2021 "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc i'm becky quick along with joe kernen andrew is off today. joe, it was tricky getting in this morning did you have any issues? >> oh, yeah. i had to take different roads. >> me, too >> major highways. some are closed. lots of issues trees down >> cars everywhere >> lots of broken down cars or cars trying to figure it out a lot of cars had been involved in accidents >> i think others were flooded, too. roads flooded. >> a lot of accidents. a lot of cars facing the opposite way with damage and no one around i guess it happened last night

what will you do you won't get a tow truck sdptruck. >> they were overwhelmed this was a tricky one. we will get you caught up on the weather in a moment. the u.s. equity futures. green arrows this morning. the dow down yesterday by 40 points the s&p and nasdaq higher. nasdaq did set a record. this morning, the futures for the s&p up 7.5%. dow futures up 72. treasury yields at this point, the 10-year is at 1.287% crude prices are one to watch, joe. crude oil prices down 15% from the highs. wti this morning up 22 cents to $68.81. >> a lot of highs everywhere as you mentioned, in the averages

weather can be the top story. i'm not sure we were thinking about that we thought ida would have petered out. a lot of water left in that system >> it gives you perspective of how bad things were when this was just the remnants of ida how bad it was when it came ashore >> wind and everything >> right >> and the weird effects with the tornadoes in areas that normally don't see tornadoes the top story remains of ida soaking the northeast with historic rains causing widespread flooding and tornadoes and fatalities seema mody will have an update from wall street let's start with contessa brewer with the destruction in the tri-state area contes contessa, i guess mostly trees and what you normally see with power lines and power out. things like that >> reporter: i think the big story, here, joe, is the water the amount of water that came down in such a short period of

time this was a once in a 500 year rainfall event it just was catastrophic for new york city and surrounding areas. we saw a first of its kind flash flood emergency from the national weather service for the city and surrounding areas travel ban for the city lifted an hour ago. the mayor and governor urging people not to travel difficult because the subway system is down this video taken by nick kurczewski he is a block from penn station. the train service in new jersey is all but down. there is one line running. it is a real problem for people to get around. not just the trains in new jersey, but trains across the region new york and connecticut likely to have disruption on train service this morning all right. newark-liberty international

airport. it suspended flights the airport reported 3 inches of rain in an hour. that's a united hub. that will have a trickle down effect you see the water rushing in the new york city subway passenger there is caught off guard. the flash flooding and they are standing and watching it this is something you don't expect in new york city where many people see those subway tunnels as one of the safest p places to be in a weather event. let's talk about mullica hill, new jersey this is south of philadelphia where it wasn't just the water we want to show you the tornado that touched down there. this is suburban -- listen to this they are watching this tornado come through now. >> tornado yeah >> again, just historic sight in the northeast.

mullica hill, new jersey, we know at least nine homes were damaged in the tornado then widespread flooding there as well with this morning, there are likely still to be rescue efforts with people going through and making sure that the elderly and infirm are not trapped in their homes by flood waters. once again, joe, becky, we know it takes time for rivers to crest. it doesn't happen all at once. even if the rainfall is over, those rivers could still rise and cause additional problems there. look at that monitorday monsterg through and the shock for the drivers heading into the storm unbelievable >> it is -- i don't feel like we had a good idea that -- yesterday, i was not, contessa, thinking about i wonder what ida is looking like when it passes the northeast. i'm not sure of the predictive abilities.

we predict snowstorms that did not happen. >> reporter: we did not get the warnings that we got during superstorm sandy where meteorologists were ringing that alarm bell we were told that this would be a significant storm and significant rain event for new york city. the forecasts for the path of the storm were spot on it is just that in new york city, in the urban regions, densely packed northeast if you are not from this area of the northeast, sometimes it is hard to understand how crucial these mass transit systems are to connect people to their jobs and what happens if you have a major artery like the fdr that runs along that east side of manhattan. that's a major thoroughfare to move people in and out of the city it floods. it floods in storms. when you get a storm like this where it strands cars and drivers and they have to get out and wade through waist-deep water to get out of their

vehicles, it is historic >> we -- maybe we're used to nor'easters up here, contessa, coming up the coast. this coming from louisiana -- nor'easters seem to pick up more water along the coast. i just don't think we were anticipating something since it came through the center of the country. we should have known >> reporter: exactly >> it went through the midwest and everything else. >> you know what it is, joe? we assume things will slow down. >> reporter: part of it is that the ground is already saturated. we already had a tropical storm that came up through here so the ground had taken all of the water it could hold. the tree roots will be loose in the ground and we are likely to see more damage going through. that is in addition to hundreds

of thousands without power this morning and remember if you are told to stay in place and not go into the office because you can't get there, internet connectivity is an issue today >> joe, the storm picked up so much speed over the gulf because the gulf waters were 87 degrees. we we assumed it would slow down. this shows you how much damage happened there we thought flood waters and decided not to go to the basement then the tornado warnings. >> whatever you do, don't travel do not leave your house. well, that won't work for me becky, here we are contessa, thanks let's get to seema mody for a live look at the business network. what is going on down at wall street which is a low-lying area

of manhattan, seema? >> reporter: good morning, joe and becky. on wall street, it is back to business for us who live in new york city, it was a night unlike any other. torrential rain came pouring down quickly and so fast that mayor de blasio declaring a state of emergency at 11:30 p.m. eastern last night for perspective, in central park, 3.1 inches of rain reported we spent the morning surveying the damage and driving around. transportation is the challenge after water poured through subway stations. a number of lines are suspended. it is the reason when speaking to people on wall street that mean people are opting to walk or bike versus uber or subway because the lines remain suspended. people are here. people are going back to work. of course, picking up from the flooding and extreme rain.

back to you. >> seema, thank you. we're dry. we're looking at the nasdaq. >> we have a leak here i'm not kidding. it is coming through the roof. >> you have some other properties that have pools >> no pool i don't have a pool sdpl >> you don't have a pool you have a pond. i felt strange this morning. i messaged my while. i said i'm proud of our pool i don't know what that means it was very high when it started. that's a major deal because everything that is around the pool comes into the pool obviously this is 1% problem it did not overflow. a couple of weeks ago, i was worried. august was really rainy as well. i guess we are saturated that makes it ripe for flash

flooding. >> i did see big trees down this morning to contessa's point to the ground being saturated and roots not as firm of a hold. >> i-280 we couldn't take 78. i-280 had what looked like swimming pools on it we had to go around the shoulder. >> school is canceled in a lot of places. first day of school. got the call at 11:15 last night. one of the kid's schools was closed an hour later, got another notice >> what would happen >> let's hope we don't get canceled >> we're set up in our homes, they're re -- >> a little dusty. >> i was figuring that out what would i do without a teleprompter >> oh, no. where are the words? >> exactly

speaking of. let's start up when we come back, apple making its second concession on app store raules within weeks. it could allow spotify and netflix to avoid paying commission details next. as we head to break, check out shares of retailer five below. earnings topped expectation, but revenue fell short the guidance was lower than expecting. that stock now off 8.5%. >> announcer: this cnbc program is sponsored by truist wealth. where we focus on person-to-person connections so you can focus on what matters most visit a job site. and even finish work early. you look really lovely. frank?

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apple saying yesterday that some apps will provide a link to web sites to prompt users to sign up for a subscription the company forbid app makers from directing to the web site because it circumvented the 30% cut. it will not apply to all transactions game apps still need to use apple's payment system linking to content subscription can offer a service without a handle by apple. that means netflix and spotify and amazon kindle can avoid

paying the apple pcut. apple said it was made as part of the fair trade commission in japan. it will apply it globally next year the apple shares hit a new high yesterday. joining us now is gene munster managing parter of loup. it was a fresh all-time high do you know the difference are there all-time highs that aren't fresh new ones, gene >> no, i think all-time highs -- yeah, once an all-time high. >> some are smelly and rotten and old or are they all fresh? >> i think mostly fresh. >> okay. mostly fresh >> if you didn't buy apple on a high, on a fresh new high, you probably don't own it in the last three or four years since

it keeps hitting new highs is that still the case there are a few times. a full pull backs. is that the case still buy this here, gene? >> i think so, joe the question we can talk about with the recent announcements with the anti-steering and the app store. this is not a perfect storm, but it is a great investment even at the highs. near term over the next year, it is a $200 stock. it is based on seven times earnings in the 28 multiple. those are achievabchievable if t exce exceedable you have other segments of what is happening in augmented reality which is the future of how people interact and what they will do around health care

and wellness when you put all those together, there is upside to shares here it is hard to buy a company that has had the performance if you missed out and understand psychologically that is hard i would anchor any investment decision and think about where our lives are going and how much time we spend with their products if you take that view, there is a strong case to add to position of apple here. >> health stuff. i guess we will have a blood pressure monitor and health sensors. maybe i'll get one if you can do all that i can monitor my blood pressure depending who my co-anchors are. >> correct this is something if you think about the front edge of apple and wellness, it is a difficult road because all of the complications. the two interacting with the

helping care system. the watch is the landing point you mentioned blood pressure and glucose monitoring most people would not want to know what their blood pressure is on a minute by minute basis i suspect they will would be able to do it so you can get it on a week-to-week basis so you are not always monitoring. for the geeks in the audience, joe, if you wonder how is a watch going to be able to measure your blood pressure, because we're so used to these blood pressure air pumped around your arm, for example, it will not create a tightness around your wrist it measures your heart beat and based on the heart rate and some of the ai around that, they can interpret blood pressure it brings me to the final point around the watch and health and wellness the majority of the features in apple watch are considered as

one clinician stated to me today, it is for entertainment now they are looking at our features blood pressure and glucose monitoring and the higher class designation from the fda >> i wonder how accurate that is using a heart beat with algorithms it sounds fancy. i wonder about it. if it did work, i would like to know all the time. there is evidence you can do biob biorhythms maybe there are ways you can actually control it. let me ask you about the 13. are we set up -- is there disappointment about the cycle because we're expecting a lot? >> i think the good news or to answer it is the disappointing

factor is around supply. usually there are a few weeks where supply works out i suspect it could be a few months this time we're still seeing delays with ipads and macs that is where the near-term disappointment is. from the feature and functionality, there is a unique set up expectations are low the belief is we get better battery life and better camera pretty subtle changes after 5g last year. why that is important is that expectations, i think, are for this to be a rocket ship are somewhat muted keep in mind if you are curious how an iphone, new iphone release without any whiz bang features be a success in investors eyes is the base of yo iphone owners three years or older. that is estimated for 300

million. the street is looking for 600 million over the next year people holding on to the phones for a long time. it is not the upgrade, but the improvements on the phone for the last three years it will woulith -- it will be a success. >> the old one gets so crummy. it is 70% battery and cracked and small. you get the new one and it is a huge upgrade i want you to know that. the 13 >> that's good to hear, joe. >> all right the app stuff, that's diminimous overall. we talked about that at the top. thanks, gene we'll see you later. becky, what do you think >> i love my new phone, too. the battery and the phone. >> i wasn't talking about you.

