's going to be dovish the other people good cop, bad cop have come out with, you know, they let us know that we're on notice. but his job is to stay stable and day dovish my question is what do you think he really thinks if that wasn't his role do you think he's being swayed by arguments to taper sooner >> i do, joe and i don't know if i agree with you on that. even despite your support for the leis maniac movement >> which there's no cure it's treatable but there's no actual -- >> you have to wake up in the

morning and hear, you have to wake up in the morning and hear about fed policy and economic policy to satisfy. but here's the deal. i think powell has a lot of appreciation for what these hawks are saying i don't know that it comes out and says it today, but if he says, we've had a substantial further progress or we're very close to the substantial further progress we've been looking for, that would be a signal that he's ready to go. and i think that, you know, joe, we've talked a lot about this. a lot of ways he can set this thing up he can say we'll announce september. we'll start executing it in november we'll take ten months or eight months he has some flexibility to negotiate. he is really good at bringing the committee together in cons consensus, i think i think he'll strive for that. another month of employment report and not going to lay it out for sure but i think he has some sympathy with the hawks out there >> thank you, steve. steve liesman. >> pleasure, melissa

>> dig into what the technical signals are telling us let's bring in carter. carter, good to see you. you had a report earlier, walk us through what you're seeing. >> sure. so, we know that, well, let's start with this, actually. i think everyone will agree. is there any real important difference between 1.45 and 1.44 and 1.15 the cost of money is cheap and the great irony is that doing one three to five-year work and try to figure out what a great growth company is worth doesn't and shouldn't change whether interest rates are 1.25. but somehow money seems to take a big interest in that yes, if we had rates moving into the threes and fours, you have to consider that but what we do know is that interest rates have been in a well-defined down channel or trend if you will since the

peak, well, five, six months ago in march at 1.77 and interest rates bottomed and now have breached the upper band of that channel. that's a pretty important development. and what we're thinking here is that we're ultimately going to get to 1.45, the number you referenced, melissa. because not only 50% retracement from the peak but it's also where the 150-day moving average is something i rely on heavily >> so, carter, when you take a look at these charts in terms of where yields are going i mean, the trade in financials, for instance, have shadowed where yields go in large part for many, many months now and i'm wondering if the charts line-up in the technical analysis >> well, in the sense that, again, it's all about who you are in the market and what your time frame is. certainly if rates do start to

inch up to 1.55, let's say, or 1.6. financials get a bit of a boost, an interest. but here, too, if you think the long term, if you look at financial we might have a chart here of the sector since 1989 data now, joe, you'll remember when we started i think you will remember before 1989 the sector was different. they didn't call it consumer discretion and consumer staples. it was consumer durables and nondurables and things like that what's interesting is now as we have it the relative performance of financials and the sector as we know it now is actually remarkably back to its own rel too ative to the market. i just don't think it is a good area to be in. >> the break out we've seen and i don't want to say break out but snap back rally in oil and what you're seeing in oil and energy stocks.

>> yeah, that, too i mean, this is, how would i say it it imputes the person trying to do it such an ability to time that i don't think it's worth the headache one, it's too small an area of the market now there were great leather companies and cord and twine company and tin companies and radiator companies i mean, coal oil is too small an area of the market for a benchmark manager at less than 3%. two in the past six years it's had two periods where it's generated alpha to the s&p a four-month period and a three-month period this entire move this year relative to the market it was october low to march high. you had basically five months. i don't like energy. i think it's a hard gain and i don't think one needs to do it >> carter, great to see you this early in the morning carter braxton worth

>> carter braxton. when did we decide to go with that >> we didn't decide -- >> it didn't use to be and i mean worth is a pretty good name for an adviser, too. >> it's very -- some names out there that really match the profession >> that's true we used to have phil dow on a lot. that was weird you know coming up, it wasn't his thing. china out with draft internet rules overnight that could have an impact on some major companies. later dr. zek emanuel talking about getting kids back in the classrooms. a reminder you can watch or listen to us live anytime on the cnbc app we're coming back.

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china issuing draft guidelines now on regulations that the algorithms used by internet service providers, make recommendations to users part of china's new effort to protect users' privacy and data. the guidelines say service providers should not set up

algorithm models that entice users to spend large amounts of money or spend money in a way that may disrupt public order. said algorithms should not be used to create fake user accounts and users should be given the option to easily turn off the recommendation services. alibaba and didi are two companies that use algorithms to predict. that's in the eye of the beholder gives the chinese government a lot of leeway on what would constitute, what was that phrase disrupts order or something. >> right yeah because the company, because the data and the knowledge about the consumer and the people being held and consen scentrated by t companies. the concentration of power >> it's a pretty good gig if you can get it, if you like being in the government. >> think of how these companies are named. can you imagine doing an amazon search and then recommending

you know how at the end they're like you might like this and usually something pretty related because it actually matches what you were looking for if it just spewed out random stuff. because it didn't have the data to actually recommend anything appropriately. the business is completely changed. >> do you ever talk about something and then see it come up on your phone >> yes or you e-mail something and then you all of a sudden get ads. >> got to be a consisincidence. it's a little weird. >> it's a little weird >> weird things. things that you wouldn't want people knowing >> like what, joe? >> like anything like anything -- oh, my and then they're advertising. let me ask you this before we go >> okay. >> do you ever on twitter see an ad that just gets you so irritated that they're making you look at that that you say i don't like this ad and does it do any good when you say, i don't like it.

you never do that? >> i just control past >> you don't care what they do to you advertise some more to me so that, you know -- >> what do you do? >> you can click on it and say i don't like this ad but then they do it again. it doesn't matter if you click on it. >> isn't that more frustrating wouldn't you just rather scroll past and be done as opposed to knowing they don't give a crap about what you say >> you're right. i'm not going to do it i got to do it to this one the "wall street journal" reports that large amounts of data going public in the united states reports say regulators have been informing companies that the new rules would prohibit internet firms from listing abroad and asked some to hold off on ipos companies with less sensitive data such as pharmaceuticali companies which receive listings

according to this report. we'll bring you a live report from beijing in the next hour up next the ceo of volta will join us. the company is going public today by a spac. "squawk box" will be right back. [grunts] ♪ ♪ [grunts] pnc bank believes that if a pair of goggles can help your backhand get better... yeah! ...then your bank should help you budget even better. (laughing) virtual wallet® is so much more than a checking account.

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charging manufacturer volta is debuting today on the new york stock exchange. joining us now is volt a's ceo great to have you with us. good morning obviously shareholders approved this merger, but many of them

chose to redeem their capital out of the trust so you're raising less money than previously expected. does that change the plans you had? >> i think spacs are a bit of a frothy market up and down for now. for us we were lucky to have $3 million to our story so with the total in capital that's our business plan >> so what your going to do with the 400 million >> our focus right now is on building the critical infrastructure that will underpin the transition. we're out building stations with our partners across the country. >> in terms of -- mean how exactly are you making money you're looking for a partnership. you're going where consumers spend some time. that makes sense you want to spend some time to charge your car and not go some place where you go and leave

you want to go a gym or supermarket or something like that so how exactly do you make money and how do you entice that retailer or shopping mall, et cetera, to say, you know what, put a charging station here. >> right volta, our theory of the business is on driver experience and behavior this is not just monetizing. this is a shift in how mobility behavior happens helping businesses understand how they can attract customers through charging use charging as an advertising vehicle, use it to drive shopping behavior in the store this is a much, much more interesting way to monetize the e charging business. volta is the largest own operator in states by revenue by a fair margin. >> how are you monetizing. is it a revenue share? how granular do you get how you

understand a driver changes their behavior based on whether or not there's a charging station there? >> as people move from gas cars to electric they see a shift if they see a charging station at their local supermarket they are more likely to go there. they may spend more time a product is advertised on the volta network they may purchase that network we think about the whole funnel of driver behavior and how that shifts as people move from gasoline cars to electric. >> i'm wondering how you think you'll benefit from the infrastructure plan. there's obviously in the bigger plan the there's a carve out for evs and charging stations specifically but in terms of the grid do you ever think out to the, years down the line to whether or not the grid can actually handle the plans and the projections for ev penetration in the market?

