years. president biden is scheduled to speak today. look at what comes next for u.s. foreign policy. plus, assessing the damage from hurricane ida more than 1 million people on the gulf coast without power we will take you there live. it is tuesday, august 31st, 2021 "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc i'm becky quick with joe kernen. andrew is out today joe, good morning. >> good morning. good morning legitimately say, i have been practicing see you in september >> you are such a dad with dad jokes. >> yeah. >> did you get your haircut yesterday? did you get all of them cut?

>> i did someone said that song is not about going back to school it is about -- i don't know. someone you broke up with. it doesn't matter. the feeling i have is going back to school. >> everybody our kids start on thursday we are anxious around that with the school supplies. if you are watching u.s. equity futures at this hour, you will see more of the same of what we have seen for a very long time green arrows dow futures up 75 points s&p and nasdaq which is setting new records. s&p futures up 8.7 nasdaq up 34 both set new records yesterday that is seven of eight sessions they set new records if you are watching this, look at the summer of love. that is what it has been for anybody invested in stocks especially in the s&p. the last three months, one new closing high every week since june 7th for the s&p

that sounds like a lot 13 weeks in a row. a summer of love 12 new highs out of 21 trading sessions in august we still have today. we will see what happens futures off to a strong start. joe, if you are looking at it for the year 53 new highs for the s&p this year that is tied for the fourth record of all time when they have been measuring the index back to 1926 by the way, it is not september yet. we will see what the rest of the year brings. you will see treasury yields 10-year is 1.287%. you see indicated higher this morning. >> sell in may and go away >> or not. did you miss out this summer >> because it rhymes there is some precedent. it works 51% of the time >> not this year. u.s. military completed its withdrawal from afghanistan

ending the 20-year war u.s. major general chris donohue boarded the last plane in kabul. eamon javers has the latest. >> reporter: good morning, joe ending the war at 3:29 p.m. eastern time that was the picture of the general being the last boot on the ground as the last flight out of kabul yesterday left the airport in the capital city in the hands of the taliban joe, u.s. officials acknowledge there were americans who were not able to get out and left behind in afghanistan. antony blinken said there were under 200 americans who wanted to leave who remain in afghanistan. the u.s. has ususpended di diplomatic presence in kabul they transferred it to qatar

the u.s. will work to reopen the kabul airport for civilian traffic as soon as possible. the commitment to get our afghan allies out had no deadline that mission is going to be ongoing. how they get out is the trick. blinken explained what will happen next. >> we are working to identify ways to support americans and legal americans and supportive staff. we have no illusion this will be easy or rapid. this will be an entirely different phase from the evacuation that just concluded >> reporter: general mckenzie said in a briefing with reporters at the pentagon there was a logic why the united states decided to leave as there are some americans left behind here is what he said >> there's a lot of heartbreak associated with this departure

we did not get everybody out we wanted to get out. if we stayed another ten days, willie, we would not have gotten everybody out and still people diffi disappointed with us >> reporter: the calculation was force protection u.s. soldiers and afghan soldiers guarding the airport. the risk of more casualties overwhelmed the potential benefit of getting more americans out. they didn't think they could get to the americans anytime soon. the decision was made to proceed. the taliban has taken over the country. taliban officials speaking at the airport overnight. we will hear from the president at 1:30 this afternoon he will explain of what the united states achieved and failed to achieve in the war we lost and decision to withdrawal all american troops before the

september 11th anniversary joe. >> i was in new york i remember september 11th. the heroes that did pass away were barely born months old when it happened. they were. >> reporter: the marines killed this week. yeah amazing. >> toddlers. really incredible. 200 americans want to leave. there are some -- is there a bigger number? what would cause you to want to stay in afghanistan? i don't know family or business >> reporter: what blinken said yesterday, he think it s it is . they don't have a good handle on the number that want to leave. there is some mix of dual

nationals or family commitments and folks in afghanistan they don't want to leave a range of mixes of individual personal circumstances you know, they are saying there are american citizens who wanted to leave and they could not get to him you heard him talking about the overland routes out. you can imagine that journey for anybody holding an american passport >> the operation was winding down and there were individually we were going out and getting people or making sure they could get through? they were urged to call? there were 200 we were in the process of trying to get them to the airport? they could not come to the airport? it is just a couple of planes for 200 sdp. >> reporter: we don't know where they were. the united states was running helicopter missions in kabul and other locations to get americans

gathered at certain locations. they are running buses full of afghan nationals who allied with the united states and getting buses full of allies through the taliban check points at airport to get on to the american controlled base at that time they did have some evacuation capability that extended into the country. for whatever reason. it is a mix of individual reasons and locations and particularly logistical problems and maybe communication failures they were not able to get to the people the president will have to explain that and what will be done for them in the days and weeks to come as we move into what blinken described as a diplomatic phase of the relationship here. we won't have any diplomats on the ground to process these people they are saying the first step is get the airport open. it is interesting with general

mckenzie, he talked about demilitarizing before the forces on the ground. that is what you refer to as scuttling the ship you blow it up to make sure it is not any use to the enemy. he said they made it clear to not do that with any of the material that will help run the airport. fire trucks, front end loaders the equipment they need to operate. they left that in tact there is a perfectly functional airport with a lot of dead military hardware on the ground and functional airport if the taliban can staff it and get it up and running with foreign support to start operating the civilian flights maybe a chance to get the americans out of there it is a dicey situation. >> very odd relationship we have with the taliban enemy of my enemy relationship we will see whether they have interests that would modify

their past behavior in a lot of ways we will see the government will be a taliban controlled government we will see how they do with women and so many different grievances in the past it is hard to imagine they will be different hope springs eternal, i guess. >> reporter: i guess so. the past history in afghanistan is not encouraging >> do we have on the horizon capabilities -- will the taliban try to prevent it for becoming a haven for terrorists we will talk general later. >> reporter: our bases are a long way from that it uses drones traveling to and from afghanistan you don't have a lot of time over targets

it is more difficult to conduct any operations in afghanistan in terms of drones. >> tens of thousands of afghanis are complicit with the u.s we will hear anecdotally what happened there with the retribution and what is happening. we will report on this a lot i don't know how much will be good reporting reporting that makes you sick to your stomach thank you, eamon javers. >> you bet news alert ing south key korea passed a lao apple and alphabet to open the pay systems. experts say south korea's move to pave the way for laws in the united states and eu which is

under the process of review. in south korea, this is a strict law. companies failing to comply could be fined up to 3% of the revenue by the commission which is the media regulator for that country. 30% is generally what the app stores charge. 30% of revenue the question is will it be that lucrative in the future? not much of a bump apple down 10 cents. alphabet shares up zoom shares are falling sharply. this comes after the company reported earnings of $1.36 a share. that beat estimates by 20 cents. revenue beat the street. revenue growth dropped off from 191% in the prior quarter to 54% in the second quarter. the company's guidance calls for 31% growth in the current quarter. the figure of numbers with more people on, you get smaller growth we have this with online

shopping you see market reaction like this recently, too if you were looking at the online sales for walmart and target that brought stocks down as well i'm not sure why people think the road climbs to heaven forever. you see zoom shares down 11.5% the cfo kelly steckelberg will join us at 8:40 a.m. a china gaming stocks trades a day after the government said it would limit gaming to minors to three hours a week. are there gaming police monitoring this? we take you live to new orleans where the recovery and clean up efforts are under way after hurricane ida. "squawk box" will be right back. >> announcer: this cnbc program is sponsored by truist securities

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shares of chinese gaming companies bouncing back from session lows in overnight trading. trading on news that china is limiting gamers to three hours a week and three days a week for minors the move is designed to protect the mental and physical health and prevent overindulging on line gamer

i thought every user would be limited. you have to play in the hours. that is my understanding it is a brut force mechanism for making sure nobody is playing more than that >> let's say it is video games in general someone rat you out and they come to your door? i forget what communism is like. >> they have been loosening up for a long time. this is one of many moves the chinese government is taking to control the population >> we talk about intrusion no playing during the week whatsoever a week a day >> an hour a day >> and holidays. >> think if you really like to do that? that would be a problem. let's get a check on reddit and

wall street bets stock surging 40% yesterday. shares of supportsoft.com. retail investors focus attention on heavily shorted stock is up 350% in the past eight trading days up more than 1,500% for the year support.com sold short average stock has 5% of shares sold short you can understand how this happened let's get a check on the markets with the market reporter at the wall street journal and kevin is at riverfront investment group everything is working and in that sub group of everything working, are the meme stocks and that has been a feature this year, but it has staying power really >> it seems like it.

