of people, and we have stock buybacks coming back, so i think this should all be part of the equity market. >> we have to leave the conversation there we've got a hard break into the show thank you both we will keep our eyes on gamestop later this afternoon after the market closes. a lot of people will be focused on that. joe, nice to see you we'll be doing this eight days a week. >> be there or be square join us tomorrow, "squawk on the street" begins right now good wednesday morning, welcome to "squawk on the street." i'm carl quintanilla with jim cramer, david faber back together at the new york stock exchange premarket is a little soft as the numb of sell side firms can under thing their u.s. equity outlook now grows to nearly half a dozen. meantime, more firms cutting q3 guidance on supply chain kbie dance. our road map begins with coinbase versus the s.e.c.

faf facing legal action, coinbase accusing the regulator of, quote, sketchy behavior and of making a land grab. >> plus, car wars, ford poaches the head of apple's top secret car project and a former tesla executive. and betting on payments, jpm and paypal announcing some new deals in that space. we'll get to it. first, jim, great to have you back after a long absence. >> thank you so much. >> i know you were talking about the sell side desks that were cutting their targets for the end of this year or next year. >> bank of america is probably the most threatening this may not end now but when it ends it could end badly. when i read that what it does is basically says september has been weak historically not a good month at all. october has been a bottom. i think a lot of people are trying to anticipate that. if all the strategists anticipate something, it tends not to happen. while i am understandably cautious because the month has not been a good month, you know

david, one of the things we've learned about the strategists is if they speak in unison, perhaps we should be worrying about something else. >> typically it may already -- the concern may already have passed >> well, we know that a lot of stocks -- the s&p obviously has not had a very big turn. >> no. >> in a long time. >> no. >> well, how concerned are you, then, about a significant slowdown in economic growth that is actually going to be reflected perhaps in earnings and, therefore, possibly in a discounted s&p price >> well, i think there are influences of inflation, sherwin williams as you mentioned, pulte has some things -- actually an outlier. ppg at force majeure, a lot of things, in the end, david, the remarkable staying power of technology has kept this market afloat and i don't think that changes >> meaning the leadership stays kind of the same >> look, i can say that netflix is going to have a great

quarter. i think -- >> netflix obviously had an incredible week last week. but it was one of its greatest weeks obviously catching up because it has been a laggard throughout the year. apple had a good week last week. i know we've already had a trading day this week, i'm not forgetting that. >> the 13 meeting coming up, apple 13 and let's just say it is as it is, let's talk about a company that people have written off when jeff bezos stepped up i think people are starting to realize that jassy is the real deal and amazon with the delta variant in europe where i was 70% vaccinated, green pass to get in for a gelato. amazon everywhere, it's really kind of freaky everywhere i'm talking about like there were boxes of amazon, every single -- jassy underrated amazon web services doing well positive on microsoft, they make an acquisition, people go rah-rah. so you've got maybe 30% of the

s&p. >> that's true, today guggenheim takes alphabet to 3,400. from 3140. and you mentioned netflix, jpm adding to their price target hike on atlantic yesterday going to 780 so yeah, but what you're saying is the cyclical trade is not -- is not what you want >> well, i think i was listening to brian sullivan this morning at 5:00. he was talking to an analyst talking about the idea that should you reallyown the five times earnings, which is, by the way, nucor and cleveland-cliffs which i have on tonight. at five times earnings you're pretty much expecting what happened to sherwin williams today and ppg yesterday. i am not sanguine because september is a tough month and because there are a lot of people who like to sell ahead of october, as foolish as i think that is. obviously if you don't get -- if you do not get stimulus there will be people upset if you get stimulus people will be upset because of inflation. anybody who wants a job can get

a job, so i think that you've got the inflation people on one side, and they're ready to pounce and then you've got the people who say slow down, they're ready to pounce, let them pounce, you know let them pounce. i remember i used to go to the dog track all the time and that mechanical rabbit, sometimes it falls off, and the dogs pounce but let me tell you something, david, there's nothing to eat on a mechanical rabbit. >> you got that. >> there's the takeaway this morning. >> there's always some ways to make you share with us, jim. i will remember that one i'll think about that tonight. >> swifty got no meat. >> before i fall sleep, imagining that meatless rabbit. >> i really like that approach >> yeah. i had spaghetti, midnight spaghetti. >> did you really? >> that's a big tradition in italy. if you have a party, i threw a party for associates at 12:00 all the men go in and make spaghetti. >> i like that. >> one day you'll join me in a midnight spaghetti party i don't think that will happen

unfortunately. these invitations make it this far. but never make it all the way. >> not going to have a bumper crop of olive oil because of the weather. but our wineo hold off on that. >> it's not the finest david, come back, come back fresh, and you realize that there's this kind of endlee str, i'll say, you know, it's been negative since the bottom, and maybe that's why we've had such a big run since march of last year when all hell was supposed to rain on us. >> you really think it's been that negative? >> yes >> i mean, i can -- >> certainly -- >> listen to people on our air during the course of the day, i don't think you would come away feeling -- >> the list has gotten longer. you got the taper now, you got

the expiration of benefits you've got seasonality on top of the valuation and supply chain worries. >> taper is never talked about in the context of larger bond buying now, the issuance is going to start right now, there's no doubt about that there is a tremendous desire for treasuries, which are still relatively better valued versus anything from japan, anything in europe japan, by the way, japan's red hot. how convenient that paypal picks up one of these buy now pay later outfits for 2.7 billion. square paid 29 billion for after pay. >> yeah. >> so i think they probably have some after remorse. >> a different size business, the paypal obviously it's in japan, much smale size so to speak in terms of what they're paying. >> you know that pay fall, if it had been tied up with ebay, which everyone hit paypal down to 270 when they announced finally they're almost done, paypal can extend that, and that's one of the reasons the stock is up.

buy now pay later, one day when rates go up, that's not such a good strategy. >> it's all the rage we saw stock prices soar when it announced that venture, i guess, for lack of a better term in amazon a couple of weeks back. >> max levchin has always been one of my favorites and they wrote him off too. people write people off and that is something we have to remember there's these ceos that are constantly being written off marc benioff was being written off because of the slack acquisition. and people think that andy jassy is a moron, the only thing he's moronic about is he likes the giants call it as we see it. >> did anyone even draft a giant? >> i don't know. >> i don't know if he's a jersey guy. i think one of the reasons why philadelphia didn't get the amazon headquarters, he hates the eagles people think i'm kidding this is direct insight.