>> i was going to ask you, moi >> we have a lot of people sitting in it could be anybody. i could be referring to anyone. when we come back, a wild ride for nft the collectible art pushing to new highs. robert frank has a new report. this company makes charging systems for electric vehicles. chargepoint. that stock is up 11.8% revenue beat expectations. strong quarternd a full year guidance check it out we'll be right back. 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 in making spaces cleaner, from the things you touch to the air you breathe. today, more than 100,000 of us are innovating to ensure spaces are more efficient, healthier and safer.

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down now nfts are roaring back to record highs robert franks has been tracking this and what is behind the surge. is it related with the art market not beexactly, robert? >> it is closely tied to ethereum it is tied to the boom of nfts opensea. they saw sales top $1 billion in august a record three times the july sales the average price of nf. it is now $12,000. on average, at least one nft has sold for $1 million or more every day in august. let's call nft 2.0 which follows the first boom in march which is driven by a new cast of cartoon characters crypto punks averaging $214,000 each.

one trading for more than $7 million. visa bought one for $150,000 to better understand the space. that helped the market a lot then the board ape yacht club could soon take the lead sothby's about to auction off one for $11 million and $18 million. steph curry just bought one with it is his new twitter avatar up next is pudgy penguins. up 7% since created in june. one sold for $500,000. two weeks ago, that same nft listed for $2 million. if you were unlucky enough to miss the pet rock craze in the '70s, one nft listed for $28

million. there were 100 created the cheapest you can buy right now is $2 million. >> i'm worried, robert i'm really, really, really worried. really worried you pay for an e ether and now that is going up it is the tail wags the dog for buying a pudgy penguin >> yes >> why is there any supply constraint on the penguin you can draw you can make him captain of the ship you can make him anything? tennis player? you can make a penguin do whatever you want and sell for $1 million >> you could, but the original pudgy penguins are a limited

amount the same with the board apes same with the ether rocks. the problem with nfts and the limited edition. these are like prints in the art world. because you buy one of 100 warhols, but if he were alive, he could these nfts are limited they could make more there is a whole generation that lives online if now your status and flex and collectibles are online, these could be the digital world for this generation, the collectibles where they want to show status are also virtual it looks ridiculous to us and in march when prices were one-tenth what they are now. this has legs. some people say a small group of people trading nfts to each

other and helping prices there is a lot of stuff we don't know and see in the market now they have 26,000 people on the platform this looks to be growing >> if you just say, you know, charlie munger, if you say out loud what you really feel about this, that it is just no way this is tulip mania. if you say that, you are just a boomer >> i would say when the wealth reporter is talking about pudgy penguins, it is safe to say we're in a bubble. >> thank you, robert we'll see. there's more things heaven and earth. they say someone said that. hemingway? that's a different reference we know who it was was it -- it might have been hamlet or someone talking to horatio. coming up, remnants of

hurricane ida slamming the northeast coast. as we head to break, here is 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. 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. ♪ music playing. ♪ there's an america we build ♪ ♪ and one we explore one that's been paved

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the recovery efforts continue from hurricane ida's path of destruction on the gulf coast. look at the video. our camera crews from cnbc's production team captured the moment the lights wentback on in new orleans around 8:00 p.m. central time last night. the moment the power was restored to some buildings and some traffic lights. that area had been pitch black at night every night since ida hit. in the meantime, the remnants of ida ripped through the northeast sparking tornadoes and widespread flooding. bill karins is here with the forecast and targets bill, we describe this as the

remnants of ida. don't let that wfool you with th strength >> thiswas a $1 billion disaster in louisiana and mississippi. we may have added a couple billion more to the damage in pennsylvania and still occurring near the rivers in new jersey and new york city. we ahad over 11 million people i a flash flood emergency. we lost more lives last night in the new york city area in the storm than landfall in louisiana. when you see the pictures today. the pictures are incredible. we had two tornadoes one hit in annapolis and wone in central new jersey that was just outside of the philadelphia area. here is how it looked and played out. the nubmbers are insane the amount of rain that fell in a short period of time

unprec unprecedented. n newark airport it was widespread in pennsylvania and connecticut and areas of boston. what does this mean? this was the most rain recorded in one single hour in central park those records go back 156 years. any thunderstorm you have ever seen never dumped this much rain in one hour. newark was 3.24 inches of rain other totals this was a 1 in 500 year rainfall event to put it in perspective, going into every single year, .2% chance of occurring. most of us should never see this again in our lifetimes as far as the rainfall totals went, the fifth wettest day in new york city. the rainiest day in newark's history. we had the high rain in the region we knew it could occur it happened over the top of the highest population center.

what are we dealing with the rain ended in boston it is raininghard in cape cod and in maine we still have a lot of flash flooding from the last three hours. everywhere they are telling people to stay off the mass pike and up to boston becky, you get the idea. this was a flash flood where a lot of the water will be gone this morning in areas, but thousands if not hundreds of thousands affected in their homes and cars the highways are littered in the new york city area with vehicles >> it was a mess coming in this morning. a bigger surprise. bill, thank you. great to see you. >> okay. coming up, we're going talk about the return to work not after last night's storm, but in general and whether double vaxed will count for anything with

employers or a mask or not return to work by january? and later, former facebook privacy officer chris kelly joins us to talk social media and vaccines and misinformation. not from him we'll talk about it, not actually get it from him, we hope we'll be right back. >> announcer: currency check is sponsored by interactive brokers. the professionals gateway to world markets.

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xfinity xfi. so powerful, it keeps one-upping itself. can your internet do that? after pfizer's covid vaccine received full approval from the fda, employers are struggling to determine if they should mandate vaccinations to return to the office this gets complicated with the booster. should companies require two shots or three shots or more we have the harvard business professor and author as well as tom gimbel tom, let's start with you on this this became a tricky question. now you see the breakthrough vaccinations and people doing everything to protect themselves and putting themselves and families at risk it changes the scenario?

>> i'm not so sure, becky. a year ago, we thought we had to have vaccinations or the president of the united states would say the government agencies would have vaccination only or state governors would say nursing homes have to be vaccinated only to work in hospitals? it is evolving we are in a state of evolution the booster shot is the next phase. like everything else we do, we'll prejudge and pre-worry and get concerned about it if we let things take its course and see how things go and progress with the changing seasons in the fourth quarter of the year, my guess is there will be a requirement for the third shot, the booster, just like two vaccine shots. the companies that want to be vaccinated will stay that way and include that the ones that don't, won't >> tom, you are probably talking 25% of companies actually requiring it that may be will start to grow as you have seen full approval

that comes in. we haven't seen too many moves th to this point. >> we are talking about the large companies that get public attention. when they make a rule, everybody talks about it a lot of small and medium size businesses that get lost in the shuffle that we talk about on jobs friday that we look at and say what are those companies doing and what do they manufacture and distribute a lot of them are vaccine only a lot more are out there than what we are seeing from the fortune 500. >> sidal, this is a contentious issue on both sides of the aisle -- on the issue, i should say. >> it is the voluntary policies the government and companies have been pursuing has reached its limit. the only way we will get a hold

of the virus and control it is if companies and employers get in the mix and begin to mandate the vaccines especially thepfizer one has been fully approved by the fda this is important especially as we think about the return to work policies. we need to make sure and employers need to make sure everyone feels safe and the assurances can come if you have high rates of vaccinated employees. >> a lot of employers are reluctant to do this because they are already having trouble finding employees. >> that is the greatest dilemma at this point. this concern of do we turn people off if we mandate the vaccine. what will happen to our labor? the flip side to this is many employees say we will refuse to go to work if we don't feel safe there. how do you think about this?

this is a matter of compliance and physical safety and employers have the responsibility to create conditions for people to be safe, not only themselves, but ecosystem. families and children under the age of 12. vaccinations is no longer a matter of choice optionality, et cetera, it is a matter of health and progress at the firms. >> tom, i will say it is a little complicated some of the decisions are made by, you know, higher ups who are not even in the building at this point. when do you think things evolve and move and follow this guideline that you set >> we're looking at really just an influx of everything at the same time. we are coming in and seeing a spike in so many states right now. at the same time, we are seeing record earnings and profits and coming in to the infrastructure package of $1 billion and what

that will do to the economy. i agree with tsedal with the standpoint of we have this really interesting intersection of employees who want to be safe, simultaneously a lot of them don't want to come into the office, but if they do, they want to be shown that everybody here is vaccinated so you have a higher chance of safety. i don't think things settle down until the spring of next year from the standpoint of are we going to deal with covid on an ongoing basis and what truly happens with the delta variant the studies show if you have the vaccine, you are less likely to be hospitalized. >> agreed. look, i understood allowing people more personal freedoms before all this, before all of the breakthrough cases that they bring home this is a longer conversation. >> becky, everyone still has personal freedom you don't have to work for the company. you don't have to go in.

you can quit >> agreed. there is the personal prefreedo. tom, tsedal, thank you see you soon. >> thank you i didn't realize this. cruise-enator, the movies delayed. "top gun maverick" and "mission impossible 7" delayed again for a lot of reasons delta continues to spread. the impact on amc and streaming stoc a eryinel wn ksndvethg sehe we return. up when everything shut down. ♪ but entrepreneurs never stopped. ♪ and found solutions that kept them going. ♪ at u.s. bank, we can help you adapt and evolve your business, no matter what you're facing. because when you close the gap, a world of possibility opens. ♪ u.s. bank.