>> frankly, this business is all about looking decades down the line that's the fascinating part. what we really are looking at from that perspective is how do you do data-driven planning, how to make infrastructure that's consistently used and not peaking the grid as we work with utility companies they have access to our data, predictive software so they can be highly useful and used by drivers so more predictable in terms of energy consumption. >> scott, thanks for your time >> thank you >> scott mercer. >> jackson hole summit kicking off. atlanta fed president rafael bostic and patrick harker.

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we wait for j. powell's big speech at 10:00 even we'll talk taper with raphael bostic and china is planning to ban some companies from going public in the u.s. plus as covid numbers climb schools across the country are trying to safely re-open and stay open. dr. zeek emmanuel will join us with what he says are the key to success as the second hour of "squawk box" starts right now. good morning and welcome back to "squawk box" here on cnbc i'm joe kernen along with melissa lee. becky and andrew are off futures at this hour are indicated up a little bit, tough session yesterday. not as tough as i felt

and all of us felt but you knew the market probably wasn't going to be able to the trade higher the market has a mind of its own. it's more focused on powell than the other events happening globally but the nasdaq is doing pretty else up about 53 and s&p is up 13 but we did pull back yesterday fed chairman jerome powell expected to make a speech later this morning at 10:00 a.m. investors are waiting to hear if powell will give more specific information about the fed's plan to begin tapering asset purchases. shares of peloton are falling. a wider than expected loss in its subscription numbers peloton announced it would cut the price of its flagship bike by 400 bucks and peloton has been subpoenaed by the government for documents

aligned with injuries. apple will look at users to tell them about commissions this comes as apple awaits a ruling in its legal battle with fortnight. got a couple of big headlines out of china including a report that beijing is working on new rules that could ban certain companies from going public in the united states. >> reporter: thanks so much. the "wall street journal" as you mentioned is reporting now that china's stock market regulators is considering issuing new guidelines that would potentially stop internet companies from listing in the united states especially ones that have a whole lot of sensitive consumer data. that china considers sensitive also the "wall street journal" was quoting sources saying these

new rules would target companies that would want to use the variable interest entity or the structure which is used by a whole lot of chinese companies such as alibaba to skirt some of china's rules and be able to get foreign investment so the problem, of course, with this whole situation is that here in china there are sectors that could be considered sensitive. the "journal" is quoting some officials at the securities regulator saying pharmaceuticals might be a sector that wouldn't be affected but other than that internet, telecommunications, i would argue finance also really considered sensitive because of the potential disruption that it could have china's system or national security. now this all comes as china has issued new regulations for isps and to regulate their

algorithms the government says this is part of their effort and recent decisions to try to protect users and their data, so in these guidelines the internet recommendations are not allowed to promote excessive spending they said. no fake accounts also they have to make sure to have easy options to turn off some of those recommendations and, again, the government says as it has been that these regulations are not meant to really hamper the internet sector but meant to have a healthier environment to try to create some of these standards, and stave off disruptive behavior >> embedded in all of this is the notion that currently listed chinese companies in the united states could be forced to delist is that on the table >> reporter: i have not heard that that is on the table. in the past i've seen that those

companies might be just left alone, that these regulations would be for new companies that are looking to listing the united states. however, as with all of these decisions that are being made there isn't a whole lot of clarity, even though we did have a couple of officials recently who said that, that the decisions that they are making are very clear, and when they say that, officials say that they are not targeted at private companies or foreign funded companies but, instead are regulations for all of the companies that operate in china. >> at the same time, on the u.s. side, the sec is requiring more disclosure of information from chinese companies listed in the united states and gary ginzler said the clock is clicking if the chinese government said no you cannot share with the

u.s. sec that does force a delisting. >> reporter: i didn't hear the final part of your question. but i think you were talking about how the u.s. appears to be making some similar moments to kind of crackdown well not crackdown on chinese companies but to make sure that they are up to standard when it comes to some of those listings what we're hearing here is that the chinese government actually wants to make a move to try to cooperate with the u.s., and so there have been some rumblings this week that the chinese government, you know, does want to try to, as they would say in chinese speak meet the u.s. halfway when it comes to regulation >> thank you let's get to eamon javers now. felt like a gut punch, everyone i think around the entire country and that's the situation in afghanistan following yesterday's deadly blast

eamon javers is in washington, d.c. good morning >> reporter: good morning, joe you're right the numbers are tough to hear what happened yesterday was twin blasts in what the united states is calling a complexion attack involving suicide bombers and isis gunmen attacking a checkpoint outside the airport in kabul here are the number that we have as of right now in terms of total casualties and they are tough to take, joe 13 americans killed. 95 afghans killed according to the associated press that number is in some flux as they go hospital by hospital and try to figure out exactly what the total there is so that number could move a little bit the white house just released this new number. 12,500 more people evacuated from afghanistan over the past 24 hours isis-k is the entity that has claimed responsibility a splinter group from the taliban that is at war with the taliban so they are at odds with the taliban even though they

share some ideological overlap there's a struggle for control of the country and this is the collateral damage from that power struggle that's going on right now. biden at the white house yesterday addressing the nation. he was at times sorrowful and defiant in both in terms of the u.s. response and also his defense of his decision to withdraw american forces entirely from the country. the president had a word of warning for those who carried out this attack. here's what he said. >> those who carried out this attack, as well as anyone wishes america harm, know this. we will not forgive. we will not forget we will hunt you down and make you pay. >> reporter: so a very difficult and complicated situation here

remember the withdrawal deadline is august 31st that's self-imposed by the united states but the taliban has said they want to see that held to as well. that's tuesday today is friday. that doesn't leave a whole lot of time to evacuate remaining american citizens and afghan allies out of the country. the president suggested yesterday that not every afghan who wants to leave will be able to leave the country ultimately. the president is also vowing revenge against isis-k the at the same time he's trying to complete this evacuation of all military forces from the country. i talked to a former high ranking u.s. military official in afghanistan yesterday who said that any military action in afghanistan going forward is going to be extraordinarily complicated by fact that we no longer have any bases there or any bases really in the region to operate out of and that means that any drone strikes or the like will have to emanate from the gulf initialing 60% of drone's capacity will be taken in just traveling to and from

afghanistan and doesn't leave a whole lot of time over target for anybody who is trying to contemplate the revenge that the president was talking. a very difficult situation the most difficult part of it all is u.s. officials say they expect more of this not less in the days to come joe, back over to you. >> that's where i was going to go, because we're still involved, as you said, i was surprised to hear how many in the last 24 hours, and a lot of that had to be even after what happened yesterday so they are still doing it they are still doing their thing getting people out knowing full well that there are warnings that there could be more attacks. so you told us what you know they are expecting more attacks. no clarity on what that means, where it's coming from, how we know, how likely it is what can we do can we co-opt the taliban for security to some extent?

