although there's been an upward bias that would be new highs in the nasdaq and the s&p we can also take a quick look at oil. there's an opec meeting today as well, and then the ten-year, which was at least for now above 1.3% all right, becky quick, we'll see you tomorrow >> yes, sir, joe kernen. we'll see you. "squawk on the street" coming up >> good wednesday morning, and welcome to "squawk on the street." i'm david faber with leslie picker and mike santoli. we are live from the new york stock exchange jim and carl both have today off. let's give you a look at futures as we get ready to set up a half hour from now, you can see we are -- that looks higher to me, i'm going to go with that. our road map does start with the september setup for stocks the s&p is coming off what is a seven-month winning streak the backdrop for the rally and the investor risks in the month

ahead. plus, out of gas, a large chunk of service stations in louisiana cite cities don't have fuel in the aftermath of hurricane ida. we'll get the latest from on the ground in new orleans and baton rouge. a new so-called death tax running into new roadblocks in d.c. we will dig into the step back if the stepup tax. >> stepping back, stepping up in terms of, yeah, both, well key there. let's talk markets here. as we begin a new month after a relatively strong august mike santoli i will turn to you you have all statistics. you've already told us i know from our previous chats during the course of this week, september typically not a great month for stocks. >> the worst of all. if you go back a long-term 100 years, it's the worst. if you go back 20 or 10 years, it's also not great but less dramatically so. last september is when we did have that pretty bruising correction, mostly concentrated in the nasdaq.

we had come into september on this huge rush higher. everyone was worried about faang is dominating. faang and tesla were dominating the market, and we did actually have the last -- what we would consider to be a corrective period between september 2nd and really through october before the election so i don't think the setup is that similar right now we're not riding high momentum we're riding kind of boring orderly uptrend. economic data has been coming in worse than expected for a while now. if you look at the city's index, it's well negative after being positive for months and markets absorbing that and saying we're going to fight through this period there's going to be another push in terms of recovery after the sort of stutter step with covid. i think the thing to keep in mind, seven straight up months those streaks don't last much longer, but when they end, it usually isn't a big cataclysmic m mega peak, you know. ensuing months usually positive. the one thing that haunts all

the statistics is the year 1987 because all the stuff that was like, oh, and the market's been up 15 or 20% through august, it's always great except for '87. >> right >> that's always been kind of the force majeure clause of looking at market history. >> i was going to ask you about september in years like this one where you see such strong price momentum for the first eight or so months of the year. then does that tend to imply that september will be uncharacteristically strong or is it such that that could t actually make it riskier because we have seen such strong momentum >> it tends to mean there's less nasty downside in september if the market's already been strong and not very volatile. that's just a rule of thumb. i also would have to say the calendar stuff is just kind of one piece of the puzzle. it has not necessarily worked to script this year

if the may through, you know, october periods are supposed to be the weakest half of the year, this year you're actually making a lot of progress. i would look back to 2013 and 2017 those are the years that look most like this one in terms of no sharp pullbacks, very steady uptrend. lots of rotation post election year in both cases 2013 you did have actually a decent little setback, i don't know, the high single-digits or something like that. >> there are the names that -- other than netflix and missing from that is microsoft, in terms of the biggest market cap names and their impact on the s&p. we've had any number of people you have not referred to the s&p as the broader market because it is so dominated by these mega, mega caps. with $2.5 trillion market value, microsoft at 2.26 trillion as we head into trading today, and google knocking on the door of 2 trillion as well it's different than 2013 or 2017 in that way. >> dramatically and also, those

are not companies that are kind of moving tick by tick with the economic, you know, data coming in or with people's real -- it's a risk appetite. what they're not is purely defense, right it's not consumer staples. it's not utilities so if you were getting led by those areas, you say, oh, the market's sniffing out economic issues so far insulated from the big down moves we'll see if that continues. speaking of some of these sectors that have had a little bit of a comeback in the last month or so. in august, the s&p having its best monthly performance since february joining us is senior research analyst jeff hart to talk about where to from here, jeff a good month for banks and the rest of the financials the last several months, let's say the last six months it's been more sideways kind of trading along with treasury yields how is the setup right now we've gotten the big buyback

announcement we know thecredit situation looks relatively good. how would you position within the sector at this point >> i think the path is still upward for bank stocks from here directionally they've been trading with the ten-year. now they're kind of moving back up again really, when i look at the banking environment and the outlook, you can kind of say the song remains the same. credit is still really good. we're still waiting for loan growth fee revenue, be it mortgages or capital markets better than expected what are interest rates going to do and where do you go from here the nice thing about the capital return story is we've got the big buybacks announced and the dividends et cetera, but the big buybacks do turn into a large price -- for a lot of the stocks not only is it, hey, it could be good for earnings.

when you're offsetting your top shareholder multiple times, that's a nice stable bid out there that's not going to be price sensitive. >> what do you think is restraining the stocks or the valuations? i mean, obviously, you know, we see, we observe that it's trading with treasury yields, maybe with expectations for when the fed might hike. is that necessary? does it always have to be the case there's always this chance that some other theme emerges that gets you revalued. >> i think a couple of things that could happen. number one would be interest rates, short-term interest rates. the fed started hiking and that implies the economy is good. but also loan growth we've been watching kind of the preleading indicators of loan growth for most of the year trending in the right direction saying we should be seeing loan growth, and i mean, loans have been stable, right we're kind of seeing it. we're not really seeing it pick up yet strong loan growth in the back half of the year into next year i think would be a big thing to help push the bank stocks up

from here. >> do you expect to see more consolidation in light of some more recent outperformance, especially in the asset management space which has done its fair share of merger activity in recent years do you expect them to see a tailwind with this higher currency >> when you're looking at the asset management space, there's still going to be a lot of consolidation, but also in the bank space, right? one of the areas we like in the banks is the universal banks, the big guys that have scale in a slower growth environment, scale really matters smaller banks are much more likely to kind of combine to get scales we'll see it kind of continue a lot of transaction and kind of both bank land and specifically asset management it does seem in financials, i mean, fintech has really been the hot area people have been looking at, at least over the last couple of months. that's kind of been where a lot of the outperformance has come from some of the big banks, b of a and jpmorgan are big players in

that space as well if we can get our attention turned back to more traditional loan growth and supply and demand, that would be good for the bank stocks. >> i wonder what would make that happen you look at paypal and square, together their market value is the same as jpmorgan the market wants to put huge multiples on the disrupters and are considering the big banks the disrupted. what could change that >> i think the big banks aren't so much going to be disrupted as they'll be a part of the disruption if you go back a few years ago, there were concerns as jpmorgan or b of a going to be able to compete with the fintech startups what we've seen the last couple of years is a lot more partnerships they're kind of working together i think some of the fintechs realize having the big client base, having a strong balance sheet, being able to lend can be a big plus that's part of what's going to differentiate the universal banks from banks in general. they can invest in technology. they can take advantage of a lot of technological disruption that's going on out there. >> jeff, thanks very much.