>> wow. >> he hates the eagles. >> okay. >> it's one of the contributing factors. >> maybe, i mean. >> didn't help >> he went to queens and he didn't like the jets i don't know, then they didn't get it anyway because queens didn't know what the heck it was doing. >> i like the jets just for the record >> you think we're going to win more than two games? >> i think that coach is -- he takes no prisoners. >> we're going to talk some nfl later on. >> give me a jets win total before we move on. >> 6 >> i'll take that. competitive division. >> coinbase is down in the premarket. in a blog postit says it has received a wells notice threatening a lawsuit over its planned product that would allow users to earn interest by lending crypto assets. as a result coinbase says it will delay the launch of its product until at least october interesting thread from brian armstrong. some really sketchy behavior coming out of the s.e.c. recently and then he goes into what he calls story time

>> let's talk about that first of all, there's a man, there's a man named gary gibson who taught bitcoin he's a regular i don't know who armstrong's lawyers are, but this is going -- this is more stupid than what musk did musk poked fun this is actually saying as -- remember the cfo hoff said we got to school gensler. my contacts within the s.e.c. are not happy about this and i don't want to call it moronic. i'm going to leave it at one of the most stupid things i've ever seen. >> really, what part of it is stupid, publicly putting this out -- >> calling gensler sketchy david, this is not harvard versus yale. >> understood. clearly mr. armstrong is frustrated saying they're being threatened with legal action before a single bit of actual guidance is given.

>> you know what's a good strategy shutting up. >> typically you would be advised by counsel to not air your grievances publicly with the s.e.c. >> remember what hoss said, the cfo? >> tell me >> we have to school this. >> i do remember sorry. >> having known the s.e.c. and people who are in the s.e.c. and a lot of people who went to law school, they don't take kindly to being told that they need to be schooled, and the difference between coinbase and the s.e.c. is the s.e.c. has unlimited fire pow. if they deem this thing a security, which i think gensler is going to do, i don't care if people think that they have sketchy behavior they're regulated. they're a regulator, and that's -- they regulate coinbase so i think gary and i've known gary for 20 years is probably the most sophisticated of regulators so the idea that brian armstrong, obviously a self-interested man wants to take on the s.e.c., what is it

like a street fright sharks jets? >> all he's asking for is some clarity. he just wants some clarity for them so they understand the world they're operating. >> clarity why not say -- >> they may have been ill chosen words. >> suboptimal choice. >> they may suffer consequences from doing that. at the same time you can understand perhaps their frustration at not understanding what it is they're supposed to do. >> you don't air your frustration in a tweet gary gensler. >> i assume if you believe the s.e.c. has to operate in a political framework to some degree, he may be trying to sway enough public opinion to pressure the s.e.c. into altering their behavior. >> i think the idea of pressuring the s.e.c., it's easier to pressure the southeast conference, that s.e.c. than it is -- which by the way, some of the teams look pretty good i think this is shameful

behavior frankly there should be respect for the regulators i think this shows a contempt for the regulators that is not right. i think these are people in government kwhorwho are serving doing a very good job and to trash them publicly in twitter and on air is not just ill-advised, but it's saying, listen, we want war. you can't go to war with the regulators, they're always going to have the last word. i think armstrong should choose his words more wisely, take back that tweet, and understand you can't go to war against the man who might regulate. >> what about the product itself, do you think it is suspect? >> look, i'll give you a good exa example. i don't think it matters what i think. i think it makes sense what matters is gensler, and that's where they're making a big mistake. now, had they sat down with gensler and gensler explained his position rather than schooling gensler, i think it would be good. imagine if jamie dimon said, you know what, the s.e.c.'s got

sketchy behavior and i've got to school him david, who regulates jpmorgan? >> the fed. >> and s.e.c >> yes i think the fed is -- >> jamie dimon -- >> the fed's in there every day, they got a lot of people who live at jpmorgan and every other bank. >> he doesn't know anything and good luck to him sketchy behavior david. >> jamie dimon has more credibility if he were to actually choose to publicly lament something, it would be taken perhaps more seriously because he's jamie dimon probably the singular guy in the financial services industry. secondly, probably would know enough not to do that, and why do you want to choke me? >> musk makes cars and he can poke fun these guys make finance, no fun. gensler taught this at m.i.t he's going to school them, welcome back cotter. >> your dreams were your ticket

out, right >> doesn't take long for him to do that to me, to treat me in what i regard to be a contemptuous way. >> really? >> never, of course not. i never do that. >> how come you didn't get the "jeopardy!" job in the end >> it's not over. >> you were the best. >> it's not over >> it might be >> what happened to matt >> i don't know. >> you don't know? matt of course was one of the superstars and then david leaves and matt's done. >> matt went on. he's in the new season >> is he >> yeah, but i don't know. >> we're going into extra innings. >> that's the most exciting thing that's happened to me in 2021 was watching david conduct "jeopardy!." it was >> thank you >> that's why i love you. >> i love you too. >> good to have both of you guys back. take a look at the futures, a little bit soggy this morning as we are in a holiday shortened week we'll talk a little bit of apple after the break, not just the car personnel but this call from katie behurty from morgan stanley. we're back in a moment

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it's wireless so good, it keeps one upping itself. switch to xfinity mobile and save hundreds on your wireless bill. plus, save up to $400 when you purchase a new samsung phone or upgrade your existing phone. learn more at your local xfinity store today. apple's up in the premarket when it announced a september 14th event in which new iphones are expected to be launched. ford has announced it has hired away doug field from apple to lead the automakers emerging technology efforts field had been working on am apple's secret car project there's been some reporting out there that tim cook wants to launch some new category before

he starts even thinking about an exit this is an interesting personnel move. >> i always felt if tim cook was interested in auto, he should never have let samsung get harmon harmon is the entertainment god, and that is a way to really integrate apple as well as much better than integrating apple the way that ted lasso calls and says siri, please turn on the music. actually, that was for roy kent. this is what i care about. this man, field, it's not about apple. david, it's about tesla. you don't like tesla he wants to wipe the floor with tesla. coming after tesla. >> you've shared that before now you're talking about ford versus tesla, not versus ferrari, versus tesla. >> great movie, very underrated. >> it was good. >> field is not a fan of tesla, kind of wants to go back to ford remember, he started at ford go back to ford to be able to prove that the ford electronic

fleet that they've got, the f-150 is better than tesla, and don't forget the mach-e. a lot of people say instantly are you kidding me ford can never touch musk. people seem to forget ford is going up against what i regard to be some sort of space age pickup that, i don't know, david, when you've seen the pickup, the tesla pickup, does that not remind you of some sort of like flintstone mobile or something? bam bam. >> yeah, i'm not a pickup guy, so i'm probably the last person you should rely on to decide what is -- >> i can't talk to him i had a super 350, i could run over david and then reverse and run over him again why would i want to do that? >> i don't think you'd want to do that. >> i don't want to do that anyway, i think that ford is a pickup truck company, and this is a genius move because field was obviously someone apple

didn't want to get away, and apparently he's great, but he's motivated not to hurt apple. it's all about musk. >> interesting we'll talk more about the app store headlines as well, which is what katie huberty addresses in her note this morning we'll get cramer's mad dash and countdown to the opening bell dndamoinonhistarted ts weesy rng. don't go anywhere. you sure you want to leave that all behind? yeah. stay restless with the rx crafted by lexus. experience amazing at your lexus dealer. ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪

incomparable design makes it beautiful. state of the art technology makes it brilliant. the lexus nx. experience the crossover in its most visionary form. experience amazing at your lexus dealer. we're getting ready for an opening bell on this wednesday already. how'd that happen? >> don't look at me, i don't make the calendar. >> what do you want to do for mad dash. >> stock was down yesterday in chipotle that's the first real decline that we've had on the march to