can things get toughened up? i mean i can't believe these questions. can we ask the taliban to toughen up the security at the gates? >> reporter: we can. and. what you don't know is, you know, isis-k has recruited its own members out of the taliban isis-k think of a more extreme version of taliban who don't think taliban is going far enough hardest taliban fighters are susceptible to recruitment by isis-k whoever conducted this attack presumably got through the first checkpoint we don't know if that was deliberate by the taliban on the ground whatever faction that was. did they let them through or turn a blind eye or was this attacking force somehow able to dupe the taliban at that checkpoint we just don't know i talked to this u.s. high

ranking former u.s. military official saying there's way to hardened up the exare thor perimeter of the airport including have long snaking concrete barriers so people are more or less in single file for the long line rather than a large crowd gathered in a clump and that is, unfortunately, to limit the damage that a suicide bomber could do if they are able to get in and detonate only so many people within a blast radius if you have a long snake line rather than a huge crowd mashed up against the fence. there's tactics and techniques they can put in place. i think about the pilots and staff and crew who are at that airbase right now who are potentially getting shot at. u.s. military says that they don't think they have the manpower capability to take out a u.s. aircraft there but they say that the u.s. military aircraft are using all kinds of defensive mechanisms because they know somebody, a lot of people on the ground do want to

take a shot at them. i also think of the marines who were on that wall yesterday and, you know, the harsh reality -- >> they are standing there standing there not knowing any minute -- >> reporter: yes and they stood there yesterday, joe, these marines who were killed stood there yesterday at a point when the united states had intelligence that an attack was likely coming. they even had intelligence that suggested that that gate was under attack you have to presume that intelligence was passed to those very marines who were there. they went and stood on that line anyway and held that line yesterday. >> now they know that a lot of people that they know in the armed services or even their fathers that fought for the last 20 years all they are trying to do now is just help people get out of a failed war, a failed mission and all those lives that now just seem to be lost they are still there with their

lives on the line just to get these people out where do these men and women come from? it's amazing thank you. not the time for politics. i thought it was weird biden called on our nbc desweird thing to say i've been instructed did yousee that. any scuttlebutt about that >> reporter: it is a weird thing to say in the moment that he's been instructed because the president can call on whoever he wants and he doesn't take instructions from anybody. the way that works and in previous magnitudes have done this too, the press office comes up with a list of reporters that represent whatever they want to represent. in this case he did call on presumably hostile reporter from a conservative outlet so he wasn't just calling on friendly reporters. but you know they drew up a list of reporters they wanted him to

call on. remember there are a lot of g gadflies and one or two odd balls in the press corps and they wanted to go with the established press corp >> which gadfly -- >> reporter: i'm not talking about the guy from cnn these guys are more gadflyish than that. >> eyes of the beholder. what investors want to hear from all of today's fed speakers. first check out the week's big engineers winners and lowers stay tuned you're watching "squawk box" on cnbc

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welcome back to "squawk box" take a check on futures and how we're setting up this friday morning. s&p 500 up by 13 joining us now the managing partner at dcla and also a cnbc contributor. great to see you obviously we're all waiting for jerome powell. choose your own adventure in terms of what powell will say. will he be dovish, hawkish, remain the same and what's the impact on the markets? >> i think he's got to be clear. the market has been waiting for

a while just to get a road map if we taper what will it took like and what are the parameters around it. the uncertainty, the backing off, we won't do anything, we'll wait, if that's the message then we need to know what will change thing. but i think the uncertainty there and kind of the dovish outlook so far has really been a put to the market. if we get some type of idea or road map -- doesn't necessarily mean the market will go down peopleexpect a 2% correction over time they need to go higher but it's the timing. >> there's an assumption embedded in that statement and most assumptions we need clarity around the taper guideline the taper and rate hikes are linked i wonder if there's a possibility they are not linked if that's increased uncertainty for the markets.

>> yeah. that's a really good point we don't necessarily have to raise rates and have taper happen at the same time. we can do tapering and wait and see how that looks and then over time, weapons the delta variance, doesn't mean we raise rates. the market on its own can raise rates but the tapering is something that the fed needs to look at closely and especially how that works in the bond market one there's clarity as to tapering it makes investing and makes people understand hey what's the future going to look like >> what does the market backdrop look to you if we have a taper timeline but there's the implication that the rate hike timeline is divorced from that >> i think the market would like

that a lot because it will basically say hey we're data dependent which the fed talked about for a long time and i think then growth will drive where interest rates go. earnings will be very important. globally we'll have to seek where the rest of the world is so i think that would be the goldilocks scenario where the markets will do well fixed income markets will behave less volatility and at that point i think investors will be a lot happier. that's pure goldilocks there's a lot of uncertainty but i think if you are going to write how this should go that would be one of the scripts that people would be looking for. >> after this week, we spoke on tuesday i think it was, we've gotten a lot of earnings reports talking about supply chain issues and these issues crop up for earnings winners as well as earnings loser williams sonoma had a good

quarter but cited some pressures on shipping costs, et cetera and also we heard it from the dollar stores do you think this will be a longer lasting more impactful issue for corporate america? >> i don't think it's going to be longer lasting. it's going to be another three to four quarter issue where supply will catch up with demand at that point it will be interesting to see whether this is more permanent or transitory even on the demand side. i think demand side will be important. at that point we won't have all the money coming to the consumer, the consumer will be back out there working so these things are offsetting and i the think the market sees that through too if companies are saying hey look our earnings are going up and still strong through supply chain issues they are forgiven if these are things that will be long term issues that's a lot harder because that comes down competitiveness. companies having problems with

chips, whether cars or phones are being given a pass but some of the others are a much harder thing to look through. >> thank you good to see you. >> thank you the u.s. open set to begin in new york next week but star power is lacking we'll talk about the big money implications with the u.s. ta ceo. then at 7:30 eastern, raphael bostic have you thought about this? the kansas city fed that's not in kansas city because it's at the jackson hole symposium but not in jackson hole. i don't know what. we'll be right back. >> announcer: time now for today's aflac trivia question. in 1981, ibm introduced its personal computer with this company's operating system the answer when cnbc "squawk

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this company's operating system. the answer, microsoft. the pc featured the company's 16-bit system known as ms-dos 1.0. u.s. open begins monday. it's usually a big money maker for new york but this year's u.s. open is without sensitive ralph its top stars, serena williams, venus williams, roger federer, raphael nadal joining us now michael dowell. good morning i miss everyone who is not there, but, you know, we've had to deal with not having a full sports we new for a couple of years so the excitement still should be pretty high, i would think. >> hi, joe thanks for having me it is disappointing to miss southeast top stars as they've

been wonderful champions literally for almost 20 years so it's a little bit of a changing of the guard we're not counting them out by any means and we hope those champions are back next year but we do have a lot of depth this year surprisingly think about the big names missing the tournament we still have 19 of the top 20 women in the world competing in the tournament including naomi osaka. on the men's side 17 of the top 20 men competing and novak for the first grand slam in 52 years. we're excited about the quality of field we have and more importantly and equally important so exciting to have fans coming back after having no fans last year >> exactly i'm thinking if you were a total homer and only liked american stars, you would have kind of a problem with men's tennis right now, wouldn't we it's really not that new anyone in the top 17 that you just talked about that will be

there? who should we be pulling for if we did want to root for an american >> good question we absolutely want american champions as the governing body of american the tennis i love our depth i just threw some statistics at you. i'll throw a few more at you we have 14 of the top 100 players in the world that are american that's on the men's side on the women's side a ton of success. 16 of the top 100 players in the world that are american. so we like our depth the future is looking bright absolutely we want a grand slam champion on the men's side it's been a few years since weaver had that >> trying to figure out, not andy i should be paying more attention to it. who was the last men's -- >> it was andy our last men's grand slam champion. >> i was at the semi-final match, it was a five setter and the final with andy wasn't as --

at least wasn't as excitely as the previous one it was amazing i'm worried about covid. >> you're coming out there year. >> i'll be there >> good. >> on a really good night too. i won't say when because the crowds are big enough. if i disclosed that -- as far as covid, seriously, michael i'm worried because you know before people go in there's a lot people around, you're not going require either mask wearing or vaccination cards but it is outside but it seems like people are pretty close together. is it full occupancy no restrictions there either >> well it is. again we take this really seriously and, joe, last year we developed a playbook to help us on this. i know it was without fans we did over 14,000 covid tests last year with the players and support staff. we had a 99.97 negative rates.