appreciate it this morning >> good to be on now time for an update on the damage from hurricane ida. frank holland is on the ground in new orleans and has the latest hey, frank >> reporter: good morning, leslie this morning as you can see, the majority of new orleans was without power. right now we're here in the french quarter, this area included and in the coming days, about 20,000 utility workers from 22 different states, they're going to descend on new orleans to try to get this power grid back up and running so this morning just about 988,000 people in louisiana, most of them in the new orleans area are without power that's down slightly from yesterday where that total was just about a million energy, the local utility says they have restored some power to the eastern part of new orleans. we're seeing a bit of progress it will likely take week to get the power fully restored towers and key transmission lines damaged in the storms

expected to take weeks to fix. crews doing the labor-intensive work of manually carrying cables across highways and putting them back up on poles there is a lot of redundancy built into their system, pu all of that was wiped out by ida new orleans's largest hospital semih s system holding a briefing. right now all their facilities are running on backup power. officials say they're very worried about another spike in covid-19 >> everyone leaving, traveling sheltering in small places, gathering groups together, now people may be returning to the city and region. will there be another spike in our covid-19 patients infections big concern for the hospitals here >> reporter: the oxner medical system is working to open its

covid-19 testing and vaccination sites. the entire state of louisiana has been deemed high risk for covid infections by the louisiana department of health here in the new orleans area, about 53% of people are vaccinated, compared to about 69% nationally in the state 91% of the people in the hospitals are unvaccinated back over to you >> wow, frank, it's certainly terrible timing, especially as it pertains to the summer as well i know you mentioned the fact that the power outages have become essentially a humanitarian crisis as people aren't able to get air-con air-conditioning, access to clean water and so forth given kind of what we saw with regard to the money spent after hurricane katrina to fix the levee system, is there any sense that there's some sort of infrastructure upgrade that can be done to prevent these types of power outages moving forward? we've seen it in houston we've seen it in louisiana is this a fixable solution, especially since this was a huck

that we knew was going to hit this region? >> reporter: you know, leslie, that's a great question. i know a lot of things are under consideration. i was actually in contact with the port of houston. its executive director has been named to a task force to try to address some of the situations with supply chain and some of the infrastructure here in the gulf coast in general, city officials right now are just really worried about the basics you mentioned no air-conditioning that may seem trivial after a disaster, at 8:00 in the morning, it's almost 90 degrees with 90% humidity. imagine being stuck in a home overnight, waking up to these kinds of temperatures. right now i think city officials whether it be police or health system officials, they're just trying to meet those very basic needs. i think that infrastructure and those questions about the infrastructure, that's going to have to wait a few days. >> frank, thank you. frank holland reporting for us live from new orleans. coming up, we're going to have more on ida and those gasoline shortages as well we're going to hear from a group

which represents owners, operators and suppliers for more than 3,000 service stations and convenience stores in louisiana. for now, let's give you another look at futures of course. we have a little more than 15 minutes before we get started with trading on what at least cramer and i like to call hump day. more "squawk on the street" from the new york stock exchange straight ahead at pnc bank, we believe in the power of the watch out. the “make way, coming through”... great. the storm alert... dad. and the subtle but effective ding. that's why we created low cash mode. the financial watch out that gives you the options and time needed to help you avoid overdraft fees. it's one way we're making a difference. because we believe how you handle overdrafts should be in your control, not just your banks. low cash mode on virtual wallet from pnc bank.

welcome back to "squawk on the street." we're getting back to ida's aftermath in louisiana a large portion of gas stations

in the state's biggest cities are out of fuel. in fact, according to the latest data from gas buddy, more than 52% of stations in baton rouge and new orleans are without gas at this hour joining us is the executive director of the louisiana oil mark marketers, natalie isaacs, which represents owners of more than 3,000 stations in the state. thank you for being here i'm sure it has been a very busy week already for you can you just first give us a status update on what you're hearing from your members within the state of louisiana >> so obviously we were hit, but before the storm comes is when we really started, you know, working big overtime in terms of trying to get people ready for the storm and getting people out of harm's way with evacuation routes and keeping that busy we first assessed the damage of

what was going on, and we have field teams with the state as well and different entities that are affected with fuel and supplying fuel >> how cat caclysmic was the impact from the storm, especially relative to those historically >> so i've been in this position with katrina, and it seems like we always go back and compare so much to that storm, but in terms of fuel supply, this is so different. we've had -- i think we have eight refineries that are still down out of 19, and that doesn't obviously just supply our area here in louisiana, but we supply, you know, surrounding areas in the entire country, and

so we're seeing just in my little community, which is ascension parish, we're out of le electricity and whatnot. some stations about 60% are able to be open, but it's not constant some people may wait in line even for two hours, and then by the time they get their chance to fill up, it's actually -- the lines are dry, if that makes sense. >> yes >> the lines for our guys picking up at the refiners that are open, typically you may be able to get a load of fuel in 30 minutes and prior to the storm, some wait for like four hours. in fact, this is kind of a story that's stayed on my miend, but have a member that actually sent a driver to pennsylvania, at the

same time he sent a driver to app lieu sus, louisiana, which is around lafayette, and the line in lafayette, the appaloosa's terminal was so long, the driver was able to go to pennsylvania and back and load fuel at stations. the driver was still in line, you know, waiting to get fuel. so that just blew my mind. that was a day before the storm, but that is just how, you know, we just -- we're so dependent on fuel and using it, especially right now we have a lot of generators going for people that the power went out and gas is needed for that as well. >> yeah, yeah. well, we are certainly sending our best to all of the affected people in louisiana. we appreciate you joining us today to share the story of the gas stations and convenience stores in louisiana, natalie

isaacks. thank you. >> thank you, leslie we have a lot of movers to get to this morning, going to talk a lot about the rails as well take a look at lucid, should we tell you now i feel bad kind of, shouldwe really be teasing something like, that it's the pipe holders 166.7 million shares we've got a lot more on it stay with us when we come back

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monolithic power round out the top five fert qor the quarter the opening bell is just minutes away rz

ark invest cathie wood buying zoom, scooped up shares totaling more than $56 million in value this after the stock, of course, was down dramatically yesterday. zoom reported earnings there was concern about its guidance about 2022, particularly about small and medium-sized businesses. wood also purchased 260,000 shares of robinhood. let's play the music again for leslie. >> it's such a good pun though. >> really nice >> the animation is everything thank you. >> and the fact that she sort of has a flock and people converge. >> and we get a great deal of transparency from her. it's not like we would get this from most money managers. >> actively managed etfs there has to be some level as opposed to mutual funds.