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shares of amc theaters are taking a hit yesterday after recent announcements from

studios of box office delays six major movies are now delayed to 2022 including tom cruise's next films joining us now is sara fisher axios media reporter we got important things to talk about, sara. but i just couldn't help thinking that tom cruise insisted on val kilmer being in this remake. how do you do that how does that work we all get old we've all had tough times. let's talk about the real subject here but god bless him for doing it he insisted val be in it and i think it's nice. >> tom has a lot of leverage now when it comes to movies. it doesn't shock me that studios

go with it >> what's causing this, people can't go to theaters or you can make the movies? the content is being produced, right? >> the content is being produced there were some production delays think about this one of the reasons we can imagine you'll move ""top gun"" is that memorial day slot you may want to move it into another slot in 2022 that's a little bit of going on. delta is scaring people off. you have a lot of people who are looking at cases rise and deaths rise and think is a movie worth it especially now i'm looking at these at home the same thing >> yeah. what can you tell me about the streamers that have so much, we're talking about movies, streamers that have so much on the line in trying to distinguish themselves in this crowded field. we know there will be winners and losers and content, when dr.

death suddenly everybody had to get peacock. it matters if you have a hook. if you have something. are they being made right now or is production being disrupted with delta >> they are still being made there are a lot of precautions being taking place for me as a reporter working with studios, hbo, we have a show with them you have to be vaccinated. take all the covid precautions they are being made. maybe slower what you said, joe, is huge what will producers do. they see every single movie release as a stress test on the box office which will determine whether or not they can put more things to streaming, whether or not they should. the studio i'm watching right now that is really looking at every data point is disney they have a big labor day hit coming up. that's expected to break records which is unbelievable. labor day weekend is usually not that great if they think they can do well in the theater, they might not

hold as many things on disney plus for the streamers right now they are looking at the movies and saying what does this mean for our streaming and profits if they think they will make more money, especially long term, by the way, once you put things in a hybrid with these, your second week at the box office typically goes down. will they make more money not putting things on streaming right now they might take that chance >> somehow we're already on top with what we're going. you got any suggestions? you know i'm going to ask you that i tried to watch the new steve martin/martin short thing. i couldn't get through the second episode >> i have to say very episode. it's a huge hit for apple tv excited to see where that's going moving forward >> tim lasso, season 2

>> i missed that "the morning show" is coming back martin short was in that too which is a weird cast for him. very good. thank you, sara. you know, big screens and home made popcorn theater has a lot against them i'm pulling for them because it is, you know, it is like a date and fun to do that but seems like a lot of head winds >> i'm with sara, tim lasso is the best thing on tv can't wait for the next episode. >> based on your life choices, the way he reacts. s&p 500 up more than 20% on the year one of the street's tough strategist sees a correction on the way. we'll be back with mike wilson ” joe esposito]

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delivered to your door, sold at a fraction of the price, with direct access to an audiologist whenever you need it. better hearing has never been this easy. try lively risk free for 100 days. visit listenlively.com ida strikes again after pounding the gulf coast with torrential rains and flooding. the northeast facing what remains of the hurricane with scenes reminiscent of superstorm sandy. live report is minutes away. a great start for the markets as we creep towards tomorrow's key jobs market mike wilson will join us with his call on the second half of the year vaccines and misinformation on social media. facebook's former chief privacy officer chris kelly will join us on that topic. the second hour of "squawk box" begins right now.

good morning and welcome back to "squawk box" here on cnbc i'm joe kernen along with becky quick. andrew is off today. remember yesterday we were up triple digits and dow ended up dow but dow is up 60 points or so today nasdaq hit another new high. indicated if it closed up 32 it would be another one a very fresh new high. and the s&p indicated up, about eight points and ten year if you're following it, got above 1.3 yesterday. and we'll see whether, you know, see whether it is now in some type of upturn we had people say 145 is an important overhead level for

interest rates >> let's get to this moaning's top story. remnants of hurricane ida inundating the northeast with historic rains widespread flooding, tornadoes and multiple fatalities. contessa brewer joins us with the latest rope we're getting video coming into us from multiple states in the northeast and it looks really bad out there we just had an update from the head of the mta, that's new york city's mass transit service saying that full subway service is expected to resume by this afternoon. but as it stands right now there's limited service throughout the new york city area the subway is still closed down. train lines are largely disrupted. amtrak has cancellations and people are showing up at the train stations you're looking now at video coming to us from, from down below the subway system yesterday where the water was just gushing in, a shocking

sight in new york city we understand that there are limited flight operations resuming at newark international. the parking lots have re-opened. but the airport which is united's big hub on the east coast, the airport is warning that access roads leading to the airport may actually still be blocked and may have trouble finding your way to the airport. but as it stands there's some resumption of service this morning. there are delays in philadelphia on the mass transit system there called septa, cancelations and some delays as well because of the flooding that we saw in philadelphia and by the way, this area is now under a coastal flood watch and warning because the delaware river is not expected to crest until tomorrow the schuykill river the forecast there is it will crest 10 feet above flood stage so even though the rain has cleared out and

expecting beautiful weather in pennsylvania and philadelphia, that could be a remaining problem for flooding there have been evacuations in johnstown near a dam that's considered high-risk we talked a little bit about newark airport and the flooding that's happening there blocking the train station. many, many apartments and houses having water damage there. and then in merrimac, new york, water rescues this morning just last week when tropical storm henri came through there was flooding on the major highways and roadways through westchester county, the county north of new york city where many people liver and then come in to the city for work. but you can see that they've had to be out in rafts and boats this morning rescuing people from the waters out there. we continue to monitor all of this coming in but, again, guys, what we know at this point is that new york city police say seven people

dead in flooding in new york city it was a once in 500 year rainfall event and it's not over yet because of those rising rivers because we're not expecting the crest until later tomorrow >> contessa, really it caught us offguard the severity of the storms, the rapid ne of the flood, we got the flood alerts last night on phones most people in the area did too along with tornado warnings. the death toll here already higher than when that store came ashore down in the gulf. >> yeah. it's problematic one of the differences is that people in the gulf know what hurricanes are like and they know how to brace for it we're somewhat unprepared for it especially, especially in these urban areas. in philadelphia, in new york city we just typically don't see flooding like that even the at the street level because we have tax reform drains that carry that away. we saw during superstorm sandy major flooding in this region but that was largely because of

the storm surge. not because of a rain event. remember in hurricane harvey in houston we saw days and days of rain we saw that flash flooding and what can happen when you have persistent rainfall. what happened here is that henri came through, saturated the ground with rainfall, central park broke records for ainfall and then we almost doubleled what we saw with henri last week, central park saw more than three inches of rain in one hour newark airport reported the same that's an unbelievable amount of water in a short period of time. for first time ever the national weather service issued flash flood emergencies for new york city that is something that new yorkers don't know how to deal with, they don't know what to do, and years ago in reporting our vulnerability to flooding, becky, i learned surveys were done new yorkers would ask where do you go in a hurricane, to the

subway tunnel not realizing water can trap people in there the video we saw of passengers waiting for trains as water are flooding in standing there and watching it shows how shock and ill prepared we are for that kind of water event. >> and in a situation like this where you had the flash flooding alerts that went off and then in pretty quicksuccession tornado alerts going off tornado alert tells you to go to the basement tornado al-- flash flooding tel you to get away from the basement let's get to dominic chu he has some early movers in the pre-market >> good morning. first of all we'll start with a big earnings report from s&p 500 company and that's hormel. those shares are lower on thinner trading volumes. this after hormel the big

package food company behin spam, chili, other big brands come out with earnings that matched estimates. they cut their full year profit forecast the company saying all parts of their business have been impacted by inflationary pressures. also watching what's happening with electric vehicle makers like tesla, like chinese makers like nio tesla down, nio unchanged. we're watching what's happening with chip stocks out there like st micro, like semiconductor because of that continuing chip shortage that's what's making tesla push back its launch of roadster until 2023 keep an eye on those then we'll end here with the crypto currency side of things because bitcoin prices did go

above that 50,000 mark earlier on in this trading session so far. currently just a hair below, 49,930 ether up another 1% just below that 3800 mark that by the way, ether has huge moves over the course of the last several months here coinbase global on the trading side crypto currency is up 2% and robinhood markets gets its trading revenue from crypto currency up as well. interesting trade. yep. been watching it, dom. thank you. we'll have more on the markets with morgan stanley's mike wilson coming up in the next half hour. when we come back moderna asking the fda to authorize a booster of the covid-19 vaccine. we'll speak to former white house policy director dr. patel

about that the return to school and why she says the government needs to step up and top the confusion around booster shots right now as we head to break news out of pfizer the company announcing the start of a phase three trial will begin in adults over 60 for its investigation vaccine against rsv. "squawk box" will be right back. this is hannah, she's a posh virtual receptionist at the ready 24-7 to answer your calls and assist your clients. you can't be in two places at once. let posh answer. posh virtual receptionists.