this year we have fans so we worked extremely closely with city of new york department of health and cdc you mentioned no vaccines. we require them for our indoor dining and suites so that's important to note. as far as the grounds it's like a mets game. not requiring vaccines we know it's a fluid situation and we'll never sacrifice health and safety that changes and quickly communicate it the guidance we're being given now by our advisory group and health officials is that we're okay without requiring vaccines on the grounds of the tennis center >> if i'm hoping for a men's champion, just give me a name, what's our best shot >> he joe, you can't put me on-the-spot like that. >> give me three is the big tall dude still playing with the huge sevgs what's his name, isner

>> he is we have another american who fits that bill, riley who is having a great summer. and there's a lot of players -- the field is really wide-open. again i think you have to think novak is the favorite right now. >> yeah. he's mentally, he's like scary he scares me he scares me he's so mentally tough. when the crowd starts hoping for the other guy, the other guy will lose. that's just novak at this point. all right. we're excited about the lady's side too too bad the williams sisters aren't there now there is a lot, we have a lot of talent coming up on the lady's side of things and they have been winning. so that should be good thank you. tell them to look me up. look me up as i said there might be a crowd but come over and say hi might be on a saturday >> i look forward to seeing you. >> might be on a saturday. >> note to self don't go on

saturday >> that's not nice you take a lot of shots. >> do i? >> i don't care. >> i'll continue still to come atlanta fed president and then zeke emanuel. stay tuned you're watching "squawk box" on cnbc ♪♪ protect your pet this flea and tick season with chewy. find everything from flea collars and sprays, to prescriptions that keep pests away. chewy has what you need to keep tails wagging and pets itch free all season long.

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federal reserve chairman j. powell will give a speech at jackson hole but lnow we'll hear from raphae bostic >> reporter: good morning to you. >> good morning, steve how are you doing? >> reporter: i'm doing well. i wonder if we start off with your overview of the economy when we look at the fed's mandate, inflation and employment do you feel we made the substantial further progress you and other he fed members are looking for to begin to think about reducing asset purchases >> i think we have gone a long way towards making that progress if you look the at the inflation

side we're above our 2% target over a long period of time, five year average for pc inflation core is over 2% right now. so i think that stands as progress on the employment side, you know, we've made a lot of progress i think we're on the road to that a lot will depend on what happens in the next couple of months if we see numbers comparable to what was seen at the beginning of the summer i think in my view definitely satisfying the conditions for making that substantial further progress >> reporter: so it sound like you're one employment report away from thinking about time to announce a taper i assume that's correct. talk about how much time you think the fed ought to take to wind down those $120 billion of asset purchases. >> once we made the progress, and we're very close and i'm hopeful that will happen soon. my view would be let's start the taper and let's do it quickly.

let's not have this linger you know, the last time we did the taper the economy was in a much weaker position than it is right now. and because of that there was some uncertainty the taper itself could trigger some weakness, further weakness in the economy. i just don't think we're in that position now and given that i think that trying to get this done as quickly as possible will be the best approach and i'm not really expecting it to upset markets in any significant way >> reporter: when last we spoke which was back in may you were puzzling over this idea, was the inflation you were seeing transitory or was it more permanent or structural. i'm wondering if you've come to any conclusions on that. >> well, two things i would say on this. first, i do think there's still a lot of episodic inflation. when i talk to business leaders one thing they all told me is that this episode will last longer than people expected and

that this isn't just going three month or six month experience but more likely to go well in 2022 or even perhaps beyond so for me that says we have to look very closely at whether that longer term episode, this longer term episode is going to trigger changes in people's expectations and how businesses and families approach the economy that's what i'll be looking at over the next several months to get a sense of what this really means in terms of the trajectory of our policy. i'm hopeful that expectations will not change substantially and move away from the 2% level that it is in the long run but if it does then we'll have to factor that into out policy prescriptions. >> reporter: you know, hawkish ideas about tapering or combatting inflation have generally been associated with sort of a leaning towards

capital. but your tenure, you focused a lot on low-income americans and their situation, on african-americans and their situation. talk about your sense of how high inflation, that's an issue that really affects low and moderate americans more so than wealthy americans. >> we know that high levels of inflation mean that as time passes, the little bit of money or the relatively small amounts of money that lower income people have are not going to go as far they will put more stress and more pressure on families and cause them to have to make hard choices and really choices away from making long term investments that can change their trajectory and their prospects. so we don't want and we really can't afford to have inflation that's too high because people at the lower end of the spectrum are going to be hurt pretty significantly. i think that's one of the reasons why we are looking very carefully at inflation

we in atlanta have a number of series trying to understand what's happening in the inflation space and surveys and we want to make sure we're on this because high inflation or anything close to run away inflation is really going to hurt people at the he bottom of the lad. so i do worry about that a lot it's something i continue to talk with my staff about as we think about the best course for policy >> you also have been. very involved and i'll give you a plug on this, a series of discussions and sessions on race in the economy that i would encourage people to take note of, and you can see all of that online which i've been following closely. i want to get to the other side of this which there are risks to the down side of the economy talk about your view of the delta variant and also the idea we've seen some slowing in some recent economic data >> well, you know, this whole episode, the pandemic, our economic weakness is really a

function of the public health crisis so we have to keep our eyes focused very carefully on what's happening in that space and the delta variant and it is widespread is something that's definitelily a source of concern. in the southeast all of the states in my district have numbers going in the wrong direction when we think about covid infections and that will have an impact on economic performance. one thing we've seen is that there has been pull back i want to acknowledge that's happening. but it is important to keep this in context which is that we were in very, very strong numbers in june and july in terms of consumer spending, in terms of employment and the pull back and the retraction that we're seeing right now is not really coming that far off of those numbers. right now the delta variant spread is not having a material impact on my outlook for what's happening in the economy but of course if we continue on the

trends that we're on right now that could be called into question so for me, i say just about every time give an interview it's very important that people consider carefully and strongly getting the vaccine because getting vaccinated is an important way to reduce the risk of spread, and economic disruptions and perhaps most importantly the confidence people have in going out and engaging in the economy. so we need to follow our public health officials so that we can get past this as quickly as possible >> we're about four for four now in terms of interviews we've done we're thankful you've joined us to give us your views in terms of fed officials tapering and tapering early can you talk about the next steps beyond that. can you see getting the tapering done quickly to get to interest rate hikes >> so i'm not in a rush to get i want to be rate hikes. i want to be clear on this

i think a lot of the quantitative easing, the asset purchases was done in response to the crisis. as we get past the crisis, you know, i think we should get away from using those tools and let our interest rate be the primary vehicle by which accommodation occurs once the taper is done what i'll do and what i expect my colleagues to do is look at the data, have income information on what's happening on employment, inflation, labor force participation and other factors are really drive our thinking about what the appropriate time for doing, making moves on interest rates will be, but, you know, i'm not -- i really view these as separate things and the taper first, then we'll take a pause, see where things are and then let that information form our interest rate policy >> it's sort of funny, i've been around long enough where the

next question would almost never be asked but you guys write it down so it's fair game when have you pencilled in the first rate hike for the cycle? >> so my first rate hike is at the end of 2022 through -- we do our summary of economic projections, if you will but that still is more than a year away from now and one of the challenges that we all have is trying to factor in and give a narrative what will happen between now and that moment. for me i have a lot of strong growth that's happening but there's a lot of other stuff that will happen and my expectation is that as we go through the next several quarters, i'll take that information and we'll make a decision about whether that's still the right time or whether it needs to be pulled forward or pushed out a little bit. right now i'm at the end of 2022 >> you're very kind to join us

and i hope we can do this next year with no ties at jackson hole >> i look forward to seeing you in person. >> great great. thanks raphael bostic joe, back to you we're in the proper hour now the 7:00 hour. >> right i don't notice much difference i'm glad you do. i think mr. bostic might be -- he didn't say outwardly but just watching the body language another one. it doesn't make him very distinctive. >> chalk it up >> a lot coming up in the next hour patrick harker, i assume as we continue the countdown, the chairman j. powell speech which is at 10:00 a.m., write that down, east coast time stay tuned

coming up, ezekiel emanuel on what schools need to be doing keep schools safe and open this year stay tuned you're watching "squawk box" on cnbc