think back to january when everyone predicted gamestop and amc would tumble it is august and almost september. both holding on to 1,000% this year new stock yesterday and followed a similar playbook this movement has a lot of staying power. >> that is an indication of i'm not sure what. a tough market to bet against in any area of the market i wonder no one rings a bell how long does that continue? >> i mean, that's the big question it has been a tough market to bet against. i think that's because investors seem to have the insatiable appetite for jounk coins or stocks >> you didn't buy it, gunjan

there was one i had my eye on the way it looked. really nice one. how do you know? >> there are great ones out there. >> really good rocks kevin, one thing you point out is the dividend yield on the s&p versus the 10-year i get it if you can get the same yield on a stock or the same cash flow on a stock and it might go up, that is better than buying. what if rates do go up how long does that game work >> if rates go up, it will be a situation where, you know, i think the equities will do well as long as rates don't cross the 2% mark threshold. from that perspective, we have room for equities to run here. we have been looking for catalysts in the market. we see the catalysts as being the bed. stating lastweek they are

pushing liftoff back we are continuing to see earnings revisions go up over of the past couple weeks. earnings going up by $1.46 in 2022 estimates now are at $218 that is looking at a 10% year over year gain you know, things are looking up for equities at this point i believe we are on a one-way highway, so to speak, as long as the fed holds rates low. >> kevin, reopening, reclosing the covid narrative right now revolves around delta. you know, we saw zoom. they are not doing as well as they used to, but may be doing well again if we close again it is a tough calculus to make i don't know when everything

stops keying off the pandemic. i could see where eventually these variants might come and go and vaccines come and go we may actually get to a point where we are just dealing with it and we don't talk about it in terms of what happens to the stock market kevin? >> i think that is a possibility. at some point we have to move on we are not going to shutdown the economy again. from that standpoint, we have to think how we can move forward with the delta variant right now, although cases are rising in the u.s., we seem to be trying to keep businesses going and that's an important part that we're going to have to sustain going forward. now, obviously, the delta variant can cause a headwind for the markets in the coming months however, i think we're getting close to a point where this thing is going to peak and we'll be able to move forward. you know, in the next couple

months. >> gunjan, i don't know. we're talking delta. there are other variants we read about. nobody knows what the future looks like if we're at 100,000 hospitalizations again which is close to the peak, how do we know this could not happen any point in the future? in march, it will be two years remember, we were going to reopen for easter. remember that? that didn't happen sooner or later, we will have to say the world will have to somehow deal with covid without going to zero on cases >> investors have been speaking to the close issue with delta variant and it is close to the recovery i was going to the outdoor concert this weekend and i thought it would be canceled like other events over the past year i think it is a wild card. it is still something a lot of people are focused on. we saw the spreading variant

weighed on spending. we saw spending slow already it is a lot of things people are focused on >> who is playing? anyone i know? the u.s. open is weird enough. the head of it on friday and said no vaccine cards are necessary. within a couple hours, it was shocking that everybody can come the seats are open then after that, they said there will be vaccine cards. did you see the lines? how will that work at an event like the u.s. open i guess it is the same for a concert. you will not tell me who it was? grateful dead? something like that? okay never mind she's not going to tell me see you later. thanks >> thanks. >> i'll look it up i'll find out. >> i'm curious who was playing this weekend >> maybe more than one band.

>> probably. when we come back, shares of robinhood fell sharply yesterday. mostly on comments from the s.e.c. share also news from the competitor, too. we have details next. plus, check out crude oil prices as pipeline operations begin to come back online following hurricane ida. wti is down 1% to $68.55 energy strategist william croft will join us to weigh in "squawk box" will be right back.

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time now for the executive edge we're watching shares of paypal this morning the company is exploring ways to let users trade individual stocks after crypto trading last year the company hired rich hagen to

head the division of invest in paypal the ceo said the long-term vision may include financial services now you are getting a look at what that is >> that paypal story is part of the story behind robinhood's stock yesterday. stock closed lower by 7% after s.e.c. chair gary gensler told barrens that banning the practice of pay for order flow is, in his words, on the table that practice involves back end payments that brokerages receive for directing client trades. gensler said in his words, has inherent lconflict of interest it is the reason robinhood can provide zero commission trading. whether that gets any traction could make a huge difference for the business model

coming up, we take you live to new orleans and recovery and clean-up operations under way after hurricane ida ripped through louisiana. that's next. as we head to break, a look at the s&p 500 winners and losers >> announcer: executive edge is sponsored by at&t business our people and network will help keep you connected let's take care of business. ere. oh, we can help with that. okay, imagine this... your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown, your sales rep lisa has to send some files, asap! so basically i can pick the right plan for each employee... yeah i should've just led with that... with at&t business... you can pick the best plan for each employee and only pay for the features they need.

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good morning futures up 59 after more new highs yesterday. up 59 on the dow s&p indicated up 5 points. not a lot happening in the 10-year this morning move fwook whaback to what we talked about last week it is put on hold until next month which is tomorrow. >> that's right. millions are still without power this morning and it could be week before it is fully

restored frank holland is in new orleans with the aftermath of hurricane ida. >> reporter: good morning, g becky. new orleans without power this morning. everybody without the ability to turn on the air conditioning at the same time, 1 million people in the state of louisiana in the same situation. also dealing with the damage from hurricane ida you see the facade knocked off the building down power lines and trees around the city. panic and desperation building police responding to break-ins at stores. the governor ordering the national guard to ride along with local officers to increase safety and security. people also trying to buy as much ice, cold water and food as they can find because the ceo of the local utility said there is no clear timetable to restore power. we spoke to a number of people who survived hurricane katrina

and evacuated from katrina hurricane ida doesn't compare to the aftermath. you see the building behind me they say this is minor, but they are worried about the days ahead. >> there's no lights there's no phones working. as it prolongs, you will run out of food. you stockpile for two weeks. you will run out of water. it will go on and on >> then what happens >> then it's time to go. that's the sad reality we did that last time and we did not come back for over a year. >> reporter: gasoline is hard to find colonial pipeline which carries half of the fuel on the east coast temporarily halted because of ida gas prices have been rising, but still remain below the national average. gasbuddy.com said the storm should not have a significant impact on prices, but other concerns without people fueling

up cars or generators. >> and on top of everything the storm has thrown at them, how are people managing covid safety on top of the outages? >> reporter: huge concern. people are worried in general they can't have air conditioning in hotels and worried about the circulation. you have to keep in mind the state has a large covid outbreak which is described as severe you see a map of it. new orleans right at the center of the red area. that's where people don't have power. about 2,700 covid cases in the state tand are dealing with the fourth outbreak. people are out and about trying to find food, gas and water. a lot of social distancing with the delta variant. back to you. >> on top of that, entergy, the energy company there, they called this a catastrophic failure of the system. it is not going to be up any time soon? >> reporter: based on the ceo

yesterday, it doesn't appear to be up anytime soon word of mouth is out about a week others worry it is weeks people are trying to find enough gas to get out of here to live with relatives or relocate >> frank, thank you. for a look at the storm and how it impacted the energy markets, let's bring in helima croft. helima, the surprising thing is to see oil prices actually drop down 1% today. not much reaction and maybe because this isn't expected to belong lasting when it comes to energy production. >> i think that is right, becky. yes, we had nearly all the gulf of mexico production offline gulf of mexico production is not substantial of u.s. production as it was during hurricane katrina. that is not the supply base for

the u.s. production. that production is expected to come back. it is a bigger story for gasoline the refinery outages and the concern the refineries could be offline for several weeks. we will be watching what happens in terms of the reopening of the refineries that impacts gas prices. >> storm, obviously, a big deal. maybe some of the worst damage has been missed. we don't know everything at this point. there are factors with the energy prices. opec and the meeting this week what happens and will they go ahead with the 400,000 additional barrels a day prod production >> becky, in july, we had an expectation to bring barrels back then a 17-day delay as they discussed issues over production benc benchmarks it is our expectation they will continue on the path of gra gradually adding barrels back to the market some are expressing concern of

covid cases in countries like china. i believe the group will continue with the gradual production increase plan they will say we meet everyo month. if the market gets soft, we have the ability to be flexible president biden asked opec to put more barrels on the market they will stick with the cautious plan. >> this is not just opec, but opec plus meaning opec plus russia when president biden asks to increase production, what does that mean? are they eager to please or thinking now we've goott you? >> president trump was putting a lot of pressure on opec. key opec countries to increase production and when we put some sanctions on iran to basically take barrels off during the covid crisis he was really very active in managing opec. the question is when president biden's team comes out and says

we want more barrels, is that a hard ask or done for more political reasons? >> you mean this sounds like a soft request done for political face >> there was some discussion it was more for thedomestic c consumption as opposed to a hard request from countries like saudi arabia the administration said they have very strong climate credential credentials. they are focused on climate change asking opec for more barrels is not consistent with the efforts to achieve net zero. it is not the same type of pressure that president trump applied to opec. >> helima, you are not only an energy maven, but an expert on geopoliticals. how does afghanistan play into this >> i think afghanistan is an interesting story with the

energy transition. you think about afghanistan and what it has for resources. they have an even doppler radarment endowment of mineral and cobalt it is important for the transition mineral production is expected to rise. the question is will the taliban be able to exploit that resource and will the countries like china really look to partner with the taliban to have control over the value canehain >> how will we read the signs on this when will we know it is a more concerning sign? >> the chinese foreign minister met with the taliban in july conversations is this china's effort to not only have security with the population, but help the taliban with infrastructure and bring that lithium to the market we have to see how involved

china will be in allowing the taliban to exploit the resource and what is the response to the international community if the taliban seeks to develop that res resource the taliban is under international sanctions. is this something the west wants to encourage >> helima, always good to see you. talk to you soon. >> thank you coming up, raytheon is buying one of the most popular flight tracking web sites. details next. don't miss the first on cnbc interview with zoom cfo kelly stecelberg you can watch us anytime on the cnbc app we're coming right back. my retirement plan with voya keeps me moving forward... even after paying for this. love you, sweetheart they guide me with achievable steps that give me confidence. this is my granddaughter...she's cute like her grandpa.