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welcome back, everybody. moderna is asking the fda to evaluate its covid-19 vaccine for use in a booster shot. for more on that let's welcome in dr. patel fellow at the brookings institution and former white house health policy director her latest op-ed for "the washington post" is titled the confusion surrounding booster shots could paralyze vaccination efforts. the government needs to step up. dr. patel i'm glad you said this because i'm confused i don't know who is eligible, when you're allowed to do this the first said eight months maybe, then six months what's happening >> becky, you and me both. we have patients coming forward saying we heard pfizer said six months and that's true, in fact. the supplement to their bla for their booster shot is five to six months and then on top of this we have confusion with immuno compromised people who need a third booster

right now you could pretty much walk into a pharmacy and because of this confusion receive what you might think is a booster but the pharmacist might be thinking of giving you a third dose and in the end nobody quite knows which one was the appropriate schedule >> what is the difference between a third shot and a booster? >> there's no difference that's exactly right the shot itself is exactly the same shot as the first and second doses for pfizer. moderna as you mentioned will cut the dose and suggesting that half doses of the first and second dose. the difference is timing the first dose for those immuno compromised need total doses to be considered fully vaccinated compared to people who do not have one of those chronic conditions and should wait at least it seems like six months from the second dose but, again, that's very murky because now we got this september 20th date that feels a bit arbitrary and we don't quite know what will

come on september 20th the fda has to take action and the cdc has to take action for recommendation but it feels the entire country is walking around trying to figure out when to get their boosters >> i had one relative who got the third booster shot because of an immuno compromised situation and then my next question was should the people living with her also get a booster shot to make sure they are not bringing something in? what's the answer to that >> studies really show that particular individual who took the third dose to get that full vaccination series we do not need to vaccinate the other household members if they don't have chronic conditions because their first j&j or first two doses of pfizer or moderna were sufficient to give them an antibody response. it's a small population, 5% that doesn't generate that much antibody response. but there's more people wandering around and wondering if they are immuno compromised, including people who are older >> what if you're somebody over

the age of 70? >> this is the data that's coming out of israel and more emerging data from the united states studies do point to immune egypt decreasing for people over the age of 60 and even more so over the age of 85. that's why the cdc in their commentary this past week said maybe we should be starting with boosters early for older people and long-term care facilities and health care workers and that's not an unreasonable framework. we're all talking about different frame works i can walk into a pharmacy today and just get a dose >> it seems we've been talking about this came for months that maybe we should be doing this, thinking about doing some of these things we still don't know the guidance i think people are taking it on their own initiative >> the peril of guesting something too early let's say sooner than six to eight months -- >> a lot of people who are older

are past six months they are coming up on eight months. >> the guidance is written for those immuno compromised individuals pretty broadly it's something to talk about with your physician. not one reasonable especially if you are older, have a high-risk of dying and being hospitalized and with the data we have it's certainly a conversation i've had with patients. again we're doing this without the fda and cdc guidance i would say for most people getting the shot too early that booster shot too early could disadvantage you six months after that you want to have the spacing so you have as much protection over what we think is at least a 12 month period maybe longer. so that's why. i agree with you i had a conversation with my parents where i wondered should they wait until september 20th >> right >> and there's a lot of good reasons that i think especially for people over the age of 60 and then another group of people we saw other 85 who had higher

rate of hospitalization with vaccination. we'll see more data from the cdc that supports that when will we get that clarity from fda and cdc about timing. in the meantime have a conversation with physician. it could be that you on september 2nd it might be reasonable given your circumstance >> why do physicians supposedly know more about this than the fda and cdc? why is it taking so long i understand these are moving targets and things are happening. when left to their own devices i can't imagine most people have a better idea of what's happening than the people studying the data at the fda and cdc. why is it taking so long >> a couple of things. pfizer had put in their supplement to the bla just recently moderna just put in that reduced dose the fda can't do anything until they have those applications we've been talking about boosters for a lot longer than we had those applications put in the third is there's this tension, i do believe there's a

tension between what's happening in the real world and paid pace with immunity and regulatory cadence we have to follow. people do not expect to see higher rates of hospitalization amongst vaccinated people, higher rates of break through infections vaccines are working to be clear but we're starting to see glimpses especially out of israel and u.s. data that we should be getting a much more coordinated effort if you look at israel, starting to see the benefit of their booster campaign so there's a lot of good reasons for us to have these conversations now and not wait until september 20th which, again, i'm not certain what that arbitrary cutoff came from >> it's not just booster shots with this. it's the same sort of thing that's happening with kids one age 12 as the mother of two kids under age 12 who can't get vaccinated now and the cdc telling doctors

they can't prescribe this off label until they go through with these things your point is right real world data or real world situation is moving much faster than these bureaucracies are able to keep up with it at what point will it be okay for physicians to prescribe off label. once we see the trial data from pfizer that's expected this month? >> yeah. i do think that, again, the benefit of having that kind of full bla, full approval is that ability to do things off label and i think we'll see moderna's full approval soon and then some version of that for j&j. i know parents are waiting at the same time i will say this for the fda, you don't want them to rush evaluating children. >> not rush. show us the data and let this be a situation if you have a very high-risk child the physician has the room to say okay we feel more comfortable with this than we do risking the delta variant when cases for kids were up four

or five fold, more than 200,000 in the week that ended august 26th >> we're seeing increasing pediatric infections in those states where we're seeing plas to or decreases in the delta infection. children not getting hospitalized at the same rates as adult but that's no excuse not to take action especially with schools re-opening. >> dr. patel, great to see you whenever i read anything, becky, the manager of the yankees, his dad played for the reds just reading he quit the national back office >> because of no vaccination >> he's 73 years old and will not get the vaccine. i have to just retrofit my to even understand, trying to understand that.

if i were 73, which i'm not, but if i were, but if i were, i think i could run a ten second hundred to get to the guy with the shot, i think. coming up morgan stanley chief equities strategist mike wilson we have a new picture of mike. very difficult to try to figure out what's going on the stock market he doesn't look like that any more anyway he'll join us why investors need to be in defensive stocks or defense stocks sorry. not defensive. and financials but up next amazon's push for consumers to buy now and pay later. is it a boon for consumers or disaster waiting to happen we'll wait to hear both sides of the debate in this week's on the other hand yes, that's the first one after the new year, at least for the jobs report. >> announcer: time now for today's aflac trivia question.

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>> announcer: now the answer to today's aflac trivia question. what taste, scent and nutrition company has a subtropical research facility located in new jersey the answer: international flavors and fragrances the facility located in union beach, new jersey is a 5,000-square-foot greenhouse and botanical garden which can maintain tropical and subtropical temperatures zones for more than 1300 varieties of exotic plants. amazon says its teaming up with buy now pay later company affirm a month after square said its snapping up its rival after pay for $29 billion. so is this new wave of lower interest credit a boon to consumers or a disaster waiting to happen? john fortt is here to weigh on that

>> buy now pay late certificate great. there are a lot of skeptics out there. our consume economy runs on credit and a lot of people carry high interest credit card debt buy now pay later they charge simple interest instead of compound no late fees instead of cashing in on consumer mistakes they make a commission from the retailer these companies get the fee from the retail they do charge interest just not a ridiculous amount and they use the power of software to make smarter decisions about who gets credit and how much they pay yes, this is a business. there's interest 0 to 30% depending on the product and person but none of that stuff where your balance keeps ballooning over time don't think of buy now pay later as a riskier category. we've been doing this for a long time with these services we'll be paying less.

>> but i guess with that you're assuming that people will actually use these services responsibly. what if this is just another way to brother to stack on top of debt that people already have. >> yeah. on the other hand, it's a noble vision buy now, pay later like a credit card but nicer no late fees some of us know what will happen one downturn destroys models and people don't know how to act yes this seems to work now when the next downturn hits a lot of these buy now pay later services will not get paid their models were built on bull market data. when borrowers default and lenders won't lend them capital, they won't make it we saw the scam with the stimulus check some people if you don't charge them late fees he they will pay them late. this new layer of credit may bury us. real solution for the american

consumer who is too far debt isn't better terms is escape from debt as a habit buy now pay later is not an escape it's a love affair. >> oh, my gosh you know this will end badly for some people but at the same time if you can get consumers access to money that they needed to buy things they want, at better rates doesn't seem like a terrible idea the big question is what will determine the buy now pay later company survives >> their software models will come under scrutiny and then that access to capital i talked to the co-founder of paypal of course peloton is one of his big customers. they've done will with him your software good enough to figure this out when the economy turns down he says yes >> and he's no dummy >> still to come this morning

what's moving markets with morgan stanley's mike wilson we'll talk to the ceo of the mta about last night's flooding, resumption of service and much more stay tune you're watching stay tune you're watching "squawk box" and this is cnbc. get ready for it all with an advanced network and managed services from comcast business. and get cybersecurity solutions that let you see everything on your network. plus an expert team looking ahead 24/7 to help prevent threats. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities. ♪ ♪ we are the next. the next generation of visionaries. rule breakers. game changers. and world beaters.

