good morning stock futures slipping slightly. slip sliding after the dow and s&p fell for the third straight day. we will show you what's moving right now. including a big drop for gamestop under pressure after reporting a big loss than analysts expected. united airlines out with a strict vaccine policy for employees. telling those with religious exemptions they are put on unpaid leave it is thursday, september 9th, 2021 "squawk box" in times square begins right now. good morning welcome to "squawk box" here on

cnbc i'm becky quick along with joe kernen and andrew ross sorkin. you will see a little bit of pressure here. red arrows with the dow futures indicated down 75 points s&p 500 future down 11 nasdaq off 32. this comes after three days in a row of declines for the s&p and dow. the dow, in fact, down six of the last seven sessions. you are still talking high levels for the markets s&p and nasdaq less than 1% from the all-time highs with the declines, they have been moderate and modest you are still talking within distance of all-time highs the treasury markets right now 10-year is 1.327%. picking up from where we have been becky, we have the "squawk planner. the ecb decision at 7:45 eastern

time european central bank is expected to announce the trimming of the asset purchase it put in place. in the u.s., we have jobless claims at 8:30 a.m earnings, we will hear from affirm holdings and dave & buster's we will talk about earnings that crossed the tape last night. >> lululemon's ceo on. we can't just focus on the abc we need to delve in. >> a broader move. >> i thought -- i don't know, becky, yoga clothes. either one of us conducting this interview is a conflict. >> you talk about your lululemons more than i talk about mine i probably have more >> if caplan is in trouble for

opening up the fed spigot. you are invested. >> they are on my legs. >> skin in the game you mean >> yes >> a conflict. >> we have to give him a tough interview. >> okay. ukraine. the latest country ukraine and el salvador. who else do you need the latest to legalize and regulate bitcoin in the past, the authorities have treated cryptocurrency as a scam and often confiscated equipment without new grounds. the new legislation gives crypto owners protection against fraud. the ukraine law doesn't facilitate the use of crypto or put it on an equal footing with the national currency. it will open the cryptocurrency

markets for businesses and investors by next year by 2022. i can give you a list of countries that have currencies where -- shells would be better. of course they will say bitcoin is better. the currency is 800% inflation there are places where, you know, little beads >> you have seen the $10,000 bill or local currency >> zimbabwe was $100 billion you can get a soft drink nice sugary one. you can't get one here in new york after bloomberg. united airlines updating the vaccine policy workers with religious exe exemptions are put on temporary unpaid leave next month because of the rise of covid cases workers will be lalllowed to

return to work once testing resumes. united said if the request for religious exception is dedenied, they will have five weeks to get vaccinated or fired. >> fascinating this is the issue, becky not just what should the policy be, but how do you enforce the policy i know a number of executives and ceos want a policy in place, but don't know how they can enforce it you are starting to see a couple of examples of companies pur pursuing it. the fraud trial of elizabeth holmes started in san jose accusing her of being a liar and cheat. rober robert leach said out of time,

out the money. she made mistakes, but mistakes are not crimes and a failed business does not make a ceo a criminal >> what? >> yesterday's hearings lasted five hours holmes arrived with her husband and mother and others in the courtroom. three women with blonde hair who mimicked her signature look with the all-black look with a pbun. the trial expecting to last until december we talked with scott cohn said and said what is the defense >> the defense is she may have lied, but that doesn't make her a criminal nobody heard the idea of they were continuing to test patients blood and giving no diagnosis? >> it was described to us yesterday, becks, and i don't

have sympathy for the argument in the valley, unlike the real world, as the valley is a different place of people. people basically have a dream and vision and they're on the way to the vision and might make some mistakes along the way or shortcut it is fake until you make the thing. >> again, people who were counting on test results coming back with blood samples. >> i made my -- everyone knows where i stand. >> they were sending out -- before they reported out, they were sending it out to get the results knowing they were not getting what they expected they can say we have this proprietary technology and we cannot share it and we can't tell you about it. that is how they got by cleveland clinic and others.

the people there like her, i assume, had to know what was in the black box. it was absolutely empty. a failed business doesn't mean that there was criminality, but it is like necessary, but not sufficient enron and madoff happened to fail they all failed, but some of them were criminal enter pprises and they failed. this is not it just happened. >> fraud is a different standard. >> exactly than failure like i said, we don't want to cause a mistrial look at this on "squawk box. they had her guilty from the beginning. >> the prosecutors want to play with the idea of intent. mens rea she never had the intent >> she was ptsd from the d

domestic abuse. >> that is something else. >> are they throwing everything at it and see what sticks? >> and then defense lawyers and how much i love them everybody deserves a robust defense. the stuff they come up with with a straight face. they will look right at you and pass a polygraph telling you the ridiculous made up story that's what you want when you need one, you want a lawyer like that it is a weird profession >> i admire most of them >> i bet you do. i know i do, too. when you need one, you need one. they're an interesting breed >> none of us could be on the jury coming up on squawk, we will talk about gamestop. shares are falling after the kch re company reported a quarterly

loss bigger than expected. and the news maker of the morning. leon cooperman joins us at 8:00 a.m. eastern time. you don't want to miss it when squawk returns when we come back >> announcer: this cnbc program is sponsored by ibm. the world is going hybrid with ibm. and they want it all personalized. with ibm, you can do both. businesses like insurers can automate it processes across clouds. so agents can spend more time on customer needs. and whatever comes your way, you've got it covered. saving time and improving customer service, that's why so many businesses work, with ibm. don't like surprises? [ watch vibrates ] proactive notifications from fidelity keep you tuned in all day long. so when something happens that could affect your portfolio, you can act quickly. that's decision tech, only from fidelity.

news just breaking on united airlines phil lebeau joins us now with more you're up?

good >> reporter: i got the call from the bed sleeping 8k united dropped ahead of the presentation made today. united adjusting expectation for the third quarter saying it expects a pre-tax loss they are not giving an exact figure the street estimate is for a loss of 5 cents a share. the company says if trends continue as a deceleration in bookings as covid-19 has been resurging around the country, they now have anestimate of profit of 23 cents a share united, because of the deceleration of bookings is cutting capacity it will now be down 28 p%. that sis a drop of 2%. finally,revenue for the third

quarter is expected to be down 33%. take a look at shares of united. under pressure pre-market. dropping 8k ahead of the conference we will hear from all of the airline executives today expect to hear more. deceleration of bookings as a result, trimming q3 estimates if they haven't already announced it we will see pressure on q4 guys, back to you. >> we understand, don't we, phil with what is going on in our lives and plans we try to make put on hold. a lot of them. to some extent you feel it. all right. anecdotally. thanks, phil >> business travel is not showing up either. shares of lululemon soaring

beat the expectation of $1.19. revenue beat expectation and the company offered guidance for the quarter and year it is on track to surpass the 2023 revenue target. the company got a boost from strong demand from products and strength in ecommerce and productivity in stores there were supply chain bottlenecks which continue to be an issue lululemon is prioritizing fall styles for shipping. the company ceo will join us at 8:45 a.m. eastern time. and gamestop we have to talk about gamestop shares under pressure. drop coming although the video game retailers posted better than expected revenue for the quarter. the meme stock is not a stranger to swings. the previous quarterly release was followed by a 27% drop during one session

joining us right now is anthony, the managing director of luke capital. good morning to you. >> good morning. >> i don't know. i don't know i thought -- i don't know if i thought earnings would be better, but i thought we would hear somingsomething on the conc call jim cramer talked about it last night. i thought they would increase warehouse space. >> that earnings call was c shameful this is a company in the middle of the turn around and what do we get a couple of minutes of comments. no terms of results. no terms of the strategy going forward. they don't take any questions whatsoever it is shameful it was disrespectful to their shareholders i just -- it astounded me, quite

frankly. >> i don't know where to go after that i think the big question for those who are in it and those who are believers, is whether there is a case to be made this could work out in their favor. look, i like to think we are all rooting for gamestop i want all companies to succeed. the question at this point is i think one more than anything of valuation. >> the valuation is nonsensical. at some point, let's just call it what it is. the emperor has no clothes i know ryan cohen founded chewy and sold it for $1 billion at the end of the day, this is eddie lamb with sears. there is no strategy and no turns this business around this is nonsensical that the valuation is $15 billion