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after a hot summer for the real estate market, rises cases are slowing down demand in some sectors in the industry. our next guest says office space is still in demand and other hot areas of the market. our next guest says, and hot areas in the market right now. let's bring in rmr group president and ceo. fascinating to see, adam when you say it covers the g gamut, you're not kidding. some things are good, some things are not good.

the best thing that's happened in your business is industrial real estate. warehouses, people ordering things whatever you can think of. that's really hot. right? >> yes, absolutely and thanks for having me on the show, joe. you're absolutely right. rmr, we have a pretty broad scope of what's go ing on in commercial real estate we have about 2,100 properties, principalliy focused on north america mostly in the united states you're absolutely right. the best performing asset class in commercial real estate during the pandemic is absolutely industrial that being said, other sectors have fared okay. market family has done okay. i would argue that office has done actually quite well, a tale of two cities with office. a lot of people talking about

office but then seeing people sign new leases, things are actually quite strong we have more activity in the first seven, eight months of 2021 than we did in the comparable period of 2019. obviously the tougher sector, retail, hospitality, senior living some sectors are doing quite well and some are struggling. >> in terms of office, everybody who was coming back, who came back, is staying, but everybody who planned to come back is not come ing back at the time they planned to come back long-term leases, does that affect that? you're already recovering, weren't you? is that put on hold? >> yeah. you're absolutely right, joe everyone who had already dom back or was in the middle of coming back, they stayed and they did not send their workers home everybody who tended to be larger companies, larger tenants

who had not yet come back, they tended to extend their return to office mandates. we have not seen sort of a change in behavior from our tenants. they're still signing relativel long leases. we've not seen people substantially change their office design to, let's say, adhere to a hybrid workforce where the folks will be coming in one, two, three days a week i think what's going on, there's a lot of tenants that are basically sitting back and they say they have a lot of open questions and they want to get their workers back in the office safely they want to see how it plays out. then they want to start making longer term decisions. that's what we saw in 2000 in 2000, the pandemic was raging, leasing activity really slowed down. people just sort of froze in space, where they were as you got into 21, there's a

lot of leasing activity. and people said, well, we have to wait until we see what happens and then make longer term decisions until then we have to have a place for our workers to go so we're going to sign new leases. >> even in travel. i think of sinesta international hotel, like conventions and things at the sinesta. i worry about that travel centers of america. and that is up 218% in the last couple of years. i love those 270 of them. everybody is driving everywhere. it's totally bifurcated even travel. >> absolutely. you're hitting it right on the head what we're see ing in hotels, yes. the summer has been pretty good for hotels for leisure travel. the industry worries the most about how is business travel going to come back, especially in the fall. two months ago when the dealt va

variant wasn't as prevalent as it is today. on travel centers, you're absolutely right the company has done really well during the pandemic, it had its best performance in over a decade during the pandemic. we're off to a very strong 2021. going to beat 2020 in terms of our results. you're right few volumes are up people are traveling lot more trucks on the road. people are moving goods. you have to service the trucks you know, people are going to the restaurants at the travel centers. they've actually never been as busy as they are today so, it is sort of the world of have and have-nots. >> to try to figure out senior living during a pandemic, i don't want to -- that was very difficult, obviously, for you to manage through that's probably improving at

this point at least. that's the best we can say about it you've got a lot of them. >> yeah, senior living space i put in the same bucket as hotels it really got hit hard for different reasons. >> yep. >> senior living space obviously is sort of ground zero for what happened during the pandemic. >> exactly. >> obviously spent a lot of energy on personal protective equipment and work ing with you staff, making sure your staff and residents were safe. good news now is that we're definitely climbing back out of where we were. things are getting better. occupancy is improving the other thing that's good about senior living is we do have some really good tail winds. you know, we have an aging demographic. we do have very little supply growth, meaning senior living spaces is the lowest it's been in years those are two things that bode well for senior living you're absolutely right. we have to climb out of where we are right now in terms of the aftermath of the pandemic.

>> we're just going to cancel some other guests in different areas. you have that one-stop shopping. we'll have you on and find out what every sector of the economy is doing thanks for your time today appreciate it, adam. >> thanks for having me. >> good luck. >> thank you. still to come this morning, zoom shares plunging that stock is now set to go negative on the year if it stays at these levels. zoom cfo will join us later in the show to talk about the company's next move. first, ckhan economy founder will be joining us and the debate around remote verse in-person learning you're watching "squawk box" and this is cnbc

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our planet offers countless sources of energy. but it's only human to find the ones that could power a better future. gearing up for the final day of august train ing with many asking can anything stand in the way of this rally? new orleans and louisiana picking up the pieces in the wake of hurricane ida. more than a million people still without power. we are live on the ground with an update. the united states completing its withdrawal from the afghanistan hours ahead of deadline day

president biden scheduled to speak later today. the latest from washington minutes away as the second hour of "squawk box" begins right now. good morning and welcome back to "squawk box. i'm joe kernin with becky quick. andrew is off today. you can see in the red, nasdaq faring the worst, about 20 point s so far nasdaq, s&p and no new highs in terms of the ten-year yield at least. we're stuck down below 1.3 at this point bitcoin 47 and change.

nfts, i don't know where they're at. >> probably a lot. lots of licwhich haliquidity anr everything following full fda approval for the vaccine last week, hoping the move spurs more americans to become vaccinated with schools opening across the country still no word on when the vaccine will be available to those under the age of 12. shares of zoom video did report better than expected profit and revenue for the latest quarter, sales topping $1 billion for the first time dramatic growth rates it saw when the pandemic first hit have slowed as people have already signed up for zoom those shares are down 11.5%. kelly steckelberg, ceo, will be

joining us in the next half hour of the show. settle ing with officials oe massive electric bills customers received after last february's severe winter storm. charges occurred during the storm went as high as $9,000 per meg with an watt hour more than 600 times the usual cost along with those headlines, three big themes covered for you this morning dom chu is watching the premarket moves as the s&p looks to wrap up its secht-month gains at record highs. eamon javers has the latest on the withdrawal from afghanistan. but we start with frank olland who has more on the damage that hurricane ida left behind. frank? >> reporter: there are growing safety concerns here in the city of new orleans about 5,000 national guard

troops have been activated to help support local officers and give them increased security as they respond to a number of break ins. incidents all around the city. we see national guard troops across the city. residents have spoken and expressed concern about their safety as well most stores and restaurants are closed public transit also suspended. number of people are stocking up on ice, water and nonperishable food in addition to the damage you see behind me, downed power lines, downed trees all around the city we spoke to a woman whose car was crushed from the bricks of this building. obviously, she said, she's upset about her car but is even more concerned about her family and her city. >> nobody know no other place than new orleans if you never went somewhere else. how can you violate us and our freedom and put us to where we're in a bad situation to

where we have to go other places and be humiliated by other people because we're going to their cities to live there can you not understand that? >> reporter: the question now is when will the power return a lot of people want to know that local utility is saying, in part, it will likely take days to restore communications and far longer to restore electricity. back over to you. >> a strong statement that makes it sound like it may not even be a week you could be talking weeks before many of these people get power back. >> reporter: the gist of the ceos comments, it's really not clear. this doesn't appear to be a days-long situation. a number of utility companies here, other companies hare comig here to support. as you can see, the city is right now in the dark. >> frank, thank you.

u.s. withdrawal from afghanistan after a 20-year war. we spoke to eamon in the 6:00 a.m. hour. ea eamon, good morning again. >> reporter: good morning again to you, joe. the war ended yesterday and now begins an uncertain period of aftermath as secretary of state antony blinken said yesterday, as many as 200 americans do remain in afghanistan who want to get out, even though the last u.s. forces departed at 3:29 p.m. yesterday he said that number is under 200 americans who want to leave. he also said that the u.s. has now suspended its diplomatic presence in kabul as all have left kabul flights returning to kabul in the days and weeks to come that's important for any

evacuations that might need to happen he said that the commitment to get afghan allies out of afghanistan has no deadline. he said that the taliban have comm committed to allow afghans to leave the country if they so choose we will see whether the taliban holds to that piece of the bargain here taliban officials taking control of that airport shortly after united states military forces left striking something of a philosophical tone here in terms of the lessons learned of this 20-year war. here is what he said. >> this moment also demands reflection the war in afghanistan was a 20-year endeavor we must learn its lechs and allow those lessons to shape how we think about fundamental questions of national security and foreign policy future diplomats, policymakers, military leaders, service members. we owe that to the american

peo people. >> joe, we'll hear from the president of the united states 1:30 p.m. east coast time to talk about the decision to withdraw all forces from afghanistan and what this war means now that it's in the pages of american history. joe? >> a lot of time for that. eamon, so many things we could go into. we'll have general mark kimmetropolitan on, try to find something positive to what he's going to say to us he's very concerned about what -- do we have a relationship with the taliban at this point, eamon? it's been 20 years do you think there's been an actual softening of any of the things that we think about and in terms of how they feel about america or the united states at this point

i know they're cheering and they're sort of, you know, rubbing it in our face but then again, they were kind of allied with us to an extent and cooperate ing to an extent is there any way that people that may have aided us get an easier go of it over there now because maybe the feelings aren't as raw for the taliban? what do you think? >> reporter: what you hope, joe, is that there's not a cycle of violence and retribution on the part of the taliban who, as you say, reference ing those picturs of the fighters firing tracers into the air, celebrating the u.s. defeat in afghanistan yesterday. now does that victory give momentum and take the shape of some sort of coherent nation building project of their own there or does it turn into this cycle of violence and retribution that we've seen time and time again throughout afghan history? that's one major concern in terms of the u.s.