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school districts around the country are welcoming students back to the classroom. our next guest has important tips how schools can open amid rising covid concerns. let's welcome in ezekiel emanuel. he served as white house health policy adviser in the obama administration was a member of the biden transition team covid-19 advisory board in summary, vaccinate as many staff and students as important, establish testing. everyone even vaccinated people need to wear high quality masks indoors. take any special get-together, pizza things like that, move them outside and improve

ventilation of class those are your in a nutshell those are the five things that you advocate for in the current environment we find ourselves in >> yes you know, one of the things i should note is that, you know, 12 to 15-year-olds are eligible for the vaccine and yet only 35% of them have bern vaccinated that's way too low we need to ramp that up to 95%, 96%. only students with good medical excuses because of their immuno compromised or have other problems shouldn't be vaccinated that's a number that we can really boost similarly 16 to 17-year-olds are under 50%. we have to ramp that up as well. >> if everybody -- if there's a vaccine mandate or close to it for a college and these are young people to start with so mostly vaccinated, then who are you protecting with the mask

mandate indoors if everybody -- are you protecting the students that aren't vaccinated that decided -- we know in the past there's been at least some conjecture that young people since they do better with covid that perhaps you don't need be as stringent this is a zero tolerance that you're added voluntary indicating >> first of all, we're seeing a lot of spread among children about 22% of new cases are now among kids so we really do need to be much more vigilante, especially because many of them under 12 can't get vaccinated even among college students i think that we know that the delta virus spreads, we know that you can be asymptomatic especially if you got the vaccine and still be infected with the delta virus and therefore unwittingly spread to

it others. the point of the mask is to protect you from other people but also to protect other people from you i think in the united states, one of the things i want to emphasize, move up on the quality of the mask, the wearing of the mask. we need n-95 masks that are very, very well fitted that's what i pass out to my students next week when i go back to penn >> i don't know what the maximum amount of vaccination percentage we can get in this country but on colleges you'll get pretty high. if asymptomatic people are spreading it to asymptomatic people it just seems at some point you don't need to be quite as stringent about it. at what number would allow you in the future is it 90 puerto rico of the country gets

vaccinated could we take the masks off? because even at 90, asymptomatic people double vaccinated can get it and spread to it asymptomatic people who are vaccinated and then run into someone somewhere at some point. you see what i'm saying. we can essentially -- we could get permanent masks in your world. >> no we're not going get permanent masks. >> what do we get percentage of vaccinated >> college and university like university of pennsylvania, we live in a larger community a lot of our students live outside. they go in and out of the community and those communities are much less than 90%, 95% vaccinated the way the university will be >> so we're protecting the unvaccinated they need to get vaccinated, obviously. that's what needs to happen. >> you say obviously so then the question is what is governmental policy to getting people vaccinated. who is going to mandate it it does seem to me that we have

been, you know, circulating this, being very ginger about a mandate but i think we need a nationwide mandate why do we have this extremely effective intervention and, you know, roughly half the population not using it. some of them are not eligible but there are plenty of people in the country as i mentioned among young adolescents 12 to 15-year-olds that are jeshl but not accessing it >> what we do to kids, because that's the thing asymptomatic double vax can give it to an asymptomatic vax. if we get the kids vaccinated, at that point can we finally -- >> yeah. then you're going that have situation where the virus will be dying out because there won't be any vulnerable people that's the place i want to we're far from that place. when we're far from that place we need to vaccinate people, we need to wear masks, we need to

improve ventilation in school. all that is doable and all of that can make going school much safer and make parents at ease that's the important point your previous guest said it's about the psychology of going around in society and not worried about being infected >> covid is so scary i don't understand i don't understand i was scared to death before and then you get the thing and it's a real relief. almost liberating to feel like the worse case scenario. >> i agree with you. we have to get more americans feel that way. >> give me a booster >> i'll call you >> okay. can you do it. you can make the call. thanks >> thank you >> my favorite emanuel that's weird that's weird zeke is my favorite. >> yet you pay --

>> coming up, patrick harker joins us from the virtual jackson leho symposium in an interview you don't want to miss stay tuned can they help us improve our digital experience? absolutely. they've invested over $2 billion in tech. that could really help us manage inventory. and save us a ton of dough. then let's take back our market share. checkmate, chess heads. girls, i said “bedtime”!

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the countdown is on fed chair j. powell, will deliver the keynote speech at the virtual jackson home symposium in just two hours. but first we'll hear from philly fed president patrick harker, that's just moments away meantime restaurants are grappling with mask and vaccine mandates and how to lead the the needle at a time when they are already critically short of workers. plus a behind-the-scenes story from the early days of covid vaccine development. as companies scramble to form partnerships and put resources in place we have sneak peek of cnbc's new digital documentary "a race against covid-19." final hour of "squawk box" begins right now

good morning welcome to "squawk box" here on cnbc i'm melissa lee along with joe kernen becky and andrew are off today let's take a check on futures as we close out this week as we await jerome powell's speech at the jack son hole virtual symposium. nasdaq added about 39 points here treasury yields also stable as we await any sort of signal that a taper timeline could be in the coming on ten year 1.344%. we're watching ida in the gulf of mexico which is strengthening. okay >> fed chair j. powell will address the jackson hole virtual economic symposium at 10:00 a.m. eastern time we heard from many fed

presidents from around the country and steve liesman joins us now with another one. steve. hello, again >> good morning, joe yeah very excited to have all these folks on this morning. and really getting a great view on the economy as viewed from the federal reserve. we're joined now by patrick harker, just down the road from us in philadelphia but sometimes it feels like, patrick, far away i want to ask you -- i'll start with the same question that i just zd raphael bostic, where do you feel we are on the road to substantial further progress when it comes to both the inflation and the employment mandates and good morning, by the way. >> good morning, steve good to see you. wish we were together in jackson hole god willing we'll be able to do that next year i guess i'm one of the other guys joining you here today. so where are we on that road i think we're far along in terms of inflation

as my league raphael bostic said earlier, we have achieved that in a sense that we've been above 2% averaging 2% clearly we can talk more about that there's some transitory factors. there's also some evidence that they may not be so transitory and that's a risk i'm worried about. unemployment, i think we're moving briskly towards that goal, our goal but also people have to step back a little bit and look at this and put my engineering training hat to work think about what is the root cause of us not achieving our unemployment goal? it's not demand. i mean it's clearly not demand we see that in the jobs data what the problem is the supply problem. a supply of labor, a supply to our supply chains of goods and material that monetary policy cannot really affect. we can affect demands directly that channel is clear. not so clear, it's not possible

for us to really effect the supply constraints right now that's what's holding us back. not the lack of any accommodation from the fed >> you know, patrick you jumped the gun on me a little bit there because i was going ask a question, by in the introduce ducing something you said you spent a lot of time and focused a lot of the philly fed's resources on structural unemployment and actual programs and ideas of getting people back to work and focused on low-income americans and unemployment there i want to talk about that because we have 3 million people have left the workforce during this pandemic. we're 5.7 million, i believe, jobs short of where we were before the pandemic. when you think about this economy returning to normal and i'm using air quotes for people on the radio, what does that look like? do those 3 million and 5.7 million jobs come back or is it

something different? >> joe, let's go back before the pandemic think about where we were. we had very tight labor markets then so this isn't just a pandemic induced problem we have. this problem has been around with us for a while. it's a structural problem. there are many factors that are krishting to this. so we've got to deal with those fundamental factors and as you said the philly fed and my colleagues across the system really focus on some long term solutions we've talked about are they all going to come back? they will come back in different ways i think the job market is changing i think people are thinking about what the job is, whether they want to retire, all of that is changing right now. it's a work in progress and we have to see how that plays out over the next couple of months and years. >> let me come back to policy. there's a lot of talk about the idea of septembering the date the fed might announce are you ready to say september is your date to announce the taper and if so when would you