>> at this point, is there anything that they could tell you that would change your mind at all there is an interesting piece that effectively says this is a well funded start-up by the way, there are other well funded start-ups out there >> the difference with a start-up and gamestop is start-ups sales grow really fast and they lose money, but you can see visibility and making money. i see none of that with ga gamestop yes, sales were up because we are early in the video game console cycle. this is a razor blade in the razor blade business you make money on the software and more and more gamers are downloading software the razor blade sales will not be there to liken this to internet start-up is an insult to internet start-ups >> wow wow. okay fair value for gamestop right

now? trading at $$181 >> there is nothing to make me think it is worth more than that $15 billion valuation is the dumbest thing i heard. >> anthony, i will tell you, i don't know if you have a twitter handle because the hate is going to come. you and i have a similar view. i'm rooting for the company and like to see it work. i don't know how it's going to work for my money, i thought that ryan cohen thought he could take a $10 company and turn into a $40 company. at $1185, it created a complication for him i wonder what you tell folks on reddit right now probably watching us saying the suits are after us >> yeah, look, first up, i'm not

on twitter or instagram or anything >> god bless you >> i got death threats that is nothing new. sell the stock first and ask questions later. i know it is exciting to the moon and diamond hands that is not how stocks work. in the short-term, stocks are weighing machines and what i mean by that is stock prices have to reflect the fundamentals of the business. it hasn't happened for some time with gamestop. eventually it will >> eddie lampert of retail anthony, keep an eye out today stay safe as they say. we appreciate you joining us and being as candid as you have been we look forward to talking to

you again. >> thank you sounds good. anytime. >> you bet >> i know you. i know you don't want to make it you hope all companies succeed >> i do. >> tobacco companies >> less so. >> oil companies the nasty fossil fuel? sturm rugger >> you got me. you got me >> smith & wesson? spl >> what do you want mye to say >> i don't have ego in that game >> you found something coming up, much more i wasn't going get involved. anyone who is fearless this says it gamestop. >> he said insult to start-ups >> he said the suits would get

it of the he was casually dressed. we have the man who wrote the book on this story ben mezrich anti-social network is out this week he joins us at 7:45 a.m. eastern. what does his hair look like tom brady and gisele getting into crypto. we will have the details next. >> i think that will work. [music: “you're the best” by joe esposito] [music: “you're the best” by joe esposito] [triumphantly yells] [ding] don't get mad. get e*trade and take charge of your finances today.

it doesn't work. is there a tom brady and gisele

bu bundchen portfolio >> no. >> how did you not get this? brundchen. >> what? >> the mash up >> let me think about it my mind's not working. it is like the language. >> ig-pa atin-lay >> yes here is the advertisement for the couple for crypt >> i'm getting into crypto you in >> 360 degree markets with alts to defi?

but i still hate you >> understood. >> it features tom and gisele making calls to patriots fans and fireman ed to promote the crypto latform >> i'm buying whatever they're selling. >> i have seen brady in a couple of commercials subway commercials he is out there. >> he is willing to make fun of himself. i saw the whole thing yesterday. it was great >> 44 years old. my question is do you really give 8.5 points to the cowboys tonight? would you do that? >> i'm focused on the commercial. >> what about the over/under >> you worried about the betting line >> i don't have a lot of confidence which way to go >> that's why they have the betting line. >> 8.5 is a lot of points.

programming note >> there it is. >> on nbc. >> the mother ship >> catch the kickoff game at 8:00 p.m coverage start at 7:00 p.m >> you have a problem. some political news as we head to break. debate is brewing in washington over the future of fed chairman jay powell centrist democrat jon tester wants to nominate powell for another term he is worried about calls from progressive house democrats who want powell replaced by someone focused on pushing more liberal political priorities tester argues politicizing the central bank would hurt the economy.

"squawk box" will be right back. >> announcer: executive edge is sponsored by at&t business our people and network will help keep you connected let's take care of business. 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, like 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 get the best deals on every smartphone.

what happens when we welcome change? we can transform our workforce overnight out of convenience, or necessity. we can explore uncharted waters, and not only make new discoveries, but get there faster, with better outcomes. with app, cloud and anywhere workspace solutions, vmware helps companies navigate change-- meeting them where they are, and getting them where they want to be. faster. vmware. welcome change.

♪ ♪ it is hard to believe, but this weekend marks 20 years since the 9/11 terrorist attacks. before that whoday, manhattan wa playground for anything past happy hour the attacks on the trade center changed all that

we have contessa brewer with more >> reporter: it was nicknamed freedom tower. those attacks brought down the twin towers, but changed the economy of lower manhattan >> tore my stomach out i couldn't even -- i could hardly breathe i made over 3 million square feet at the world trade center >> reporter: ken loeb watched 20 years ago of the twin towers >> the amount of damage was unbelievable >> reporter: in an instant, immediate halt to the financial businesses that made up the economic life blood of lower manhattan. >> exodus and 15 million square feet of office space displaced and corporations scampering around the city and tri-state area to find facilities. >> reporter: a concrete jungle

for 400,000 workers turned into a ghost town into the void, stepped opportunists and dreamers. >> the motivation was really i'm not going to abandon the city. the city has life. it has possibility >> reporter: in 2002, marco moved to lower manhattan as the clean up at ground zero continued. bought historic building and bought a wine boutique >> i was just praying the residents would come they did come. >> reporter: by 2020, the number of apartments more than doubled. baby strollers wind past wall street grocery stores and schools $30 billion in public and private investment with architecture and transportation hubs and public spaces including the 9/11 memorial. while there are 25% fewer office workers now than 2001, there is

a wider blend of companies, including uber and spotify >> people wearing hoodies and sneakers not working from 9:00 to 5:00. a new segment of the economy it is diversified our economy. that is the goal for a long time >> reporter: it is hardly been a seamless evolution the great recession. superstorm sandy it took years to bounce back another mass exodus of workers because of the pandemic. there are questions here about how the economy rebounds after something like that. becky. >> contessa, just watching that, i worked downtown for eight years leading up to 9/11 it was devastating to see everything that happened there the area changed, but didn't happen quickly when you talk about all of these other changes, and challenges, it has come back from and what

is the situation there downtown has a very different feel it feels liveable and open in part because it has been rebuilt so many times recently >> reporter: i'll tell you one of the challenges for the area is rising seas and climate change and instances of severe weather. they still don't have the resiliency in place to protect this area from another big hurricane and storm surge like superstorm sandy that is something that needs to be addressed and addressed in a infrastructure way, not we can put up blocks along the sea port and keep the flooding out. then the issue of people living close to where they work that is why people moved downtown colleges are here. workplace is down here you can live where you work. if you don't have to work on wall street anymore, do you have to live here >> all good questions. contessa, thank you. in the next hour, we talk to

the tsa administrator over the changes in airport security over the last two decades. congress preparing to tackle the $3.5 trillion spending proposal we will talk to representatives from both sides of the aisle on the key committee focusing on taxes. and later, don't miss the thicontinuing interview with le cooperman. you can watch an us live anytime on the cnbc app. >> announcer: currency check is sponsored by interactive brokers. the professionals gateway to the world's markets.

in 2016, i was working at the amazon warehouse when my brother passed away. and a couple of years later, my mother passed away. after taking care of them, i knew that i really wanted to become a nurse. amazon helped me with training and tuition. today, i'm a medical assistant and i'm studying to become a registered nurse. in filipino: you'll always be in my heart. [crowd cheering] how's sanchez looking? with your qb's increased spin rate, any pass with a launch angle of at least 43 degrees puts sanchez in the endzone. you a data analyst or something? an investor in invesco qqq. a fund that gives you access to nasdaq-100 innovations like ai statistical analysis software. how am i gonna do?