relationship with the taliban, it struck me that it's been shockingly effective over the past couple of days. there was this awkward -- call it an alliance or tactical cooperation between the two sides to deconflict at that airport, allow the taliban to have security around the airport, to keep some of the crowds off the airfield itself so the united states could operate aircraft there you know, that was a tactical decision by both sides in a weird way they both shared the same goal. they both wanted the united states out the taliban wanted us out, the united states wanted to go they were able to cooperate to some extent to get that airport free we do know from the general at centcom yesterday that one of the last calls made by the u.s. general on the ground was to his taliban military counterpart, telling him that the last flight was now leaving and leaving the airport then open for the taliban. whether that will continue, i

don't know. >> the initial rationale for the invasion 20 years ago was the terrorist haven. so now we'll have this general on who says even if the taliban are against other terrorist groups like isis-k supposedly they've been fighting this war even if they are against them, he says they don't have the capability to do anything about it i'm wondering if the taliban wants to govern and wants a stable government there, do they have the ability to prevent it from becoming a terrorist haven, or will it once again -- >> reporter: maybe not. >> maybe not so we are back -- >> reporter: maybe not there's not a strong history of central government in afghanistan. central governments out of kabul have struggled to retain control over the rest of the country it's a factionalized, tribal place with allegiances going back centuries that are complicated and confusing to outside powers who come in and try to impose order on it, and

have done so time and again unsuccessfully central government is not a thing that afghanistan has in its history. so the idea that the taliban will suddenly be able to come over to kabul, take power and run that entire country on an effective basis seems unlikely it seems like you'll see this factional fighting continuing to some degree, with maybe a bit of a pause here, because the afghan people are exhausted but the history is not a good one. >> every terrorist in the world will know that's a great place to operate from. >> reporter: it's going to be a fai failed state and to put an economic lens on it, because this is cnbc, right? the biggest piece of the economy pumping in there, or large portion of the economy pumping in was u.s. and western money going in for military support, but also for civilian support. all of that is now removed from the economy. and what we've taken out of the economy in terms of human

capital is 100,000 afghans you have to presume they were the people running the businesses and government there. all of that is in free fall now. how they generate any economic growth and provide for their people and avoid, you know, really horrific outcomes economically, including famine, that's going to be a challenge for the taliban. into the winter. >> famine is on the table unfortunately. thanks got to run get back to, as you say, stocks, bonds, things like that, s&p. >> in spite of all those headlines, s&p is on track for the seventh straight winning month in a row dom chu has a look at what's been moving in the premarket dom, this is a market that doesn't seem to be deterred by anything at this point. >> no. it's a shaken off market completely gechlt opolitical concerns coming out of afghanistan, the middle east and around the world. you talk about the growth concerns not just out of there, as eamon pointed out, but out of

our country as well. we're looking at the jobs number this coming friday to see if there's any kind of catalyst to get things moving one way or the other. in the meantime, the path of least resistance, becky, has been to the upside we're counting on those people who are keeping track, the 32nd r record close of the year for the nasdaq composite what's been interesting is the leadership in the stock market we've been talking a lot right now, these days, about the value trade, the covid recovery trade, the value trade coming back. take a look at this chart. if you look at the etf that tracks many of the large cap growth companies, iwf there, versus the value index, you've seen a big gap the value index is outperforming for quite a long while here during the spring and early summer all of a sudden now you've seen value stocks re-emerge it's underperformers and growth stocks emerge as the ones who are outperforming. if that's the case and mega cap

technology leads the way, is that the new signal, the uptrend? the debate here, of course, is whether that can continue. it's been a strong momentum trade for a while now. as for some of the individual issues causing at least some trader anxiety right now, there's a little bit of disruption there yesterday on cnbc we pointed out this notion that paypal was looking to get into stock trading. could there be a competitor with regard to free trading or access to trading also fsc chairman saying payment flow as a business model could be on the table for elimination, helping to drive some of the trade yesterday. robinhood markets down 2% of the premarket. paypal up fractionally in the pretrade mean stock of the week, the season so for is support.com, a maker of customer service software it was a very small, microcap company to start the year, now

up 6% on the day it's up roughly 1500% on the period latest target of the short seller, kind of attack form. game stop the original mean stocks here seeing up 2% in the trade. so many different theme playing out. net/net, bottom line, there is a record high setting market just about every other day these days again, i don't know what derails it at this point. >> 12 of 21 trading days for the month of august. you are talking about an incredible upward bias again, these things kind of always end the same way, right moeb has any idea what could end it until it happens. >> so i've spoken to a lot of traders and investors as we do on a daily basis here, becky you're talking to the same ones out there. many of the ones i speak to say it will be the fed that could be the real catalyst as to whether

there's a downturn in this market, if there's a misstep from the federal reserve it doesn't appear that's happening yet. there's more calls for tapering of bond purchases, removal of the emergency stimulus measures being put in by the fed during the virus pandemic if that is the case, you wonder whether or not the fed has any real way of exiting its emergency policies without causing some kind of market anx angst. the economic fundamentals seem to be moving at least the right direction right now. the jobs report will be key on friday. >> and jay powell has done a very good job of walking that fine line today. we'll see. dom, thank you. >> i think support.com is now 800 illion the lowest of the year less than 50 million hold me, becky i'm scared. >> hard to do from here. >> are we really talking about this i guess we have to

49 million i don't think we ever talked about a 49 million stock not anymore. >> yeah. coming up, what could drive mar markets in september lpg espe-udendp ma heinrestaurants recover but the industry is still a million jobs short to prepandemic levels an update on the restaurant industry "squawk box" is coming right back

welcome back, everybody. futures this morning are higher again, even after the dow and s&p -- i should say the s&p and nasdaq both set new highs yesterday. it's seven out of eight sessions for those two indexes we've now seen new highs joining us now is the chief investment officer of sanhill global adviser and a cnbc contributor. brenda, we were talking about this i'm not sure if you heard this the s&p, the nasdaq, the markets seem almost unstoppable at this point with the number of new highs we've seen this has been a real summer of love the question always turns to, what ends it what's your guess? >> yeah. i agree. certainly the august that no one predicted. i think everyone was expecting they would see a little more volatility than we've seen thus

far. strong corporate is driving a lot of this. what could end it, i agree with your earlier comments about the fed could end it i think as terrible as it is to say, i think the delta variant and the slight economic weakness that it's likely to cause -- and we'll find out more about what happened when the august economic data comes out. that will likely cause the fed not to move faster than expected but i think if the fed were to move faster than expected and talking about raising interest rates sooner than expected that that could cause more market volatility but otherwise, i think we can't ignore how strong the fundamentals have been earnings for the last two quarters have been phenomenal. we've seen positive earnings revisions have grown at a faster pace than the stock market so valuation has actually come down in many areas so, i think, you know, it really is true fundamentals that's driving the market that gives us some comfort even

though it does seem to march higher day by day. there have been a couple of weeks where we have seen a little more volatility it's really been met by buying activity there aren't a lot of other places to invest right now. >> not just how low interest rates are but the amount of liquidity out there. there's so much money on the sidelines that every time there's the slightest pullback, it seems there's a lot of money rushing in i can't remember the last time we got a 5% pullback in this market if you're waiting for the pullback before you jump in, you've got a very long wait. how long do you think that continues? >> certainly it won't last forever. geopolitical concerns and china implementing more regulations. it could ultimately cause a 5%

pull back. as you said a lot of things on the sidelines, waiting to pullback it's hard to say what that thing is going to be i have to think that if we look out over the next month or so, it could potential ly be fed communication. i think that would be my guess if i had to guess. >> anybody looking for concerns could look to things like the august manufacturing index that came out yesterday it fell to 9 from 27.3 and the six-month outlook got slashed in half some of the comments were interesting. chemicals manufacturing saying we are having increased difficulty in procurement of raw goods. ot others saying this is the worst market i've seen since 1975 when it comes to machine manufacturing. others saying they can't find people to work and those employees that they do have are getting pushed far too hard. all those general concerns out

there. is that something that you think catches up or is this transitory, like the fed thinks >> i think some of this is transitory, especially because the pricing, unfortunately, haven't really felt a lot of relief as we've seen courts shut down in china more recently. so, you know, i think that will work itself out eventually it continues to be disruptive. ongoing labor shortages starting next month we don't have the supplement to unemployment a lot of kids will also be back in school. there will be more reason for people to go back to work. that being said, i think if it does one thing, it makes the fed stay on hold a little bit longer to the extent that the market likes that message, and we'll see what happens with the job report on friday if it is softer, i don't think it will necessarily be a bad thing for the market because it will view that as a message to

the fed that, hey, you know don't get ahead of yourself here, and the fact that we continue to have ongoing liquidity will be a positive for financial markets. >> let's talk quickly about one new idea you have. you recently added a position in coin base. why is that? >> yeah. coin base, you know like it or not, coin base has done a tremendous job of growing their user base and we think they will continue to be in a place that institutions will ultimately go as they continue to become more active in this market. really have a first mover advantage. with the high-quality platform that is safe i think that is setting the company up to continue to grow

we see this all the time in individuals who have a tremendous amount of wealth in crypto kurpsy. so coin base is really the only place that we can refer them to go to help implement some kind of plan. >> what about the erroneous notification that coin base sent to 100,000 of its users over the weekend? >> yeah, not without some issue. if we look in the grand scheme of things, it continues to be the best option for many people. >> brenda, thanks for your time today. >> my pleasure thank you. the national restaurant association out with its latest state of the industry report kate rogers has a preview of what's coming up what can you tell us >> good morning. restaurants having a good first half of the year delta could impact that re recovery, coming up when "squawk box" returns

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the national restaurant association is out with its latest state of the industry report kate rogers joins us now with some of the key findings

good morning, kate. >> hi, escrow. projected to reach $789 billion up 20% since 2020. thanks to pent-up consumer demand and the availability of vaccines this is still well below prepandemic levels labor remains a major hurdle for operators. 70% of operators say recruiting employees is their top challenge since june, highest level ever recorded in 20 years of this survey in context, in january that number was 8%. overall eating and drinking establishments, 1 million jobs are 8% below prepandemic levels. restaurants are seeing higher prices, many prices have risen about 8% positive for business and 2021 has been strong so far, the delta variant is threatening the recovery six in ten adults surveyed said they've changed dining habits due to delta 19% said they've stopped going to restaurants all together. you can see the impact of rising covid cases in the dining sector

in particular. biggest year-to-date winners are those that operate in more restrictive settings like c chipotle, papa john's as to those who rely heavily on indoor dining joe, back over to you. >> kate, thank you all bets are off all ready to reopen, go back to the office and it's all -- i don't know can you say anything dech actively about the delta variant and then the next variant? >> lot of unknowns for sure. >> thank you. >> thanks. >> see you later. >> anxiety still to come this morning, the latest on the fallout from hurricane ida. millions remain without power this morning we'll talk about that and the impact on the insurance industry that's next. plus from new learning environments to rying covid cases. we'll talk about getting kids back to school with chaun academy founder salman man chan