2000, and this is one i like at 300. have you had the cauliflower rice that explains everything but cowen makes it a top pick. 2,250 price target, which i think is totally doable. this is what's caught my eye david, they're thinking about doing -- what is so -- what are you snickering about >> it was funny, the john oliver thing, you had to watch that it was fupnny. >> the oliver thing was brilliant. >> it was pretty funny. >> and you were very upset with me of course because i continue not to eat chipotle. >> i don't understand that at all. i think i'll have it today in jr. honor. $300 million in units they think they can do. 2 million is a gigantic amount >> 3 million units, yes. >> they own -- i've always felt this is a better model than franchise. if they can do 3 million, i mean, no one's ever come close to that, so let me just say if

they can do 3 million per unit, and they open all the units, let's say 500, 600 units, there's no reason to stop at 2,200. i'm giving this the green light. >> you still love it >> more than ever. >> you love the way the company operates and executes, and you love the food. >> they understood everything because they had a problem with airborne lillness, they were so ready for covid. their digital is as good as their in-store nobody has that. when in-store is really wide open after delta and i think there is such a thing as after delta, they can do 3 million and we'll be buzzing about it. >> chipotle obviously had a nice move since more or less the beginning of the pandemic. >> yeah. >> what? >> your suit, it's not a suit. it's two suits it's a denim suit and it's a -- david's got two suits on. >> no, i don't i look good, thank you >> by the way, you can catch us anytime, anywhere, don't listen to him, though just follow the "squawk on the

street" opening bell podcast you'll have to hear a little bit of jim as well during the course of it. we're back in oufo mut with an opening bell

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we were mentioning a moment ago the move of that engineering chief from apple to ford the other big note on apple comes from katie huberty of morgan stanley specifically about the app store headlines that in her words, jim, have more bark than bite. >> i know. but it's a contradictory note herself, more bark than bite is the headline, but then actually talks about a slowdown, service revenue slowdown, and even though apple is going to be able to handle these changes with developers being able to circumvent the payment system, in the near-term app stores trending lower than our forecast other than ad sales. we know that the upside has been this revenue stream. so i did not get -- you know, very much, she's a straight

shooter and i felt this note would have caused the stock to go down. >> she does reiterate the overweight stays at 168, watch apple today obviously, come ing off of record highs. there's the opening bell, at the big board, space technology company redwire celebrating its listing via spac at the nasdaq, biotech omega therapeutics one thing we haven't touched on yet was what happened to bitcoin yesterday, and crypto in general on some of the headlines about a rollout in el salvador, the president tweeting in the middle of the day about buying the dip, sort of the new chapter. >> let's just say that i think there is going to be broader acceptance, starbucks, there's a lot of recognition in the end, going to have to offer more than the product it currently does. obviously paypal, we didn't really talk that much, i think, about what they're doing in japan, but there's a nice

confluence that led me to believe it was a technical glitch and not a decline i expect mike to have more insight onto the actually glitch the fact is -- we may think, wait a second, dismiss that, what happens if it's the beginning of a trend right now they're an outlier other countries are watching i think it could be, david there could be people who say you know what? this is a great way to stabilize, prove that our economy is better than you think and head off hyperinflation. >> it's possible certainly >> right >> venezuelans actually kind of went to the dollar, which has helped them. a little bit of a different -- not bitcoin, and unofficially, but they're basically a dol dollar-based economy now and actually venezuela thankfully is did doing a little better. they were in the midst of a humanitarian crisis.

>> we need to speak to schlumberger, to the peeps who were stiffed by venezuela. >> they're one area of export, which is oil. >> largest repository of oil in the world. >> yeah. >> every year the output has declined >> but as for whether other smaller countries somehow move to bitcoin, jim. >> if we're going to start building entire social -- support networks, government support networks on bitcoin, then the risks to the downside will grow, zyes? >> yes >> let's get to the point. it's about china president xi is acting more and more like a fascist dictator he obviously does not like bitcoin. he doesn't like property value he doesn't like some things that he said about tv, male tv hosts that i will not even -- i will not even go there because it was so disrespectful and then, again, the common

prosperity, carl, if you're rich there, you got to lay low, but -- >> fresh headlines today out of state media. chinese government asking gaming firms to be responsible for minors' physical and mental health, will severely punish firms that are found to not adequately implement those regulations. >> this is a declaration against disorderly capital, capitalism and i think that one of the things we may not realize is that, again, rolling back pre -- you talked about that, there is a belief, i think, in china that it's time to end or regulate ride sharing, school tutoring, food delivery, and having an immunological repudiation of fintech, internet. i don't think it's going to get better in china. i think it's going to get worse. another flayyover of taiwan the

other day. it's rather extraordinary what they're doing in terms of taiwan, and they're talking about big capital. these are all the buzz words, david, of revolution, frankly. >> it's interesting listening to you, george soros has been outspoken on this of late. i think he tends to agree on your point of view that there are no human rights there, and probably no property rights, and then there's been pushback from the likes of perhaps even larry fink, ray dahlio. >> opportunity >> say again. >> opportunity, i think he's terrific i come back, though, and i say when you have someone calling online gaming spiritual opium, these are the kinds of things, they're fighting words so to speak. >> yeah. just to remind people because they probably don't remember george soros was a heck of an investor, maybe the greatest

ever in terms of what he really was able to do in real returns, by the way not mismanaged real returns and also charged fees that were below the average. i think he was like 2% for a long time. just that straight 2%, then i think he went to 1% management fee and 15% of the profits created obviously a great fortune. he's a very -- you know, seen as a controversial figure, but when it comes to this stuff, you still may want to listen. >> i think that we have to find things, common ground, and i've got it xi is against celebrity watching i think it's a kardashian thing. >> okay. >> we can get a summit going on that one. >> no more kardashians in china or in general? >> i think he's got a point there. you know, what value do they have >> well, common prosperity, three hours a week now if you're under 18 of video game watching, only one hour a day friday,