become an agent of innovation with invesco qqq. ♪♪ on capitol hill today, the house ways and means committee will work on the $3.5 trillion spending bill focusing on the tax portion. joining us is the republican

from texas jody arrington and the congress member serving on the house ways and means committee. i'm not sure how this is a big topic to take on, congress people, is it not? i'll start with you, congresswoman moore. do you -- you see chuck schumer pushing ahead. the administration pushing ahead. in the background, we have people talking about joe manchin's take a pause editorial in "the wall street journal" and won't go above $1.5 trillion is this theater? what will be playing out do you have feelings about this? >> not really. we are doing our work in the house of representatives as you know, the committee on ways and means is the place where tax bills start. we are doing our work putting

together our budget reconciliation instructions and chuck schumer, god willing, will work out whatever details he has over in the senate this is our -- we are doing our work we're mindful that the senate has to do it, but we're focused on 218. >> congress member arrington, it was in "the wall street journal. it was interesting if manchin is at $1.5 trillion and other democrats at $3.5 trillion is not doable bernie sanders said $3.5 trillion there has already been major compromises to get to $3.5 trillion he made with himself. it was already $6 trillion he has come down to $3.5

trillion i don't know what you republicans are talking about. there have been compromises. >> surprise, surprise. the socialist who is the chairman -- self ascribed socialist thinks $3.5 trillion is a good number to take from the american taxpayers who are already struggling because of the pandemic and shutdowns we have 10 million job openings and too many people sidelined because they are getting paid by the government more than they made in the previous job the best anti-poverty program and strategy is the same create more jobs $3.5 trillion of taxes will take us the other way they will chase jobs back overseas and make us less competitive. most of us this is passed down in lower wages and higher costs

of goods and services as if we didn't already have inflationary crisis which is a tax on every american most of this is born by working class and middle class people. this is a long line of disasters. this will stick with our country a lot longer than the border disaster or the disaster and debacle in afghanistan i'm concerned with all due respect to my friend representative moors i'm concerned about the taxes and unionization of every work force in every state this is a turkey just like they filled the covid relief plan with progressive policies. across the board, joe, this is the biggest disaster we have seen yet from democrats. >> congress member moore, the

cover said cradle to grave expanding cradle to grave entitlements would you say that is a good thing and nothing to worry about? in terms of the expansion, is that a problem >> i don't know where to start unraveling all of the republican talking points just let me start here you are talking the same old trickle down politics that the republicans have no problem in the last tax cuts and jobs act adding $2 trillion to the deficit. only to create a situation with historic buy back of $1 trillion buy back in stocks meanwhile, it contributed a great deal to inequality and this story -- this is the same old story. we tried trickle down before

we tried it with the reagan tax cuts to the wealthiest we tried with both bush tax cuts we tried it with the tax cuts and jobs act what have we seen? workers wages stagnate or digress. any increase in wages between 1980 and 2005, all those tax cuts was .3% .3%. in the meantime, the top .1% of companies and wage earners saw their incomes quadruple. this kind of income inequality is hurting our economy people, my friend, you know, mr. arrington wouldagree 70% of the economy is consumption. people have to have money to spend. providing continuous tax cuts?

this dog don't hunt. just like the economists from berkeley saez said when the evidence contradicts your theory of trickle down, you have to go with the evidence. i would just leave it what james brown would say. give it up and turn it loose it's not working our tax package provides money to actual people the child tax credit providing $250 to $300 a month to the average person to the 90% of the work force that only earned .3% over 20 years when wages were stagnate .3%? to those people, we are giving $250 to $300 tax credit. direct taxes to them not to wealthy corporations. i'm talking about the efficiency

of using money our economic system has almost failed at time and again from the kind of income inequality that we continue to -- to -- to, you know, heat up over and over again. we have seen its failure time and again. >> there is a wide gap between you two. that's what i just figured out congresswoman moore and congress member arrington that's what makes it fun to watch washington, i guess, and troubling. thank you, both. we're out of time. i'd give you a chance to rebuttal >> i would love to rebut it. god bless everybody. >> he talks so long about afghan war and everything else. we didn't get a chance to talk about the tax bill

we'll build back better. >> i'll be back on the show to refute the fact check, my friend. >> i'll be happy to come back. >> a lot to unravel. thank you both >> thank you when we come back, cathie wood cutting her positions in chinese companies in her portfolio, but staying in those working to curry favor with beijing. we talk to jim mcgregor next on doing business in china. "squawk box" is coming right back uh carl, are there different planning options in here? options? plans we can build on our own, or with help from a financial consultant? like schwab does. uhhh... could we adjust our plan... ...yeah, like if we buy a new house? mmmm... and our son just started working. oh! do you offer a complimentary retirement plan for him? as in free? just like schwab. schwab! look forward to planning with schwab.

the personal loan from sofi helped me consolidate my credit card debt into one simple monthly payment. debt free! thanks to sofi. ♪♪ thanks to sofi. today, things can be pretty unexpected. but your customers, they still expect things to be simple. and they want it all personalized. with ibm, you can do both. businesses like insurers can automate it processes across clouds. so agents can spend more time on customer needs. and whatever comes your way, you've got it covered. saving time and improving customer service, that's why so many businesses work, with ibm. wondering what actually goes into your multivitamin? at new chapter,

its' innovation, organic ingredients, and fermentation. fermentation? yes. formulated to help you body really truly absorb the natural goodness. new chapter. wellness, well done.

er. welcome back shares of chinese games stocks plunge overnight after

regulators called them in for interviews and reminded them of game time limits for children. they reminded them they would could against any game that made children play more than three hours a week check out shares of chinese internet stocks. jd.com down 4.2% >> joining us now is james mcgregor chairman of greater china region and former chairman of american chamber of commerce in china what do you feel from these companies in light of all these crack downs? >> these are strange times in china. xi jinping is going for his third term next year in congress and setting the ground work for

that he's a micromanager getting control of everybody for everything companies are on the sidelines watching i think they are worried about anti-capitalist rhetoric they've been taking control of the party a long time and catching control of their own chinese companies. this is about raining in some companies that had strong monopolies, who were abusing citizen's private information, data and also paying workers very little money and exploiting a lot of these delivery people and things like that part of it, you can understand the strategic direction, when the party gets excited, they overuse everything they'll use chain saws instead of a chizle and try to fix

things >> what does it mean for investors? there was the public spat for black rock offering stocks for consumers. saying pouring billions of dollars into china right now is a tragic mistake >> that man is chinese money not going into china for what black rock is doing for a mutual fund the point is well taken. xi jinping's crack down is to put them in place and remind them that parties control everything the only people hurt are the foreign investors and billionaires, not chinese people i don't think he cares too much. they first started overseas listings, the way they convinced him to let it happen is that we'll get money from foreign owners and they won't control or own anything

they always think investors will come back. china will be a growth market for a long time. actually, they always do come back >> the common prosperity theme doesn't necessarily clash with what blackrock is offering because they are offering to average chinese investors? >> i think they are trying to clean up their market with real wedge management that's why letting in the foreign financial companies after a long spell of not letting them in because they need to clean up their own market and work out their wealth management the chinese companies are not good at that whether it is for rich people or average citizens, they are looking for foreign companies to help them do that. it is a political motive they know wall street is very powerful in washington if all these have a bit of market share in china that they like, they want them back pushing against any anti-china

policies there is two kinds of foreign companies. those that china needs and those that need china. you have to remember where you fit in a this ee wags. >> thank you for breaking it down with us >> okay. we come back, carlos watson and marc lasry will join us. marc's reason for remaining bullish despite the recent crack down discussion becky was just happening. stick around leon cooperman rick rieder and lululemon ceo with us. two big hours ahead after this

♪ ♪ we are the next. the next generation of visionaries. rule breakers. game changers. and world beaters. we were built to perform on the biggest stages. but we certainly aren't here to do what's been done before. and neither are we. at palo alto networks, we are ready to secure our digital future. as companies innovate to transform, we innovate to outpace cyberthreats. so you can embrace technology with confidence and make the next day safer than the one before.

we've got next.

market alert two major airlines phil lebeau joins us with the details. the original meme stock, gamestop with quarterly results. taking leaders inside the story with his new book. he'll bring us the first look. hedge fund manager and carlos watson are teaming up again. the second hour of "squawk box" begins right now.

good morning welcome to "squawk box" it is already thursday >> the three-day weekend should be monday, monday. that gives you like a bonus. >> take a look at u.s. equity futures. only one day left of the week. >> it feels like hump day today. >> it feels like a wednesday dow off 86 points. i don't know if that feels like a wednesday. nasdaq off about 51 points we were talking about things taking place was that you or me the microphone >> it wasn't any of us

we are going to talk to a couple of people, it could have been them dom chu tracking stocks this morning. let's begin with phil la bow following southwest and united both airlines out with cautious comments >> not a surprise, we heard from southwest that they had seen a celebration of bookings. today, the company giving us guidance for the third quarter cutting the q 3 guidance also cutting expectations for september showing you how much the virus has impacted the booking. they were expecting things to be down 15 to 20% the revenue for september will be down 25 to 30% compared to q 3 of 2019.