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tonight, president biden's address to t

ida, once again, spotlighting the flood insurance industry fema announced they would be rolling out a new flood insurance program in -- two months ago as of tomorrow it will be next

month, in october. updating the weather patterns. for more on this, deputy associate administrator for federal insurance mitigation as well as senior executive of the national flood insurance program. david, we talked about this so many times in the past on what a private insurance company, if it used real actuarial assumptions what it would have to charge to insure the outer banks or coastal islands. everybody wants to live in these places, next to the ocean. they're beautiful. they're great. are you able to charge a going rate to provide insurance there yet? >> good morning, joe the answer is we're not an insurance company. we're a government program 22,500 communities across the country. we are moving to a program that will be risk based, actuarially

sound and charge a rate base d n the individual characteristics of a property verse a property being in a zone. so, we're moving to strengthen the program. but we have one big problem that faces us that insurance companies don't have to face and that's concentration of risk insures about 97% of the residential flood insurance market and so when an event like ida hits and the neighborhood is destroyed, we insure all the properties on that neighborhood. that concentration of risk is really what is one of the hurdles that the program has to try to come over. >> david, do people who live in a normal house pay an exponen tichlt ally rate as compared to someone who has a -- a $3 or $4

million beach house, is that being subsidized by the average person that has to change, too, right >> it doesn't include replacement cost as one of the factors. over time, inadvertently, there's an inequity that's then built into our pricing methodology. and that is lower valued homes are paying more than they should higher value homes are paying less than they should. and so the new methodology that we're moving towards, 2.0, equity and action will correct that it's one of the tenets of why we changed our program, to make our rates fair and equitable, whether your property is on the coast or more inland. >> the recent experience in ida, the journal has an interesting piece. new orleans has done a lot down

there. they didn't do everything but they toughened up the levees the flood protection fortress was not breached this time once again the electric grid was -- did go down florida has hardened their electric grid. it's very expensive but there are ways of doing it so hospitals stay open. there's ways that power can stay on do you think that that makes sense, that we spend money there instead of these other long-term programs we're seeing in some of the bills? >> well, no question that there's been a great deal of investment in louisiana, not just by the federal government but by the state and locally and we do need to continue to work hard to make our communities more resilient we've recently announced funding that

will help new orleans and the state of louisiana we do need to do more to harden our facilities so that we can be more resilient and when events like this happen, we are able to bounce back quicker and not have as great a negative economic impact in the community that events like this provide. >> california prioritized banishing fossil fuels over hardening the grid and clearing the deadwood out of a lot of areas. as a result, they're paying the price. pg & e will spend 20 billion to bury 10,000 miles. the last sentence, just wonder what you think of this, david. government can't command the ti tides, but it can protect people from them. i think a lot of our efforts right now are about commanding the tides, aren't they

>> there's no question that future conditions, the climate is definitely making our events more intense and more severe so we need to take that into consideration. state and local governments, help them with the hardening of their facility, taking mitigation actions that will save lives, reduce damage to property and reduce disaster suffering. that's our purpose. >> you know the journal. they quoted the most recent finding on climate change saying there's a low confidence in long-term trends in the frequency of all category tropical cyclones. even the ipc was unable to say d definitively that's the journal rupert murdoch has said it

david, thank you. >> thank you. >> it's not me it's the journal fema, i have some property i'm going to have to get some insurance because it's on an island it's on an island and thank you for doing that i don't think you really charge me what it's worth and i'm willing to pay what it's worth. >> we're going to be moving there in the future over the next number of years and get closer to what you should be paying for it. >> i'm ready i've taken it on i don't want a handout let's do it. otherwise it's not solvent thank you for everything you do. you get high praise from a lot of people out there about how to reform this thing. coming up, khan academy sal khan will join us to discuss new environment of learning for kids watch us live on the go with the cnbc app and assist your clients.

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most part will be back in the classroom. what do you think? >> it's going to be a tough back to school. good thing is, we are getting to the light at the end of the tunnel most schools are back in school physically, a big deal from the social/emotional point of view before the pandemic you had a scenario in the class of 30 kids there's a whole bell curve of distribution of the students in the classroom and teachers in a traditional model had to pick where they had to teach to they typically teach at the 22%, which means it's too fast for 22% of the kids and too fast for 28% of the kids. a lot of kids have fallen further behind so teachers having a bigger problem. parents having a bigger problem with that wider spread of 30 kids, how does a teacher address the needs of all of them this is where we've talked about the gold standard is to differentiate, try to meet every student where they are unless teachers are supported in

some ways it's very hard for them to meet all 30 students where they are, if they're in very different places. that's what we try to address by helping teachers with tools, with software so all the students can learn at their own time and pace. the students can look at that data in real time and do more focused interventions. >> how many schools are you working with directly at this point? >> we have over a quarter million teachers around the world who use khan academy two-thirds of them are in the united states. 120 million registered users everything is not for profit funded primaryily with philanthropy and we've seen those numbers grow when the pandemic hit we saw learning time went from 30 minutes per day to 90 million learning minutes a day as we get into the post-pandemic period and they go to school physically, this is where the biggest use of learning will come into play. >> such an interesting concept

it's a little hard for me to get my head around anyone with kids has looked that the and said please let them get back into the classroom. it's hard for most kids to learn online and most kids think i don't want to do this anymore how do you convince them and teachers that the adaptation of the blend between the two does work >> i'll be the first to say, sometimes i'm viewed as a poster child for online learning. if i had to pick between in-person, physical learning with an amazing teacher versus the fanciest distance learning, i would pick the in-person learning for myself, my children or frankly for anyone's children the good thing is that it doesn't have to be a tradeoff. you can leverage the best of both worlds. there's an irony here, positive irony, that if you use technology the right way, it can unlock human-to-human connection t traditional classrooms, the ones you and i grew up with, you have to be very passive, put your finger on your lips and pretend like you're paying attention the classrooms we're seeing now, when they use technology well,

the students are able to be engaged, actively learning, the teacher is able to get real time information and do focus inter interventions with the students who need it. maybe they're blocked at an academic concept or need a gentle nudge because they're demotivated in some way. the teacher can pair them up into groups. you work on that together or student a can tutor student b. all of a sudden you're leveraging the fact that human beings are together physically as opposed to just lecturing at them the same way you could do online or through a video. >> still do that with lectures even now, pretend i'm paying atte attention. sal, when you start looking at the problems, the real gap comes with the communities where there isn't the -- there aren't the resources, there aren't the teachers there aren't the same level of commitment that maybe you see in the wealthier school districts it seems to me online can even

potentially, while the goal is to try to shrink that gap, it can even increase it more because some places where there are incredibly poor school districts just don't have access to online computer capabilities. the kids may not have a connection at home how do we go about tackling that part of the problem? >> if there's one silver lining of the pandemic, it's that there's more attention on this issue of a gentle divide and sometimes we call the homeward gap now, the digital divide at home who has the technology at home this has been an issue prepandemic. we've seen it where the teacher wants to use a tool on khan academy. if there's one student in that classroom out of 30 that are using it, they don't feel it's equitable to use it as homework in some way, shape or form there's 60 something billion plus to try to close the digital divide i think that will get us awfully close. i will say this target was sometimes used in the beginning of the pandemic to not do some form of learning the reality is that the top 50%, no matter what the school district does, they'll figure

out a way to get their students to keep learning if you don't have the online, and about -- at least half of the bottom 50% do have suitable tools, then you're actual ly going to leave them behind i'm a big believer in use whatever tools you can to reach as many folks and it makes this problem smaller, how do you then reach the students who don't have digital access? not just the country but the world, government, corporations, philanthropists have never been more activated behind closing it. >> we talked throughout the pandemic you've made changes, new programs, new ways that people are using the khan academy what's been the biggest change, adaptation how are things different than, let's say, two years ago at this time >> a bunch of things happened over the course of the pandemic. one, when we saw that volume spike and we realized how much people were leaning on us, we realized we needed to create new content to support people even better we did a big push in science

a lot of people know us for math and video instruction. we have khan academy kids for ages 3 through 8, reading, writing, social/emotional learning not for profit over 50 studies on what it does. a new initiative is school house.world, free tutoring for students, live tutoring over z zoom, a small group, leveraging volunteership. we have amazing young people not just young people. we have retired professors, professionals who are willing to tutor. anyone listening could be a tutor or could get tutored what's neat is most people are tutoring because they want to get give back to other folks and we have a whole process of vetting them universities are getting intrigued by the students who are able to tutor well university of chicago, m.i.t they're looking at the schoolhouse.world tutors and saying those are the types of students we want to admit.

>> that's great. sal, thank you always good checking in with you, especially as we're about to start in-person school again. thanks for the update. talk to you soon. >> thanks for having me. coming up, the u.s. completing its withdrawal from afghanistan. want to talk more about ending the country's longest war with general mark kimmet. that is straight ahead plus, zoom shares have plus, zoom shares have fallen and they want it all personalized. report with ibm, you can do both. businesses like insurers can automate it processes across clouds. so agents can spend more time on customer needs. and whatever comes your way, you've got it covered. saving time and improving customer service, that's why so many businesses work, with ibm. in 2016, i was working at the amazon warehouse when my brother passed away.

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good morning wall street's lucky number seven. turning in its seventh straight month of gain. hurricane idena. as the damage is surveyed and cleanup begins, we'll bring you a live report from the ground to talk about the lessons from katrina 16 years ago. plus the most anticipated white collar trial in recent memory jury selection set to begin in the case against saranos founder elizabeth holmes second hour of "squawk box" begins right now.

>> i'm -- >> good morning. >> ah! >> good morning and welcome back to "squawk box" in times square, i'm joe kernin along with becky quick. andrew is off today. futures are down but not out we'll see what happens by the end of the session hitting a new high today on the nasdaq after also hitting a new high yesterday fresh, all-time new high. >> at the end of the day, we'll see. >> where it's never been before. you don't know what's going to happen going forward. >> right. >> i always like that. the outlook going forward as opposed to outlook going backward. >> backward?