saturday, and sunday. >> manly tv anchors. >> right >> no more paying for tutoring >> right >> well, there was rich, poor there. are they in a new -- have they moved to a -- i mean, there was a long article this weekend about it, in terms of china's next move here is to really rein in the ultra wealthy and try to create common prosperity in a real way >> how about the property. >> and attack the inequalities that obviously we also suffer in this country in a different way. >> chinese. >> passions view is that she's been monitoring food inflation and is aware of the pernicious effects of long-term inflation on the food side. >> and property inflation. i think he's willing to have some banks fail. obviously we know how he feels about crypto look, he has to be watched there are ways to be able to

change taiwan. you just creep in. you take over some islands i'm waiting for president biden to respond to the flyover, which included, what, five nuclear aircraft that can carry nuclear weapons. these are all an escalation that we seem to be ignoring as best as we can, so that dual relationship i say watch it, watch it, watch it. >> speaking of the white house, we're going to monitor the house which is now set on the spending bill we're going to watch any reaction from senator manchin. the white house today will announce plans to set a goal of producing nearly half of our electricity from the sun by 2050 as part of their effort to combat climate change. >> no, again, not to belabor my guest tonight, but i happen to think he's one of the visionaries. cleveland-cliffs, you know that guy? >> look at his handout people forget that wind and

solar use a huge amount of steel, and these are what i think to be secular gains for steel that we've not had in years. there's a steel renaissance in our country. it's about the best time it's ever been for steel. when you look at a windmill, david. >> yes >> that's not made of plastic. >> no. >> it's made of steel. >> yes >> what are you looking at >> i'm looking at a filing from a spac gensler? >> this one is called deep green metals the deal was approved to acquire deep green metals, but in fact, this goes to a trend i've been

talking about a lot lately, which is the enormous percentage of shareholders who choose to redeem leaving companies with far less cash than they originally anticipated when they put their deal together and when they drew out when they thought they would get to profitability. this is of interest to companie in their early growth stages, many planning to go public through spacs. in this case, the company expected to have as much as $570 million, jim, when they emerged in their public form, despac, so to speak. with 91% of shareholders saying we want our ten bucks back. >> how do they find it >> they only took in 27.2 million from the trust versus what was obviously going to be a lot more and then two-thirds of their pipe holders, remember the private investment, public equity comes along with when they announce their transaction. two-thirds of them said we're not funding. they're suing their pipe holders. >> fidelity? >> i'm not sure who the names were here. they wind up with what was 173

million, 137 million, excuse me in cash. that's prior to transaction fees. >> versus what did they expect >> 570 million >> oh, my. >> i don't even know what their transaction fees could -- i guess the point here is we want more transparency, but we also need to understand that in many of these cases where they don't meet the minimum cash requirement, which is 250 million, so they're coming in well below that, the companies are going to have to issue equity, jim. they're going to have to dilute current shareholders to raise more cash to actually try to implement their business plan, one would expect if you went in saying we're going to have 570 million in cash and, in fact, you're going to have, who knows, 100 million. that's a big differential. >> one of the things that's happening more often than not. >> there's no real -- you are for all intents and purposes the only sourcefulness people own this.

it's not like you're going to dial a goldman sachs report. >> it's one of the these stocks that went up again, the float is so much less than people anticipated, you can't short it. that's why they had that move. >> the mechanics aren't working correctly. >> it's an interesting area we're in with spacs. such high levels of redemption, far less cash being available to the company once it de-spacs and so, yeah, i keep reporting on it. >> i think we all remember the mic my report from jpmorgan where he said this is going to lead basically to a crash, and anybody who bought these in the public markets right now with an s&p that's been so hot, it's just been crushed. it's a shame >> we got a lot of deals this morning, too, jim. i'm sure you've seen some of them, big premium, stock's up a lot, $9.50 actual deal it's all cash. it's going to require a

shareholder vote, kind of an interesting part of it as well is that santa fe actually is reserving the right, i want to find this here where is that? again, back to my s.e.c. filings. they include that if they get a standard form letter from the federal trade commission and the form announced and disclosed by the s.e.c., remember they said they reserve the right to send form letters even after deals are have closed saying don't be so sure, we can still come after you. they put this in here that santa fe would basically have the right to walk even if they get one of those form letters. that's kind of weird unclear if they would get a form letter it's a form letter, it would seem to give them the right to, if they want to, to walk something to keep in mind there. a big premium, although i'm seeing a couple of analysts who had even higher price targets for kdmn >> transplants increasingly more

just a regular part of the tools of doctors, but the prices that some of these companies are paying because they have worrisome patent cliffs. remember with glaxosmithkline, great vaccine company and they weren't able to do one, and obviously the companies that got vaccines into the marketplace are doing far better than the ones who don't this company needs to do something. that's my thinking needs to do something. how do you feel about glaxo? >> i should ask you how you feel about it because i don't really have a feeling on it. >> the pressure's being ratcheted up in a way that has to make dave walmsley very, very let's say -- i'm not saying annoyed, i'm not saying threatened, but let's just say elliott has basically said she's done badly and we need a total shake-up it is a british crown jewel. it's not like -- it's kind of

like arm holdings, another british crown jewel, except for nvidia's offering a lot to be able to keep them, make the british feel better. but i think we have to watch clax smi glaxosmithkline. i think it's going to get real ugly they got to come out swinging, say len, here's the way it is. look what we've come up with they've been too silent or let's just say too passive. >> we got downgrades yesterday of j&j. >> that was something. people just waiting for them to kind of shake up the space. >> i was just shocked. this was kind of stagflation call j&j continues to go down i thought that was very meaningful >> overall, a bit of a mixed market this morning. we are getting some help from energy up a percent on the s&p as oil gets closer to 69.50. let's get to bob pisani. >> good morning, guys, happy wednesday. important thing here is it's a flattish open, carl's right, but supply chain issues are going on

longer than anticipated, starting to weigh on the market. take a look at the sectors here. materials have been on the weak side tech also is slightly on the weak side, consumer discretionary flattish, banks have been moving sideways for months now you see a flattish open. beneath that, i would call this great numbers, strong demand everywhere but kind of story and but mostly is around labor and supply chain issues. the big discussion today was around sherwin williams and what they were talking about. they did emphasize they've had terrific demand, strong demand raw material availability is not improving, so in the second quarter their sales were impacted 3.5% negatively because inability to get raw materials in the third quarter now they're saying sales are going to be impacted in the high single digits this is going on longer than people anticipated and we've seen this, we saw this yesterday with ppg, same thing what are they doing? they're adding a 4% price surcharge. they made it clear through the