united dropping an 8 k this morning giving guide enthat shows the impact of covid-19 they expect a pretax loss. the estimate on the street was for a loss of 5 cents a share. unclear how much this is going to different from what analysts are expecting. it expected q 3 revenue to be down compared to q 3 of 2019 you take a look at the airline index. we'll look at other airline execs today in a conference where we'll get up dated guidance from almost all of the airlines expect more of the same this morning. >> we'll pick it up there to retail we have some moves to the upside of macy's up about 1.25%

and cowen thiz the digital control will move things up. cisco systems is down 1% after analysts at morgan stanley have downgraded from equal weight to overweight saying the performance from last year has overrun its stock so moved to ee call to a neutral rating these chinese internet stocks specifically online gaming stocks they are all down. these are the u.s. listed shares reports out of china says the government there is reiterating that especially the online game makers, that the content they put out needs to be controlled and regulated, and the time

needs to be regulated, specifically minors as well. that's having a ripple effect. looking at the most popular ticker searches. number one spot actually goes, well coin base, gamestop, lulu, apple were within that top the 10-year note was still number one 10-year note was coin base, gamestop and lulu on the heel of earnings results there the rest of that list is on my twitter feed at the domino >> we are going to have the lulu lemon ceo joining us at 8:45 >> are both joe and andrew wearing the pants? >> what day is it today? does it waend a y?

then yes the 10-year note, that's what people are watching. do you remember when green span said about watching the 10-year ticker >> i remember that >> that 1.3% catches your attention. >> up 15 basis points. >> it is there >> percentage wise like anything else >> exactly >> dom, great to see you we'll check with you later >>wh w> ene come back, the head of the transportation security association will join us live. stay tuned you are watching "squawk box." this is cnbc are we still exclusive? absolutely. and that's exactly why you should join.

another day, another chance. are we still exclusive? absolutely. make the most of it with the network that can deliver gig spds to the most businesses. and get the advanced cybersecurity solutions you need with comcast business securityedge. ask how to get comcast business securityedge to help protect all your connected devices. and get started with a great offer on fast and reliable internet and voice for just $64.99 a month. plus, ask how to get a prepaid card up to $500.

call or go online today to learn more. comcast business. powering possibilities. welcome back this morning. this weekend marking 20 years since 9/11 terrorists attacked the twin towers. as we reflect on that day, we talk about the changes made since then that have made us safer. among them the tsa >> bringing in our guest from the tsa in washington. administrator, thank you for joining us 20 years after 9/11, the question is how much better are we prepared to thwart a repeat

of what we saw 20 years ago? >> we are significantly better prepared for an attack like we saw on 9/11. there was a lot of things we have done. you'll remember the technology improvements specifically back to 2002 compared to what it looks like in 2021 our system is much m more risk-based. we focus on the current threat and where we think the threat is trending to stay ahead of it >> administer, we talked to a former air marshal who said they don't think we are fully prepared they don't think the tsa tests the system enough. how do you convince the public

that's not true, that you are making the tests that are necessary? >> that's not true they test every single day we have a blind test program that helps us to test. when i highlight the system, with this agency focusing on things every single day. talking about what we prevented from getting on board aircraft since the beginning of this calendar year, we stopped well over 25,000 live weapons and 3,000 in classes of firearms and stun guns. we have a bunch of items we

prohibit like knives and throwing stars and things of that nature. we've prevented more than 3,000 of those i look at what we detect and what our test results show i'm confident in our system that it is secure >> i know you hear from passengers from time to time and maybe when you are at the airport when you are flying. i know the complaint everybody says is lines are too long, it is a hassle. not what i expected when flying. is there anything that can change over the next few years that can say to the public we understand you think tsa and security is a hassle we are working on perfecting that >> we are looking at new

technology i'm looking for solutions that improve our ability to detect current threats and what we an tis piet future threats to be. every system improves our ability to detect a threat there is always a forward benefit. giving you a quick example with identity verification and boarding pass verification we are largely in the process now as a passenger, you don't need to take a driver's license or passport and show it to anybody, you insert it in the system itself and we certify the authenticity of those and if you have a boarding pass we have all of that electronically if you have a cory on bag, you put it down through the x ray system our technology is a cat scan

technology that allows us to see a 360 degree view. what that means is that you don't have to take as many things out of the bag as you would have in the past that increases speed and convenience. that limits the touch and takes stuff you own from putting it in a bin. and our body screening, we are looking at new technologies. and reducing the false alarm rate we'll have to do fewer pat downs in the future. so all of those things are geared towards improving security and the passenger experience >> i notice you are wearing a

mask today from where we sit, it feels like there is so much rage in the air and a lot of that coming from the mask mandate >> the mask mandate is critical and we just extended the requirement into mid-january i'm very glad we kept it in place even through the summer with what we know now with respect to the delta variant >> you are right, there have been a lot of in flight checks from what we've known in the past i consider every incident to be signature can't but some are more significant than others a lot of those involve a verb al alter case of either i'm not lappy that i have to wear a mask

or something else. when you look at the ones generally getting to some is kind of assault or incident that might impede our screening or conduct of cab inn crew's work, the numbers are pretty stark you look at the summer 4th of july through this past weekend, labor day weekend there were 94 incidents in check points and 12 of those involved assaults and in flight, 68 incidents. of those, 35 or a little more than half resulted in the aircraft having to divert in flight to handle the issue so it is significant problem we are working hard to do everything we can to bring those numbers down the next holiday is thanksgiving that can have significant impact

on the level of inflight and check point services >> administrator for transportation security, thank you for joining us i send it back to you, i think the interesting point of those stats is that we have seen a slight moderation in the number of incidents but when you talk with people on the airlines, they still consider it way too high considering everything going on and how many people they are shuttling around the country every day. >> i don't know what happened, phil i blame social media for everything we need to get back to -- you can figure it out, what is acceptable and what's not. can't we >> what's the problem? can't we all just get along? coming up, coin base wants to

launch a new type of interest earning account but the sec is saying not too fast. joining us with the full story on the other hand. stay tuned to "squawk box" on cnbc >> announcer: time for today's aflac ivtria question, which two nfl teams have appeared in four super bowl but never won [aflac!] you know, aflac can help keep unexpected healthcare costs from ruining someone's finances. check out this coverage... you still got it coach, you still got it! i never lost it! yeah! [aflac!] you see that coverage? with that wingspan i see why you got more rings than a cell phone. there's always room for one more. yeah! get help with expenses health insurance doesn't cover at aflac.com

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. (vo) while you may not be closing on a business deal while taking your mother and daughter on a once-in-a-lifetime adventure — your life is just as unique. your raymond james financial advisor gets to know you, your dreams, and the way you care for those you love.

so you can live your life. that's life well planned.

now the answer to today's aflac trivia question. which two nfl teams have appeared in four super bowls and never won? the answer, the buffalo bills and minnesota vikings. >> it is the year, people say for the bills. coin base wants to launch an interest earning account called coin base lead that would earn eight times the national average for high-yield savings accounts. the sec has said no without

explaining why company executives are publicly calling. the company went public. >> it is ugly. to call out the sec. coin base is the standard barer for maintaining crypto it has a $54 billion cap a reputation of being more careful and consistent it appears launching an interest baring account, coin base asked the sec first. they said no but didn't give a detailed explanation, the se krerch has threatened to sue

if there were a precedent here everybody could understand, that would be one thing but we are no clearer on the rules of the road when it is okay to offer an interest baring account and when it is not offering the kind of detail the company needs. it has to be done, joe >> the sec did answer coin base when they asked whether it would be okay to launch. would we be having the same explanation if the answer was yes? >> this is coin base not liking the answer it got and looking for an angel to get its way. coin base's chief legal officer said the lend program doesn't qualify as a security. he also says the sec, that is securities is looking at the

program through two supreme court cases howie and reece. it isn't difficult to understand the logic. a 30-year-old update that says we realize you've gotten renewed innovation but isn't easy to get around the test. people give coin base lend their money and they use it for loan-backing base a lot like junk bonds just because you don't like the answer doesn't mean they didn't give you one >> these are questions they need to get worked out. crypto thought they had a friend but now i'm not sure okay will this put pressure on the se krerch to do something more? we need some clarity