>> yeah. >> 1.9 treasury yields. >> to infinity and beyond. let's get you caught up on the other stories investors will be talking about today south korea passing a law, requiring google and apple to open their app stores to alternative payment systems. the bill is the first of its kind in the world, possibly cutting into the lucrative it could pave the way for similar laws in the united states and european, which are both in the middle of scrutinizing practices again the criminal fraud case against saranos founder elizabeth holmes officially gets under way with jury selection she faces a dozen felony counts in a trial that is expected to last about three months.

scott cohn will bring us more on this story in a few minutes. aerospace is buying flight aware. the terms weren't disclosed. >> individual names to watch today, zoom shares are under pressure after the company told inv investors growth rates have slowed for the last quarter but maybe not surprisingly, as the pandemic, the positive virp the company found itself not quite as positive. it's come a long way and that has something to do with it. support.com shares jumping again after closing up 38% yesterday. the stock tripled. it has 1500% gains and now an $8

million stock. i'm going to keep talking about it heavily shorted stocks that have been targeted by investors policy the latest mean stock that someone found had a high short interest as a result it's gone from under $2 a share up to where it's $36. under $2 a share, less than a $50 million market cap we would never talk about. now to the gulf coast. louisiana is just beginning to survey the damage by hurricane ida. frank holland joins us again from new orleans good morning, frank. >> reporter: good morning to you again, joe the city of new orleans woke up without power again today and air conditioning, with temperatures forecast to be right around 90 degrees. in louisiana, 1 million people without power this morning, and at the same time, many people are dealing with damage like you see here behind me

this building just destroyed by the category 4 storm power lines down, trees down as well all around the city and also panic and desperation is building here police responding to a number of break-ins and other incidents around the city. governor ordering the national guard to ride along with local officers to increase their safety and security. 5,000 guard troops are activated in new orleans people are also trying to buy as much ice, cold water and nonperishable food as they can find the local utility has said there's no clear timetable to restore the power. we spoke with a number of people who say the immediate aftermath of ida in any way does not compare to the horror of hurricane katrina, but they are getting worried about the days ahead. >> there's no lights there's no -- none of our phones are working. it's just -- as it prolongs you're going to run out of food. even though you stocked up you're going to run out of water. it's just going to continue going on and on and on and on.

>> reporter: then what happens >> it's time to go we did that the last time and we didn't come back for over a year. >> reporter: gasoline is also be becoming increasingly hard to find around the city and around this region. colonial pipeline, which carries half on the east coast, temporarily halted deliveries. they're now trying to resume those deliveries they still remain below the national average, gas prices, but that's not the concern people trying to find gas to fuel their generators and cars many people are hoping to try to get out of town and stay somewhere else until this problem is resolved. joe and becky, back over to you. >> thanks. before you go, when does the local utility give any indication of when the power will be restored or is it like when our power is out and i keep calling and no one answers and it's a recording? they just say we're working on it is that the same situation there's no way of knowing?

>> reporter: well, the utility issued a statement the company sent out a tweet we'll share a graphic right there. they say it will take days to assess the situation there's no timetable for when these repairs could be made. one possibly encouraging sign, a number of outside utility companies driving into this area when we made our way in. we saw utility trucks lined up along streets, trying to assess the situation. we're see ing it right here, it will take days to assess the extent of the damage, the power grid just increase ing the anxiety a worry here people trying to figure out, should they evacuate or stay and hope things will be resolved >> very good frank, thanks for your reporting down there not a great-looking shot behind you but we appreciate it thanks. let's take a closer look at the storm's impact on energy production in the region, especially a surprise coming from the colonial pipeline

brian sullivan has more on that. hi, bri. >> yeah. frank referenced it. good morning, becky, as well by the way, there's some music to louie armstrong used to work in that building that collapsed behind frank an anyway, 2.3 million barrels a day of refining offline. that's about 13, 14% of u.s. capacity also 1.7 million barrels a day of oil production offline. most of that, of course, coming from the gulf of mexico, offshore, 288 rigs do remain evacuated. workers could begin to trickle back out soon to assess damage and try to restart those all right. refinery begins to restart to joe's point, and frank, it's hard to know couple of problems to restarting a refinery one, you need people to do it. there are reports that people simply can't get to the refineries because the roads are flooded, closed, trees down, whatever it might be number two, still no power in

many areas some refinishries have massive backup generators. we'll see if that gets them going before the overall power rirns. it takes a lot of power to, well, create power one refinery owned by phillips 66 south of louisiana took in a bunch of water after a levee failed that one certainly could be a while before it comes back online about 266,000 barrels a day, i believe. the key to everything is getting the power back on. frank alluded to it. joe, you talked about it entergy, ticker etr, main power pro provider, not sure when that may be took massive power hits due to high winds there are reports 9,000 miles of power lines were knocked out as i've noted in the past, there is no state that relies more on electric power verse, say, natural gas, propane or whatever, than louisiana the power goes out they get hit disproportionately hard from a gas perspective, frank touched on it.

the colonial pipeline, trying to get its main line from houston through louisiana to north carolina back up late last night was the last real update. colonial, if you're out there, hit us up. let us know if you're back up and running as well. by the way, guys, epa issued a waiver overnight, louisiana and mississippi can now sell any winter blend gasoline. it's just a different type of gas. they normally can't sell it now. epa giving you a break right now. you can sell it, to help ease any gas crunch, guys that's kind of where we stand. i mean, it's a bad situation from an energy perspective the key is how long it goes on. >> brian, the winter grade, has that already been refined and is not sitting there, or is that easier to get out the door faster >> some of it is started to be refined literally weeks ago. because now is kind of the time, right when they -- the summer

driving season, becky, which i also call summer, when that ends -- i can't stand that term. now is when they start to roll over in anticipation, to your point, people getting off the roads and going back to school a slightly different blend the epa normally doesn't like them to sell it or burn it in the summer for emissions reasons or other things. they're giving them the break there. there are other pipelines. by the way, the other big story, guys, are the ports. i think there's 12 ports between, i don't know, pascagoula and mississippi that are partially shut down or shut down because of debris a story in bloomberg which i find just amazing. the wind was so strong it blew the mississippi river to flow backwards. >> i saw that. >> inland. >> really, really rare doesn't happen very often. and the ports also, the head of the port of new orleans was here yesterday. the ports have the additional

issues of the stuff they're trying to send back up river and the stuff they're trying to export huge amount. there are three ports in louisiana that i think are responsible for 55 to 70% of the grain exports in this country. that's something you have to keep an eye on, too. >> i've been to one in my commodity training days in gonzalez, louisiana, one of the biggest dry bolt loading ports in the united states great people down there. great food i met a lot of friends that was a different lifetime, long time ago. i hope everyone is doing well. that he the latest on energy i'm hosting the "half time report" and will probably have an update then. >> real quick question, brian. i've been surprised to see energy prices -- oil prices i should say, wti, come down is that because of the opec meeting we're expecting this week >> yeah. thanks for reminding me. i probably should have had that. it's early -- it's not early i'm usually up a lot earlier, but my mind is tired the meeting tomorrow there was a reuters report this

morning that opec's august production increased to 29.63, not to be specific, million barrels a day, the highest since april 2020 that increase that opec announced at the last meeting when they fought for three weeks at the uae, they finally got that deal done, becky. about 2,000 barrels a day now. not a lot but more barrels than there were demand has slowed down for a while from chien wra and europe because of new covid outbreaks as well. so you've got that there's enough inventory that we can manage although, let's be clear oil prices are up a couple of bucks from where they were two weeks ago. we did not see a big jump after katrina either as well and also because, guys, a couple million people are staying at home for a few days so the demand for gasoline and oil products goes down in certain regions. opec meeting tomorrow. thanks for reminding me. >> brian, great to see you

we'll be watching "half time report" later on today thanks for the update. >> thanks. all right. when we come back, the story on the front cover of newspapers across the country this morning. u.s. departing afghanistan officially ending america's longest war. we'll talk about the geopolitical landscape with retired u.s. army brigadier mark k k kimmit that's next. what happens when we welcome change? we can transform our workforce overnight out of convenience, or necessity. we can explore uncharted waters, and not only make new discoveries, but get there faster, with better outcomes. with app, cloud and anywhere workspace solutions,

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gig-speed broadband network. and just doubled the capacity here. how do things look on your end? -perfect! because we're building a better network every single day. welcome back to "squawk box," everybody. the futures have turned negative not a big drop but dow 23 points below fair value, nasdaq down by 9. s&p down by 3. s&p and nasdaq both setting record highs today, 12 out of 27 sessions for the month of august today is the last tradeing day of august. we'll see what happens as we get closer to the morning bell few analysts of note citi is predicting 40% upside for petroleum, bullish on the

new carbon capture business. the stock off by about three cents. >> virgin galactic rebound ing, working to bring space travel to the masses can you read more about both those stocks and get more of your morning analyst calls by going to cnbc pro. the u.s. completing its withdrawal from afg and ending the country's longest war. for a look at the geopolitical r risks, welcome retired u.s. army brigadier general mark kimmit who served in the george w. bush administration, first as deputy assistant secretary for middle east policy and then as assistant secretary of state thanks for joining us. i won't ask if you're related to bob because i seeyou are, ambassador kimmit from germany i'm glad your parents got married. that's all i'm going to say. very amazing, you two gentlemen, distinguished, long career thanks for joining us today, general. appreciate it. >> thank you. >> i referenced some of your

talking points earlier i'm looking for something to be happy about or positive about, or optimistic about. do you have anything for me? >> yeah, joe about the only thing i can say is that we did evacuate about 100,000 afghans from kabul over the last few days. the military, as always, did a brilliant job doing that aside from that, like you, it's pretty hard to find a silver lining in what we've seen over the last couple of weeks. >> the original rationale to try to keep it out of a haven for some really bad elements, there's a very high likelihood that that could -- that that will rear its ugly head again. is that your view, that this will become a haven now for terrorists that will want to attack the united states, maybe here >> well, joe, the taliban, not exactly the best negotiating