>> in both these cases she's averaging down she's already a big holder of zoom, like a top ten holder, more than a billion dollars worth. and that's the way arc, you know, will act if they feel like they have a long-term disruptive company, wait for the market to swamp it a little bit, and then raise your bet. >> yeah, definitely has conviction that's certainly a characteristic of hers did you guys also see the news about this transparency etf, kind of the next leg of this esg movement but something that arc is calling transparency. they're not going to include oil and gas, they're not going to include alcohol sk, and in interestingly they are excluding banks as well, which you don't always see that kind of grouped in with the traditional sin stocks, plus oil and gas, but, kind of an interesting move there. i do think it's kind of their response to this movement sort of esg specific inflows. >> this is an etf thing

introduced by arc kaund d called transparency that will not include banks. what is it why? do we know >> no idea why i just thought that was an interesting aspect to kind of this, you know, next leg of esg focused etfs to not include banks as part of that kind of category of areas that you would, you know, consider non-esg. >> if it was that their business models and their financials are opaque or is it their role in society not compatible with having maximum transparency and things like that if you believe in something like decentralized finance or something like that, which seems pretty much adjacent to a lot of those trends, maybe that's where it comes in. it is interesting. it's also, look, the big banks are not disruptive, you know, really i mean, obviously they can be within their businesses, but their legacy. >> i want to keep pointing out on zoom, that 59 deal, pretty big deal could be at least in,

which is at the end of this month given the stock there is below where they actually acquired the company when they announced that you hear the applause and two, one, there it is, the opening bell and we'll look at the cnbc realtime exchange as we start trading in september here's the big board it is bergen celebrating their 20th anniversary of the merger of amerisource health. over at the nasdaq, it's ce cellebrite they're both ringing the bell today, so they're celebrating. we do open up, michael, a bit on the s&p looking at some of our big cap names that we are so focused on i mean, apple's still underperforming the broader market at this point by about, what, 5 percentage points or so, 500 basis points as we head into

the last four months of the year >> you know, we mentioned earlier that going into september, it was maximum concentration in the big growth stocks apple at that moment peaked right at that time, they had, remember, a stock split. a lot of things were going together it just seemed like there was a huge retail excitement for the big guys on a one-year basis since that day, apple's only up 14%, it's about half what the s&p has done over that period of time but, it had built up this massive lead ahead of that that's been the give and take of this market. talk about concentration we got to about 25% of the s&p in those big five nasdaq names, the top five we're down about 23. it's not as if it's become so much more widespread in terms of market value you've kind of come a little bit off the highs in terms of concentration because the cyclical stocks had a decent run for a little while. >> yeah, we've seen kind of this rotation back and forth and back and forth throughout 2021. given what we saw with the

ten-year yield, i think there was a note by matt may lee this morning, if that does surpass that 1.3 threshold, that we could see more of a rotation back into value. is that something that you're also watching especially as it pertains to some of the concentration in the tech heavy indexes that we do tend to watch? >> yeah, well, the pattern has absolutely been when yields left, it gives the green light for the value and cyclical stocks to do betterm yields have been stubborn. global yields have started to nudge up a little bit. the economic numbers have been not great relative to expectations they've been fine in terms of trend. we'll sfee if that happens i feel like it's almost more -- growth has been coopkind of hol the line on the market that's the way the back and forth has been for a while >> because earnings have been fantastic. >> phenomenally good. >> yes, yes.

>> i think it was 90% of companies beating their bottom line estimates i mean obviously -- >> almost too good to last in that fashion i think the market said this is great. earnings estimates keep going up that supports the valuation, but it hasn't necessarily catalyzed individual moves higher when those companies do great, even though some exceptions i know some of the leaders on the s&p 500 are earnings movers, pvh being one of them. >> yeah. >> up about 13%, so that was one where, you know, a stock had also been okay before hand it'd not been really punished before the report. careerly clearly consumer operating very well in the apparel area apparels having a moment here already. that's been working. and then cable soup i did want to mention it had been an awful stock >> reported earnings >> guidance not great in terms of sales and fiscal year results, but it had been

blasted, and a lot of the food companies especially within consumer staples final tidbit, consumer staples as a percentage of the s&p is pretty much at a record low. below 6% probably half of the proportion it was in the s&p ten years ago. so obviously, you know, the trends in the market and the economy are not going in their favor, but they also had a great year last year and are having a tough time, you know, following that up. >> apparently consumers are stocking up on toilet paper again this year. did you read that? >> i did not >> yeah, we're basically back to march 2020 in terms of the toilet paper barometer you bring up a really interesting point about the consumer because consumer sentiment is, you know, continues to kind of tick downward, but then ceo confidence has basically never been higher at this point in time you've got very strong earnings from consumer companies. you've got a bunch of ipos of consumer companies in the pipelines where clearly their

investors, their ceos, their underwriters believe now is a good time to go public benefits from the tailwinds of a strong consumer it will be really interesting to see what the consumer does and how the delta variant impacts things and how all the other uncertainties out there impacts things how a slowing potential economic growth really does kind of change the dynamic for the consumer because i think that is -- there is this dispersion in thought in regards to what the consumer is going to be doing. >> i do want to come to lucid. the stock coming off the lows you saw a few minutes ago. it is still down over 12%. it came into the day with a 32 billion or so market value the decline today is due to potential selling from the pipe investors. they represented about 10% of the overall outstanding shares, 166.7 million, 15 is where they

actually purchased those shares. so not 10, 15. but obviously there is a gain there, and there's an expectation and potentially some selling going on by those pipe investors, and that's seems to be or is the reason why you're seeing lucid shares pressured this morning plenty may decide to hold on, of course, as well, but again, roughly 10% of the overall outstanding shares expired today, september 1st. >> it's an important lesson, i think, especially for investors that are new to investing in spacs. obviously lucid had kind of a unique dynamic to its spac pricing its pipe at $15 as o', they were able to sell a pipe at a premium because it was considered such a hot kdeal to get into. >> and because the stock was trading at such a high level. >> now you see these lockup dynamics that take place that are often kind of closer to the actual merger date than a