>> ripple is already mad maybe what coin base on the preview of what's coming somebody is not going to be happy. >> not anytime soon. that's for sure. what happens is maybe when some of the risk comes out of the market overall and there isn't demand, that's the question i have >> 52 to 42 on bitcoin >> thanks john we'll see. we have a big show

look at this microsoft ceo, linkedin ceo, logitech >> and very big news and author out with a new book on gamestop. more on the second quarter result and the conference call one analyst called shameful.

if you're 55 and up, t- mobile has plans built just for you. whether you need a single line or lines for family members, you'll get great value on america's most reliable 5g network. like 2 lines of unlimited for just $27.50 a line. only at t-mobile. new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates,

whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today.

a big 90 minutes still to come, investor marc lasry and carlos watson teaming up ben mezrich takes readers inside the gamestop stock craze

hedge fund manager lee cooperman will join us luck rieder will react and the lulemon ceo will tell us about what is coming up the next quarter. we finally found the perfect house. yeah, we couldn't believe the deal we got. just lucky i guess. (sfx: airplane flying overhead) we're a little closer to the airport than we thought... (sfx: airplane grounded outside the house) at least geico makes bundling our home and car insurance easy. saving us so much money. -hi. -how was your flight? -good. -good. morning, ted. for bundling made easy, go to geico.com. i think you're going to like it here. umm, why is everyone... throwing things at me?

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

we want to bring in billionaire hedge fund manager andavenue manager group manage and ceo. you have a bit of news to bring us i want to get into all sorts of other issues, i thould let you take it away with the news given that you run the company but the market is about to become one of your boss's. >> good morning. i think when i last saw you, we were talking about the fact that ozzie turned profitable last year enormous growth with tv shows, podcasts and more. i'm glad to tell you marc lasry

has joined us. my hope is with marc coming aboard, it will be good news we saw what he did with the bucks. >> marc, what is the plan here, when you think about the future of ozy reese witherspoon just did a big deal with the black stone group. what is the long-term play here? >> great to see you. ozy media is a unique company. literally revenue kept growing every year part of that it seems to be this huge interest. it is a unique company carlos is doing a phenomenal

job. you want to end up supporting people who you think are unique and different. carlos is that, i think ozy is that that's why i've gotten more involved you'll be hearing more and more about ozy over the next couple of years >> carlos, in terms of the way the media business is going, you have your news letter business, your own show, developing more shows. i mentioned reese witherspoon's show long term, do you think there is a consolidation play or do you think you'll be an independent company? >> i would love it if we became one of the lead three or four companies in the world you mention reese witherspoon. there is interest in the media

space. part of that is the generational shift. not only the move to millennials but to gen z and the way they consume. not only giving them podcast and streaming video but we realize the curious want to be able to enjoy contact in a number of different ways they want premium content and flexibility and i think we are doing that well. >> can i talk about the markets with you i think there's a lot of concern and question about the reopen trade. we are hearing this covid news with delta and airlines. where are we in your mind? >> these things are just going

to take a little longer. we are excited a few months ago when everything was over and we got back to normal everything is reopened and a little bit nervous the economy is doing really well we thought we were about to take off. i think we are a little bit on pause or just going slow i'm still excited about what is going on with the economy. >> in terms of what is going on, are you thinking about the classic reopen trade or tech stocks you have seen a little bit of the air come out of the tech stocks in the past couple of weeks? >> really doing tech stocks, for us, our business has grown in lending. what we are seeing is a ton of private lending.

because the things have slowed down we are finding that our business is growing people do need that capital. they are still paying for that and we are doing quite a bit of business where we are lending somewhere between 8 to 15% i would say for us, our business is going really well for us, part of that is taking a little longer. >> is that europe or asia. talking the regulatory questions and the trading here >> that's been great for us. doing a ton of business in asia and because of what has happened with the chinese government and what you are finding where markets were open quite a bit. it is just harder today. for us, we've been able at least

in our lending business to charge 15 to 20% u.s. is lower than that because there is a lot more liquidity here. >> on the china front, when do you think we'll get clarity. government has been clear about what they want because of that, it has made companies nervous. it is not aseasy as it was it will be pretty hard next year as people keep on trying to understand is it short term or long term? i think they've been clear from our contacts in china. seen anything changing on the regulatory front >> would you own chinese equities right now

you are making money off the stred of the loan. most of us are not in acquisition. would i go into equities yes, i would >> let me bring it back to carlos and the media business. we've seen a huge amount of consolidation among the buyers of the content you might be telling. have you seen the margin yet >> i've seen the opposite. i've seen more streamers whether paramount, apple, discovery looking to bid for our content and videos has allowed prices to

go up. something similar is happening in the podcast space on the dig call side, a number of advertisers have had their best years companies that have been sluggish in terms of growth, it seems the on line buying has been better. that has reflected in terms of advertising content. so far, i'm grateful for the growth we've seen and the market has guided us. we have now scored several long-term partnerships which i think will help with margins >> you have a big show on youtube, which is worth watching i've been a beneficiary of being a guest on your program. youtube owned by google. do you think tech programs are too big and have too much

control. you've had a lot of success leveraging those platforms and others say these platforms are terrible for competition and the economy? >> i'm obviously someone who lives and invests in silicon valley and built a couple of companies in silicon valley, i'm a big believer do i think some of these companies have their faults and i think the biden administration will do a number of things about that, i think they will. look att tic toc you and i wouldn't have been talking about that company three years ago. every time you think there is too much strength, there is new interest you were talking about coin

base you hear them going into content creation there's a lot of people who will enter the space and have something to say >> always great to see you both. appreciate it. >> am cog up, shares of reddit, trader favorite gamestop dropping this morning following quarterly results and ben mezrich is taking readers inside the story with his new book, anti-social. and next, we head to break, what luke capital told us >> one point, we have to come to the realization the emperor doesn't have new clothes

various signings to the moon and that's not how stocks work

(vo) this is a place for ambition. a forge of progress. a unicorn in training. a corner to build a legacy. a vision for tomorrow. a fresh start. a blank canvas. a second act. a renewed company culture. a temple for ideas. and a place to make your mark. loopnet. the most popular place to find a space.

it's moving day. and while her friends are doing the heavy lifting, jess is busy moving her xfinity internet and tv services. it only takes about a minute. wait, a minute? but what have you been doing for the last two hours? ...delegating? oh, good one. move your xfinity services without breaking a sweat. xfinity makes moving easy. go online to transfer your services in about a minute. get started today. . breaking news. >> announcing, it would do a moderately lower base of

purchases. that's a trillion in the allocated cut. doing it a billion a month in that turn from 94, 95 a taper, a reduction in the level that will keep going in the fed with its own asset purchase under the pep program joe. that implies a federally

declining show and what else it might taper. what they are going to do is lower it to this level it appears it would maintain at that level >> so lowering it? they are lowering it they are reducing it >> tapering it i have seen it happen. >> i have no expertise >> i thought when you taper, you keep going down. >> that's what i consider tapering to be they may eventually taper from 80 to 60 it may be the first thing. the indication here in the

market a 80 to 70 to 60. those amounts are guetimats. it would be a lower greater interest here. >> always fun, joe the amazing thing, we 0 go okay we are buying, they are buying >> let me look, it looks like on the 10-year, it is minus 33. it has a little bit of change. it looks like this is really well expected. all right. thanks gamestop shares are tumbling despite narrowing losses and

rising sales after the bell. joining us to talk about it is ben mezrich, and his new book, the anti-social network. it is great to see you you look at this and watch what you've been into when did this grab your fancy? >> i was watching it happen like everyone else. it was all being run by these kids sitting on their couches. i dove in that morning, it was like january 26, 28. i saw the movie and figured out the drama. it was an incredible story of

david versus goliath and his cousin and brother one of those stories of someone taking on wall street and trying to bring down the house. i wanted to write it >> you always look for the drama and get people interested in things that might not be interesting in otherwise who are the villains here and who are the heroes from your perspective? >> the original hero is this kid in his basement from like a working class area keith gill he was fumbling around looking for something, he fell in love with a stock gamestop. at the time, they weren't doing well he started posting about it on wall street best, which is this reddit group which had grown to millions of people

the villains in the story are wall street. the guys in a suit and tie that was shorting a company hoping it would go down to zero. the idea that wall street has been screwing the little person for a long time. here is a chance to strike back. then robinhood in the middle of all of this and you have to decide whether they are a villain or not in the story. >> everybody was chewing on the idea ythat you couldn't be a short seller whispering ideas about a stock to watch them come down we are quite a bit past that at this point look at the stock trading at $185 we had an analyst who used to cover the company.