partners, have sworn they're going to keep al qaeda, isis-k and other terrorist groups in check. i don't think that's going to happen i think that they neither have the willingness nor the ability to control the return of terrorist groups into afghanistan. afghanistan is going to return to what it was, a safe haven and sanctuary for terrorism. it will be a place where they try to set up training camps, try to re-establish critical mass to start another terrorist campaign against the united states, western europe and other western countries. if we do run a fairly robust counterterrorism program, primarily over the -the-horizon attacks, i think we can mitigate that we certainly will not be able to eliminate that threat from afghanistan going forward. >> in terms of the reputational damage to the united states, in

terms of we defeated america, we drove them out, is will that recruit terrorists, embolden our enemies, like china and iran >> absolutely. in the case of terrorism, they're all having parties right now, terrorist groups around the world. they're taking pictures of the kabul airport, the last aircraft going out. and they're going to put that on their recruiting posters and every recruiting station they've got around the world china is celebrating for another reason they now have access to what is estimated to be a couple of trillion dollars worth of mineral deposits and rare earth materials that they can extract from afghanistan we tried to do that. we work ed with corrupt official to do that, and the taliban wouldn't provide a secure environment to allow us to do that those are not problems for the chinese. the chinese will teach the taliban about corruption, and the taliban will provide the

security so china will get what it needs. the taliban will get the money that it needs. >> we heard that the administration will not rest even from here on out in trying to help our afghan allies continue to leave afghanistan. do you think we can be successful with no presence there, in continuing to get our friends out? >> well, i certainly hope so secretary blinken says that will be a diplomatic effort i don't think it will be diplomacy. i think it will be hostage negotiations it's clear that the taliban have a lot of demands that they want. they want to get back into the international financial system they want to get international recognition. they have a lot of wants what they have are american hostages and siv holders that

have worked for us the more we secede to their demands, the more we'll get back to us. but that's not diplomacy that's hostage negotiations. >> in the op-ed pages of the journal, worst case scenario in terms of what he thinks this means for us versus all of our enemies, not even -- some of our frenemies it's not help ing. >> look, we've gone over reputational challenges in the past we overcame vietnam. we overcame iraq at the end day, most of that antagonism is, in fact, jealousy. america still remains the strong est country in the world everybody that talks about america in decline, i don't know what that's all about. the free world needs us candidly

more than we need the free world. it's great to have allyies, but every one of our allies demand us to be an ally so, we'll get through this your military, our military demonstrated over the last couple of weeks how effective and compassionate an organization it is our diplomacy was okay we'll get through this i wouldn't be spending a lot of time wringing my hands. >> general, we also heard -- let's not look back on mistakes that were made not now. let's do it later. so when we do look later, and i know you're retired, but i'm sure you still talk to -- you have a lot of contacts and friends still in the military. what do you think happened in t terms of closing bagram down whose advice was that? everybody seems to be saying the point of evidence says it's the general. the generals say the president overrode them. what actually happened

that seems like it was a pretty big mistake. you don't want to go into that >> i'll go into it, escrow i think it's a red herring argument i do business in afghanistan i did business in afghanistan. i know how distant it is between kabul and bagram it would have been very difficult for those trying to flee the talibanto either get to bagram or get inside of it. we didn't have problems with ramp space at kabul airport. we could get as many planes in and out as we wanted to. i'm not certain that the problem would have been solved at all by using bagram airfield. it might have made things worse because it would have caused us to have a location very, very far away from kabul that many of the people that we wanted to get out couldn't get out because of the distances involved so, i don't think bagram would have changed what happened on the ground but if people want to use that

as an excuse, i understand that. >> ask the general, what would you have done differently? >> two things. i would have started the evacuation much, much earlier, so it wouldn't have been this debacle we saw on the ground over the past couple of weeks. i also would have probably try ed to get more people inside the airport and sort them out inside the airport in a containment area still would have been a security risk, but at least we would not have had to put up with the taliban as a negotiating partner i would have extended the mission so that august 31st was not this sacred date that we had to stop. again, we were negotiating with terrorists we were not having diplomatic talks with the taliban there's no reason in the world why the taliban should not have acceded to our requests so we could extend this so we would not have had the sights we saw outside the airport.

i would have fully understood we needed to push our perimeter out even further so we were checking people well before they went through -- they were able to get through taliban checkpoints as we saw with the suicide bomber a lot of that is monday morning quarterbacking as you said, this is the first chapter of the book. all i'm saying is that those of us that served in the military were aingered and saddened by te mess we've seen over the last couple of weeks. >> very good general, thank you for joining us today. >> thank you. >> have your brother on at some point. thanks, general. coming up, the criminal case against thenos founder elizabeth holmes posh virtual receptionist.

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news from johnson & johnson this morning meg tirrell joins us on the squawk newsline with more. >> johnson & johnson has been working on a hiv vaccine using the same technology as the kmpd vaccine. sad news this morning, a study

in africa has shown it does not work, it was 25% of preventing hiv infection in the study in africa they didn't see any safety issues and will continue testing this in a different trial, in different folks, in different geographic areas they have some hope this might work but this is just another disappointment in a long line of disappointments for trial vacc vaccines for hiv, which is incredibly difficult this vaccine used that same viral vector it uses for covid but the antigen it delivers is so much more complex because this virus has been so difficult to tackle. a lot of folks remarking how lucky we got with covid that it was a virus that was easier to tackle with, with vaccines. >> behind it, meg, it makes me

think that maybe the hiv is very -- can very quickly kmutate around what the the antigen used was and, therefore, is not therefore conserved. what they used for the antigen do you think that's probably the v virus just gets right around the vaccine, i would think. >> i would guess i don't know exactly what the issue was, but that's been the problem with hiv in general. it's such a wiley virus. they use the mosaic of antigens. it's much, much different virus. we're lucky that for this pandemic we were able to develop these vaccines. >> all right, meg. thank you. >> thanks.

the most anticipated white collar trial in years gets under way today with the jury selection in the criminal fraud case against theranos founder elizabeth holmes scott cohn joins us now with more here we go. >> here we go indeed, becky. elizabeth holmes faces several counts for her role in the company that she said would change the world, theranos, with an array of blood tests using a tiny sample of blood from a finger prediction. trouble is technology didn't work and now holmes faces 20 years in prison. now we know, though, how she may defend herself court documents newly unsealed appear to attempt to place the blame on sonny balwani, former chief operating officer of theranos and holmes'

ex-boyfriend she said he abused her for a decade, monitoring calls, emails there was physical abuse, restr restricting her sleep and insisting any success achieved was because of him she couldn't possibly commit a crime, the defense goes, while under his spell. balwani faces his own criminal trial and calls the allegations deeply offensive and personally devastating. the thing is, some legal experts say this could work. >> what it allowed the defendant to do is point at trial to the empty chair to tell the jury that's the real bad guy here it was all him, and have the jury find some sympathy with that story and acquit elizabeth holmes of course, at his trial when you have a different jury trying the case, he could do the same thing to her. >> reporter: one other thing this does is increases the likelihood that elizabeth holmes takes the stand hers in her own defense and to make the

allegations stick. the defense says that is likely. of course, we won't see that until much later on. this trial expected to last into december guys >> scott, i was reading up about that over the last couple of days people say, look, it's one thing to be able to use that defense to say this decision at this point was completely influenced by the situation, but to be able to say that over a number of years and years with every decision, with so many people who were around at that point becomes a little more complicated. i guess it gets down to the jury. >> reporter: it's extremely complicated. jury selection, which starts today, is particularly crucial for both the prosecution and the defense, because she'll have to make the argument, again, if she goes this route -- we don't know that this is exactly what she'll do she'll have to make the argument that the things that she said, that she did on her own in representations to investors were all the result of sunny

balwani. it's a tough thing to do with potentially a sophisticated jury from silicon valley over the course of a very long trial. >> are people allowed in the courtroom? will reporters be there with covid or is this a different situation, too >> reporter: there are precautions for covid but people are being allowed into the courtroom. there will be an overflow room as well. we'll be able to witness this over the next 13 weeks. >> scott, time flies i don't know you've had, i don't know, five different states that have done business since this is all going on people believe d that the drop f blood that you could do this, we had five years of advances since then we still can't do that the cleveland clinic got taken in, and some of these high-profile board members all got -- what the hell happened where no one asked what's the technology behind this and why should we believe even a portion

of it was actually true? i don't get it. >> clearly, they did believe it, because people pumped $700 million into this company. as you said very smart people and very smart companies. >> no one asked how it worked? >> reporter: clearly they didn't ask the right questions. joe, one of the things that a lot of people think is on trial here is the whole culture of silicon valley, right? they say fake it till you make it there's no shortage of companies out here that have done well with that, raised a whole lot of money and finally did make it. theranos didn't have the goods, and they were also playing with people's lives that's what makes it a little bit different. and there's a lot of attention to this from the broader community in silicon valley, what is this going to say about that culture will it rein it in somewhat or will it let the venture

capitalists andprurentrepreneur run amuck >> thank you. when we come back, sthou korea passing a law that requires google and apple to open up stores to payment options. one that's forever wild but freedom means you don't have to choose just one adventure ♪ ♪ you get both. introducing the all-new 3-row jeep grand cherokee l jeep. there's only one.