end of the year, they'll add more or keep going if they have to in other words, right now they still have pricing power, so that's helping them out a little that's probably the reason the stock is only down about 3%. nonetheless, the fact that all of a sudden now we're in the third quarter is starting to become an issue. same thing with the home homebuilders great demand, pulte came out and emphasized we have strong demand look what they're talking about. they had lower closings than expected why? it wasn't because the demand wa lower, they had supply chain issues they've got labor shortages that are out there. the homebuilders are down today, but if you watch them, they topped out in may. still, their overall numbers have been very strong recently look what's going on, underpinning the rally, we've had record earnings, we've had record margins and we've had low interest rates and strong revenue growth this supply chain problem eats away at the edges, not

dramatically it starts to eat away at the edges of the margin story and the strong earnings growth story. that's why the market's a little bit on edge. the reason we're holding up so well is what you're seeing right here technology continues to see earnings estimates go up why? because technology wins if there's more covid or loses, and wins if there's less covid that's what's going on essentially. so today 28% growth in third quarter earnings for technology, a few two months ago, 22%. that's a strong increase this is the largest sector it drags everyone up, communication services also up health care another generally associated with the growth category, a lot of biotech there. same situation, 14% growth today for the third quarter. it was essentially 7% going back to july 1st because you have, carl, these incremental increases every week in the earnings estimates for the biggest sectors, the s&p continues to hold up very well and carl, i have never seen so much interest in people trying to figure out whether earnings

estimates are going up or going down on a week by week basis only me and six other people in the world used to ever watch this on a weekly basis now it's a part of the conversation every single day. >> fascinating, thanks, bob. before we go to break, let's take a look at the bond report, see how treasuries are faring this morning we are going to get a ten-year note option this afternoon we'll watch that, 136 right now. also yellen has sent a letter to house leadership as the debt limits, the most likely outcome is that cash and extraordinary efforts will be exhausted during the month of october we're back in a moment

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dallas fed president reportedly made multiple stock trades of over a million dollars or more last year. they say caplan's moves are in

move with other fed moves. and there are strict rules and you do want some market experts to balance out the academics on the committee. >> used to handle the finances of a st. louis foed president and i would say listen, we have to buy kimberley clark maybe we ought to buy ford motor paper. and he said do you know who i am i'm a fed president. i buy treasuries and that's all i will ever buy. well, robert kaplanall stow worked at goldman sachs. and it's that he brings his affinity for the equity market, right? >> kaplan -- and times have changed.

i think that disclosure is safest maybe you think i'm kaunlt rudictory. but i got screamed at by a fed official for even thinking about buying -- >> was a long time ago, different world. before ceos took to twiter to chastise the sec >> didn't musk >> yeah. what an insult >> we will get to stop trading with jim in a moment but f torhe moment dow's up 16 you sure you want to leave that all behind? yeah. stay restless with the rx crafted by lexus. experience amazing at your lexus dealer. all the things, all around you... where you learn, work, and fly... we help make them healthier. we are the people of abm. for more than 100 years, we've been a leader in making spaces cleaner,

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time for cramer stop trading. >> its a very expensive path that reported last night and it looks like people are upset that the company's guidance wasn't that good. i say give me a break. it is an excellent company and i think, even though it's very expensive, i think people will come back to it. >> how about tonight >> absolutely. and what are the unsung stories they refuse to talk about. and this is one of the best -- look at this stock

and then this is one of the companies that does artificial intelligence, cyber security it's also been a rocket ship and you probably remember letter s being sprint >> they did join us when they went public. >> i thought it was the first time second time? >> second time >> that's all right because then they'll be with you the third time, fourth time, fifth time, sixth time >> evening show. >> speaking of which "mad money" with jim cramer, 6:30 p.m. eastern time welcome back when we return, more on inse coba ♪ i wonder how the firm's doing without its fearless leader. you sure you want to leave that all behind? yeah. stay restless with the rx crafted by lexus. experience amazing at your lexus dealer.

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incomparable design makes it beautiful. state of the art technology makes it brilliant. the lexus nx. experience the crossover in its most visionary form. experience amazing at your lexus dealer. welcome back to "squawk on the street." our july read on job openings and labor turnover expecting a number over 10 million and we end up with a strong number.

10,944, 000. and it's the seventh month in a role jolt has been higher than the previous month it's an amazing record and does underscore that, with record job openings, the state of point goes back to 2,000 never been higher. that we can't seem to be playing match game correctly with the openings, verses those that need to come out of the unemployment force and move into the labor force. this is an issue many believe it has something to do with benefits that expired on the monday, the holiday. we will have to wait and see if some of the data improves. many believe it's a mismatch of skills and logistics regarding obviouslys and jobs. >> thank you, rick good wednesday morning, everyone welcome to another hour of "squawk on the street. and bit of a split market,

although the dow increasing a bit. up 72, as we're watching more sell side firms and down grades of u.s. equities. and more warning on q3 in the supply chain challenge >> we're 30 min nutes into the trading session. citrix shares rising and a stake worth more than a billion dollars. it's up five% right now. plus, paypal acquiring japanese buy now, pay later company, in a deal worth about $2 billion. as amazon and square recently struck acquisitions in the buy now, pay later space paypal shares are down slightly right now. and china ev company, nio, those shares are really down, after a stock offering, saying it would use the proceeds to, quote, fw further strengthen the balance

sheet. and once again asking them to increase the debt limit >> the treasury department is now warning that the u.s. could hit the debt limit as soon as next month treasury has been using extraordinary members to maintain august fifth. yellen said those measures are likely to be kpooulsed during the month of october that's on the early side of previous projections she warned waiting till the last minute to increase the debt limit could cause serious harm to business or consumer confidence and negatively impact the credit rate ogof the united states she urged congress to raise the debt ceiling through regular order with bipartisan support. they're facing multiple deadlines, funding the government, now the treasury department adding the debt

ceiling deadline to the mix as well >> that's all part of the prestige of market commentary right now. joining us is wells fargo asset management, patel. and chief economist. good morning to both of you. that letter from yellen to the house is just one piece of what a lot of strategists are laying out as policy risk in the next eight to ten weeks >> i think all it's important short term, because one of the things people focus on is interest rates i personally think that, as long as chairman powell is focussed on employment, we don't have to worry about tapering or rates moving up. but it's certainly one of the things, short term, may cause indigestion in the market plas >> and another astounding number s