i didn't know if you heard his comment. he saids it nonsense call that company is now valued at billions of dollars. he said this stock makes sense to him at $10, $185. >> what i'm trying to say in this book and what the reality is, the fundamental and the value are untethered now the price of the stock aren't related to the company you see this in crypto with something like doge. i do think gamestop has the chance to pivot and that is something that takes advantage of the world we are living in. there are a mass of people who love gamestop and spend time in those stores, if they could switch to a digital type of business, they could survive

but what are they worth? you've got to read my book i think they are worth what the mob believes they are work i think a lot of people are surprised the stock has stayed this high this long. people have to understand this is a new world >> you've been around a while too. usually when the fundamentals separate, at some point, there is a reversion you think this is a new reality or another story, just the general feel nfts, crypto is there a reversion of the meme >> there are ups and downs i don't think there is a reverse. i think this is a new normal there area massive stop. the sentiment trumps

fundamentals they will go up and up and wall street has to take that into account. >> you find characters and stories and latch on to them and more and more layer it in. i'm thinking about the twins who showed up in the accidental billionaires and you came back with the crypto book about them. what do you think the next level is for gamestop? who are the characters that really captured you. i'm thinking maybe robinhood by what you said? >> robinhood is fascinating. like a unicorn in silicon valley that stepped into banking. this portal, it is fun the idea of like gamifying wall

street confetti pops up when you make your first trade they make their money off of people and the payment for order flow robinhood is a big character i love them and i think they are incredible but it is going to change everything once every high school kid, college kid and up is using it, which i think is inevitable because it is the easy and fun way to trade. >> what do you think about elon and mark cuban >> elon, he hates short sellers. when he sees this, he tweets game stopped it spirals everything. he's kind of the ultimate troll on the internet but beloved by the reddit mob

he's not the guy in the suit and tie. mark cuban loved the fact this was happening. he's kind of a man of the people, even though he's also a billionaire. you saw this division between the people who supported the wall street bank and people who wanted to see retail traders win for once, which they did for a short time >> thank you for joining us today. the book is called the anti-social network. it is out now. thank you for joining us when we come back, our market news maker of the rng. lee cooperman will join us live. this is cnbc and strengthen client confidence in you. before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully.

0. good morning, dow futures. this hour, we talk so much more with billionaire investment banker leon cooperman. >> and ecb to scale back on asset purchases.

two high-profile stocks in opposite directions. gamestop falling and lululemon is soaring consumers can't seem to get enough of the trend. joining us trait off earnings as the final hour of "squawk box" begins right now good morning welcome back u.s. equity futures are flat, totally. we have talked about october and usually october can bell really scarey usually it is because of september. bottoms are made in october after the break in september

we talked tuesday a little bit the minute we got out of august. it looked like maybe i used a lot up there. fuzzy penguins, crypto and all these things three straight days down >> three days down for the s&p and the dow the s&p down half a

percent. >> things don't go down until they do. >> andrew likes september. >> going back to school. it is a beautiful time of year for the weather. >> you know what's coming. i prefer spring. actually i prefer winter because it is going to be spring treesry yield, we'll take a quick look there if it goes to 1.5, 1.6, 1.7% maybe then we start talking about some kind of break in the market you heard steve. even saying you are not going to

buy $100 million a month how do we get a decent price discovery. >> good question, you probably don't. probably don't the way things are. >> we have someone who can answer these things. legendary investor lee cooperman is chairman and ceo. i think the last time i talked to you was in july you said you were fully invested bear, are you still feeling that way? >> absolutely. generally big declines are coming out of recessions we have a hostile fed.

they've been you too easy. the labor is not going down. that part is the commodity course you look at the world. it is upside down. you line up 100 economists, the response will be centered around 2% real. we are growing at three or four times potential and holding near zero the second observation is in the stimulus in excess of wages lost our gig government president is trying to get another $2 trillion approved, which i don't think he will. we are pulling demand forward. this has created an artificial situation. some things are overpriced

they are crazy by and large, most s in a matter of value i went back to the 1972 and excesses of 2000 you are talking totally different structure. you had a 10-year government, there is something overvalued. long term, we've been putting demand forward i have a lot of things that concern me what would make you change your tune >> looking at fed speak, inflation, market action gold and bitcoin dollar exchange and interest rates overall. a lot of change signal a lot of structure is broken

to go down so quickly, heads are going to spin. there are no stabilizing forces now. it is all run by machines. those are watching 65% of business course of labor. they are not going down unless you go into recession. they are not going into recession anytime soon that's kind of my story. finding a lot of things to do in its market, which is encouraging. my biggest position is contrary. i look at the natural gas situation and storage levels are way below historical norms the price has built up quite a

bit. enormous amounts of free cash flow buying the stock up in canada, marcelous and devon transfer and those companies where they are making big dividends. we have a big exposure in energy and a lot of big stocks in terms of book value. signal buying back stock and merging with apollo seven times earnings then the stand byes, google, amazon, microsoft, facebook, pfizer deserves to be selling 20 to 30 times earnings

my favorite idea is ironic it is bonds. it is really amazing the historic bond nominal gdp on a trend basis probably 4%. this year, probably 6 to 8%. rick rieder can talk to bonds. we are talking the negative interest rate. a bunch of acts and additions running around the world this negative interest rate stuff is ridiculous. investing back 10 years and bu buying today i don't get it saying my favorite idea is a bond but not an investment grade bond 15.5% trade in 97. very attractive.

very complicated so i won't take too much time to talk about it i must say i have a weary eye on the market i don't like monetary policy, the fiscal, i don't like the attack of the wealthy. not that i'm wealthy i'm giving all of my money away, so i don't care. i'm a capitalist at heart. it is disturbing to me >> we all heard the last time the entirement for assets -- we always go back to it and what they had to do we all know about that it hasn't happened in so long. we've had trouble with inflation. it is hard to envision that is

right around the bend. we may very well, when you do that much spengd, the spend needs to be with you to allow you to do that to keep rates low. the fed has gotten more political to allow that type of spending that scares me >> i want to be a party pooper to say bad things can happen with this. when will it happen? it sounds like chicken little. >> maybe when we least expect it, it will happen >> 3% to the s&p and major industry it has been the best performance of this year who knows? >> is it a problem if we keep funding with the fed we have a very divided government the odds are they'll get their package through, which would

mean we maybe have less need for tax increases. the end of the day, they are running enormous fiscal deficit and they are going to buy it the dollar exchange rate and inflation. this idea, it is a pipe dream. 65% of a business course is labor. you know anybody working for less pay in this environment still willing to stay long you are still dancing. you've got 1 foot out the door you are ready to go with the trend. all of this stuff we are doing >> that's my view. the market would be self

directing. the faang maerkt is not cheap but not expensive. very cheap relative to interest rates. the robinhood maerkt, i don't play in at all it is crazy. i hope they know what they are doing. i doubt it hard to be about citibank with the value. i hope i'm not overstag my welcome. that would be the big decline. that market ended. you need a recession that's going to require probably

higher inflation the dollar exchange rate and the fed has to reduce or eliminate its level of support i think the fed has overstated its position >> they thought the fed and other places around the globe would be accommodated over the next decade and governments would spend more money as a result and puts more into what we are talking about do you think they would do that? ifs that the case, anything that would cut it short, you think that would be a recession? >> the fed is creating the environment to allow this to go forward. you had $20 trillion of national debt there is a theory they can't allow interest rates to rise the government can't afford it