begin it >> so, i've been on record saying i support tapering sooner rather than later. with one big caveat. which is delta variant and possibly other variants that are hitting the economy. that said, i'm still supportive of moving the taper along. why? i don't think it's doing a whole lot right now. again, it's not a demand issue that's holding the economy back. it's a supply issue. so i think as we move -- if we can move toward tapering sooner rather than later, i would be very supportive of that. >> i was looking at delta or covid cases in your region and you have a really diverse region you have, i guess it was that upper tier of counties along the northern strip that look like they have intense covid there and then the rest of the parts

of the state especially the urban areas look like some of the better outcomes. how are you seeing covid manifest itself in the delta variant in the data that you're looking at in your region. >> both data and talking about business leaders, community leaders, it really does vary a lot by region as you said. less populated areas like you're saying the northern tier i say pennsylvania, those counties, they are less populated but they have significant challenges. so it really varies across our district that said, if i take the district as a whole,we're in good shape for a very simple reason relatively speaking good shape. we have high vaccination rates again, this comes down to the fact that this is a health crisis that's causing this problem. we need to get people vaccinated it's very simple the correlation is almost perfect. you have high vaccination rates, youve low covid rates

>> when we think about next year, i guess you see or have some concerns that inflation runs into next year. how do you think about interest rates and raising rates as a potential response to higher inflation? >> my view is we first should start the taper and then finish that taper before we consider raising rates. i would like to do a one-two we just remove the tapering process from the table and then look at the data as it evolves and see if it's appropriate to raise the fed funds. i'm not sure when that is. i tend to be in the camp of thinking that's late '22 or early '23 before we have liftoff of the fund rate, but we really need to see how the data plays out before we make that decision >> patrick, we obviously all follow the philly fed's manufacturing index. and i'm interested if you might

tell me about your contacts with businesses how are he they dealing with higher prices? what's their expectation for that in the months ahead how are they dealing with rising wages and labor shortage >> so, again if you think about before the pandemic people were really struggling to find skilled labor. that's gotten even worse right now. so they are bringing people off the sidelines, bringing people, trying to bring people back from retirement to work in manufacturing and other skilled positions. they are seeing clearly price pressure, clear price pressures. what i'm hearing is they are trying to not pass most of that along to the consumer. and the customer by seeing fortunately some productivity increases as well. they are passing some of that along that's inevitable. so far and people have been understanding, that is the

customers on the other end have been accepting those price increases. that won't last forever. at some point we need to get this under control that's the big question. how long will these supply chain disruptions go on? one of our contact is a national home builder they don't think this will be solved any time soon they think this is longer than we're guessing or they were guessing so that's a concern. >> i want to end very quickly, patrick, on what's a potentially good note here we've seen -- very simple math on this. we're doing the same gdp or higher than we were doing before the pandemic but doing it with fewer workers. that means productivity has in fact increased somewhere in the system is that a potential lasting outcome >> we'll see if it's lasting

we're doing that right now yeah we were stuck in a low growth, low productivity economy before the crisis hit this has accelerated -- firms who were thinking about automating and they are right on the cusp of that decision, this pushed them over the edge, right, to actually invest in the technology that will in the long run help the u.s. economy >> that's great. patrick harker, thank you so much for joining us. i'm going to get on train to philly one of these days pretty soon >> great to see. >> all right joe? back to you. >> i love the philly fed i love the philly cheesesteak. i love the philly cream cheese just a lot of -- patrick said a lot of stuff, steve. i'm seeing it. might not be so transitory might not be so transitory >> joe, that's the whole thing

that's the whole thing in a nutshell what happened is the fed folks started off saying it was transitory then they said it was transitory really long. they really pushed ahead their view on when they thought inflation was going to ease off and that brought forward -- all these people -- the people we're talking these last several days they are not guiding the hawks, not all of them pap lot of these guys were the biggest supporters we had of the qe we had and the move to zero interest rates. now they are saying my forecast moves my inflation concerns out and so i got bring in the idea of bringing back policy. >> i don't expect to hear such honesty from powell. maybe we will. that was from honest i also like we keep calling at any time keynote speech. there's all these other

speeches they are unbelievable. they are un. believable the anticipation slowly builds. >> you know, powell has a different version. >> "worldwide exchange" like this stuff not everyone would probably think it rises to the level of a key sneecht but it does because it's important and the markets with these addict, these free money addicts, so there's no way we can't cover it. most important thing probably -- but that is the way -- >> between now and 11:00 >> what's that okay very exciting. you wonder why >> i don't wonder why. >> how convinced they exist. peloton is currently "the biggest loser" the company revealing doj subpoenas, a probe morning u' wdetails next yoreatching "squawk box" on

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s&p up 11. shares of peloton are falling in pre-market training. they reported a wider than expected loss and paid digital subscription numbers were short. peloton also announced a cut to price its flagship bike by $400 and an sec filing this came morning peloton says it's been subpoenaed by the government for documents related to reporting of those injuries associated with its products and that the sec is looking into the related public disclosures a lot of people going back the trend is not, i don't think with peloton >> investigation is not very good eat >> probably not. >> cnbc has a new digital documentary that gives you a behind-the-scenes in the race to develop the covid vaccine. o plus i'll prices moving higher as tropical storm ida bears down on the gulf coast.

we got wti up by 2.25% rhtig now. we'll be right back.

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time now for a behind-the-scenes look at the race to come up with a vaccine that's the subject of our new cnbc digital documentary "a race

against covid-19" meg terrell joins us now with a sneak peek >> reporter: joe, it seems crazy to look back to those early days of 2020 when we weren't even sure we would need a vaccine for this emerging pathogen and then throughout last year unsure if the technology would be there to get us one in team we talked with leadership teams and researchers telling us the behind-the-scenes story of how they did it and told us about how to stay ahead of the virus and what's next for mrna take a look at this clip >> we're on a surveillance system, tracking every single variant that's emerging and we try to see if any of them escapes the protection of our vaccine. in the beginning or over time. so right now --

>> reporter: well seems like we had a mishap with our clip the rest of that shows moderna president talking about what mrna will be able to do over the next the ten years in addition to these vaccine, from flu vaccines to personal cancer medicines. guys this entire documentary available on cnbc.com right now. produced by cnbc digital wonderful hour long look if you got time this weekend and curious about the decisions these companies were making from a business standpoint as well as from a scientific standpoint joe? >> we want to go back to when it all started. watching the clips is not enough so i was going to say it was the culmination, the vaccines of years and years of hard work and research but just specifically on the vaccines, probably 10, 15 years i would think. if you just assume we sequence

the genome and all the things that we've done. so it wasn't really -- it happened quickly for a vaccine but it was a culmination of just years and years of good science and hard work. >> reporter: absolutely. we tend to think about these things oh, they started to work on these things in march of 2020 especially moderna, a company founded around mrna in 2010 and did concepts on a number of different vaccines they actually describe how they worked with the nih in the early days before it was clear we would need a vaccine for this pathogen, doing sort of a test round of their technology to see how quickly they could do it when we do need one for a pandemic level threat. test run turned out to be the pandemic global threat >> meg, the promise of technology, the break through of using a lipid vessel to deliver

this to the site where it needs to work, will that need to be the methodology for therapeutic uses as well it's so unstable, a little stretch of single stranded nest of mrna. half life is like minutes or seconds without the lipid vessel >> reporter: mrna breaks down quickly. lipid nanoparticles are expected to be the delivery vehicle for these things in the future and so it's really interesting actually to hear moderna talk about with all of the resources and money they now have from the covid vaccine where they are planning on investing that in other technologies also using lipid nanoparticles as a delivery system this is as important development scientifically to make drugs

possible not just for mrna vaccines >> got to keep mining those lipids that's why lipid mining is so important. that's actually not how we do it well, thanks keep those lipids coming thank you, meg we'll tune into the documentary. it's an exciting time that's for sure the documentary now available on cnbc.com coming up, economic data just moments away personal income and spending the numbers and market reaction next