santelli mentioned the mismatch. and some employers if you could just get the economy under control, you could wind up with a solid labor marblingt. >> even last mumonth is still a decent number. we've been generating up near 700/800,000 on a three-month moving average until recently. i would say the economy is generally in pretty kn shape i worry more blout about the spending tax and regulatory side >> it's not just u.s. policy on the monetary side. it's the goings in china having ripple effects and commentary ahead of that event tomorrow too that seem to be jolting investors. looking around the globe and then taking nat to account,

vurlss evaluations we're seeing in markets how would you assess the risk? >> it seems pretty clear to me that we have acceleration in growth in china, as well as other emerging markets and that the stronger countries are developed, particularly the u.s. and keep in mind, that we actually have interest rates that are highest of the developed world countries. it makes it harder to talk about raising rates, even though the economy looks good they mired about what they can do at this point >> we seem to have had a deceleration a bit as a result of the spreads of the delta variant. what if we get that under control pretty soon? thankfully, i think we hit a new high since july in vaccinations yesterday. a number of states seem to be peeking. how do you view that in terms of expectations for the economy >> yes, david.

essentially, the argument you made a year ago in the white house, that does create additive aggregate supply so, yes, if the virus is under control and businesses become more confident in taking risks in households -- meaning investments and that sort, and they have child care because schools are open yes, increased supply will help meet demand and augment price pressures i see in the economy and the risk is it gets worse going forward. i would worry more about inflation than anything else >> as someone who's stood at the intersection of economic growth and policy r the markets pricing in the possibility of higher taxt taxes into next year >> i don't think so.

on the small business side, there's some concern about what's coming down the pike. right now markets seem to love the fact that you have extraordinarily easy monetary policy with tremendous amounts of liquidity there's a concern that if we take market gains up above marginal rates, that there will be a pullback. but that does not seem to be in the market's radar >> thank you so much >> thank you well, turning to the crypto market and coinbase. sec threatening to sue that company, if they launch a program allowing users to earn interest by lending crypto assets matt, i do want to get to coinbeige, which i know is a top holding. just to go back to yesterday flash crash, if you will

and the price of bitcoin how are you thinking about that? i've heard the theories floated of the possibility of a flat finger or el salvador becoming the first country to adopt bitcoin as a legal tender. >> our view is that's a sell the news reaction. we knew it was coming. it was the bitcoin day on twitter. and i think people built up bullish expectations around that day. i think it's a pause that refreshes. we're still in the bull trend. i think it was a one-off event >> and given the fact that you do assess and hold so many crypto currencies. either verses everything else right now. >> there's a relentless bid for etherium, specifically and those like salonau

we run an index strategy, which holds the full market. but i think a lot of invester have been excited about bitcoin in past and realizing that there's more to crypto than just bitcoin. and so, they're looking to diversify their holdings that's been the theme with etherium strongly out performing bitcoin and others doing even better >> whether it's a really dramatic move in the price of bitcoin yesterday that happened very quickly, or whether senator elizabeth warren saying crypto is the new shadow bank obviously more regulatory, potential oversight, if you will you mentioned the sec letter to coinbase there is nor scrutiny. there are risks out there. so, how does that speak to where we are and how you, as an investor or somebody over seeing

investment is navigating that. >> reality is clearer regulation will set crypto free this is an inindustry that has shown it can make the financial system faster, fairer and more efficient. it is a better technology for money. and all we need realize that full potential is clearer regulation i think what you're seeing in the coinbeige news is frustration with d.c. for doing regulation by litigation, instead of working cooperatively with an industry with so much potential. down the road this is good for crypto if we can get clear regulations, clear guidance, they can fulfill its full potential and the slower that regulatory clarity comes, the longer it will take but the trend is positive. the trend is moving in the right direction. >> so, do you support the

decision to come publicly and call sec sketchy or is that bringing more risk to that particular company? >> i think it's a brave statement and i think the community needs to know that coinbase is trying to do the right thing. they're trying to go to d.c. and speak to regulators. regulators should talk to the crypto industry. it's one of the largest institutions in the world. it is very brave that's the kind of focus that we need get the regulatory clarity that would unlock the next wave of crypto. so, good for them. it's brave i think it will be positive in the coming months. >> they were struggling with, given the volume, trading volume

yesterday, that it was struggling with outages as well. doesn't that bother you? >> that's a good sign when you can't meet demand. it's true this is an industry that needs to scale. this reminds me of the early days of the internet, when they would go out because there's too much demapped. there's huge demand to use block chains like etherium it's like rush hour. the solution is for the companies to scale but it is an indicator this industry is growing and gaining institutional importance that millions are coming into the market every week. and i think long term is bullish. short term, they should figure out to fix the technical problems it speaks well to thelong-term growth trends. >> thanks for joining us today >> thanks for having me. here is a look at our road

map for the rest of the hour including robert kaplan making multiple million dollar stock trades and why china is targeting outdoor clothing company, china goose. and imax reporting the best september weengd ever.

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dallas fed president, dallas kaplan, making a series of stock trades last year >> yeah, dallas fed president, robert kaplan held 27 separate stock alternative assets and fund holdings. those valued at more than a million dollars in 2020. conductedsales and/or purchase in kpesz in 22 they appear to be larger and his trading more frequent than fellow fed president and governors. they said none of his actions violated the bank code of conduct. quote, all transactions reviewed by the dallas fed's general counsel to confirm transactions in compliance with the code of conduct. no trades were made during the

federal reserve's blackout period." that's when fetd officials typically stop talking about monetary policy and runs for two days oofr the meeting. he amassed his fortune at goldman sachs. he divested hundreds of millions of goldman's shares. among his holdings is more than a million dollars in stocks in facebook, google, alibaba and unclear of how much each stock he has disclosure only say they're larger than a million dollars. such holdings and trades are potentially small relative to his entire portfolio the number of trades is unique to kaplan. most hold mutual funds and other holdings and they're far

wealthier than americans and includes many other areas of government >> as you pointed out, he's a very wealthy gentleman, having worked at goldman for years. give me your take. i'm curious to what you think, as well as you know kaplan, follow the fed, is it something people should be concerned about or not >> um, i personally, when it comes to kaplan, i don't have any question about his ethics. i i've known the gentleman for a long time. he was fully in favor of quantitating his new interest rates when the pandemic hit and has become one of the most hawkish guys throughout, that would appear not to favor his portfolio. i would prefer he was restricted when he could trade but it's a problem. some of these trades could be rounding errors in the portfolio. but any one single trade could

be a fortune to an average american worry that there aren't more people like the average american's financial profile that are on the federal reserve board. >> i will say whenever you see federal official said putting out the statements like this, the optics aren't always good. looking at the consumer discretionary fund, up around 16% year to date tops include tesla and chipotle. and digital sales growth will boost margins. shares up more than 35%. ♪ ♪