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announced in the medical sector. baxter is buying hill-rom for $10.5 million. the two sides were close to agreeing on a deal the transaction is expected to close in early 2022. baxter international shares are up by half a percent markets kicking off september with a slow start. the s&p is up 20% so far this year our next guest says he expect as 10% correction he at the end of what he calls the mid-cycle transition joining us now to explain, mike wilson, chief investment officer a and the last time you were on a

month or so ago you released your target on s&p to a level that was still well below to where it was trading at the time and we haven't made very much upward progress on the s&p since then i'm wondering if you can update us, is your scenario playing out in your mind are you seeing some weakening indicators that make you think that you will be right about this >> yeah. we do. look, the mid-cycle transition, joe, is much about picking the right stocks and being in the right parts of the market as it is about figure out what's going on in the s&p 500 and in that regard the mid-cycle transition played out perfectly there's been a massive rotation away from locally high quality stocks, early central recovery stocks performed small caps have lagged that's played out nicely we're right on schedule for the finishing move which is typically they eventually get to the quality stocks because they are the ones that are now

expensive. as far as the fundamental evidence goes since we spoke last absolutely. we've seen consumer confidence confirmed. the consumer is fading a bit not a recession but the consumer is tired there will be a payback on demand overnight our economics team lowered their gdp forecast from 6.5% to 2.9% for the third quarter. they kept their fourth quarter number the same but there's risk to that probably if delta doesn't fade or my view is that delta is a bit of a trap people are saying oh, the slow down is due to delta the slow down is not due to delta exclusively. what it's due to is we overshot on the upside. now we'll have payback that's okay. that's normal in the mid-cycle transition as it always happens. the difference this time is the amplitude is greater the upside last year was bigger

and now the down side and slow down part will be bigger and that's our view and we're sticking with it >> and the 10%, you don't even necessarily think we end the year down 10% from here. your best case is 42.25. you figure we can have a 10% correction down to around 4,000 or so or 4100 and then close above that and then your best case is 3800 year end that would be, that would be a 10% correction from here if we close there for the year >> let's clarify a few things. 4,000 base case is for year end. 4225 is for march or may of next year look, this is not -- let's not pretend we're at that percentage let's talk about what we can try to figure out here which is look

the market is a little bit expensive. everybody knows that we know why. there's a lot of liquidity we've been in an concentrated case for earnings and growth but now it's turning the fed will the taper later this year and have a deceleration in growth and negative earnings vision graph so that combination should get you a 10% pull back between now and the end of the year to next year it may overshoot that and we end the year at 4,000. who knows. the risk reward is not breaking the index level. that's where everybody is crammed into and now we're going to see, you know, probably quality stocks get hit and some stocks have been hammered are going to be okay so consumer services is a good example. that's an area where we haven't over consumed. maybe some re-opening stocks people go back to those areas and those defensive areas.

>> you said the correction could be caused by, i don't know, sound like "game of thrones" of ice or fire. if inflation gets hot or we roll over growth wise and we go down. what is your -- how do you think the odds are for those two and how would you position yourself coming out of that correction, you buy different sectors of the market depending on what caused the correction >> you're exactly right. look, i will share with you and i don't think is a surprise. most people are struggling to find good value in the market. and we found that. so they are also struggling for a narrative. the narrative could go one of two ways we could see a situation where delta is a bigger drag and see a

r rea rea reacceleration the other way is growth disappoints a bit, rates stay where they are, they go below a bit but really this is about the growth expectations coming down. that will be a broader type correction that will eventually hit those quality stocks we think it's more of an ice without come in the short term not a recession but a mid-cycle transition which leads to a deceleration in growth i believe the thesis is correct. it will play out on the index level later this year. >> all right, mike, thank you. actually, how old is that picture we have of you can you send us a new one. i for a long time used head shot that was 15 years old. >> i don't want anyone to update my head shot >> i didn't think people would

notice yeah, see. mike how old are threw you're like a senior then? do you have a monitor? >> senior in high school >> it's about five years ago >> excellent for me, the sad thing is, becky, when i'm looking out at things i think i look like that still you know what i mean that's the self-image i have then somebody takes a picture and it's like i wonder whether the camera is accurate or, i don't know mike, thank you. >> we all suffer from the same thing. >> the alternative to ageing is not great. >> you're right. >> so, let's roll with it. rolling rally goes on. thank you, mike. see you soon >> when we come back is vaccine misinformation on social media holding people back from getting the shot we'll speak to facebook's former chief privacy officer about

that quch more about that too "sawk box" will be right back.

welcome back to box. couple of stocks to watch this morning. different story than what? than we're watching? different story from something for chargepoint. that stock is jumping this morning. that company make charging

systems for electric vehicles. quarterly report beat the street and guidance was strong. >> five below is what's difference r different >> when you put five below first. five below shares are under pressure five below shares, the retailer is earning top estimates above revenue. you wonder why we don't read the teleprompter >> five below is now more than 5% below >> there you go. excellent. coming up, chris kelly on the role of social media getting information about vaccines a bad thing on think about what you're reading some people have no idea.

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historic rainfall overnight in the northeast, some shocking videos of subways and streets flooded in new york city, and as of 5:30 this morning 7.2 inches of rain recorded in central park joining us right now is janno lieber, the acting chair and ceo of the mta, and this was a situation where you were watching these videos. this isn't just flooding, this is flash flooding like you only expect to see out in canyons and

the desert what happened? >> good morning, becky you're right there was a historic rainfall last night, the first time flash flood emergency declared in the new york area. it really took a toll was 3.5 inches of rain fell in one hour basically between 9:00 and 10:00 p.m. that overwhelmed much of our infrastructure roads, bridges, so much else it took a toll on the mass transit system as your viewers have seen. we've done a ton of investment in coastal resiliency since superstorm sandy and that paid off. our underwater tunnels were able to pump and pumping capacity really did very well but in these higher elevation areas flash flooding coming from the overwhelmed drains and sewers at the street level found its way into the subway system and knocked us out for a few hours. >> this is pretty different than

sandy where sandy was the tidal surge that came in this was the amount of rain that got dumped on the region the pictures you see make it clear that there are going to be quite a few disruptions to service. where do things stand? where is the damage? how long will it take to get things back up and running >> we're very proud of the fact we're running service this morning. there's limited service on the leather lines for new yorkers who know that. and we expect to have a lot of service by the afternoon on the subway buses have been running nonstop. the bus drivers were heroic. they got a lot of people home. they steered around those abandoned cars and ponding, and the bus system is working well the commuter railroads are spotty metro-north is really out of business today that's our northern suburbs commuter rail line long island railroad is coming back well but has some limits. the bus system bailed us out yesterday and the subway system is coming back quickly by later

today. >> to see flash flooding like we're looking at right now that's pretty dangerous situation when you're standing on a platform like that. is there anyway to update people let them know when they shouldn't be on the platform when something like this happens or is this a case, as somebody called it earlier a once in a 500 year storm you can't do anything to prepare. >> the intensity of that one hour period was completely unanticipated and not forecasted by any of the professionals. what we generally do is, you know, there's a recognition that there's going be some water entering the system. we have to work with our friend in the city government to make sure street level drainage is a little more capacity so we don't in these new climate change flash floodingera situations coming as much down in the subway system. the gravity does its thing and

the subway system is a shallow system not a submarine we need to work with city government >> there's your line it's not a submarine it's a subway thank you. janno lieber is the acting chair and ceo of the mta thank you, becky >> okay. shifting gears entirely according to cdc data about 28% of the population eligible for the covid vaccine have not received a single dose misinformation on social media could be fueling vaccine hesitancy. joining us now is chris kelly, former chief privacy officer at facebook and it's good to see you, chris. i like that former i would be former too. >> thanks so much for having me, joe. >> if i had to deal with the daunting issues, and it's not just -- the vaccine is just one of a myriad of issues that put

so much onus on the company itself that i don't think when it was being thought of or founded that you knew that these immense problems were going to come and i really don't know, i don't have an answer how you deal with it >> there is an unbelievable amount of misinformation out there. at the beginning of the covid crisis facebook tried and i think largely succeeded in taking a leadership role about getting good, solid information out. and, sustaining that effort takes a great deal of focus and i think there's a bit of concern that maybe they lost some of that right now i do the think that there continues to be a dedication to making sure good information gets to people on the part of the company. succeeding in an era when so many various players like to spread misinformation continues to be an incredible challenge for facebook, for twitter, for all social media and for mainstream media too in a number of different cases.