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welcome back amazon said it will allow app developers to email users to make purchases outside of the app. apple said users must consent and have the right to opt put. policy change because apple settled a class action lawsuit apple's anti-trust battle with fortnight maker is separate and a judge's decision in that trial is expected later this year. we're just seconds away from personal income and spending data take a look at how futures are highs of the week. we're looking at a higher opening. s&p looking at about 11. nasdaq up by about 41 at the

open ten year note has been stable all morning at 1.34% ahead of this data and of course ahead of fed chair jerome powell's speech at 10:00 a.m. eastern time let's go to rick santelli who is standing by in chic to deliver us the numbers rick >> reporter: joe, this is exciting come on. personal income and spending how much we're spending and how much we're earning i'm interested in advance trade balance. minus 84.6 billion for july. reverses what was 91.2 billion in the rear view mirror. biggest trade deficit ever and if we look at home sale inventories month over month, they were up .6. a little light we need inventories high if we look at personal income expecting up .3. we end up with a number of 1.1 up 1.1 much, much better than expected and, of course, if you have to go back and see when the last

time we had a number this powerful was you're going back towards march of this year and if we look at what's going on with spending and that probably is the most important issue, it's close a little light up .3. expecting .4 everybody is magnifying what's going on with spending because we know there's income and savings but as covid variant going to slow down spending. that's important we gained it back on revision from last month. all right. if we look at real personal spending taking into account inflation it's down .1 of 1% exactly as expected. all right. now let's get to the "moneyball" these are some of the fed's most important and well looked at inflation data points. personal consumption, month over month is up .4 exactly as expected. .1 lighter than the .5 in the rear view mirror

year-over-year up 4.2. it's the hottest since november of 1990. since november of 1990 if we look at the core deflator month over month it's up over .3 and up .3 here that's backing away a bit from last month which was up .4. revised up .5. finally the last personal consumption expenditure core inflater year-over-year is up 3.6% the hottest since february of 1991 although there's an asterisk here because last month moved from 3.5 to 3.6. technically we're equal to last month. last month was the highest 1.34, up nine basis points down one basis point on the day. 1.37% is so far the high intraday yield on tens which matches exactly what those

double bottoms in 2016 july to be exact we've been talking about and i will continue to northern see the fed being too hawkish even thougf our nonvoters that steve had on yesterday that were great interviews of course we're going to the other way to say it's time to consider a taper melissa lee and joe, back to you. have a great weekend >> rick santelli, thank you. a little change on equity futures in response to that data let's bring in mike santoli into the conversation amazing how much we're putting stock into jerome powell no surprise. we're not expecting too much >> no. i guess not expecting too much we don't know specifically what to expect. there's tension building because

of the voices on the side of let's get started with the process of withdrawing seems like the data that we just got not a clinching argument on either side of the deflation debate we're still in that window where these typical of numbers are still not inconsistent with the idea that we had a transitory bulge in inflation of course make the other case as well and maybe that means the primary objective for chair powell today might be as it often is to buy a little more time and preserve some flexibility as we go into the next meeting and make whatever he says about the eminence of a tapes been negative numbers coming in weaker than expected you think that provides an ability to at least have notification sounded by the chairman >> interesting to hear patrick harker say inflation may not be

transitory, i think there was a loud, i don't want to say minority but part of market passports who bought that and i want seems to be bearing out in terms of their conference calls. we hear about price increases as well as higher commodity costs lasting through until the beginning of next year >> yes i mean, obviously, there's going to be a faction that's going to be hitting that note not necessarily -- what's interesting a year ago at jackson hole what j. powell did is try to convey that they were not going to be hyper sensitive to these increases in inflation. if can you imagine if you didn't do that last year, if you didn't say fed policy will be more toler rant of inflation, given what the markets have done since then there's been success in trying too detach the near term inflation numbers from fed policy and that's why i think there will be a lot of talk about, remember taper is not

tightening you don't want to send a signal to the market that just because you're pulling back on bond purchases, it will be raising rates soon i think that's the same set of issues we're dealing with. the source of the inflation, a lot of it anyway coming from these spli disruptions not as if fed policy plays on either side of that equation i mean it's not a demand problem so we're not trying to stoke demand on the other hand if you tighten a little bit here or get less loose it doesn't solve it. >> thank you now let's get to america's restaurant grappling with vaccine mandates, we have more with kate >> reporter: good morning. new york city restaurants didn't have a choice. mayor de blasio's program mandates workers and patrons be vaccinated for indoor settings

>> it's exacerbating the situation, you know. and then in addition to all that you're dealing with the surge of the delta variant which also creates its own complexities we're getting hit a bit from every where. >> reporter: in austin, he said he didn't feel it was necessary to mandate the vaccine as 95% of its workforce got the shot current shortage of workers didn't factor in for those not vaccinated there are consequences >> if you do come down with covid a break through case even though you're vaccinated, we pay you for your time off of work. however, if you're not vaccinated then we don't offer that >> recent data shows 65% of

restaurant workers surveyed said in this environment we were in favor of keeping mask mandates in place but obviously very tough environment for both operators and workers. >> what about larger restaurant chains how are they dealing with this >> many have remainedcy this mostly are franchised. up to franchisees to make the decision on what they want to do with mandates. mcdonald's pushing back to return to office date in u.s. and for u.s. corporate employees you have to be fully vaccinated if you want to work in person. earlier this week chipotle said the company was in active talks about potentially mandating a vaccine. a decision was going to come soon on that but they wanted to seek more feedback from workers. they had been encouraging in getting the shot >> kate, thank you kate rogers. coming up. news out of china overnight, regulators out with some rules that would limit algorithm

limits and check out the shares of the retailer gap, up sharply the company's earnings new estimate raised full year guidance. that's cool. powering over times square a lot of people out there are really interested in stocks. yeah we'll be right back. the live better u program basically just provides the answer to the question: what if? with live better u, my 'what ifs' were erased. ♪ ♪

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welcome back to "squawk box" taking a look at futures right now we firmed up bathe s&p 500 looking at 14. nasdaq higher by 53. this came is a big move we've been watching. check out shares of support.com. ticker sprt. you may not have heard of it yesterday it closed at 477 million market gap this market pre-market it's up 150% on significant volume in act, it's already traded about 77% of its 30 day average volume for a normal trading day justin pre-market at this point.

it is name that's been increasingly popular on message boards short interest, no surprise. 62% of shares outstanding according to fact set. so we're looking at a huge squeeze here in the pre-market an interesting one to keep an eye on today >> it is smaller >> it was small until the surge. >> still pretty small. >> yeah. >> we made that clear, i think >> we could almost do that, i think. >> but we didn't talk about it until after the surge. >> the no. >> oh, to any -- >> $200 million stock. news out of china overnight including a report that beijing is working on a new or some new rules that could ban certain companies from going public in the u.s. eunice eun joins us with the latest three times is the charm, eunice good to see you.