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redefining the flying experience morning, phil. >> you know a lot more people are flying today than back at 9/11 but what we noticed is although more are flying, there are a lot more complaints about the hassle of flying, mainly because there's a lot more security now than there was 20 years ago. tsa has more than 50,000 agents working at every airport in the country. we've all stood in these lines sometimes it moves quickly and other times it doesn't tsa recovered more than 3200 firearms, most of those were loaded when they recovered them. the growth in passenger travel has not slowed down w the exception of when there's an economic reason to slow down you have the recession this goes through 2019, when we get the final number from 2020, we'll see a dip as well there. in terms of dealing with the security hassle,we've seen a

number of ways it has improved for some people, whether it's tsa precheck or clear, which screens people in advance so they can move through security quicker. they avoid the long line they still go through security but they have 5.6 million passengers company just went public over the summertime and the stock has moved higher although, airport security, while that was the beginning, they plan to expand with things like a vaccine passport and other ways to make it as easier as posable to go to certain events, locations, etc consolidation has been the biggest change over the last 20 years and that's because of a number of events, including the recession back in 2008/2009. that led to the big 10 airlines consolidating down the big four. one airlines that did not go to bankruptcy, not bought out by another airline is southwest and if you look at southwest

shares over the last 20 years, been a heck of a run, especially the last ten years but the bottom line is this, guys for as much as people complain about the hassle of going through airport security, we should point out there has not been another 9/11-type incident in the last 20 years that is a testament to the security that's been put in place, despite some of the criticisms and complaints of people saying going to the airport and flying isn't what it used to be >> thank you and we're thankful for that as well for more, we're joined by executive director of the port authority of new york and new jersey good to see you. i'd love to start off on your reflection, amazingly enough, obviously. 20 years having passed since that tragic day. the port authority is at the center of so much, whether controlling the world trade center site, ports and airports.

give me your thoughts. >> 9/11 of 2001 was a terrible event. 84 employees of the port authority died, including 47 port authority police officers, who ran towards the danger to save the lives of uothers and wound up perishing it's embedded in the culture of the port authority as, not only a symbol of a terrible event, but recovery because in 20 years, and we're about to observe the 20th anniversary, the port authority has stepped up to oversee the rebirth of the world trade center campus. the land on which the twin towers once stood. what we believe is one of the best ways we can remember and pay tribute to those that perish

is to bring back the site more energetic, more vibrant than it was 20 years ago and we're completely committed to that goal so, if you look at the world trade center site today, there's the museum and memorial, obviously a sacred tribute to those who died the two pools observing or identifying where the tower stood and the memorials that surround it are wonderful tributes but around those, there are now four office towers prepandemic. 35 to 40,000 employees coming in every day. we are now committed to finishing the 16-acre site we are finishing the great church, which is in the midst of rebuilding and has made tremendous progress.

cultural art center to act as a magnet and we have a commitment from a developer, related to a residential tower and there's one remaining office site. and we've also dedicated our selves to activating the site, everything from movie nights to beer gardens to community events so, we are really thrilled by the progress the site has made >> yeah. but we find ourselves in a somewhat precarious position these days it's been a year and a half since things have been anywhere near normal in downtown manhattan or around the country. what are your expectations for the towers you're discussing are they going to be back to full capacity? there's criticism of how much was spent on the train station incredible though it may be.

what are your expectations, given what you're seeing on the ground in terms of traffic on the roads and going to the buildings? >> well, we believe that new york, new jersey will recover. it's a question of when, not if. obviously the delta variant has created uncertainty. we see actually vibrant interests, particularly in the office buildings the question is when confidence will build to the point that office workers will come back. we have no doubt that this -- that it will occur and we look forward to that day. >> rick, this is a tough time of year for folks in lower manhattan and around the country, and work down here as well and certainly i see it and feel it and i think any of us who

were alive 20 years ago and witnessed what happened at the twin towers has a memory, has a -- that will be with us for the rest of our lives in terms of where we were and our reaction and feelings were i just wonder if you could share with us some of the comments or some of the discussions you're having right now with people at the port authority, who were there 20 years ago, and are marking this anniversary and maybe feeling a lot of those strong emotions? >> this is just an extraordinary time at this agency. i was actually out of the country running cnbc europe at the time but i remember precisely where i was when the video of the towers falling occurred in terms of the agency, there are 1500 employees, nearly 20% of the workforce still working who were here on 9/11 of 2001.

and for those employees, it is just an experience that is seared into their memory and the agency itself just looks back on that day and indeed has taken the observation of the anniversary every single year with great somberness and great focus. and what is defining about it is rebirth, reenergizing. and people dedicate their live toads assist the rebirth to rebuilding and i would say that is the passion that the people who were here on 9/11 bring to the table. they want to see the agencies work carry forward they want to see the site observe the memory of those who perish and they want to see the energy come back to demonstrate

to the terrorists, to the world, that this event is not going to prevent the reimmergence of the energy and the contribution of the agency by virtue of what happened 20 years ago. >> appreciate your taking time with us. thank you. >> good to be with you it's time for a news update. rahel. >> good morning. in france a highly anticipated terrorism trial is underway the only survivor among the nine attackers who killed 140 people in paris during paris attacks. and he told the judge his occupation is being a fighter for islam. secretary of state visiting an air base in germany, where

thousands evacuated from afghanistan are being processed before moving to the u.s it has already handled 22,000 u.s. citizens and afghan nationals with 11,000 remaining. richmond is removing an enormous statue of robert e. lee. a crane lifted the general off its pedestal and will be disassembled to facilitate its move to a state-owned storage facility and the biden administration releasing a plan this morning to use solar energy production for almost half the country's electricity by 2016.