i don't buy into that theory >> the government has to show a lot of bonds who snuker is going to buy a bond today i respect rick a lot 40% to that 1.3% of the government, under 80 basis points inflation is running 5 or 6% i'd rather take that place in the common stock my capital is going to be confiscated. >> at the same time, the government needs interest rates to stay low if it is going to payoff the debt. >> rolling low gathers no loss that's their innocentive i don't know whether the environment will allow them do that it loses control i see a lot of negatives i had a painter come to my

house. he told me he's planning on retiring he has lifetime savings of $400,000, what should he do with his money. >> today, go to a financial planner, you can't earn any money in your savings and you can't make any money to retire this has got to change one day it will change when fs least expected right now, simple conditions are in favor for the market. as night follows day, things will change. i think this whole bit koin stuff. i have a great respect for barry. he he said bitcoin was a con job. i said, if you don't under

bitcoin, you are old i'm 78 not in the interest of the u.s. government to further a substitute for the u.s. dollar if you are nervous, gold to me would be a better place. i'm a paper guy, a perennial optimist i'm very concerned about a lot of thing its unofficial at of bonds, attacking of wealthy people. the fact that we've pulled demand forward the fed has really elevated unemployment relative to inflation as the key goal. that's why you are seeing their policies and the administration. biden is a big government guy. we can't afford big government

now. we have to have more balanced policy take away all the money from the wealthy and still not cover the fiscal problems of the country >> you mentioned you are overweight energy. what didyou see then do you see the short ajz now, do you see that lasting >> definitely natural gas. these guys are coining money at that level the energy cut shall they read all of these things and how the world should go to elect rick and oil demand days are numbered they are returning money in the dividend excess return and tract and capital and then that return destroys capacity.

we are going through a period now where supply and demand is tightening up for energy you could be buying these companies at 3 or 4 times cash flow the stock repurchase debt repayments. i look at paramount and paying down debt at a rapid rate. the same for turm lean and others lower priced today than it was a year ago approaching five that's where i go. >> thank you for being with us today. we appreciate your time. >> my pleasure stay safe and healthy. coming up, when we return, blackrock creator will weigh in and speak to some of the issues

leon was just talking about. the ecb decision a deep dive into lulu lemon as that company stock soars stay tuned for all of this it on cnbc 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,

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. abm. making spaces healthier for you.

in 2016, i was working at the amazon warehouse when my brother passed away. and a couple of years later, my mother passed away. after taking care of them, i knew that i really wanted to become a nurse. amazon helped me with training and tuition. today, i'm a medical assistant and i'm studying to become a registered nurse. in filipino: you'll always be in my heart. retirement income is complicated. as your broker, i've solved it. that's great, carl. but we need something better. that's easily adjustable has no penalties or advisory fee. and we can monitor to see that we're on track.

like schwab intelligent income. schwab! introducing schwab intelligent income. a simple, modern way to pay yourself from your portfolio. oh, that's cool... i mean, we don't have that. schwab. a modern approach to wealth management.

finally here the nfl season kicks off tonight who do you like this year? i'm not making any predictions we have a huge new rams stadium. verizon and nfl. also naming verizon the official tech partner the ultrawide band in stadiums that kick off today in stadiums and at home and more for august meanted reality. take a look. >> it is all about innovation

and experience better. so speed and quality of the data to come out of our stadium is a critical component it not only makes our experience in the stadium better but at home and on the go and all of those analytics are used by our teams. >> a platform for innovation in the stadium and at home. it is a platform for coaches more media deals to work with and how they are managing covid

risks and getting fans back as well we keep hearing and it can't continue how about drone racing do you know anything about that? >> i once saw drone racing i took my kids a couple of years ago. the cool thing, it is going to outfit stadiums to do more things like e fit sports other seasons, with a really connected stadium, you can connect video games and everybody can play thanks to this verizon partnership >> you don't just need to play your betting games at home, you

can play from the stadium. >> so you got a new stadium in l.a. exciting. >> very high-tech stadium out here >> i get confused. the california teams keep moving around thank you. >> can you name them all, becky. the raiders are in las vegas now. >> we've got the rams in l.a., now my home team >> can't keep track of them. >> when we come back, breaking economic data. new jobless numbers are next stay tuned to "squawk box. this is cnbc

need your prescription refilled? capsule pharmacy can fill and hand deliver your medications

- the same day - for free. go to capsule.com to get started. we handle your insurance, coordinate with your doctor, and text you when your medication is ready. all you have to do is schedule delivery. we bring your medication directly from our pharmacy, straight to your doorstep. get your prescriptions filled and delivered today - for free. go to capsule.com and get started in 15 seconds.

>> a new post covid-19 low

drop of 35,000 all of you viewers would remember 340 was the number. that's upgraded. now continuing claims weak in the rearview mirror. it ticks up a bit. not down a bit from 2.8 million to 2.783 million from a revised 2.74 million this would have ticked a bit higher than our low buts that changed in the revision. we look at the initial claim, what jumps out to me is trying to handicap jobs and unemployment and those looking

to work. that is continuing to tick down. they can match and that old jok from yesterday the 6.5 to 8 million people still unemployed due to covid these numbers go a long wayment i'm telling you, a very difficult situation to address back to you. when we come back, a lot more we'll talk about the latest in the european central bank and weighing in. stake around for another big interview with the ceo of lululemon. stay tuned

competition beat us again. how? they have a better finance system than we do. i feel like they might have a better finance system than we do. workday. how do they make better decisions faster? workday. it's got to be something workday. i think i got something. work... hey, rob, you're on mute. hello! hey, rob, there he is. workday. the finance, hr and planning system for a changing world.

♪♪ energy is everywhere... even in a little seedling. which, when turned into fuel, can help power a plane. at chevron's el segundo refinery, we're looking to turn plant-based oil into renewable gasoline, jet and diesel fuels. our planet offers countless sources of energy. but it's only human to find the ones that could power a better future. welcome back scaling back some of its asset

level purchases. >> moderately lower. going back to a conversation i had with joe in the last hour, about an hour ago. saying that the language used by the ecb does risk the possibility of fuelling the idea that the ecb is tapering they did not announce a taper policy that would be due to moderately lower purchases most think that probably means $70 billion euro a month, perhaps 60 the idea is that they are reducing it and staying there for now and would use more tools, if necessary. quick headlines. they just started. she said the economy has largely reopened but the delta variant could delay reopening. we expect the economy to rise to

prepandemic levels by year end and pressures are building slowly they are not that concerned about recent pressure. talking about the idea of more vaccination and consumer spending more while they reduce the monthly spening. >> talking more about all of this facing the challenges and the monthly federal reserve. the head of the firm's global allocation team. we'll talk about george in a bit but let's talk about what the ecb is doing and what jay powell is thinking? >> i think the ecb is dg the right thing. they are moderating these back take that number down and you

are talking about immense numbers. recognizing where the system can pull back. bank of england and canada time has come. the system is stuffed with liquidity. what the ecb is doing is pulling back there is something very important christine lagarde is referring to they are still far away from inflation targets. that easing will stay high for a long time. can you pull back a bit? >> throw in delta. covid and delta. you are starting to see what airlines are staying about what it may mean to the economy this fall, does it change the equation at all about what is going on in jay powell's mind?