>> there's no doubt. but then the flip side of that is -- i'm not saying there's alternative facts but in the political world one side's misinformation is the other side's fact. and to have somebody who have their own feelings to be in a position to decide which will make the cut and which isn't going to make the cut, i don't know what's worse for me i almost like to see the misinformation and judge for myself than have someone in a position who i maybe disagree on everything else to have them censoring or filtering what i'm able to see. we have this discussion again and again. >> determining no, sir trust factors for individuals in media and how they build that into their own providized feeds and the way they approach the information diet that we all have is one of the biggest challenges of the social media age. when you have this radical

connectivity, when you have a model based on people's friend connections and then on interest graphs too, you got the social graph and interest graph, facebook and twitter are constantly trying to broker those to present with you the most relevant information to you at any given time. when your friends or when people that you have political affiliations with may not have all the facts, that poses an incredible challenge for the companies to figure out how to present that, and how to treat the evidence and keep it relevant and also to be well informed i think you've seen in the past couple of years a real reckoning on the part of facebook and twitter and some of the other players too to think about how not spreading misinformation particularly that has more immediate harm, if you have a

horse dewormer that's spreading in a lot of different places and everyone is saying it's safe and your feed is saying it's safe and it's not you know it's not. taking action is something that the platforms have gotten a lot better at. >> we have individuals that represent the adl or take your pick of advocacy groups that say it's still woefully inadequate and there's stuff on facebook that's just horrific and so obvious that it should be taken down but then on the flip side you might have the taliban, you know, totally disseminating all kinds of propaganda and former political figures are not on the two sides of the spectrum. >> this is one of the areas where facebook has tried to innovate by creating the oversight board and to have an independent body of variety of thinkers about free speech issues around the world and

misinformation issues around the world opine and help the company review this from an outside perspective. i think that with the continued prevalence of election misinformation that you're going to see the company most likely experiment with a different board that takes on these issues from an election standpoint, there's been discussions about that, that have become public. i think the relative success of the oversight committee so far that you'll see some discussions of an electoral commission giving input on that importantly facebook, while setting it you didn't want to call at any time facebook oversight committee they wanted to allow for the potential that others would participate in it over time and i think you might see the same thing for the electoral commission >> should we change any of the laws >> this is where it's hard to imagine a change in the law that would actually get the results that anybody is talking about. that's one of the things,

section 230 became a political football in a number of different ways but no one has come up with a proposal yet that doesn't either sort of encourage a lot more corres censorship or encourage a lot less section 230 is not really the problem at the end of the day. it's the first amendment >> please don't let them come up with their -- we got run don't do that. i'm not on it anyway i don't care chris, thanks for your time. >> thanks so much for having he me when we come back the latest on the destruction in new orleans with walter isaacson and how biden's infrastructure bill can help cities from natural disaster we're expecting the latest read on the jobless claims coming up in the next hour we'll bring you those numbers as soon as they cross right now dow futures up and s&p

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talks. market alert futures pointing to a higher open after stocks got a slow start to september we'll talk to jeremy siegel. plus breaking economic news. key leader on jobs 30 minutes away final hour of "squawk box" begins right now good morning and welcome to "squawk box" here on cnbc live from the nasdaq market site in times square i'm joe kernen just checking. yeah times square out there becky quick is here. andrew is off today. u.s. equity futures are in default, higher mode the new highs in the nasdaq and s&p and dow are getting back most of yesterday's small selloff, small pull back i don't know what you call it.

it was almost background noise treasury yield a quick look not a lot happening. below 1.3. 1.28 making headlines this morning, that merger we were talking about, i guess it was last quiet, hill-rom holdings is being bought by backser international. price tag is $156 a share, cash about $10.5 million. pfizer is launching a phase three study of its vaccine candidate against rsv. the trial will focus on the efficacy and safety of a single dose in people ages 60 and over. currently no vaccines available for rsv which can cause severe respiratory problems in young children and older adults. and we're waiting on a number of economic releases at 8:30 a.m.

weekly jobless claims. july u.s. trade deficit also coming and a revision to the second quarter productivity then at 10:00 we'll have factory orders >> let's go to chew for the movers >> let's start off with big earnings report from this morning. hormel in the last hour we mentioned. we look at shares of signet. stock is up 7% pre-market. company comes out with better profits, better earnings and expectations and raises its full year forecast driven in large part because of an almost doubling in its sales growth that stores opened for at least a year watch signet jewelers. you mentioned the hill-rom deal with baxter. a company that we don't often

talk about, quanta services. it is buying a privately held maker of renewable energy infrastructure projects called bla the tner quanta services is one of the biggest makers of electrical grids for utility companies and consulting behind those things it's up 3% then we're still keeping an eye on these chinese internet companies. we got news alibaba will spend the equivalent of 15 or some-odd billion dollars in support of the chinese government's common prosperity plan, a sign that many in the big tech companies are getting more behind the government with regard to its moving in the direction of trying to kind of increase some of the common prosperity elements whatever they are alibaba shares up 3% in the pre-market traded.

pinduoduo, baidu is up a lot of those big mega cap technology companies still getting a bid but down significantly from the highs we saw earlier this year. back over to you >> in the green. and they are getting behind the government's program after the government strongly suggested that they do just that >> yeah. it's an interesting commentary in a command and control type of economy and market where the government is the end all, be all, these companies get in line when they do you can see the moves higher again for stocks like alibaba and baidu they shed blillions of dollars each whether these companies will get a bounce the sentiment is shifting near term has a long way to go to get back to these highs we saw in february >> the sentiment has to be look this might buy them a little relief and appease the

government to see them taking these steps. maybe no important pain. >> that's one thing for many of these investors in these chinese internet companies see if the government gets removed as one of those big hurdles if the government does maybe endorse some of these types of deals you could see even more movement >> we'll keep an eye on it the washington news. hurricane ida's destruction raising the pressure on congress to pass an infrastructure bill >> reporter: good morning. biden had pointed to new orleans as the poster child for the need for infrastructure investment even before hurricane ida hit. since then residents were told they had to boil their water more than 840,000 people were still outwithout electricity lat night. it's ramping up the pressure on local lawmakers to pass the bipartisan infrastructure bill which could send billions of dollars to the big easy and

across the gulf coast. there are $17 billion for the army corps of engineers priority project including 2.6 billion targeted for states like louisiana that repeatedly get hit by hurricanes. 12.5 billion federal fund to improve transmission lines and over 1600 miles are still out of service in mississippi and louisiana. the lone democrat, congressman troy carter wants to use the infrastructure bill to rebuild the power grid the same way the state rebuilt the levee system senator cassidy is asking his colleagues to support this bill. most of louisiana's congressional delegation has opposed it up to now biden will visit the state tomorrow to view the damage himself. we'll see if he's able or the hurricane can change the minds in the process for more on how biden's infrastructure plan could help

cities like new orleans in the face of natural disasters let's bring in walter isaacson he's a cnbc contributor and wears a lot of other hats. let's just start with what elon was talking about. we had senator cassidy on "squawk box" yesterday he jumped on it. talked about the damage there. he said this is why we need this infrastructure bill for a place like louisiana where damage can come pretty frequently where do you think infrastructure stands? senator cassidy is exactly right. you know, there's been a lot of other dramaticization of what happened in the storm. in new orleans the levees held that was a great federal infrastructure project after 800,000 people got killed in katrina. here we didn't get anybody killed maybe one auto death why? no flooding, the federal levees

held there hasn't been much property damage it looks bad on tv in the city itself, electricity is coming back on and i think what we just talked about is right, you have to protect the electricity grid that's the next infrastructure project we have. not just for hurricanes. that's when storms hit the northeast. that's when you have major storms we have a fragile electricity grid i've been traveling around and looking at tesla energy with elon musk and i'm looking how these power backed walls and centralized grids are coming online that's what we'll need in the future >> walter, to take on big infrastructure projects like that it's no joke because even the regulatory permits for electric companies trying to do some of these changes is not easy if you're trying to build lines that can take power generated in one area and get it to another place it takes years and years to just get approvals.

>> that's a really big problem and it's something the government just going to have to wake up and do you see it in california where there's a lot of regulation. and certainly whether it's infrastructure projects like power lines or levees or anything, better airport, better roads, there's not in my backyard, this fighting, using all sorts of legal maneuvers to fight upgrades of infrastructure something that held this country back >> in terms of what you found, traveling around the country and looking at our potential to be able to come up with these power charging stations for electric vehicles, we've set some pretty ambitious standards for how many electric vehicles will be sold in this country. do you think there's a chance we can build up the infrastructure in time to charge those electric sfleks >> yeah. you see charging stations right now all over as tesla has become the most popular car being bought these days. more importantly, i was down in

texas installing solar roof panel, just things that look just like a solar roof tile connected to a tesla battery pack on the side of a wall i think these type of things will give a decentralization to the electric grid, a resilience to it and this is the way of the future these are not things that are expensive. these are not huge projects that are billions of dollars. these are things that pay off. >> walter, this is giving grist to a whole different kind of discussion and just for lack of a better way to describe it i'll talk about the "wall street journal's" opinion pages and how they view infrastructure first how maybe the far left use human infrastructure so now it's written today talking about why ida wasn't katrina and exactly what you said $14 billion worth of levees but they didn't harden the power grid enough and that's where the problem is now

but highlighting that, maybe that's why we talk about physical infrastructure. and why, you know, the right distinguishes it from human infrastructure because -- then even further the "journal" the other day had an editorial saying we can't stop the rising tides but we can toughen up our response to what happens during catastrophic events and that was saying all this money that california spent on fossil fuel minimumization but didn't clean up the forest or bury the power lines. things we can deal with and we have green new deal pie in the sky who knows whether they pay off in 50 years or 100 years >> one thing we can say is investment in the levees after hurricane katrina. i walk on those levees i live right near those levees

they didn't even get over top this time in a powerful category 4 storm that came right up in the worst way just to the west of new orleans so i do think you're right number one focus on things that are hard infrastructure, physical projects. which means a good electricity grid the levees that were built in new orleans that protect us against category 4 storm so you didn't see that flooding that you had after katrina. nobody was sort of hit by walls of water yeah, i'm going let california figure out what it wants to do on a variety of thing but when you talk about louisiana just give us good levees, good power grid, and the airport which is new in new orleans -- >> are you for 3.5 trillion for human infrastructure if we don't get the physical infrastructure deal done? does that make sense >> no i'm in favor of the

physical infrastructure deal coming first and that's my focus. i'll be honest with you. unlike some people on cable tv i'm not clear what's on that human infrastructure thing i'm in favor of physical infrastructure whether it's rail, levee, airports, air traffic control so that we can survive when there will be bigger climate events. >> people will throw stuff at you at the aspen institute >> he's not there any more >> at tulane, all the kids at tulane, you know them. they are sweet they call me professor >> oh, my god. snooilts amazing >> you won't get that here >> i don't get it from joe >> i talked about it you're iconic. you are iconic >> i wish i knew what that word meant but i assume you don't

mean it as an insult >> do you write those books? >> he does he writes them and researches them >> i've been wondering around doing my new book on all sorts of great new innovations that are coming out of cars and rocket ships and solar roofs >> you ever watch streaming netflix? you don't have time -- i can't imagine. >> my wife is so helpful to me she watches netflix all the time >> she gives you cliff notes >> we'll have you back your most recent book i want to talk about the mrna you were in one of the early stewies. i want to talk about what you see happening just with break through cases, what we can expect next. >> let me just say real quick these mrna vaccines are just a miracle. they can be tweaked for each new variant and i just got my third

shot we're now going to beat that virus because of this mrna type technology every time a new virus comes along look at the genetic code, make something that goes right at it and make new types of treatment so we can kill the virus in our system. this is a game changer and it's exactly what we need after this pandemic >> it's ray of sunshine too to think about that thank you walter we'll see you soon >> once again, government -- he figures out the government investment side of thing not the commercialization side of. >> he follows that too. >> i applied for national science foundation grants. i know all about what it takes for research >> i know. >> i understand that but also the pharmaceutical industry when they were able to commercialize this -- >> walter would defend that.