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we're getting some new details this hour, revealing a more expansive china media propaganda operation than previously known >> good morning.

this is a report from the intelligence team. they've been looking at the chinese propaganda network for a while. and what they found is it's expanded and multiplied. and they're trying to mobilize protests in the united states. they say thousands of fake accounts pushing chinese propaganda er for it's a global campaign in seven languages on 30 different platforms across more than 30 websites and forums. initially focussed on hong kong and chinese political issues that were fairly narrowly tailored now, expanding to mobilize protesters in the u.s. in response to the covid-19 pandemic that's something they have not seen before. as they're shifting from online world to physical reality. here are some of the alligations the accounts are pushing online in all these different languages. one is the idea that covid

originated in the united states and there were covid-19 cases aboard the u.s. tennessee and that proves supposed u.s. origin of covid-19 and the idea that covid-19 vaccines had been used in the u.s. and caused side effects, including deaths 367. so, aggressive messaging around the world and clearly an effort by the chinese government to push narratives in the global conversation and try to spur physical protests in the united states around some of the issues they haven't seen any evidence that's actually worked they haven't seen the physical protests taking place. but the idea is the chinese are trying to develop that capability >> does not appear to be an area they typically played in, so to speak. the russians, we're aware of, do this kind of stuff often can we expect more of it

>> that's what they're warning they're developing the capability and maybe they saw what the russians did and trying to rip a page from that play book and see how that might work for them on issues they care about. something for the big tech giants to figure out how to get a handle on. >> they've been trying staying with china, they continue to crack down on various companies, including a canadian-based retailer. eunice >> reporter: hey, well, today china's propaganda machine was calling canada goose a liar. this is after the shanghai market regulators accused the company of misleading consumers. the claim that canadian is the warmest is groundless and says canada goose has to take down the promos the daily today argued that

foreign down jackets are not warmer and they don't equal high quality. criticism as china promotes patriotism and bans what it sees as socially unacceptable the state media reported the propaganda authority summoned online gaming related companies to root out certain game content before they're allowed to get new titles approved. for example, no violence, money worship or showing efeminate men. and china tightens restrictions on companies, and in particular private tutors they noted they've been trying to get around the regulations. they have a list of what they consider to be violations.

and sending video calls, live streaming or instant messaging if you're hoping to hire a private tutor, you are not allowed to bring in a tutor and call them house keeping, for example or any other name, like a communication person morgan >> thank you as we head to break, shares of satellite operator, global star, surging. reportedly due to an sec permit authorizing certain radio communications this is on the heels of an apple insider report last month that sited analysis tht the new call qualmm chip would give the ability to use satellites. stock is up over0% 6 jerry is here!

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domestically ever for labor day is $30 million the movie several years ago. this did $90 million domestically over the four-day weekend and $135 million globally and fori max, we did 10% of that on a worldwide basis no one was whispering anything like that. and i think it goes to show no matter what weekend it is, if there's a really good movie, really good content and delivered exclusively to theaters, people want to come out. there's a lot of pent-up demand and it was encouraging how many people came out this weekend >> and now we're going to start talking more about bond and eventually "top gun maverick." you say the distribution gone hybrid and the iracy, i know i a good thing as well, has obscured the pent-up demand of

movie goers for the cinema do you think the pendulum is swinging the exhibiters way and which studios are going to leave that >> it's a great way to put it about the pendulum i think people don't understand how important the last week was. because not only had "shang-chi" showing how valuable a the atrical release was and you have sony announcing "denim" is coming out october 1st i believe this is the first time that people have moved movies up and there's no question in my mind that the results of "shang-chi" influenced that. and you have bond holding. so, there's an uncertainty before that about whether bond would move and whether movies were in place.

the fact that bond reconfirmed that date, those three things together i think this is an inflection point now. we've all been in this game of chutes and ladders for so long but i think absent another variant or change in health situation, you've finally seen the pendulum turn. and after the bond film "spiderman" and a lot of other things yeah, i think it looks pretty good from here >> you talked about are you seeing that consumers, at least

those coming to your theaters are not so concerned about coronavirus right now? >> of course they're concerned, morgan they're human beings but theaters most people are wearing masks. it's not a live event where people are spiting and screaming or a sport event where they're screaming. it's a pleasant social experience where risks are fairly low and i think you have to look at the age group that goes. it's mostly younger people and they have a much different behavior pattern than older people it's a little impact that the pandemic has been going on over a year and a half. and in places where people feel safe and countries where people feel safe, the results have been there. i think the pent-up demand has been masked in the united states because of the hybrid or day in

day deliveries and piracy, which carl asked you about i think that obscured the demand because people said hey, we can watch at home or rip it off on one of these pirate services but the studio said, this is an experiment i think there' and record numbers >> rich, quickly, let me end here on china. i'm curious. an important component of your business any concerns there given all of the actions the government's taking, for example, against video games and just trying to focus people in terms of not spending or not wasting time in certain ways any concern there in terms of the movies that you'll be showing on your screens there at all and the government's action against them potentially >> i mean, david, it would be naive to say, no, i have no concerns

clearly, it's a different environment than it's been however, we've been operating in china for over 20 years. there have been all kinds of challenges theft to i.p i think the government has a vested interest in people going to the movies. that is, stimulate the domestic economy, keep the malls full a lot of the exhibitors, state-owned companies. yes, there are concerns, but i think end of the day they'll be some bumps but it will be fine. >> rich, a lot happening in the space. always good to get your insight and intel. good seeing you. thank. >> appreciate it. coming up on "techcheck" today, live to the courthouse where former theranos ceo elizabeth holmes' trial set to begin today. dow's wn, doand more "squawk on the street" continues in a moment.

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real estate starting to lead the way higher one of the big movers in terms of utilities, what's happening with overall utilities spdr and stocks within them all higher on the day, a tailwind from risk aversion as well as a tick lower in long-term interest rates keep an eye on uliestiti stocks today. "squawk on the street" right back after this break. don't go anywhere. >> announcer: realtime exchange brought to you by -- incomparable design makes it beautiful. state of the art technology makes it brilliant. the lexus nx. experience the crossover in its most visionary form. experience amazing at your lexus dealer.

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seeing the company, last five years, in my company. strong in the market, of course. it's all around me and then i started myself, the last couple of years now and was like, how about we get together, get to know each other and who knows what comes out of it. >> that was roger federer with us back in 2019. then talking about what was a partnership with the sneaker brand, a zert-based company

going public $6 billion unfortunately federer not here for the u.s. open. neither is nadal or serena, but it would appear he is potentially in position to score here with potential ipo. i haven't worn them. i don't know if you have >> tried them on super, super comfortable i don't actually own a pair. everybody i do know, tennis players or not that own them, on brands, huge, huge fans, a huge following and speaks to the fact allbirds poised to go public and suspected to be a strong end to the ipo pipeline for 2021. renaissance capital out way note a couple days ago talking about the fact 2021 could reach an all-time high. most since 2000, ipos. add this to the list, if you will. >> well-known companies, suppose

to the hit by year's end talk often about spacs issuance slowed dramatically but enormous through the course of the year. >> and some of those companies, redwire. another space name on the opening bell going public through those deals as well. that does it for us on "squawk on the street. "techcheck" starts now. good wednesday morning welcome to "techcheck. i'm joe kernen with jon fortt and julia boorstin coming up on the show today, storytime. coinbase calls the s.e.c. sketchy receiving a wells notice over their lend program. plus paypal pays now more on their $2.7 billion in the buy now pay later space. and then california streamin'. appl