>> it is a great question. i think there are two things impacting the economy. there is no doubt. the travel sector, leisure sector, restaurants. are people going to be a bit more cautious going forward? that clearly is creating some moderation of the economy. second part is the supply side of the equation. corporate earnings, there's an input. there is a people input problem. supply chains. semiconductor issues some var nant, the supply factors. thinking about what it has done in 35 years i've been doing this it mod you lates demand.

the amount of stimulus today is immense. their house is in great shape from a price point of view companies are flush with cash. the demand is strong the supply side and covid. should the fed be tarping, absolutely >> interest rates will stay low a long time. does it need to stay at 1.35%? that's not the right price the economy is growing at sixish percent this year. >> i wanted to show you that comment and get your take from his comment. >> my favorite idea, i think bonds are totally miss priced.

we talk about big negative interest rates this negative interest rate stuff is ridiculous. the idea of buying 10-year german bonds and invest back in 10 years from today, i don't get it at all. >> you get it? >> a lot to unpack there lee is a smart guy i totally agree that interest rates don't need to stay here and it is quality assets because of the qe, you are creating a crawling out of assets relative to the rate of inflation. i think we could pull back on this liquidity i think it is overdone parts of the credit market is secure bonds make sense but the real rates. the front end of the yield curve where the fed is largely

operating. there is no collateral the demand for income is greater than anything anybody has seen in our generation. if the fed pulls back,insuranc companies, pension funds japan are all big buyers look at what the ecb did you mod rate down and rally. we should let them move back a little bit the real rate is priced wrong relative to what the positions are. >> you had been a proponent of crypto, i think, probably more so than many others. where do you see that now talking about what el salvador did this week but it speaks to all of the issues you are dealing with here. what are the real rates and the value of money >> on crypto, i'm not sure it is

a really great hedge when an asset is 10 or 15% a day, it is really hard is it an alternative currency, i do think there are a small bit of people who will enter that fray over time we have a very small provision i can see bitcoin like it has done go up significantly but i think it is volatile i don't think it is a core asset class. it has a bit more of a speculative tool i think there is value in that >> before i let you go, you are a big wheel inside black rock. a feud between the black rock

feud and china dilemma, going into china now doing it in a meaningful way offering product to the chinese customer george soros says this is terrible for the united states, terrible for the united states, the west and national security what do you say? >> there's some smart people weighing in on all sides of this debate you take china, you put it in perspective. today, less than 5% of the indices. it is a huge economy we have a lot of investments in spain. it is $1.25 trillion economy china is a large economy it could be the largest economy in 10 or 15 years.

having some exposure makes some sense. building a diversified balanced portfolio. we think it makes sense. >> what do you tell the critics who say this is actually a moral question if you are going to be doing business in china, you need to use whatever power you have, which is nothing because nobody has power in china, to change human rights >> at the end of the day, we are trying to put together portfolio that makes sense for clients will you influence some of those things, probably not in a portfolio consideration, there is a lot of consideration. >> blackrock, you are representing everything.

did you know terrick, he says it is total not something >> i didn't know him but i'll say and said this on the show. people can look into our portfolio. i can't tell you how many hours a day we go through esg and sustainability and where the opportunity is going and the potential deal around infrastructure and where esg is going, the amount spent on infrastructure, education, health care. people look at our portfolios. there is no doubt a position to move and that's what we are doing. the proof is what we are doing in the portfolio >> a dangerous placebo that

harms the public in the public's interest >> thank you sounds like the longer conversation thanks the way things look right now, a lot of stocks on the move i know you've been involved. let's start with gamestop. that stock under pressure. you listened to the conference call and where not impressed >> no, no. that guest with the conference call was probably the best i've seen company that completely converted to the point that they are more powerful post covid i get to tell you, that conference call was not a conference call.

becky, these guys have gotten away with something i find mistifying they have no plan. the only think they talk about was having warehouses. it was all in faith versus rh, an unbelievable story versus lulu these guys have incredible stories that have come out in pandemic under fire. i just think gamestop offers nothing right now. it is not -- you are not talking meme stock versus non-meme stock. >> you are talking the company that lays it out for you >> adam aaron had a better number gamestop just continues to be on lulu delivered 2023 numbers

basically. rh also delivered 2023 numbers i know the reddit people love it i'm not trying to protect reddit people from being reddit peoplee any faith in it is just mystifying to me. >> show me the money. >> hey, jim, thank you. >> show me the money. >> we will see you -- >> tell kevin i said hi. that was amazing we'll talk to him in just a minute, and we will see you in just a few minutes too as jim mentioned, lululemon's teo is going to join us live afr that blowout quarter stay tuned, you're watching "squawk box," and this is cnbc

perhaps the stock of the morning, 13% gain, lululemon, shares soaring after the company beat analysts second quarter expectations appears lululemon's wardrobe works for at home employees and those rung to the office joining us now is calvin mcdonald, ceo of lululemon the results were above expectations i tried to figure out what was better than analysts were

expecting. plus, i think the sales goals you set for a couple of years from now you've already hit. i said, okay, was it online or back to stores so it was both so i said was it people going back to work or was it people staying at home? it was both. was it men or women? it's doubling. it's across the board. was anything just beyond the pale better than expected, calvin, or it's just all cylinders firing >> good morning, joe it really is all cylinders firing the power of three growth initiative that we laid out, and we've been innovating towards for the past three years i've said all along that the brand really is early innings, and i think this is a quarter that just represents that, when you look across our product, across gender, categories, when you look at our channels and our markets. all are growing very healthy so the balanced growth across every

initiative that we are deploying and interacting with our guests i think is just reinforcing the fact that we're leading that growth we're excited to arrive early on our five-year growth plan and excited about the future >> is it workout clothes, calvin, or are people wearing workout clothes going back to the office since it seems to be a little more casual or wearing comfortable clothes at home, or all of the above >> again, i always hate pointing to all the above, there are two things we had great momentum and strength in the business pre the pres pandemic, during, the pandemic and we were well-positioned post the pandemic the pandemic, what has been accelerated is the interest in being fit. the interest in well being and functional apparel, and that is the sweet spot of the brand. that is the sweet spot of lululemon across all of our

markets. i think it is all the above. people are definitely using the gear for what it's designed for, which is performance as well they are appreciating the functional wear of the gear and how they can use that both at home, office or when they are being active >> performance at work, andrew the two of us, we perform at work with the -- >> when you feel your best, you perform your best. >> yeah, we do, in these pants because we're free and easy, and it makes us better how about margin -- >> they're comfortable, that's for sure. >> they are. >> calvin, raw material costs, labor costs, you're raising what you pay your employees to 15 to 17 at least an hour. is that something to be concerned with in terms of just margin compression in the future or no, you can overcome that with just better sales >> well, no, we were excited to be able to accelerate our plans to raise our minimum wage to 15

to $17 in addition to that, our store employees as well as those that are gecm have an opportunity to earn up to $6 in our bonus so we didn't cut that in order to fund the minimum wage so it really is a wonderful opportunity. we're looking to hire 8,000 new employees heading into the holiday, so it is a proactive move to maintain the momentum in our stores, invest in our teams and people, and there are a lot of initiatives happening around the innovation and our raw materials working with our manufacturing partners so the guidance we gave factors in, the impact of air freight right now, which is impacting margin, our positioning on our minimum wage, but also just the overall success of the brand where we don't use discount or price as a lever we truly lean in on innovation of the product our markdown penetrations are low. they are traditionally at a lower level.

our product isn't very fashion driven it is fashionable, but a lot o core sales and product that allows us to lean in on inventory, which plays to a lot of the advantages and allows us to give a mix across the business. >> i know supply chain issues. everybody else in the world has got some problems, and is that an issue >> well, yeah, definitely i didn't say no supply chain issues like many, we are dealing with the disruptions that are happening through the pandemic as you know, last year, we were one of few that didn't cut an order with our manufacturing partners we stood by them we honored our commitments, and we worked through the inventory, again, for all the reasons i mentioned. i think those strong relationships coupled with an incredible team that has been doing dual sourcing. about a third of our goods come from vietnam, which is currently the region that's most impacted from our perspective it has impacted the flow of

goods. we've been leaning in on air freight. we have guided to the numbers with a phased reopening in september, which is what the government has signaled to with dual sourcing able to lean in on air freight, we had a little bit of balance. but there's definitely disruption in the flow of goods that we are seeing, and sales in the quarter probably could have been even stronger if we weren't having to face someof those disruptions. >> wondering, so you can just do what you're doing with what you have and your penetration isn't to the point where you need to worry about flowing growth from that are there other things -- you must constantly be looking at innovation or cobranding what do you -- how do you take it to the next level, or do you even need to do that we don't have a lot of time left, calvin. >> yeah, no, absolutely. one, the exciting element of our growth story is it's rooted in

what we do well today. the activities we've identified, the product categories, men's and women. we have launched a number of -- >> we have to go -- >> signaled footwear we have a lot of innovation to talk about. >> it's always a longer conversation. >> always a longer conversation, but we got five seconds, great to have you on we want to have you back, would love it, becky, andrew, make sure you join us tomorrow. "squawk on the street" is next >> good thursday morning, welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber at the new york stock exchange. got another soft premarket as we threaten to extend the s&p's three-day losing streak. today it's the airlines joining the chorus of companies warning on q3. our road map begins with those covid headwinds. delta, american, united, jetblue