typical ipo, which would be six months, a year, depending on how they structure it. this one, september 1st, of course being the lock of expiration, you do tend to see kind of that pull back to gravity as people try to arbitrage the situation ask make sure they are able to cry crystallize their gains as the stock has gotten closer to that level. >> that one-year chart of lucid perfectly encapsulates the kind of mood shift for spacs and evs. this was all coming together at the same time there in february. it all kind of crescendoed at that moment. so both the spac, you know, kind of excitement, and of course the maximum ev enthusiasm also just peaked all at once >> yeah, i've been talking lately about the trend we've been seeing in so many spacs, which is enormous redemptions that have resulted in far fewer shares, actually, being available once, and/or cash as

well to the company once they actually close a transaction, even those these deals are being approved, we're seeing redemption rates, 70, 80, even into the 90-plus percentage, which has been somewhat shocking on lucid, you can see it's trading below par. it's after they announced their deal got a little confused but i think i got it right there which shows you that these things have not been performing particularly well. lucid is anticipating -- just so we remember -- let's call it 1.149 billion in profit by 2023. and then 2.1 billion by 2024 ebitda seen as 592 million in 2024 o want to get to the rails, of course, which has been something we've been following -- >> and now here is the host of the faber report, david faber. >> thank you, johnny gilbert,

always appreciate that it is, well, a lot more going on there. yesterday we heard from the surface transportation board, of course, ruling on this very potential component of canadian national's ability to acquire kansas city southern, which it is in a deal to acquire as of still this moment. but the ruling was -- it was a no doubter unanimous and they were basically like, no way no way, we don't see this as something that is in the public interest at this point, and they ruled against it we got a little language from them that we can share at this point with you they simply say the proposed use of a voting trust would not be consistent with the public interest, applicants have failed to establish that their utility of a voting trust would have public benefits. the board finds that using a voting trust would give rise to potential public interest harms relating to competition and divestiture. i can tell you people close to canadian national somewhat

surprised by the deal. not that many others are surprised because there had been a general view that it might be difficult to get through, but the ruling itself and the way it it was stated, will they actually appeal becomes a question i'll get to that in a moment what the voting trust would have allowed, of course, is the risks to be borne by canadian national itself as opposed to the shareholders of kcs while they wait for antitrust approval for a deal now kansas city finds itself in a position where its board is going to have to potentially talk to canadian national. that's what they say they're doing. they're supposed to have a meeting or i should say a vote on said deal as of september 3rd. that has been adjourned at this point. we don't know when they will hold a vote, but in the interim, they are going to be talking to the canadian national, trying to see what, if anything, can be done here. one key is whether canadian national will choose to potentially appeal and what that would mean for the way kansas

city southern's board views a potential deal or its willingness to hang around, postpone right now they have a february drop dead. that's when the merger agreement would expire, or do they as always seems potentially likely at this point go back to canadian pacific, which has the alternate bid, lower though it is in value, and say we see the risk on your deal because you can use a voting trust as far less, and therefore, likely or reasonably likely to lead to a superior proposal, and therefore they reopen negotiations with cp that would seem to certainly be something that very well might happen here. another question for canadian national is whether they will really try to say, hey, you know what we're willing to increase the termination fee, the reverse breakup fee significantly. we're also willing to top up our offer to allow for the more time that it will potentially take as we extend the merger agreement

well beyond february of next year give us a chance take your risk it seems highly unlikely the kansas city southern's board would be willing to do that. tci, not an insignificant force in that world. they own 5.2%, and they made no bones about it saying in a letter, and i think we have that as well, that proceeding without a voting trust by canadian national would be reckless, irresponsible, and massively value destructive. there's no way you can have any confidence in how the new merger rules will be interpreted. this is by the doj they're talking about as well because they've never been used before since there is such uncertainty around the approval process, it would be negligent to make a high offer they say they want the ceo potentially replaced i would point out importantly, and leslie you know this as

well, they own more of cp than they do of cn, percentage wise where are they at like 9 plus percent of canadian pacific shares so 8.4% of canadian pacific shares they would benefit in their position there as a result of a potential deal they feel would be more positive i think everybody gets it. all right, how'd i do, johnny gilbert? all right, i hope so still to come, details about a new white house death tax plan that's under fire. we're going to be back right after this

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welcome back to "squawk on the street." rick santelli here live with breaking news at cme hq, our august final read on market pmi for manufacturing, 61.1.

so we toss out the mid-month 61.2, comes in 1/10 less and this is the lightest since april when we were 60.5. but here's the cautionary tale, whether it's this or chicago pmi yesterday or the fact that we're going to get more pmis and service pmis, the fact we're so far over 50 is a definite positive, even though, of course, many issues including supply chains and variants are pushing us back just a bit big story today, european yields continue to gain on u.s. yields and u.s. yields dropped rather dramatically in the time following the weak a jdpobs report "squawk on the street" will return after these messages. it's a thirteen-hour flight, that's not a weekend trip. fifteen minutes until we board. oh yeah, we gotta take off. you downloaded the td ameritrade mobile app

so you can quickly check the markets? yeah, actually i'm taking one last look at my dashboard before we board. excellent. and you have thinkorswim mobile- -so i can finish analyzing the risk on this position. you two are all set. have a great flight. thanks. we'll see ya. ah, they're getting so smart. choose the app that fits your investing style. ♪♪