>> he chose to highlight i know walter so well. coming up, this morning biggest stock winners and losers, the story behind the move. quk x"uned you're watching "sawbo on cnbc

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welcome back to "squawk box" futures right now, little change from last time we checked. up 63 points on the dow. nasdaq solid again this morning after closing at a new high yesterday at 43. and the s&p indicated up, 8 and change among today's stocks to watch, hormel earnings matching wall street estimates revenues were a slight beat. they gave a weaker than expected full year outlook citing higher costs. they said price hikes and price cuts should help their margins land's end, the retailer said profit margin would moderate in the back half of the year due to supply chain challenges. what would you -- if you had to just exist on something, becky, would it be spam or dinty moore

can-like meat. >> it's a tough one. do you get to mix in dinty moore chili or any other can stuff or just canned meats. >> with the spam you can make it with spam eggs >> spamming the globe. >> from long, long ago, the old "squawk" when we come back prescriptions through the new pandemic what drugs are prescribed the stnd what that's telling us. stay tuned you're watching "squawk box" and this is cnbc.

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welcome back to "squawk box" new data this morning on what drugs are being prescribed the most right now meg terrell joins us with the det details. i have some guesses but i won't make them. it's interesting lipitor? what's prescribed the most >> you couldn't resist, joe. so we have new data from good rx exclusively provided to us this morning. looking back at the trends through the pandemic of which drugs are being used the most and what the trends look like and overall you can actually start to get a picture of when people started to get

comfortable going back to the doctor's office for routine visits there's this category called low refill drugs those are prescriptions where you have to go back to the doctor for them to write you a refill it plunged in 2020 recovered in the end 2021 came back in february as vaccines started to roll out more broadly we talked with the director of good rx research about what she's seeing in that trend >> the fact we're seeing these low refill drugs return to normal means people are continuing to interact with their providers and they feel more comfortable now than they did during the pandemic to go in person, get these tests done and get that new prescription. >> okay. now into the specific category, joe. beauty and lifestyle drugs are getting a really, really big boost as people are starting to emerge from their homes and go back out in the world. specifically eye lash growth drugs. there are prescription drugs for

this specifically the brand name is calls latesse. the prescription fill rate you see the bump in 2021 the number is high one reason is that people are wearing masks so all you can see is their eyes and they want to enhance their eyelashes. you're seeing bumps in acne medicine and weight loss drugs on a less upbeat note there's also an increase in use of anti-depressants about an 8% bump in zoloft prescriptions in 2021. we talked with the president of the psychiatric association about that no surprise there. we know the mental health toll it's taken during the pandemic the stress's of the pandemic contributed to that. >> i can't believe that. cosmetic.

humira, big one. but the eyelashes? come on, meg >> so these are relative moves, joe. not like the overall most prescriptions. it's the one that saw the biggest trend. >> i should talk i'm pretty lucky i take pronexia. wsming up, breaking economic ne on jobs "squawk box" coming right back 'o waste event, which means everything thrown away by the hundreds of thousands of people at the tournament is repurposed. in 2020, wm diverted 988 tons of material and kept 421 metric tons

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welcome back to "squawk box" i have breaking news let's start our trade deficit. july trade deficit comes in at minus 70.1 billion it's notable for one reason, it follows the biggest most negative trade balance in 29 years since record keeping wyatt least up until now still stands unrevised slightly over 75 billion.

a minus sign, course initial claims 340,000. at least for the moment. it's 13,000 less than the last look 5,000 less than we were expecting and a post-covid low look at continuing claims, always a week in arrears 278 million. nonform productivity second quarter final, 2.1% not a bad number it's a little less than expected, though and sequentially follows the 2.3 that now gets changed to 2.1 what's notable is that in the depths cognitive individual in june of 2020, so second quarter of 2020, when covid was really hitting we had the highest productivity ever in 50 years. okay highest productivity in 50 years which is a good thing because we did more with le people so there

are so many moving parts when we think of productivity. labor costs, of course, 1.3% a bit higher than expected which makes sense because productivity was a bit lower than expected. 1.28 is on a 10 year over the last several sessions the low yield has been 1.27. yesterday 1.28 you get the picture. we're resting on it. took a few pac-man bites what's above us. we have a challenge. 136 to 139 still advise to buy dips in the market which means basically selling rallies in yields. becky, back to you bill grossman made some comments about the ten year. thinks it will get back to 2%. he think bond investors are in for big losses what do you think? >> you know, i wouldn't disagree with that but to me it's all about timing trade is all about timing. at the current moment i think that the current trends are more

bias to see european rates more firm than ours the spread is narrowing. but in an intermediate term for the rest of the year i totally agree with bill gross. >> rick, thank you let's bring in steve liesman with more reaction to the data we just received >> it's a good development i was worried maybe we would see a spike in claims again related to the delta variant there's a lot of stuff going on, on the back end of claims and that has to do with this weekend. millions of people will lose those benefits, about 3 million will lose the extended benefits another 7.5 million will lose southeast emergency claims that were out there going to be a hit to income and really there's a race right now going on, which is that we're taking people off of these benefits and need to replace that income and hopefully that income will be relaced by people finding work to replace that

income there could be a dip in consumer spending between the time people lose the benefits and replace it by finding work. the good news is 340,000, we're inching back down towards normal levels remember it was between 200 and 250,000 was a good economy and then we start to get nervous when it was above 250. getting back towards 350 on input into the system is telling you that there are people have not at least initially lost work and re-applying or applying for claims because of new shut downs relative to what's happened with the delta variant. it's good news we sharpen our pencils and get ready for tomorrow morning and the big jobs report expected >> big jobs report is more backward looking because we're looking at numbers for the month of august. what are we going to take out of that or is that almost written off because we're at such an inflection point where things are moving much more quickly

which is why you're doing so much other researcher and bringing us these other data points >> i think you are 100% right about that we used to be on a monthly frequency of looking at stuff and now it's like every two weeks or so things seem to change we thought the fed would come forward and announce a tapering in september then while that reporting was going on all of a suddened the delta variant started to crop up and then it cropped up in the data we're going to get a snapshot of the job market tomorrow that ends in the week that includes august 12th. a lot has gone on since then may have gotten worse, may have got end better i think there's down side risk to the 720,000 consensus for tomorrow but i until think it's is going to be relatively strong especially you have some seasonals in your favor, education workers coming back and i'm not seeing that the effects of the delta variant

have gone beyond entertainment we'll lose that big growth we had in that target sector but other sectors are still doing well, still have labor shortages. cfo survey shows they are hiring and people looking for work. >> aren't the education workers part of the seasonal adjustments? >> they are, becky it's all a little crazy. they weren't fired, then they came back. so that flatened it. there's not supposed to be much job growth in august then the story with education workers they came back and weren't actually let go because a lot stayed on during the summer everything is different with the seasonals and they will expect seasonals from last year which were whacky in themselves. >> tomorrow tune in for updated information at 8:30 and give you our best analysis of it. >> exactly it's the best we can do. it's a snapshot.

that's why we move on and people incorporate that and do the best they can with what they got. >> going to be huge. huge >> becky, did you get walter's email? he's awesome >> i've been kind of busy. >> anyway he just would like everyone to know he gives trump immense credit for operation warp speed on the cover of "time" he was extolling the patents for big companies and what pfizer and moderna have accomplished he goes on and on. he's funny but i told him, haven't you seen cable? doesn't he know that there's -- >> hasn't he seen the show back him in a corner and make him a straw man. >> caricatures >> thank you, joe for reading us his email. >> and lettingpeople know, in fact, he says he's not a

marxist. he just plays one on tv. coming up jeremy siegel. on market expectations for the rest of the year first as we head to break check out this morning's s&p biggest winners and losers you're watching "squawk box" on cnbc