welcome back so big news out of south korea josh lipton joins us. >> a new landmark bill here. specifically, this bill bans companies from acquiring develop ers to use their online payment systems when making in-app purchases. in order, developers can avoid paying commissions to the big app store operators directing users instead to pay with alternative systems. apple didn't immediately respond to request for comment a google spokesperson went in, saying that service fee helps to keep android free, giving developers tools and global platforms, builders and consumers around the world, how to comply with this law, google saying while containing a model supporting the high-quality app store and will share more in the coming weeks how much money are we talking about here sensor tower estimates consumers in south korea spent $4.6 billion, by their estimates,

google collected $1.4 billion in fees as for apple, $1.4 billion in the app store in 2020, a fee of up to 30%, earning the company, they say, about $414 million the risk is not the money here, but whether other countries can now propose and pass similar bills. this legislation, by the way, would become law once reviewed and signed by the president in south korea, whose party we should note, has been a vocal supporter of this bill back to you all. >> great josh, thanks now to hurricane ida with the timing of land fall on su sunday, it's hard not to compare the storm to katrina, which hit the gulf 16 years ago. steve liesman joins us with more on the economic data that's already being gathered to determine the impact of ida. a lot was reinforced, as pointed out in the journal

billions were spent to try to make it -- >> yeah. >> less vulnerable and, for the most part, i think it was successful, with certain exceptions, steve. >> yeah. knock on wood, joe that's really the key, that the le levees are holding that's the big difference with katrina. hurricane ida brought devastation to parts of louisiana and widespread outage to new orleans preliminary estimates are only having a modest impact on the national economy federal reserve and other agencies are able to monitor the economic impact of natural disasters like ida in near real-time, using new data sources. among the data sets they watch, those with poweroutage.us. some may not get their power back for weeks that deepens the impact the longer that goes there are some estimates the combination of disruptions to the oil and gas industry, power outages, property damage and rebuilding will reduce national gdp by 0.2%, assuming they don't last all that long

that will be far less than the long long-lasting impacts of katrina. hit to jobs will show up in the september jobs report. katrina was a big exception. the payrolls were two months an many experienced economic hardships for years, especially those that moved out of new orleans and didn't move back katrina hit at the dawn of a revolution in big data government officials now get real-time reports on jobs, credit card spending and industrial production. they combine that with maps from fema dave wilcox helped to develop this technology and gives the fed a good mechanism tore estimating the direct storm effects at a time when covid is being closely watched for its economic impact, especially in places like louisiana, understanding and assessing the storm's direct impacts could.

>> i can't believe it's been that long since the last one the grid needs to be hardened. that's number one. that would have made a big difference. >> yeah. >> but it's expensive. we have seen it done florida has done it, other places have done it. there's different ways of approaching how you harden infrastructure wouldn't it be great if we did have a lot of that in these bills? i don't know how much there is but that is definitely something we could get behind bipartisan-wise. >> i think we are behind it, joe. i think it's just a matter of complicating it with a lot of other stuff. imagine if there was a $500 billion bill on infrastructure sitting on the house speak er's desk right now. >> we can't stop the tides from rising but we can protect those from the rising tide that's the point. >> oh, i know what you're saying. >> harden the grid we have bad weather. we definitely have catastrophic weather events that have been

happening, go back to galveston. we need to do all we can to deal with those things. i don't know about prechting them. coming up, zoom cfo on slowing rate growth rates and what's next for her company. stay here. you're watching "squawk box. options? plans we can build on our own, or with help from a financial consultant? like schwab does. uhhh... could we adjust our plan... ...yeah, like if we buy a new house? mmmm... and our son just started working. oh! do you offer a complimentary retirement plan for him? as in free? just like schwab. schwab! look forward to planning with schwab.

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get your tv together with the best of live and on demand. introducing directv stream with no annual contract. welcome back, everybody. zoom shares falling after the company reported their second quarter earnings last night that beat expectations, but did show slowing growth as the country returns back to more in-person activities joining us now is zoom rfo kelly steckelberg, also a member of

the global council relatively sharply considering you beat expectations and the revenue guidance you gave for the third quarter was better than the street had been anticipating what do you think happened here? >> good morning. we had a very strong q2 as you noted, first billion dollar quarter and 50% year-over-year growth strength in our upmarket in the enterprises as evidenced by things like an upsell in the financial services company, which became our new largest customer and also over 2 million. what we're seeing, though, evidenced by the guidance, is headwinds in our map market, individual consumers and small businesses and as you say, they are now moving around the world. people are going on vacations again, they're going to happy hours in person. and as we came through the back half of q2, we started to see

additional churns there. and that's evidenced in our guidance for the rest of the year and that's what i think you're seeing in reaction to the stock. >> i think the big concern is the decline in growth and revenue coming from customers with 10 or fewer people. how big of your revenue does that make up how many of your customers kind of fall into that category >> yeah. so, in q2, that was approximately 36% of our revenue that was up significantly from prepandemic. that was at 20% our revenue. we're seeing headwinds here, we know that people have step ped back into their lives and we're here to stay it's a transition phase we're going through right now. people are enjoying being out in the world, which we, of course, love to see. and this is a segment of our business that has the most reactionary depending on what's happening with vaccine availability as well as pandemic flare-up around the world.

we've seen this in previous qua quarters as well. >> big companies have talked about how they're putting off plans to bring workers back, as we continue to watch the delta variant kind of roll through the country and cases climb. is that not the case with smaller companies where they feel like maybe they can control it with ten or fewer people? >> yeah. i think a lot of this is individual, and it's really small businesses that are, for example, maybe a studio that feels safe enough that they're able to welcome people back into their doors. as you say in the rooms, which is our conference solution, saw attach rates double from q1 to q2 as organizations prepare for that and continue to keep their employees safe, we continue to provide and are happy to support organizations, as work is becoming not a place any longer

but a space where all of us are joining from anywhere. >> how much of this do you think is competition coming from buy companies like cisco with web ex or microsoft with teams? >> we haven't seen real significant changes in the competitive environment. we have customers that love zoom due to ease of use and reliability and continuing to evolve from being a meetings company to a platform that includes things not only like zoom meetings, as we're doing here, but also zoom phone, zoom rooms. we recentlyannounced zoom events, which is on immersive all-in-one platform experience, as well as zoom apps we launched recently apps allowing you to bring third-party apps right into this experience as we continue to evolve and really become the place where knowledge workers and people around the globe can spend their day. >> 14% that's how much the stock is off right now.

that's a drop of almost $50. does that shock you? >> you know, it's very hard to predict always how a stock is going to react to guidance, and a forecast we are always at our company, we say we can't control the strock pr stock price but we can control our execution. that's what we're doing every single day, delivering happiness to our customers and our employees. >> thank you for your time today and look forward to talking to you again soon. >> thank you. >> thank you. when we come back, this morning's big market movers. stay tuned by the way, as we head to ta break, frootwear and retailer filed to go public and plans to list on the nasdaq under the ck symbol bird b-i b-i-r-d. we'll be right back.

i think you're going to like it here. umm, why is everyone... throwing things at me? look, as cfo it's my job to be ready for whatever's next. that's why i have my finance team, randomly hurl things at me. it's also why we use workday. it gives us insights, so we quickly pivot our strategy, people, planning, you name it. sorry, sir. i will aim straight at your next step. see that you do. would you like some coffee? workday. the finance, hr, and planning system for a changing world. ♪

welcome back to "squawk box. morning movers heading into the 9:00 hour. first of all earnings move of the day in designer brands shoe retailer formerly known at dsw. shares on the rise thanks to a better than expected report for earnings coming out where you better than expected earnings and profit thanks to a near 85% jump in

comparable shares. cowen analysts upgrading this stock to outperform rating thanks to large part to what they see improved demand for business jets as well as burgening industry for electronic vertical takeoff and landing aircraft up 2% in the pre-market pap look at some of the most popular ticker searches from yesterday's trading session. top five real movement today global star, big satellite communications provider down 16%. number one search ticker yesterday. ten-year note yield falls to number two on the pliatform and joe, as always, put the top five here. top ten on my twitter feed at the domino as well as the top 50 back to you. >> people arestill going placesr business, i guess.

joining us, alternative asset management at solis. i thought it might be mutually exclusive. an economist perspective is what we need. probably right focussing on things like is it transitory what's the labor reports going to be for the next -- for the next two reports all with covid as the backdrop, i guess? >> yeah. i mean, i think the big problem we have that i think a lot more people should have is that nobody really knows what transitory means is it a month? three months six months i don't think anything the fed's going to do over the next, call it, six months is going to explode the market, so to speak. i also think they run the risk of falling a bit behind the curve here if inflation settles in at a level above what they expect, and i think there's a greater probability of that than what they're currently anticipating. >> right you would put yourself in the camp that they are more likely

to be behind the curve on this than ahead of the curve? >> yeah. and also remember to some degree they're trying to be behind the curve. and i think there's a robust debate to be had around whether that's an admirable path to take or not, but i also think just the entire market, but the fed and entire market's general assumption they've got this is probably -- not as solid as a lot of people would expect, and i think there's a lot more risks -- again -- please >> you've got to be, look at the ten year and say, you know, we've all kind of looked at it all right. i give up. but should it be higher? can you -- can you tell me why it's not >> yeah. tomorrow a phrase used on network a lot, price is truth. whether i think it should be higher or say deserves to be higher is subordinate to the fact the market is telling you it's not but i am admittedly

quite shocked it is where it is. think of the stock bombed negative, the curve, fed moving towards taper, the economy robustly rebounding, covid measures improving, and about to improve again. i would have thought the ten year would be 40 basis points higher than it is. yet we stand where we are, and i think to some degree that's a reminder that for the better part of 30 years bond forecasters have been wrong and then i now include myself in that group >> in 30 seconds, can you explain why you said technically we could have been set up for a pullback in the market but it just hasn't happened >> yeah. some internaling of the equity market look like they're sort of set up for a bit of a correction, and we're entering obviously the september and october period, which is not always the best, to say the least. i mean, obviously, august -- i'm sorry. september 2011, september 2015 come to mind so i think, yeah

we could get a correction here, but -- but, again, end of the day, earnings doing what they're doing and economy what it's doing, hard to make the case that's going to be meaningfully sustainable. >> thanks. alternative investments. got to go. becky? i want to say, see ya later, and -- >> bye-bye see you tomorrow. >> and see you in september. >> good dad joke. >> and "squawk on the street" is next. >> thank you. good tuesday morning and welcome to "squawk on the street." i'm david faber with morgan brennan and mike santoli live from the new york stock exchange jim and carl both have this morning off. let's give awe look at futures as we get ready for an opening bell 30 minutes from now. you can see -- let's call it slightly lower and let's get to our road map this morning it starts with ida's aftermath no water or lech