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this is essentially technology

put together that's where the momentum has been all month that's an inversion of what happened earlier in the year yield alternatives like roeits that's an historic high. banks sideways for months. industrials sideways for months. what's there typically, cyclicals, you see that inversion. growth, cyclicals tend to be profit earnings are not only at a record but the estimates for the third and fourth quarter are still rising that's the most important thing. profit margins north, it's been 9 to 11% for many, many years. interest rates have been staying low on top of that one thing that's a concern that technicians constantly are

messaging me, i don't like the internals because they look at things like the advance decline line how many stocks are advancing, that peak back in june, the percentage of stocks at new highs peaked in march believe it or not we've only got 90 new highs on the nysc today, that's not much at all, and momentum, i look at the percentage of stocks above the 200 day moving average that's a standard technical metric 58% of the s&p is above the 200 day moving average is that a little a lot? it was 90% in february what does this tell you the internals, the advance has been very selective in the last month or so. that's a concern to technician, they want to see broad market advances when you get growth, it's faang names, with the s&p up 5%, 6%, this quarter you see the moves up here in these big names the average top five names is up more than 10% for the month. when you've got those five

moving and they're more than 20% of the index, that's enough to move things forward and that's what we call that selective advance and why you're not seeing the advance decline line move forward as much in terms of what matters, a lot of people overnight kept messaging me saying oh, the world is doing really well but remember there's a lot of issues about what could go wrong with the rallies we could have a fed communication misstep. they've been masterful in communicating what they want to do we could have much further supply disruptions than we've had accelerating we could get sticky, not transient inflation. the market is saying for the moment they're not concerned about it finally, just wanted to note a lot of discussions about the fact that the world's been doing well europe is doing well there's the big index for the whole world. if you want to own everything in the world, that's acwi it is at a historic high i don't like this index for a simple reason. it's really the united states,

60% united states, what you want to watch is x u.s. that's where the professionals go they put their money into things like the vanguard international index. this is the whole world x the united states and here you're seeing much less of a move sideways essentially this is hong kong, this is france this is japan.

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♪ good wednesday morning and welcome to another hour of "squawk on the street. we're live from the new york stock exchange let's give you a lock at markets a half hour into trade coming off what had been the highs for the s&p. it dow is down and the nasdaq hanging in with half a percent gain and rick has that for us rick >> yes, our august read on manufacturing at 59.9. that's actually a bit better than expected and anything over 50 is expansion mode 59.9 well, it's the best if you go back 60.6 was our june read.

now, let's go through prices paid expected to be in the neighborhood of 84 came in 79.4 and that is quite a good thing because just a couple of months ago it was at 92.1 that was the highest since 1979. new orders 66.7 that's a nice beat we're expecting 61 so, that's exceptionally powerful and considering the weak adp and the big jobs report on friday t came in at 49.0. and that definitely is a disappointment at 49.0 but remember we are continually monitoring how the new strands and supply chains are effecting us but the slip under 50 is a psychologically a big issue. and an older number for the month of july. it over performed up

three-tenths of 1% and 10-year note yields. and really somewhat stopping some of the buying that was coming in after the weak jobs number back to you. >> rick, thank you very much we are now more than 30 minutes into the trading session here are the three big movers we are watching starting with pvh. that stock surging and company raising its full-year guidance stock up almost 14%. plus campbell's soup beating on the top and bottom line. they did issue a fiscal 2022 adjusted earnings outlook, as it deals with higher input kacost d a constrained labor market and we'll end with facebook getting down graded to neutral and increased digital ad share competition by apple and roku. it's holding up nearly half a percent. thank you, mike.

it's the first trading day of september with the tech sector leading early as at the nasdaq hits another all-time high joining us is asset president. thank you very much for being here as we look at september, and we were talking about this last hour, historically it's been a weaker month throughout history but we had last night we were talking about the september dynamic and said we could have a rally in september, given the strength we've seen so far this year what do you make of this month, especially as it pertains to all of the various risk factors out there, coupled with some of the technicals we've seen? >> i think there are a couple of considerations we look at it against the back drop of, a, we continue to have a strong economic growth when we look at the outlook for the forward 12 months, that

still looks solid. a low interest rate the environment and that seems to favor, not only stocks, in our opinion but risk assets in general. if you look that valuations where they are, why they may seem historically high, valuations at earnings have increased faster than prices actually have come in a lot. we continue to be structurally overweight risk assets >> so, the s&p 500 closed at a record high 53 times, the most at this point by the year since 1964 by recommending overweight risk assets, including equities, are you concerned the market is due to correction, given that it's been going linear, higher throughout the course of the year >> one of the things we have to keep in mind is the consistent

upwards of the market. even if it was in a typical pullback, we don't think that's enough to cause you to shift your waiting away from risk assets the practical reality is over long periods of time, there are very few instances that you put a material risk in the market and in terms of the economic back drop, we don't see a recession in the cards >> i wonder if you say equity valuations seem like they're okay or not of concern because of low interest rates, do you think bond yields should be down here and they're appropriate or do you think there's a risk that, if yields started to go up, the support kind of erodes a bit too?

>> well, i think it depends on two things first of all, the magnitude of the shift upward this year we looked at a back drop of a rate environment that would be better for longer and a range, anywhere from one and a quarter to 1.75. so, we're at the lower end of that range we don't think a move, even towards the middle of the range, takes away what is still a relatively low-interest rate environment, that still supports stock and stock valuations the second part of that is what is the driver for it if it's not unanticipated inflation and we believe there's things over a long-term time frame that keep them in check. we don't believe the rise for those reasons deter what we see in a good environment for risk assets and equity. >> what would change that view

is there anything in particular on the horizon that would have you say wait a second we have this wrong >> first of all, underpinning our whole ais esment is what we believe about the growth environment and that infers we won't be [ inaudible ] by an aggressive acceleration from the delta variant and putting a lid on what we know we need in terms of strong economic or relatively strong economic growth and so, again, that's the first thing. the second thing is fed policy i think where we sit today, if we were to see an aggressive policy and a sense that spooked the market, you can have a scenario where that gives you, again, in terms of the tarp tantrum and those sorts of things so, we're mindful of both what are we seeing in terms of the underpin thofgz growth and we're mindful of unan tisticipated

inflation. those are the two things that present intermediate risk cases. >> what does that mean unanticipated inflation inisn't most inflation somewhat unanticipated? >> no, from my standpoint, we're tacking about relative to expectations one of the things we know, even in the commentary for the fed, they've said for a variety of reasons that they were willing to let inflation run ahead of where it has been in the channel. reminding ourselves, that even with the 2% target of inflation, we were well under that. when i talk about underan -- it means it would be over and above that and move to the point where it would be more structural and not transitory and again, we're more in a camp that what we see, by and large,

is more transitory in nature >> which makes sense why you wouldn't expect rate hikes in 2022 or 2023, as the producer's notes detail do you expect them to hike rates beyond that point? >> i think for all of us we would have an expectation of some move towards a more normalize under viermtd but you're talking about our view, compared to some in the marketplace. we've lookedal at an environment where we believe rates will be lower, even for longer than people anticipate. there's a risk case for the scenario and that is our disposition in terms of the rate outlook for the environment. >> it's great to hear a contrarian on that front thank you for joining us on the first trading day of september >> it was the worst performing sector of the month of august. tracking the moves in energy