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welcome back to "squawk box" futures right now up 85 now on the dow. nasdaq at a new high up 47 same with the s&p, up 10 and just quickly checking bitcoin, big surge overnight, in the last couple of sessions, some say from a move we saw in ether because of the eft craze >> let's get a check on financials august was a strong month for the sector but we've seen pressure in the last few days. banks are the worst performing in the industry down 3%. wells fargo hardest hit down 12% during the period with a 5% drop yesterday. today up by about 11 cents

in global news overnight chinese regulators interviewed ride hailing firms to acknowledge unapproved behavior. didi, meituan. didi was forced by regulators to stop signing up new users in july rivals have tried to attract users with enticing comebacks. and to make sure drivers have enough rest time as well regulators told the companies to reduce the commission they take from each driver the move is in line of common prosperity idea being pushed by president xi you heard how they are pushing other companies. we talked about alibaba making amends where they are spending money on common prosperity too and we'll see what other places they put pressure. >> joining us now jeremy siegel,

professor of finance at the wharton school professor, always a pleasure to see you. has your long term bullishness dissipated at all given the big moves that we've seen recently are we in for any type of multi-year period where we revert to the mean or it's all systems go for you still >> i think we're still in a bull market i think long term returns are not going to be as robust as they've been certainly over the last ten years and maybe not even over the last 200 years. but still far ahead of inflation and way ahead of fix income. right now what's going on, you've heard of this old expression on wall street, up a staircase and down an --

elevator i don't know when the elevator comes. it looks like a momentum trade in the sense it keeps going up a little bit every day, no real news to propel it. and a lot of momentum players piling on. we've had this before. and, you know, it's very hard to say when it might end. personally i think the inflation news not tomorrow's employment report that everyone is looking at but the inflation news which is coming a week the from tomorrow on the ppi and then the following tuesday on cpi, might be more important. if they blow-out the numbers, the fed is going to have to be more aggressive going forward. >> jeremy, there have been, you know, there's been secular bull period and have been secular bear periods and usually there's some type of

mitigating factor that ushers something like that in rather than just time whether it's, maybe could it be mistakes by the federal reserve. maybe it could be fiscal mistakes or policy mistakes by washington do you see that mix or a positive mix occurring at this point, something that might knock us off just a trajectory that we've had for the past, i don't know, i go all the way back to, really, when we -- the early '80. you remember the period '68 to '80, we had 12 years we were lower than we were in1981 or 1982 than we were in 1968. those things can happen. >> that was double digit inflation that we had during that period. i think overreaction by the federal reserve to say oh, my god we're really far behind because i don't think the

inflation news is going to moderate the way they hope, and then they start sharply raising rates a little bit of disappointment then on the earnings i'm not going to say that starts a secular bear market but certainly would be something that could cause the next significant correction in equity prices >> so do we have time, time to not over shoot do we have time to fix things? there's elections every couple of years i don't know you have concerns about how much we're spending or what's in the tax increases and the 3.5 trillion or some of the proposals? >> i have more concern on how much monetary stimulus we provided on top of that fiscal stimulus to be sure i actually think there is going to be a tax increase at the end

of the year. it's going to be put in the reconciliation it's not going to be anything as bad as what biden had put out in the campaign it's going to take back a number of the tax decreases that trump put in however not the entire corporate tax. that probably will go up to 25% but there's going to be a step up in marginal tax rates on capital gains, on the top income bracket. like it or not i think that's definitely coming down the pike this october-november in the reconciliation ace bill. when the debt ceiling, recognizes say that's on you, you got to put that in there at the same time. i think we're going see that in the fall that could also be a tripping point for the market a lot of people say there's too much, you know, disagreement to pass anything. but the democrats know it's now

or never for them because they may not hold the house next year so if they are going to take back some of those tax cuts they got to do it and i think they will >> do you think geopolitically, we talk about china every day, we worry about china, but as the entire globe moves forward in time, i mean the opportunities probably outweigh any of the concerns that we have, don't you think? american business will continue to thrive, i would think >> american business are tremendously thriving right now and i mean they can thrive in a higher tax environment again, taking back the trump tax cuts are not like the biden plan which is really a hammer and i think that's what's going on they can survive that. we're still the place for innovation and freedom of

markets. take a look at what's happening in china i mean, you know, this clamping down on the free markets and incentive, that just shows you what could happen when you don't have a, you know, a democratic government that's committed to private property, free enterprise and innovation. and it's still here in the united states. so you're very bullish at that point i'm not giving up on the international, it's so much cheaper than the u.s. when you look at valuation, i still have an international component, but i can understand why a lot of it has underperformed over the last several years >> so, j. powell wants to get another term and it's been at least suggested that he may be more dovish than he would be reasonably if he didn't have that hanging over him.

and are there policy mistakes that could really be long lasting if the fed screws up this exit or stays way too long? are they already behind the curve? >> three months ago i was on cnbc and i said he's the most dovish chairman i had ever seen, and i suggested he's angling for another term i was kind of put down, no, he's above politics he's not angling for another term now there's a lot of talk about, you know, that maybe his dovishness is there for that i mean, i think in the betting markets, which you looked at too, predicted.org, he's the overwhelming favorite, and i think he does have the chairmanship for the next four years. hopefully he will tilt more serious about the coming inflation once he feels that his

renomination is more secure, but i think the fed is a little late to this game, i think, and let's just hope they don't overreact slamming rates up and take it easy there >> yeah, big piece, judy shelton, a frequent guest on "squawk box" points to some of the same things, the fed's unchecked power has led to measures favoring those who live off portfolios, not those who live off of paychecks, and congress needs to rein in the too powerful federal reserve that is a concern for a lot -- i mean, you know, we got delta we got -- we got a lot of stuff to worry about it's hard to imagine that our own -- >> we definitely have a lot of -- don't forget, the federal reserve is a creature of congress it's not here indeed by the constitution they don't like it, they can do anything they want with it, so you know, in a way you got to

look at politics there as you do everywhere sfwr >> okay. all right, i know the recent run up in bitcoin has probably been you putting some of your savings in there because of all this thanks -- kidding. i don't know. >> thank you very much, joe. >> i don't know anything about what your portfolio is. >> have a good weekend. >> thanks, you too. when we come back, china's president says his country plans to set up a stock exchange in beijing. ghs ene mee detailwh wco rit back

just breaking, chinese president xi said the country is going to set up a stock exchange in its capital, beijing, to serve small and medium-sized companies. he made the comments in a video address to the china international fair for trade and services it's kind of the poster child for capitalism, isn't it not a hint of irony in any of this, a little more than half an hour now until the opening bell on wall street dominic chu joins us now with a look at some of the morning's top premarket movers hey, dom. >> we'll see if those headlines from president xi in china have any impact on those chinese internet stocks we featured in

this last hour as well some of themovers here to highlight, first of all, so far the big trade over the last three months has been in technology and communication services the big outperformer, yes, mega cap technology is resuming market leadership. energy, the worst performing one on an at least three-month basis. check out that kind of narrowing over here. we'll sfee that prevailing trend continues over the last three months also watching what's happening with certain of these meme stocks out there support.com the most recent one up about 7.5% in today's session. by the way, from the peak four trading days ago, it's down roughly 60% in that time amc up about a percent, and gamestop up one-half of 1% a check on the top popular most ticker searches on cnbc.com over the last day or so, the e ten-year note yield number one, abbvie at number two, apple at three. zoom video at four, wells fargo, as well as top 50 highlights

i'll send things back over to you. retail investors bought equities at a record pace in july and august. according to a new note by jpmorgan, retail investors poured $16 billion into u.s. stocks and etfs in july and another $13 billion in august. let's bring in j.j.kennahan, chief market strategist at td ameritrade seeing these numbers happen in the summer may be even more surprising this . >> it's interesting, we come up with our imx every month one of the things we've seen over the year is our clients actually gradually coming in month over month it hasn't been one month where it's been crazy. to your point, this is the time of the year, particularly at the end of august where people become more disengaged, people are going back to school or getting in that final family vacation or whatever it may be to see this is a bit surprising overall, and, you know, it's also interesting to me some of the stocks that have been interesting to our clients over

the last couple of weeks apple and tesla are two that are being purchased. what's interesting is at the end of july for the first time in six -- at least six months, we have seen apple and tesla be net sales. apple's the number one held stock at td ameritrade the last few years. that's been very interesting dom just got done talking about am s amc and zoom we saw our clients come in very interests in zoom. i'm interested to see these stay-at-home stocks. what happens to them over the next few weeks, can the interest continue in them as more people head back to work. >> you mentioned stocks like amc and tesla, and maybe that doesn't surprise me. what does surprise me at least according to the notes is that ford has been one of the stocks that investors poured into too >> yeah, it was really interesting, and you know, the last couple of months and especially last month when we saw tesla as a sell, ford a buy. ford is the one that our clients have really purchased quite a bit so far this year, becky.

some of it could be price point, and the other is, let's face it, they're very good at distributing cars. if they can start to get the electric vehicles going in a bigger way, you know, tesla can start to see some competition, and overall, we've seen ford make strides there, the chip shortage obviously put a little bit of a crimp in things for them the longer term story, our clients certainly big believers. >> j.j., real quickly, in terms of retail interest, how would you compare this is this more than what we saw during the dot com bubble? is this more lasting, less transitory, do you think >> i think it is less transitory overall, becky, for a couple of reasons. number one, you have a whole new generation of investors who can be around for a while. number two, they're more educated if you think about the dot com bubble, people weren't as educated about the markets as they are now just because you can get great education for free, firms like ours and our competitors, the occ, et cetera. and then the third thing is the

barrier to entry, with commissions being at zero, the biggest barrier to entry is taken away, and so, you know, all those things combined, i think the education and the youth are the two biggest underestimated things there. >> j.j., we are out of time, but we will see you back here soon >> thank you >> thanks, becky have a great day. >> you too joe i'll see you back here tomorrow as well it's friday. right now set for "squawk on the street." good thursday morning, everybody. welcome to "squawk on the street." i'm david faceberfaber, jim andl have the morning off let's give ewe look at futures as we get ready to start trading one-half hour from now we are set up for what appears to be a higher open. we've had a lot of that lately our road map this morning starts not with the markets but with ida's