>> reporter: joe, yeah, "wall street journal". "wall street journal" is reporting that china is thinking about unveiling a new regulation that could make it much more difficult for internet companies to seek a listing in the united states so the stock market regulator is reportedly looking at these rules that would target companies that have a lot of consumer data that beijing considers sensitive and target companies that are looking to list using corporate structure known as the variable interest entity or the vie which is a corporate structure that a lot of chinese companies have used over decades, such as alibaba or ten cent or didi in order to skirt some regulations here and attract foreign. so that story is also quoting officials from the china securities regulation, regulatory commission as saying

that pharmaceutical companies are considered less sensitive. but, of course, authorities are still very sensitive about anything that could potentially disrupt social stability or national security and so that would normally mean internet, telecommunications as well as education. separately china has issued draft guidelines to regulate algorithms used by isp to make recommendations. under these regulations the companies such as s-- turn off recommendations. also they wouldn't be able to promote excessive spend. misinformation and then the companies need to make sure that they hold what

the regulations call mainstream values and positive energy so, all of this, and also the service providers have to register their algorithms with the regulators within ten days once these regulations go into effect we still don't know when that's going to be. the public feedback window is until september 26th but i think at the end of the day what the government says is they want to make sure that they are protecting user data and privacy but still a lot of questions about, about beijing's controls and what it means for these companies because it will make it much more difficult and expensive for these companies to comply with these regulations. guys >> if xi jinping ever liked the gains or the interest on american investors that obviously was not the priority

i don't know when you could think that it's safe to enter anything similar to any of these companies. i don't know where is the all clear. you would never know >> right that's the reason why there's all this, these question marks i mean i think that there are definitely folks here that believe that what we're seeing in terms of the tightening of the regulations is good for several different sectors. that it does promote a healthier environment for certain sectors. as you rightly pointed out, there's still appears to be a lot of, you know, not a whole lot of clarity about the motivations behind these campaigns. >> go for -- >> i don't feel i'm missing out. >> ted knight.

the name of his purity video sharing. chinese video sharing website. i didn't think of anything else. thank you, eunice. thank you. you know, a week to work on her made -- >> very little progress. >> glacial progress. glacial. >> you got three now >> i'll critic coming up -- >> i'll consider it. >> the countdown is on to fed chair j. powell's big speech set for 10:00 a.m. eastern time. we'll talk about what the market wants to hear. box will be right back

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in a little more than an hour's time we're going to hear from fed chair jay powell. markets will be looking for clues about the taper time line

and the central bank's view on inflation. here's what atlanta fed president raphael bostic and philly fed president patrick harper said earlier in the show. >> our view would be let's start the taper and let's do it quickly. let's not have this linger i think that trying to get this done as quickly as possible will be the best approach, and i'm not really expecting it to upset markets in any significant way >> there are some transitory factors, but there's also some evidence that they may not be so transitory, and that's a risk that i'm worried about >> let's bring in jim paulson, chief investment strategist at the luthhold group priya, i'll start with you in your view has there been an actual shift in the tone of the t taper time line? that's a lot of alliteration

has there been a shift in your view and if so, should the markets take that in a negative way or in a positive way? >> i think risk assets should take that in a positive way. i would arguethere has been a shift. a few months ago the market was looking for the fed -- for chair powell to outline the entire taper time frame at this meeting. i think what we heard in the last couple of months is that there is no urgency for the fed to start the tapering, and they're trying very hard to disentangle tapering from tightening they're trying to say that even though they're likely to taper by the end of the year, and that's the message we hear from chair powell today, they are not in a rush to exit from accommodation. why i think that's positive for markets is i think markets are concerned about the economic outlook as much as the fed reaction function. i think chair powell has a delicate dance that he has to say that we're exiting, that the fed is exiting e. but with the timing, the pace, the plan, which is not going to be

disruptive, it's not going to result in a recession, they're not going to slow things down that fast. i think people are actually concerned with the economic outlook with the surge in the delta variant. >> i don't know whether i need to ask you, jim, i actually was referencing some of your previous comments to me about interest rates being not necessarily when they go up that it's bullish historically as long as it goes up sort of orderly. you said 3 or 4% it can be very bullish for financial assets do you think this is a positive that the fed is at least sort of telegraphing that they know they're supposed to have two mandates >> i think it is, joe. i think the market is -- would be fine if the fed here soon starts to taper. i think they've well discounted already, and they've prepared for it a lot of the markets adjusted already. small caps have been flat for

months cyclicals have rolled over commodity prices have rolled over i think what's interesting is i don't see the fed is not under a lot of pressure. we don't have surging bond yields pressuring the fed or surging break even rates or a collapse in the dollar or anything we don't have, you know, intense inflation fear at the moment but i think the market will do best if the fed actually starts to taper before, you know, they're forced to taper, if you will and the market can deal with the taper when these other conditions are somewhat docile, but if the fed truly waits until they're forced to taper because there's runaway interest rates or a collapse in the dollar, then the market's going to react much worse i think if we get a taper the next couple of months started, i think the market's going to react very positively to that because it sort of starts to show that the fed's concerned that they're going to start to top off inflation pressures and

ult ultimately, that will lead investors to think about elongated recovery rather than a short stint. >> at the beginning of the year you thought we might have a maybe 10 to 15% correction and back to new highs at the end of the year that hasn't happened have you changed your idea i mean, no one knows obviously but what's your thinking now >> we're long overdue for a correction, joe by the calendar. ultimately we're going to get one at some point. i'm starting to think maybe not right now. the normal conditions for correction to me just are not there. normally at this point in a recovery, the fed would have already started to tighten interest rates would be going up yields would be rising inflation fears would become more intense fears the fed's behind the curve would become moreintense you don't see that the bond market seems nonplus ds ab

nonplussed about it. break even rates are flat. you don't have a collapse in the dollar or anything creating pressure there's not a pressure on the stock market meanwhile, fundamental profits arefantastic valuations are coming down as a result because even though the stock market's rising, earnings are rising faster, so i think until there's some pressure, we probably don't get a correction, and it could come yet this year, but maybe it's looking more like next year. i think it will come after the fed tapers, after yield -- bond yields go up somewhat, maybe even above higher levels than what we saw earlier this year, and maybe it has to wait until after the final fiscal thrust, which we're still getting from the biden administration coming yet. so i wouldn't be shocked if we get a crash. i certainly don't know i'm starting to think maybe it's not in the cards. >> priya, you're global head of rates strategy, but if you get your rate strategy right, you can get your equity strategy

right. what do you think investors should be doing are from here on out with the speech coming up and now just a little over an hour >> sure, so i think, you know, fed chair powell's speech is extremely important, but the economic data might be even more important because i think the fed has been telegraphing well that they're about to start exiting. they don't feel that urgency is the economic data going to hold up. we're at a very interesting point. number one, the slowing in growth that we've seen is that deceleration from a very high level, or are we decelerating to a weaker growth trajectory our thought is that we should not have extrapolated from the high growth numbers that we had earlier this year, that growth is slowing, but it's slowing still well above potential, which will allow the economy to continue to grow it will allow the labor market to strengthen. i think the data market needs to support that piece the other issue on the data

front, is the labor market going through a structural shift and i think that's going to be very important to see when can the fed start to hike, how high can they hike? do we see people reenter the labor force? begin, these are things we're going to see over the next few months for the bond market to believe that the fed can exit, that the economy can handle that exit and sort of allow interest rates to rise. i would say the data almost more than the fed is going to be important, and also, on the fiscal front, do we actually see that 3.5 trillion bipartisan infrastructure plan. >> that was me -- >> that was not me >> mac, keep your opinions out of the -- that might have been me hey, do either of you -- and we got five seconds, will we see any job when the jobs number hits, the next one next week, will it show any weakness?

>> two second answer we've got a slight weakening but nothing sort of really in the labor recovery. >> jim, i don't know why you don't like that 3.5 trillion what do you think? any weakening in the job >> i think the numbers to me, the claim numbers, tell me we'll probably get another pretty decent jobs number. >> okay. great. thank you, both. thank you, both. >> melissa >> it's been a pleasure, and i mean it. "squawk on the street" is next good friday morning, welcome to "squawk on the street." i'm carl quintanilla with david faber and mike santoli cramer has the morning off fed chair powell speaks in an hour, plenty of corporate results, dell, gap, pell peloto. we will keep our eye