>> all right so, david, if you take a look t was generally a good mung for the overall markets. but as you point out the big exception was energy it's the smallest sector by sector waiting and the only sector in negative territory over the last month. it's weaker as you can see in trading so far a lot of the weakness is having to do with the surge in the coronavirus case around the world, tied the delta variant of the disease. fears that the economic expansion would weigh down is weighing on prices they started to kind of fall, a mirror to medium-term slide. we're down from the peek to the trough over the last couple of months now, among the biggest laggers during that time span, over the one-month period and inflation in production and it wasn't all

bad for every stock in that sector a handful of the energy names ended up over the last month we're talking about devyn energy and marathon petroleum as well now, the sector's prospelkts are likely going to be closely tied to the trajectory of that delta variant over the course of the next several weeks if you look at the charts, oil prices, case counts on coronavirus, they tend to mirror each other a little bit. we'll see how that plays out >> thank you as we head to a quick break here at the nyc, we'll give you a look at our road map for the next hour. and that includes amnotching a new intraday high. and weir we'll discuss with former ford ceo. >> and he owns notable restaurants. a look at the sector's recovery and how the sector might derail.

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companies with operations in china could be impacted by a new law going into effect today. live in beijing with more. eunices. >> thanks, mike. well, the new data security law dictates companies, both foreign and local, will have to store, process, and transfer and manage their data accordingly now, this law requires that all

companies classify their data into important or a new core category and the core category is mainly having to do with national security. now, the companies that want to transfer data overseas must undergo a security review and get explicit permission from beijing. those that don't comply face hefty fines or criminal charges. companies, these have been looking over and sifting through these laws and say that, for the most part, they're quite broad so, it's unclear exactly how they're going to be implemented but companies already have been impacted because they're hiring more compliance officers or staffers to manage their cyber security and they've been considering outsourcing data management to other companies for china. another impact, specifically on chinese companies is it could

effect the raise they raise money because there are so many restrictions on raising money overseas and ipos. especially for companies that are much more vulnerable, such as those in it infrastructure. now, this data security law is just one of three frameworks to help govern the digital economy. the cyber security law came into effect in 2017 that requires companies to improve the security of their data networks. and the next one is the personal information protection law that has been going to go into effect november 1st and specifically focuses on protecting the personal n information of the people here guys >> eunice, thank you chinese tech names still making gains this morning. significant ones, despite what, as eunice elicited, is regulatory actions in the

sector and joining us is key analyst at key bank capital i see in the notes that you, at least say that nothing that has transpired has blindsided us much, given it's been openly discussed over the last few years. if that's the case, why have the stocks reacted the way they have, at least previously, if we can expect what's been unfolding? >> i think a lot of public market investors are sitting in new york and london and don't pay enough attention to what's going on in the ground in china. don't listen on the rhetoric or the companies when they forecast these types of developments, be it from regulators or the broader competitive landscape. there's a huge psychological impact to the markets and people whool are not on the ground here, get surprise said.

>> what i continue to hear from investors is they want an understanding as to when this comes to an end. when the playing field has been set by the chinese regulators. you claim or say this regulation is not half hazard so, when do you expect we will know what to expect in terms of the regulations put in place >> i don't think there's necessarily going to be an end game a moment where we say this is done. but based on the frameworks we've provided, you can anticipate what sectors are going to see sustained interference if you are involved in something k fined as a vice and destabilizing society, creating equity and education or saping the time of consumer internet users, engaging in predatory lending. they're going to see sustained

regulatory involvement and not going to be an end game. if you're in a sector like health care, core technology, enterprise, those sectors were untouched by regulators and will go on indefinitely with limited intervention >> i want to bring you into the conversation because there have been a variety of investors that said, given all the uncertainty, with regard to regulation and various clampdowns, especially in regards to the china sector, that it remains uninvestableality this time, until there's more clarity kooyou agree with that notion and if there is opportunity, where? >> i think feel more comfortable compared to a couple month ago i think for the past couple of months, the update and security law, the personal information protection law

and recently we have seen recommendation [ inaudible ] and i think we have seen more and more clear direction, in terms of the new regulatory environment. while there might be some uncertainty in terms of how to -- and in terms of the potential impact from financial perspective after the new rule put [ inaudible ] but again we start to figure out whether fundamental going forward and under a new regulatory environment and i [ inaudible ]

in terms of the investment fear. and the financial markets a lot and i think that's much more practical in terms of risk >> let me come back to you as an example and let me use 10 cent they're limiting gaming time to three hours a week friday, saturday, sunday you get an hour, at least if you're under 18. how do you approach that name, one of the biggest out there >> it's a buying opportunity and it's driving the stock price down it's rare you see a company come up this much that has seen a rise in profit gaming was already coming down and i think the impact will be mitigated.

only 13% growth and the sectors again that i mentioned are supported by regulators, supported by the officials ecosystem, enterprise, they saw about a 40% year on year growth in share the enterprise and business services portfolios 10 cent is a behemoth. they invest across all sectors and stages their investment portfolio yielded about $120 billion of gains over the last year and has names that would be the envy of any sillicon valley venture capitalist they are able to engineer sweet deals for themselves as they invest in the domestic market. often right pocket, left pocket where they invest, get equity and it's tied to the capital being reinvested in the we chat mini apps, etc

so, the net result is a healthy business already expecting and had a lot of the down side priced in, given the foreshadowing that management and others provided at the earnings call and continued competitive dynamics and threats that they see daily from the likes of bike dance. so, i think that was a good buying opportunity > >> okay. as we look today, there's buying in all these large cap stocks. as we head to break, a look at the biggest dow gainers for the month of august, lid by goldman sachs at more than 10% followed by salesforce, notching in approaching 10% itself. all around you... where you learn, work, and fly... we help make them healthier. we are the people of abm. for more than 100 years, we've been a leader

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. apple announcing new digital features for its users >> we're watching the stock this morning. it hit a new fresh intraday all of the time high it's up about 15% so far this year

over the past 12 months, up 20%. news this morning too. apple is working on new health-related issues for the watch, to alert about increasing blood pressure and fertility planning could be available next year per the journal. a health and fitness product you would expect a version of the watch, along with other new hardware very soon research firm, idc, says if you look at that wearable category, apple dominates that now with the watch and air pods the next closest, by the way, at 12%. as always, one very big tech event they've circled on their calendars has come up with tim cook takes the stage and introducings the hardware products the expectation is more relatively modest advance to the year and we're going to sigh

that's a lot of iphone demands that pull forward. it won't be as strong as the iphone 12. they're on the sideline. and people there are going to be looking for the upgrade. mike, back to you. >> thank you very much time for the etf spotlight highlighting one name, looking to rebound, following a 16% decline in august. hi, christina. >> we know solar stocks have had a lackluster year but some analysts see bright spots ahead. let's start with the -- they invest in clean fuel that etf is about 1% but year to date is a different story. down over 16%. and another stock in the red year to date is sun run. down a whopping 32% year to date but the recent dip in the price is why j.p. morgan is adding the solar panel and battery company

to its top ideas list. they think sun run can sore 90% in the coming months because of its strong inventory position to deal with any supply shortages j.p. morgan has price target of 86 bucks on the company. you have wolf research also put out a bull gsz note for sun run, as well as other companies, like solar edge and for solar but for future solar investing, solar costs have dropped more than 70% in the last decade and the biden administration vows to accelerate that trend. but we could see some upside thank you. after the break, we're going to talk august auto sales and speaking of autos, take a look at lucid motor shares. they're down 10% this on the expiration of the lock up for price holders. they bought in at 15 they hold 166.7 million shares that's roughly 10% of the

outstanding shares and today they can started selling and that is having some impact we're back in two minutes. the world's first fully autonomous vehicle is almost at the finish line what a ride! i invested in invesco qqq a fund that invests in the innovators of the nasdaq-100 like you become an agent of innovation with invesco qqq that building you're trying to buy, - you should ten-x it. - ten-x it? ten-x is the world's largest online commercial real estate exchange. you see it. you want it. you ten-x it. it's that fast. if i could, i'd ten-x everything. like... uh... these salads. or these sandwiches... ten-x does the same thing, but with buildings. sweet. oh no, he wasn't... oh, actually... that looks pretty good. see it. want it. ten-x it. yum!

welcome back i'm rahel solomon. the first lights are coming back on in new orleans. crew wurz able to restore power to parts of the eastern section of the city, using electricity from a natural gas plant the utility says transmission lines, damaged by hurricane ida, are carefully repaired ajts texas law banning abortions after roughly six weeks of pregnancy is in effect considering an aemergency appeal to block the law it directly challenges the roe-verses wade ruling by the high court it was set up to handle the

areas around lake tahoe as the caldor fire approaches and after an rbi single, last night's loss against the tampa bay rays, bogarth was pulled from the line up because he tested positive for covid he's the 10th player or coach on the boston team to be sidelined by the virus we do wish them all well a little birdie told me you're huge, huge boston red sox fan. >> yeah. get a different birdie not that i'm celebrating anybody getting covid but i root for the other team thank you very much. let's get to phil lebu he's looking at auto sales slumping in august >> the reason they're down relative to what we see in august is supply the auto makers are limited to what they can do

and take a look that chart from j.d. power it shows in the month of august, focus on the red line there. that shows what percentage of vehicles that were sold in less than ten days. pamerwork is signed, keys are in your hand and you're driving away because you preordered it 49% were sold in less than ten days in the month of august. and again, a big part of what we're seeing is driven by the fact that when they are functioning, they're cranking out as many vehicles as possible but they're not all functioning as they should be. that's because of the chip shortage it's limiting vehicle production how much is on the show room floor is at a record low of 26-day supply. that should usually be about 65/70-day supply auto sales coming in at about 13.1, 13.2 million vehicles.

typically in august, you'd see a vehicle pace closer to 16.5 million vehicles. that gives you a sense of how much they've been under pressure quickly want to look at gm, ford, and sulantus, a parent of jeep and ram they're under a lot of pressure. you see the bump, following nair announcement of the investment in electric vehicles and lastly, leslie, i want to look at carvana. continues to be a great market for used vehicles. the industry, overall, record sales for 2021 leslie, back to you. >> remarkable. thank you very much. for more, let's bring in our next guest mark fields is a former ceo of ford and qualcomm member this makes you perfectly positioned to talk about some of the key bottle neck challenges that have been facing this industry whm do you expect this to

normalize? >> well, from the information i'm looking at and folks i'm talking to, you're not going to see a normalization until next year the bottom line is the auto industry is firmly in the grip of this ongoing semiconductor chip shortage because it's been exacerbated by the covid shutdowns in asia, where a lot of the chips are obviously manufactured and, as you go forward -- there's always things that are going on that are interrupting production, whether it's weather wise, labor wise but in the past, the supply chains have been able to weather that because there's been enough supply in the sigsm. now, the supply chain is so tight, kbtd there's an issue, whether it's labor or weather or whatever, you're going to see an immediate impact and that's why you see those plants going down. so, the bottom line is the next six to 12 months volatility and

production is the new norm in the industry >> right you bring up a really good point with there being such a limited margin of error in the supply chain right now. when you speak of volatility over the next six to 12 months, what does that look like >> it looks like we've seen over the last few weeks you see every manufacturer of the car maker is coming out with their forecast of production but those are basically points in time types of forecast. you've seen in the last week literally every major oem cut production and you've seen toyota and honda, who have managed so far so good, better than others, through the chip shortage. but last month toyota said they were going to cut production in september. and honda said to expect 40% less of deliveries over the coming month months. so, you're start stoog tee this

really impact the industry i mean, the auto industry should have 3 to 4 million unilts in stock and now it's less than a million units. you're going to see a lot of the plant closures that are going to pop ulup and continue to see the volatility >> at some point, as the year goes on, is this not going to shift into a bet silver lining, presumably the demand doesn't go away it's still going higher? shouldn't there be more pent-up demand wungs the supply issues get worked through meanwhile, pricing has benefitted from the mfrer's point of view through august >> you're exactly right. the good news is the underlying demand is there. but the inventory is not and i thik you're going to see it demand copt to be strong over the next couple of years

what you're seeing in the system is lowner sentives by the auto makers, you're getting record average transaction prices you're seeing the margins being very good on the seeks they're selling for the auto makers and the dealers. i think the issue going forward is as the system starts to normalize and have better flow of production, because the demand is going to remain strong, the inventory levelings are going to take a longer time to normalize and so, i think you're going to continue to see a lot of asphalt on dealer lots, even when the production starts to get more consistent because of that demand that's out there. and overall, when you step back, thalts grr for the industry. >> it's a quick update question from me on a subject we discuss in past interviews love to get your take in terms of where we stand and what your

expeck orientations are for when we're going to see real advancements when it comes to autonomous driving >> i think you're seeing driving and having full autonomy is a very hard thing to do. the industry has made great strides over the last couple of years of getting to the 85 to 90% solution er for it's that last 5 to 10% that's really hard to do though you're seeing folks like cruise and wamo, they're starting to implement autonomous services in places like san francisco and other places but they still have a driver behind the wheel to intervene, if necessary i think it's going to take a number -- a few years for autonomy to really take hold in its final form but the auto makers are very committed to this. it's going to be a big market, particularly in dense, urban areas.

but there's still a lot of work to do. >> well, i purgsinally will be look forward to the day when the machine drives the car and i don't have to figure out where to go. thank you for joining us. >> thanks, guys. >> and after the break, we'll talk restaurant recovery with the owner of planet hollywood. rortarbe el.

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burtucci's and founder and owner of planet hollywood. what are you seeing in terms of all the challenges you're facing right now and what expectation are, given the delta variant spread it's a tremendous conundrum. we're on the verge you have 7.5 million people going to lose their relief this weekend. the third-party restaurant platform, uber eats, the grubhub, doordash, they are critical again they're the only savior at the moment you have people saying i'm not coming back to the offices offices are down sizing. you have hotels that occupancy people are zooming and staying at home. all these things and then we have employee issues and supply chain issues so, the combination of all these things

even though there was pent-up demand to go out, i'm deeply concerned with what's coming >> that sounds not good at all. but what are you doing to deal with a number of the issues you just enumerated. >> the employment side is a common problem through the industry, both from the fast-food, casual, quick service all the way to the sit down. there's a new mentality developing about, i don't have to work evenings i don't have to work weekends. perhaps i'll work from home. variable work hours and a different type of job. so, we're all out there, paying over the current wage levels,

infusing some of our employees to bring in other employees. so, we're all attacking that the sublie chain issues were caused early on by factory and supply chain companies we switch up menus, we do different things i think what i was trying to say is i foresee more movement backnic to delivery again with the winter coming with all the other issues being the key and they did really well supporting ppp money they did well switching the mix, the competition moved somewhat from dine in to curb-side pick up, to relationships with the third-party platform

>> robert, i was going to ask you about the virtual concept in january and how it's helped improve the mix for lost revenue you're expecting with regard to some of the trends you highlighted earlier in the interview, with regards to more people shuning restaurants, scared to eat indoors in the winter time and labor issues you're experiencing. >> virtual dining is the new method to increase sales instead of people eating in the restaurant, and buying the bricks and mortar brand, we've added through our company and other great competitors. we've added another component for the restaurant owner to consider

but the staffing issues andthe supply chain issues are implications for anything we're cooking. but the virtual has, in my case, been another way to replace the lost sales inside the restaurants and it's a very growing trend that regs raunts will all have virtual brand. we had this one in nascar and we have others coming soon. but they're a component part we're going to see grow in all restaurants as a way to build your sales irrespective of covid. >> rob rlt, appreciate you joining us thank you. >> coming up in the next hour, don't miss the ceos announcing a

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gainers of the morning pbh up nearly 15% following a positive earnings report, and ralph lauren and incite joining as welling before we go to break, though, jane wells live from illinois with a look what's ahead hello, jane. >> hey, mike, yeah you know, grain prices up so farmers may be in a spending mood see how that is for equipmentmakers pap few dark clouds on the horizon. latest from the farm progress show, when we come back. a unicorn in training. a corner to build a legacy. a vision for tomorrow. a fresh start. a blank canvas. a second act. a renewed company culture. a temple for ideas. and a place to make your mark. loopnet. the most popular place to find a space. today, things can be pretty unexpected.

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welcome back to "squawk on the street." grain prices high. look at the s&p agriculture index which pratracks commodity assets experts remain bullish deere, caterpillar and others seeing big gains are farmers in a spending mood, too? live from decatur, illinois, we have more. >> reporter: leslie, largest show in the country and the first time farmers able to kick the tires in-person in two years. you noted higher grain prices mean higher stock prices really has been a great year for the equipmentmakers. even as deal wig some of the

same supply chain issues the auto industry is, but farmers have been holding on to their equipment much longer than usual and some may be deciding it's time to upgrade. >> farmers are very optimistic primarily driven by commodity price this year and expectations commodity prices next year stay very strong. >> reporter: now, that optimism may depend where you farm. drought terrible in some parts of the country not profiting from higher grain prices at the same time fertilizer prices and other costs are way up >> fairly common that prices going up will give you a nice window to make some profit early, and then the inputs follow behind that, and, you know, the prices move more violently with input probably more worried about prices for inputs sticky on the way back down, because the markets will drop quicker than that >> reporter: and there is this new dark cloud grain prices started to fall,

because courts in new orleans shut down by hurricane ida responsible for exporting most of the corn and soybeans shipped to the rest of the world the harvest hasn't really started. not a big deal yet could be a problem if not fixed soon. >> absolutely. jane, hope you are enjoying the midwest. i went to school not far from decatur for college. but one of the key issues that has kind of plagued farmers over the last few years has been kind of the trade issue, and various tariffs. are you hearing any kind of impact on that front has that really continued to be a headwind for farmers in the midwest these days >> reporter: i have to el you the much bigger issues concerned about are domestic one, ethanol will go way a huge part of the market, getting rid of ethanol and second, paying for programs. get rid of the stepped-up bases in inheriting farms.

president biden says he won't do that farmers are terrified that might happen they try to send their farm to the next generation, the next generation will have to sell it just to pay taxes. >> jane, it's david. how did you get up there use a ladder what did you do? >> i jumped. i jumped. >> you jumped? >> i jumped. i jumped i'm super. actually, if you look right over there -- there you go. >> oh, there there it is. >> standing by yeah there's the ladder. >> all right be careful be careful jane wells. >> look, ma! no hands. >> making me nervous. all right. we've got about 45 seconds left in our show. s&p up .2% i noticed apple shares up 1.8% not secure exactly why but a surge lately >> they have anniversary of that split. nasdaq in general doing the work today. part of that basic driver, where

it is the old growth stocks that we all kind of know and love i don't know if it's also this news about knew features always good to be in the news about more and better, but i see even alphabet up 0.75% as well pulling their weight. >> apple shares up 1.25% a close eye on markets all day mike join us later that does it for "squawk on the street." "techcheck" starts now. ♪ happy wednesday. welcome to "techcheck. i'm jon fortt with julia boorstin, joe kernen and deirdre bosa are off one long-term bear turning around kind of. joining us and are tiktok adds